EOG Resources Inc. (EOG - Analyst Report) reported quarterly adjusted earnings of 79 cents per share that missed the Zacks Consensus Estimate of 99 cents and were 21% lower than the year-ago adjusted earnings of $1.00.

Total revenue in the quarter increased 23.9% year over year to $4,645.5 million and also surpassed the Zacks Consensus Estimate of $3,994.0 million.

Full-year adjusted earnings came in at $4.95 per share, up from the year-earlier earnings of $4.11. The quarterly figure, however, came below the Zacks Consensus Estimate of $5.20.

Total revenue surged 24.5% to $18,035.3 million in 2014 from the prior-year level of $14,487.1 million. The reported figure was also above the Zacks Consensus Estimate of $17,326.0 million.

Operational Performance

During the quarter, EOG’s total volume expanded 14.7% from the year-earlier level to 56.1 million barrels of oil equivalent (MMBoe), or 609.6 thousand barrels of oil equivalent per day (MBoe/d). Full-year 2014 total production was 217.1MMBoe or 594.7MBoe/d, representing 16.6% annualized growth.

Crude oil and condensate production in the quarter totaled 307.7 thousand barrels per day (MBbl/d), up approximately 26% from the year-ago level. Full-year crude oil and condensate production climbed 31.1% year over year.

Natural gas liquids (NGL) volumes increased 24% from the year-ago quarter to 83.6MBbl/d. On the other hand, natural gas volumes shrunk to 1,310 million cubic feet per day (MMcf/d) from the year-earlier level of 1,321MMcf/d.

Average price realization for crude oil and condensates decreased approximately 24.7% year over year to $72.74 per barrel. Quarterly NGL prices fell 33% to $23.53 per barrel from $35.13 a year ago. Natural gas was sold at $3.38 per thousand cubic feet (Mcf), reflecting a deterioration of 0.3% year over year.

Liquidity Position

At the end of the fourth quarter, EOG had cash and cash equivalents of $2,087.2 million and long-term debt of $5,903.4 million, representing a debt-to-capitalization ratio of 25%.

During the quarter, the company generated approximately $1,898.9 million in discretionary cash flow, compared with $1,853.7 million in the year-ago quarter.

Guidance

EOG’s first-quarter 2015 total production is expected between 568.3MBoe/d and 597.9MBoe/d, with 75.0–83.0MBbls/d of NGL and 1,234–1,300MMcf/d of gas. For full-year 2015, EOG expects total volume between 539.9MBoe/dand 606.7MBoe/d, with NGL in the 68.0–88.0MBbl/d range and natural gas in the 1,207–1,283MMcf/d band.

For the upcoming quarter as well as full year, the company expects crude oil and condensate volumes in the range of 287.6–298.2 MBbls/d and 270.7–304.9 MBbls/d, respectively.

The company expects its total capital expenditure budget between $4.9 billion and $5.1 billion for 2015, down 40% compared with that in 2014.

Ranks.

EOG currently carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the same sector include InterOil Corporation (IOC - Snapshot Report), Golar Energy Partners LP (GMLP - Snapshot Report) and Hallador Energy Company (HNRG - Snapshot Report). All these stocks sport a Zacks Rank #1 (Strong Buy).