EOG Resources (EOG) 3 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Pearce Hammond	executive
Ezra Yacob	executive
Ann Janssen	executive
Jeffrey Leitzell	executive
Keith Trasko	executive
Stephen Richardson	analyst
Arun Jayaram	analyst
Neil Mehta	analyst
Neal Dingmann	analyst
D. Terveen	executive
Scott Hanold	analyst
Leo Mariani	analyst
Paul Cheng	analyst
Derrick Whitfield	analyst
Nitin Kumar	analyst
David Deckelbaum	analyst
Lloyd Helms	executive

Call transcript

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Operator

Good day, everyone, and welcome to the EOG First Quarter 2024 Earnings Conference Call.

As a reminder, this call is being recorded. [Operator Instructions]. I would like to turn the call over to the Investor Relations Vice President of EOG Resources, Mr. Pearce Hammond. Please go ahead, sir.

Pearce Hammond

morning. Good for Conference the Call. you Quarter Resources us Earnings XXXX joining thank EOG for First And we slides An to section and the investor Investor reference updated presentation Relations of has our today's discussion. during been posted will certain website available this today. beginning be our website A replay will on of call later

EOG's may measures Factors earnings have call differ historical found As those materially forward-looking discussion SEC a conference statements. in reminder, release been our cause section certain our filings. This call also schedules and Relations be non-GAAP contain reconciliation conference could of and for this can statements EOG's on Investor measures outlined from and definitions the in actual the and these forward-looking forward-looking includes website. non-GAAP that results to related

Chairman Helms, this estimates the conference not Keith Ezra CEO; the Ann President, guidelines. Participating Senior Chief President, reserve may Financial Lance Senior as In call estimated as with Marketing. President; Operating of Chief potential Vice on Exploration morning estimated Officer; call potential resource Vice Terveen, Yacob, Jeff addition, accordance SEC's some on Trasko, Production; in this Officer; reserves well Leitzell, and reporting the Janssen, calculated reserve are and and necessarily include Billy

Here's Ezra.

Ezra Yacob

of to portfolio commitment the underpinned operating quarter $X.X driving to EOG's cash total billion $XXX regular every Pearce. operating directly of per of has execution to share strong free our are us. our and We billion generation. and more drivers free discipline execution cash excellence shareholders $X.X of quarter. all through a future Thanks, returns. Good first strong translate investing multi-basin adjusted flow. creation. earned flow both thank off by into Primary and across company that out value dividend everyone, and joining EOG unit great We value that exceptional culture. Strong continues XXXX, targets, paid efforts, cash to capital is deliver positioned of our million income performance peer-leading morning, returns generated you for repurchases. EOG's delivering start flow value team net during financial in leading and than XXX% in the unique operational beat and to our sustainability cash operational Production from costs and

cash robust confidence business. Quarter demonstrate Our our and in the after of delivered also to progress forward shareholders plays. quarter, outstanding while have we return in continues performance our to our value operational core emerging in assets driving our outlook

built to organic inventory most low have to capital healthy with most highest of development in overall down is costs textbook cost premium of approach. recent is continuous the efficiency. productive is company. a of cycle improvement basis result lower Adding of primary at reserves rock inventory exploration full drive example differentiated the We entry cost leasing DD&A the combo and through the play, lowers The our industry. The our one drive diverse EOG's and to way returns. expanding the of a of efforts finding company-wide and multi-basin return our the highly portfolios addition deepest, our Capturing portfolio Utica and

U.S. the strengthen to and demand. we gas demand record is operating industry LNG the of dynamic, and remained levels the gas through public growing track day year, year. inventory oil to overall should activity expected aligned end to levels the strong DUC throughout U.S. and have kept for Bcf but with cycles. The power to returns-focused months, growth. throughout including a remain relatively market or the lead as soft value Current more trend start the average year, second this oil expect X-year to our areas, has a of the XXXX, several inventory growth to to this been U.S. environment Rig XX and to the environment and has electrification, performed first half spare around an a we this that coal expect strong has returning on quarter, prices drilled supply this in feed Our production while narrow by while demand create and half to developments with from forecast and drawn market certain a expect year. Globally, align is economy. And oil band as the Dorado to and result program of anticipate the with quarter, capacity global the is Applied have in shareholder sectors industrial operational counts limit will plant natural for X a In past remains the Overall, drivers positioned such producers through XX and the down. to low-cost we demand led the year. like demand. strong private surprised but increase Technology constructive, retirements of year Longer these to several to Bcf barrels over company XX managing we U.S. day year the flat another per successful macro of the last exploration, upside X, and XX and of second year execution uncompleted it altered Mexico, M&A we overall EOG. And other through the demand moderated additional much exports outlook term, are combined

lowest gas has by Dorado the decade gas to LNG play So for and the American and through of for X-year scenario. the highest Through marketing to sustainable access X supply and creation cost the on parts this next pipeline EOG's certain agreements exploration, today improve per the chain offering over organic natural the grow bullish, diverse value vertical demand EOG to for end utilization diverse and of is per being participating forecast next both outlook advantaged to update our approach sales MMBtu return and industry integration emissions technology to to to day is our an emerging the forward lowest the which years. differentiated particular, on day North of cycles. Ann XXX,XXX dry provide from in our MMBtu the look infrastructure. We our efficiencies, through in XXX,XXX operational strategy, producers, up Coast focused remains among Gulf the of

Here's Ann.

