EOG - Earnings call transcript Q4 2024

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Operator

Good day, everyone, and welcome to EOG Resources Fourth Quarter and Full Year 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 the Investor Relations Vice President of EOG Resources, Mr. Pearce Hammond. sir. ahead, go Please

Pearce Hammond

and Fourth for Call. Quarter morning, the us EOG Resources XXXX thank Good joining you for Yes. Earnings Conference

Relations available during today's An to A replay and has presentation call discussion. website will section will beginning this Investor today. be we slides updated website, our of certain been reference of our on investor the posted later

those that in this SEC conference may forward-looking release differ call could Factors cause and historical reminder, statements. to earnings our contain non-GAAP a also been As materially filings. have financial forward-looking from our statements the call outlined measures. results actual includes certain forward-looking This in conference EOG's and

be the EOG's found section of Definitions Relations on measures reconciliation and for can these Investor website. schedules non-GAAP discussion and related

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

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

Here's Ezra.

Ezra Yacob

and everyone, morning, for Good you Pearce. Thanks, us. joining thank

of of proposition execution were forecast XXXX our production EOG's consistent exceeded original target. Oil delivered outstanding another value and year performance. our company expenditures total while on capital

and of dividend And of the capital our finally, in are and net through dividend a since regular regular peers. And increased year-over-year combination we years average our X%. $X.X costs capital operating a for XX% income adjusted share COVID, free cash average XX% earned flow billion X return outpacing earned on reduced and of repurchases. also cash return an we We returned XX% the our have employed. We on of employed

XXXX, detail deliver XXXX our shareholder moment. forward in in Jeff capital more plan never to been positioned long-term has better will a Looking to EOG value. review

level, returns-focused our in our high year's a discipline, and improvement at is on commitment that assets. last across of investments success continuous plan However, capital builds our supports first, grounded to each

operational proprietary information Second, and operational integrating technology margins. marketing best-in-class and materials to with agreements expand exploration excellence, self-sourced expertise, organic

to our fostering environmental and a a to recognizing leading multidisciplinary decentralized and safe culture, the the by operations decisions is the created And teams fourth, asset technology commitment collaborative organization performance. innovation. and sustainability, utilizing Third, field at drive real-time level in value

that EOG in quality our a and and the and averaging of more after-tax unconventional return equivalent portfolio of is unmatched. bottom direct of than view oil updated oil depth resource gas. natural $X.XX resources earns The potential EOG's of the average $XX holds more among rate cycle pricing using highest of billion barrels XX% diverse than returns industry, on XX our

period and to returns continue payback value cycle evaluate full We on and margins scenarios to price under with present shareholder value. several remaining create half focused returns optimizing net

have realized flow return of delivered capital investment that employed we over to portfolio this are evaluation cash in through is our we free past the of cycle. the and and result The that generation across years on deliver few the strong positioned comprehensive

deliver activity high a return and core top-tier steady while our of which results both decade exceptional company. operating Basin the includes in and a the in than Eagle areas largest Delaware returns at more Ford, assets remain portfolio After of drilling Our assets pace. the

and plays Basin cash to flow success emerging play dry only Texas of Our today Utica but Powder the EOG's contributing free for Combo not gas returns. high are years laying the and Dorado and South generation natural groundwork River future

identify for over high-return the the deliver projects front. we've applying continue domestic to that international on future In our while cost-conscious subsurface of disciplined been is years, portfolio. projects our area remain also culture Trinidad, foundation where to to for with our the Another capitally due investment and extensive operating knowledge to we contributing regional high-return XX compete

and a and were Trinidad successfully X Shallow new new constructed hosted In offshore be by Bid in XXXX, constructed to sanctioned platform, offshore platform new blocks of Ministry Water Round set awarded we Tobago and The the X Energy.

to Also we international the a Bahrain. front, new joint on on excited are begin in venture working

develop to an prospect We Bahrain. a long-term tight Bapco gas explore to partnership beginning the of expect in onshore be this with Energies unconventional and

The technology been formation positive tested using horizontal previously has delivering results.

results drilling enhance We and are and drive horizontal optimistic in with expertise technology competitive domestic completions applying economics will portfolio. our that our

geopolitical Our uplift of compete partnership reservoirs example existing areas to what in completions. alignment opportunities, and look with field Bapco stability, great and with partners, international scale significant through services exceptional portfolio, economics domestic with ultimately, Energies stakeholder realize our drilling that is and horizontal application oil we and of can for a the

oil our more per have been range tiers, outlook fairly $XX to a to the prices at $XX macro for WTI. robust on than Shifting bound barrel remarkably

to low expect return forward, to continue prices year. demand shocks, similarly global we oil increased expect of offset unexpected global range-bound we pending Looking this demand spare the inventories and capacity. to Bahrain be

cold strengthened inventories inventories when this and volumes. the approximately have by on reductions side, dramatically the natural return average And January Prices first drove in of X for inventories accordingly gas year X-year exacerbated the despite gas shut-in the incremental weather years. modest more throughout than the Tcf reduced time below X to were

And few years several they develop. the expect agreements prices for LNG start-up XXXX, grow these into natural over generation as have markets positioned the facilities. For additional we strategic ongoing demand from of from past marketing increases to support us our gas the addition of power and

higher flow on the Disciplined return for balance visibility sheet cash cash free through Our all large regular continue returns a base, providing underpinned investments strong cycle. sustainable countercyclic support and investment dividend, cash and flow to focus a priorities and pristine a capital creation. resource by long-term growing value additional generation

