Earnings call transcript Q4 2022

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Operator

Good day, everyone, and welcome to EOG Resources Fourth Quarter Full Year 2022 Earnings Results Conference Call.

As a reminder, the call is being recorded.

At this time, for opening remarks and introductions, I would like to turn the call to the Chief Financial Officer of EOG Resources, Mr. Tim Driggers. Please go ahead, sir.

Tim Driggers

for thanks and morning, joining us. Good call conference includes forward-looking statements. This earnings cause Factors have differ the SEC actual materially can been and filings. from in statements to forward-looking results that EOG's our those outlined release in

conference Definitions reconciliation measures. can found schedules non-GAAP website. measures and on GAAP call EOG's also these This certain be financial contains for

reporting not of guidelines. the reserves and potential the include may estimated with reserve Some accordance resource estimates necessarily potential call SEC's in on reserve this conference calculated estimated

call Ken Participating Ezra Jeff Chairman Exploration the David Production; are on this and VP, and Yacob, Marketing; and Production; Streit, and morning President Lance Investor Helms, Chief and VP, Terveen, Leitzell, Exploration CEO; Boedeker, Billy EVP, Operating Senior Officer; EVP, Relations.

Here's Ezra.

Ezra Yacob

EOG's outstanding which cash assets everyone. generated $X.X record shareholders of of Tim. a and $X.X of earned We of $X.X Good results free cash XXXX. on adjusted billion growing delivered flow capital return employed billion, funded billion. to record record record XX% morning, high-return return portfolio income in net Thanks, of

to of strengthened dividends, balance free regular nearly of sheets return We special reducing paid debt a million. four industry, commitment free net out of best beating XX% XX% by what $XXX of minimum was XX% and already our dividend cash flow to we rate cash flow, increased shareholders. the paying And our annual one in the

collaboratively inflationary multi-basin by goes declaring by Outshining in special our the We continue environment. challenging additional our year made were to deliver teams cash and an results entrepreneurial to teams our achievements this on our of Credit working working innovative priorities share financial across $X free a portfolio. dividend operating per yesterday. flow

increases were to the persistent decentralized XX% Production year. guidance during year deliver offset provided limit the We the cost within flexibility operational costs set just inflationary per and structure X%. Together, exceeded to pressures performance. to unit the at of well our operating leveraged start we volumes, CapEx exceptional by that

Basin. the Toronto play, and uncovered Southern including Texas several River South Powder Ohio Our exploration prospects will per emerging expanded Utica pricing to XXXX JKM-linked premium progressed a estimated currently XXX,XXX combo, new optionality in which MMBtu day, to and per exploration for Northern our teams the LNG We've We provide the plays, XXX,XXX take day. Powder River advanced two Basin. agreement, effect MMBtu

XXXX indicate initiated XXX,XXX Last exposure emissions day current GHG was new methane year, an net iSense. revenue we than reduced and our leak our million our MMBtu deployment $XXX results system And the LNG of methane expanded from that uplift intensity more targets. to EOG. per called our we achieving percentage, Preliminary detection continuous

organizational Led unique Delaware in by results and the performance our our XXXX operating Eagle asset place structure and to support of portfolio tremendous in Basin our it. and performance are in financial reflection plays, a Ford the

Seven teams America basins. one team North plays international nine in and across operates XX

year. empowers structure execute maximize produce after us real decentralized make each the This operating enables value. decisions our Our differentiates and to team outstanding results level to time in consistently and EOG asset strategy at year to

portfolio each high-return provides investment numerous assets. disciplined opportunities of on focused and across multi-basin Our investment remain our we

at oil of In the after-tax price year-over-year, asset allows margins addition direct at we each rate XX% a lowering of generated to asset. strategy, in premium must gas that generate and flat minimum the a each the life a which improve for pace to our by cost wells well $XX return $X.XX the of well, expanding and invest natural

full cycle lower-cost commodity also positions operating lower not the these the expanding margins broad generate just reserves, the market. than of the only competitive to It's price and investing cycle. resource which but delivering more of returns It at means with developing resources, investment top the for means the cost value Disciplined of life EOG through the strategically to cycle.

ahead play ever in than shareholders significant to XXXX, value deliver the better role for EOG and our position a energy. a Looking to long-term in is future of

Our lower cash intensity, emissions ability after the high executed and to the raise dividend balance the to returned returns, best is while in significant the deliver what consistently differentiated to sheet our believe regular business, earn disciplined shareholders, in maintaining growth, due reinvest all is industry strategy year we our year.