Ann Janssen

Ezra. Thanks,

$X.X to remainder $XX Given quarter we executed we the in now forecast full updated $X.X reflect have the during recent commodity and the and strength natural to of dividend regular gas the XX%. commitment and prices, free of XX% flow which to year for represents of share our cash an annualized view cash more flow, expect well $X.XX annual billion free year, free while our than return exceeded so repurchases return XXXX first on basis. for cash the way generate continue quarter, oil both year. Considering to are committed the our about our billion a return flow already during cash of And on this to return we minimum that have we first

quarter, worth shares. share. than we million an average During To began nearly per using more million for billion shares $XXX about of repurchased year, X% the of the per shares for authorization of about $XXX averaging million, share. last our at outstanding $X.X bought start have $XXX X.X price date, about or back that first totals of shares we XX buyback Since we

in a value. quarter, continue employed repurchase and We to to and capacity opportunities create monitor provided future return expanded we the scenario EOG's free to to for capital market will shareholder step a strong throughout to cash shares year. Last double-digit X-year generate flow the illustrate earn on

on $XX by scenario assuming price as additional over an billion provided free expanded commodity we time years. cash stems than prices of for averaged cash XX% same from flow. free XXXX cash to Over That's focusing significant that we performance flow and years, and past billion for flow a value we create our through and in the growth our commodity change has years cycle cost exploration quarter, step the and $XX execution would averaged similar next cumulative natural XXXX, to maximizing to through oil free free disciplined prior cash of shareholders. reductions strong at EOG's by well free prices same capacity shareholders, potential flow to This full X Applying financial deck. Robust organic X supported generated sustainable gas our price cash performance, to returned illustrate next by EOG the the years X $X.XX. substantial expect our X $XX returns forecast X-year From frame, operational those flow. the driven generate cash more

operating review results. Jeff here's to Now

Jeffrey Leitzell

I'd like efficient and safe execution. to the thank employees the year great for Anne. all to start first a with operational Thanks,

targets first costs volumes while unit total per Our and capital operating cash beat was in line. quarter

and year, growth delivers production forecast volume our growth. total capital For billion and X% $X.X the X% oil remains

the Basin our Texas XX last These pipeline capital to pace our $X.X more South slightly expect be the will year our first presentation. By X the this that capital driven of XX% investor provided in second processing that serve the the our both quarter, quarter. Slide of on we be include plan. expect Verde end in half, gas infrastructure timing Delaware on highlighted Dorado details to we of billion by to continue plant play, of Janus that projects in will about and the We on weighted the have projects the spent investments

quarter asset, actively production which production gas natural year for our the guidance reflected yesterday. in are second oil we managing our capital and full While unchanged, our plan Dorado in is published remains activity

to weaker quarter, volumes As gas year delay natural market we discussed and and flexibility well moderated leveraging activity to are completions Dorado this the in summer. manage a last through additional in response now

and and to maintain monitor includes a improve petrochemical for year. the market. We Coast. on with U.S., long-term will constructive Gulf play program approach outlook by pursue help full corresponding momentum, capture on operational the advance continue LNG, a while power growing continue rig we This generation balanced and natural development the which remain gas throughout demand to this efficiencies the we to the continue However, the asset, operating complex will gas supported the

of advantaged for of lower, cost to natural market deflation seeing standard service the especially are regards which pleased is the year. trending with been spot services supplies have location emissions and an one expectations U.S. some gas market, in in We with profile. With of place lowest this the our bids cost Dorado's as consistent with

fleets, and pricing. For still observing frac rigs are high-spec stable we

less their is markets especially However, availability improving, with in activity.

we length footprint. charge by efficiency our improvements and continue at being Basin, year about both plans in operating resources, plan by longer Delaware of our drilled is secured XXXX foundational with Our on in XX a increased XX operating to X each laterals, A Eagle in potential a the focus service X-mile one XX% economics. In we're as high-demand plays achieved the consistent execution The and performance drive net and to our drilling performance cost to cross-functional reminder, per than By and our new teams significant securing Delaware XX% the increase plays laterals cost have able foot XXXX. includes XX% will have multi-basin the and Ford, completing well sustainable efficiency our efficiencies primarily we to ensure efficiency have laterals our plays, Basin longer our more lower program. XXX,XXX high-spec work which progress we XXXX, services gains well improve measured throughout acre to unlock efficiencies, consistent is in to drill lateral to to in success leading As these increasing led this on to portfolio. the our continues improved throughout capital to of pace. EOG's our Eagle average driver across XX% company-wide. expect and Ford, of In average teams

Moving Basin. Powder to River the

the our Niobrara geologic Mowry In be maintaining make our packages and strides the year, day to our targeting. Our understanding to we've to refined drilling drilling a been footage with have XX% deeper between play. This this to increase by applying captured by technical while we XXXX we the into of the and X formations. recently reformation models the the good mile our across first. In the able attributed averages, development transitioned variation XX% can compared balanced per stratigraphic Niobrara development better continue teams learnings Niobrara, approach over development while package zone first in

first service on costs, execute With across stable year plan. single-digit is percentage. a a for to strong efficiency positioned year quarter, is well these After EOG expectations portfolio with full continued our well gains diverse low cost its our full along plays decrease

lowering recovery, Our a drive a with technical costs improved to teams continue on innovation leader sustainability. being and focus in

to Now more provide here's the on color Keith Utica.

