EOG - Earnings call transcript Q3 2024

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Operator

Good day, everyone, and welcome to EOG Resources Third Quarter 2024 Earnings Results Conference Call.

As a reminder, this call is being recorded.

At this time, for opening remarks and introductions, I would like to turn the call over to Investor Relations Vice President of EOG Resources, Mr. Pearce Hammond. Please go ahead, sir.

Pearce Hammond

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

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

estimates with of potential reporting estimated SEC's as on conference some as potential accordance call resource guidelines. estimated addition, the in may the reserves calculated this include In well reserve not necessarily reserve

morning and Ezra Marketing Chairman Trasko, Lance Financial Participating Midstream. on Ann Vice Operating are Chief Senior Vice Yacob, Terveen, Jeff and the Exploration and President, Leitzell, Officer; Senior Janssen, Keith and Officer; Chief Production; this President, call CEO;

Ezra. Here's

Ezra Yacob

of committed XXX% you more cash Good to and dividend repurchases, regular everyone, Pearce. billion directly rate debt while share including XX%. paid adjusted income. the has $X.X in and more than pay shareholders more net than all both special $XX or through our joining indirectly and than increased We've flow EOG and thank Thanks, Since and us. to regular dividends reducing billion end $XX morning, billion free XXXX, generated for of $XX billion

income generated discipline, same. the adjusted share flow to of as and strong cash third of free is quarter back costs. billion simply billion gas for operational flow and capital per our employees' operational $X.X expectations we $X.X a has results, the history $X.X quarter opportunistic our and and cash outperformed operating on EOG as natural net financial of and volumes through by on to unit free oil, cash and and of returned NGL repurchases. commitment mix of dividend shareholders consistently We beating excellence more billion a delivering that Led the regular our of well

dividend, share In to yesterday, in addition regular shareholders continued on quarter $X to ability with third in Cash since future dividend to free significant repurchase demonstrated as paying XX generate results our been years been the the efficiency focus forward. authorization our by well our capital the boosting increasing our business confidence cash never in increasing begins by reduced going announcing return of strong commitment our a reflects it shareholders the we of suspended X% our we've confidence to and billion. the cash regular which or one, has our portion as return to flow in and

And of efficiency leveraging we one multiple continue key operating is innovation and both assets. in basins. and the of That to foundational improve our capital across by advantages emerging technology our

transfer between technology basins. We are those through to operational improvements able drive performance to

strategy. completing We to continue at and and additional people time wells equipment further through our capture less are value in fewer operations. we to drilling history, our and efficient any due faster than marketing with

every seeking EOG's the performance first person is sustainable a on business our to focusing because improve each day. business ways it's be to driven culture, and empowering by employee returns

performance and and on finish in as with our creation our combined our ourselves for ongoing us XXXX Our sustainable the culture competitive is XXXX. value gives we cycles, through advantage position confidence focus

capital but balancing our to employed on begins generation, investment return long-term In XXXX and return with commentary a capital moment, our early discipline, always capital flow free Jeff will on provide and of program, short- some cash shareholders. strategy capital

are we operating. We remains also which consider the And environment overall macro dynamic. environment currently, the macro in

inventory demand and showing are growth moderate both Oil year-over-year. below supply with the average levels X-year

into first demand slower finish gains We XXXX. strong seasonally continue rigs drilled anticipate a to U.S. year industry, of of grounded lower active with uncompleted the while we quarter another across and throughout XXXX drilling wells. the liquids Domestically, of expect in lower but efficiency slowing growth the then rest and number increasing

optimistic Regarding driven average of long-term combination increased on North the year in generation. for primarily gas demand outlook American power We moved additional closer in beginning X-year increases by projects and ongoing and and the to increasing coming online natural gas, power inventory discipline LNG XXXX demand a to levels have producer generation. throughout due remain throughout from the

annual we GHG below Finally, a for operations. intensity target highlighting and target consecutive third our our year in row XXXX our rate a commitment a year. or the second at performance environmental leading last the our safe achieved methane month, We below and XXXX achieved XXXX, released emissions sustainability for report percentage for to

the procedures. our to into beyond operating is phase standard deploy and monitoring pilot integrated our learnings pilot storage Our and is methane carbon And operations. in-house stand project and our has to ready progressed capture future operational, solution we

role lowest consistent performance that among continued cost collaborative a and performance report EOG's our environmental investment of the throughout culture but and only and innovation mission playing energy. Our a the safety highlights workforce result future consistent drives be in our performance, our producers technology not to leading sustainability innovative is highest our and emissions year's also significant strong of in return, achieve long-term empowered operations. lowest to and This

financial with Ann Now here's on details performance. our

Ann Janssen

Ezra. create shareholder EOG to continues Thanks, value. long-term

of capital flow and generated During the billion billion expenditures. $X.X billion earned third quarter, of net we cash on $X.X adjusted of free income $X.X

expenditures we expenditures line capital and be about billion. expect $X.X in our capital still to with were forecast, full quarter year Third

quarter disaster quarter balance of weather payments the in Barrel. postponement at events the Hurricane Texas, sheet due first tax to severe certain Cash year is granted temporarily on end until for from relief next including the higher of

realizations quarter also markets access premium of $X.XX per third per delivered and Our and Mcf for $XX.XX oil to exceptional barrel ongoing of price during expand diversify results the to natural gas. U.S. marketing peer-leading strategy our with

