Slide 1: 2Q 2024 Earnings Presentation
2Q 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 Investments1,2 EOG is focused on being among • Pristine Balance Sheet and Significant Free Cash Flow2,3 Generation • Sustainable, Growing Regular Dividend Anchors Commitment to Return t
Slide 3: 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 4: 2Q 2024 Results & Highlights
2Q 2024 Results & Highlights Outstanding Operational Execution Strong Financial Results • Oil & Total Production Volumes Above Targets1 • Adjusted Net Income of $1.8 Bn3 • Per-Unit Operating Costs Below Targets1 • $3.16 Adjusted EPS3 and $5.32 Adjusted CFPS3,4 • Marketing Strategy Captures New Premi
Slide 5: Updated 2024 Plan: Higher Free Cash Flow
Updated 2024 Plan: Higher Free Cash Flow1,2,3 Raised Full-Year Volume Targets with Unchanged Capital Program Full-Year Guidance Update Increased Full-Year Free Cash Flow Estimate1,2,3 $80 WTI & $2.50 HH Oil Volumes1 +1,800 BOPD NGL Volumes1 +10,000 BPD $5.7 Bn $100 MM+ Increase Free Cash Flow1,2,3 t
Slide 6: Delivering on Free Cash Flow Priorities
Delivering on Free Cash Flow Priorities Minimum 70% of Annual Free Cash Flow1 Committed to Shareholders Sustainable Regular Dividend Growth Annual Free Cash Flow1 • Regular Dividend is a $2.1 Bn Annual Cash Return $80 WTI & $2.50 HH • Commitment to Shareholders2 Regular Dividend Yield Leads Broader
Slide 7: 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 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 Cumulative FCF $18 Bn 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 – 2H
Slide 10: Marketing Strategy Captures New Premium Gas Markets
Marketing Strategy Captures New 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 S
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 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 agre
Slide 12: Strong Utica Results Confirm Premium Play
Strong Utica Results Confirm Premium Play Utica Packages Deliver Solid Production with Significant Liquids Contribution Timberwolf (Aug ‘23) Executing on Utica 2024 Plan 4 Wells at 1,000 ft Spacing Avg. IP30: 2,150 Boed • Consistent North Utica Package Results at 55% Oil, 85% Liquids Tighter Spacing
Slide 13: 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 14: 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. 2Q 2024 14 Note: Peers include CIVI, COP, CPE, CTRA, CVX, DVN, MTDR
Slide 15: 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 16: 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 17: 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 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: Copyright; Assumption of Risk and Cautionary Notice
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