EOG Resources Reports Third Quarter 2024 Results and Raises Regular Dividend 7%
HOUSTON, Nov. 7, 2024 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported third quarter 2024 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors.
Key Financial ResultsIn millions of USD, except per-share, per-Boe and ratio data
GAAP
3Q 2024
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Total Revenue
5,965
6,025
6,123
6,357
6,212
Net Income
1,673
1,690
1,789
1,988
2,030
Net Income Per Share
2.95
2.95
3.10
3.42
3.48
Net Cash Provided by Operating Activities
3,588
2,889
2,903
3,104
2,704
Total Expenditures
1,573
1,682
1,952
1,634
1,803
Current and Long-Term Debt
3,776
3,784
3,791
3,799
3,806
Cash and Cash Equivalents
6,122
5,431
5,292
5,278
5,326
Debt-to-Total Capitalization
11.3 %
11.5 %
11.7 %
11.9 %
12.1 %
Cash Operating Costs ($/Boe)
10.15
10.11
10.37
10.52
10.19
Non - GAAP
Adjusted Net Income
1,644
1,807
1,626
1,783
2,007
Adjusted Net Income Per Share
2.89
3.16
2.82
3.07
3.44
CFO before Changes in Working Capital
2,988
3,042
2,928
2,989
3,038
Capital Expenditures
1,497
1,668
1,703
1,512
1,519
Free Cash Flow
1,491
1,374
1,225
1,477
1,519
Net Debt
(2,346)
(1,647)
(1,501)
(1,479)
(1,520)
Net Debt-to-Total Capitalization
(8.6 %)
(6.0 %)
(5.5 %)
(5.6 %)
(5.8 %)
Cash Operating Costs ($/Boe)1
10.05
10.11
10.37
10.52
10.19
Third Quarter Highlights
Volumes and per-unit cash operating costs better than guidance midpoints
Updated full-year guidance to reflect higher volumes and lower per-unit cash operating costs
Earned adjusted net income of $1.6 billion, or $2.89 per share
Generated $1.5 billion of free cash flow
Increased regular quarterly dividend by 7 percent to $0.975 per share, a $3.90 per share indicated annual rate
Repurchased $758 million of shares, totaling $2.2 billion YTD as of September 30, 2024
Third Quarter 2024 Highlights
Volumes and Capital Expenditures
Wellhead Volumes
3Q 2024
3Q 2024Guidance Midpoint
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Crude Oil and Condensate (MBod)
493.0
491.5
490.7
487.4
485.2
483.3
Natural Gas Liquids (MBbld)
254.3
250.0
244.8
231.7
235.8
231.1
Natural Gas (MMcfd)
1,970
1,945
1,872
1,858
1,831
1,704
Total Crude Oil Equivalent (MBoed)
1,075.7
1,065.6
1,047.5
1,028.8
1,026.2
998.5
Capital Expenditures ($MM)
1,497
1,525
1,668
1,703
1,512
1,519
From Ezra Yacob, Chairman and Chief Executive Officer"EOG delivered strong third quarter results, with oil volumes and total volumes better than expectations, demonstrating another quarter of outstanding execution across our multi-basin portfolio. Strong volumes and price realizations, combined with lower-than-expected per-unit cash operating costs, helped drive outstanding financial results in the quarter.
"EOG continues to generate significant free cash flow and deliver on its cash return commitments. In the third quarter, we returned approximately $1.3 billion of capital to shareholders, including $758 million of share repurchases. We are on track to return more than 85% of our expected full-year free cash flow to shareholders and have the potential for additional cash return over the balance of the year.
"We are pleased to announce a 7% increase in our regular dividend. The increase reflects both the confidence in our business and the ability to support the higher dividend through commodity price cycles. A sustainable growing regular dividend remains the primary mode of cash return to our shareholders. We also announced a $5 billion increase in our authorization for opportunistic share repurchases. This increased authorization allows us to retain flexibility on how we return additional cash to shareholders.