paid quarter. we $XXX a share during dividend shares the and of Finally, $X.XX per repurchased million

commitment exceed in our have XX%. regular cash billion last to XX% shareholders committed flow account $X.X Of of billion year dividend, in complemented only in which fund minimum $X.X full free cash and are through billion cash billion of to generated have annual on also and to Taking regular by $X.X paid we free flow, our $X.X track not return return cash return that was we we of repurchases dividends share of Year-to-date, billion the $X.X but billion, of XXXX was shareholders. into cash $X.X returned quarter. helped year's third to

regular which to the returns to not we our of business our increase commitment announce high delivering fundamental investments proposition. already EOG's the shareholders. high-return is is X% through but The industry Yesterday, better broader consistent for confidence a our value This strength get top-tier a to EOG's what only in increase continues market. our were dividend, to of to reflects pleased execution

to applied the company's foundation and improve future dividend multi-basin sustainable A portfolio is performance. growing efficiency. commitment the in capital cash we indicator continue throughout Efficiencies EOG's its believe sustainably technology and return best the of of our regular confidence our remains

a billion approved repurchase supplement In the of authorization addition on Board $X.X in quarter the to to remaining the billion as our $X the increase, dividend increase authorization share end.

shareholders. our return commitment retains billion to $X.X capacity our deliver cash flexibility on to total The buyback

financial complement regular monitor EOG's of last and step continue will the buybacks strength Over the we opportunities favored several repurchase the the to in market quarters, our dividend of sheet we underpins and a to the strategic balance year. for have and remains remainder for to priority. company shares the

this an we industry long-term forward, sheet intend $XX structure balance value. capital believe capital and such prudent debt-to-EBITDA To will less ratio to We going for Xx optimize at equals position a our EOG's efficient shareholder deliver cyclical total commitment support to that structure our our that than WTI. is

debt maturities debt we at to $X a XX anticipate balance in increasing what to structure, to our to balance billion managing the toward and levels our cash months debt to for As cash this maintaining capacity $X have billion years. more result, return last carried our similar By X next and capital increasing we refinancing are we to the range efficient XX our shareholders. upcoming levels

to results. Jeff review operating here's Now

Jeffrey Leitzell

thanks advancements consistent across improvement and on multi-basin delivered our execution per innovation, our operating portfolio. focus unit another Thanks, quarter, cash and continued operational their quarter to expectations. technology beat volumes is our control We Ann. employees through and Their third costs outstanding why

maximum pump unique new approximately completion pumping completion of performance. better The and team rates design flexibility characteristics to average. pumping times is the Oil rate the benefit provides from to twofold: volumes Higher our by target. beat every on better-than-expected we our forecast geological primarily our tailor each wells, high-intensity due Faster to with around improvement capacity driven well continuous frac increased have designs. fleet per XX% Year-over-year, productivity by our

stimulated due to additional for in helped reservoir, stronger rock improvements the in offset volume faster times, these than combined more improved has turn, with performance in have pumping pump the increased This, to the cost Efficiency rates. well well maximize performance. resulting

are result raising full volume we performance As quarter once beats, guidance. again a third year of

day. XXX increased standard by feet oil day XX and gas by Our gas by barrels million natural per per production has natural liquids X,XXX cubic midpoint per day, barrels

than cash also our workover now per per have and forecasted savings. lease The to lower quarter. reduced operating expense accordingly. third less expense be fuel beat drivers during due cost and expect operating the year We lower primary cash to unit were unit targets operating guidance cost We full

expenditures differences operations. in to with capital line minor quarter with timing in our the primarily Our forecast due only third of were

the in by X% a had out in well In primarily cost of decrease addition, deflation X% we start well as resulting cost. efficiencies playing year, driven to forecasted the year-over-year at is

unchanged at full our As year for billion a expectations the at $X.X midpoint. remain CapEx result,

of replicated of this are technology expanding in driving laterals and motor and and in-house year we area transfer. one Two multiple efficiencies portfolio our this the operating innovation, Ideas through year across our born The our extended examples demonstrate to efficiency portfolio continue are value gains multi-basin decentralized basins program. structure. realize through

Average more new Delaware Ford lateral than XX. XX lateral We've X-mile for original Texas. now lengths not of only our of program Eagle to the length record drilling in this all EOG for drill we to to continued set In the but compared forecast our increase. expect year a also laterals Basin, for domestic

in Aspen XH a A length drilled has western acreage our was of XX,XXX over feet. well lateral Our and

on focused equipment highlighted moving time we downtime drilling drill. for surface, longer downhole quarter, allow laterals more on time less to in and days decreasing As overall last

in-house from that our might addition, new EOG's laterals continues economic thresholds. meet not to longer unlock otherwise In acreage help motor dividends. program also potential pay

the the in drilling Basin, the and Spring we shallower motors Delaware formations. limits our Leonard Bone of Shale are In testing

runs motor a drill we operation which While of to as with of of the one. portions lateral hole pull and and replace in wellbore X a requires out with trips, much the curve Historically, X section, drilling a a the pause drilling attempt minimum vertical production X and this wellbore run. to the it of motor motor new is

per As in we X eliminated well shallower over Delaware a have full result, Basin trip targets. the

