Slide 1: 1Q 2024 Earnings Presentation
1Q 2024 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 Capital Discipline • Premium Hurdle Rate Guides Returns-Focused Investments1,2 EOG is focused on being among • Pristine Balance Sheet and Significant Free Cash Flow2,3 Generation the highest return, lowest cost, • Sustainable, Growing Regular Divide
Slide 3: 1Q 2024 Results & Highlights
1Q 2024 Results & Highlights Strong Operational Execution • Delivered Oil and Total Production Volumes Above Targets1 • Total Per-Unit Cash Operating Costs Below Target1 • Strong Production from Existing Utica Packages • Deferred Dorado Gas Growth to 2H 2024 Outstanding Financial Results • Adjusted
Slide 4: Premium Investment Supports Through-Cycle Profitability
Premium Investment Supports Through-Cycle Profitability Premium Investment Strategy Improves Oil Price Required for 10% ROCE1,6 ROCE1 and Free Cash Flow2 Generation $85 • Premium Hurdle Rate of 30% Direct ATROR3,4 at Flat $40 Oil & $2.50 Natural Gas $44 • Significant Reduction in Oil Price Required
Slide 5: Delivering on Cash Return Commitment
Delivering on Cash Return Commitment Minimum 70% of Annual Free Cash Flow1 Committed to Shareholders Sustainable Regular Dividend Growth Annual Free Cash Flow1 • Regular Dividend Rate Increased 10% for 20242 $80 WTI & $2.50 HH • • Regular Dividend Yield Leads Broader S&P 500 Average3 Primary Mode of
Slide 6: Committed to Sustainable, Growing Regular Dividend
Committed to Sustainable, Growing Regular Dividend Regular Dividend is a $2.1 Bn Annual Cash Return Commitment to Shareholders1 $3.64 26 Years of Stable and Growing Regular Dividend Strong Track Record of Delivering Cash to Shareholders Through Price Cycles • Regular Dividend Rate Increased 10% for
Slide 7: EOG Regular Dividend Competes Across Sectors
EOG Regular Dividend Competes Across Sectors Regular Dividend Primary Mode of Cash Return to Shareholders Regular Dividend Yield % 3.1% 2.9% 2.9% 2.8% 2.2% 2.1% 1.5% 1.5% 1.5% 1.3% 1.2% 1.1% 0.9% 0.7% Consumer Staples Materials Communication Real Estate EOG Discretionary Oilfield Services Industrial
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 Significant Generation Free Cash Flow 2 $22 Bn $21 Bn $18 Bn Cumulative FCF 20
Slide 9: 2024 Plan – Disciplined, Capital Efficient Reinvestment Across Multi-Basin Portfolio
2024 Plan – Disciplined, Capital Efficient Reinvestment Across Multi-Basin Portfolio Oil Production Total Production Capital Program Mbopd Mboepd $Billion 4891 1,0441 476 985 $6.2 All-In Investment $6.0 • Strategic $0.4 $0.2 Infrastructure +3% +6% $5.8 $5.8 • Environmental <$0.1 $0.1 2023 2024E 2023
Slide 10: 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 – 2H
Slide 11: Gas Sales Agreements Provide Pricing Diversification
Gas Sales Agreements Provide Pricing Diversification Brent-Linked Gas Sales Agreement Sales Volumes3 • Sales volumes of 140 K MMBtu per day linked to Brent K MMBtu per day • Additional 40 K 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: Strong Utica Results Confirm Premium Play
Strong Utica Results Confirm Premium Play Utica Packages Deliver Strong Production with Significant Liquids Contribution Utica Type Curve & Package Performance Timberwolf (Aug ‘23) 180 Day Cumulative Production, MBoe1 4 Wells at 1,000 ft Spacing 500 Avg. IP30: 2,150 Boed 55% Oil, 85% Liquids 450 Xav
Slide 13: EOG Utica Well Productivity Competitive with Permian Basin
EOG Utica Well Productivity Competitive with Permian Basin Industry Well Oil Production by County1 Industry Well Total Production by County1 6 Month BO/Ft 6 Month BOE/Ft2 16.8 15.9 25.8 25.1 14.8 14.7 23.1 21.8 20.9 20.3 19.0 11.3 10.9 10.7 10.4 10.2 10.1 10.1 9.7 9.4 14.7 8.7 8.1 13.3 7.6 12.4 12.4
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. 1Q 2024 15 Note: Peers include CIVI, COP, CPE, CTRA, CVX, DVN, MTDR
Slide 16: ESG Ambitions & Strategy
ESG Ambitions & Strategy Dedicated to Being a Responsible Operator and Part of the Long-Term Energy Solution ACHIEVED NEAR–TERM 2025 EMISSIONS TARGETS NET ZERO AMBITION 13.5 0.06% ZERO NET ZERO GHG intensity methane emissions routine flaring Scope 1 and Scope 2 GHG rate1,2 in 2022 percentage2,3 in 2
Slide 17: Strong 2023 ESG Performance
Strong 2023 ESG Performance Emissions Scope 1 GHG Intensity Rate1,2 17.7 ~99.9% Wellhead Gas Capture Rate 15.0 14.0 Safety 13.6 13.3 ~13.2 13.5 -10% Total Recordable Incident Rate4 2018 2019 2020 2021 2022 2023E 2025 Target Water Delaware Basin Scope 1 Methane Emissions Percentage2,3 Less than 1% Fr
Slide 18: Peer Leading Methane Emissions Performance
Peer Leading Methane Emissions Performance Scope 1 AXPC Methane Emissions Intensity Metric tons CH4 / MBoe A EOG EOG B C D E F G H I J K L M N Peer O P Q R S T Avg. Note: The chart above is based on company reports and the American Exploration and Production Council (AXPC) ESG metrics framework repo
Slide 19: 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 20: Copyright; Assumption of Risk and Forward-Looking Statements
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