review to position. our Tim financial here's Now,

Tim Driggers

the our financial business When premium is Ezra. premium XXXX, established cost base record has Company Since operating the With declined the XXXX, Thanks, dramatic. cost price in the XX% oil similar we cost been by last economic our earned has basis of under had ROCE. and back rate structure, premium Also, in a XX% strategy, at The cycle. prior XX%. cash reset as our DD&A to the XX% to XXXX, our cost the returns prices our XXXX. year, and performance goal on ROCE bottom establishing increased of to our lower strategy we earn impact has to of and in

also balance a a further industry. as in We We reduced year advantage last balance strong sheet by view competitive have $XXX to debt sheet. the million net cyclical strengthen a

a leverage the balance the net and debt energy market and EBITDA current liquidity, ranks among and strongest Our industry of of XXth S&P cap. in top near in percentage cash XXX is terms to measured the percentile as the sheet of as

that billion bond to intend with $X.XX off maturing hand. in a pay March on and cash have We

generate positioned Our XXXX plan another is of returns. year strong to

sheet, dividend flow oil free $XX of attractive X% with a of a our gave volumes share. declare At We BOE outlook, about year total billion by stock Henry an is what and confidence the approaching the special for expect yield basis X% $X.XXX current price on grow dividend Hub, the financial production to X%. by nearly generate and along This us our XX%. on per top regular per produce $X.XX start strong $X share and ROCE balance to we to at WTI of to cash expect $X.X

of quarter in dividend a single gas a special year, reminder, The our prices. plan the commitment the in constructive outlook confidence to and on isolation. a our free XX% oil full our flow reflects As not minimum and considers of return cash

amount of continue flow. to our through cash XX% with once free an exceeding year commitment or will cash year evaluate eye We of we on, minimum as of the go full cash again, return meeting the return

Here's Billy to operations. discuss

Billy Helms

Thanks, delivered challenging Tim. employees dedication would as last our like commitment of I execution and accomplishments to each and employees for results. first their a thank the steadfast of XXXX remain they outstanding and was our year. year,

characterized activity offset through efficiency and labor this industry. result across We management to inflation levels and across of tighter to The witnessed we capital inflation cost increasing able portfolio Last to accompanied a most market a much prices, well of year just were can be supplies. higher of limit the services, heightened as year X%. by where commodity increases gains for our was

above the capital For only beginning while expenditures billion, full X% of oil guidance, $X.X year, production above original midpoint the were year. the set were was at guidance the midpoint the of

the Our to operating most plays, teams is core Company throughout This offset evident innovation. activities continued development our leveraged inflation. efficiencies experimentation which in help to sufficient and working support sustain

play, treated per the fleet by day by completion of XX%. expanded our In Eagle the increased of Basin, and per Ford XX%. Delaware sand completions increase by feet to technique Zipper we lateral feet day team completed lateral per XX% the day amount use per Super our In pump

portfolio limit then to performance cost learnings These in operations improve Our share to and across continually opportunity are learnings striving well teams our increases. plays. deployed decentralized emerging our are

drilling In motor For River improved performance. by promise advancements, XX% time by instance, bid in Powder the decreased drilling technical reduced with they drilling Southern the XXXX. team Through to and Dorado drive in play, play, Texas and to the our continue Mowry Basin, gas drilling improvements team XX%. time operations operational South

year the Basin well completion is performance reservoirs. realizing much ultimate Beyond year as an last was and is as XX% certain and yielding tested This in in cost recovery. new reductions, in positive in Delaware implemented wells uplift a XX design estimated target new design improvements last

We're great towards also goals. long-term our making progress ESG

XX.X% emissions have our results GHG we gas We of our approximately gas preliminary Basin indicate gross in and continuous And XXXX. now technology. of produced. rate by exceeded wellhead iSense, Delaware monitoring covered Our XX% percentages methane methane that the production lowered intensity capture

billion oil total growth. X% production XXXX Now a turning $X to to program the plan. growth X% deliver and capital volume forecast We

We expect basis each grow through to a year. total the Boe on quarter volumes

show several Dorado in of and quarter gas last wells First gas year. more be following well the points. growth versus were late timing four will mix oil in can The completed summarized due quarter that to of in the plan fourth the

in to frac and The relatively efficient, last activity core Eagle stellar fourth Ford programs, Delaware play Basin opportunities longer-term continued production rig to fleet development it a base maintain with First, a and Eagle will the have where be current flow. the of to high of Eagle high-margin existing specifically improvements cash year. decade access the quarter of After is Ford, over become the has our and the decade we a in and favorable for consistent highly outlook markets. drilling generate the infrastructure returns Ford, with operational

plan and XX infrastructure an Powder year's results the additional the installation River Basin, well In last off builds with Mowry positive completions.

in few wells delineate additional We we our drill continue expect our Basins. Ohio a few to and emerging as Utica in Bakken a position wells to play complete acreage in and DJ the

reductions. that wells continuous plan our drives creates develop for well additional XX economies allow of activity and versus level year. program a about cost scale achieve that in increase This last results Dorado, moderate activity, in a an is In innovation and performance improved to to completing

to quarter, about drilling delay. is rig Trinidad, In a now six-month third a the which in is arrive scheduled

by or So, we The estimates. international cubic additional for fleet. in increase day frac day two is versus increased to per year activity about volumes EOG rigs per XX plays. earlier emerging our count the rig expected XX,XXX one decreased Boes average million feet and our Overall,

costs increase. of cost XX% last have well day expect rigs rates efficiencies drilling we sight that in just for and line additional to we on are Year-over-year increases well drivers will as to year. Second, inflation of frac the fleets as the tubular pressure main limit versus

consistent part a strategy, and agreements to our our line we stagger As contracting base services of secure of secure execution.

in drive year, locked needed our are level thus we additional frac offset to term which of of about XX% some XX% years. performance rigs to maintaining providers. have and covered inflation. XX% similar this our the year to consistent cost, Approximately providing fleets expect improvements services, of eliminate previous for under we our For find is opportunities a to well this opportunity and potentially an drilling with base additional downtime, multiple agreements of By

Texas. to from that comprises Aqua new our XX-inch to Third, program In XX% infrastructure projects for a closer this to on year funding and of facilities includes Dolce infrastructure year, to pipeline budget. last expect construction we Christi, other XX% the Dorado, the And near CapEx additional gas sales point number late capital field XXXX XX%. Typically, be we Corpus commenced the investment.

