EOG Resources (EOG) 5 May 232023 Q1 Earnings call transcript

Good day, everyone. And welcome to the EOG Resources First Quarter 2023 Earnings Results Conference Call.

As a reminder, this call is being recorded.

At this time, for opening remarks and introductions, I would like to turn the call over to Chief Financial Officer of EOG Resources, Mr. Tim Driggers. sir. ahead, go Please

forward-looking good forward-looking for cause statements. differ EOG’s in results and the outlined conference release earnings our us. call to and our those from includes Factors filings. materially have morning. you been joining in Thanks SEC This actual statements Thank that could

non-GAAP certain found be on website. also This measures. and can conference contains call reconciliation measures Definitions financial non-GAAP schedules for these EOG’s

resource reserve estimates reporting potential on this not may accordance call in estimated estimated guidelines. reserve the conference reserves include with and of potential SEC’s calculated necessarily Some the

Ezra Participating and Chairman VP, Investor on Marketing; the Boedeker, Jeff call this Officer; Production; Operating Relations. Exploration CEO; morning EVP, President VP, are Lance Helms, EVP, David and Senior Production; Yacob, Leitzell, and Billy Streit, Ken Exploration and Chief and Terveen,

is Ezra. Here

costs quarter in morning, Tim. team deliver our performance multi-basin Good Thanks, company our quarter. excellent Production, has Strong XXXX. during exceptional targets, CapEx, DD&A across financial the everyone. to from operating first the operating all positioned beat and portfolio which results underpinned every execution first cash

of through net regular special We cash billion the during helped dividends, to share year-to-date billion $X.X Free cash adjusted cash of $X.X income flow fund $X.X and return of repurchases executed shareholders of a earned combination free billion generated flow. and and first quarter.

XXXX of estimated to billion to price. $X.X our return shareholders oil cash our with committed an or dividend, year full about XXXX have Combined flow $XX XX% we regular in assuming free

achieve We to annual minimum cash return are target of our shareholders. of to free way our XX% flow well on

the multi-basin demonstrate results EOG’s quarter portfolio. first of Our value

spans natural basins low of throughout cost, the that oil, and combo dry decades gas have country. high return We inventory

than steady the to the while company Ford decade operating a of continues Basin, pace. Eagle asset at a Delaware in more of deliver exceptional delivering largest Our results top the area returns. return high our remains After includes drilling, portfolio and is activity which tier

continue EOG’s contribute high while we laying River Combo performance investment. emerging core to which Powder invest Utica in foundational future South Basin, the years And to assets, today, Ohio financial of return plays, beyond these and Dorado for our groundwork also Texas

flexibility it pace better. optionality provides minimize our get invest investments and It at allows to that portfolio to impacts develop with from a to actively asset provides each Our manage discipline to inflation.

portfolio to our netbacks. pursue us to of Diversity market enabling investment also options, the sales highest translates diverse

financial shareholders shift an result swings to short-term several The that Our have ago drilling market. in deliver EOG’s value has premium ability to to performance is helped come expect long-term our years performance the that the operational and and to decouple consistent, from cycle. through drives

the continues risk and near-term outlook of to prices drive month-to-month. demand for oil Recession volatility

the reach However, on demand supply to last remain has increase moderated we year, constructive near projects our upstream pricing. from reduced to inventory pre-pandemic average through in are remains by outlook and continues positive, five-year progress global we several of future levels term, the record the the with investment currently growth. as years, Longer forecast is and year-end reducing levels levels new

high during reflect this winter LNG due Freeport. reduced prices and repairs inventory year’s gas, For demand North levels near-term American to at warm

As such, options to currently activity at Dorado. delay we are some evaluating

to record with natural U.S. however, under strengthen. XXXX expected is position X continues and demand market. construction should a LNG an gas, capacity The for a as in XXXX medium- the or to startup day global at the additional FID U.S. that between outlook long-term Currently, LNG with leader Bcf levels, through

free to potential and demonstrated capital for business our cash our outlook expand breakeven lower return of allocation high flow the Our in decisions is confidence the the by Disciplined quarter. in continues first in our reinvestment inventory EOG. our

utilized technology in by significant our people sheet regular the has years repurchase a quarter our free to flow am market on to confident the XXX% assets, the in authorization EOG stock nearly capital worth $XXX of return and cash paid during come. to I we the million out capital strengthened of deliver for back buy and dividends, and debt, retiring balance dislocation. and We of late special both return

In assets, Basin, and a the flow why moment, Ford Combo Billy and the why South believe making we the provide our will will we our are and ahead, foundational progress in Texas higher Ohio about Dorado. free assets discuss Utica and excited Powder cash Delaware margins River we in remain Basin emerging in Eagle returns, years