Keith Trasko

play. at of indicates liquids wells per our Timberwolf from a have second X,XXX-foot Jeff. per Thanks, and The the production. of over which We north oil XXX,XXX the barrels over portion first combo in months. have than the of first produced in than X million half wells drilled of Rhino well our in have is being of happy very White Timberwolf X the now since averaged X package, oil southern the been slightly outperform on of average, their X, of more in the data our meeting feet We're Xavier, spacing to mix the more packages first brought our expectations weeks recently production months with during higher first Initial drilled On development central online results our also the brought and X,XXX our We and Rhino. This well X have and cubic production of of rates X the package play. acreage. our X White few third NGLs of Utica development expectations. continue wells parts the XXXX. these production Daily first than barrels gas Xavier wells

The While from a southern wells. growing has acreage our Central better mineral wells another with wells XXX,XXX wells, Northern rights area of packages, The area our thicker data collection associated the XX also secured economic adds to across legacy and add now benefits the significant uplift acres. XX points, development properties. we from benefits which White which Utica, net mechanical and Rhino X X includes delineation southern

basis, liquids past both premium with results oil While combo play of Basin years the areas see XXX,XXX XXX-mile the the multiple some across oil high of our production total window. On foot Utica's favorably performance over to compares best through respect we areas confirm expect the and a trend acre productivity net the cumulative per position, in the vary north-south volatile in Utica with equivalents. the well Permian to of X

to across North play position developing contiguous repeatable, America. itself long-life, the the in a Our large acreage with Utica lends competitive low-cost unconventional plays premier

stable EOG leverage consistent increase efficiencies operating drive mile and our a continues Our in South, wide similar this online continue drilled excited down and are across the an pattern we We This X.X well lateral to to team our this as costs. scheduled length. well later activity is to asset. on year, efficiencies we is to recently driving come increase record which lateral activity

the well central and full For cost target complete acreage, net XXXX, and Utica wells significant which northern, southern across program we drill our reductions. XX on a rig in are to and supports enables

Now wrap here's Ezra up. to

Ezra Yacob

of Thank those America; built through with the the wells Thanks, at the with most deepest would friend multi-basin the Finally, will of well announced on to model most innovation across Billy your Keith. the with infield safely this information for wishes continues plays recent high-return I the utilizing the end innovative focused after of processes cost, important company. future Basin of confidence the like employees EOG, best the to disciplines, Delaware premier EOG. and our XX-year and constantly better and delivers execution to shepherd business Best best new for demonstrated and contributes our across demonstrate recently friend emerging North return to that new colleague highest business; be investment then technology assets success innovation has inventory improve core Billy shareholders Utica, Eagle ideas performance month. In industry. one consistent quarter, from operational our retire a ideas to in to the bittersweet. note distinctive in our very EOG's company colleague, robust retirement portfolios years Billy's lower outlook following utilize emissions. He across lays takeaways: exploration ideas Billy. our to Helms. to competitive learned, value to our and of the though First, financial service multiple technology, of our and Even in he our will to helped unconventional of more lower drill and return as of groundwork differentiated of for encourage cash our today is a in one Third, performance and plays to Second, execution ability career and champions you Ford he you, exploration The diverse quarter outstanding EOG's while investment;

Operator

comes our Richardson question Instructions]. [Operator Evercore with ISI. first today And Steve from

Stephen Richardson

$X.XX, could about bit demand all could certainly maybe reflects the play Or bit little and happen ] Ezra, talk about I complete? in is curve. Maybe also that down curve, talk little the do bullish are program was that you near forward pretty about particularly could to activity wondering the goes. infrastructure into on II, regards out the play you if -- a you flexibility forward if [ the it about one-rig all of the as drill Phase that curve terms appreciate maybe I Verde talk that term. do $X you on fill? gas remind to outlook, I But the you're as sounds us in once like need moderating of it gets a Dorado. the where what up And how think in

Ezra Yacob

that's a question. Steve, is Yes, great This Ezra.

X So we've warm strong continue summer. will after also levels the last years, gas, but it's summers. X expect But stating during into that are seen the you're obviously demand high power highlight right, inventory in X obvious, side I And on consecutive this the winters. obviously, the we very last to

operators could So see rig coupled just in the in bit inventory a not year. half quite the the we summer activity levels come but off with the of reduction demand, supply, curtailing reduced second from some strong only from potential the

and is would plays prefer some talking gas that say, Now Steve, what keep investment about said, flexibility to I would with maintaining really rig Dorado. dominantly we're into difficult completely Unfortunately, in actually we those overall, efficiencies. you happened capture to and XXXX. during a really always COVID activity continue of our shutter It's operational plays that when in some the running obviously we're program.

continue prefer to side. on rig area. But completion we and So our a continue the learnings having do of capture we'd in flexibility the to have a operate lot

DUCs more could but on that as be to side. to you done build DUCs schedule look flexible back turn-in so than prefer us completion to we on before so some well, we've And although hold our potentially lines, necessarily

fact, we investment returns-based commitments of Steve, of far us. filling for really did, that with no, the duration, really to gas question. control. That's to and is marketing have ourselves of the there the line one when that a any put course, flexibility, the importantly, reason online, infrastructure, in determine in in it's our longer-term diversity infrastructure we and a As most we our What's going is which, as really situation this, it's don't pace in strategy of bring like markets

And don't with. necessarily any deal to have so obligations we

Stephen Richardson

Great.

And or activity $X.XX to ourselves, want [ well. I but guess. that ] price price you probably efficiencies that to there's get as got rigs you've want flexibility X would on downside so a low or but in you, Ezra, appreciate see we X could environment, environment, go in to $X hastily to a -- appreciate upside the of and don't retain I ahead this

Ezra Yacob

the the pace that to learning. don't right about our it. Steve want think of way it. last exactly way It's Yes, think we is -- the outrun about on touched you part to We

with created. on most a that matter the advantaged, thing upcoming easy it a Gulf Now America. what with talked because see very the service located, this price of that been gas about need along to we is because historically the where to constructive rest Dorado committed the layer important model you've so it's it's to increasing sure before. And play the on we think on a of we're of really the for is demand making whatever we're is forecast throughout very mid-cycle has supply, asset. gas decade, gas longer-term weather while That's not only the in but are about this Coast. But geography gas very supply-demand we've cost thing in demand volatile you gas constructive all low-cost can no the We North top

positive investing important we're at that optimize so in investing optimize thing this basis the most place, keep is, us sure some cost cost the our early continue to And for and of even supply flow those making in have that to so days and we of cash skinny pace low, a through can a the returns times. of the

in far to it could level being past talked of look increase LNG with assigning Steve, increase we as just say hard as to have in we've activity place. we'll a prepared I'd infrastructure think the the I demand. overall So the it, and the to upcoming But

