Slide 1: 2Q 2023 Earnings Presentation
2Q 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: 2Q 2023 Results & Highlights
2Q 2023 Results & Highlights Outstanding Operational and Financial Results - 2Q 2023 Volumes, Capex, and Per-Unit Cash Operating Costs Better than Guidance1 - Strong U.S. Oil Price Realization of $1.23/bbl Above WTI - 2Q 2023 Adjusted Net Income2 of $1.5 Bn and $2.49 Adjusted EPS2 - Last 12 Months R
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 on Long-Term Value Creation 2023E Free Cash Flow @ $75 WTI Sustainable Dividend Growth $4.6 Bn1 - Primary Mode of Cash Return to Shareholders - 2023 Regular D
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 $3.00 Strong Track Record of Delivering Cash T
Slide 6: A Growing Portfolio of Low-Cost, High-Return Resources
A Growing Portfolio of Low-Cost, High-Return Resources1 Multi-Decade Premium Resource Poised to Further Improve ROCE2 & Free Cash Flow3 Finding & Development Cost ($/BOE)4 $10 Invest to Improve the Business - Premium Hurdle Rate of 30% Direct ATROR3,5 @ Flat $40 Oil & $2.50 Natural Gas $8 - Low F&D
Slide 7: Premium Development Improves Finding & Development Cost and Drives Down DD&A
Premium Development Improves Finding & Development Cost and Drives Down DD&A Finding & Development Cost ($/Boe) 1 Depreciation, Depletion & Amortization ($/Boe) $12.93 $18.43 $10.69 $5.13 Premium Drilling Premium Drilling (1) All-in Total, Excluding Revisions Due to Price. See accompanying schedules
Slide 8: Lower Cost Basis Results in Higher Operating Margins
Lower Cost Basis Results in Higher Operating Margins Operating Cost excl. Taxes & Interest ($/Boe) 1 Operating Margins at Constant Price ($/Boe)2 $19.40 $32.66 $8.04 $22.59 Premium Drilling Premium Drilling (1) LOE, Transportation, Gathering & Processing, G&A (non-GAAP), DD&A and Total Exploration C
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 36+ 33 34 Gas NGL 23 Oil 11 2021 2022 2023E Completed Wells by Target Wolfcamp Combo Wolfcamp M 2022 Performance is Significantly Hig
Slide 11: Operational Efficiencies Drive Competitive Returns in EOG's Emerging Plays
Operational Efficiencies Drive Competitive Returns in EOG’s Emerging Plays Average Drilling Feet Per Day 4,000 3,000 2,230' 2,000 Wolfcamp 1,475' 2023 YTD 1,245' 1,270' 1,000 0 2021 202120222022 2023 Record 2023 Record 2021 2022 2023 Record 2021 2022 2023 Record YTD YTD Well Well YTD Well YTD Well S
Slide 12: Applying Proprietary Technology and Designs to Lower Costs and Increase Returns
Applying Proprietary Technology and Designs to Lower Costs and Increase Returns Drilling Analytics Precision Targeting Drilling Fluid Drilling Motor Program Bits and Cutters In-House Proprietary 90%+ In-Zone Achieved In-House Mud In-House Quality Assurance Application-Specific Apps for Detailed Dril
Slide 13: ESG Ambitions & Strategy
ESG Ambitions & Strategy Dedicated to Being a Responsible Operator and Part of the Long-Term Energy Solution ACHIEVED 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 20
Slide 14: Strong 2022 Emissions Results Exceeded Near-Term Targets
Strong 2022 Emissions Results Exceeded Near-Term Targets EMISSIONS Scope 1 GHG Intensity Rate1,2 Wellhead Gas 17.7 99.9% Capture Rate 15.0 13.6 14.0 13.3 13.5 WATER 9% 14% 2018 2019 2020 2021 2022 2025 Target 36% 28% Scope 1 Methane Emissions Percentage2,3 0.22% 0.12% 55% 58% 0.08% 0.06% 0.06% 0.04%
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 ✓ Decentralized / ✓ Innovative / ✓ Safety, Environment, Culture Non-Bureaucratic Entrepreneurial & 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