But first, here’s Tim review to position. our financial

billion of in free and with $X.X of Ezra. We in Timing first cash quarter. adjusted of million the inflow performance or quarter. cash generated for Thanks, per an working income differences accounted additional flow. capital outstanding net produced $X.XX share $XXX EOG financial billion the $X.X associated

the outstanding to driven operating to limit just oil X% X% $XX.XX BOE, increase was decline increased for more a results quarter target. billion offset the headwinds the rate. in by to DD&A costs Our financial operating overall. or Compared $X.X year, of Capital in cash came per unit below per performance. quarter million the mitigated the We expenditures prior strong than of XX% most were by volumes which production inflationary in with first X% $XXX and

cash and remain Our framework cash return consistent. longstanding free flow priorities

balance growth, low additional Our cost a return priorities dividend and sheet, cash are property sustainable bolt-ons. regular options pristine

to of special the the free believe minimum our the to framework to value long-term priorities free consistent application through XX% positions opportunistic cycle. shareholders return the and repurchases. shareholder annual regular and a dividends cash through flow We cash flow We sustainable of return cash are company our transparent share committed dividend, create of

of $X.XX cash bond the position billion, leaving a the $XXX next million hand of billion strengthened balance December XXXX. Cash sheet. a The million is from bond on we maturity $X.X net cash paying $X with was debt up XX. off due at by maturity on March, $X.X at the end April billion yielding of a billion, the balance $XXX quarter In sheet

the increase year level. February. dividend $X.XXX also regular annual rate last $X and $X.XX annual March of paid second a is per On commitment. special from share, per a a prior as same declared declared share dividend in Board our $X.X billion XX, the the The Yesterday, XX% we quarter

EOG also stock per at $XXX first $XXX share. average quarter repurchased the of in of price million an

several significant days business. the accretive able were last utilize highly strong boost two location volatility of the to our stock sheet created We the shares weeks during of March, repurchase the between market of a our price prices. For at and value to balance

value will market to again We stock dislocations. and of you and are into there us should the the monitor step significant to our expect continue price when

start of flow. annual deliver of return a XX% free off to of strong minimum are to year on cash cash very a in XXXX We our commitment full

XX% the full the dividend flow buyback, $X.X cash billion first the oil of forecast free and Altogether, which XXXX along billion of represents price. regular $X.X return, year for assuming $XX with dividend quarter cash we is about an of special

continue remain year. gas rest and over cash forward we prices and to to commitment monitor updating return to will and of you on going delivering oil committed our the the We look forward

discuss Billy to operations. Here’s

Thanks, continues results. to with the quarter Tim. operating EOG’s improve first performance generating outstanding

quarter in than first per targets. capital better unit came operating cost performance cash Our total forecasted our volume, and expenditures

employees like giving to for a dedication start us thank I’d execution, our to and XXXX. outstanding their great

production $X deliver program and and production capital billion plans total volume growth to oil forecast X% are capital XXXX growth. X% year full unchanged. Our We a

Eagle quarter year We from Ford. maintained in the and pace Delaware of Basin fourth last of the the activity

to Our in activity and play emerging Ohio productivity plays. each performance Utica River portfolio core expectations South support plays as innovation. or beating Dorado are expand foundational our and sufficient development sustains Texas to Powder Well continue cost Basin, and our meeting combo across continued

inflation. performing As core to activity well the exceptionally operational plays big Ezra areas is foundational these are overall and part and of one Sustaining strong Delaware of level consistent in driving Ford first a improvements a were mentioned, our and offset to Eagle of primary of quarter hedges our the in continues be results. assets Basin cost

in are excited years these ahead. about for the We assets outlook the

these assets of as leverage mature, and efficiencies can the innovation operating and apply Even assets. prior margin to to world-class capital technical these learnings, investments operational improve continue infrastructure we

and we premium year, production of equivalent Basin, to Delaware this about our Delaware wells are year. See returns of the hurdle investor XX well improve this slide delivered our per Last six-month the XX and above expected barrels rate. updated to well Wolfcamp details. presentation average oil improve continue cumulative In will an foot year, delivering performance productivity of expect for

contribution NGLs natural While oil, improving impact and to relative the due of completion innovations overall performance design. is well in like our continued mix can gas, large part new

of wells We recovery that have XX% in are an now the in the XX% with year targets estimated completion ultimate using increase uplift our average first a and the wells previous similar compared production, tested XX to the yielding design. in Wolfcamp

and is design different new this XX expand we of as This the expect the about basins. results, new promise, continuing and year. now deploy encouraging wells design these test to across With number wells design we this on show to targets

quarter level Delaware motor drilling our a XX% activity to compared continuous of aided motor amount first footage and maintaining of year. performance generating as consistent of the continue our in last and peer-leading with generating program to staff. per times results. improvement by by noticeable Operationally, improve Drilling the high-performing is culture The drilled Basin, run in are combined improved

expected surface resource Similar our that stacked These significant drive to in of an continue progress super expansion efficiency footprint is the and co-developed Basin combined come. opportunities infrastructure our targets the in achieved with multiple with pay years Delaware technique. our operations with to are the for being completion and margins using zipper efforts, to our gains existing the improve by

we its have use the efficiency doubled introduced feet The Eagle by first super first in day. completion completions -- we XXXX. as play expanded then, zipper throughout have completed per lateral technique in more Ford than the Since measured the and

slides, XX the year. increased year-to-date to quarterly of of As compared by completed our on day another indicated has XX% per investor last lateral page amount

over Eagle In feet also a depth longest to-date, a lateral of the our first of XX,XXX Ford, nearly reaching record in measure the drilling set XX,XXX we with feet. length quarter, well a

