EOG Resources to launch carbon capture project by late 2022

EOG Resources

EOG Resources, a top US shale producer, announced this Friday it aims to launch a carbon capture and utilization project in late 2022 to reduce greenhouse gas emissions from its oil and gas production.

Firstly, the company has set a target of reaching net-zero by 2040. It is, in fact, dedicating 2 to 3% of its spending budget to Environmental, Social, and Governance issues. However, it has also remarked that it won’t change its business focus; would limit the CCUS project to its output, reducing the so-called Scope 1 and 2 emissions strictly.

Moreover, the carbon capture project would operate in an EOG-operated area with a concentrated stream of emissions directed to a new injection well for storage. A company’s spokesperson told Reuters the company does not have any partners on the project.

In addition, the news comes as the company is reporting strong 3Q financial results. It also announced an increased regular dividend. As a result, the company’s shares were up about 4.9% to $95.37 in mid-day trading.

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EOG Resources posts strong 3Q financial results

The company had indeed beat Wall Street earnings estimates and took steps to boost returns to shareholders. About the matter, Ezra Yacob, Chief Executive Officer, said. “For the second time this year, we’ve increased our dividend rate. This quarter’s 82 percent raise brings our indicated annual rate to $3.00 per share, doubling the dividend compared to last year.”

Furthermore, the company posted an adjusted net income of $1.3 billion, or $2.16 per share; generated $1.4 billion of free cash flow; capital expenditures near the low end of guidance range driven by sustainable cost reductions, as well as increased production of 449,500 Bopd.

The executive also remarked. “Our financial and operational results, our world-class assets, as well as our continued progress on exploration are a testament to the strength of EOG’s underlying business.”

Finally, he said. “We are well-positioned to be one of the lowest cost and lowest emissions producers and generate superior cash returns, free cash flow growth, and long-term shareholder value.”

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