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

Ann Janssen

Ezra. Thanks,

outstanding in in oil annual billion company X% billion we CapEx XXXX strength was returns. that growth reserves financial price drove of highlights an our shareholder XXX% In for X% invested EOG which XXXX of equivalent record $X.X continued year and excluding X.X XXXX, barrels represents by proved reserve and oil replacement, In total a revisions. volume. to X% which in production increased

free to X% us well lowered performance excluding represented free to $X.X also finding of a We This in a BOE. of our XXXX Outstanding and annual flow shareholders. record shareholders. to XX% to cash development price return commitment by minimum revisions financial costs, $X.XX flow, to billion of XX% allowed excess per cash return of

based record flow growing of our remains continue regular commitment. was our our by generation. return our cash our dividend, year's underpinned to return lower Last to which cost to free shareholders and is cash sustainable commitment ability cash sustainably structure future the on This expand foundation

of history regular best the company's of its indicator performance, the dividend is growth. in believe We future have dividend through we the confidence confidence demonstrated our consistently

annual Last $X.XX regular to never commitment yield. the we currently in an as return XXXX. increased dividend rate rate a indicated have or of since per have fast dividend peers And history. grown in suspended fact, our our billion X% cash We we represents average cut dividend and This our twice $X.X year, annual nearly X% share. our as dividend

of of our In dividend, an record $X.X we reduced back price at per X%. buying XXXX average shares already XXXX, share. billion repurchased a $XXX share count Since shares we in regular by addition in have to we've our

At of which tax targets repurchases. opportunistic we we billion billion included on XXXX towards in IRS existing cash $X cash $X.X share $X.X In the debt, XXXX, $X for of balance $X buyback to authorization and of tax our billion had sheet to in approximately $X Entering continue payments optimization the to billion billion we work balance on last to under which billion remaining have outlined we will storm-related sheet, XXXX, in million relief. $XXX postponed XXXX, estimated end quarter. our

debt opportunistic April our flexibility as We in in of to next to this we'll the remain monitor XXXX. broader interest approach continue on we in the of January and issuing market maturities additional and have year financial also rates

remains flexibility advantage sheet opportunities. our shareholders ability support and to competitive other tremendous to EOG's in maintain as among property sector in invest countercyclical well a provides cyclical to as a is strongest balance and in the returns bolt-ons cash It industry. the low-cost

is For XXXX, we of The keeps billion. we plan that XXs. in capital expect capital flow $X.XX cash fund dividend a outlined on return our greater. a gas have to at year-over-year and disciplined natural low At XX% oil and the or regular CapEx the $X.X employed price capital earn to budget breakeven $XX flat

XXXX the review Now XXXX detail plan. results operating here's and to Jeff

Jeffrey Leitzell

portfolio during multi-basin outstanding Ann. execution capped Consistent yet fourth operational our another year. off across Thanks, the quarter

our as production and gas and cash strong for and I'd did operating to delivering year targets oil costs quarter thank execution, of another their DD&A. quarter efficient exceptional employees a operational not only Fourth performance. but safe beat volumes like

more spending For for safety, total while recordable cash forecasted, total incident on improved workforce lower remained reducing rate XXXX, target. our We we right and XX%. than the full initially oil year we operating by capital delivered production costs

motor design primarily in-house We in improved well innovations productivity We through performance and and laterals lowered production lift extended artificial drilling in completion X%, cost base through by automation. average EOG's program.

while price realizations, capturing which to consistently Our new also agreements our expose natural deliver marketing performance, X that premium continues us tier has team gas peers' top pricing. to outpaced

the capacity sales XXX,XXX prices our per indices. that Coast TLEP Brent day day Vitol XXX,XXX pipeline. is U.S. gas Williams MMBtu to per second the either MMBtu on is agreement First, And Transco or link Gulf gas with sales our project along

We to projects realizations. drive we continue also year, last peer-leading will progressed infrastructure expect strategic which X

pipeline, Verde quarter Agua provides The Dulce capacities compression. expandable per per year to Bcf centers. which a and fourth in the first X.X for service to market X our during from is Coast asset provides day, natural Gulf booster with Verde came runs into Bcf gas access and day XX-inch last Dorado

gas the is first into premium of this pipeline in processing Coast The and access our plant to giving million will Delaware per to half Basin. markets. cubic in the the connect XXX us The natural Gulf feet year facility second day multiple Matterhorn come service project Janus

our targets. maintaining demonstrate our our which our we manage diverse limiting This strategy, the duration agreements markets below to our of GHG and XXXX value to These of emission our ongoing marketing maximize And projects the conditions. us commitments. methane netbacks allows while intensity real and time market and in is through and end dynamic flexible finally, ultimately takeaway, maintained control and maintain

We $X.X growth volume oil billion and XXXX Building off plan. the performance, forecast momentum about total deliver from X% capital excited we growth. X% our to are our a XXXX program production

Delaware the in more growth in is due to heavily the mix XXXX weighted Basin. Our oil well

spend the Overall, the year-over-year. capital first than of year. more second When quarter the half tapering the at oilfield pricing relatively year. we cadence our costs XX% of be the in be will well looking in expect flat throughout XXXX, and in slightly service to Peaking

efficiency operations portfolio So entire of cost presentation. advance to captured last reductions Slide investor on year will from our our our the gains X come continuing illustrated across sustainable as

momentum gains our efficiency and Two operations to primary continue emerging plays our and drivers, longer with we laterals in from expect consistent plays. our foundational