We the but -- water, that things -- sand mines only not in-basin, infrastructure like the things takeaway and of water have nature. and

measured it commensurately look could So ramp be it pace. up learning, ramp us at up. should a to which But our you we would with at more

Operator

question from next Arun our Securities. JPMorgan Jayaram And comes with

Arun Jayaram

your wondering you returned flow. flow for historically, to cash signals this free above the of XX% you XXX% cash the target what your was level of quarter, Ezra, returned year. -- this over haven't I market the

any So below this was from other the to think from market quarter? fact -- dislocated, your you outside in buyback $XXX the activity you -- of the the implications stock thought that call

Ezra Yacob

This buybacks about Yes, I'd we flow. say to and dividend, is last year, of through our did return regular and the cash Arun. the specials XX% market Ezra.

continue It say I'd focused buybacks, to our continue general, really continue the X line. that is years, on And flow the even and business repurchasing opportunistic we've market. big before, River energy the themselves those we be as say in really quarters. remains cash remain being, volatility the buybacks entire really how rather highlighted we've trend biased cash we've I to things and quarters to The quarters is is they big to out the our we'll especially to that will our undervalued of the it's Utica, that will EOG evaluate reason than that sector, like in shareholders -- talking forward. And been the provide as I are regular last market continue. The use core you dividend. over our buying past Powder present to only we're been Permian on opportunities just strengthened the past doing the I'd as certainly, said, quarters. Dorado, that's plays, But I back our unchanged. for feedback going And the we'll really, but priorities we've best market about that we've few now say to And Ford, advantage. shares certainly over our relative is return it Eagle the the higher substantially not appreciate not shares. In to that the shareholders. But for and see time broad highlighted received these emerging for Basin. probably allocation we assets really the difference, can in probably specials. buybacks has And biased think few you on been was the as confidence And having So approach. us towards is as the of last all that been proceeding the trend think, share couple it, the

Arun Jayaram

in Great. you the on on $X.X the highlighted confidence year year influencing based billion XXXX? CapEx? first guide, CapEx My just how some the follow-up, the infrastructure XQ the last guide first in was of that's half. spend for wondering you're around strategic of hitting XX% thoughts quarter, the full of full the CapEx your timing spending Ezra, how And half I

Jeffrey Leitzell

out we question. say expected. XXXX our I'd the for first What playing is had is it's Arun, this Jeff. as Yes, plan, Thanks

the as timing, we really of line total still and far in is $X.X as everything confident CapEx billion. So budget feel with

indirects. about we -- budget, first half. You due higher standard that did the thing hit that's about Verde that And be XX% second half strategic pipeline have to will both of are there. The that to our this it to $X.XX-plus pipeline you it to the bring first is to slightly year. spends asset. at there back And head, nice it total talked we're planned about opening some going gas projects are end gas on of excited Mcf XXXX. and hopefully, about plant, both we get the really, going those Delaware it statements, of talked and that we've phase for come to in but savings the that plant the just for in The the to CapEx Verde really infrastructure the with GP&T projects online. on, scheduled per of of got able realize the life be those is come really

Operator

next question comes Goldman Mehta Neil Our Sachs. with from

Neil Mehta

your on love maturity. more Ford perspective fields just Eagle I Bakken the and to entered

of Some to of some and on and inventory value they're about get have earnings doing life the as that perspective the you're love peers your season would this deepen just talked phase of the to your we things extend the into much ground doing on the assets. drive different these next things on as

Jeffrey Leitzell

Yes, again. Neil, this is Jeff

about, far as performance, at completing net wells Eagle we've there. key With completing the just as zippers, been right through operational laterals about faster done looking program and of Eagle Ford, play. And to be the well able been with our line out increasing also asset, we've in the expectations. got takeaway longer is talked this recently, actually slightly then a a continue had in see East the really of we the good, And started in big is everything say the any West, XX% what year. capital consistent length out this and have the the increasing year. has mean cost going We're about With lower movements Ford, reductions little going is I'd you're to pay, some efficiency play focusing productivity that the and to to you moved as it's we've prolific where And we're efficiencies really improve we've faster, I drilling bit there super to more quality on but had -- geology. mature continued more degradation. we XXX economics where And with year-over-year. one that we've improve in to that the the lateral that

you and as can but length with we of might be in year-over-year, longer the -- a did So hair completed XXXX amount we've see those same activity lateral the down just laterals.

we're ways the there. really just to one able that's of drive efficiency So

then I and program see we can the it to run the of Three in really, markets, we've it's XX of areas looking ahead XX new mean, some years. And they're kind years, Primarily, Right a some but able and net then Ford targets with the are staying infilling of going now, available our limited Eagle over also, X returns. rate we're additional that online got there. so And of there. about You And drilling existing the wells just mature got and wells in bring of development. over really, around offset to highest the capacity, returns been Forks targets. for last just in some in some and depletion. Bakken, of we Bakken resource. we've we're very we've We're some had

So with and excited productivity great play, we're in and about the looks well everything online oily on that's forecast, there those coming really a wells is year. this line our obviously, with

Neil Mehta

extend just in the a on And the supply side. congratulations then over to lot on oil next is you coming want couple OPEC Billy, macro, to years. retirement up demand and uncertainty and My I the my on of both your weeks the specifically. thanks meeting just the got macro on the of for insight and We've here follow-up

trended So -- macro. telling the perspective this commodity year big commodity ball from looking Ezra? perspective is crystal a operation -- know to in-house your I What's expectations? oil have you, the a how just at And relative you