"EOG's balance sheet underpins the financial strength of the company and remains a strategic priority. The cash balance is expected to be consistent with levels maintained over the last several quarters. However, we anticipate increasing total debt by refinancing upcoming maturities to optimize EOG's capital structure.
"Our unique culture, focused on continuous improvement, is the key driver of our success. We continue to advance operational efficiencies and innovation to enhance productivity and reduce costs. Combined with EOG's peer-leading financial strength, the company is uniquely positioned to deliver long-term shareholder value through commodity price cycles."
Regular Dividend, Share Repurchases, and Capital Structure
Regular Dividend Increased 7% to $3.90 per Share Indicated Annual RateThe Board of Directors today declared a dividend of $0.975 per share on EOG's common stock. The dividend will be payable January 31, 2025, to stockholders of record as of January 17, 2025. The new dividend represents an indicated annual rate of $3.90 per share, a 7% increase from the previous level. EOG has never suspended or reduced its regular dividend.
Third Quarter Share RepurchasesDuring the third quarter, the company repurchased 6.1 million shares for $758 million under its share repurchase authorization, at an average purchase price of $123 per share.
Share Repurchase AuthorizationThe Board of Directors approved a $5 billion increase in the company's share repurchase authorization. The increased authorization is consistent with EOG's long-standing free cash flow priorities anchored on a stable and growing regular dividend, with additional cash return through opportunistic share repurchases and special dividends.
As of September 30, 2024, the company has repurchased 26.7 million shares for $3.2 billion and has an aggregate $6.8 billion remaining under its repurchase authorization.
Capital StructureEOG plans to optimize its capital structure. The company anticipates refinancing debt maturities due in the next 12-18 months while maintaining a cash balance similar to the past several quarters.
Third Quarter 2024 Financial Performance
Prices
Crude oil and NGL prices decreased in 3Q compared with 2Q, partially offset by an increase in natural gas prices from 2Q
Volumes
Total 3Q oil production of 493,000 Bopd was above the midpoint of the guidance range and up from 2Q
NGL production was above the midpoint of the guidance range and up 4% from 2Q
Natural gas production was above the midpoint of the guidance range and up 5% from 2Q
Total company equivalent production was above the midpoint of the guidance range and increased 3% from 2Q
Per-Unit Costs
G&A, GP&T, and DD&A expenses increased in 3Q compared with 2Q, while LOE costs decreased
Hedges
Mark-to-market hedge gains increased GAAP earnings per share in 3Q compared with losses in 2Q
Cash received to settle hedges decreased from 2Q, lowering adjusted non-GAAP earnings per share
Free Cash Flow
Cash flow from operations before changes in working capital was $3.0 billion
EOG incurred $1.5 billion of capital expenditures
Free cash flow was $1.5 billion
Cash Return and Working Capital
Paid $533 million in regular dividends
Repurchased $758 million of stock
Third Quarter 2024 Operating Performance
Lease and Well
QoQ: Decreased primarily due to lower water handling expenses and workover expenses
Guidance Midpoint: Lower primarily due to lower workover expenses and fuel costs
Gathering, Processing and Transportation Costs
QoQ: Increased primarily due to higher oil transportation expenses
Guidance Midpoint: Lower primarily due to lower compression-related fuel costs
General and Administrative
QoQ: Flat
Guidance Midpoint: Lower due to lower employee-related expenses and professional fees
Depreciation, Depletion and Amortization
QoQ: Increased primarily due to an adjustment in 3Q related to non-operated royalty interests and the impact of reserve revisions.
Guidance Midpoint: Higher primarily due to an adjustment in 3Q related to non-operated royalty interests and the impact of reserve revisions.
Third Quarter 2024 Results vs Guidance
(Unaudited)
See "Endnotes" below for related discussion and definitions.