Eagle where expect X-plus feasible. efficiency completion in We Ford as miles to to laterals extend improvements to the we continue see

decade, from benefits lowers more costs. been and existing Ford X,XXX CapEx minimizes over core that made producing strategic investments existing also needs a operating the area operating As wells. in gas our future has than infrastructure from oil infrastructure development Eagle Leveraging and under for water, a

to our decade drilling inventory continue highest return base, was breakevens. high and allowing maintain Ongoing Ford, the to costs operations the completion returns to year, decline. Ford in over term, Ford’s Longer while improvements the history. existing Eagle have enable Eagle the finding leveraging lowering production us of development the current rate to Last plays of infrastructure, Eagle the and we in a benefit and generating of

to activity in wells of achieve a plays. This eight emerging are newer progressing previously maintaining plan improvements. completed our As order we additional XXXX in compared performance year’s to drive our contemplates plays level and to consistent mentioned, in activity core Dorado

Our the improvement XXXX. are realizing day since XX% per drilling operations a in footage drilled

will operations wells be second conducted Completion the few on in a quarter.

this performance evaluating due additional our exceeding current price Dorado’s operational options is originally early we environment. year completions to are However, scheduled or natural progress delay to gas expectations. towards and improvements later To-date, meeting the well

Activity we in just our of plays. the Utica the combo compounding play witnessing multiple are already technology across yet effects is sharing commencing,

the For program performance recent targeting. wells proprietary results compared to the motor our and on XX% drilling order of to with example, drilling year’s last benefit for of XX% precision is improving

completion the We improvement our completing expect once similar wells program in levels begin we from quarter. third of

little and industry a for on color service inflation costs. Now

plateaued, last plan, that average increase cost anticipated last year witnessed this building to than still year’s should upward had leaves which we inflationary no us in have confident XX% compared our we pressure the appears well more to As year. that

much the signs any Early that would moderation, indicators We are in service tubular more manifest likely some year more prevalent others. costs or is softening be of well and cost in basins cost costs slow cash than until operating of to into and lower service XXXX. expect and less in which showing will later

our areas. costs As to operating look unfolds, the scale our manage across to multi-basin the opportunities to year will and of for we continue all portfolio leverage flexibility

down mitigate inflation remain on sustainable focused performance execution further operational drive improvements and our through and also cost to reductions structure. We cost innovation, highly

Ezra. Now turn to back I it will

like conclusion, important following Thanks, note I’d to Billy. In takeaways. the

in across outstanding First, delivering strong results to XXXX. every exceptional quarter employees our execution. has execution for portfolio with to our great from goes operating first Thanks positioned a multi-basin the team their company deliver

in Basin assets Delaware were quarter exceptionally part of and Ford first performing and well foundational results. our significant our a are Eagle Second, the

of value our Third, first portfolio. performance the demonstrates quarter EOG’s multi-basin

decades inventory cost, have the basins spans of that We country. and oil combo low natural high throughout dry return gas

EOG’s drilling our to several and The from consistent, And an and performance to long-term the shareholders have operational outlook helped the come fourth, gas cycle. market. financial result both and shift to long-term and deliver years premium has performance value ability drives our that remains expect is decouple for ago through in short-term oil that positive, our swings

for Thanks listening.

go now to will We Q&A.

question Thank line you. the Scotiabank. Paul is [Operator Instructions] open. is Cheng line now Our first with Paul, of from your

you. please. Thank Two Good morning, questions, everyone.

is first one think the for probably I Billy.

You well talked good productivity. about the Permian, the

call, I Just the start that increasing several that conference bit have lot can last investor for And a one the you last, that, go your has the in second whether more I little been in in you it, Dorado looking you in especially with mean, to program? do expansion us and and doing curious, detail quarter if months, a say, over ahead of zones and many how the management the more have I have give just you landing targeting think, why asking size you test terms long-term. said, in co-development or think different of you have the are there

So trigger your the change may just in what pace about slightly curious -- on you. that that there’s Thank view development? have maybe your a

Billy. Yeah. Paul, this is

some maybe little have of then And we the some you give program of will I probably help seeing to explain more give a ask Jeff me and highlight there. Permian seeing. what color we improvements Let detailed have the to

forecasted, have of results are with out the the our at forecasted and co-development Permian we our are Overall, just results meeting of curves are modeled including very we planned the had the In as anticipated. all plans, and our or progress type showing. we targets exceeding time. different are plans general, our our results In same pleased playing

maybe we the and bit about of But some new a and to I’d improvements. like seeing talk it turn that to have go now results Jeff ahead the design little and over completion to productivity then the

is Paul, Billy. Yeah. Thanks, this Jeff. Yeah.

really to out our the and design. is design, things productivity or We the completions new say, Delaware have our extremely improving you of happy our big of completion little that’s one with a just give color, should I that improved

stated in life both in Billy XX% productivity uplift the we that’s have of around Wolfcamp an or we to-date, that. in and of the tested as late early So well about the have and XX performance wells seeing so and

also that uplift, will we have I one not that seeing note just in the phase.