As projecting in reduction year-over-year single cost the in we a digits. result, percentage are well a low

progressing of we EOG motor day by valuable the learnings seeing pace year-over-year year. completed continuous increase efficiency, laterals the drilling by feet per improvement. feet Basin, us per drill and and while day at to and realizing In capture our are always, implement Delaware combination the plays last helped XX% improved our capital remains program optimal XX% longer in-house each on allow one focused to As of

increase average XX%, Our XXXX another lateral efficiencies. least support will in of plan which includes at continued length

excited our Ohio are Utica in gains across excellent these by plays. emerging increase Dorado are In XX% Texas, efficiency activity and we to levels operational realizing the plays, in South and

our expect frac day in In per higher gains year, full-time the by increased fleet X%. lateral full-time activity XX% per by efficiency feet XXXX. We and be XXXX to last anticipate in X completed average by to day rigs X we feet Utica drilled driven in our levels and

per And day gained by in also each from full per completed grow in rig to American Dorado, maintaining allowing asset rig X into by maintain momentum we drilling program lateral XX% a build markets. XXXX. are feet the to Dorado, plan to on increasing drilled gas emerging feet in benefiting and year's day We us efficiencies last this low-cost North demand full-time both

This Cheniere. Gulf will year, supplying we through continue sales market Coast Texas our the LNG agreements gas with

our gas X and has in agreement years revenues We progressed Christi have realized Stage of project. their natural in X our the uplift to first are significant excited Cheniere Corpus

to project's X, MMBtu now which completion per Our Henry our to the XXXX. we agreement start tied XXX,XXX Hub-linked of the expect day sales up forward reflects guidance Train in

our gas sales Furthermore, our which be expect and continues Waha, pricing limited diversification of X% partnerships to to we total is natural X% exposure to strategic this to minimize year. our to

our support Bahrain. we front, several international in our modest includes expenditures in and to the XXXX On X capital Trinidad, a advance Trinidad In discoveries are in partnership increase planning new plan from wells for platform, net will the on the signed newly last the agreement construction our platform to field JV and commence coconut constructed coconut Mento year. we and support farm-out

future in cost that for term, and focused the generating future about plan. returns of EOG excited on company. returns operational the and projects long growth, investing executing high the our XXXX base disciplined the the remains lay for are We foundation through running lowering business execution

to Ezra here's up. wrap Now

Ezra Yacob

Jeff. Thanks,

results. outstanding yielded XXXX

to continue operational shareholders. flow sustainability ultimately, company. commitment and of to as capital our culture success core cash free discipline, deliver our at and generate a Capital the of on and We hirings significant excellence, to are

year and is see in year EOG our after consistent XXXX. result deliver to You the in performance continuing

unique company foundational Our grow of emerging strategic both to free short expansion, investment the of potential the and portfolio international flow continue cash in assets, and across disciplined agreements approach and our the term. to long infrastructure to marketing

environmental producer by sheet being and a to high-return low-cost playing energy. strong deep the long-term continues on by role of shareholder create to projects, a in inventory Supported EOG performance significant balance committed high-return, future of pristine a and a value focusing

for listening. Thanks

Now we to will go Q&A.

Operator

come The Goldman [Operator from will Sachs. with question first Instructions] Mehta Neil

Neil Mehta

Two questions.

WTI we just think there's consensus that at free I because was And timing some just $XX capital Henry might billion in a of The productive some first Hub was where $X.XX and the think, guide, cash $X.X plan? flow softer than, and little the pretty some had. be I the

in of could you're 'XX? a and the conversations that's plays about talk more the up infrastructure some 'XX cash little making free the that you a this As versus maybe of emerging morning. But focus investments might flow show in been bit that

Ezra Yacob

Yes, is Ezra. Neil, this

starts 'XX It with start We for that of kind discipline with plan. capital us.

plan the opening proposition of each for it's As establishing a year. that's value I core in said remarks, a and we that pillar have, the key consideration the

plan got the both is with commentary about parts foundational general the talked pretty and provided moving quarter. of consistent you optimal activity. to plays as with portfolio at improve kind So We're a last our we with specific some of our we've the an here, emerging opportunities in higher operating in level plays,

we year-over-year. delivering activity Basin, Delaware we're capital program activity this a of Eagle say longer Ford, Ford, and Eagle efficient in more when the moderation little strong We're laterals. bit bit there. we've look seeing a the efficiency got got capitally we've In at a consistent coupled little the I'd So with In flat just year.

being capital more to is there allocated assets. mentioned, Jeff As our emerging

the we with fleet. more we end Utica, talked about we've completions activity of X assets the XX% and X of And to in completions to those start the our In economies scale. look XX% in Dorado. full-time so more to year as emerging kind the Utica, we frac in rigs So capitalize try can on get to plays, of the really that's level each

in course, there. the of and in last is about strategic investment moving talked got Trinidad you remaining as the And a part then there, we then the and we've little opening more as some the remarks mentioned, Bahrain, investment on both additional -- infrastructure,

in so up of spend. international bit a And a step

operating we expiring forecasting. essentially you little of increase out, of And pointed cash due to we're expense XXXX, a in taxes cash free to we that AMTs similar is we piece that some and little X When that's less. the 'XX an our have of have growth flow capital XXXX as it. bit is volume that the all kind And had there in the biggest and is drivers won't in bit adds also that then really in a increased

then power in little LOE. cost you have this then also over those kind the are into a upfront down Some affecting of time have when come contracts deliver you usually due that increasing And bit and field, the initial step some GP&T transportation new transportation contracts, higher fuel higher to of that's you we and year as volumes.