Given to created. add more, continues or gains the each the one better the designed cost just significant This value several drilling from and value using trip EOG program. motors examples Motor is that efficiency can our of cost of has higher-quality $XXX,XXX savings to program

start our we motor the of by drilled rental footage since run company-wide Looking third-party versus per over increased have options. XX% XXXX,

upside to as continue multi-basin learn our expand to we drilling our substantial throughout motors see we test, performance innovation our drilling and future motor portfolio. we As redesign

play quality X for oil progress oil to now X producing online over performance we've window volatile meet the well In delineation play. or significant XXX and than this transitioning into and liquids this demonstrating from XXX,XXX year development. made Utica of exceed We more have premium the acres which net in of producing continues the packages expectations the Ohio, been Both have days, days. XXX of

through and capturing We continuous are operational also pad sustainable multi-well efficiencies operations. development

make an side, to ideal gains quickly. significant the provides On drilling Utica the environment operational

have drill drilling year-over-year drilling single than X-mile to X have of day. laterals a days and decreased We miles more already record a achieved XX% in

nearly the in XX% significant a compared completed last lateral day We on increase feet gains also side, completion achieving made to per year. have

continue development will of well our in and Utica costs the effective oil the we in anticipate be of treated equivalent. foot the lateral than $XXX primarily per $X activity focused cost $X average window, oil where range barrel per years, less to few next in costs the will to with Over volatile finding

increase XX% a activity to leverage we of economies anticipate to consistent operations we Utica additional XXXX, scale. achieve in For continue as

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

activity however, we capture We XXXX activity and shifts with continued between do, outstanding significantly we Previewing basins have another expect increase the a this year. next the see need company-wide, performance with to while a adjust Dorado of performance appreciate. of with technological year delivered continue activity in do our minor year, in very managing to us in our Utica not a This shareholders scale these and financial will emerging allow understanding and economies our the actively across advance that to our X-rig program. assets operational of investment plays delivering some

wrap Ezra to here's up. Now

Ezra Yacob

Thanks, company. share strategy anniversary things our Jeff. EOG's independently industry, our XXth and EOG commitment value for recently our have an to changed public has consistent. remained as fundamental celebrated many while creating And traded shareholders across

First, begins our regular across flow through commitment growing our balance pristine with returns to delivering and support the support maintaining sustainable a dividend. improvement generating a a cycle, pace capital free sheet discipline at reinvestment assets continuous to cash to

and to exploration in-house and cost drive technology to Second, maintain low-cost, our diversification a materials focus operational to technical performance multi-basin on being margin a leverage expertise control, we We product, high-quality balanced in mover a execution approach information begins geographic to strong drive self-sourced and pricing help and proprietary well inventory. expansion. with first

Third, safe we are committed leading stakeholder operations, engagement. performance and environmental to

Our stewardship. environmental overall progress as on well our emissions highlights sustainability reduction as report pathway

culture organization real-time our teams employees. utilizing hands advantage. finally, and data drive level take decision-making. the collaborative field the at multidisciplinary is creation that in places collection in A pride our value our asset decentralized our the drive and of And technology We our in to nonbureaucratic innovation, each of competitive

Thanks for listening.

go Q&A. Now we to will

Operator

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

Stephen Richardson

mean look the wonder also Should the redeploying kind just balance shareholder would we you'll above This the coming sheet. above around then -- optimization we cash, And about the if time talk I that couple you knock-on that the wrinkle sustainably new of for maturities? you this debt at into about was Maybe of And this please? at quarters. existing of with you're that that think that wondering from is adding And a that the to you the be of buyback? taking start about could how time concurrent assuming as is when refi that, gross if could incremental the frame just look company. $X do frame? I does commitment looking minimum returns next talk billion

Ezra Yacob

Steve. more a into and a we've question. that for respectful us decision about get to to absolute for a to our never our cyclical debt our efficient. We're of Ultimately, aimed really that a we're the side. has moving the been industry. talked that's of move of to is capital Yes, size the structure designed being strength, is Thanks debt at always allow appropriate the in pretty The level just consistent making to debt. move X been goal still more more equity company We've company

than more now has XX it bonds a looks And is we timing next right so couple really, pretty of the the a last few favorable looking months. in little quarters. as market the The into to good have maturity XX coming in

about, leverage a we Ann target at -- mentioned, to debt as our out step so is a $XX as if EBITDA at that this And you debt range. as keep ratio billion to approximately calculate talked will into $X our $X be to WTI, billion than less total Xx which we

so up right, cash. free some And additional you're will that

the that that But to months in and cash in we'll XXX% commitment kind position we to I be reaching what next yes, is frame, XXX% XX share return target with these not exceed next frankly, really, I a the opportunistic other be on only to XX% repurchases, for look time also market, than and definitely XX-month of in more time in free would the the of XX imply out near a it on put is, want to at term, the the shareholders. to closer to of but does the And more than specific bonds. of flow times, look be quite timing

Stephen Richardson

allocation. on If capital strong gas. could a Really just great. maybe That's choice natural I follow-up

dry on and looks. program the off comments real the with finishing, arguably here. some demand you the the how outlook gas in X-rig opportunities cost appreciate a asset the Verde lowest got XX, have as but top gas for pipeline market mentioned I optimistic You the you've natural

should you're there, for the think gas that of how you are curve what more to So we about arguably end curve and the signal contango America? apply the low cost capital looking the at in North of

Ezra Yacob

for Yes, costs are Steve, the that's already around another We've Dorado. great that question operating asset. highlighted $X quarter that last cash on right