Board. gas, both so kind across of We in have and seeing oil the

we really on is wells outstanding this planning this additional these the completing expanded we about with have what So results, XX Wolfcamp in done we year. have and program have

went So our guidance last both going increase to be taken ahead about account a X.X for times and into from plans and year and drilling XXXX. we definitely this

looking this deeper in So lot with success forward formations. design, our a of had

plans some to continue its really formations the to test in team of evaluate Our shallower kind of benefits. to

be bit these that and strategic we design on with have ground. One it we of a this ahead performance the so put observed is type about little cost there’s be design want thing in the increase, that at depending of that uplift and have varying the quickly and a going just And the testing rock the come how mindful with we have target. the we to pace depth does

us new accelerate that operations. Also, the in isn’t tested actually I’d our of down design asset. the first throughout an of in It’s company. helped And the like to our this to Eagle company really is multi-basin transfer It technology EOG. out example just our Ford the point learnings really was

forward success in really that those results have actively to of we we throughout and places emerging Delaware the then have the lastly, year. company And our the with throughout evaluating the testing in all seen Basin, it look

have triggered was was thinking and just together originally other a what of really plan the change acceleration We planned that of it about. everybody a your Paul, activity really, put pace Dorado in to then, the that question on part remind we And huge not for.

wells. eight We adding have only

So the amount of to in growth in start -- plan never with. a contemplated the Dorado huge

multi-basin of move factors portfolio we the or themselves. our on they having However, conditions benefit other can present activity program a market around as on always flexible and that’s with -- based as we remain

that think remaining about natural to might year, prices Dorado weak into explore with only be it’s options the gas with to we Naturally, activity. moving and able

some give scheduled and we the unfolds. to completions exploring were as year later delay more are that We in for will on color that option that the

is The line line Capital your Cheng. Leo, next Partner. Leo you, of is Mariani question Thank open. the ROTH from with now

Yeah. Hi.

lean announced going this. around wanted Just a versus wanted up certainly buyback the no kind very it there once sounds that kind this you mean it’s kind opportunistic Obviously, got buyback to this a the buyback dislocation. situations with only maybe on special like there the going in reasonable it? to of still is follow of the March. little probably I think special I on of more the instead, just bit to confirm about forward guess, speaking, every special of your as the be dividend, while, thinking I kind reserved you is to described buyback generally for dividend. expect was to where new how quarter And in is

is Yes. Yacob. Leo, Ezra Good morning. this

-- it you I pretty well. have think think summarized I that’s

hasn’t really strategy Our changed.

flow are had XX% fiscal return returning annual commitment We be on our XX% committed is our $XX of an to at oil our Year-to-date, free our there. $X.X flow -- would basis. what at as cash cash approximately It’s the year billion. Tim mentioned, free of assumed cash least price

have or flow, distributed dividends, first recall, begins in us, quarters of buybacks. paid special the quarters, have you excess to cash dividend of seven we the as back eight either dividend priority. cash The a will form the regular opportunistic the really with we just said, for return last which the priorities it And free special as come

dominantly were we and we we repurchase saw the stock. crisis with the in banking when was, $XXX saw a quarter able executed a approximately really what step the dislocation we repurchase million to in to associated And of first

out, pointed in you as really So, with our strategy. line

the putting say would is XX company. really the I over months repurchase what changed since the Now last in place of strength has authorization our

proposition, return profile, our company’s investing margins. breakevens lower projects, which our primary expands of to high Our in course, reduces adding is reserves cost value our thereby and

company, as continue we strengthen to so we consider to as strategy continue execute evolves dislocations this way well. the and on And certainly we the

I And any Utica. of helpful. more update if there’s wanted That’s to Okay. the see robust a on just

rolled guys that I think the last of time kind out. you

wells on of I four fair think had with you production history. bit a

Just more and this at of thoughts the over point? point this any in prior to the wells of in a at been year get some sense of trying long-term have time around producing I those wells a guess, on for, Utica just performance the

Yeah. Leo, Ken. this is

We operating drilling nicely excellent northern in have We our and actively a this area our Utica on have progressing projects. on progress and year. we rig gathering making program have currently our infrastructure

do really of The four that have in more we our across drilled deliver our completed this areas wells about that talked XXXX to production plan Southern and towards those performance expected continue year results to the the and we drill and end both you and and we wells complete will about North XX year.

Another and to thing position. add low to cost also our note additional for acreage opportunities is to add continue we to look

go next Scott, Hanold you, line question is with the from of please Leo. Scott Thank The ahead. RBC.

were it process off peers, on EOG Ezra, and other intrinsic maybe triggers of us kick that on what value to color Yeah. the on, Thanks. do if the can of you it that decision things is assessments just and some Good generated to there? relative the the give key conversation really move buybacks? could if I morning or the Was back it pivot on quarter. to aggregate buyback congrats was kind valuation like there

Ezra. is opportunities. morning, we the of to Good tune how kind at all accurate This Those of are look Scott. these Yes.

