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JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc.

EOG Resources, Inc. · Jun 29, 2016 · 41 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. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 1
    J.P. Morgan Energy Conference NYSE Stock Symbol: EOG Investor Relations Contacts Common Dividend: 0.67 Cedric W. Burgher, SVP Investor and Public Relations Basic Shares Outstanding: 550 Million (713) 571-4658, cburghereogresources.com…
  2. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 2
    1Q 2016 Announced Successful Enhanced Oil Recovery Project In Eagle Ford Established Austin Chalk Play Overlaying South Texas Eagle Ford Exceeded U.S. Oil Production Forecast Reduced LOE per BOE 29% YoY Operations Increased 2016…
  3. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 3
    Focus on Returns Shifting to Premium Locations - Generate at Least 30% Direct ATROR* at 40 Oil Premium Inventory 10 Years and Growing - Adding New Premium Inventory 2-3 Times Faster Than Drilling - Improve Existing Plays With…
  4. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 4
    Premium Drilling Direct ATROR* New Standard of Capital Discipline 100%+ Creates Large Capital Efficiency Gains 60% Faster Production Growth Adding Locations Faster Than Drilling 30% Extends U.S. Horizontal Lead 10% Globally…
  5. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 5
    120-Day Cumulative Oil Production* (Bbl Per Foot of Treated Lateral) Focus on Premium Locations 20.9 Precision Targeting Advanced Completions 13.6 10.7 Lower Costs 2014 2015 2016 Est * Domestic completions, gross oil…
  6. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 6
    Resource Net Remaining Locations* Potential Play Acres Total Premium (MMBoe)** Eagle Ford 549,000 5,200 1,535 3,200 Bakken/Three Forks Core 120,000 590 330 620 Bakken/Three Forks Non-Core 110,000 950 400 Delaware Basin Wolfcamp…
  7. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 7
    New Geologic Concept In an Existing Play Precision Targeting Key Responds Well to EOG-Style Completions Overlays Existing Eagle Ford Acreage Exhibiting Premium-Level Well Performance Two Exploratory Wells Completed YTD; Plan 7…
  8. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 8
    Four Gas Injection Pilot Projects with 15 Producing Wells - One Additional Project Planned for 2016 with 32 Wells - Geologically and Geographically Diverse - EOR Incremental Production in 2016 1,000 Net Bopd Attractive Economics -…
  9. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 9
    (Net Mbo) 600 Enhanced Oil Recovery 1.3x 1.7x 500 400 1.0x 300 200 Primary Recovery 100 0 2-5 Years JPM_0616-8
  10. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 10
    Eagle Ford West Wells Eagle Ford East Wells Average Cumulative Oil Production* Average Cumulative Oil Production* (Mbo) (Mbo) 150 150 2015 2014 120 2015 120 2013 2014 2013 2012 90 90 2012 60 60 30 30 0 0 0 30 60 90…
  11. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 11
    EOG 2X Industry Average Bopd 800 758 700 600 500 400 368 300 200 100 0 EOG Industry * Eagle Ford, Bakken, Permian, DJ and PRB. Source: IHS Performance Evaluator, supplied by IHS Global Inc.; Copyright (2016).…
  12. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 12
    1st 3 Months Number Bopd/Boed 134 of Wells 900 45 Wolfcamp Delaware Wolfcamp Midland 800 Natural Gas 40 Well Count 700 35 600 30 500 25 400 20 300 15 200 10 100 5 0 0 EOG A B C D E F G H I J K Average three-month…
  13. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 13
    3. Drill 2. Overall 1. Measure Rock Characteristics and Grade High to Low Quality Grade Lower Eagle Ford JPM_0616-12
  14. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 14
    2010 Completions 540 Events /1,000 ft 2015 Completions 4,030 Events /1,000 ft Enhance Complexity to Contain Events Closer Contact More Surface Area to Wellbore Note: Microseismic dots represent well stimulation events…
  15. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 15
    Delaware Basin South Texas Eagle Ford Bakken Wolfcamp Oil Play 11.5 8.8 7.2 6.1 7.5 5.7 6.2 6.7 5.2 2014 2015 Target 2014 2015 Target 2014 2015 Target * Normalized to 4,500 lateral. * Normalized to 5,300 lateral. *…
  16. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 16
    Delaware Basin South Texas Eagle Ford Bakken Wolfcamp Oil Play 20.8 32.8 14.2 10.9 14.7 8.9 12.4 18.7 7.8 8.5 8.8 3.7 5.4 2014 2015 Record 2012 2013 2014 2015 Record 2012 2013 2014 2015 Record * Normalized to 4,500…
  17. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 17
    3/4 Savings From Efficiencies Sustainable Efficiency Improvements +0.4MM -1.5MM 8.3MM Flowback & Water Facilities Handling -0.5MM Efficiency Savings 1.5MM Per Well 6.7MM Drilling Faster Completion Operations Supervsion…
  18. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 18
    17.02 15.39 14.49 13.72 12.84* 11.96* 2014 1Q15 2Q15 3Q15 4Q15 1Q16 G&P G&A Taxes Other Than Income Transportation LOE * Excludes one-time expenses of 18.7 million in 4Q15 related to early leasehold termination and 22.4…
  19. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 19