And X% we cost we're do about. gas inventory, American warm in average is to quickly. And But but only the of above which Verde online said, that still. see North way, industry as appear the But there does very positioned. it's will projects whether it U.S. of X-year it's volumes, about the with also not pretty winter. so natural cold, be either the consider likely some is come online, DUCs the all to very one or and happens gas gas currently we'll what curtailed you excited well lowest have is some

-- 'XX. from we then point. is we what construction somewhat that's a of is years going the beyond to -- is above almost to online we an in in North actually the calculated XX online another decade, day now growth with as exports, and a coal end and power day retirements. XX that's power demand think not with driven 'XX, so last also to that time we 'XX, be a and should little and electrification, industrial, online by but see Bcf really X with demand line XX for come coming this under of really really American for LNG demand come that, to And LNG some but beginning where about in power then of when Bcf And it's Mexico new we've it's that see about XX that, demand frame. power gas only bit AI and associated the really, And and inflection between demand, been XXXX

with our unconventional Dorado about, years at last starts economies some a so pace And where And talked X-rig been X the to a we'd excited of as up open in these scale, that. and we've spread. for is in the invest go really plays the But which to very kind completion Jeff get program. critical of market we're asset goal can us, to there. to continue can to The about where as we to point captured a like the capture has increase we is of continuous that next

Operator

our come from And LLC. Securities will JPMorgan next today Jayaram Arun question with

Arun Jayaram

was could between puts of and capital. activity I if mentioned relatively but about basins. wondering some you Ezra, expect run talk in flattish we Jeff the that terms takes with XXXX movements to

So I was move. how of you wondering capital could if kind characterize would

more bit to at that the going the there's down a think obviously little some efficiency on going You're was active year-over-year strategic spend Jeff of infrastructure we a and your basis, Dorado, in be gains highlighting. Utica is think, go I to

Jeffrey Leitzell

Yes. question. this for Jeff. Arun, is Thanks Yes, the

wells in talked about fairly activity be shifts, you modest relatively our increase small. early, immaterial and is minor maintain about, the there is mean comments, they're next a still and as I we going across in the we portfolio, here talked which to which pretty the year. mean, to Utica. lead will I right and few yes, those So the flat talked activity now, plan about in opening to

what frac maximize to And we're first focusing to efficiencies, and them getting the portfolio really, across step seen and going level just that. those really it is that now that plays to emerging And the the critical in is I'd want to progress then whole focus about happy the improvements the extremely really we we're where rig. which getting next is fleet. we've first the made. full is to plays at getting X to we've by levels on And at, our our the with X we're activity on current say So program drilling full really hurdle activity be

a should be X to rigs XX% we've So up on, fleet looking year. increase activity. in and there as be the We're frac touched in We'll we next at full full X Utica, by about year-end.

move So which consistent investments And gas about just manage really But We've operations. running. activity from performance reach anticipate that talk through watch outstanding we the points. the X been in Dorado, been those winter. we'll the you our rig just the to then critical natural in we've seeing continue and full that and completion as we'll maintaining we efficiencies market

So able of this all the to I we'll be think deliver this, by but plays emerging from to of really us still continue strong another those year to one allows progress each doing results portfolio.

on real infrastructure. then quick And just

You did hit it. on

and plant Verde looking few pipeline. last be And Over infrastructure we little aspect facilities little the of few the was had additional was we're XXXX, around year, This years, up -- a bit really, to $XXX just gas a strategic the that it the to finishing we've million. pipeline. with forward on spend and Janus Janus a going that from Verde things plant

strategic the moving million. And that XX% be to expect level. we $XXX and we'll indirect the those to So somewhere continue off as of we roll then future, XX% to start in look next around towards kind back there year spend

Arun Jayaram

of helpful. to the Maybe Got just Steve's the optimization follow-up question on sheet. That's balance it. a

billion maybe A&D $X bolt-ons, of to How countercyclical A&D? does terms much that could to How that higher do terms thinking billion drive this of mentioned going to progress Azure debt? You the gross to cash investors. your $X of did returns in in or potential

Ezra Yacob

Arun, I you're Yes, think I Yes, this Ezra. is mean, right.

the in low-cost to same invest that for ability to lines. to give to done preserve be going preserve still the While property And our countercyclic, be structure quite have to those us the making That other we in of positioned what to going -- more we're continue strength efficient, bolt-ons, us. leading that will ability to the consider industry's it's maintain frankly. we've business past financial well balance capital the still does things very along sheet, we'll going

deliver annual ability some cash return would term free just again, the more Where of, effect of side, be the today near an really execute shareholders up a even side. what equity continue more XXX% than to to puts and flow in it the great to into I time, cash position debt to of And leveraging that on over is the it's to say this our a such position still we're positive able strength starting lot cash us priorities. on a a of at is with position debt of in shifting

I bolt-ons in be said, property Like including to opportunity able to the be position if step opportunistically to a presents low-cost into larger repurchases share itself.

And I so of that that of the like we a we just maneuver some as very this really doing. market. shareholder-friendly in do the we're it see maturing. and of bonds kind the timing really the said, what have fact And see is we

Operator

our RBC next Scott Capital from with will Hanold And come today question Markets.