past, kind happening As What’s we the of global domestic macro, in on have the balances. about both of talked and and begins with demand first it right? all, supply

what’s evaluate as business but we entire the both at EOG intrinsic short- versus relative happening. our different peer just do scenarios, to far As see and not for trading pricing we value at group do measure, actually And dislocations the the look peers, go, and we multiples, long-term. of

outlook. And comparison with by last dramatic a was fundamentally oil which the in for felt so we prices, is sell-off from the There be globe. petroleum that across significant made a the saw barrels that was really that there roughly hitting the one the change XXX pullback the in of could on industry supported was associated side summer, announcement pretty market would supply macro that reserves dramatic million be a

not What like fear that side. big from on increased really on forecast really we saw the we potentially already been the a Potentially increased most banking just priced change from in side supported in the triggered crisis, demand first the on has the feel to the an the of fundamentals. was by demand market recession, but really quarter in

didn’t saw pullback created we again we there we shareholders. do that amount market really there when March $XXX value for late step the banking with We to have with think million so and dislocation have into we associated really the there crisis. a the the in in hesitate And significant and of share a market, repurchase and really a able

That’s give you where your underappreciated can just find more of get pricing as my across get to on And of follow-up, things you the or is great. that continue premium of a commodities you the the kind as sense to for you -- tends all think Thanks opportunities the well? raise you that. can I Board. forward, continue as And bar on is us to lost do ahead one look

about Scott. have. to our Thanks question. we think Hey, it’s Yeah. and be just the that -- we is really for morning. excellent, continue mean, it, Good I Lance. The This the capability realizations when

transport position then taken capacity our we the we but When you and think out. about that have, that have multi-basins the just

exceptionally talk lot having all about water important. us the is control the to hear control and a You way

have, further just in can extracting the just would too opportunities. about the and and our transact our you say, walk the I premiums, supply, that think ability definitely I we mean, and realizations with we to then with I very So position as scale price additional think, quickly

with Scott, Thank the next Gruber of line ahead. is question you. The go Scott please from Citigroup.

on and development strategy. looking deck, percentage slowing want the is Good XX will design down the Yes. back selective of M M, this year, in a some. that be Wolfcamp where year layered guidance the After in Wolfcamp morning. here completion back just more you new by M deploy last wells. Wolfcamp be in I circle the slide to the But at or tend that with develop Is co-develop what will reflection impacted Wolfcamp you you to shift more mix? where

Yeah. Scott, this adding -- co-development well to is to it’s high trying what have is, the have targets rate Jeff. Really strategy, we return do with we and in our our straightforward, packages. pretty just of

acreage, geology, And and by driven geology it changes it’s really our across obviously, the quickly. very the

kind strategically our going to from development strategy got what development have dissect we be there. of unit to unit, is So really to

targets we co-develop should some what or we seeing lower Wolfcamp, the achieving deeper by see and the well say, you deck, premium right have we in can over in out and now, of from that the middle, economics those rates there But the tightest I Upper the have and lower of XX and have hurdle in some basin. in Wolfcamp pacing then on our our adding slide XX

just resource ultimately, recovery of Delaware current per mean, just optimize those I finding costs the it’s adding our our approach, So this NPV total barrels and it’s helping Basin below levels. improving that acre,

on design. new color the Got completion it. for some maybe And then one more just

it was dominant be Ford design and developed Eagle new out become Ford. a and out You the how plays? Permian the and the in Eagle Did dominant it it to rolled the some become will in initially your design of rolled can quickly said it

question. great Scott, Yeah.

It first the in Permian. it in It has right geological uplift I with extensive, about, quite the rock see wasn’t see the and as utilized type we XXXX difference it back yeah, as plays. do same Eagle in around the Ford. talked to So, didn’t and the two between -- really but their properties was design, the in we that was

are helping and completion far application, provide as our did really the lower as we costs beneficial well it But time. reduce

yes, and of something that lot as the said, plays. Ford, do employ a So, in it we in there emerging is our I still Eagle

program, increase, the Delaware as I rollout, state, far times to number by our cost sure increase, X.X we want said, As to did quickly outrun we And be a and is also just last slight learnings don’t our we cognizant like did want roll in we that it so plan as I and make to and this to the we we learn. there’s continue out of we technique want what our in year-over-year to year. our how as anything just evolve

with the Thank please next ahead. of from Stifel. is line you. question The Derrick, Derrick Whitfield go

in Good to morning, first CapEx all, expected on cadence XXXX? non-D&C not the answer, better and could Could cadence I in to speak focus projected QX part on questions. thanks With one for coming be to heavier separately, if taking question, than investments wanted my With XXXX. throughout than expected. my throughout QX you comment the you on to two and drivers, of

is Derek, Helms. Billy Yeah. this

to and pushed quarter, for it’s first indirect first XX% the CapEx capital, sticks put it the had was planned under things some higher. our higher yeah, kind quarter the at And a was in way the out mainly quarter. that in original is completion out. our quarter of turned the and little non-drilling plan, a of program we always CapEx second in the about that half, really we occur than the the to to the the scheduled into reason gotten it the quarter second that half be CapEx those of year of our -- half under plays our back program little so That’s the bit XX% in recently so infrastructure the we have the to that’s latter spent be and and for be or kind that first second still first bit and So, to has the target own due on quarter to of

there And activity, super the Great. so, Eagle by with approach? on practical gain limitations of Ford. efficiency like your to are principally you my your this gains the operational completions focus and utilizing pursue zipper driven Is increased could amount on follow-up, I’d in if

to Ken. about. driving Yeah. have team Antonio drive you San of start talked process, to costs been our portion down of that this really is Derek, for by off the several cost crediting in that finding like past every down by Really years. I’d the we improving able on over the efficiency there focusing

few and lateral increasing and the zipper focusing advent our lateral efficiencies targeting with operations in footage do That’s continue lower drilling showing thing day high-return levels and current note have performance more really to that really compared allowed us XX a to can production basis. have in years of conjunction motor years ago. of And and our our lengths, one play to expand completion drill margins. bit on this And a really while a over improve up we improving complete is super in and sustain on to cost

from next line Bank is Doug Leggate Lynch. with Merrill The you. question of of Doug? America the Thank

is Abbott on This morning. for John Good Doug Leggate.

