Slide 1: 3Q 2024 Earnings Presentation
3Q 2024 Earnings Presentation Pearce Hammond, Vice President IR Neel Panchal, Senior 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 Capital Discipline • Premium Hurdle Rate Guides Returns-Focused Investments1 EOG is focused on being among • Pristine Balance Sheet and Significant Free Cash Flow1 Generation the highest return, lowest cost, • Sustainable, Growing Regular Dividend A
Slide 3: Premium Investment Supports Through-Cycle Profitability
Premium Investment Supports Through-Cycle Profitability Premium Investment Strategy Improves Oil Price Required for 10% ROCE1,2 ROCE1 and Free Cash Flow1 Generation $85 • Premium Hurdle Rate of 30% Direct ATROR1 at Flat $40 Oil & $2.50 Natural Gas $44 • Significant Reduction in Oil Price Required to
Slide 4: 3Q 2024 Results & Highlights
3Q 2024 Results & Highlights Outstanding Operational Execution • Volumes and Per-Unit Cash Operating Costs Better than Targets1 • Updated Full-Year Guidance to Reflect Higher Volumes and Lower Per-Unit Cash Operating Costs • Peer Leading US Price Realizations • Verde Pipeline Completed and In Servic
Slide 5: Cash Flow Priorities Support Sustainable Value Creation
Cash Flow Priorities Support Sustainable Value Creation Regular Dividend Capital Investment • Sustainable and Growing Regular Dividend • Investment Pace in Each Asset to Optimize Returns & NPV • Primary Mode of Cash Return to Shareholders • Align Investment with Short- & Long-Term Supply and • Compe
Slide 6: 27 Years of Sustainable, Growing Regular Dividend
27 Years of Sustainable, Growing Regular Dividend Regular Dividend Rate Increased 7% for 20251 $3.90 Regular Dividend is a $2.2 Bn Annual Cash Return Commitment to Shareholders for 20251 1 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 7: Strong Cash Return Delivers Shareholder Value
Strong Cash Return Delivers Shareholder Value On Track to Exceed 85% of 2024E Annual Free Cash Flow1 Cash Return to Shareholders Share Repurchases1 Special Dividends $5.1 Bn Regular Dividends $4.4 Bn $4.3 Bn YTD $1.0 Bn $3.3 Bn $2.2 Bn $2.7 Bn $1.5 Bn $1.8 Bn $0.8 Bn $1.9 Bn $2.1 Bn2 $1.8 Bn $0.8 Bn
Slide 8: 3-Year Scenario: Visibility to Strong Shareholder Value Creation
3-Year Scenario: Visibility to Strong Shareholder Value Creation Higher Free Cash Flow 2024-2026 Scenario Key Metrics1 at Similar Prices $65 - $85 WTI Range Cumulative Free Cash Flow2 Cumulative Free Cash Flow2 $12-$22 Bn Generation Significant Free Cash Flow 2 $22 Bn $21 Bn $18 Bn Cumulative FCF 20
Slide 9: Strategic Infrastructure Investment Improves Margins and Supports Multi-Decade Growth Potential
Strategic Infrastructure Investment Improves Margins and Supports Multi-Decade Growth Potential Strategic Considerations Avoids Third-Party Fees Supports Operational Reliability Improves Netbacks Mitigates Inflationary Pressure Reduces Operating Costs Expands Margins Verde Pipeline Janus
Slide 10: Marketing Strategy Captures Premium Gas Markets
Marketing Strategy Captures Premium Gas Markets Strategic Infrastructure Connecting to Premium Markets EOG Connectivity to Improved Pricing • Janus Gas Processing Plant to Matterhorn Pipeline to Multiple Premium Gulf Coast Markets NEW • Verde Pipeline to Transco TLEP1 to LNG and MEXICO Premium South
Slide 11: Gas Sales Agreements Provide Pricing Diversification
Gas Sales Agreements Provide Pricing Diversification Brent-Linked Gas Sales Agreement Sales Volumes3,4 • Sales volumes of 140K MMBtu per day linked to Brent K MMBtu per day • Additional 40K MMBtu per day linked to Brent or US Gulf Coast gas index Linked to Brent or US Gulf Coast Gas • 10-year agreem
Slide 12: Peer Leading 3Q 2024 US Price Realizations
Peer Leading 3Q 2024 US Price Realizations1 Oil Price Realization, $/BBL Gas Price Realization, $/MCF NGL Price Realization, $/BBL $77 $74 $22 $20 $1.84 $0.52 Peer Average EOG Oil Peer Average EOG EOG Peer Average EOG NGL 3Q 2024 12 (1) Data sourced from company filings. Peer average includes APA, C
Slide 13: Executing on Utica 2024 Plan
Executing on Utica 2024 Plan Strong Utica Results Confirm Premium Play Capturing Sustainable Operational Efficiencies • Southern Acreage Economics Boosted by ~135K Mineral Acres Ownership • Estimating ~60-70% Liquids for EUR Product Mix Across Acreage Timberwolf (Aug ‘23) 4 Wells at 1,000 ft Spacing
Slide 14: Delaware Basin Wolfcamp Co-Development Strategy
Delaware Basin Wolfcamp Co-Development Strategy Maximizing Value Creation Through Package Development Wolfcamp Avg. 6 Mo. Cumulative Production Disciplined Co-Development Strategy Boe/ft 38 • Package Development Guided by Premium Hurdle Rate 34 36 33 • Improving Performance Through Precision Targeti
Slide 15: Peer Leading Delaware Basin Performance
Peer Leading Delaware Basin Performance Well Cost Breakeven Price $ Oil Price Required for NPV10 EOG ~30% Lower than Peer Avg. EOG ~25% Lower than Peer Avg. EOG EOG A B C D E F Peer G H I J EOG EOG A B C D E F Peer G H I J Avg. Avg. 3Q 2024 15 Note: Peers include CIVI, COP, CPE, CTRA, CVX, DVN, MTDR
Slide 16: 2023 Sustainability Report Highlights
2023 Sustainability Report Highlights Environment Social Governance Emissions Performance Culture is Our Competitive Advantage Executive Compensation Tied to Safety and Environmental Performance1 0.04% methane emissions percentage Achieved Target of 0.06% Safety Environmental • total recordable • oi
Slide 17: Environmental Ambitions & Strategy
Environmental Ambitions & Strategy Dedicated to Being a Responsible Operator and Part of the Long-Term Energy Solution Net Zero Ambition1,2 Emissions Reduction Pathways 2025 Targets and Achievements2 REDUCE CAPTURE OFFSET 13.5 • Achieved zero • Launched carbon capture • Evaluating projects and GHG I
Slide 18: Sustainable Value Creation Through Industry Cycles
Sustainable Value Creation Through Industry Cycles Capital Discipline Operational Excellence Sustainability EOG Culture At the foundation of EOG’s historical and future success are the employees who embrace and embody the EOG culture. The company’s decentralized, non-bureaucratic structure enables v
Slide 19: Supplemental Information
Supplemental Information Adjusted Cash Flow Per Share (CFPS): cash provided by operating activities before changes in working capital divided by average diluted shares. Commodity Price Sensitivities: each $1 per bbl increase or decrease in wellhead crude oil and condensate price, combined with the e
Slide 20: Copyright; Assumption of Risk; Cautionary Notices
Copyright; Assumption of Risk: Copyright 2024. This presentation and the contents of this presentation have been copyrighted by EOG Resources, Inc. (EOG). All rights reserved. Copying of this presentation is forbidden without the prior written consent of EOG. Information in this presentation is prov