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Q2 2015 Earnings Call – EOG Resources, Inc.

EOG Resources, Inc. · Aug 7, 2015 · 30 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 2015 Earnings Call – EOG Resources, Inc. – slide 1
    NYSE Stock Symbol: EOG Investor Relations Contacts Common Dividend: 0.67 Cedric W. Burgher, SVP Investor and Public Relations Basic Shares Outstanding: 549 Million (713) 571-4658, cburghereogresources.com David J. Streit, Director IR…
  2. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 2
    2015 Plan Maintained 2015 Oil Production Guidance Lowered 2015 Capex Guidance by 200 Million Lowered 2015 LOE, G&A and Transportation Expense Guidance Balanced Capex/Discretionary Cash Flow Program 2H 2015 at Low 50s Oil Increased…
  3. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 3
    Achieve High Returns at Lower Oil Prices Maximize Return on Capital Invested in 2015 - Drill Best Plays: Eagle Ford, Delaware Basin and Bakken - Defer Well Completions Improve Well Productivity through Technology and Innovation Drive…
  4. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 4
    High-Quality Assets With Scale - Large Positions in Eagle Ford, Bakken and Permian Basin - Scale Drives Cost Savings and Leverages Technology Gains - Most Productive, Lowest-Cost Horizontal Oil Wells in the U.S. Innovation and…
  5. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 5
    Direct ATROR* at Flat Oil Prices Eagle Ford Bakken/Three Forks Core Delaware Basin Wolfcamp Delaware Basin 2nd Bone Spring Sand Delaware Basin Leonard 35% 95% 50 Oil 65 Oil Powder River Basin Wyoming DJ Basin 10% 25%…
  6. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 6
    Economics Today vs. 95 Oil Three Years Ago 100% 90% 80% 80% 60% 60% ATROR* 50% 45% 40% 35% 20% 0% Western Eagle Ford Delaware Basin Leonard 2012 95 Oil Today 65 Oil Today 55 Oil * See reconciliation schedule.…
  7. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 7
    10% 8.4% 8% 6.2% 6.0% 6% 4% 3.7% 3.4% 2% 0.9% Co. 5 Co. 6 Co. 7 Co. 8 0% EOG Co. 1 Co. 2 Co. 3 Co. 4 Peer (0.3%) Avg -2% (1.8%) -4% (4.2%) -6% (6.2%) -8% * Source: Goldman Sachs. Peer companies: APC, APA, CHK,…
  8. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 8
    EOG Employees Are Incentivized to Deliver Returns Returns Production and Reserve Growth EOG 30% 8% Co. 1 15% 30% Co. 2 50% Co. 3 40% Co. 4 15% Co. 5 10% 36% Co. 6 33% Co. 7 15% Co. 8 25% Source: Company Reports.…
  9. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 9
    Resource Net Remaining Drilling Potential Play Acres Locations* Years** (MMBoe)*** Eagle Ford 561,000 5,500 13 3,200 Bakken/Three Forks Core 120,000 590 14 620 Bakken/Three Forks Non-Core 110,000 950 400 Delaware Basin Leonard…
  10. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 10
    Gathering, Processing and Other 8.3 Bn Exploration and Development Facilities 0.7 Exploration and Development 1.0 4.7-4.9 Bn 0.4 0.7 6.6 3.7 2014 2015* Capital Plan Reduced 200 Million * Based on full-year…
  11. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 11
    80 70 60 50 40 30 20 10 0 EOG Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Co. 9 Peer Co. 10 Co. 11 Co. 12 Co. 13 Co. 14 Avg Source: Company Reports. Average employee headcount in 2014. Peer Group: APA, APC, CHK,…
  12. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 12
    14 EOG Maintains Stable LOE Despite Rising Liquids Mix 12 10 EOG Peers 2014 LOE 8 LOE/Boe 2011 2012 2014 2015E 6 2013 2010 4 2 0 0% 10% 20% 30% 40% 50% 60% 70% 80% Liquids Production Source: Company filings.…
  13. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 13
    0.70 Committed to the Dividend 0.67 Increased Dividend Twice in 2014 0.60 16 Dividend Increases in 15 Years 0.50 0.40 0.38 0.34 0.31 0.32 0.29 0.30 0.26 0.20 0.18 0.12 0.10 0.08 0.05 0.06 0.03 0.04 0.04 0.04…
  14. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 14
    Increased Estimated Reserve Potential by Canada 600 MMBoe* to 1.0 BnBoe* - 1,540 Net Remaining Locations Stanley, ND State Line - 8,400 Lateral - 7.1 MM CWC** Bakken Lite - 650 Spacing Elm Coulee Bakken Core Core Highest…
  15. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 15
    2015 Operations Focus on Bakken Core; 3 Rigs Complete 25 Net Wells in 2015 vs. 59 Net Wells in 2014 Increasing Operating Efficiencies and Adding Infrastructure - Reduce Future Operating and Capital Costs - Utilizing Zipper-Style…