This from ensure direct other pipeline takeaway, price LNG export areas, XXXX markets center, will long-term in help come reach corridor. chain our help and along cost. undertaking around smaller market pipeline operating like to the long-term the wellhead a expanded lower exposures We're due online the value capture the fully support Gulf also broaden the projects unit capacity Coast interstate to the infrastructure to entire Utica to

plan capital -- vision next Fourth, being oil and steps producers represents the includes of we emissions towards lowest our natural among the gas. of that the plan

unit begun enhance environmentally leadership healthy operating will also continue CCS returns our and to and while providing emissions. first Our lower we to long-life offer These prudent operations. opportunities cost projects project explore has reductions in position in injection

of EOG growth, I and on further the improving and that am improving opportunity about through long will remains our brings our XXXX for organic lower the the future the focused excited the for high exploration, Company. in improve base running the disciplined our footprint through resource employees investing to projects basis returns generating term, it Company. cost environmental business

provide update. Now here's reserves review and to Ken year-end an inventory

Ken Boedeker

Billy. Thanks,

replacement reserve XXX% commodity cost per excluding was development price revisions proved equivalent, finding oil due for of barrel and changes. just XXXX Our to $X.XX of

and was totals and Our equivalent. of proved X.X billion reserve base now reserves oil in a of barrels achieved XX% equivalent represents organically. increase oil This million over year-over-year increased barrels by XXX

also our to X% development compared reduced In previous year. the by XXXX, finding we costs and

In fact, years, we costs over the have XX%. reduced past finding development by nearly five and

improvement DD&A continue decline. continuous why shift permanent driven of by innovation, and corporate on are to combined culture costs efficiencies Our premium drilling, to our rate with our finding focused

focus We long-term of maximizing on continue acreage. to the our value

developed have zone, we facilities continued of generally and low returns four on Wolfcamp completed additional traditional and favorable pursuit potential risk, maximize drilled cash to year, of last minimal into return produced impact and the in secondary profile primary a example, up The investment The systems. development with deliver because For leasehold is gathering production wells however, they targets. our of alongside carry co-development assets. on packages investment, targets require to existing are that the no high existing pads goal benches

and reserves, and development our XX our drive current with invested our When the a in we existing potential proved the rate, and as development of resource Looking premium in we When returns, costs finding expected Company billion-barrel out an beyond employed. -- finding the than current finding with on we've invest DD&A basis down. capital combined financials plays less our over costs shows equivalents rate. low we development cost, it up identified of DD&A high less than increased cost in return future finding cost

we faster our of it. decentralized and Thanks strategy, multi-basin structure than the growing resource to organic exploration our is base do benefits

better. More importantly, is it getting

years we year XX innovation, over quality our expiration. resource improving through on have and focused the at drilling pace, double-premium technical the operational are current every and of of improvements We

call to Now let Ezra. me turn the back

Ezra Yacob

like In takeaways. important proposition. unique note Thanks, Ken. the Resources conclusion, I'd offers value EOG to following a

it high-return premium or rate investment price anchored deck. with multi-basin investment the of portfolio industry's stringent First, most by hurdle opportunities begins our

portfolio. support Second, our disciplined across optimizes investment strategy continuous our growth improvement to

utilize a Our allow to technology and and operator. remain innovation to increase efficiencies employees EOG low-cost

Third, cash and generating focused balance long-term a near- flow additional commitment regular sustainably are support fund sheet to free optionality cycles. the growing cash a free both flow we and to provide dividend, maintain to to our on pristine return through shareholders

across and each are technologies. our assets, focused footprint improving environmental operations safe we internally both on developed utilizing of our and existing Fourth,

it And finally, make that it's EOG the happen. employees

Our at advantage. is competitive proposition and value culture core is the our of our ultimate

Thanks for listening.

