Slide 1: 3Q 2023 Earnings Presentation
3Q 2023 Earnings Presentation Pearce Hammond, Vice President IR Neel Panchal, Director IR Shelby O’Connor, Manager IR (713) 571-4684, phammond@eogresources.com (713) 571-4884, npanchal@eogresources.com (713) 571-4560, soconnor@eogresources.com
Slide 2: Sustainable Value Creation Through Industry Cycles
Sustainable Value Creation Through Industry Cycles Returns-Focused Most Stringent Investment Hurdle Rate in Industry Anchored to a Flat $40 Oil and $2.50 Natural Gas Price Deck Disciplined Growth EOG is focused on being among the lowest cost, Optimize Investment to Support Continuous Improvement Acr
Slide 3: 3Q 2023 Results & Highlights
3Q 2023 Results & Highlights Strong Operational Execution and Financial Results - Volumes, Capex, and Per-Unit Operating Costs Better than Guidance1 - Updated Full-Year Guidance to Reflect Higher Volumes and Lower Per-Unit Operating Costs2 - Adjusted Net Income3 of $2.0 Bn and $3.44 Adjusted EPS3 -
Slide 4: Increasing 2024+ Cash Return Commitment
Increasing 2024+ Cash Return Commitment Free Cash Flow Priorities Focused on Long-Term Value Creation Sustainable Dividend Growth • Regular Dividend Increased 10% for 20242 • Primary Mode of Cash Return to Shareholders • Regular Dividend Yield Leads Peers and Broader S&P 500 Average3,4 2024+ CASH RE
Slide 5: Delivering on 2023 Cash Return Commitment
Delivering on 2023 Cash Return Commitment Exceeding Minimum 60% of Annual Free Cash Flow1 Commitment to Shareholders ~75% Free Cash Flow $5.5 Bn Committed YTD $1.25 Bn Retired Bond at Maturity $0.7 Bn 2023 Free Cash Flow Estimate at $80 WTI $1.5 Bn $1.9 Bn Primary Cash Return Additional Cash Return
Slide 6: Committed to Sustainable, Growing Regular Dividend
Committed to Sustainable, Growing Regular Dividend Increased Regular Dividend 10% 26 Years of Stable and Growing Regular Dividend $ per Share Regular Dividend is a $2.1 Bn Annual Cash $3.64 Return Commitment to Shareholders1 $3.60 $3.30 Strong Track Record of Delivering Cash To Shareholders Through
Slide 7: A Growing Portfolio of Low-Cost, High-Return Resources
A Growing Portfolio of Low-Cost, High-Return Resources1 Multi-Decade Premium Resource Poised to Further Improve ROCE2 & Free Cash Flow3 Finding & Development Cost ($/BOE)4 $10 Invest to Improve the Business - Premium Hurdle Rate of 30% Direct ATROR3,5 @ Flat $40 Oil & $2.50 Natural Gas $8 - Low F&D
Slide 8: Premium Development Improves Finding & Development Cost and Drives Down DD&A
Premium Development Improves Finding & Development Cost and Drives Down DD&A Finding & Development Cost ($/Boe) 1 Depreciation, Depletion & Amortization ($/Boe) $12.93 $18.43 $10.69 $5.13 Premium Drilling Premium Drilling (1) All-in Total, Excluding Revisions Due to Price. See accompanying schedules
Slide 9: Lower Cost Basis Results in Higher Operating Margins
Lower Cost Basis Results in Higher Operating Margins Operating Cost excl. Taxes & Interest ($/Boe) 1 Operating Margins at Constant Price ($/Boe)2 $19.40 $32.66 $8.04 $22.59 Premium Drilling Premium Drilling (1) LOE, Transportation, Gathering & Processing, G&A (non-GAAP), DD&A and Total Exploration C
Slide 10: Higher Margins Drive Record Return on Capital Employed
Higher Margins Drive Record Return on Capital Employed1 Oil Price Required for 10% ROCE1 at Constant Gas Price2 Realized ROCE3 $86 45% 34% $94 WTI $6.64 HH 35% 25% 15% $93 WTI $4.37 HH 15% 5% Premium Drilling $42 -5% -15% Premium Drilling -25% (1) ROCE, a non-GAAP measure, defined and reconciled in
Slide 11: Utica Combo Package Results Outperform Type Curve
Utica Combo Package Results Outperform Type Curve Timberwolf Package (Aug ‘23) Utica Type Curve: 90 Day Cumulative Production (MBoe) Avg. IP30: 2,150 Boed 55% Oil, 85% Liquids 250 90 Day Product Mix Average: Brown #1 (Oct ‘22) IP30: 1,900 Boed 55% Oil, 25% NGLs, 20% Gas Rose #2 (Oct ‘22) 200 IP30: 2
Slide 12: Utica Shale Play Positioned to Deliver Premium Returns
Utica Shale Play Positioned to Deliver Premium Returns Utica Development - 90%+ of Acreage Held by Production with Minimal Drilling Commitments - Infrastructure Capital Investment Limited to Infield Gathering to Support Operations and Marketing Efforts North Utica: - Targeting 3-Mile Laterals for Ca
Slide 13: Permian Performance Delivers Returns Well Above Premium
Permian Performance Delivers Returns Well Above Premium Wolfcamp Average 6 Mo. Cumulative Production (Boe/ft) Wolfcamp Average 6 Mo. Cumulative Production (Boe/ft) 34 36+ 33 34 Gas NGL 23 Oil 11 2021 2022 2023E Completed Wells by Target Wolfcamp Combo Wolfcamp M 2022 Performance is Significantly Hig
Slide 14: ESG Ambitions & Strategy
ESG Ambitions & Strategy Dedicated to Being a Responsible Operator and Part of the Long-Term Energy Solution ACHIEVED NEAR–TERM EMISSIONS TARGETS NET ZERO AMBITION 13.5 0.06% ZERO 99.8% NET ZERO GHG intensity methane emissions Routine flaring wellhead gas capture Scope 1 and Scope 2 GHG rate1,2 by 2
Slide 15: Strong 2022 Emissions Results Exceeded Near-Term Targets
Strong 2022 Emissions Results Exceeded Near-Term Targets EMISSIONS Scope 1 GHG Intensity Rate1,2 Wellhead Gas 17.7 99.9% Capture Rate 15.0 13.6 14.0 13.3 13.5 WATER 9% 14% 2018 2019 2020 2021 2022 2025 Target 36% 28% Scope 1 Methane Emissions Percentage2,3 0.22% 0.12% 55% 58% 0.08% 0.06% 0.06% 0.04%
Slide 16: EOG Culture Drives Sustainable Competitive Advantage
EOG Culture Drives Sustainable Competitive Advantage ✓ Rate-of-Return ✓ Multi-Disciplinary ✓ Every Employee is a Driven Teamwork Business Person First ✓ Decentralized / ✓ Innovative / ✓ Safety, Environment, Culture Non-Bureaucratic Entrepreneurial & Community Information Exploration Operations Susta
Slide 17: Copyright; Assumption of Risk; Forward-Looking Statements
Copyright; Assumption of Risk: Copyright 2023. This presentation and the contents of this presentation have been copyrighted by EOG Resources, Inc. (EOG). All rights reserved. Copying of the presentation is forbidden without the prior written consent of EOG. Information in this presentation is provi