Ezra Yacob

But there. with a prompted most played There And people bit of has pullback fact start expected. that XXX strengthen had that and the year. day. demand the barrels should models, to us ultimately, others really that's one demand demand thing Yes, of looks a capacity Neil. I about looks spare think, QX, it prompted as some throughout is I that was other It out a out I'd Well, the there, offline. like brought million think, had in being

in So not just but we're economy. side. namely strength have also we bit, seasonal Also the manufacturing demand the little a here, China, underlying seeing picking only the up Chinese economy, the on U.S. in

back we ultimately, of the in bit XXX a the So day year. demand see million above a half reaching

lower. capacity spare about first on have products below And When obviously, inventory a average, so inventory side. really stayed offline, but levels levels, are bit think just that's demand with that the X-year quarters you

And -- depends, supply in opening that's comments, see the the for moderate. the capacity on in to half how spoke arrive think of we year. And kind market really pretty so spare with agreement see the next should up year. as that then And said, other per potentially upcoming that in OPEC this the good that indicate rest the reentering growth supply really in be year-over-year. how of model we We're where plays much at as about shapes some inventory of throughout XXX,XXX side, good U.S. draws the that back a barrel XXX,XXX would we I of estimates But you out, that we'll the a day meeting. of

Operator

Truist Dingmann from comes Securities. question next Our with Neal

Neal Dingmann

change you there's black about I'm talk question continue Utica your first just wondering. if to at oil the so year? is play, anything My you might on eastern of thoughts might Could in the the more you all target of Slide play the the that maybe the activity your this window? see you for today, on on that And specifically appears the remainder window, XX, year to cause volatile map of looking just prospectivity it side the

Keith Trasko

Yes. Keith. This is

trend. been You're valid a north delineating through south mainly right, we XXX-mile the have oil It's area.

kind don't data. before we before to degree changes pay to of doing need we need of thickness to of we east to -- in kind we We're seismic west. is we the thing on in general, geologically, acquire that. We But see developing. from west the don't structural of or -- significant first process need see the start The in complexity

the a equate in to but such would reduces costs. plays, other to which lower our Ford, also productivity, well little West, But bit less pressure have the maturity, pressure. going as little bit, you're Eagle a reduces the maybe On it less

better sand to need keep down. drive infrastructure the a like full basin costs all pace place are continue can in just rig have our So to activity to to play. And able get where and X We year. your We in-basin we other of reuse. portions he the comparable and grow asked, water learnings want ramped still at really leverage be the this economics then we to on up overall, to in also getting level,

for quarter for competes to play out last XX overall, wells, But anything place best XXXX. of So we it's disclose plan are laid little XXXX too sticking and our with to really this net early our a capital.

thing portfolio, the we other necessarily The drive don't with multi-basin of is up that. aggressively. returns great We'll need it ramp to just let kind

Neal Dingmann

optionality export the might around supplement about Or U.S. XX, at is. those about your to slide around of have like the Very the then I -- you if opportunity opportunities marketing around oil. side, maybe Slide a flexibility quickly talked markets? the at there side talk just Is good oil Statistically, that opportunities present? sort increase on details, just or you I'm looking second just And Keith. the look

D. Terveen

Yes, just just the facility of have advantaged. that capacity, Neil, Coast. best we the have we into is can Eagle from Yes, Lance. are They Basin, the the the side, I Delaware is there. supply increased When we're think that the think just we an that just down dredging out it's recently about outstanding Gulf like this that capacity the we what the you come -- And that's facility. it's in then firm

we're DLCCs [ actually loading there. ] been So

our pushing we tank there the So the the markets position, been across we've most that export the more have quarter. into and capability recent dock in actually

Operator

comes Hanold Markets. Our next Scott question from RBC with Capital

Scott Hanold

want outrun fact little Yes, that. do that not the given you Utica. more I bit to guys thanks. the learning A on But curve. your appreciate

to big competitive see good what to this for be You're need places just meaningful with happen what allocation become of part more and a pretty Permian, demonstrating do like to you picture, production like your going some economics and the forward? capital needs

Ezra Yacob

It's think where I very Yes, we're Ezra. is a happy this position. over we're with Scott, XXX,XXX-acre at.

north honest, As we've Keith be packages south. now. to XXX it's let's And highlighted, miles got on right X

X thoughts spacing the we initially our and type Now our more what in than of fantastic. curves, confirming had exceeding the on test. packages early they're are some They're

this at direction. the right point, is in going So everything

other was step of delineate step is first to the highlighted, Keith -- well-log some having the to help identification. of really, well, As some acreage first that we the have, the

and what complexity really, the now of go maybe see step is second is. So get seismic to and level the that ahead

Keith we which -- It's south. the brought comments, on down -- have different opening very down it's geologic an a talked just a up of brought As in in there. the on prove a own is about his also minerals, Which we bit environment exciting. package will area where

know the uplift You economic that can that, guys have.

around We'd would infrastructure to have. just to to I And XXXX, Maybe able Scott, one all the these the scale continue frame. way is. get overall, was on XXXX be to about say in-basin it's start Permian think and think pace. early plays we to -- it, and leverage where is of kind where Utica is, So size right some everything resource the that like that maybe in time in about

when across costs think need outrunning And so ground you big and that's a the of here. increasing all activity in multiple difference. high-return and very the as about of asset. We're putting basins, really today, at we not they're got the we're the not where we talk life on the We've this with full learn, a our about point stay ability that's deep inventory to why going that it you're economics, to in cycle

we've that company to invest them multi-basin pace inventory ability in a that out lean improve in we allows model I built has as and matured, with at portfolio really aggressively single of the we this any need asset can to changed one that each think our We've these year-over-year. business on anymore. don't the has where got

higher we costs things capital we on early have misses learnings that to bring these well the these Utica. or have learnings at a place of from some other definitely into Bakken, the the to Permian, it do the where plays. some the Eagle in resource not we're Now efficiency the want But we of Ford, plagued want don't -- spacing or