3Q 2024
3Q 2024Guidance
Midpoint
Variance
2Q 2024
1Q 2024
4Q 2023
3Q 2023
Crude Oil and Condensate Volumes (MBod)
United States
491.8
490.7
1.1
490.1
486.8
484.6
482.8
Trinidad
1.2
0.8
0.4
0.6
0.6
0.6
0.5
Total
493.0
491.5
1.5
490.7
487.4
485.2
483.3
Natural Gas Liquids Volumes (MBbld)
Total
254.3
250.0
4.3
244.8
231.7
235.8
231.1
Natural Gas Volumes (MMcfd)
United States
1,745
1,730
15
1,668
1,658
1,653
1,562
Trinidad
225
215
10
204
200
178
142
Total
1,970
1,945
25
1,872
1,858
1,831
1,704
Total Crude Oil Equivalent Volumes (MBoed)
1,075.7
1,065.6
10.1
1,047.5
1,028.8
1,026.2
998.5
Total MMBoe
99.0
98.0
1.0
95.3
93.6
94.4
91.9
Benchmark Price
Oil (WTI) ($/Bbl)
75.16
80.55
76.97
78.33
82.18
Natural Gas (HH) ($/Mcf)
2.16
1.89
2.24
2.87
2.55
Crude Oil and Condensate - above (below) WTI4 ($/Bbl)
United States
1.79
1.75
0.04
2.16
1.49
2.28
1.43
Trinidad
(12.01)
(8.30)
(3.71)
(9.80)
(9.47)
(9.12)
(10.80)
Natural Gas Liquids - Realizations as % of WTI
Total
29.8 %
29.0 %
0.8 %
28.7 %
31.6 %
28.5 %
28.7 %
Natural Gas - above (below) NYMEX Henry Hub5 ($/Mcf)
United States
(0.32)
(0.50)
0.18
(0.32)
(0.14)
(0.15)
0.04
Natural Gas Realizations ($/Mcf)
Trinidad
3.68
3.35
0.33
3.48
3.54
3.81
3.41
Total Expenditures (GAAP) ($MM)
1,573
1,682
1,952
1,634
1,803
Capital Expenditures (non-GAAP) ($MM)
1,497
1,525
(28)
1,668
1,703
1,512
1,519
Operating Unit Costs ($/Boe)
Lease and Well
3.96
4.20
(0.24)
4.09
4.23
4.00
4.02
Gathering, Processing and Transportation Costs3
4.50
4.55
(0.05)
4.44
4.41
4.49
4.42
General and Administrative (GAAP)
1.69
1.58
1.73
2.03
1.75
General and Administrative (non-GAAP)1
1.59
1.90
(0.31)
1.58
1.73
2.03
1.75
Cash Operating Costs (GAAP)
10.15
10.11
10.37
10.52
10.19
Cash Operating Costs (non-GAAP)1
10.05
10.65
(0.60)
10.11
10.37
10.52
10.19
Depreciation, Depletion and Amortization
10.42
10.20
0.22
10.32
11.47
9.85
9.78
Expenses ($MM)
Exploration and Dry Hole
43
60
(17)
39
46
41
43
Impairment (GAAP)
15
81
19
79
54
Impairment (excluding certain impairments (non-GAAP))6
15
70
(55)
46
17
60
31
Capitalized Interest
12
13
(1)
10
10
9
8
Net Interest
31
33
(2)
36
33
35
36
TOTI (% of Wellhead Revenue) (GAAP)
6.5 %
7.5 %
7.7 %
6.6 %
7.4 %
TOTI (% of Wellhead Revenue) (non-GAAP)1
7.2 %
8.0 %
(0.8 %)
7.5 %
7.7 %
6.6 %
7.4 %
Income Taxes
Effective Rate
21.6 %
21.5 %
0.1 %
21.7 %
22.2 %
21.6 %
21.1 %
Current Tax (Benefit) / Expense ($MM)
240
380
(140)
341
312
352
486
Fourth Quarter and Full-Year 2024 Guidance7
(Unaudited)
See "Endnotes" below for related discussion and definitions.
