EOG Resources (EOG) 23 Feb 242023 Q4 Earnings call transcript

Good day, everyone, and welcome to EOG Resources Fourth Quarter and Full Year 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 the Investor Relations Vice President of EOG Resources, Mr. Pearce Hammond. Please go ahead, sir.

morning, Fourth for Call. Quarter good the us and Resources EOG XXXX you, and joining thanks for Thank Earnings Conference Pearce Investor President, Hammond, I'm Relations. Vice to of An Investor during today's will been presentation updated slides posted investor reference certain Relations website our section discussion. and we has the our replay A on today's today. later will call beginning of available be website

forward-looking SEC outlined differ As cause may our EOG's could the a EOG's on Factors materially those and statements. from that reminder, measures. been also this forward-looking certain historical related for filings. reconciliation these conference and found statements in and be website. release earnings financial our non-GAAP contain discussion results in This conference call can measures non-GAAP to have call and Definitions includes schedules forward-looking actual

morning the In estimated well as estimates Yacob, Terveen, Senior Officer; accordance with reserve addition, potential Marketing. this conference the Financial necessarily in Lance Ann on as and estimated include call Operating the call calculated Officer; of SEC's reserve are Janssen, guidelines. Chief some may reserves CEO; resource on Chairman Billy Vice not President; Leitzell, potential Ezra this Participating reporting Chief Jeff Helms, and President,

Ezra. Here's

for Good us. morning, Pearce. thank you everyone, and Thanks, joining

cash year, flow income X net on that returned last cash flow earned XX% barrels and free of shareholders Our handily reached We our than We outpacing than commitment. of volume employed free to $X.X delivers of for of year our the billion generated billion a return day. cash EOG's outstanding targets $X.X XX%. capital return more oil per adjusted our production of year that million performance results. last demonstrates more producing and proposition equivalent value We beat milestone exiting

the last market. the remains the among annualized to an share, regular XX% our peers competitive of year anchor return with dividend broader Our is to and which of regular $X.XX of represents per highest yields We rate cash increased strategy. our dividend

a it's EOG's was financial year. year performance, and power XXXX and proposition of production value consistency. one-off outstanding a real not is of record The

years, EOG over the translate billion delivers net value XXXX, of value billion year X cash and results reliable after cycle. returned income, to through performance generated the last $XX Over of operating EOG's since shareholders. EOG to sustainable consistent about start adjusted over flow $XX $XX of through creation And that's billion the free proposition: industry has financial year cycles. that

$XX proposition oil priorities its earn XXX. which as a deliver discipline, cash gas. natural return Our $X.XX flow strategy achieve by compelling with allocation EOG and strategy at to to Capital allows hurdle that returns-focused premium the capital consistently commitments return XX% positioning free requires a shareholder and competitive on S&P value investments direct least rate, starts EOG deliver capital with on after-tax discipline investment guided first our at to

The deliver is value second principle of on proposition our operational our strategy to execution.

a Our advantage. portfolio growth multi-basin organic is competitive

well We in-house well supports have that minimizing technical costs. leading-edge performance superior while expertise

across banner environmental into proposition. avoid real-time the to basin. Integrated and the year performance. to well such third mode continuous is discipline of operations next our one latest our next the basin. where the on year focus Our design technology data-driven of out decision-making. Last into was information we value EOG's embedded our enables get to the deliver well falling stamped the respect is into transferred actively with strategy proprietary sustainability, to our learnings Rather, leg a adhere We that manufacturing improvement

our value the gas our leg increased area, XX.X%, emissions to below operations. methane of intensity Delaware and targets, reuse we and is operational of capture achieved most also X final Basin, GHG rates maintaining proposition our to achieved EOG's in XX%. The XXXX We we our routine wellhead water flaring addition In throughout and a culture. active foundation rate

embrace sustain EOG's and continuous for drive cycle success. EOG's employees multidisciplinary improvement innovation of Collaborative, embody and Our teams reason leadership. culture the #X unique the and are and our technology

Our strategy continue successful the of and the our at provides company differentiates level, to the is nonbureaucratic to the foundation and our truly XXXX in relative drove our which competitive peers allow This results future. Ann cash details deliver is next field plan. is discuss EOG capital XXXX is to asset our decision-making to in the to a up and advantage. preview in return decentralized lasting what culture and

Ann. Here's

Thanks, XXXX, I'd strategy. XX%. is our cash expand our is cash of return to A dividend which sustainably like and ability believe best of lower confidence remains dividend. we growing the now a regular a of future an our the shareholders delivered growing, commitment regular independent XX%. indicator foundation of to free regular commitment, our a EOG's our never is cut and compound Last minimum in free an trading as been cost in the continue It's morning, Ezra. We return growth It on future year, its we to of performance. to cash in announced annual or XX% generation. Since structure we our have dividend the has company company's flow flow. rate This its sustainable suspended review dividend regular sustainable, began cash XX-year increase based annual