one first -- LNG goals noting you activity into need greater of XXXX? that try to that We But have was this this you questions Our the to going out delay that Dorado. year. year really you play. our economies of in you question understand are potentially coming set to you just size additional to capacity scale on, When that achieve begin exposure have and think scale, get do on

Billy this John, is Yeah. Helms.

to So additional for had from mainly there, planned drilling side. Recently we in activity are bring Dorado, a yes, also completions. increasing we

increase to we job that, seeing has improvement well times, there drilling our excellent an side, of the a and improve there. able are tremendous The costs efficiency would team drilling add efficiencies done just the lower in overall. I our gains just On being

we the and have insights giving with on we continue so what think on pleased results out increased is the have we costs to can drilling very have seeing progress drilling activity playing we that how the forward. going have seeing and side I made into lower well So us we

looking beyond On would with be delay to some second we in have program planned completion have the of quarter. we can have in our on second flexibility the the activity completion ways any the side, we at here that half. wells -- the that, we in But

people other programs in across our some with in combine can the those play sharing we we And thinking Dorado that from have and really equipment, by of our activity how just portfolio. the and about learnings activity leverage learnings

need So then how those evaluating wells, as they the will themselves. and activities complete as roll as are we and in really feel the far present we we don’t jump those for… And options to see but out

guess… I

the …LNG this very it demand, guess, wells are play, of take The a unique -- the I prolific. lot play thing wells. about didn’t

So any in need the capacity ahead would LNG we we that to future. have timing well add of

have areas, the also multi-basin flexibility we Coast. gas then operating from moving other portfolio And the to Gulf of

Dorado is itself the market. the other applying but gas as So don’t simply at through Gulf to got the well arrangements. LNG from just of to our opportunity marketing It’s looking Coast think the players

the which helpful, leads to question. next That’s extremely

program an of play from the longer get about came an Assuming there you not prices, to optimal that or efficiency that do was term? production -- issue long-term? -- think to? how level do gas for does you with I mean, How think that how program activity it big about

Yeah. John, this Ken. is

can… You

Ken. is Yeah. John, this

I Dorado it volumes the generate take real play. significant is think in of lot a doesn’t of that out to wells thing

want learnings. exact outrun at pace pace. we the what right to we we is right know don’t develop But do where to this don’t our want I So the

significant we of that is synergies making progress talked our together dictated and have We going be Billy really learnings. to about outrunning those that operational by not get as development pace so really

next from Thank the you. is line please go Truist. of The Neal with ahead. Dingmann question Neal,

am I you around suggested wondering players? for X,XXX feel wondering I you wondering other versus still Powder My and just much just Thanks am on this premium you one on do first that locations too your the just competes had just this. the I question, morning. heard I your at almost I know time, right. am thoughts Good time. River. how

Yeah. Neal, this is Jeff. No.

We outstanding there finding results the there costs right whole in have lowest that some the have we now Powder seeing in of and the it’s portfolio.

between Powder have about of net premium locations. North, still moving we yeah, then X,XXX kind and full our Basin South So, to undrilled River our up

wells, in getting is there everything we year. are we wells we of up the Mowry XX of also benefits on program, a The have lot this our pace those and were some have completed at Powder. activity by looking which consistent QX performing about expected. as gross seeing two-thirds just So

that, two efficiencies. is three a and which them running frac consistent with two have to really to and spread one -- rigs full push We of their allowing kind

lot about, performance the later And future. Mowry. the And develop in the can as we of we overlying like in confidence then the from in to with and the upper have play that formations just with there, talked overall ahead a and so the also we go the stuff then we data want Niobrara, gather

in additional go we had acquisition in be will think, our that acquired on a the and Evolution. that. I Also, of I -- had. XX-Q, couple the said that should is say infrastructure maybe And we Lance that let things play, noted would be really confidence ahead We

Yeah. No. Jeff. Yeah. Thanks,

acquisition confidence and that system to River a think and when that as our about a we Powder we overlays was investment bolt-on add There’s a acreage. view the to and footprint. that’s plant strategic Basin, there. really that, That million did gathering our southern midstream we $XXX make Just on about just

in a first-class just complements build-out we was existing completed infrastructure asset. it It really when is think have plant our gathering place. XXXX The and this, connections in about gas as we

we value, quickly. plant, because fill as really we that that plant very look load at the So can

we that that operating as also there’s expand versus have confidence very just And the gathering, think but about we see quickly. benefits to long-term expense can as we cash then also parties, we costs, well, redundancy, lowering and processing will third control other

