November 2, 2010 / 10:05 PM / 7 years ago

UPDATE 2-EOG has quarterly loss, cuts output forecast

* Lowers 2010 output forecast

* EPS in-line with Wall Street

* Shares down 4 pct after-hours

* 2011 output seen up 10 percent

* Planning gas asset sales for 2010, 2011 (Recasts, updates share price)

HOUSTON, Nov 2 (Reuters) - EOG Resources Inc EOG.N reported a quarterly loss compared with a year-ago profit and the U.S. exploration company lowered its production outlook for the year, citing weak natural gas prices.

Due to weak cash flows and delays in securing hydraulic fracturing equipment, EOG said it now expects 2010 oil and gas production growth of 9 percent, down from its prior expectation for an increase of 13 percent.

The company also plans to sell natural gas assets in 2011 to help fund the purchase of eases in fields with oil and liquids-rich gas, even though it will raise debt levels.

Huge supplies of natural gas have weighed on current natural gas prices, keeping it under $4 per million British thermal units, while crude prices have tracked above $80 per barrel.

The depressed gas prices have prompted exploration companies like EOG and others to shift exploration spending to areas that produce crude oil or natural gas that is high in liquids content. Liquids stripped from natural gas such as butane can be sold at a premium to dry gas.

EOG said its third-quarter loss was $70.9 million, or 28 cents per share, compared with a profit of $4.2 million or 2 cents. The loss was due in part to an after-tax charge of $208 related to Canadian natural gas assets.

In addition to its sales planed for next year, EOG has marketed some of its North American natural gas properties, and expects to sell between $600 million and $1 billion. The bulk of these deals are seen closing in the current quarter.

Excluding one-time items, EOG had a profit of 18 cents a share, matching the Wall Street consensus estimate of 18 cents per share, according to Thomson Reuters I/B/E/S.

Next year EOG sees production growth of 10 percent. For 2012, oil and gas output is seen rising 12 percent.

Shares of EOG fell to $94 after the close of regular trading. The stock closed at $97.74 on the New York Stock Exchange. (Reporting by Anna Driver in Houston; Editing by Bernard Orr)

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