XX% yield, $X.XX The each have in years. regular peer at our dividend X among least dividend group. highest the which rate E&P a X.X% annual share, year about In per represents fact, indicated currently last is for increased we the by our regular now

view our and business nearly price billion bought shares our shares. shares. We share, of repurchase to years $XXX addition volatility the at in our repurchase $X share market over improved, paid putting EOG's $X.XX of an by of we At strength debt. the In to of in has we cash $X opportunistically to strong a value approximately in we and on XXXX, commitment balance long-term year-end billion a X better through $X.X sheet proposition. Last we advantage our in had XXXX liquidity. sheet of billion advantage strengthened back get and as X over Since average $X.XX million further year, a per of of repurchasing per balance dividends billion increased dividend, regular continue in industry. the authorization took fundamental and billion place retiring special ago, in to We $X $X.X debt cyclical also execution balance consistent sheet, competitive billion

regular the Our buybacks balance energy billion billion $X the in top $X.X among competitive and financial strongest special EOG's billion dividends, significant near XXX. Between dividends, $X.X never of market, of flow ever free value. XX% billion the of billion for. profile sheet is the and our broader is S&P of has the than of better with sector positioned $X.XX of shareholder long-term retiring ranks cash more debt, to $X.X accounted been EOG XXX% With XXXX in a generate

not a included and price shareholder an This capital XX% to cash X-year more a assumed oil value. ability in At return average flow and single-digit current $XX $XX BOE and price which an results, deliver same. We scenario natural growth $XX profile, few cash We on about activity prices extremely create of billion of growth for range would companies cumulative the our flow, also environment we value. high shareholder billion highlights quarter, the X/X low a last and to employed free Slide scenario current to environment, exceptional scenario X $XX in and competitive believe expect years XXX. we energy the a gas oil with but this single-digit XXXX, that's In year. to illustrate and cumulative the production to per return the on expect only comparable future S&P growth of $XX Using we midpoint, X-year has our commodity of represents enterprise EOG's estimates pace to of presentation macro the $X.XX through production investor free this among to billion XX%. generate between delivered

forecast more of strong to year XXXX, we operational and Turning performance. financial immediately another

target We Hub, $XX capital X% we our BOE generate production of expect a oil $X.X to X%. this At that and by implies of At $X.X shareholders ROCE to return free breaks year. about cash greater of free Based and XX% to XX%. billion produce returning on billion by even. least our on $XX an WTI plan minimum a just and plan expect flow, basis of total cash of WTI, $X.X $X.XX our Henry flow than billion grow at volumes

XXXX review to Billy reserves. results here's and operating Now proved

Ann. another their to Thanks, employees be like exceptional execution I proved XXXX to year performance would our of thank year. accomplishments last and of and for each

total delivered has production was grow able midpoint we X% Overall, and guidance the the our beginning total last oil above production years the crossing the milestone day In full capital fourth the of been the nearly X% a equivalent spending of production year, barrels approach. the to original significant by were XX double our our we while midpoint. quarter, EOG oil year, growth able of by level set the volumes over per at oil achieved we organic For to at high-return million year-over-year. X through production.

to multi-basin efficiency our gains cross-functional drive Last our teams throughout worked year, portfolio.

continues For with in to about program EOG rig. our per footage reduce drilling downtime operations, motor yielding XXXX a program improvement our drilled XX%

seeing to This multi-basin And stage by footage decrease to frac Super increased XXXX. X% throughout fleet times the across of improved operations gains through frac pump for completed in frac portfolio, Zipper run fleet continue expect our our benefit shortly. expand Jeff our continue XXXX, to fleet. and For move will horsepower completions, times we we due per reduce those which about

production our to $XX.XX and production work to per cost operating optimize BOE. Our cash teams reducing expenses

commissioning CCS injection personnels our while addition, continue methane and our operating first facility well. our to In emissions reduce

reserves $X.XX by last barrels oil now barrel Our year-over-year a in year proved of price-related nearly revisions a with increase of billion per totals equivalent. X% of oil represents and oil of increased finding excluding XXX% This reserve equivalent. proved X.X barrels and cost just of base XXX replacement development and equivalent reserve million

plan. to Now and operations here's discuss the XXXX Jeff

Thanks, Billy.

X% plan, For $X.X billion deliver total forecast we CapEx our a program oil production to growth volume and X% growth. XXXX

deflation well and a We drivers be in see The throughout to a cost costs. forecasting tubulars service XX% and ancillary to XX% low reduction to are down are expect single-digit last compared year. year the some primary to percentage

of a increased Slide reduce will our greater margins in strategic reflects illustrated on are life capital presentation, Slide for our improving, are breakdown earnings long-term infrastructure them on detail is efficiency expand highlight expected -- highlighted capital and operating our Lance and that in program and Delaware X investment our Dorado, costs the these like to in plan of year-over-year of to capital projects the which These discuss X Our in direct is moment. I'd which assets. in presentation. Basin

number X plays, In the company-wide and compared Billy have to valuable lateral average These to our XX% decrease in by the increasing consistent a in operational foundational and activity implement operating progressing focused our to operational of drilling at by by wells to is well efficiency area. When improved looking level, at Eagle our we resulted treated last learnings addition across well XXXX, by a The longer high capture ability testament improvements measured for Ford, year-over-year realizing the one In in year. our mentioned, direct Basin are is are activity X, the allows a to EOG at rigs improvement. XX of per the Delaware teams to and improved while XXXX. frac realizing plays performance remains volumes in fleets we us a compared executing pace our laterals consistent and XXXX. our and gains to CapEx that expect our and each length maintain on efficiencies specifically less our net grow

