Skip to main content Q2 2013 Earnings Call – EOG Resources, Inc. Investor Presentation | Shale Experts
Loading...
Pm

Q2 2013 Earnings Call – EOG Resources, Inc.

EOG Resources, Inc. · Aug 7, 2013 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 1
    NYSE Stock Symbol: EOG Investor Relations Contacts Common Dividend: 0.75 Maire A. Baldwin, Vice President IR Basic Shares Outstanding: 272.4 Million (713) 651-6364, Fax (713) 651-6473 mbaldwineogresources.com Internet Address: Kimberly…
  2. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 2
    Three Key Assets Provide Solid Foundation for 10+ Years of Production Growth Added Threshold Asset in 2013 Delaware Basin Wolfcamp Large Acreage Positions in Top 3 Onshore Domestic Horizontal Plays - Eagle Ford - Bakken/Three Forks…
  3. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 3
    2Q 2013 Increased FY 2013E* Production Growth Targets - Crude Oil 28% 35% - NGLs 10% 14% - Total Company 4% 7.5% Maintained Flat Capex Eagle Ford Western Acreage Drilling Success - High Rates of Return Average YTD 100% Direct…
  4. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 4
    4-Year High Margin Oil Production Profile Generates - Cash Flow Growth - EPS Growth - Free Cash Flow Free Cash Flow Priorities - Healthy Annual Dividend Growth Rate - Reduce and Maintain Low Net Debt-to-Total Cap Ratio - Accelerate…
  5. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 5
    All About Oil Grow Crude Oil 35% YOY* Focus on Key Assets - Eagle Ford, Bakken/Three Forks and Delaware Basin Improve Recovery Factors in Existing Plays Focus on New Greenfield Oil or Combo Plays Negligible North American Dry…
  6. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 6
    Best Hz Crude Oil Assets in North America Strong Organic Crude Oil Production Growth - 2010 +35% - 2011 +52% 40% Average - 2012 +39% - 2013E* +35% Differentiators Strong Liquids Growth Driven by Crude Oil, Not Condensate or…
  7. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 7
    Clearbrook, MN Innovator for Crude-by-Rail Bakken - 5 Years Experience - Competitive with Existing and 102 Announced Pipe Expansions Access to Premium Markets Provides Market Flexibility WTI 106 EOG-Owned Infrastructure Cushing,…
  8. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 8
    ROE ROCE 14.7% 11.8% 11.1% 9.4% 2012* 2013E** 2012* 2013E** * See reconciliation schedule. ** Goldman Sachs estimates July 26, 2013, 97.33 WTI and 4.15 Henry Hub in 2013. EOG_0813-7
  9. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 9
    2,000 Bakken and Eagle Ford 80% of Current Horizontal Crude Oil Production* 1,800 Eagle Ford 1,600 1,400 821 Mbod* 1,200 Rate of Growth 1,000 Slowing 800 Bakken 600 750 Mbod* 400 Permian 200 0 Jan Jul Jan Jul Jan…
  10. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 10
    900,000 800,000 700,000 600,000 Eagle Ford Hz Well 500,000 2.6x Permian Hz Well 400,000 300,000 200,000 100,000 0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Eagle Ford Bakken Permian Source IHS: Data through April…
  11. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 11
    Big Three Shale Plays Top Eagle Ford Oil Producers Eagle Ford, Bakken*, Permian** January 2011 - April 2013 January 2010 - April 2013 70 160 Cumulative Gross Oil Production (MMbo) Cumulative Gross Oil Production (MMbo) 60…
  12. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 12
    Crude and Condensate Total Liquids (Mbd) (Mbd) 278 214 214 158 156 113 105 75 55 79 46 62 31 43 2007 2008 2009 2010 2011 2012 2013E* 2007 2008 2009 2010 2011 2012 2013E* * Based on mid-point of full-year 2013…