Now Q&A. we'll go to

Operator

from Our [Operator Instructions] Cheng Scotiabank. Paul comes first question today from

open. now is line Your

Paul Cheng

Two questions, please.

is economic the oil this Dorado, your the more how of at imagine, for years play I in to play? First, there's than investment next gas the many price? outlook program the Ezra, play? landscape changed that on How for the with natural your in would point, changed several gas drill that changing

the on is question like future. Second you the Maybe seems for investing it that CapEx. are

year, that what production if may in of and And not CapEx your will program? is this for current think to we're be requirement remainder looking some see at, the budget? we this So is sustaining the softening maintain the flat start also, point reflected your which there say, area a you for at in to cost any

Ezra Yacob

Those both Thank are you, Paul. This is Ezra. great questions.

it with one start on So gas like let here looking me what's right now. natural the and first

winter we've with late correct, natural the recent been You're outages watching in volatility the LNG the gas, XXXX we're experiencing. and warm associated and that currently

year it Basin this -- -- is from About XXX Delaware as other of Dorado our is coming see the growth gas cubic Our million of mentioned, the plan, per of the next out you'll gas about basically that on coming XX% play. half the day. the at midpoint associated and is feet the of you about out is

always strategy Coast. really the We've is point, of anything into barring investment for has Our to there always or And for reason that ramping And strategy It's that seasonal about chasing the activities focused significantly really center this that see yet. kind the hasn't grow been Dorado that been growing don't moderate dramatic. we at having Dorado, us. a along demand never demand say, aggressively Gulf longer-term changed up at I'd would, in play. it on

online currently, 'XX a online will year, We've this through moved the kind the also growth where a line Bcf coming just have 'XX, with reflected we eight export this contango. Bcf five strip another clear. time is And still day U.S., an The price it's a potentially then sight after in of into you working about of of LNG additional financing. day day back two and the see got demand disruption's Bcf see frame

low those can a moving cost we where stated, capture So program where our remains as towards Dorado. supply. upfront the year Dorado deliver efficiencies crew to down year, each It's at the pace giving long-term improves really to investment an long-term one completion same. us strategy costs the well at be This ability we'll consistently and asset at costs, a operating drive Billy of both really

The number CapEx believe, first is here second organic as on didn't that say is maintenance CapEx. I focus of sustaining what And that on a type capital reason a question, your sustaining even part for we company. growth don't is, an is I'd And of necessarily the during we XXXX, the maintain program.

it. invest and in our well. And supports We're we'll back very dynamic, to the and can we that ability need when see don't as to, market we pull at and we the time business grow

number CapEx maintenance at. we necessarily is look So not a that

program up as year-over-year. is far our breakevens capital as on year, definitely this bit little Now a it

mentioned, obviously inflation in portfolio Billy invest seeing the multi-basin some CapEx. increase we're there's in also, there. the to our As But and opportunity

gas at over CapEx give So, maybe it and of a year program price WTI with where to year. $XX color price. a this to going I'll it our we is see inflation this on And $X.XX hand little bit Billy

Billy Helms

Yes, certainly.

safe inflation to have down. commodity We've has say come think front, prices the On falling. it's that everybody I inflation rates and peaked seen seen

lot And the costs, year. so least, a we're of service have seeing this going at into plateaued

through any our the call, about to lower opportunity leaves on And costs I into contracts And existing mentioned rates secured going see in as got upside year. our so, capture with we XX% that us the of the event. that we've wealth might

fairly So position. we're sitting good in a

to improve poised look see baked is our think in And We and as we we'll I think we've to they to as continue plan. what going opportunities, least, themselves. plateaued. a at we're for opportunities about inflation, that. into present take But of and I happens be see inflation waiting to XX% advantage ways that showing

Paul Cheng

softening? area you have any the particular do opportunity of see Billy,

Billy Helms

year casing on is what the parts we've certainly last seen biggest up. drivers seen And I different cost. was different that we've inflation of tubulars things and think think this of make one I

products over think softening are mostly production which casing, imports. those I little ERW exposed rolled to largely still the a bit casings, and the which and intermediate products, your have than seamless are the is is surface more

I And casing, but so there's opportunities that. some on on yet come think you're seeing of still most to

is On and we seen off the counts yet, I prices, service haven't in really -- to largely since And with of some but think in anything of side, activity level. rig more gas flat have we've drop on see everybody November softening their peak XX seen rigs. September, probably the maybe XX think down all we'll I think I they're manifested been the rig expecting

So that may some lead markets. capture to some opportunities to

advantage that I'll we ahead expand the one out, The later, go benefit throw and on operating in we but have, we have is and basins. it multiple may this

to so service rates. have But to add capacity most constraints opportunity would Permian. And areas our which to be take advantage the more the activity labor in basins of enable other available at and tightness services those we more equipment, available activity, see to we certainly more with the shift to favorable

that's that the company. So a we as advantage have

Operator

today JPMorgan. Arun Jayaram question from comes from next Our

now is line open. Your

Arun Jayaram

a call at sheet run Ezra, of call case, XX% sheet it, XX cash be, that, -- free the a or through, you and it, if cash, of $X have you're net billion would we cash, return net $XX year-end. if at that a billion balance looking balance $X.X you in

looking terms prioritize and opportunities So wanted of uses increasing how bolt-ons about of you in at opportunities, your at those or including where cash we M&A? heads the XXXX? return versus to views have to balance of thoughts you shareholders of sheet as inorganic on I cash think that some get do And on your that

Ezra Yacob

in. at for because and a balance That's about we strength It's of it love great it's And times, the casing. -- our to reason take we at XXXX, of lot a lot in something is Ezra. optionality lot a that us of whether talking a different question. of look gives it. purchased -- It's purchased pride I sheet strategically the

year, line the Utica purchase pipe. XXXX, were able in purchasing a some amount And In small able decent acquisition just minerals we play, last were of to we a make including to there.