back results the free improve to excited potential. stepping operating as plays perspective, continue supporting drive those long-term about cash right plan, the making to investments Essentially, short and we 'XX an continuing the to think business year and ahead. foundational strong extremely in From going we're we're flow forward, the about

Neil Mehta

That's Yes. have could as driven some those items that that. really of helpful

And more this the year. just a international. on the international capital bit like spend is there's follow-up portfolio, little It the program in sounds

you and that excited? Trinidad, you Bahrain, particular, can So bit, a unpack little in what's got

Jeffrey Leitzell

Hi, Neil. This over for bit little Keith it on of touch a and is Jeff. details. Yes, hand I'll to just it quickly

in exactly reflects Yes, their and Trinidad, to we've that talked our we're got both got be you to in the constructing international that's to But about be just this performed as We've also there. million right. our about increase going investment, $XXX which Mento capital coconut our platform you're really year going in program continued

on this we on year. The say in also won't that programs, in which be entry into XXXX. any necessarily I'll come online more is second what the sometime year. though, see volumes to goal then really Bahrain, these, of of is is, one half new start both the And the probably note They'll drilling the both

So a I'll detail. little Keith for over hand more to it

Keith Trasko

Yes. Keith. is This

year. this the excited Trinidad, in Yes, there we really are about program

just had Mento the we mentioned, we As platform.

that and with few years this ago, that. where wells phase development in is at This of So the we is operating a we're was X BP, a the are partner discovery XXXX. made looking net

come the later wells XXXX. year The on in in

that that's a really newest that history. the We've our seeing prospect exploration So on you're had have the our country entry Also excited roll-up. successful why and not Trinidad is project consistent and in coconut impact coconut about. since volume long a into we're the effort

potential So venture commissioning of that BP. was are an XXX-plus that. a few That a also access an and well also estimated with back, to joint we resource with the Bcf platform exploration project drilled is years associated

Shallow ongoing a really we in the We're value in Water to being structure. due preferred our So with also Trinidad partner our relationship them. low-cost value

forward of that follow that we're the setting platform. will the So to drilling successful program looking

also, awarded year, this in blocks We X new Trinidad.

proud continue team they We've really I'm really for at So XX well we future have how of the in opportunities. there. been unlock to a new years, Trinidad and

Operator

will from next Securities. And Jayaram question with JPMorgan the Arun come

Arun Jayaram

Just maybe gas outlook updated wider than as on guidance, talking could free of the a I expected you a differential year-over-year if also your basis. follow-up about little flow to time a a wondered natural bit which bit cash wider is and we spend

thought amount Hub given Corpus We narrow you Christi. higher startup as of have the that as of just may coverage Henry well at the

if that. I help wondering could you unpack was So us

D. Terveen

Arun, it's Lance.

Yes.

Let forward, about think you peer-leading our to when and carry really guidance you expect mean, see on the move you When really into realizations and there 'XX. of me 'XX, for can unpack kind we you. that that I back look

of let's talk And the little so unpacking about that. a guidance, bit

those the back. getting are about and weaken $X.XX that's that seen So But when you to really of you're look around primarily $X.XX kind that Channel kind Gulf basis at first about depending we've at you quarter, we've Coast, like seen Gulf and like as like when estimates. Houston along along think Ship into moved Coast the back, looking of the the be

we've where like 'XX, $X, And up the almost move the fourth NYMEX mean then from quarter almost right, that meanwhile, into of seen it's seen moved I $X.XX. up quarter you've first of 'XX obviously,

comes these going up ramp that and kind have So right? as up about that that to at but in, It's of you as kind into starting then to you're feather of new agreements are year, look strategic think that the right, to we has year. be going this

feel have consideration So agreements with will inflection of our to this realizations, take year. but with into just We is, you really we kind that the it as those of really an point well. see start-up

to more if really job think I X, So also Slide think you that's deducts linkage the from 'XX, really of you basis a how that our Arun, places and into molecules, nice from does at I look 'XX look when Hub of illustrating like getting there's we're and markets. directing to especially away I very supplemental to Henry right, mean, more the the Southeast where

Arun Jayaram

Lance. Maybe follow-up just That's there there. some control been on It has well helpful, Bahrain. is sounds my like

if about to based your of type maybe capital talk you what of expectations? could out cash the kind this of line could like play project Ezra, things look and flows time like just on

Ezra Yacob

Yes. Arun, Ezra. this is

bit Right and start early to off the a bat, it's about things that. cash talking probably flows like little

the disclosed our year. for haven't We this program capital

this entered While very a into we've we're partnership Bapco point, with JV the at about excited Energies, agreement. participation

We some of are capital couple approvals. do year. that this includes additional plan the We in have some awaiting a activity government

horizontal EOG partnership, seen this is sand, tested. gas doesn't with say great. already is development. can gas production The In the local area, what the the into production selling agreement prospect. there, anticipate positive exploration the We're been is which evaluating results In It's market has the formation a tight operator. I

Bahrain or anything. know, is not And is this guys large as you a island significantly

the quickly. we with would do relatively midstream go and existing us to allow us if area, would in competitive so portfolio and to our have which to -- sales successful And infrastructure allow

really portfolio. that and should results the domestic and and to optimistic drive expertise completion our the in economics horizontal competitive returns be drilling enhance We're applying technologies the with

Operator

from the will question come next Silverstein Josh with And UBS.