  13. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 13
    2013 Drilling Oil Wells (Net) Years* Eagle Ford 440 12 Bakken/Three Forks 53 12 Combo Delaware Basin - Leonard 17 83 - Wolfcamp 10 118 Midland Basin Wolfcamp 32 25 Barnett 145 9 15 Years of Drilling * Based on current…
  14. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 14
    2012 2013E* 2014E - 2017E Crude Oil and Condensate 39% 35% Continued Best-in-Large-Cap NGLs 32% 14% Class Double-Digit Total Company Liquids 37% 30% Growth North American Gas** -9% -14% Modest Growth Other Gas (Trinidad, UK and…
  15. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 15
    86% 88% 79% NGLs 76% 71% 72% 59% 53% Oil 47% 41% 29% 28% 24% 21% 14% 12% 2006 2007 2008 2009 2010 2011 2012 2013E** Liquids (Crude Oil and NGLs) Natural Gas * 2006 - 2012 based on North American actual revenues. FY…
  16. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 16
    % Crude Oil Revenues 45.00 100% 40.25 40.00 39.08 35.00 34.11 80% 29.29 76% 30.00 75% 71% 60% 25.00 20.04 56% 20.00 40% 15.00 41% 10.00 20% 5.00 0.00 0% 2010 2011 2012 1Q 2013 2Q 2013 * Wellhead Revenues for Crude…
  17. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 17
    14 Dividend Increases in 14 Years 0.75 0.70 0.68 0.64 0.62 0.60 0.58 0.51 0.50 0.40 0.36 0.30 0.24 0.20 0.16 0.12 0.10 0.10 0.08 0.08 0.06 0.07 0.00 1999* 2000* 2001* 2002* 2003* 2004* 2005 2006 2007 2008…
  18. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 18
    Estimated Potential Reserves* Oil MMBo 1,500 NGLs MMBbl 375 Gas Bcf 1,950 San Antonio Total MMBoe, Net to EOG 2,200 Largest Oil Producer in the Eagle Ford 173 MBoepd, Net at June 30, 2013 Crude Oil Window Continued Outstanding…
  19. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 19
    Second Round of Reserve Increase February 2013 1.6 BnBoe to 2.2 BnBoe Potential*, Net to EOG Estimated 8% Recovery of Estimated 26.4 BnBoe in Place, Net to EOG 4,900 Drilling Locations Yet to Complete - 40-Acre Spacing in East -…
  20. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 20
    Previous Current 640 Acres 640 Acres Difference 1 Section (Unit) 10 Wells 16 Wells +6 Wells Spacing 65 Acres/Well 40 Acres/Well Est. Reserves/Well* 450 MBoe 400 MBoe Est. Reserves/640 Acres 4.5 MMBoe 6.4 MMBoe +1.9 MMBoe…
  21. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 21
    - Average Oil IP Rate Treated Lateral Length (Bopd) (Ft) 5,779 5,890 1,226 5,367 1,115 999 4,265 3,911 631 483 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 YTD YTD EOG_0813-20
  22. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 22
    Impact of New Completion Design Avg Cumulative Oil Production La Salle County, TX (120 Days*) Smart Unit 1H IP: 1,495 Bopd 30% Smart Unit 2H (Bo) Improvement IP: 2,030 Bopd 80,000 2013 60,000 Smart Unit 40,000 2012…
  23. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 23
    Completed Well Cost Drilling Days (MM) (Spud to TD) 9.1 16.9 15.1 15.0 6.8 6.7 6.8 13.4 5.8 9.9 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 YTD YTD EOG_0813-22
  24. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 24
    Smart Unit 1H and 2H IP: 1,495 and 2,030 Bopd + 60 and 75 Bpd of NGLs + 340 and 440 Mcfd Keller 1H and 2H IP: 1,855 and 2,050 Bopd + 75 and 50 Bpd of NGLs + 430 and 300 Mcfd Burrow Unit 3H, 4H and 5H IP Range: 2,990 to 7,515 Bopd…
  25. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 25
    Cumulative Oil Production* (MMbo) EOG 65 MMbo, 146 Mbod Co. 5 39 MMbo, 88 Mbod Co. 1 33 MMbo, 94 Mbod Co. 7 31 MMbo, 49 Mbod Co. 3 Co. 6 Co. 8 29 MMbo, 72 Mbod 28 MMbo, 45 Mbod 27 MMbo, 54 Mbod Co. 4 15 MMbo, 36…