it M&As. things We makes any and not for of into could things right to out expensive, that to infrastructure lateral would still do we're bolt-ons, lengths. seek large, So our accretive, extend do move corporate some be continue opportunities our sense looking that existing where

move didn't target. general, optionality. cash say do we thing We mention first will XX% quarter at bond that commitment for year, I In that a And would our retiring shareholders. to here in last billion. we minimum is the Last like don't cash returned our flow have $X.X XX%. approximately that, point in out I'd specific that beyond we be The of net have to then, did addition free a our return we position, to this year, one of you

we're time obviously, as think I can can and year on the we within where you a and that that Board level, proved evaluated move at so to see you have like, the looks depending take when at the at our point cycle, -- position the And XX% and it's appropriate we're minimum and what data at above the threshold. right where willing cash within we're beyond that

Arun Jayaram

My Company, on oriented. the Great. million approaching short of opportunities. in of and your get Ezra, And day to just is is longer Boes your activity terms exploring the size output, I of X cycle cycle overall follow-up most wanted thoughts per you're given

peers in and thoughts stand in And at Australia? -- perhaps your I LNG. on Alaska invest for some long cycle the of your and we EOG where update drill areas on such as to seen Beehive You've an looking get wanted to

Ezra Yacob

maybe cycle our yes, of can Arun, Trinidad. some with can -- Yes, We start start we stuff. with longer

rig a our Billy a has been on As Trinidad there program. drilling delay mentioned, bit of

XXXX. made work should also of some we in that We based platform in campaign drilling a there year of that this another Momento named this based later did ended did about one past on midyear construction platform on that the start year. So that that set XXXX. We there based we the -- discoveries on in this will start year,

side. Trinidad the So that's on

has It's you about In the now that line side, time some in little with our infrastructure shelf. bit. with our like other are Australia, our projects Northwest as be we we Beehive or currently the XXXX. then Dorado ability balance prospect just in some goes to a to of And costs to these it's opportunistic. in That lower were had typically, talking spud and our the the can slid be agreement what sheet And see, you mentioned, on in it actually prospect with the and like on to do go and our things we in ahead expand counter-cyclically margins. of strategic ability put and operating LNG

Those are the and look things is type are gas our which business, and of premium really wells. opportunities that that core drilling we developing with natural concert for, in oil

Operator

Our next question Leggate Bank America. today comes Doug from from of

is now line Your open.

Doug Leggate

your don't last consistent a So for for year. fairly I of message you to of the the offset comments have or part about if but been one's know some Tim, your Ezra, inflation able being over this

So, were little the by surprised I think folks a CapEx number.

disproportionate more So related of the you moving or the on of specifically, some be of There to infrastructure curious amount activity it through whether takeaway breakdown. I the spending led wonder maybe issue. could newer parts are lifting CapEx I'm if just the walk us places? has

Billy Helms

is Yes, this Billy Doug, Helms.

a take me that. Let stab at

probably So you increase put three the can first, there's buckets in. probably

our a cost XX% of anticipating about year. well -- cost. of X/X our well versus it, It's about in inflation That's in of good piece last a is First it. inflation probably program all, we're

well X% in over of XX% XX% yes, inflation. year. last maybe probably, And and a above cost last spite But only increase achieved or that's year, arguably, XX% still we

on a offsetting of job cost inflation with our efficiency this expecting have more a gains. baked year, done I teams So increase. we've but XX% great in about We're that think

Dorado some of been our start for And second The some talked is We've that part about we've also going And our That's included building those in some we're plays. out our to plays, capital Utica also emerging the projects ESG of pipeline. be advancing. of that initiated. then testing already we're to gas like infrastructure infrastructure. the

kind those at. are that the of we So look buckets

And various have that top some wells these plays. additional then obviously, of in on we

and frac that's accompany two additional one extra the to count. pick some So fleet, rigs up course, as we well of additional going

I increase So in capital those the main would that are three year. the last buckets versus the characterize

Doug Leggate

the for Ezra. But pre-COVID that appreciate EOG you one back market a My got me was I but a to need what gas. take didn't one, quickly doesn't is some your a we a accelerate trying is And for case others this understand market point you the Ezra, Why And gas need the given are the the picking when Billy. up. I But Okay. your take want right maybe could still the term? today. forgive I is stranded growing that that color, make outlook market in production have probably oil. Thanks to about to We've time markets, U.S. back. longer fact cutting for constructive follow-up and potentially to the is largely frankly, this very

Ezra Yacob

what now. we're is between pre-COVID with versus Yes, right Dorado doing the Doug, that's the in XXXX a good question. think oil difference or Yes, I

to are said, volumes program single a basically this like spread of So year. the support. I the Dorado output anticipated It's completion

takeaway continue in offtake learn a there and outweighs to the see Coast. And see pretty running what consistent support not-too-distant in-basin a water increase gas coming to the near-term dramatic we down in we is some things price the and the volatility future, costs, because on Gulf a along putting in we benefits the that in that about very the asset, program of gathering, like see this infrastructure, drive demand

we are obviously, the Now return in side premium supported, on backstopped these investing wells. with and

we that's $X.XX that while price. way here the today's the on the life prices, we So a And all measure the below, through gas $X.XX natural at asset. at run of investment

of the I of The the the rest of across returns program flat and really liquids the are really the running Basin. out said there dominantly -- gas QX at that we're activity gas associated program we obviously coming level top side. growing the to or oil honestly, a Delaware this Basin, Q&A year as as Delaware And is, we're on is a where maintenance the driven