Joshua Silverstein

balance like you stay you tax less? of this in cash you the a debt offering. the should to how or given X we payment with ended about So buybacks about have pace but year, think sounds for billion XXXX the million talked cash $XXX $X following at XQ $X of It billion

Ann Janssen

Ann, is Josh. This you. Thank

our outlined be. committed levels capital to we more wanted and We our structure we what debt have been is year, to cash last making

to than Xx So debt-to-EBITDA WTI. target at basically, less total $XX want of we stay

that billion on billion. on by metric, through set that take we issuance $X starting $X if would by followed our debt billion, in at to approximately back new year that to We next last debt So we $X adding our we as billion November work to on have going flexibility level, forward $X move to XXXX. And $X the XX XX months. towards that over and we're billion some that timing commitment

believe the cash level, still appropriate billion business billion of for last to for remains of that years our Regarding cash level couple level we the $X our $X and [indiscernible] business.

[Audio Gap]

XXXX free and XX% However, cash [indiscernible] return. Part repurchase is share going look target flow our our we're return... of at the to cash course, [indiscernible] of of that, at level

Ezra Yacob

Yes.

Sorry, that we well. couldn't hear you

Ann Janssen

Okay. Just you start me to walk to want Do over? through. you

Ezra Yacob

Yes, great. That be would sorry.

Ann Janssen

Yes.

My Sorry about that. apologies.

On efficient. our our side, structure end we're the make capital our are of at we to structure committed ] outlined at looking the what we you more when for [ side, XXXX, if capital that debt recall going back XX plans, want forward capital the debt and --

that that As a last approximately level in are less billion months. We raising next XX we And amount. total over And WTI. than that through work have to on that paper you do XX-year billion and level it outlined on towards course to achieving of we'll at would on flexibility continue $X that commitment And of debt November at we followed XX to quarter, $X to at $X look to $XX debt debt-to-EBITDA billion be if we the in achieve by $X billion rate. the a we back the going timing of metric, X.XX% billion. when $X focused Xx we're

for of billion, run be at that I additional right return believe the run have as you the mean we our we look our countercyclical as the if billion investments. think well level business, that's regular to and to we years. $X cash $X level dividend that last continues cash at on appropriate couple And our cash and supporting backstop of level to level,

XXXX February staying you to paid shareholders. the our included to we out XX%. that of at to free $XXX at You're cash billion target our return minimum million about correct in that it's a commitment if flow We're that and buybacks, $X of so that pace year-end really turn of

We comfortable and saw to free have XXXX target. with long-term of higher remain potential to exceeded we've that back the being the in minimum as going flow shareholders to in more, that our XXXX. cash return well percentage But you and forward. are And a we positioned

repurchases, opportunistic. as We're as where our to programmatic So to far buyback prices type share watch and being plan. just be program. in in continue be continue our any we'll not go We'll opportunistic we'll of share

flow returns returning significant look to free then Again, is And a portion share anchored other dividend. committed by our to investors, we're just of repurchases cash in and we'll that our that of value to and to cash shareholders. return turn, back the

Joshua Silverstein

And now then price second, in Dorado, you fell in back a higher We're some X environment. years. activity over the past

the the new around is starting corner. LNG in started pipeline up up facility Your

kind pace $X-plus just confirmation kind modest of Are a environment or there? activity to of waiting gas just guys the of you taking a price more more of accelerate on growth

Jeffrey Leitzell

Jeff. is this Josh, Yes,

price really long-term perspective, plays, looking As near-term rather from just just a we do any levels with activity commodity the the than evaluating at volatility. there, we're more of other

to So really, XX% operational we we is optimum increase year-over-year really a what of when the in continue activity saw we year believe push feel like that XXXX. activity Dorado, look And is we improvements forward good just to the it truly in at level this level. reflects for

particular invest through where of really is not do just we cost And improvement level, taking down current saw we in lower And really improve while is. activity day. to proximity look the look this we're Dorado to position drilled advantage cycles. the per and think we the with great XX% about a drive invest we it to point, positions And costs what price at year-over-year our completed feet to but to really necessarily in and continues a

Operator

And next will Mariani Leo ROTH. question come with the from

Leo Mariani

follow to around up Ford down XX% completions on the Eagle looks wanted dial year-over-year. Just back It net activity. a like bit are little decision to

lateral up. lengths I know going are your

much, being competitive here that obviously or incremental just 'XX? bit your So more presumably, Delaware but emerging just provide returns like activity seeing total you are increasing not quite completed in there. with color Are plays or as down a little feet the

Keith Trasko

This is Keith. Yes. Thanks, Leo.

we're in we in what leaned persistent XXXX. Ford think both the really in Eagle I seeing In XXXX had activity we up inflation is levels the that Basin. Delaware into of wake really the XXXX, and stepped the

And in between sharing Eagle the frac crew a Dorado XXXX, we and were Ford.

to there Ford activity in completions due completion the Eagle consequently, deferred we So weaker Dorado more in were gas when prices.

kind us levels And so is I there. seeing to down back of you're getting our think what background

mentioned longer the You laterals.