4Q 2024
Guidance Range
4Q 2024
Midpoint
FY 2024
Guidance Range
FY 2024
Midpoint
2023
Actual
2022
Actual
2021
Actual
Crude Oil and Condensate Volumes (MBod)
United States
489.4
-
494.4
491.9
488.7
-
491.7
490.2
475.2
460.7
443.4
Trinidad
0.9
-
1.3
1.1
0.4
-
1.4
0.9
0.6
0.6
1.5
Other International
0.0
-
0.0
0.0
0.0
-
0.0
0.0
0.0
0.0
0.1
Total
490.3
-
495.7
493.0
489.1
-
493.1
491.1
475.8
461.3
445.0
Natural Gas Liquids Volumes (MBbld)
Total
255.0
-
265.0
260.0
246.6
-
249.1
247.8
223.8
197.7
144.5
Natural Gas Volumes (MMcfd)
United States
1,800
-
1,850
1,825
1,718
-
1,730
1,724
1,551
1,315
1,210
Trinidad
235
-
265
250
216
-
224
220
160
180
217
Other International
0
-
0
0
0
-
0
0
0
0
9
Total
2,035
-
2,115
2,075
1,934
-
1,954
1,944
1,711
1,495
1,436
Crude Oil Equivalent Volumes (MBoed)
United States
1,044.4
-
1,067.7
1,056.1
1,021.6
-
1,029.1
1,025.3
957.5
877.5
789.6
Trinidad
40.1
-
45.5
42.8
36.4
-
38.7
37.6
27.3
30.7
37.7
Other International
0.0
-
0.0
0.0
0.0
-
0.0
0.0
0.0
0.0
1.6
Total
1,084.5
-
1,113.2
1,098.9
1,058.0
-
1,067.8
1,062.9
984.8
908.2
828.9
Benchmark Price
Oil (WTI) ($/Bbl)
77.61
94.23
67.96
Natural Gas (HH) ($/Mcf)
2.74
6.64
3.85
Crude Oil and Condensate - above (below) WTI4 ($/Bbl)
United States
1.00
-
2.50
1.75
1.60
-
2.00
1.80
1.57
2.99
0.58
Trinidad
(11.10)
-
(9.60)
(10.35)
(11.44)
-
(11.20)
(11.32)
(9.03)
(8.07)
(11.70)
Natural Gas Liquids - Realizations as % of WTI
Total
27.0 %
-
37.0 %
32.0 %
29.0 %
-
32.0 %
30.5 %
29.7 %
39.0 %
50.5 %
Natural Gas - above (below) NYMEX Henry Hub5 ($/Mcf)
United States
(0.75)
-
0.05
(0.35)
(0.40)
-
(0.20)
(0.30)
(0.04)
0.63
1.03
Natural Gas Realizations8 ($/Mcf)
Trinidad
3.30
-
4.00
3.65
3.50
-
3.70
3.60
3.65
4.43
3.40
Total Expenditures (GAAP) ($MM)
6,818
5,610
4,255
Capital Expenditures9 (non-GAAP) ($MM)
1,230
-
1,430
1,330
6,100
-
6,300
6,200
6,041
4,607
3,755
Operating Unit Costs ($/Boe)
Lease and Well
4.00
-
4.40
4.20
4.07
-
4.17
4.12
4.05
4.02
3.75
Gathering, Processing and Transportation Costs3
4.25
-
4.65
4.45
4.40
-
4.50
4.45
4.50
4.78
4.70
General and Administrative (GAAP)
1.75
-
2.05
1.90
1.65
-
1.75
1.70
1.78
1.72
1.69
General and Administrative (non-GAAP)1
1.78
1.67
1.69
Cash Operating Costs (GAAP)
10.00
-
11.10
10.55
10.12
-
10.42
10.27
10.33
10.52
10.14
Cash Operating Costs (non-GAAP)1
10.33
10.47
10.14
Depreciation, Depletion and Amortization
9.85
-
10.85
10.35
10.50
-
10.76
10.63
9.72
10.69
12.07
Expenses ($MM)
Exploration and Dry Hole
40
-
80
60
168
-
208
188
182
204
225
Impairment (GAAP)
202
382
376
Impairment (excluding certain impairments (non-GAAP))6
90
-
150
120
160
-
240
200
160
269
361
Capitalized Interest
9
-
13
11
40
-
44
42
33
36
33
Net Interest
31
-
35
33
131
-
135
133
148
179
178
TOTI (% of Wellhead Revenue) (GAAP)
6.5 %
-
8.5 %
7.5 %
6.5 %
-
8.5 %
7.5 %
7.4 %
7.0 %
6.8 %
TOTI (% of Wellhead Revenue) (non-GAAP)1
7.4 %
7.5 %
6.8 %
Income Taxes
Effective Rate
19.0 %
-
24.0 %
21.5 %
19.0 %
-
24.0 %
21.5 %
21.6 %
21.7 %
21.4 %
Current Tax / Expense ($MM)
