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EOG Resources, Inc., First Quarter 2023 Results

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   |    Thursday,May 11,2023

EOG Resources, Inc., announced first quarter 2023 results.


  • Earned adjusted net income of $1.6 billion, or $2.69 per share
  • Generated $1.1 billion of free cash flow
  • Declared regular quarterly dividend of $0.825 per share
  • Repurchased $310 million of shares during the first quarter
  • Oil, NGL, and natural gas production above guidance midpoints
  • Capital expenditures, per-unit cash operating costs and per-unit DD&A below guidance midpoints
EOG Resources reported first quarter 2023 results.
Ezra Yacob, Chairman and Chief Executive Officer, said: "EOG delivered strong first quarter results that reflect the strength of our multi-basin portfolio as well as the relentless focus of our employees to continue improving the cost structure of the company. Production volumes, capital expenditures and cash operating costs were each better than expected.

"This outstanding operating performance supported by the strength of our balance sheet enabled EOG to provide first quarter cash returns to shareholders well ahead of the pace of our annual commitment to return at least 60 percent of free cash flow. Along with our peer-leading regular dividend and a special dividend paid in the first quarter, EOG was able to use cash on the balance sheet to opportunistically repurchase shares.

"Our plan for 2023 remains focused on continuing to improve the cost basis and returns of the company by managing investment and activity at the appropriate level for each of our plays. By balancing activity between foundational assets such as the Delaware Basin and Eagle Ford and emerging plays including the South Texas Dorado, Southern Powder River Basin and Ohio Utica Combo, our plan delivers strong returns and cash flow this year and positions the company to further improve over the long term. EOG is in a better position than ever to deliver value for our shareholders and play a significant role in the long-term future of energy."

Regular Dividend and First Quarter Share Repurchases

The Board of Directors today declared a dividend of $0.825 per share on EOG's common stock. The dividend will be payable July 31, 2023, to stockholders of record as of July 17, 2023. The indicated annual rate is $3.30 per share.

During the first quarter, the company repurchased 2.9 million shares for $310 million under its share repurchase authorization, at an average purchase price of approximately $105 per share.

First Quarter 2023 Financial Performance


  • Crude oil, NGL and natural gas prices declined in 1Q compared with 4Q


  • Total 1Q oil production of 457,700 Bopd was above the midpoint of the guidance range and down 2% from 4Q, reflecting a planned change in activity mix
  • NGL production increased 12% compared with 4Q due to increased ethane extraction
  • Natural gas production increased 7% compared with 4Q, primarily driven by production from South Texas Dorado
  • Total company equivalent production increased 4% from 4Q

Per-Unit Costs

  • DD&A, transportation, gathering and processing and G&A costs decreased in 1Q compared with 4Q, while lease and well expenses remained flat


  • Lower commodity prices in 1Q were partially offset by increased earnings related to hedging

Free Cash Flow

  • Cash flow from operations before changes in working capital was $2.6 billion
  • EOG incurred $1.5 billion of capital expenditures
  • This resulted in $1.1 billion of free cash flow

Cash Return, Debt Maturity, and Working Capital

  • Paid $1.1 billion in dividends, including $0.6 billion of special dividends
  • Repurchased $310 million of stock
  • Repaid $1.25 billion of debt upon maturity with cash on hand
  • Changes in working capital accounted for $0.7 billion of the increase in cash, partially offset by $0.1 billion of other items


First Quarter 2023 Operating Performance

Lease and Well

Per-unit lease and well costs remained flat in 1Q compared with 4Q and were below the guidance midpoint. Fuel prices were lower than forecast, partially offset by higher well maintenance costs.

Transportation; Gathering and Processing

Per-unit transportation and G&P costs declined 1Q and were below the guidance midpoints. Transportation costs were below the guidance range due to improved optimization of firm pipeline capacity.

General and Administrative

Per-unit G&A costs declined in 1Q and were below the guidance midpoint due to lower employee-related expenses.

Depreciation, Depletion and Amortization

Per-unit DD&A costs declined in 1Q compared with 4Q and were at the low end of the guidance range. The addition of lower-cost reserves drove most of the decrease.

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