So when year, pretty we're in is how compared several this look feet at competing years. to lateral we much average year the last a

line of seen ever production realize some the the last it Eagle operating the returns in to It actually consistent to really. XX play we've for highest for years, continues foundational core several more, is Ford in despite a or to the improvements sight us a So and play the of in allowed only years. supports the And have for efficiencies -- a maintain be decade for us. asset

Leo Mariani

to Okay. I over jump I appreciate wanted side. just to back that. And the exploration

years. oil last been you plays exploration a looking for the know guys handful domestic have of I of number at

lower-cost activity to wanted levels exploration the in Are what here for get Just XXXX? are. still of of a domestically type pursuing you those there plays sense oil

JV, you've the Bapco is which Obviously, gas. international got

should and a in we And get just active? in expect activity of some what there these 'XX? terms trying plays to So sense still kind of there's of

Ezra Yacob

is Yes, Ezra. Leo, this

great question. a That's

the that domestic can but we've announcement, active not Bapco front, on the also been exploration international. obviously With you see only

an opportunity. said international gas Bapco You is

at oil of on really domestic we And versus the focus with is that's our not either or necessarily project well what play. to approach. so I the highlights will -- international, And what an additive that think really focused for gas, on is inventory And our but focus to really we're where exploration the be. returns existing how

the plan more we've we U.S. as typically overall that be optimistic have. than We drill details don't wells still so exploration year, that got more will we few are additive domestic additional give comment the to or further active and last that, that do continue there few program. we drilled on programs to We that. a Leo, year. this an And in you remain highlighted, than inventory resources a our But to

Operator

with question [ come next ] ]. Capital [ Derek will Axis the Woodfield from And

Unknown Analyst

-- From X guys with trends. the success experience you on outside, all emerging have it appears this

my it For ask like question, close up heads focus and Eagle the on I'd to is how Ford? Utica the first competing to with

Ezra Yacob

generate Derek, I'd alluded this significant have Eagle we we Keith pace, when at Ford, Eagle returns is Ford as And the to, It's there. Ezra. we very The say invested interesting. mature Yes, asset. what is, the still right at a is

we've And is we've marketing all economies got one reasons the scale. in of of got infrastructure our the dialed We've the place, because captured in. really agreements

that one is lacking the the right the bat things off that's So still really of Utica. with

the just it It's get operational cost make the a down and squared need through really midstream of our I not able get strides the when Jeff really, -- place foundational got you to to good -- to getting takeaway. of where in things mentioned notes. say been we've that sustainable scale can costs the in-basin really to infrastructure, efficiency away. it's to compete drive assets, on We've as or sand locations, you with thing the like of -- infrastructure to gains, our economies But water capturing opening either

to where safe and field costs. consistent And drilling and where operations point we really drive can the operating then just provide environment in down guys frac the the having consistent

exceptionally happy would with in the we've years pleased had been play. results over We're I the we've first results. very with time X the say early this

carrying a XXXX. we talked of we're momentum into lot about, As

we the and next -- at to BOE that over oil $X we're we a looking $X volatile November window, years, per on we focus of I while that finding development in should couple highlighted think cost.

well year after about Ford is path we've of better where That of having quite than think that how heads-up metrics reservoir with way, brings contemplates foot less kind down quality. about Ford which well further made the a a frankly, already you is. understanding per in think those a the of significantly far types it costs comparison line very Eagle you Utica it the $XXX if with the well Eagle on lower cost, of subsurface On and it the when

Unknown Analyst

where it a second working benefit you the as and And do the could efficiency to in closer for both in Niobrara, great. with drive think getting my gains the you've seems That's productivity noted like with closer question, PRB? of cost the we're you and F&D breakthrough

Keith Trasko

This Keith. is Yes.

the we more In Powder that activity talked on are shifting the Mowry, the to in Niobrara. and River, were yes, about we shallower data on Niobrara, which how focused the be the exactly. We've past, when is developing gathered we

activity more it's whole you plan Powder flat XXXX to But last a roughly much year. if at look focused. as Nio So the in

So just in put this XX% then count we year-over-year. the increase in able to significant Nio to that it, well in to productivity year-over-year able on at gathered being all were have were Niobrara 'XX the you if look this data play and uptick the well overall year,

That's XXXX to XXXX.

days the down reduced XX% also We drill year-over-year. to

the strides with Powder. happy very the we're in So

is And kind our I on how side, company have multi-basin this funding Powder multi-basin the a a overall of in portfolio cost We the say little itself. without portfolio.

of the And have with there. And play finding make of kind a numbers. a kind a return. bit oil, little a You more holistic combo which in to more Niobrara, cost do Mowry together, then mix higher asset little good is they of

Operator

Mizuho next will from Nitin The question Kumar with come Securities.

Nitin Kumar

to focus on want I Delaware. the

basin. of there had and stepping the lateral lens the oil parts reading from You're But away year, significantly. last other into we quite sort about of talked core

versus characterize of last would Delaware year? the this How year program the you productivity

Jeffrey Leitzell

Yes, is Nitin. This Jeff.

they're have the Delaware, we cycle strategies in just economics fully returns given full development to based and out we're trends seeing. we're confident the there several year But vary the durability of productivity going in the and factors. in the that And any on just

the is there's of obviously, rate like starting cycle that key So that's lot leverage to evaluate. your with thing underpin any the we a plays, including metrics bottom pretty at to point evaluation. a our other first Delaware, flat we a But of good pricing. And return of

of want maximize the that really well, we what possible. sure period we really that as we're there. the specifically, margins, want greatest to payback to pay And value we're just as really capturing the delivering make just is the out and but net the much attention to We sure really present expanding resource make value, sections to the and not

the back on Delaware, We're more a as we've from productivity do there. that talked the example, forth developing is, normal the to different to has perfect where variation of seeing oil-weighted hit really slightly part area in quarter, So first and about you some well just and we're and move kind in in the area, we development. mix is this and the year well benches, around just field our with that's alone, just mix flow of

