Eog Resources, Inc. · NYSE:EOG
Eog Resources — Q4 2024 Earnings Presentation
20 slides from Eog Resources's earnings presentation, Feb 28, 2025
Slide 1: 4Q 2024 Earnings Presentation
4Q 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 • Returns-Focused Investments Guided by Bottom-Cycle Prices EOG is focused on being among the • Pristine Balance Sheet and Significant Free Cash Flow1 Generation • Sustainable, Growing Regular Dividend Anchors Commitment to Return
Slide 3: 2024 Results and Highlights
2024 Results and Highlights Another Solid Year of Delivering the EOG Value Proposition • Realized 25% ROCE1,2 at $76 WTI • Delivered Oil and Total Production Volumes • Earned $6.6 Bn of Adjusted Net Income1 Above Targets and on Budget3 • Delivered $11.62 Adjusted EPS1 and • Reduced Average Well Cost
Slide 4: 2025 Plan: Disciplined Reinvestment Across Multi-Basin Portfolio
2025 Plan: Disciplined Reinvestment Across Multi-Basin Portfolio Plan Delivers Significant Free Cash Flow and Double-Digit ROCE CT E DIR +3% +6% • Flat Activity in Delaware Basin Oil Production Total Production $6.2 Bn1 Growth1 Growth1 • Increasing Activity 20% in Emerging Plays2 Capital Program • C
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: EOG Strategy Delivers Peer Leading Return on Capital Employed
EOG Strategy Delivers Peer Leading Return on Capital Employed <$45 WTI Required for EOG to Deliver 10% ROCE Return on Capital Employed1 EOG Peer Avg.2 36% 27% 28% 25% 23% 16% 14% 12% 2021 2022 2023 2024 (1) Return on Capital Employed calculated using non-GAAP adjusted Net Income. Data for peers sour
Slide 7: Multi-Basin Portfolio of Long Duration, High Return Inventory
Multi-Basin Portfolio of Long Duration, High Return Inventory 10+ Billion Boe of Resource1 Across Portfolio Comprehensive Approach to Developing Acreage Average Direct After-Tax Rate of Return1 for Value Creation Through Industry Cycles For 10+ Bn Boe of Resource1 • Delivers Double Digit ROCE1 at Bo
Slide 8: EOG Culture Delivers Sustainable Operational Efficiencies Across Multi-Basin Portfolio
EOG Culture Delivers Sustainable Operational Efficiencies Across Multi-Basin Portfolio Powder River Basin 5% 50%+ Drilled Ft/Day Completed Ft/Day Utica Play 50% 5% Drilled Ft/Day Completed Ft/Day EOG’s decentralized structure provides a broad footprint for learnings, innovation, Delaware Basin & tec
Slide 9: Marketing Strategy Captures Premium Gas Markets
Marketing Strategy Captures Premium Gas Markets Strategic Infrastructure and Transport Agreements Support EOG Connectivity to Improved Pricing Margin Enhancement and Peer Leading Price Realizations NEW Delaware Basin – Janus Gas Processing Plant MEXICO NTX/ETX • Janus Gas Processing Plant to Matterh
Slide 10: Gas Sales Agreements Provide Pricing Diversification
Gas Sales Agreements Provide Pricing Diversification Brent-Linked Gas Sales Agreement Gross 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
Slide 11: Peer Leading 2024 US Price Realizations
Peer Leading 2024 US Price Realizations1 ~$3.15/Bbl. Higher than Peer Avg. ~$1.15/Mcf Higher than Peer Avg. ~$2.70/Bbl. Higher than Peer Avg. $77.42 $74.25 $23.40 $20.71 $1.99 $0.86 Peer Average EOG Oil Peer Average EOG EOG Peer Average EOG NGL Oil Price Realization, $/Bbl. Gas Price Realization, $/
Slide 12: Strong Execution Delivers Outstanding 2024 Results
Strong Execution Delivers Outstanding 2024 Results Operational Excellence Increased By Reduced By Cash Reduced by Total Average Production 8% Well Costs 6% Operating Costs1,2 2% Outstanding Financial Metrics Cash Achieved Average Less Than Return on Delivered Recycle Ratio1 4.5x Payback Period 1 Yea
Slide 13: 27 Years of Sustainable, Growing Regular Dividend
27 Years of Sustainable, Growing Regular Dividend Regular Dividend is a $2.2 Bn Cash Return Commitment for 20251 $3.90 Regular Increased Dividend Rate For 20251 7% EOG’s Regular Dividend CAGR 2X Peer2 Avg. Since 2019 1 2002 2007 2012 2017 1999 2000 2001 2003 2004 2005 2006 2008 2009 2010 2011 2013 2
Slide 14: Strong Cash Return Delivers Shareholder Value
Strong Cash Return Delivers Shareholder Value Returned 98% of 2024 Annual Free Cash Flow1 Cash Return to Shareholders EOG Record Cash Return Share Repurchases1 $5.1 Bn $5.3 Bn Special Dividends Regular Dividends $4.4 Bn $1.0 Bn $3.2 Bn $3.3 Bn $2.7 Bn $1.5 Bn $1.8 Bn $0.8 Bn $1.9 Bn $2.1 Bn $1.8 Bn
Slide 15: 3-Year Scenario: Visibility to Strong Shareholder Value Creation
3-Year Scenario: Visibility to Strong Shareholder Value Creation 2024-2026 Scenario Key Metrics1 Higher Free Cash Flow $65 - $85 WTI Range at Similar Prices Scenario Published February 2024 Cumulative Free Cash Flow2 Cumulative Free Cash Flow2 $12-$22 Bn Significant Generation Free Cash Flow 2 $22 B
Slide 16: Differentiated Approach to Delaware Basin Development
Differentiated Approach to Delaware Basin Development Leveraging Core Competencies to Drive Industry Leading Results SUBSURFACE EXPERTISE OPERATIONAL EXCELLENCE LEADING ECONOMICS Extensive Subsurface Expertise Drives Operational Excellence Compounds Peer Leading Breakeven Price1 Optimal, High-Return
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. Cash Recycle Ratio: calculated as cash flow from operations before changes in working capital (non-GAAP) ($11,593 MM) divided by to
Slide 20: Copyright; Assumption of Risk; Cautionary Notice
Copyright; Assumption of Risk: Copyright 2025. 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