445
-
545
495
1,340
-
1,440
1,390
1,415
2,208
1,393
Third Quarter 2024 Results WebcastFriday, November 8, 2024, 9:00 a.m. Central time (10:00 a.m. Eastern time)Webcast will be available on EOG's website for one year.http://investors.eogresources.com/Investors
About EOGEOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad. To learn more visit www.eogresources.com.
Investor ContactsPearce Hammond 713-571-4684Neel Panchal 713-571-4884Shelby O'Connor 713-571-4560
Media ContactKimberly Ehmer 713-571-4676
Endnotes
1)
Cash Operating Costs consist of LOE, GP&T and G&A. TOTI (% of Wellhead Revenue) (non-GAAP) and G&A (non-GAAP) for each of 3Q 2024 and fiscal year 2022 exclude a state severance tax refund and related consulting fees, respectively, as reflected in the accompanying reconciliation schedules (see "Revenues, Costs and Margins Per Barrel of Oil Equivalent"). The per-Boe impact of such consulting fees on G&A and total Cash Operating Costs for 3Q 2024 and fiscal year 2022 was $(0.10) and $(0.05), respectively.
2)
Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions (for GAAP earnings per share only), other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income, interest expense and the impact of changes in the effective income tax rate.
3)
Effective January 1, 2024, EOG combined Transportation Costs and Gathering and Processing Costs into one line item titled Gathering, Processing and Transportation Costs. This presentation has been conformed for all periods presented and had no impact on previously reported Net Income.
4)
EOG bases United States and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.
5)
EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the NYMEX Last Day Settle price for each of the applicable months.
6)
In general, EOG excludes impairments which are (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets). EOG believes excluding these impairments from total impairment costs is appropriate and provides useful information to investors, as such impairments were caused by factors outside of EOG's control (versus, for example, impairments that are due to EOG's proved oil and gas properties not being as productive as it originally estimated).
7)
The forecast items for the fourth quarter and full year 2024 set forth above for EOG are based on currently available information and expectations as of the date of this press release. EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. This forecast, which should be read in conjunction with this press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.
8)
The full-year 2022 realized natural gas price for Trinidad includes a one-time pricing adjustment of $0.76/Mcf for prior-period production following a contract amendment with the National Gas Company of Trinidad and Tobago Limited (NGC).
9)
The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs, Non-Cash Exchanges and Transactions and exploration costs incurred as operating expenses.