Scott Hanold

optimization. And you just a what see to going of sector. definitely balance on moving the now. to much of a like cost also I'm improvement to unique question that, to It's been answered Kind of like of why hit now? capital to you regards there structure And shifting this much equity just with some And to from How expect debt, how that move a from to catalyst that? do from the value value. Ezra, creation part was sheet lower respect some was for it value decision of to And on sort kind the the time. my you've with curious, of contemplating

Ezra Yacob

this Yes, is Scott, again. Ezra

off get and a that pretty to I then hand level. I But yes, long been create about the little goal to talking to we started never really, different really Steve, company like of with abilities bit the more that. Ann board absolute to consistent positioned been we've mechanics. has for value do I an measures, with But long-term the strategic time Q&A debt has and X in of different having be maybe think as over thinking shareholder to to I'll the to management and mentioned been I on the where a So this line is the in portion, session think go

that mentioned us should in One thing love gives and that sheet the that having regular have dividend. Arun that confidence this I that when pristine with dividend we continue about just to balance leading also maintain is And to have. speaking grow peer able being that we

remarks, suspend in it's something XX As that without dividend opening about. it I very been said that's my And proud paying or we're been ever cut that to years we've needing it.

look were at the thinking we this. our we of cash entire when priority So really flows about

the And is caused from we're the in that's trigger and again, side. just really commodity now environment. it macro the the but right from financial at not side, where

If banking crisis retired we like the X bond $X.X in bond that turned was decision be a rather you that at were XXXX. small the a something out at Scott, us, all only not the interest is the that recall, rates reasons -- what was time, felt of maybe larger. billion last balloon about climbing at time. But we right somewhat back possibly it as recall, of into QX And for the time there could a was to but

or that -- hand. off I'm So we refinanced we that with cash on sorry, paid

climbing until quarters interest things where to starting the of up of And always over kind them see been have bend have couple recent a little plateaued, bit. last essentially, then, we're since rates and

really those make So this ahead that of are the confidence kind the now. of go given things decision kind have to us and

the side onto as the As that moving impact I'll off to debt the for Ann. hand and far equity us,

Ann Janssen

than we sheet The balance structure debt today. has one Yes. capital is we optimal more it what the at have is way the where look

point So in the on this debt looking more in of cyclical appropriate of at putting that size industry. basically, and a we're is level strength for our our company

first, mentioned, less leverage yield compute us at parameters of And a that at we as you billion So around total to prices those if debt level out, to if bottom to cycle than ratio you debt-to-EBITDA $X approximate Xx gives that billion. want be about look total $XX. we of wanted $X

X if we've the the Conversely, the to appropriate currently you allows the years. we We return minimum of level basis. support we cash additional business, side of And last the in think us and look cash, look about advantage business as as that of regular then cash held level that's $X of cash countercyclical the take about a additional need billion daily at the at a to cash as well backstop those on run for dividend opportunities.

up again, they run objective comments, those as will level us is for way we our just are, regular of the and And value appropriate cash setting the sheet Ezra's to shareholders. backs investments our balance we to through So to up business, present the create have main echoing make better dividend long-term our think to cycle. position an themselves continue the

Scott Hanold

follow-up on My this election. to at lot potential and is your look the kind the specifically volatility certainly play? of EOG. little bit And a and in means you are tailwinds markets. for what of the What at created energy outcomes have some industry as of Understood. the The initial a takeaways

Ezra Yacob

Scott. Congress to see still X kind obviously, to and of the who's close finishes -- we'll presidential portions Yes, those after of you then house got our control that. We getting the and going Senate where is the up can see

to really can the there's this is think what time take we next us, for just kind maybe to Whenever period I administration, we months. start steps really for focus change things in of couple when in, this some a is down. of of prepare case slow prepare

very where with at we're good we're right now. feeling So

very a far and industry local working level, forward only the but our as long I on alongside industry relationship we've with is like good has the come As way in with directly industry, speak the at level, far really areas had such. really think as the spot I areas that think in little federal the in at operate, performance play, the relationship. When developed And I we've a more as I the regulators we a going years. EOG know even policymakers, to but new not Utica for that over can the few continue an our outstanding last Ohio the

to of way are -- really that oil the across are emissions of of kind with see in I of to there energy to is think low along the type just that part reliable policymakers, lower and and and long-term energy -- is going many stakeholders, working the sources. achieve long industry best general, industry solution. really that goals play gas play a going natural the a cost,

Operator

next will with our Leo come Mariani today from And ROTH. question

Leo Mariani

just to base Utica here the again. on little touch a Wanted bit

talked to you $X curious, So BOE. guys $X just a about

that the was to the you costs there's think oil well. talked think that BOE get of you a of window. kind about may think guys as to have included room I volatile Do I but to I have exclusive down some goal finding know cost, of windows long-term over gassier time? continue

in in Utica? cycle take down? at think to there's still you cost you the where significant do that the So And are room

Keith Trasko

XXX,XXX the Yes, the cost Leo, window represents the range. for expectations acres cost specific the oil well volatile this is is range development. X the we to the and next of to Keith. The net X same yes, right. there. It That's range, finding you're have for years The

we'll this continue If multiple on range out our of the some times, science upper it and scale. with hit down the you end to economies drive back we've of wells, of early

Versus window disclosed, the development. reflects includes down-dip field and XXX,XXX we that costs It full field. condensate updip the $X oil finding That the window. previously also the acre incorporates entire

we well to quality giving premium the cost guidance doing So still and more is in we've line demonstrate continue our and exploration term. to here great sight strategy. that, Overall, we're what made the progress play, highlights really it in but productivity organic see near the of well the

