If you can't see anything WRONG HERE... you need to check into the closest clinic and get an MRI.
for someone who supposedly writes investing reports you seem to have a woefully poor understanding of oil and gas finances, focussing on a single number without bothering to try to understand what is going on. A simple visit to the look at the filed finances of EOM tells a different story than you portray...one that has little to do with doom and gloom, just a product of the current business environment in oil and gas.
First off their oil and gas production in the US is actually increasing.
2nd qtr oil US production was 662 Kbd versus 600 Kbpd in first qtr and 543 Kbpd in same time period 2018
2nd qtr gas US production was 2803 MMcfd versus 2712 MMcfd in first qtr and 2591 Mmcfd in same time period 2018
EOM explains why revenues were down even though production was up:
Revenues for US oil upstream sector were down $431 MM from $868 MM a year ago with
higher production being offset by lower liquids prices and higher growth-related expenses
Revenues for US downstream were down $149 MM from $1,014 MM a year ago due to higher downtime/maintenance and lower margins
Chemicals division were down $155 MM from $956 MM due to lower margins, higher downtime/maintenance and lower volumes
with regards to dividend payments companies such as EOM which are not recognized as growth E&P but dividend generators, the companies look at the long term view of dividend payments. The plan is that in most years free cash flow (after all reinvestment) can cover dividend payments with a large margin but when years happen when free cash flow is down as it did in the first half of 2019 companies such as EOM will borrow to pay the dividend given they believe it is a temporary issue and do not want to lower dividend payments as it will have a negative impact on share price.
Year on year for the same time period the story is:
On a consolidated basis first-half income before income taxes was $8921 MM versus $13752 MM a year previously with $613 MM additional exploration expenses. Dividend payments were $7220 MM versus $6793 MM ($1.69 per share vs $1.59 per share) with outstanding share after dilution remaining the same. It is easy to see why EOM would want to borrow to pay some of the dividend burden as it allows them to keep working capital high enough to complete their annual CAPEX program.
So production was increasing across the board but lower revenues due to lower commodity prices, lower refining and chemical margins resulted in lower net income. If you calculate the dividend payout ratio for first half 2019 vs first half 2018 it has increased which means the company is comfortable with it's plan, shareholders are doing well and if/when commodity prices recover significantly the company is in a good place. Looking at quarterly reports for oil and gas companies is very misleading as their work plans often involve higher expenditures early on and higher net revenues later on. Five-year analysis of their finacials is usually more instructive.
Should EOM shareholders be worried? In 2016 first-half earnings per share were $0.84 versus first half 2019 earnings per share of $1.28. EOM did not go out of business in 2016 and by first-half 2018 earnings had risen to $2.01/share. If there is a prolonged period of low oil and gas prices EOM has the option to lower dividend payout. EOM is in this for the long haul and are accumulating acreage and production in the US shale basins with a view to the future. That ends up costing a lot early on but will result in higher revenues in the future especially if you believe in Peak Oil (higher prices will be associated with a scarce commodity).