Slide 1: 4Q 2023 Earnings Presentation
4Q 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 Capital Discipline • Premium Hurdle Rate Guides Returns-Focused Investments1,2 EOG is focused on being among • Pristine Balance Sheet and Significant Free Cash Flow 2,3 Generation • Sustainable, Growing Regular Dividend Anchors Commitment to Return
Slide 3: 2023 Results and Highlights
2023 Results and Highlights Delivered Shareholder Value Through Differentiated Execution • Realized 31% ROCE1,2 at $78 WTI • Delivered Oil and Total Production Volumes • Earned $6.8 Bn or $11.69/Share of Adjusted on Target and on Budget6 Net Income1 • Reduced Cash Operating Costs and DD&A • Generate
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 $86 • 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: 3-Year Scenario Provides Visibility to Shareholder Value Potential
3-Year Scenario Provides Visibility to Shareholder Value Potential 3-Year Scenario: 2024-20261 Cumulative Free Cash Flow2 $Billion Significant Free Cash Flow2 $12-$22 Bn Cumulative FCF Generation Cumulative FCF $85 WTI & $3.25 HH Cumulative FCF $65 WTI & $3.25 HH Actual Cumulative FCF 20-30% Avg. RO
Slide 6: 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 1,0491 476 985 $6.2 All-In Investment $6.0 • Strategic $0.2 $0.4 Infrastructure +3% +7% $5.8 $5.8 • Environmental <$0.1 $0.1 2023 2024E 2023
Slide 7: 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 8: Gas Sales Agreements Provide Pricing Diversification
Gas Sales Agreements Provide Pricing Diversification Nearly 1 Bcfd of Firm Sales Tied to LNG Export Pricing 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 inde
Slide 9: Peer Leading 2023 US Price Realizations
Peer Leading 2023 US Price Realizations1 Oil Price Realization, $/BBL Gas Price Realization, $/MCF NGL Price Realization, $/BBL $79 $76 $23 $21 $2.70 $2.00 Peer Average Oil EOG Peer Average Gas EOG Peer Average NGL EOG 4Q 2023 9 (1) Data sourced from company filings. 2023 peer average excludes peers
Slide 10: Significant Free Cash Flow With Low Breakeven
Significant Free Cash Flow1,2 With Low Breakeven 2024 Capital Program Generates $4.8 Bn Free Cash Flow1,2 at $75 WTI $75 WTI & $2.50 HH $1.4 Bn $4.8 Bn $1.3 Bn Free Cash Flow1,2 $5.1 Bn FCF1,4 $2.1 Bn $6.2 Bn2 $6.2 Bn2 $6.2 Capital Bn1 Program $45 WTI Breakeven Capital Program Committed Cash Return
Slide 11: Free Cash Flow Priorities Drive Long-Term Shareholder Value
Free Cash Flow Priorities Drive Long-Term Shareholder Value Sustainable Regular Dividend Growth • Regular Dividend Rate Increased 10% for 20242 CASH RETURN • Regular Dividend Yield Leads Broader S&P 500 Average3 • Primary Mode of Cash Return to Shareholders COMMITMENT Pristine Balance Sheet • Compet
Slide 12: 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 13: EOG Regular Dividend Competes Across Sectors
EOG Regular Dividend Competes Across Sectors Regular Dividend Primary Mode of Cash Return to Shareholders Regular Dividend Yield % 4.4% 3.9% 3.2% 2.9% 2.8% 2.4% 2.2% 2.1% 1.9% 1.6% 1.5% Materials 0.9% 0.8% 0.7% Oilfield Services EOG Real Estate Consumer Staples Industrials 500 EOG Healthcare Informa
Slide 14: EOG Leads 2023 "Thousand Club"
EOG Leads 2023 “Thousand Club” 600 Wells with 30-Day Peak Rate > 1,000 Boed Wells in “Thousand Club” Well Count EOG EOG A B C D E F G H I J K L M N O P Q R S Note: Data sourced from AllianceBernstein Research as of February 12, 2024. Thousand Club includes wells with peak 30-day production over 1,00
Slide 15: 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 16: 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. 4Q 2023 16 Note: Peers include CIVI, COP, CPE, CTRA, CVX, DVN, MTDR
Slide 17: Strong Utica Results Confirm Premium Play
Strong Utica Results Confirm Premium Play 20 Net Completions Planned in 2024 vs 6 Net Completions in 2023 Utica Package Results Utica Type Curve & Package Performance 90 Day Cumulative Production, MBoe Timberwolf (Aug ‘23) 4 Wells at 1,000 ft Spacing 300 Avg. IP30: 2,150 Boed 55% Oil, 85% Liquids 25
Slide 18: 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 19: 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 20: 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 21: 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 22: 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