EOG Resources, Inc., announced first quarter 2023 results.
"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."
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.
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.
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.
Per-unit G&A costs declined in 1Q and were below the guidance midpoint due to lower employee-related expenses.
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.