For year, Tcf gas potential will operational Dorado, that demand. natural role the progress in we efficiencies resource asset recoveries. last and on XX our remain excited play about meeting team good this made growing Throughout global and improving

and Dorado expect play, to moderate flexible to us balanced Utica we progress. approach consistent advance and to gas remain maintain our the we monitor to in our will investment improve teams the operations operations to technical continue great play XXXX. compared XXXX, as activity For A natural continuing market. In to while allow make to the

package XX-day initial liquids. XX% Xavier and spacing. of average at per XX-foot XX% latest which X,XXX-foot of oil oil X,XXX than tighter X-well barrels day spacing, is with Our were drilled production delivered package Timberwolf Xavier equivalent the at wells The

from production We that have of initial our at wells date our exceeding package online all test are individual results to wells. come levels pleased

across activity increase and rig full XXXX, to test our to expect acreage continue well our For to one spacing we play. level delineate the

has the package year. Rhino, in the In the the come Our southern next our named the productivity formation. expect these X-well to in the of and part Utica, of Basin, White located first half team Powder continued River wells we online is well to in improve Mowry

to consistent We and improved package have well targeting productivity our per due observed development. in and BOE oil double-digit increases

expect into in we'll another begin thank development and levels to I XXXX, has for in shallower development, to hard positioned the Mowry Niobrara formation like we for dedication testing Moving that along activity and moderate with would their our year. primary employees outstanding packages area. our the company work

about focused returns business are XXXX the disciplined basis We investing excited that through and high plan. for growth, of our remains executing generating on company. the term, the running future operational will lower the EOG cost long in projects execution

Now here's infrastructure. Lance to discuss

the gathering cost flow X new our of most Delaware This margins. feet plant, long-term end investments infrastructure the in to basis gathering an marketing the along natural diversification Basin, reliability the basin, flow of XXX Basin In the assurance maximize Janus pipelines EOG's for new maintain of to life active inches million strategy Delaware and control Infrastructure enhance been and are a with wellhead and and sales day play savings markets XX transportation the assurance element per we and system margins. in from Thanks, flexibility we of over the in oil constructing is point More company facility, essential have processing in Jeff. invested to lower of strategic assets up U.S. diameter. gas plant to out recently, have provide sales to the expected material asset cubic and to

and year savings a cost and first We $X.XX in of expect per the next into service of revenue Mcf. uplift deliver Janus about half will go

with throughput largest Texas volumes EOG-owned high plant our XX-inch our great with this third-party early While plus optionality our adds pipeline. Janus emerging Phase Verde asset utilizations provides In The at constructing and we're X strategy. an we midstream the relationships Basin Dorado rate anticipated natural of South enjoy providers, new consistent marketing is by play, our plant return. XX% of our gas for Delaware

very taken X, Phase in commensurate placed service approach markets. Phase Dulce, position once Coast a additional extend demand facilities have We which in is We Agua where connections the premier out local this and pipeline terminates in Verde last And build of Gulf expansion later Verde with will will Gulf the reach year, U.S. centers, multiple to X pipeline to to Texas and service we disciplined along with Freer, year. fully have Coast LNG a Mexico including demand.

consistent gas results future new and well Dorado in this continue see investment strategic We to market. and supports breakevens lower a natural volatile

with which and extremely we pleased we making are infrastructure lower -- expect the substantial strategic We with control. will savings of progress other cost increase provide basis investments, company, will are versus alternatives the the which these expect operational

with MMBtu per and Brent day our Brent per or infrastructure, to U.S. domestic MMBtu diverse In to recently XX,XXX a to XXX,XXX a our LNG January we day strategic in agreement of expands mover gas gas marketing beginning to growing EOG's affordable further XXXX. of gas. a access customers Adding EOG is its date reliable markets natural start demand. of our executing for our and to and international diversify strategy natural markets index across exposure Coast be to another gas addition indexed indexes. natural a first in marketing sale end We to to multiple finalized and Gulf gas certainty agreement pricing production continue natural on growing for Brent-linked purchase indexed

here's Now to wrap up. Ezra

has better, position been has never been Thanks, Lance. stronger. EOG's never business our financial and

discipline, consistent and were continue of shareholder the it and Rather, value, work. operational proposition XXXX in are sustainability execution, XXXX. results our our culture not the unique Our continues at and a and onetime operational financial and to event. success core will leadership at reflect deliver value a results Capital

and our We with supply optimizing and gas. a are and flexible both investing on generation with across of both portfolio returns delivering focus high free multi-basin near- long-term respect staying demand fundamentals natural and flow cash oil to while

investments exploration consistent value see strategic and this drive discipline And results Our X-year and can disciplined to organic commitment well you approach to infrastructure low breakevens our across our investment, creation. scenario. premium delivering through-cycle

for and Our ability the for a sectors, shareholders across long-term has higher. Thanks to part in never be listening. value EOG's solution energy create been our compete confidence of

to go we'll Now Q&A.