Leo Mariani

terms a kind there been are of I little I against did this year side last of than that. year. time viewing it in Okay. was of Appreciate any well on less others? bit on you're to since And doing feel How on stacks the that. a update up wanted think it's kind we've see you how PRB. the little if play like you heard that

about talked You bit in of adding little the for a Utica XXXX. activity

in of the of Just and update how future any is levels kind how you're thinking about performing activity PRB there? of kind terms

Jeffrey Leitzell

is Yes, Jeff. Leo, this

So yes, is powder the progressing nicely.

the and on As plans are and really really the of been focused geologic it. the is what handful past formation, we've deeper kind Mowry we've which development talked success lining with for years, good out our our of really model formation we and there, had about

the to this doing and a we've we're the between more year gotten in Niobrara where geologic So split XX split data since all overlying wells really about shifted Niobrara. the over program of that

completion to there. year, diabera now, would what refine some first and continuing our right those mean, the brought they're say And the geologic models I of the is on of up encouraging. the very early new through we've techniques we're part I but And applied And we wells. are results very

the XX% probably seeing Niobrara. are versus XXXX than in about We in increase uptick of productivity an greater

right moving and and kind there our a depletion we're development just when now, to in So think comfortable Niobrara patterns to still little spot. have learn offset the in I of in We very forward space. and

program so those continue refine into probably I with to XXXX move be consistent And we're going we our to as models. pretty we as think

Operator

our And America. Bank will today come Kalei from question of Akamine next with

Kaleinoheaokealaula Akamine

My is question gas guide. first the on

appreciate wondering seen Janus midstream that's time coming that, lines? year, we've your Permian. that gas and plant go if development outperformance But that it single So additional up we any is quarter this the forward every I'm of the think I pulls online.

Jeffrey Leitzell

Yes, and as Kalei, pace we've I this infrastructure secure mean that be far of our is of online I any they're say, mean And as goes. expected. to advancement. time when midstream kind should strategic there projects shouldn't the of Jeff that talked come are pretty I they're any about. on all really, and on or no, plans we

to plant, With year. complete talked that about, the the Janus next as is gas we've plan

have those about that, projects. of associated a in about, there than that, no, million. talked dollars But acceleration bit we as we'll any strategic will really $XXX be other So infrastructure with of no little

Kaleinoheaokealaula Akamine

it. Got

it's very like Dorado. costs. go to appreciate I'd to I that low back my got For follow-up, cash

by $X.XX talked the Verde. falling I that $X, of past, because to think $X.XX in we've about and

a on there of production that going given maybe cause cost that to or going to production a quite curtail you to you question be do coast, I its is resilient And consider sort that imagine around Or figure? think it's threshold position the you would play. cash that return are to optimize is, My maybe decelerate?

Ezra Yacob

especially Dorado, And center its Yes, gas economics with Are is of it quite coupled play the returns we marketing profile. dry frankly, side we've competes of Dorado, we way close on the there basins, our is oil perspective asset. the we the an with plays. strategic the at that this what in Kalei, we location invest similar with NPV in decisions any this and optimize the to investing been demand of and to some with quite right that of the ultimate the returns really look the that at starts from Dorado, to is our frankly, pace Ezra. many found able make to way

really And we governs what invest play. that how so that's quickly into that

of these we've unconventional with lower these the these like resources to On of try about emerging talked points to you of scale. capture economies the and assets, we any as or critical level, get where

first So the is rigs. consistent

really consistent to mobilizing learnings. gives a The not second equipment like of things ability point would and working crews the start that. can It spread leverage and you're completion you're be that to where in with the you the and a know basin, lot the you of out and really crew

it's to a of macro then it, top each bit of you is better, your well end of or upper the cost performance. your there the On well that, each on investment and on learn little layered And and ability environment. outrun make whether finding well pace definitely can obviously,

It's outlets Gulf and a positioned said. strategically it's the well Dorado gas done that great allowing to reach Coast with multiple we've Now by we job got like multiple markets. along

that we the an significant And to grow the it to portion that demand. future of into be And gas inherent growing deliver bring supply a so will that that think should gas. to opportunity American does North it continue

Operator

come question from Dingmann with next Neal our Truist. And will today

Neal Dingmann

thoughts on about play? the hoping are more you're on more wells or to the specifically. oil And hear decline? prospectivity in thinking Marcellus just I'm latest well? the west one it's one I'd declining wells know oil gas that love question wondering I then on of oil I'm in the the typical I on just Utica What's but play, another how either this a the other side play. can black ask on like your volatile still the or just these like latest early,

Keith Trasko

Keith. Yes. is This is this

oil mainly focused we prospectivity still are to trying overall, the on window the volatile down and spacing On there. dial

to up the side jump in eventually also window the there. still point. to will -- at data-gathering west the some We're phase the We to condensate or

the the Ford. anything the Eagle we the and not On ordinary. side, like out a tight to well of see say It's typical I'd declines shale seeing a decline we're play, combo similar

Neal Dingmann

it. Got

Okay.

your the second just previously maybe I'm overall appendix. longer follow-up just one, Okay. I just the wondering, slides inventory. well put in in like then And I'm you understand count out had on Bakken ballpark was or sense no a a -- the current running years many of I in wondering hoping give a at a maybe you're about rig Ford you specifically thinking room the could of Del, how Eagle paces. and just

