Eog Resources, Inc. · NYSE:EOG
Eog Resources — Q1 2023 Earnings Presentation
16 slides from Eog Resources's earnings presentation, May 5, 2023
Slide 1: 1Q 2023 Earnings Presentation
1Q 2023 Earnings Presentation David Streit, Vice President IR Neel Panchal, Director IR Shelby O’Connor, Manager IR (713) 571-4902, dstreit@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: 1Q 2023 Results & Highlights
1Q 2023 Results & Highlights Outstanding First Quarter Results - 1Q 2023 Volumes, Capex and Per-Unit Operating Costs Better than Guidance1 - 1Q 2023 Adjusted Net Income2 of $1.6 Bn and $2.69 Adjusted EPS2 - Generated $1.1 Bn Free Cash Flow2,3 in 1Q 2023 - Further Strengthened Balance Sheet with $1.2
Slide 4: Delivering on Cash Return Commitment
Delivering on Cash Return Commitment Minimum 60% of Annual Free Cash Flow1 Committed to Shareholder Returns Free Cash Flow Priorities Focused 2023E Free Cash Flow on Long-Term Value Creation @ $80 WTI Sustainable Dividend Growth $5.5 Bn • Primary Mode of Cash Return to Shareholders • 2023 Regular Di
Slide 5: Committed to Sustainable, Growing Regular Dividend
Committed to Sustainable, Growing Regular Dividend Regular Dividends Protect Cash Returns Through Cycles 25 Years of Stable and Growing Regular Dividend $ per Share Regular Dividend is a $1.9 Bn Annual Cash $3.30 Return Commitment to Shareholders1 $3.30 $3.00 Strong Track Record of Delivering Cash T
Slide 6: EOG's Balance Sheet Leads Peers and Broader Market
EOG’s Balance Sheet Leads Peers and Broader Market EOG Net Debt1 ($ Billions) Financial Leverage (Net Debt/EBITDA)2 Liquidity (Cash/Market Capitalization)2 5.6 2.0 11.3% 4.5 7.7% 3.1 2.5 0.8 4.2% 0.4 2.7% -0.1 S&P 500 EOG S&P 500 E&P Peer -0.1 20th Pct Median Avg -0.9 -1.2 EOG S&P 500 E&P Peer S&P 5
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 $8 - Low F&D
Slide 8: Premium Development Improves Operating Margins
Premium Development Improves Operating Margins Finding & Development Cost ($/Boe)1 Depreciation, Depletion & Amortization ($/Boe) $12.93 $18.43 Improving F&D Costs Drive Down DD&A $10.69 $5.13 Premium Drilling Premium Drilling 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 201
Slide 9: 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 10: 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 34 35+ 33 Gas NGL 23 Oil 11 2021 2022 2023E Completed Wells by Target Wolfcamp Combo Wolfcamp M 2022 Performance is Significantly Hig
Slide 11: Increasing Permian Returns Through Operational Efficiencies and Multi-Target Development
Increasing Permian Returns Through Operational Efficiencies and Multi-Target Development Wolfcamp Days to Drill & Complete1 Wolfcamp Well Packages with 2+ Targets -24% 90%+ 65% 19.4 40% 16.7 14.9 14.7 10% 2019 2020 2021 2022 2019 2020 2021 2022 • Consistent Activity and Culture of Continuous • Maint
Slide 12: Eagle Ford Operational Excellence Drives Down Finding and Development Cost
Eagle Ford Operational Excellence Drives Down Finding and Development Cost Operational Highlights Completed Lateral Feet Per Day for Contract Fleets1 3,385 • Infrastructure from 3,700+ Producing Wells Minimizes 2,875 Capital Expenditures and Lowers Operating Costs 2,195 2,370 1,530 1,165 • Multi-wel
Slide 13: ESG Ambitions & Strategy
ESG Ambitions & Strategy Dedicated to Being a Responsible Operator and Part of the Long-Term Energy Solution 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 2025 percen
Slide 14: Strong 2022 Emissions Results Met 2025 Targets
Strong 2022 Emissions Results Met 2025 Targets Preliminary ESG Metrics EMISSIONS Scope 1 GHG Intensity Rate1,2 17.1 17.7 ~99.9% Wellhead Gas Capture Rate 15.0 13.6 14.0 ~13.5 13.5 WATER 9% 14% 2017 2018 2019 2020 2021 2022E 2025 Target 36% 28% Scope 1 Methane Emissions Percentage2,3 0.40% 0.22% 55%
Slide 15: 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 Culture Decentralized / Non-Bureaucratic Innovative / Entrepreneurial Safety, Environment, & Community Information Exploration Operations Susta
Slide 16: Copyright; Assumption of Risk; Cautionary Notice
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