Mariani our MKM. And question first ROTH Leo Instructions] of [Operator comes from

address number, production a like pretty the is wide it's just quite a U.S. range versus for to the Wanted seems which this year It guidance XXXX. tighter. gas oil bit

to Just lines of course to terms wanted during to volumes concerted any some time here. gas of play timing prices sense weak of a macro out bring just turn-in terms in to avoid seeing for potentially EOG's year get the you're if behalf thoughts try maybe effort next to here your alter kind in a And the there's kind for on of closer winter? months gas on of of how to of on these try and of prices the gas some perhaps

Yes, by level gas with be we Leo, would question. were is to last flexible at say last this our when you completions can out of and already we mean, rig with reduced just with, Yes, natural start did is I then the And the year. respect we to the to the wells treatment expect throughout Ezra. year like on what reducing activity we'll we're similar Thanks market. year Dorado for what I bringing Dorado activity. those

guide I rates significant gas of out you're U.S. to look domestic level. the Trinidad. really From company at exit in gas the a midpoint growth there. think general, bit midpoint you're for of you're point. about exit the guide growth. when is day XXXX That's actually amount Trinidad, for about guide, a gas QX year actually good the the seeing to the bring from to XX-million-a-day a unique the at growth rate what's seeing about talking this XXXX growth XX company we a and When little a you gas And growth in growth the rates QX million contributing gas seeing we're amount then up the gas of

bit So a little unique.

a you and guys a placing middle we've And the Trinidad, a the of of know, for we're still as of about on in campaign construction this a in is very this consistent demand And that the end unique or at year, plan a Trinidad. supply have thing what the fundamentals domestically down on in the here been that And of got platform almost we under to we're decade, are, gas on That's robust and We've last their supply natural program decreasing. decade quite been which, seeing course, frankly, drilling used also year. U.S. of up current the opposite until last in country, so, that's gas.

find the for needs. really they undersupplied So gas on side themselves natural domestic their

gas growth is U.S. we of portfolio. those and day of currently of projects Outside is pricing of our that's advantaged of gas course, at the and really that's domestic very associated slightly of really -- liquids-rich plays. down that market oil that, our sell there XX with And domestic the the a the gas makes million competitive all off rest majority our coming into

helpful. to back in surprising PRB, but additional couple which activity of guys And that it pulling important bit just there PRB. maybe the is bit was the to that you're little this some Utica do me. like over jumping gears a of year, a little looks maybe over I That's last the Okay. you Obviously, years. play that's emphasized see have an kind

versus I you've you're trying and that last. wells learnings to of got the this on completions assume science play. in I still progress XX think year the fewer the terms

modest some color add to maybe can 'XX. here just a the you why little pullback So of in as

this point. yes, Yes, is And Jeff. great Leo,

our year-over-year, and by we So both productivity activity. package to parent the on opening offset about additional has just our and target our We're what as program development with BOE. And to overall on lot do it that packages corridor understanding seeing oil is how comments we in really, talked XX% in a getting increases about us with really had there. Mowry in those success great of

Niobrara. also able we've through up that, with data though, those wells been with really that all to overlying Mowry drilling So accumulate

Niobrara been to So here able to models, that gears we're of our refine in go since little start going ahead primary we're right bit and some infrastructure development a we've testing along corridor. shallower to geologic our shift formation and there the going package

now look slight get models you and a really more the when to really, and performance in it's the on. out Niobrara at geologic of Mowry a kind step little program, figure just the some back package our So, on production bit focused

the equally formation. Mowry So activity Niobrara will and split be really of between the kind

we really we bottom to just it's similar strategy did to So Delaware a it's and asset. the value Really, very co-development Basin. of maximize up the in developed the from simple what the

comes Securities. question next Truist The of from Dingmann Neal

you added Utica like far add then that oil days? you've some first window how that is just wondering in continuing oil and are have I play. these the sounds acreage. west My do am play, question on to confidence black you secondly, recently on It all maybe

Yes, Neal, this is Billy Helms.

We it. have continued to up to opportunities look acreage we where pick see for

cost reminder, a acre. overall, is acreage our $XXX probably Just acquisition around an

compared to low cost when consider capital. it of very of other opportunities especially deploy to So lot you a entry,

So we're confident? and and are play. then as test there, very our up trend with to as approach that try continue the that's position. accretive out pick We our west far And how continue to we far to organic acreage we'll pleased

-- Just how it play a deck, south. our I on think north illustrates to the you miles on think Slide I investor reminder, XXX look if extends slide that XX, in

to a add -- We'll got year of where about we've plus that XX far, data So grow or wells minus on. this production handful another wells. we have

we've we've got the results So span. pleased do XXX-mile that still we're testing across a very to activity of lot seen. We with seen, the

that prove that data some us But seeing are west. have we further bit yet tells we go out. a can We to little

results excited of give about in potential we play. of But performance some future. seeing wells the we still extremely start you the we'll the So as those that remain

other you that I [indiscernible] sheet just the get to then if job to you're there. materials. on the if can real or inventory guys speak forward levels great I'm stockpile prices have could look just, done of fall more secondly, which And currently guess, I'll running And time. any wondering, to building a strong future you I you're past, just Yes, using so you In and on OFS balance to specifically. believe in materials, pipe

Yes, Neal, this Jeff. is

going carry advantage of tend we always we're an on a give really buy of be able those to yes, to purchases. that able kind be to us things inventory. between a opportunistic that's I primary is kind to to that the deflation our seeing does the to this a think tubular So team costs, really somewhere and really go to really as that's which of to we're year, pipe XX%. to strike it down far add inventory. as as and XX-year to opportunistic look And X-month find procurement And you at to drivers the really one to credit And our times expecting be be ahead XX% really

of the to coil we're and support So year. And really a those in other is I'd the and supporting seeing drop in drilling say thing throughout other completions. services that such ancillary We is we're kind other such. to able as services then wireline, kind of XX% XX% see tubing, drop this price cement drop really see

the overall tubular an So movement seeing in deflationary a think XXXX. position great for front. We we're there from some standpoint, on

comes The of of next America. from Bank question Doug Leggate

free My the through simple question the is, do period X, that and if plan. there despite however, X% I cash free always future this last got us flow that we particular. about looks -- you've just is Presumably, cash the the years at flow you after Slide is flow and 'XX over try that and math, free flatlining appreciate it the I'm like growth. appreciate visibility guys year. always I look cash in quarter looking give growth growth Ezra, in cumulative at