  26. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 26
    Results Continue to Improve Across Acreage Canada Increased Drilling Inventory to 12 Years from 7 Years Stanley, ND State Line Core Area Bakken 90,000 Net Acres in Bakken Core Area Lite Recent Drilling Results Delivering 100%…
  27. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 27
    Average Gross EUR/Well Treated Lateral Length (MBoe) (Ft) 940 10,367 8,237 615 6,793 510 350 4,710 2010 2011 2012 2013 YTD 2010 2011 2012 2013 YTD Renaissance in the Bakken/Three Forks - Longer Laterals - Better…
  28. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 28
    Completed Well Cost Drilling Days* (MM) (Spud to TD) 24.2 23.8 24.3 10.1 9.5 8.8 16.9 5.9 2010 2011 2012 2013 YTD 2010 2011 2012 2013 YTD * Normalized to 10,000 feet. EOG_0813-27
  29. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 29
    2,500 2,271 2,012 2,000 1,914 1,846 1,808 1,791 1,754 1,735 1,701 1,668 1,500 1,000 500 0 EOG EOG EOG EOG Co. 1 EOG Co. 2 EOG Co. 3 EOG * BernsteinResearch, May 28, 2013. Peers: CLR, HES, and STO. EOG_0813-28
  30. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 30
    Delaware Basin Midland Basin New Mexico Texas Delaware Basin Leonard Wolfcamp Leonard - Activity Limited by Gas Processing Infrastructure (Expect Resolution Early 2014) Wolfcamp Wolfcamp Midland Basin Wolfcamp OOIP**/…
  31. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 31
    73,000 Net Acres - 3 Potential Pay Targets Estimated Reserve Potential* 550 MMBoe, Net to EOG Operations NGLs 49 Net Hz Wells Drilled to Date 26% Oil - 17 Net Wells Planned in 2013 50% Gas Target 5.5MM CWC 24% - 100% Direct…
  32. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 32
    114,000 Net Acres - 3 Potential Pay Targets 200 Vertical Penetrations Across Acreage - Previously Drilled Atoka, Morrow Wells Estimated Reserve Potential* 800 MMBoe, Net to EOG - Based on Low Initial Recovery Estimate, 2% - 3%…
  33. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 33
    133,000 Net Acres NGLs 30% Core Area Potential 430 MBoe/Well, Gross Oil 42% - 320 MBoe/Well, NAR Gas 28% Operations 32 Net Wells Planned in 2013 Typical Midland Wolfcamp Well Target 5.3MM CWC - 30% Direct ATROR* on 2013…
  34. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 34
    EOG is the Largest Oil Producer in the Barnett Combo 205,000 Net Acres in Core Area Revenues 89% Liquids Weighted, 46% Oil Combo Core Area - 1st Year Revenues are 68% Oil 205,000 Net Acres 3-Rig Program in 2013 Plan to Drill 145…
  35. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 35
    Trinidad and Tobago Trinidad ATLANTIC OCEAN 2Q 2013 Production as Expected TRINIDAD 4(a) U(a) U(b) Currently Completing Wells on Osprey Platform SECC - Maintain Flat Deliverability 2013 - 2014 - Osprey OA-4 On-Line…
  36. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 36
    EOG Reserves Within 5% of Independent Engineering Analysis Prepared by DeGolyer and MacNaughton - 25 Straight Years - Reviewed 87% of Proved Reserves for 2012 Conservative - Successful Efforts Accounting - Zero Goodwill - Credit…
  37. Q2 2013 Earnings Call – EOG Resources, Inc. – slide 37
    Crude Oil* Bbld /Bbl 2013 August 1 to December 31 121,190 98.82 2014 January 1 to June 30 97,972 96.48 July 1 to December 31 5,000 95.43 Natural Gas* MMBtud /MMBtu 2013 September 1 to December 31 175,000 4.75 2014 January 1…

From the store

Browse maps, data & reports in the Shale Experts store