So…

that… Was

thing … the just... last I

mention I that Was well? that would helped well? as plant, little wondering would just bit there with am deeps a that a the there boost as plant deeps you

think the and we about about actually gathering, expense. we When processing transportation think that,

having have we and when control, netbacks. been about our to it’s that we equity So gas it absolutely think going see loading definitely facility with better into

and as competitive. the make about But Southern lowering Basin going the controlling cost River it’s think just absolutely they more Powder the of are acres we and the company more that’s the basis to cost

is you. Thank the with from of Brackett question Bob? line Bernstein. Bob next The

co-development. to the Wolfcamp Back morning. Good

change? versus, get completely all you targets to things Is wells Wolfcamp hitting in the get that equal, seeing to X-plus attributable worse, have being If wells you would better. you have yet design say, the zone, cherry picking expect the best

No. I really, over process our time. it’s a been it’s mean to -- strategy. co-development say attributed I’d it’s

through you I or Obviously, the forward perspective. unique targets look had if unique at say fast Wolfcamp from and of with and changed So XX in spacing the in here, targets. that, has whole in kind to back zone a both strategy six our the we Permian, XXXX vertical we should have up

spacing, this. of the into how those and strategy intervals it, interact, we it. our the taken the maximize economics tested to have to up production then They have they depletion really methodically account to the maximize and related So obviously overall come teams with co-development actual obviously obviously have best the

Great. between co-development it it to the like having logistics driven desire is be, longer by zones a spot I sit driven so guess maximize follow-up one is kit by that of the of more the sounds or would in for just strategy lack that communication time?

really overall -- about resource said. you No. it’s It’s as maximizing there, the

like economics. recovery able do I we have optimal amount maximize the of said, the optimize then actually So that and have really to those we communication

of The you. is with Arun Thank line JPMorgan. Arun, from please next go ahead. Jayaram question the

to wanted back new I completion design. come to morning. the Good Yeah.

to year contemplated this maybe question that tested in the XX to my include plan your have And is, did would you relative or an how the wells to the guide? of on your risk was that XX oil XX% relative reflect and upside that for And you go highlighted to are area same wells curve? wells. uplift XX was type is, calendar and that You the to wells part follow-up or guidance, the to your -- this

Billy. this is Arun, Yeah.

entire seeing, So part in was that of into bake We uplift the amount. guidance. have baked the didn’t actually we our

to there were So uplift. some when we put together our plan, be going we understood that

and wells guidance, plan in calendar see we XX part on that of some of would program baked we knowing into year our that be did have uplift. some that We production to

we surprising uplift guidance bit say into upside, more to would think us I the the but factored is that that’s little already issued. our a I have

far the the as finding then that as doing critical. were what target we is And we there, have

as maximize it rock the have and in economics and we we make sure some through because change very the critical cautiously we and we to this design targets to best it fields across want disciplined be apply a ones why moving little of as on to the areas the does test which play. we we which go understand to bit Jeff don’t, So themselves is works was that more lend type our our program how to cost so saying,

Beehive any timing? on follow-up is, update just my and And Okay. Australia

probably drill Arun, to but able to well going Yeah. in that before of be to drilled. we that Beehive, have we half still be on it’s able first to And… have well, year the excited next get

Thank you.

permits due those …just timing and things. really to kind some on of

Charles The next please Rice. question Charles, Johnson Meade the is from of go with line ahead.

Ken Billy, and Good team there. whole morning, Ezra, the EOG

you you thinking? below falling already just in a the a for Is quick the Dorado, on give ones really keep that some those just just but the premium while. -- your is exclusive, some touching few it couple insight value double of The price is spoken the and common in some I see gas themes think you what to this on recognize want your slowdown, insight the evaluating months for examine [ph] of I aren’t about the can a curve waiting contango have or to me XXX guys that? this natural of about just you or

price, Billy. really on the Charles, bring overall in condition. specific in not a current see just need is to simply more current softness triggered Yeah. we is market the this gas this Certainly, on the conditions it gas but and

term, bullish have near-term market the outlook near-term, very we longer for softness still gas. longer but long-term medium the we understand term, As on we the in talk and

year. we -- we push the different And investment we successfully those value maximizing to just the to flexibility able our company the the the continue in to to options we make to have at be So evaluating flex we have on in over look have sure have long-term. disciplined do and the the back program remain

helpful. That’s one Okay. more then Wolfcamp And quick completion this on just one design.

half and Board you targets across want or three and as -- guys the to work we can now? a shift this it I you XX the I an presumably sense a your of look think, think, make. quarters your last to would is works the about to that not the to right be you going talking or give have But in upside have you got to message, I So quarter confirmed, question, response maybe in that like what’s targets it us you last

it down have This It applying in across. is deeper to with just Wolfcamp the really the the It’s not is targets. again. Permian, primarily geology And size correct. That that all it we does Jeff necessarily applied in we one particularly to. Yeah. looking fits have there Yeah. a when do

that the kind of the through down co-development basically be middle in So a just standpoint. or up would

testing a are those are on we rock shallower Now quite targets, different there but types. few

and So a by we it percentage percentage hate actual kind right will right basis, basis. But you now, be from on area, and an to I’d a it’s evaluating case-by-case area put now say that, it. have of still