So well of and development variation and kind play. see to the throughout the you'll this continue mix productivity of in

other And I just really touch the Delaware made just here productivity that the best cost current is improvements shallow by last really over then really our targets, thing the the practices. in our significant forward few years, improving lowering on pushing in and by we've

pricing. the look Springs, play, when delivering comparable you So the targets, down you they're all if Bone at the target at bottom-cycle Leonard, in break returns by it Wolfcamp

develop our perspective. also balance of targeting ultimately knowledge infrastructure make is both better margins, positioned productivity we really of roll to really what all we're things, resource it geologic then because return, to a a you capture from And and up maximize us above allows when the section ever to think than all payout that sub-service value. these ground NPV, optimally I sure to perspective given So and date,

Nitin Kumar

Great. Jeff.

I'm shot bigger the corporate to more years? about the could Bahrain be Bahrain take going accounts are details opportunity. try Trinidad production gas the for I scale same Ezra, at limited. your XX% of one know to over or

gas what as returns Bahrain are like, those looks of for then And the domestic exploration? your us competitive pricing as local who know don't

Ezra Yacob

Ezra. is this Nitin, Yes,

for we're it. said, I Bahrain. Thanks Like excited to talk about revisiting

I have think an we we that the first take want opportunity that to to opportunity. international, tell international say just is an

take For able little first from turn things. we'll to more. need a these got us be of step, still something an strong pretty this I that have for shareholders. mean, to conviction couple But bit wells into a we to the And test this that we pretty we our that's exploration meaningful is conviction a standpoint, strong need we've

it's size to in. and that means command we'll are got something additive our potential want scale that the will the So that that deliver capital to to program, invest actually and returns

the stakeholder why saying I like we're we partner. a thrilled we that's sure that found Energies. with and second we this. part We want that found Bapco partnership alignment, take a keep of The that, to obviously, be to make step couldn't have is we that And with -- more good

seeing consideration additive into in productivity something meaningful should in the and as the for country, you we that would be there well look price cost that. about company. in at all and price that anticipate market But take the talked yes, up the that when far think that potential with roll could gas As the structure we that haven't we sales we that and

Operator

The next James. from with Raymond John question Freeman will come

John Freeman

kind Utica. feet. the to increased the I back And you kind pretty circle X,XXX I to big better? of Or in of testing year spacing? from a guess, Last doing still specific of meaningfully Are or, activity you're what XXX sort feet of is on part that on dialed wanted just in you to year, agile well sort of all tested Utica. this a spacing understand

Keith Trasko

Keith. is Yes, John, this

just our versus far as ourselves mode in as we are your development question testing pride in where manufacturing both. being of plays. not We So any ever a doing

And employ set completion don't really entire we spacing so a design field. an or throughout

and difficult a it's draw line between to development testing. So little a

every new and improve and every package well So incorporating and foundational the emerging. to across all learnings constantly we're plays, data

on that play. also talked said we've we've in to be the to spacing which -- area. depends unconventional far it's pretty for As it's American goes, But X,XXX, going as oil is it North feel we the past about -- standard XXX

in portion should what last geology that we significant showed we and factor year and so our spacing X,XXX think a And in or your XXX plays significant a lease, be. tests between

reaches the talked could that like also So would we barriers past, further. an mean also but in in frac better have south, example that thinner out we where frac the we've be about the pay have

So going on. takes south better. out it in expect them they into Those time that the the you package account things drill and work into spacing every are to of next might things the sorts wider one the incorporate are

John Freeman

these emerging more have you activity, plays more talking then international today. And about take as opportunities on that of been some as these capital

Do that to areas some just start kind for divestitures of global portfolio harder as at capital deep look having a more may with pretty a maybe tougher maybe you unlock all way value got somebody to be to the you've else. competing take given a valuable time

Ezra Yacob

we and is continue we bring for to continually opportunities Yes, opportunity inventory Ezra. our we -- look to forward at that value any this can. to have John, continue review Yes,

surprisingly, For job part, over we've last, been going the the we've divestiture market. the last back say, good done been, a the active not most I we've would fairly decade, almost and in

a done And the so our grading high job at good right portfolio of we've kind times.

Operator

next The Truist Securities. Dingmann with question come Neal will from

Neal Dingmann

your operations. peers gen just how My talked number first ideal wondering, them for gas make question an partner is for transactions. their maybe or I'm and ideal IPP would other of service about power make water an on resources a have natural

be all asset you some -- all have same seem would wondering, with interesting do of like that. areas that to your of in you those Eagle something wondering Appalachian, could you a that where you high actively like think Ford, said, I'm these are into I'm certainly And have so, something you lot speaking opportunities definitely do And to qualities. do hyperscalers? And if Dell, the

Ezra Yacob

good This a Ezra. question, Neil. it's is Yes,

data And we you're couple couple a There's and can and industry spent play EOG benefit how already different technology, and benefit may a we of ways what right. development looking and that of have the investment role of in different specifically that. today would lot of at a our in ways time future. progress we in With utilization center

in a That's ground. the centers data important it's found, than of those oftentimes, And surface with up result, bit and fiber lines dense a bit areas It's fiber data you diverse if and typically where areas. more little being urban the as are the just in water. they're at Currently, diversity centers to look the end obviously a and lines. closer

our exposure capacity good into thing captured A deliver strategy, marketing associated gives is is diverse The a the a it's example whenever areas. job gas those you market great in year. electrical with uplift just the last first along that us to Transco increased demand that's We've nice. and see Southeast pricing we the regional with the very pipeline done that