Ezra Yacob

it's are -- to that portfolio. do Yes, barrels but resource mix kind ones foundational far across resource of our XX of this about disclose continued aspects. all Ezra. kind -- highlighting different Neal, resource the collection What at legacy got they're got is of you're as the equivalents we've an that multi-basin those and -- are we've a plays, of The is premium interesting you've of because we show billion potential in as

at program, that of a Bakken, we're number the that to a So we X-rig do continue we and we to in run for feel generate where can and similar years come. basically point a returns

Eagle we've COVID, like put the far plays again, Ford, these maybe Kalei every year something seen the that's we Ford, Eagle kind a we've the as the the think we sales many has expanded Eagle these the have investment, margin less or And say, we remaining, it's post Ford, right profile, the in where increased was focus speaking wells our returns at the with to in it's that as just of the In about actually in sales things pace. and and about that. there that that thing and Slowing down about I of really I each what more on. and inventory down for changed days, the of investment have everyone XXX better pace down lack of slowing data point, slowed until of pre-COVID that investing

it's the Industry technology Basin of additional decade. mention of advancements, over then done Basin, difficult. continues Delaware past I the course, I in be think unlock the one year. Delaware lot I with that last the a And Basin, Delaware drilling unlock would especially side, the industry every honest on is with targets But think the to has there to

And so Basin. Delaware difficult bit a a such much honest, just in as left be the little inventory quite be it's resource how to robust would to quantify

talking You're that saturated of worth gas a literally about reservoirs basin. in miles and oil

premium Utica. the now, we very our is pace the looks that deep high-quality, couple something inventory last about right good one driven is lack success What of continue for which very assets that years that We've the inventory of got have efforts look that's makes inventory at the macro to is that through in multiple ever the improving and resource we we're really organic not we across And of of the in environment really the bench basins. feel our where we operating is so of there really very exploration And in radar. place. the quality things a

Operator

Rice. And Charles with come Meade Johnson our from will today next question

Charles Meade

spoke a But And you about bit your commodity on with wonder the U.S. I picture. kind go to share macro. prepared gave your to I if supply you of the wanted back could thought is to a outcomes you that's understanding us just of that get more of your of informing approach prediction, thinking for we're point specific And an possible of the view looking your range trying but 'XX? on what for to 'XX? not comments,

Ezra Yacob

background Yes, that. little Charles, a more let me give you on

build operationally you know things best, of are the guys As start which we internally kind the know, models. with We that our field. in we

sorry, XXX,XXX. liquids I'm kind the the about that, And to maybe million Last around for our like driving think half growth. year, just it's XXXX, it's of right historical U.S. I more barrels was And about or is year, going X.X looking of that U.S. this be thing so numbers. biggest

we number little XXXX, off a in the see even that, so of that bit less And moderated for growth than U.S.

it now. on And where uncompleted but at hasn't it are a at. moved low. the where those begins rig levels the of really are relatively are count really drilled count side, And hasn't rig just moved. oily and really well the in rig year with Both about counts The

really that's for informing thing year-over-year the slightly growth And in expectation that's U.S. the so less our biggest

Charles Meade

Got XXXX went give our could a or program? Got rundown [indiscernible] or of how you then us quick And it. it. how

Ezra Yacob

there. Charles, was up didn't I what broke sorry, that. How or I'm it? -- you catch when

Charles Meade

Australia well. the Beehive,

Ezra Yacob

Yes, sir. Yes, Jeff?

Jeffrey Leitzell

Charles, Yes. is Jeff. Yes. this

So testing we and The next excited plan is have the really to secured be we're to the permit prospect. there, it test year.

markets, obviously, there. a It's and Australia. of structure untested prospect. large on So oil really an it's to close it's It's Shelf the there Northwest

So Trinidad. prospect similar out depth the I thing in is say, really water a very it's environment, is that's I'd and that should point operations, the

be really we to all water that So able we'll that there. expertise leverage shallow have

right So next go at got we've prospect and test in and now, to time this team that sometime ahead we're a there place year. excited in Australia,

Operator

will question Citigroup. Gruber our Scott with come next today from And

Scott Gruber

have 'XX. mentioned consistent for activity guys largely keeping You

X% should about some kind similar up a at be that for then exit be of macro the concerns the we figure will obviously, volumes on oil there's And 'XX? number this expecting a Is year-on-year Your side. year.

would back production? to a to you wonder flattish on more Just of curious, look trend just conditions ensure dial your oil what activity

Ezra Yacob

-- capital our you want I per it's number. a is the growing about more not said, talked aggressively activity really a right mean per months, with you don't that certainly allocation grown output about XX with we've And XXX,XXX could investment barrel for there way it company growth what which It to soft. pretty Like about of we really of as It's really in to begin grow that we're it's oil think go much it. today kind think ahead on highlighted, I of we've of not you mean to can we're day oil last doesn't count about this is point similar now. we something the talk day, strategy. levels. focus but Ezra. an I really XX,XXX barrels on our that is this at Scott, ready I a think percentage is Yes, XXXX, and on if

that's for the NPV, and long return in really disciplined the reductions us. cash comments, that invest in really shareholders. best invest about cash you we focus as what frankly, should pace we quite investment we both and our it the But strategy. today, to when realize cost you we've the balance in And that when and to what of short start really flow focus can opening plays, the the improvement each highlighted our efficiencies, at returns, right on operational is how to so of Jeff generation we free talked you that's correct his That's expect performance term get