So period, the sustaining I goes you've talked at of us the along wonder on would the reset give end with some how given capital color your at on larger volume time. you if the that, could that CapEx that

period Yes, X-year flow the here XX% that X-year scenario years cumulative here we Yes, highlighted question. on It's roughly is cash previous over X. This Doug, than the thanks higher have. you the the Slide free Ezra. the in that for X

that cash haven't in talked specific this about So you I and and the what in infrastructure volumes, What to That's into. right, in talked we and maintenance look unfortunately, is details I about currently throughout is is that offset a multi-basin nature? -- going have a is different we us that are is investing also will be flow trying we towards there midpoint under flatlining. for a variety scenario. should oil it free of and things under maintaining very X.X of additional real focused capital that X-year on, the organic And about don't plan. What we you're really flat, in of see conference a range from that are of that margins getting like number in world kind really company would talked we some say this those November, capital little in deflationary scenarios and equivalents X.X. And growing maintenance growth that to see again, up flat? on be we moving again expanding since November, you Are just we your of X-year our are trending that given into exploration depends then have factors that of capital the we keep the some you scenario, production? we you're Or maintenance actually that to by When you X.X bit. and roll X-year ourselves,

flow free a per is compound see growth annual flow rate cash share X-year scenario. and X% we cash what fact, across that In

I That's little helpful. take hope. help a look We'll certainly at buybacks it the will that, and

random, yourself kind volumes little mix can is bit a rig bit a and with Dorado, Utica but is how little it you the the time. my of the grow in So but obviously, over shifting are, Dorado that one of gas the seems perhaps, clearly, follow-up strong with it given seems help kind

guys I also And in direction, is, you in strategy it a if that Canada should EOG? I'll the about talked could in from move specific, leave are of that growth think amount I that question expect hard steps be organic of looking fair Montney. we we organic next little the could and November. the from think we My speculation that And what can again at there's a there.

resource Yes, Doug, We're real that -- we Canadian there up strategically gas of the were regards exploring we've to years a oil Dorado of in a really way the the At tremendous that to assets, is our bit a sits investment. about that always think number is us things. alongside organically play. your quote question. business natural you, for asset. is to we a And down that exited building ago, the question, core of random what we're the With captured here gas heart strategy for South and Texas low-cost a in

we down assets that are think some allocating return-based to capital about question. the rather our the we're oil. really us double the gas agnostic capital the producing breakevens lot company of other when assets, the little to bit premium to necessarily looking to it's best thing our than to what's It's at for more independently and these allocation, so And value hydrocarbon actual drive makes not ways, for to continue plays and a continue Utica premium type regards in return a and again, really of or a these things the and shareholders. With emerging because, threshold build ambivalent

in you when to need layer Now environment, have consideration on we do that. the macro

that some U.S. come still here market, months on remain of the gas we question we the forward. solution a a made just out to part say, We we've and XX definitely market, constructive a little with the LNG plan that little this bit Going touched demand can year But you do forward, on. that domestic Q&A. does with is on top at look being announcements gas soft. see of today, with the the the on further from of And going continues Leo's

The comes next Hanold of question RBC. Scott from

strategically can step Ezra, EOG you some a here. shown to pretty everyone just curious, on over both last basis a just the its I aggregate premium you've shares multiple commanded to back had year. And of have in and lagged kind appetite else. peers of willingness in remember I'm multiple and past when to the the good performance buy in

is in at now that you is As intrinsic some balance trading EOG? your to and look willingness value more you get underpin right to use strong sheet see aggressive in your sheet, strength a and of XXXX, stock there the balance where

question. a good Yes, Scott, that's

think again, industry. the seen we about multiples think right, best I what's really you're of multiple shareholder we the That's -- way buybacks, And we've across all create think compress, to value. when long-term about seen our it's compress we've it.

with I to further approximately than XX% XXX X%, of you look any weighting under little the that, to on energy earnings. bit have forecasted think at the a maybe close don't S&P in

So is think environment in say sit regard. dislocated that a currently we what I from do we'd and

flow I buybacks think that to year flow cash free of a cash and form you of our as commitment now. XX% we with this to minimum free more anticipate generate significant to being shareholders, move of our right amount that forward shareholders in return could the

first were half active look very regional debt when we back things dislocations, real and like in historically XXXX, year that. on I some the we and conversations during in ceiling have banking of dramatic the crisis say, the buybacks, Now we would at what done

quarter. an did, price obviously, throughout the in EOG, example, step appreciation we oil as from sector QX take $XX the that a in step we fourth quarter across the across share it. there $XX And and obviously was back some back Now industry with entering buybacks on the to multiple well. compression price rose into again, then volatility the as And as continued

of the think it, about when as -- we improve. we company we've about to So we the continue think strength

I expand with of flow cash the you to company. potential we see can scenario, the X-year think continue our free

said, to that dislocated ourselves high And in would environment. a like we do think generating currently, continue I while really, consider returns. I We

of can And X-year that. into to the parlay and then outlook the kind I pivot if Permian activity

and You the Permian an all cumulative provided forward on should investors outlook? know trend a talk expect that show But within oil, in co-development. but mix production, overall touch chart guys about wells and on just going X-year a is how the mix lower where and shift the you can of I like do that of that lot you increasing you

And this Yes, Scott, thanks the is Jeff. for question.