  16. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 16
    Completed Well Cost* Average Drilling Days* (MM) (Spud-to-TD) 8.8 20.8 7.8 7.1 14.7 6.5 12.4 8.2 5.6 2014 2015 Plan Current Target 2012 2013 2014 2Q15 Record * Normalized to 8,400 lateral. CWC = Drilling, Completion…
  17. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 17
    Largest Oil Producer and Acreage Holder in the Eagle Ford - 15 Rigs on Average Operating in 2015 San Antonio - Complete 300 Net Wells in 2015 Estimated Potential Reserves* 3.2 BnBoe; 7,200 Net Wells - EUR 450 MBoe/Well, NAR at…
  18. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 18
    Eagle Ford West Wells Eagle Ford West Completion Design Average Cumulative Crude Oil Production* 47 High-Density Wells* vs. 41 Low-Density Wells* 2014 Vintage Wells (Mbo) (Mbo) 120 60 2015 High-Density 2014 100 Wells 50…
  19. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 19
    Completed Well Cost* Average Drilling Days* (MM) (Spud-to-TD) 6.1 14.2 5.7 5.5 5.3 10.9 8.9 7.7 4.3 2014 2015 Plan Current Target 2012 2013 2014 Current Record * Normalized to 5,300 lateral. CWC = Drilling,…
  20. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 20
    90,000 Net Acres Prospective in Northern Delaware Basin Shifting Toward Development Mode in 2015; Complete 35 Net Wells - Largest Relative Increase in Capital in 2015 - Pad Drilling and Simultaneous Completions Boost Efficiencies…
  21. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 21
    (Mbo) 70 90-Day Cumulative Production 60 All Wells Completed Since January 2014 Average Cumulative Oil Production Per Well 50 40 30 20 10 0 EOG Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Peer Co. 7 Co. 8 Co. 9 Co.…
  22. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 22
    7.7 6.5 6.0 5.7 2014 Average 2015 Plan Current Target * Normalized to 4,500 lateral. CWC = Drilling, Completion and Well-Site Facilities. EOG_0815-21
  23. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 23
    Focused on Best 140,000 Net Acres with Multiple Pay Zones - 90,000 Net Acres in Oil Play; 50,000 Net Acres in Combo Play NGLs - 1,100 Net Drilling Locations 24% Oil Typical Combo Well Gas 50% - 4,500 Lateral 26% - EUR 900 MBoe,…
  24. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 24
    Implemented High-Density Completions Beginning 2015 - Higher Production with Closer Spacing 80,000 Net Acres Estimated Reserve Potential* 550 MMBoe, Net to EOG NGLs 26% Typical Well Oil - 500 MBoe EUR/Well, Gross; 400 MBoe, NAR…
  25. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 25
    Cumulative Crude Oil Production* Average Well Spacing (Mbo) (Feet) 40 2015 2014 1,030 30 2013 2012 910 835 2011 20 560 390 10 0 0 20 40 60 2011 2012 2013 2014 2015 Producing Days * Normalized to 4,500-foot…
  26. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 26
    Play Net Type Acres Marcellus / Utica 71,000 Gas Haynesville 143,000 Gas and Combo Eagle Ford 63,000 Gas Barnett 298,000 Gas and Combo Uinta 94,000 Gas and Combo S. Texas Frio/Vicksburg 195,000 Gas and Combo Horn River 127,000 Gas…
  27. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 27
    Trinidad and Tobago Trinidad ATLANTIC OCEAN Expect Stable Production in 2015 TRINIDAD 4(a) Drill 4 Net Wells to Maintain Deliverability U(b) U(a) SECC VENEZUELA United Kingdom United Kingdom East Irish Sea…
  28. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 28
    Maintain Low Net Debt-to-Total Cap Ratio - Credit Ratings Moodys A3 / S&P A- Successful Efforts Accounting Zero Goodwill 3.4 Billion in Available Liquidity - 1.4 Billion Cash at June 30, 2015 - 2.0 Billion Credit Facility Undrawn at…
  29. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 29
    4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Peer Co. 8 Co. 9 Co. 10 Co. 11 Co. 12 Co. 13 Co. 14 EOG Co. 15 Avg Source: UBS Investment Research, as of July 27, 2015. Based on…
  30. Q2 2015 Earnings Call – EOG Resources, Inc. – slide 30
    On Track to Achieve 2015 Objectives Lower Finding and Operating Costs - Optimize Efficiencies in All Operations - Invest in Infrastructure to Lower Costs Six-Month Payouts - Capture Service Price Reductions Defer Production Growth…

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