Operator

Our next MKM question Partners. today comes from Leo Mariani from

is line open. Your now

Leo Mariani

recent PRB, plays. And there Most in hoping wells if then sense was some Utica maybe any are did similar, seen just interested if about a bit well. come any or have some Utica emerging in little there new well any you as could us hearing from well on? I the update may results, on get improving wells the a that performance you've of

You've or seen curious talked wells cutting improvements as gotten lot experience? to have of some in more PRB, have those but not whether as you about guys costs a just

Ken Boedeker

the performance. starting give at we expected take to Leo, this really our here. of and of drilled drilling the Yes, 'XX first And Ken. a in program to is for our quarter four 'XX, wells that. that, just The continue I'll on anticipate we end portion completed Utica the flavor deliver you

Utica, I the thing, added acreage note opportunities well acres position, and is side, low-cost XX,XXX continue the add other on position. the we look side have for that to One to we'll not acreage but to on of additional would store in about

Utica and excited go ahead to about really we're So Powder. the give to it going for plan the for over Jeff XXXX. now I'm

Jeff Leitzell

is as been primary previously about Southern We wells Yes, the XXXX, all excellent across to Basin. our we completed targets. In just XX this net River our there about Leo, a in acreage shifting had And Jeff. the Yes, those, the primary we've we've results. talked focus delineate there, And to quick four Mowry. update. we Powder continue of

activity in kind a run fleet. XXXX, three-rig two- up program with We're to one a frac there. the going to we're to bit ramp So little consistent going of

talked of will about, as a be the be there year-over-year in Mowry. It's will about XX% the in the And increase Mowry. we wells. those, about that XX net So majority

then of utilize program continue area. there earlier our our And Powder on on focus Niobrara North the in and valuable future formation that we and to collect overlying look We'll then announced Southern the that position in then Basin Basin Powder we'll River Mowry a we'll to River core it lot optimizing data, on.

Leo Mariani

helpful. Ford. wanted to years. Eagle And steadily few Okay. Eagle That's been look jump to then at just of the over in the dropping I the production has kind last Ford, If

forward. of up net sort last. of roughly of kind more you Eagle guys It activity completions You this comments, pretty in years picked signaled keep flattish looks Ford to significantly have trying versus basically your In for a XX% going like year 'XX. number prepared

because kind the around of color other had primarily Ford additional any or Are Delaware. pecking new play? kind now maybe wanted out. in to have that been encouraged plan it slightly favor in a And of got Eagle get is to sense plays, flatten the well decline terms that? lower there get in seems of seeing it kind risen costs productivity Just wanted it's in things of here. the like about of Just you more to order

Ezra Yacob

and the great what's because they Yes, that's for up is question a good is capital. compete It's that to Leo, raising the exactly Ezra. is way this it respect with a returns happened pickup. That's

highest The pandemic, been last of the the investment. the our kind back we've we've out drilling years we've that back the the has that years, of trying to of of been And of coming the result history reduced that, Over of developing programs asset. rate right-size drilling there. couple -- seen to of -- result really in return

amount tremendous the of where a As of commanding and everybody infrastructure oil knowledge capital this more is asset industry it's year. knows, a lot Simply, a high-margin a lot got investment now very there. we've play

decreased flat Ford, has And to that are has you really seeing said. are and basins Eagle service production touched production, bit it, availability couple the this, over these a more The the the maybe little We of as maintain bit him in a inflation more add and we different across itself I'll the Eagle manifested years. on a why color let and on how Ford's attractive. to advantage and is Billy last looking one invest

Billy Helms

Sure.

mentioned things. constraints earlier there on see services other, versus those more levels more the Certainly, some constraints certain in a As in of I inflation fields obviously, there's the more play. on being and and Permian labor the the kind most and active you questions, of services of

So it say, and activity us one allows up those. of that the Eagle are opportunity certainly pick Ford to basins being you might less stress, seeing in

continue job team want production point, there than there, of reached to On just Eagle returns that that of we we kind front and to better top with the room us. that as of level tremendous in decade that, have in a to because we going maintain the continuing has a in for constant better see Ezra of maintain do done striving mentioned innovation Ford level in and play we forward make play of And running we've efficiencies that production with to our time. continuing that opportunities a such of more push

of So going level good we maintain forward. a just think it's production to

Operator

Dingmann comes next Neal today Our from question from Truist.

Your line is now open.