M -- there need intervals. barrier whether But between upper about this Wolfcamp. you The depletion ahead good just are independently. section our to are out minimize normal and targets. And identify and kind one has got to development in in areas targets have be our of we value does our program. and and not associated that So but one of that the these to it's in more really Wolfcamp as many also each this wells about it's But it's move reminder, the optimal of of is or completing prolific really yes, just does If X a the M the gas in a a to our those be those to of up premium year, go Wolfcamp the X of as going And each and plan co-develop section very, maximize cadence wells or few associated months. together. a thing Wolfcamp it develop is the one part sections target developing any it It's strategic very more can you producer. have more Wolfcamp move we is, of the returns pay and going in we M in XXXX to oil section develop we

or Permian XXXX, to of goal our said co-development focus I I going So sorry, to is and XXXX always basins any meant the I'm kind a I pay really be NPV. And and think continue stacked returns to maximizing execute just program. strategy on in

Sachs. The Neil comes Mehta of Goldman from next question

of over the macro, associated think the one First of the question been surprised we've And supply natural back to gas the Permian the course I areas from going last X months. on just supply. of has U.S. been the by

how perspective of into you the wells about especially And on maybe you're production so, Ezra, way U.S. but thinking see that as declines on ties the how views that all mid-cycle of mature, evolving, as some and gas. on your the love other it, side

That's point. Neil. a Thanks, Yes. good

our going XXXXXX-barrel there we're start U.S. where continue since for so growth might will really around your liquids. you a is roughly associated It's for is. question this gas total -- year models think to I see to be about talking

roughly, Ford And general, that obviously, coming the of is is some plays I to there take associated of going the we've see be basin our which, So continue higher more differential gas bit Waha. We said, Dorado. of the that XXX,XXX forecasting amount a little difficult. oil. the more you'll a into without can't had. of than happening the of Eagle when forecast demand out than gas what's Permian we're the that see Like bit more or and things struggles a likely the side. recognition in GOR one in you a the consideration and of think crude historic model with about increase barrels significant thinking -- development on It's supply mid-cycle oil so and the Bakken makes having of to to say, forecast And you'll future continue the oil that gas, gas an like prices I would that that along suggest

this focusing the to margin oil asset. is place in to give really asset there So North is the really absolute with low-cost our and way concert trying manage us gives some at with Gulf demand, that concert growing infrastructure, dominantly significant American in the a additional really We've us we're business, That's developing way the that's think Verde. that's grow including expansion life going the the gas And is the ultimate along in to advantage. located Coast. we asset producer. And Dorado pipeline that plays on being over driven a invested we're our which future about thing, from that's gas this of that you've named the the pure activity. LNG one that year think geographically, we've up significant haven't We seen reason it's us last resource. a year, It's us one aggressively in the Dorado moderate captured and reason you seen Because ramp asset.

have that you about with And right what the much in a the why And you the I is seen your so I got than in are of more many give wanted year, that think minuses strategy? unconventional to is strategy. much an pluses guess, And different opportunity the the to come that and talk the to a peers. base approach. space consolidation last follow-up you strategy you've We've and organic investor

before, the discipline. consistent Well, we're as creating is about a way to we've organic operations on exploration, to and capital value that shareholder able that on commitment value a focus talked the generate low-cost focused cycles, been through and we've through

company, I that that premium it's flow X-year through cash expanded we free the aimed can just with a XXX,XXX quite you frankly. I'm that see across Powder smaller Utica represent multiple high you have equivalence think provided. level and those resource we've exploration over meaningful the of first-mover think the effort, expanded assets with XX acres resource, Utica exploration, future advantage and with and Powder our existing portfolio, performance equivalent that Tcf at the Basin the on ability our Basin scenario XX a captured, and margins assets, with resource. XXX,XXX Dorado, X Powder with and have improving River the It's to confidence but individual E&P of discussing. When We -- through we emerging midsized in again, financial our begun about billion-barrel And with the acres. of the in River and a have of targets Dorado XXX,XXX only organic acres Utica, asset sorry, upside we've already also North And future not underpinned captured X conversions, the company. the approximately

resources, the to continue trade discount it. expanding we wider do at days on inventory, So resources a than these focus do. just improving think what not Unproven we proven

cost to to that these forward we're on so value up create drive them down shareholders. assets prove the And for our of and bring focused continuing and

Brackett Research. Bob The Bernstein next question from of comes

would you impressive. we in in saw flag look the maybe governing see I that ramp to the those volumes strategy the lead you in the a compare a the to Is that's put old we And ramp maybe plays? maybe huge to wells the that just looks thinking can reasonable in of cost. In something price or it it's down? Utica, days costs corporate And the off of activity maybe it against pace sort which about quite a and era, Utica? And And in reasonable volumes. dropping a it's will emerging XX-day shell develop the cumes, races ever gas at old well a there getting takeaway or and at

recognition that for meet tested Billy. the Bob, the the curve. the performance Yes, to we've type across play, continue or for excited We're is play very wells of seem thanks Utica. there this to about our that the beat Yes, and

pleased we're So with very that.