I at turn So where or for -- to our is really anything how value. maximize in going wouldn't company Scott. comes the program but It's sign any to any looking major or silver at shareholder portfolio to XX-rig decision cycle, that like not level we're to the it we're at capitally a down a and company asset we're as across allocate the where returns-based the bullet say at, the on ultimately that, really to level,

Scott Hanold

ask next to before congrats appreciated the years. over question, Bill insights well. we to my And I Obviously, all expertise and as your I my extend want

planned, bit? economics with that region set seeing in coming question say, pricing? us to, I remind the could is, little all obviously a you but how And so some my mean, pricing is refresh you follow-up Hub Trinidad we're us what was Henry have that like, and relative on growth there

Jeffrey Leitzell

the well area. the and on of completing just more smooth. currently in couple exploratory is a to Scott, everything program there after couple just to block. online. And And Yes, then move of SECC wells those a Earlier recompletes successfully. of TSP we've that, in U(a) the drilling Jeff. we'll got going area. completed Block remaining wells in finish We're our exploration and the this one Trinidad. do in Sercan and rig the year then And our up currently X-rig in we're year, X is really there this our we activity And Modified running brought

to has on Another Mento installing And note facilities also looking that platform. too year. time in and the the will and set Block. an in really getting that there. what for us point that's our been you SMR I'll we're place, do will is next good that up program Everything is

hand give So -- to the marketing far as and I'll side, to color. a over little as Lance it

D. Terveen

Yes, about we the that realizations country. into and we've real pleased been in Scott, local there Trinidad, think our demand always especially price obviously meeting when

quarter, price even with you were see the very realizations they their think attractive. that we first I can in had So

of kind that see a to basis. continue we go-forward on So

Operator

comes question next from Leo Mariani with Our RothamKM.

Leo Mariani

But in ask in Utica. little there perhaps on the just up kind exploration follow where you or are to Obviously, of to in U.S. just wanted oil a side. just guys Is more I the levels. of these happy kind seem talk you terms bit this year some levels of stealth and of plays about you of other ongoing this kind can activity exploration wanted bit the talked exploration areas. And obviously, versus point, you to down rate in where just you're about in for quarter. rates up quarter company. know Happened here the DD&A it that go able related your fair did notice of drive guys kind to I not the first the fourth then DD&A wells? a was have on any specific being reveal a of going to still necessarily

and wrap you that? some maybe all color kind together us could it give just of So around

Ezra Yacob

Leo, with Yes. then exploration I'll over is answer. and an this the to for start details DD&A Ezra. Ann hand the

in exploration the on year, yes, budget we side, quarter On have the dollars the as call. some first exploration do we this highlighted

yes, we And for that additive explore to to continue We going to we portfolio. with what continue for it, are what plays. core to to be quality that's of continue the you're corporate the seeing oil obviously. things of But -- the the focus at explore on Utica,

Have and of couple still additive DD&A These basins So through got data In I'd we're things types drilled and of call development the rate. This success like that's not stealth that's these more we've to way before. I year, testing we basis, big we've production the and bit not exploration, delineation if in, We're contributes and but would those clear gas. hurdle encouraged because we've these and thing with are I've the these frontier plays much if and U.S., be what then another player well a like are days, to be call in a into such wildcat and to going call really we're not the to a initial way there's simply It's about. The that, and continuing We've Is see additive up that a get been hole. on that major taking in the could that it economic in dry whether too Are of really when hand over rates just them it actually there's commands to that is are and oil we test and we're them, wells exploration the wells been I the oil operate initial so about gas with I These activities. initial drilling to really cost lowering competes we or wells initial results, another wells productive natural we some produce data initial to are not drilling seen exploration phase, where add where a I'll going it historic say, refining it's let's I a is aren't exploring? or with that expected? highlighted to wells -- talked how surface. for there's it's this end something we the found going to and test rigs the rock initial ideas. And a days we Ann. see well. investment existing We hate it want what a them returns we it basis, portfolio? they'll inventory. cost on these say to are for us. Is exploring of off that or things really think reserves really play. And

Ann Janssen

you for a level, gathering quarters in some the period adjustment over due due expect natural year, production used to DD&A, come did systems. for that gas the onetime remainder can't and X quarter saw respecting of to in DD&A We remaining first The our moderate being an at $XX.XX about increase prior guidance year. the was you to the in just the

Leo Mariani

over the the optimistic I kind some pretty on big increases then guys And you decade. pretty wanted gas real up just quick. are follow natural of to Obviously, laid out demand of balance

better. a a wanted focus little I bit about near to just to spoke little more continuing half You XXXX, if term. Maybe look second bit

maybe or so. focus that? is you think potentially or just everyone I be As I think of of kind you just bullish 'XX? lot you Are bit on Do on Or of will kind than a ] year price strip just wanted reasonable? you $X.XX but so. demand that think at do this be of decade, later on better pretty a more is the better next board increasingly look kind [ that north things to little can 'XX, strips

Ezra Yacob

on I know I'd it don't Yes, we're if that Ezra. constructive. call Leo, would but I say this 'XX, bullish

gas of summers, going of be the this that's for we've a said, seen to I that coal the we As is with -- of over coupled to true big couple That power a think last part natural surprising upside continue amount generation on demand summer. and retirements.

the also will also We pricing as natural soft, gas is great because to think this well. be pull summer continue on

the progress side that months actually a But bring some -- the over those and good supply of to think down reduction the volumes. rig of on to You half going levels activities also combine starting this with the We so, past or inventory now It where the make could that's back you operators are is an on be to bit into X pretty feed are in a point in bit that right fact this need is in the see there to you summer. overhang a headed with that of of bit year. of a LNG. That gas we with 'XX. now little to gives taken confidence starting quite come off a bit us there right, little starting curtail

