(Reuters) -U.S. shale oil producer EOG Resources said oilfield costs could increase by 10% next year, on top of a 7% increase in 2022, as inflation continues to snarl the oilfield.
EOG, which this week announced it had extended operations into Ohio, will maintain low single-digit oil production growth next year. Including gas and liquids, its output will rise at a low double-digit percentage rate, executives told investors on Friday.
It will run 28 to 30 drilling rigs next year, up to a 3-rig increase, and eight to ten hydraulic fracturing fleets, up about one or two from 2022.
The company anticipates selling some 250,000 barrels per day of oil at a Brent-linked price during the fourth quarter. The ability to sell natural gas and crude at export-based pricing added some $700 million of revenue uplift compared with domestic sells, President Billy Helms said on Friday.
Shares of EOG were up about 6% to $146.52 in morning trading on Friday. Oil prices were up about 4% to $91.79 a barrel.
EOG also said it had begun construction on a 36-inch pipeline which will move natural gas out of its Dorado field in south Texas to points near Corpus Christi, Texas.
(Reporting by Liz Hampton in Denver; Editing by Chizu Nomiyama)