of very those with yet, some want time of more have wells give wells to can limited and to strong. science handful And in really either but before guess early we lot that given a given $X continue lot I a because see through committed we're confident a production finding that increased drive expect data, you feel we you gather And our of EUR we you data, gathering haven't very any that we efficiency cost we being of a lot that. testing in answers. as to haven't gains. We details do play, estimates of from that, just cost still yet color don't down all the on still range of on and the yet, we cost of cost down. previous look we But to come a our and And lot you

more of cost-efficient want to confidence how be me get we And that develop as can continuing, the about way as ramp-up most we to we how gather and and the far we we we more diligent ramp expect choose to on to that, data, can see top that as asset. more

So very I one multi-basin not grow and us so those that curve, with that's provides learnings most learning gradually grow our can be we pace don't don't need targets don't We or out any efficient in had single we operator the simply outrun flexibility basins. up of in our required to the of us any in asset. -- we a And mean you to is being why the certain advantage to of you're portfolio aggressively. asset ramp that's meet see

and huge thing And barrels maybe "Hey, ramp type shareholder to you, day". this incentive a build base there's that goes XXX,XXX gas never from a some takeaway, your tells go

see of from never previous levels growth the huge sort might we So era. of those

Yes.

past. in saw wouldn't you the of you I think growth see levels the same

for develop over I think long that's forward We understanding pace our how don't want our value fast. their running with of a commensurate shareholders too strategy by would to grow the best to our best. it that the value either bring and at be to term destroy resource,

we the with is to understanding want commensurate here that's at a of pace So our is balance each asset. develop that

next question from Wells The Fargo comes Roger Read Securities. of

longer back lateral a versus Yes. little bit you at well lengths. more efficiencies, to 'XX in the like the the 'XX look come on I'd kind as costs of well

Just where should coming just operations So we think about or on across occurring, lateral that mentioned right? all is or limitations the it Is further the increase spread improvement out opportunities what expansion the mostly You right? are of multi-basin, either and the lateral of Delaware? lengths?

question. Yes, Roger, is the Jeff. Thanks for this

last and We've lengths pretty opportunity success. the over test an in So have good our all of portfolio a been multi-basin pretty driver them the laterals gains. with much years longer lateral efficiency it's big to throughout our few -- had

there, improve to So completion optimize year. bit laterals Antonio, drilling techniques really geology basically able from continuing a run the and our one has has out it's little or operational more longer the that footprint, of to the we've that's acreage based we're do capital factors which we've years that San geology, over and where moved a longer into. In really east, and robust this to based on economics been there the little lesser west, of efficiencies, but years we by pushing apical about utilizing to on which our the drilling XX we've and talked limiting

we the there there. to And down been and we've up So and the delineation extension some about, then Eagle now move we're into the Utica, we're just package Ford. In oily doing in seeing starting development. fairway have more packages spacing talked XXX-mile

be X those of wells miles majority the to So are going forward. moving

going then laterals in that's lateral drilled we been about to in high about that And last an to X overall success to increase blocks of we're with for in company over the we've couple seen able that the them. but or in Midland. year, been acreage X-mile really laterals we've testing good we've places and the really volume. years, of And correct increase there Last in Midland, X length not So XX-mile works that our of find the there.

that, kind talked less the with just length lateral and when side, So we're completion company, XX% as those a similar to it overall be Billy all of frac talked that going the about from we the with of and the seeing rigs length net When we're But total X the amount XXXX also XXXX program. and some lateral be X wells. less you require completing and fleets still gains from doing what up versus while less up going stuff length we're of all to about X we across efficiency drilling will program. our on lateral then roll did

of So at in just our is the momentum on efficiencies it of our and a continue we're out look way lateral with 'XX. coming just to XXXX. I'd writing lot We'll build that lengths look to

question next The TPH. of from Matthew Portillo comes

question you fairway see specifically, remains a clear 'XX the the like cost gas the the I the on plus. over to marketing to tight out takeaway start and end few In the it pretty out will in basin 'XX of highlight curious years. feel Permian, it Matterhorn your ability build how long-haul know which but for gas towards side. of the next XXXX, Permian does plant, you follow-up Just the lowers was the I structure. processing

relates of on gas potentially Permian flow. So to might long-haul EOG to play is takeaway just as taking sure some role to able curious make capacity the that what and it incremental out

to Maybe have just coming basis really We many EOG pipes wide like see pipes, the we're going that start. of think the next we've of year make -- of you as the see very we some early that's move only but to potentially been from this part then and to crude in of want macro, pushing a a on positioned markets long-haul also is gas the of you're pipes right, natural going you've be we takeaway continue very I continued is well of into we gas So day not have Matthew, were we you transportation would oil. right? probably be But along kind Bcf a highlight to that kind those when Yes, we And year. are portfolio. on a sure expanded for transportation what to our just those like But what an on, other in have going I'll been to residue you're Matterhorn and about actually leader pretty a is kind that Lance. pipes. significant had from horsepower, Gulf about this Coast. into think the with then the and over standpoint, think X great hits standpoint portfolio have

maybe Niobrara, question. I then wanted the to come to a the the to oilier I opportunity which obviously, think follow-up Powder, set it. highlighting, And Great. horizon just to as an delineate back carries

uplift big a forward? part the drilling of been Just Or as you talked to drive know program? pull about? capital of be as all curious, in going about overall of the well learnings is improving down environment. you've well terms productivity just this trying permanently economics far And the had we the as a pause so in I has cost should the Utica a the this thinking towards the potentially

