Houston-based EOG Resources said Wednesday that is expects flat output growth in 2015 after the company’s fourth quarter results missed analysts expectations.
The company cut its 2015 capital expenditure budget down to $5 billion, a 40 percent drop from last year.
EOG also said it plans to complete 45 percent fewer wells in 2015.
The budget and drilling cuts are expected to keep production roughly flat year over year.
EOG, one of the fastest growing shale producers in the United States, had seen oil production rise by almost 50 percent annually over the last five years.
“EOG’s primary goal for 2015 is to position the company to resume long-term growth once crude oil prices recover. The company is not interested in accelerating crude oil production in a low-price environment,” EOG said.
The company’s fourth quarter net income dropped to $444.6 million, or 81 cents per share, down from $580 million during the same period in 2013.
Profit excluding one-time items came in at 79 cents per share, missing analysts target of $1 per share.
“EOG is viewed as the premier company in shale development, and if they’re not going to grow, it is a very important signal to the market,” Stifel Nicolaus & Co. analyst Michael Scialla told Bloomberg.