Neal Dingmann

Wolfcamp locations And first with Delaware. in approximately the My I you will side. still premium of had I ago, the XX,XXX of around these still if XX% if threw that wondering about play you'd that undrilled the your majority couple these portion XX% total premium it plays. you specifically, was in is I'm one, in detail, I really, see suggested nearly Del, question on Del? forget last locations? was these what years wonder about, of premium be Of at about just locations think, of consider number the number looking of you other Wolfcamp some is the all a -- the

Ken Boedeker

is what about talked Yes, way the of We we earlier, at current inventory years is at double-premium our we XX it, Neal, this really activity Ken. I'll a and -- that. have shot look take level. we at

locations billion talk that resource DD&A of than aren't is less trying to our current and really has the our Boe we're for concern show proposition So base us. XX-plus cost What a value really a rate. finding about

on DD&A Investing use in and will this inventory earnings employed. and capital to improve return

and costs are as our location finding are those evolve, returns count. improve acreages changes well our modify our really all swapped plans laterals counts and Our development And changing extended. constantly and

we're really returns. high what our at we is on So basis focused as now lowering cost invest

Neal Dingmann

maybe my that. guess is the Then maybe on follow No, details, makes follow-up I up Bakken. Ken sense. just on play specifically that

it a couple a consider think maybe of you'd you know You all as I of ton if even I of years locations, suggested, said, there. don't ago, wasn't a value ton

wondering need mature it but kind be areas? you'd of that to And it play given you monetizing So certainly you one just consider at appears all you I'm today? consider look -- financially, it would how don't would more many -- how of your

Ken Boedeker

Sure, plays we significant in our Neal. is the it creates one returns, The of percentage have that Bakken Company. and highest

to it's into foreseeable be try going money about run one-rig for and to program this putting where development, it's a it we're some when So is future. we'll there which appropriate the year, appropriate

Operator

question Our Scott next comes from from Gruber Citigroup.

open. now is line Your

Scott Gruber

in your above how completion more running pumping of continuous the that benefits seeing saw mentioned is to in bit that And that's just frac accurate? continuous a operations completion debt fracking I efficiency Is doing are zippers? for your detail efficiency the supplemental fleet. that helping on and having drive you So beyond Delaware. believe one you're I

Billy Helms

our Yes, Scott, our Yes, is -- thrilled this we're is with our mostly to through tied Billy. completion you're continuous fleets. frac the electric The efficiencies teams. operation, right, driven pumping

a fleets reminder, or been really since running frac business XX% -- in probably And about electric. XX% are Just our that today we're we've we've of XXXX.

electric we've frac of most industry than efficiencies of So, peers of a to probably to been of operating operation. tremendous knowledge in how or fleets the long more that, gained drive continue a for through of time. And that period amount most we've our

those about that and of efficient Basin. the and San can footage complete transferring our basically, Company, so down the approach in we us to play, that's completion the so across downtime, the well more certainly, investment techniques allows why pumping us Eagle over cost some every in drives And we're to started group really continuous the and which of minimize allows continuing Antonio the has we including amount But highly information Ford we're any that day, amount Delaware operation really strategies. excited It increase time there. our

part of us to better so, make leading completion is designs, that allowing improved to also which well performance. And is

one on the another, just excited and So overall, we're that that us. builds it's and future about thing where takes

Scott Gruber

rates -- year. be in the for both more manifest Or coverage? mentioned would coverage contract your just do really Would benefit taking currently contract capture they advantage And following also Got able then this is year-end? of to you deflation if it. How any tightness? of given any at period you frac that before 'XX softening

Billy Helms

don't But year. charges really have have up Our last at pumping cost because of rolled well rigs some term Certainly, we and off those and is XX% year staggered, year and our contracts earlier, any secured rates under on off renewed they and XX% this are of this all general, mentioned higher agreements as one our in given I day contracts frac fleets. of time. those about our about roll drilling

time ample moves to that as opportunities themselves capture opportunity So us on. if leaves present they do

Operator

Our next Barclays. from comes ahead. from go question Jeanine Wai Please

Jeanine Wai

question, on Ford. My first Eagle question, maybe the Leo's following up on

you South years, I cost a your you that in can we cumulative but couple per than and foot lower performance basis one the looks Eagle efficiency over data, how the well Texas between the when this about Delaware. Ford? the the Delaware per year, compared lower of the oil is about foot almost Eagle XQ of I on only on activity side the past is pull indicated terms In Ford in well talk a that's the think Ford XX% And and Eagle step-up in basis the the realize of overall that. disclosure Ford in XX% guess well Eagle difference like capital the equation,

provide between together efficiency Eagle on the color putting just us, and can all for Delaware? it guess the some capital how just I compare Ford So and you returns

Billy Helms

The Happy that of have advantage that. to is Ford we followed been tremendous the on give certainly Yes. Billy. quickly capital-efficient our color plays, some mentioned in the Jeanine, you The play. the one efficiencies is I driven that is, most by Eagle in Eagle Basin as earlier, this have Delaware Ford.

the Eagle in also the well right You're is per a foot significantly probably little the Ford less. cum bit but cost is lower

sales Delaware put in to lot lot shorter in Basin. we can a can than the wells time frame more so And we a

to really back the to also, are Delaware to more anymore ramp that leverage going increase portfolio Basin, feel And in activity then crews areas up we activity but available we and operation. multi-basin into didn't our to leverage in wanted equipment that on where our instead

is forward. do. in we've I plays sustaining And But Company, Eagle the keep what Ford about we have chosen of that's our capital-efficient that to still think one most opportunity excited the and to we're volume so going

Jeanine Wai

and Do or maybe oil decrease the that base corporate X% -- update current declines. the Boe will even base you given year? declines year? remain least your and at declines you X% flat or growth Great. Okay. to on this anticipate provide moving oil this Can an your Maybe

Billy Helms

say, I base we declines fairly consistent, have don't Billy is forward. this And change The again. Jeanine, measurable base in year-to-year. a would going really Yes, our declines been see

a was compared as year the last and think good expect pretty I year, this I to year would similar. be declines

Operator

comes next Our question Whitfield Stifel. from Derrick from

now Your line is open.