Glossary
Acq
Acquisitions
ATROR
After-tax rate of return
Bbl
Barrel
Bn
Billion
Boe
Barrels of oil equivalent
Bopd
Barrels of oil per day
CAGR
Compound annual growth rate
Capex
Capital expenditures
CFO
Cash flow provided by operating activities before changes in working capital
CO2e
Carbon dioxide equivalent
DD&A
Depreciation, Depletion and Amortization
Disc
Discoveries
Divest
Divestitures
EPS
Earnings per share
Ext
Extensions
G&A
General and administrative expense
GHG
Greenhouse gas
GP&T
Gathering, processing & transportation expense
HH
Henry Hub
LOE
Lease operating expense, or lease and well expense
MBbld
Thousand barrels of liquids per day
MBod
Thousand barrels of oil per day
MBoe
Thousand barrels of oil equivalent
MBoed
Thousand barrels of oil equivalent per day
Mcf
Thousand cubic feet of natural gas
MMBoe
Million barrels of oil equivalent
MMcfd
Million cubic feet of natural gas per day
NGLs
Natural gas liquids
NYMEX
U.S. New York Mercantile Exchange
OTP
Other than price
QoQ
Quarter over quarter
TOTI
Taxes other than income
USD
United States dollar
WTI
West Texas Intermediate
YoY
Year over year
$MM
Million United States dollars
$/Bbl
U.S. Dollars per barrel
$/Boe
U.S. Dollars per barrel of oil equivalent
$/Mcf
U.S. Dollars per thousand cubic feet
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, operating costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "ambition," "initiative," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future financial or operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, pay and/or increase regular and/or special dividends or repurchase shares are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:
the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities;
the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
the success of EOG's cost-mitigation initiatives and actions in offsetting the impact of inflationary pressures on EOG's operating costs and capital expenditures;
the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas;
security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business, and enhanced regulatory focus on prevention and disclosure requirements relating to cyber incidents;
the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities;
the availability, cost, terms and timing of issuance or execution of mineral licenses and leases and governmental and other permits and rights-of- way, and EOG's ability to retain mineral licenses and leases;
the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax and emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
the impact of climate change-related policies and initiatives at the corporate and/or investor community levels and other potential developments related to climate change, such as (but not limited to) changes in consumer and industrial/commercial behavior, preferences and attitudes with respect to the generation and consumption of energy; increased availability of, and increased consumer and industrial/commercial demand for, competing energy sources (including alternative energy sources); technological advances with respect to the generation, transmission, storage and consumption of energy; alternative fuel requirements; energy conservation measures and emissions-related legislation; decreased demand for, and availability of, services and facilities related to the exploration for, and production of, crude oil, NGLs and natural gas; and negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, crude oil, NGLs and natural gas;
continuing political and social concerns relating to climate change and the greater potential for shareholder activism, governmental inquiries and enforcement actions and litigation and the resulting expenses and potential disruption to EOG's day-to-day operations;
the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other ESG-related initiatives and achieve its related targets, ambitions and initiatives;
EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to such properties;
the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations;
competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties;
the availability and cost of, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services;
the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities;
the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
the extent to which EOG is successful in its completion of planned asset dispositions;
the extent and effect of any hedging activities engaged in by EOG;
the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
the duration and economic and financial impact of epidemics, pandemics or other public health issues;
geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflicts), including in the areas in which EOG operates;
the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
acts of war and terrorism and responses to these acts; and
the other factors described under ITEM 1A, Risk Factors of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.
Historical Non-GAAP Financial Measures:Reconciliation schedules and definitions for the historical non-GAAP financial measures included or referenced herein as well as related discussion can be found on the EOG website at www.eogresources.com.
Cautionary Notice Regarding Forward-Looking Non-GAAP Financial Measures:In addition, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow, cash flow provided by operating activities before changes in working capital and return on capital employed, and certain related estimates regarding future performance, commodity prices and operating and financial results. Because we provide these measures on a forward-looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future changes in working capital and future impairments. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures without unreasonable efforts. Management believes these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates.
Oil and Gas Reserves:The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (and any updates to such disclosure set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K), available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.
Income Statements
In millions of USD, except share data (in millions) and per share data (Unaudited)
2023
2024
1st Qtr