are first think return half we foundational just results came exceptional our our back to The production shareholders. about in XX% the success the investment we of of I our Delaware aggregate Eagle way their that investment the of portfolio, X. X plays. year months those through to XXXX, the across that first and the we're free the are we've capital in managing paid the this by think are the how wells, actually July that because able When in in types And results manage in cash the year, flowing wells Ford that straight to alone, been of on shareholders flow that and Basin seeing

we it. that approach really the way that's So

increase activity our as or to far we scenario level. dramatically As do what something flexibility different, do either slow we would have the down

little provides a we year, of invested performance it you similar levels put type $XX to bit $XX at we a the don't what expect about of that -- have it want that if today. we're some to call of to range scenarios scenario, out and guidance, it this could between We X-year I but at gives financial the which beginning talking

even you growth where is the free share, include any scenario got think, at repurchases. which per flow it's see can a investment And we've case, I flow compelling cash doesn't reinvestment cash low and very a rate X%, $XX share a

double-digit You're to well. repurchases and cash XX% flow special support to but free opportunistic not our free or excess dividend, cash additional only generation, a either talking support about as dividends ROCE XX% flow regular share to

Scott Gruber

a capture follow-up carbon I appreciate had your initiative. all that color. on I

you to speak up and confined to third-party projects projects? you Or doing these additional projects? in consider would interest project internal would pilot and can running, your the be With

Ezra Yacob

our be about a just I Yes, to pilot project, opening. piece that, and evaluated business. our are question. deploy of as gathering we help now, Scott, And for kept starting focus across might had that technology. that's real much develop look we to something party internal it's our as to the talked a we and Right where far really standard just our capture and that we've on other of at usually for looked with things, good more into the success looking But value better projects view We've the most as is portfolio technology that. able we carbon it. inside. operations our it storage briefly And opportunities in good of like third something or But turning as at like

Operator

Pickering Our MacCurdy next question Energy will Kevin today come from Partners. with

Kevin MacCurdy

your you plan even dynamic how should safety plan is you you appreciating downside managing EBITDA the it a a is free leverage would on market be net debt like you higher the Would cash to of have time, the production a reconsideration more higher percentage and flow to you to structure. grows keep the net returning of margins keep better on future, a do on that As target. if in think position? structure? with your moves capital that I seems over question My of capital

Ann Janssen

in We're Kevin, place it's a good Ann. We're now.

debt We cash has flexibility carry want to the have some and of the of level we strong we to carry amount balance that it. such a sheet want built into

of it. the So good side that's

to want So free our cash cash how with as are how to return flow, going in at flow. looking we we're stay we're and that fundamentals free what to our line return

cash how look just the to cash balance priorities want how schedule have at the and sheet on We we we shareholders. that on return to

comfortable we to to at have what business based as needs that's the of forward the on business again, going components, move And makes for flexibility managing if we at debt and sense as a want will the debt time. lot But level, in far what we the level are a those the we're higher carry, time.

Kevin MacCurdy

up a the you here Yes. you mentioned color of the it seems potentially significant like of I most but you've shareholder Do any structure your is, follow-up future. on cost property see the opportunities kind sheet where for set what the even that? this percentage mean for of I part which is benefit, you balance return the guess low-cost avoided near-term could low threshold my higher as plans. in between in dollar you returns bolt-on bolt-ons you have and And past? highlighted M&A,

Ezra Yacob

what really everybody knows defined, one as acquisition. a the Kevin, I is not corporate a about significant driver. good bolt-on that. it M&A I end, this we think think on significant Ezra. Yes, of That's far would on value something It be. property as think and is like low-cost Really, would a question. the magnitude I merger It's be way the or mean,

high that's so upside best it drilled look for. PDP really with is we to on answer low maybe acreage And way the what is

honest, return, erode big acreage paying margins, the quality additive emerging assets, going perfectly play and quality odds that, it's of wellhead undrilled a if your because for be of be on a to your be going premium that's upside not to in high rates you're acreage to to that margins. but buying And comes our you're going and to that's cycle known on full inventory, are of typically your long-term

on. look we what really that's So

have and where way in not others. by we tend we you're gets a think what the far often out inventory as opportunities quality maybe kind that that our of assets, I this when And just emerging capital that building also that. we with you ability some as that of our more value unlock to opportunities speaks structure. long-term where think you we were long identify the improve continuing return again, and those with way benefit than think Typically, to just bypassed because, the to And goes find to of implying inventory, about -- the are potentially the for at

flow. XX to our of cash those, we've quite years from the as commitment to As percentage return exceeding last confidence just -- emerging more our XX% year have in down frankly, of those come the cash XX% last couple fruition, year plays you've is seen, in making at below and this we've to increased around basically XX% the free and or of gained

from performance, performance. the what flows So strength the that's to of the business operational ultimately improves as the overall through financial

Operator

closing Ezra This Mr. for remarks. will over turn the any to Yacob session. would conclude like conference our back I to question-and-answer

Ezra Yacob

say shareholders. thanks special time our to quarter. today. everyone's you just support thank another appreciate We for employees to for want our your I exceptional to and delivering

Operator

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

now You disconnect. may

EOG Resources (EOG) 8 Nov 242024 Q3 Earnings call transcript