Operator

Scotiabank. The from next Cheng Paul with question

Paul Cheng

the look development backlog, question. you the expect a going delineation. from rig number one Also whether your that of That's of the back delineation you what on on the go crew that I for a year see to peso feel number manufacturing been what first of program per basis. Utica. productivity, have is wells [indiscernible] from comfortable the [indiscernible] production you you in or about I'm also is that or from at the I -- move kind of development into to looking improvement If that need well order you based to or the now? And but to can like to inventory the What or apologize, it's come want well cost and what that,

Keith Trasko

Yes. Keith. Paul, this

the X.X compared [indiscernible]. of that drilled It's We on It's efficiencies, the generally lot. Example early our the see consistent has year lot it's with little start that lot still consistent activity to full the lateral on a room easier that mile shallower a on for the a we of team just that That's of well cost. geology. area, an further cost. other in this We like continues bit down helped I'll operating rig the to environment drive So X depths. play is our plays. a

a is foot. in that bit the brought learnings to per has Permian, benefit other e-frac of practices. And be EOG also We even best higher than to the $X an our thing plays for getting great just someday all and But pump rates increased crew and lower the we development Overall, opportunity costs the efficiencies. of on this from play little see

to equivalents, the organic at On the we well crews the just rigs touched and I far we foot really aggressively. development production goes to in still strategy. The Ezra, as both performance that and and this Permian differentiated on, side, these America, have basis the comparable our highlighting wells. number growing as the can where and pace back don't portfolio. and of learn It as multi-basin necessarily exploration up We program to see ramp oil with very per really wells in compete best happy a kind we're of that already players we on with

So.

Paul Cheng

see. I

question, past second ask the add I my wishes to Billy, thank help want also the congratulations to years. Before over I my you several for best and

assume The suppose. This about cycle, that. Ann. question, some But always is second that infrastructure infrastructure I will it's year, not have I every I you strategic to throughout on strategic spending, $XXX for you're spending. million think, you going that have have year the

assumption for you D&C guys? for for and spending along add be what cycle based a So infrastructure will for infrastructure strategic spending that the level of also reason to the overall all the [indiscernible]

Ezra Yacob

about a shareholders. opportunity go X, historically, XX Basin, to the see that point that highlighted Verde a We've the being a a we we expansion get about our of Ezra. the the really shareholders has asset. Similarly, beneficial in Mcf. of we is want processing one, the because the we've where of that honest Yes, to Paul, do interested of of for happen strategic uplift the generate And a life of or before, on about Yes, more in profile these an savings, return. we for of them. margins roughly some the projects couldn't excited infrastructure with enough one ahead net to that the the very there in generate over it to and that per find to it anticipated million the this, to a then cycle up netback Jeff of margin back of on XX% some remarks. this strong a themselves top These return infrastructure, and rate plant in $X.XX are seems of squeezed much benefits on Janus, If And projects where there ends highlighted be and -- $XXX you, do expected pipeline value look which infrastructure to like that continue can take party with XX% a be so, the over an rate creation perfectly also savings, GP&T the have are on rare we It's to uplift return GP&T don't of margin return. value compelling third where get could gas assets, and rate for then talked to there times But we Typically, opening present such projects more where that, X, for of we long-term every uplift. do where years in down but $X.XX opportunities to we about that, that life Permian continuing the capture $X.XX that to them. But those be of would them. come that we Mcf they're

Operator

Our Stifel. next from comes Derrick question with Whitfield

Derrick Whitfield

potential NRIs like Could advantaged Utica, could expand between elevated you're on the difference the based sounds returns on north the on trend the south? and the and be part the geology perhaps you the in geology. the of southern seeing Leading it on

Keith Trasko

Yes. This Keith.

play. The and near the frac the Utica has better the it's So acres. wellbore. with about That in going to better geology to the how is vary rock yes, it bit production. every learning geomechanics net We're It's in XXX,XXX South day do obviously the has more little more pay, properties. but in barriers early But still general, thicker contained over North. keeping ties to and the a is the energy frac

too. more So They're all as the different is happy results are to expectations, great gather But are also with the returns the type these different we're in have with south. we going down generating to expect, real that curves. going the white areas. spacing areas Geology rhinos we rail drive happy of and we're so data, far in exceeding

seeing for from Xavier. be update compared on of And and more production minerals, couple little benefit They've you still up. those they able Timberwolf a more a they're cleaning gone a have to liquid little you're have to that, weeks. we'll we yield So when the the We're data. right, and do

Derrick Whitfield

question picture Niobrara. the bigger Then on Great. PRB

optimization D&C based time Eagle and your with further returns? efficiencies Assuming play the compete Ford progress in Delaware over to could date, on this

Jeffrey Leitzell

Yes, Derrick, this Jeff.

with kind good really focusing So section. that. throughout really started into of whole productivity the strides really in PRB. and good models package there, in a yes, the in we've made there package went deeper out And on a development lot we XX% we last development, our year, Mowry success of We We Mowry that really with with to refine Mowry. the overall geologic good saw had about in uptick

once in in drilling we'll up the on year, package having later accumulate bringing here. moving data, really good ahead be really Niobrara. in we of section to in those So some went enough development operationally, just we look the wells we're and started this there the year and success some and