Neil? Sachs. from the of with line is Neil question next The you. Goldman Thank Mehta

up the what markets? market perspective you and Yeah. time real you. are realizations, to Good gets morning, in export have what WTI NGLs to curious natural your liquids on I on gas relative the lower. Thank team. where seeing was My on question been trending firm just am obviously,

Yeah. It’s Neil, morning. Lance. Yeah. good

I built out. think you what see continuing that export have positions to getting absolutely the are

on in of think think those to have kind and propane. them of of of kind ethane you we as about think more as kind I more

to propane exports. So healthy see continuing

that. build continue That’s see to the a out. with company We

that’s continuing pool see have think You to to those the be East about as demand the you demand Far demand going barrels. the for

and maybe little of a like more flow is see kind up there, with could today. have to continue prices more seeing be there ethane, what that’s So you of obviously, some gas going term, kind that to longer bit firming

the perspective then And on well. gas as markets your Great. curious guys’ just on

from the in about year? a little see over down perspective, course You potentially moving terms normal a weather bit have here the you from slowing talked the but do of drilling balances a way how in

Yes. Ezra. is Neil, this

As market. global now, of that it of I the made the constructive think piece big amount projects on of with being of especially right still discussed, U.S. LNG the financial have U.S. remarks, kind really really really stated or on record for U.S., term LNG through for gas a in the projects of leader of has scale will it exporting U.S. that be opening kind the and U.S. that still cost the the supply gas combined a longer can we number global that Dorado of in levels the story the We the remain is compete low a captured then additional investment are planned and at the now be final the is a that right which position with kind decision being long-term to

it difficult important is one the on invest term. look to develop it comes highly at really that things pricing always reason And right we Dorado when volatile long pace gas thing the it’s Ken is in the Billy when is Now and because both for we myself, to from have at short-term like the that most this weather. you heard morning

at in of We put not have appropriately the be pretty be be wide. out end here the to our the that our we keep we want is margins to the long-term. in keep to for to that to low our margins able keep producer low because able operating infrastructure invest always want our sure costs, really are low-cost gas the learnings, on make for and exposed to gas to market We the the correct going day, the skinny to U.S. and costs global running

The Thank is next line please ahead. Josh from go UBS. of Josh, Silverstein the question you. with

just sticking with guys. morning, Good gas first. Maybe Thanks. Yeah.

the results. unusually after high over year, the low you you how the end about reporting to think talk your differential quarter Thanks. come gap course what of have even on have in towards an there? may just wide You the the shape Can you for looking first versus that end

our of think, is our have driven, California a like kind then Hey. guidance seen of the diversification our guidance, we we have have and This about Josh. going expect that’s I year of obviously, Yeah, the we you lot a our the with from the And I just so below that were full for gas to exposure. guidance on midpoint we be standpoint. believe when Lance. realization think we

can -- exposure can see supplemental as the our on and Gulf eight, slide exposure that the into then our see have you you we obviously well. slide, Coast We have JKM obviously, large

So we with have that to we hold I have. think the existing going guidance

then have return like from it. for about how past a cash including you balance know as you free You far down from now cash profile, quarters, $X like shareholder Got managing And been would But it just paying of it over standpoint? billion about a think been the have the I few as percentage thinking the Is flow. you billion really the want of there return EOG? $X in to? want quarter. XXX% free over, billion, are cash not of over feels to because cash could it get maturity you certain for Thanks. periods flow or $X cash of you debt level What would the where level cash shareholders first right to if

When with really Josh. that Yes, minimum. mean of it’s but we a just This we XX%, out is minimum a guidance cash that, Ezra. came with return did

deliver a flow last of to through fact, we XX% especially regular In that able compete because when shareholders. almost that kind feel dividend started that, in peer-leading cycles. our we XX%, on free that And year we be cash the returned we we roll with and of confident would excess to this

have that on real a a when for we cash target. about think wouldn’t we specific I So target say hand,

things and far think strategically we a We about have holding cash balance. indicators about spoken some that as as

to we bit business billion cash around to historically, just out what stay are allow is us you of of commercial to a make the The about cycle. depending balance in us $X that’s the at first, of to and of on run like have course, paper, kind point

addition were our that casing then that’s whether mineral can times they counter one hand to or in we year step of like to so investing to approximately in and emerging on or purchased last we in players do strategic where an able line And in Utica, in be the rights. as there actually pipe we acquisition XXX,XXX in opportunities we cyclically and invest do arise, have that, cash at

the the we of exercised first which lastly, repurchase, course, stock then here And just quarter. in

of what hand. talked the to to our cash really utilize have so that you a sheet, part we have you potentially higher includes got balance able carry confidence I has to company and have another step and historically reason done. balance a and strategy, of about do that cash market opportunistically a being can buyback that into strength the the actually than is We dislocated That’s compelling provides the the which that on going really think for reason have

Thank closing or today. over Yacob session you. will additional call That concludes for any our Q&A to turn for I now Mr. back remarks. the

just for especially I this quarter. I delivered thank the thank the and Thank participating want first to to they this outstanding employees in results call morning on our everyone want for you.

your EOG Thank first That Resources quarter for you conference results XXXX the earnings participation. call. all concludes

disconnect now may lines. You your