But can is outpaces second more infrastructure think exciting we way the data development. maybe that development if center EOG is benefit

distances the pipelines current model And there to deliver requires so or of what electrical is energy over natural to gas I form these long mean centers. transmitting in grid either the data

nail see that on fiber starting Neil, to closer the play Another the I in to model you're Texas I Dorado investment And would is there's closer be, power When the it and to is data fields and generation to worthwhile. natural to buildout. where in obviously, a also greatly potential about surface role make than think important regional the develop as then water hit centers constructing Coast head having the gas you there. enough would the but Gulf more South We that, data think, center demand. larger from see benefit

Neal Dingmann

definitely areas. you interesting Yes, some have

XXX,XXX maybe a I'm could how of Utica a just differently. Utica footprint, it you're the at second, target, And ask a the just about looking I maybe if part huge if you've bit just all now don't maybe able almost little you I to curious know I'm maybe now. or acres XX,XXX new curious, acres the on another you discuss got thinking are what way,

I the the know, you black I'm can versus maybe Trimble County? about into Western well don't oil eastern like of start over think I the window. side how wondering side

Ezra Yacob

is Neil, Ezra Yes, this again.

this picking Again, focused of in kind We're our of front up where in leasing, on point. opportunities we window. did at volatile oil the we're and most of out still drilling our leasing leases

in that as if the things has of grab Wild kind of the West land think of far you kind and that ended play. about majority like that, As

drilling our can the our of we'll in expect window, leasing, focusing we're up in doing of dominantly And a oil going really that now the few coring years, the think for where so leasing of volatile next be kind focus that's forward. strategic lot areas. the you since I And

shot As go stepping Bakken, first. ways. But need to our if still talking Eagle out far Ford, about back, there like whether like of even the Barnett, things seismic still up Haynesville, as days in expansion, we basin, early back go we're a the gosh, to ultimately, get that. Permian, you little any it's We're

data, develop the got oil You in is really you've wells We'll and our us. most the there. volatile certainly the for start window areas that where

to really spacing when unconventional you almost And that's the making on As a you data across like collect said. identifying earlier, as to these good this Keith start progress once we're alluded XXX,XXX correct to things and acres, of lot you of a once other the have kind out better understanding can what understand the more about play. reservoir, start you the of into areas of value drivers step are

Operator

will Leggate Research. question with next Wolfe the Doug And come from

John Abbott

This is Doug John on Abbott Leggate. for

scale value on Ezra, the it's harder move of needle resource. to as your getting the

have of XX years inventory. You about

of it So to part seems us value. becomes market more the a important recognition and dividend

about So of do you breakeven? growing question is, evolution the the the and dividend our rate the dividend, dividend think how

Ezra Yacob

hear good the to Yes, It's for from thanks joining call. you. John,

on, that's return company in reflected regular And of We complete We're dividend. for strategy. be really feel agreement. a of focus scale in the and foundation and sustainable we size what a or best stock growing should the our marker our blue-chip and cash is we think a

raised growth annual of dividend regular sustainable dividend growing XX we've average years regular a got the Xx actually rate We've year. compound raised last since We And dividend. as our X% our regular XXXX.

lot. we And a that covered so really

most we The way I that, think said important sustainable. about how is word grow the we

So cash means operations, company. of but growing from line we flow grow basis in also expanding also lowering margins. both line top it the revenue, That cost but with concert top the

is that continuing improve. to sure the making So company

a balance also And as up we that dividend. marry And we backstop just then with sheet with on John. regular strong a you, that agree

decreasing. to I dividend think yield the increasing what is and we see like the

John Abbott

least on Ann little a for us, it. difficulty was speaking. Appreciate taxes. is when for it hearing was question the At my in second then beginning cash And

tax about talk -- thought Could tax AMT. discuss that payer. you you full that you Could Are impression more correct? Is cash little detail a you your were a the outlook? our bit We already on cash

Ann Janssen

the Thanks question, Ann. is This Absolutely. for John.

we it credits. out, that And revision alternative XXXX at, when look exhausted in we exited million modeling were fully XXXX. tax way in tax way our minimum The the those current $XXX we're included

So you're not XXXX. going to that of any in impact see

we when look as move forward, not XX% material or And you're looking result, for at current So as increase, our see you're a XXXX unusual any current guidance into tax contemplate in does going to increase current XXXX. about we items. taxes as

So is good we proxy being move all things forward. a XXXX as equal,

Operator

This session. question-and-answer concludes our

like closing to turn would the to for over Yacob any Mr. I conference remarks. back

Ezra Yacob

everyone's we you. Yes. to time appreciate for I Thank just We're excited today. say want XXXX. very

improve and each assets as the build plan our our appropriate pace well an opportunities we of to business. to think reflects as investment see I our of year-over-year improve broader

disciplined we high-return both multi-basin better. get optimize flow as And portfolio, lower free in breakevens long-term to how generation. to reinvestment cash It ultimately the cost near lower and is us and our continues to had allows us reserves EOG allows

and another to you thanks for special thank always, our quarter. for shareholders your our support delivering to employees As exceptional

Operator

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

now disconnect. may You

EOG Resources (EOG) 28 Feb 252024 Q4 Earnings call transcript