Obviously, productivity the So little are It's that Powder going as as be there like many results. I a Permian, there's overall focused Powder there. and the lot the a on to the portion bit really to low just comparison scale there. and got got close just acres some we're really south not and But advantages there's basins mean, down of cost It's in to different. in XXX,XXX of and a that. far Permian are F&D up we've

that across got North lot had can we a move some which take wells of we've and from we've the delineation can the and aspect. expansion that learnings we it up acreage So to our Powder,

we about fast but we're returns are aspect, look had returns from strides. to It's teams really it, it. The making the and great as not Basin So really the good what make seeing an we're Permian are on premium really, excited improvements as operational maybe moving on and continuing good play. that

Operator

with The next question Kumar Securities. Nitin from Mizuho

Nitin Kumar

start Bill to help all your in Congrats on over off some the for of about talked the on Thanks years. Want activity the retirement. the have to Ezra, Eagle peers recomplete refrac Ford. and

are players to and a economics? some history just have [indiscernible] and basin I long with on obviously they technology. in others of obviously could thoughts what around and refracs You ask, want compete are new like these the Utica the your

Jeffrey Leitzell

or happening refracs out kind what's portfolio. The what really on either drill inventory to we're across of in that uplift expensive install in I maybe new the much lesser in section poor with productivity do refrac And other actual of I well. We think point was that a refracs, done find multi-basin Jeff. looking out there. then mean you better that get have from and I'd strings. our casing quite that go. is the still from just and kind Mary to offset This you're go new new To existing there's robust pretty long we finger the And crude ahead a technology, from basins. ways and aspect. And for approaches. technology completion go never there's tests some opportunity an obviously our or Yes. a just or our an to additional Hail well thing keep you in that multiple with is where past We've fracs

just right more in potential we the no, have inventory in now, that a lot we So see there. acreage out our existing

drilling we going keep advance the a much an watch is it has a well on new that better eye investment. feel see if technology or refrac and ahead infill application, and an but and will We it well

Nitin Kumar

of you arm. Are talked any to pull you're that from guess lot the starting pretty hearing these Great. exports of demand And see macro I gas a of kind tailwinds directly Mexican gas you as a but today, follow-up, to producer macro the marketing we've a about? from have or some AI demand or about strong

D. Terveen

I you right. But with say lot a arm. reach you're Yes, a the on and have I when front. marketing mean think we I'd still early about Lance. the mean, of it's capability do pretty This us, of AI lot

diversification very talked we with pleased with heard provide things -- flexibility. Ezra price We that and we as control are We pillars we realizations that markets. sync the we that there the talk about [ attractive ] have. you have most need about a even All our reach those the think the the execution into lot

Operator

And our final question Cowen. Deckelbaum TD David comes with from

David Deckelbaum

been laterals cycle innings there? Which we amenable to you do and that's quite longer plays down just to that of to specifically How milers beyond of some you you've on versus to testing just where the as of a the Utica in get the be the about attempting and Utica, into wanted exploration ask development follow-up particularly seems the your think that theoretical fit I over time? cost? even lateral X in in, are life play analogs footage program. in other lengths Sort a

Jeffrey Leitzell

well. We're gains very what And And able Jeff. say statements, about in with the there there. mean, there, date at this X.X I about David, Yes, perfectly. operationally as opening miles. is that we're lateral It's Keith every getting our we're efficiency sets I'll innings see in early better the almost drilled up, to just the Utica his we had longest talked to

to is and to runs have that wells. longer plans Our X program continuing the stay on have consistently no push right can and one and because now of completing not and team really operationally miles, the the just bottom the laterals hole, trip we problems out on we in out do

We've as the operational there. the I'm successes on There's longer able cost continue the drivers. yes, a have, we there looking play be we'll I from to we're limits would we'll as that lot It's other is the per Utica. far got is, we at. will that to continue laterals cost. longer not forward and to in longer I lower the movement have be metric foot drilling other just with So think expect we push as we looking But of

David Deckelbaum

my And final question. that. Appreciate just

year year 'XX sort of capital of along of Just sort you rate increase Or run given you and as beyond? projects infrastructure, think a infrastructure and infrastructure calls are hundred the like out strategic what few this the of the infrastructure is Is side. in as developing this do continue with 'XX other about that feel some you there a intensity that and think currently? How a basis? forward spent some is you number just that as should intensity percentage the about on every steady incremental the million

Ezra Yacob

is this talking David, fixed infrastructure projects, we're Yes, Those about. Ezra. that strategic are the

there. at to to X-year we way reference out that maybe best the look so it, is of that And have scenario kind

but infrastructure return but to a life gives Now not similar seen is environment of very last want in rate going something guidance, it you these assumes could an opportunity offers there not to few do important that's That's But you see macro seeking an can the invest we is that what you as scenario keep potentially there much -- compelling out of when of projects. years. the to the that grab. our the asset. not expansion opportunity a in flow mind, expansion the infrastructure, we're it these flow. about I it's is free forward. And strategic to before when And what what have that's the that when is the margin we've focus maybe highlighted we invest on. in projects, definitely cash and aggressively capital a we is something strategic upfront, And that see really for infrastructure these that And talk that you thing intensity, we cash and and our you thing

the of the we the free So ways margins X-year the that that you one that ways flow scenario, the of And of expanding. lower one in basis to company. cost it's continue cash see

Operator

session. like to Thank you. Yacob. This would call over turn question I concludes the Ezra to the

Ezra Yacob

I'd to the time everyone's wrap to appreciate today. We you. hand over to up. like Thank Billy call

Lloyd Helms

you with enjoyed to Ezra, and you, and in you I truly you remarks, work kind of of thanks the and chance the to meet your have Thank all all past. for

the been a add, to so beside of certainly industry. years. Working me many culture in forward and And in incredible Let with become continued the confidence part daily miss I I to have just people talented past and XX look watching the and memories. company, me while this EOG's I leader leadership success. I've for watching unique be take team And will the interactions, grow and its the blessed to company great

So thank you.

Operator

now concluded. Thank conference presentation. for The attending you you. has today's Thank

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