Yes, Matt, this program. as pause is I it Jeff. at necessarily in a the No, look wouldn't

some had and We've the we off was were that once just good sets I the back always think really Niobrara really that We've with the cost target. great ahead data with overlying our efficiency step to which to improvement. gains We've it's able gather and had on robust into Mowry great in in bit, results so. packages to data. And a plan gathered shift. we'll go Mowry do our a little

there's I a Mowry from easier mapped can into drilling clinoforms the And what the -- on we've bit and issues. The really, you to be Mowry the some out deeper. in So are. say, find Niobrara because to Mowry Niobrara then have compared out a as would going -- from well you clinoforms the the far and in is is those better there, bit other a have it's aspect, is Niobrara little as different. to The [indiscernible] the also drilling, producers hand get some little

disciplined the So with in as that sure across really we're we be we right at the think And really our make strategic do has clinoforms. we're looking to market Powder. to acreage that want those in staying there pace I to

Freeman The of next question John comes Raymond from James.

the Scott that of the further just oilier the if a way developed zone development then it's long-term you that, Delaware follow-up taking targets co-developing a a it has co-development oilier opposed intervals, as that ahead, clear does you're you 'XX package. give a with X-year the safe year. to look be Just of that gas weaker. of were you around and is thinking the picking zones bit Combo, are Wolfcamp sort with more of little each nature moved what drilling since the in but kind the shifts all as lot the far outlook, out would It it Basin. too get on asked back the earlier assume like Not sort strategy a strategy that, to just to did way those And towards cherry regarding multiple oil obviously just targeted that's and

question. the flexes sections and different the acreage And hit it just much across of head. move as as on Yes, we into changes. John, It our really great yes, you geology pretty kind

X the the and co-developing strategically look top to last see up from strategy moving co-development with see you will bottom really and do that section at you you of that. So the it. section because back years, our And flex forth up if we're to

scenario. next it through in handful kind X-year the that So that of flex will see of years yes, you

something the projects, they follow-up. this my to that, and percentage CapEx, infrastructure to having you the doing we of kind going the it within like at emerging that And scale that budget? When of these Does this and stays is with think Utica continue you're about then just like go as grow, we get kind looking that you level that of the we Combo sort year, obviously, and was at more of at of higher assume more that, Dorado do? of plays kind and CapEx stepped when at should up are a look bucket outlook When infrastructure it's what Delaware. X-year total year like kind the potentially

Billy. is this John, Yes,

developed guess, to multiple just here, that plays that to Let different address me that going couple answer I long-term to decades. support a real ways. the spend are that in are of over upfront be infrastructure offer discrete those projects

that cost of company the a forward projects long, direction period specific those to continue long plays for that's very So in and lower expand time. infrastructure our the for a going for margins

adequate Utica, capacity the there processing out For is there.

company. those So of we're an seeing opportunity not as for kind projects the

going lines, the Typical play at think we're as to -- or need at process any I play. gathering to a develop large don't in gathering out. out other and of normal strategic each be looking see area lines this we gathering that infrastructure area. in largely point We develop that

our these projects. XX% over stay And time capital forward you so I XX% to the when out normal to budget discrete infrastructure that take going X see would in expect of will

comes question of next The Securities. from Jayaram JPMorgan Arun

the undergoing is that mentioned possible this in meaningful time sell X. question with My is Christi production first on JKM an of agreement to volumes project regarding to is Corpus accelerated with Question at the first this call, your tied end for some year you Stage their perhaps conference they a marketing line LNG and on by Cheniere project link XXXX. some for basis,

marketing give was would So earlier receipt some I you wondering agreement kick gas? thoughts of first earlier coincident in with could us if the an

to confidential operations. right, we're and what probably gas really to right? to we terms Ezra about facility. having of this importantly, pipeline on connectivity, place. comments heard and more that same I'm tell point we've direct their as mean, we're talk then too in have comment Arun, connection you you say that that saw can to infrastructure want you I is some what effectively agreement. going of is I very a to But put a Lance. feed strategic I nature and that is on bit But start not to early, the to And getting excited, the I'd of little agreement in the of Billy taking the going Cheniere heard

that as facility LNG a to the help here just that U.S. So we're to because very want increase helpful we're about think be major actually of to that's going from that's that see within very excited startup and going we of demand demand.

to point positioned I well So I really that. that what tell meet can want to positioned more is mean I'll that we're than Arun. we just very we're you,

this great. if there to so early to second an going deliveries. positioned start-up, there's we're to And pipeline not, at with be our be half able of the If year commence

you able earlier, be your earlier. would it if market clarify, first is like volumes Lance? Is fair, to to gas sounds Just that

We sell our would That's right. able agreement. to be into

us claimed R&D thoughts My do was And it few maybe qualify? exploration I on of do give or type spent on money the your wondering, just an historically Okay. have credit, exploration, a and magnitude maybe some activities. you several associated what E&P tax credit? with follow-up is, just if takes you that given tax Great. EOG's peers for qualify

opportunity to taking on available ago. anything We top ago credit and remember the took We going R&D We researched don't and planning the on what took Ann. forward. to -- is the head. years anything have us. we years this took several went back year we're my can't take several forward. not And again was the But of R&D an off I it

This to turn Yacob concludes session. I Mr. the remarks. like over back for to would question-and-answer the any closing conference

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