Derrick Whitfield

completion you the basin? new first an if would of in my outside With uplift. achieved elaborate to enhancement XX% of lean perhaps Could and into design be it to I'd the on Delaware you've question, AUR and across like nature that implemented the the

Billy Helms

Billy Helms Yes, is again. Derrick, this

improvements. with experimenting on more innovate we're consistent be honest, like and we trying On that's just And advancements the and color these And always we're ideas innovate to experiment where the improve of new the to can a and completion experimenting over some as design, can with ways new get and techniques program excited to make why Basin. Delaware to new we time. certainly, to well we're we performance about and

it and doing seen, but were only excited we're the been advance So Delaware that XX% to wells to already basins, -- other we uplift I'm But to import new we've we not about XX done so. like. on as so it's far will technology continue completion about to going detail go design looks translate the it, certainly, what We into this in Basin.

early The improvement transfer and other on. plays. amount to So fully still you expect tremendous though, we that to be see to can is the able it's of knowledge

Derrick Whitfield

the comment Could the I activity in expecting couple it perhaps perhaps Perfect. acres. to position and seemingly If next And brought gas noticed Eagle to that Ford. back order life over follow-up, of has years? the XX,XXX over of you're initial you position was as supplement shifting of reengaged in update. amount what your was wet the We my the on legacy recall,

Ken Boedeker

in invest life division, Antonio back our that to this Derrick, area. what's is and our San Yes. Yes, people that high reviewed realized Ken. it could is at have in they Really, returns brought

that make this last So we've three that drilled see matter given three we understanding exact year additional we really, we'll it's well and count, a that but an it returns, our and will had within people area kind and zones definitely where don't significant know be And activity up. we've at legacy wells those year. of think actually I different returns. looked of having acreage just can stepped

Operator

from question Johnson Rice. comes Meade from Charles Our next

now Your line is open.

Charles Meade

possibilities, intervals on like follow don't a what your up question, and I'm mentioned, on to understand to shift could maybe Basin design. talk whole capital your a -- you something push -- a Basin potatoes want that Delaware meat want bringing threshold? herald further just kind up that that's was that's I that double-premium I you're bringing curious, the -- interval fringier something great to a I to hire as alternatively, some the doing But this I'd interval Derrick's lesser to little of a in you bit on kind which maybe whatever efficiency? of is completion your already is question. apply Or Delaware that is. of design is that it broader this a about or new this something

Billy Helms

-- design Yes. Charles, we're the Helms. The really with starts an is rock applying this Yes. to. it of new understanding is Billy

how whatever all past geology about the every that. of our designs talked right made application for the is tailor and us I in are wellbore think to we've the telling is

other seeing than fringe is not apply the dramatic could we're the intervals certainly It's zones. the some of is and target we of something but our core intervals being fringe or zones? plays, or attractive but it's it I the it to core improvements. plays to of all that done just applying play. So not, would probably say the also in more But

Now tells see based right is to it's be the that -- it continue on and tailored us be develop. to we the knowledge to and be able we'll going application, geology as what transfer tweak it

Charles Meade

for you're rig your you we plays. rig guys your And indicated my process? recognize where us rigs Can over you and a expect add color. when you're 'XX. aggregate, simplification the sense to lines number give helpful But company in course count That's up you 'XX? -- a for number to is that of Or a you going three should of the the increase I those tick like new and going overall, follow-up, this are of that in to in and

Billy Helms

Sure, this throughout in kind are of We Charles. at as year. operation the the be The pretty rigs up the into fourth And Eagle rates Ford Basin going picking much of the started in mentioned, and the end fourth quarter will run Delaware pretty year. the we today. consistent quarter rigs

in so, as some Powder new started such And of Dorado. the of and the also River the plays, Basin some we've plays, emerging other drilling

of kind ongoing. are those So

is We'll Bakken They'll today. aren't the of of based the But to at of the and of other and the to yet DJ rigs ebb timing going be kind set, times the those and each lines. be flow program base fluctuate plays, or the individual count to go. it is going picking come some pretty up and or Utica. kind Those beyond I'd different not like on much rig rig full say going play. the And really, much where be will is

Operator

no over There to closing now are questions remarks. I further back at Mr. will Yacob hand for this time.

Ezra Yacob

XXXX. in everyone delivered you. Thank call just especially for the in participating morning results to our like the and thank employees this outstanding thank for I'd

Operator

That concludes Full Quarter today's results. XXXX EOG Fourth Resources and Year

You now may disconnect your lines.

EOG Resources (EOG) 24 Feb 232022 Q4 Earnings call transcript