    Well Count Percent Oil 300 100% 250 Well Count Percent Oil 80% 200 60% 150 40% 100 20% 50 0 0% EOG A B C D E F G H I J K L M N O P Q R S * Source: Sanford C. Bernstein & Co. Thousand Club includes wells with…
  20. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 20
    (MBod) 2014 2015 2016 2017 +1,252 +726 -829 -558 9,694 9,648 9,451 9,479 9,433 9,453 9,423 9,379 9,407 9,329 9,341 9,315 9,198 9,246 9,180 9,129 9,129 8,959 9,037 8,948 8,754 8,835 8,799 8,577 8,678 8,629 8,568…
  21. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 21
    EOG Competitive Globally Brent (/BBL) 100 90 80 New Marginal Cost of Oil Oil Sands 70 ( 65 - 75) US L48 Conv Russia North Sea 60 GOM Angola Far East U.S. Tight Oil Brazil 50 Mexico Nigeria 40 Venezuela 30 Russia…
  22. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 22
    High-Quality Assets With Scale - Large Eagle Ford, Bakken and Delaware Basin Footprints - Scale Drives Cost Savings and Leverages Technology Gains Innovation and Technology Focus - In-House Completion Design - Merging Data Science and…
  23. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 23
    Reset Company to Be Successful At Low Prices Improve Well Productivity with Technology and Innovation - Enhanced Oil Recovery - Precision Lateral Targeting and High-Density Completions Lower Costs - Identify Further Efficiency…
  24. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 24
    JPM_0616-23
  25. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 25
    7 6 5 4 3 2 1 0 A B C D E F G H I J Peer K EOG L M N Avg Source: UBS Investment Research. Net debt as of 12/31/15 and 2016E EBITDAX as of April 18, 2016. Based on 40/Bbl WTI and 2.40/MMBtu. Peer Group: APA,…
  26. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 26
    Premium Inventory 30% 60% Eagle Ford Delaware Basin Wolfcamp - Oil and Combo Delaware Basin 2nd Bone Spring Sand Delaware Basin Leonard Bakken/Three Forks Core 15% 40% 40 Oil 50 Oil Powder River Basin Wyoming DJ Basin 5%…
  27. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 27
    7x Production Since 2010 1,885 1,610 1,600 1,400 Eagle Ford Bakken/Rockies Delaware Basin 700 Barnett Combo 65 2010 2011 2012 2013 2014 2015 * Estimated potential reserves net to EOG, not proved reserves. JPM_0616-26
  28. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 28
    Largest Oil Producer and Acreage Holder in the Eagle Ford - Average 5 Rigs Operating in 2016 San Antonio FAYETTE - Complete 150 Net Wells in 2016 vs. 329 in 2015 GUADALUPE BEXAR GONZALES LAVACA KINNEY UVALDE MEDINA…
  29. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 29
    Direct ATROR* 100% 80% 60% 40% 20% 0% 30 40 50 60 70 Flat Oil Price /Bbl * See reconciliation schedules. Natural gas price 2.50 per MMBtu Henry Hub. JPM_0616-28
  30. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 30
    Brushy Canyon City Hall Leonard A Leonard B 1st Bone Spring 4,800 2nd Bone Spring Wall Street 3rd Bone Spring Upper Wolfcamp Battery Park Middle Wolfcamp Lower Wolfcamp 150 40 Battery Park to Wall Street to City…
  31. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 31
    168,000 Net Acres Prospective with Multiple Target Zones - 4,500 Average Lateral; 700 Spacing NGLs - 2,130 Net Drilling Locations 24% Oil - Complete 60 Net Wells in 2016 vs. 28 in 2015 Gas 50% 26% Estimated Resource Potential 1.3…
  32. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 32
    Second Bone Spring Sand 111,000 Net Acres Prospective in Northern Delaware Basin - 1,250 Net Drilling Locations; 850 Spacing - Complete 10 Net Wells in 2016 vs. 27 in 2015 Estimated Resource Potential 500 MMBoe,* Net to EOG NGLs…
  33. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 33
    Canada Focus on Premium Locations in Bakken Core State Line Stanley, ND Complete 10 Net Wells in 2016 vs. 25 in 2015 Estimated Resource Potential 1.0 BnBoe* Bakken Lite - 1,540 Net Remaining Locations Elm Bakken Core Coulee -…
  34. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 34
    EOG Creates Most NPV per Well 4.3MM 0.8MM Top 10 Producers** EOG EOG Premium Wells -1.3MM 2015 2016 Industry production data from IHS. EOG economic analysis. * * NPV calculated using 50 WTI and 2.50 NYMEX fixed for life…
  35. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 35
    10 288.9 300.00 284.4 270.0 9 8.3 Bn 250.00 8 0.7 Oil Production (MBopd) 7 1.4 Gathering, Processing and Other 200.00 Exploration and Development Facilities 6 Exploration and Development 5 - 44% 4.7 Bn 150.00 0.3 4 0.8…
  36. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 36
    370 EOG is Industry Leader 251 217 215 200 189 161 160 156 136 EOG A B C D E F G H I Source: IHS. As of November, 2015. Peer companies: APC, CHK, CLR, COP, DVN, MRO, PXD, WLL and XOM. JPM_0616-35
  37. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 37
    9.0% 8.1% 7.3% 6.5% 5.2% 5.1% 4.9% 4.4% 2.9% 2.6% EOG A B C Peer D E F G H Avg Source: FactSet, adjusted earnings. Peer companies: APC, APA, CHK, DVN, HES, MRO, NBL and PXD. JPM_0616-36
  38. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 38
    EOG Employees Are Incentivized to Deliver Returns Production and Returns Reserve Growth EOG 25% 8% A 10% 30% B 45% C 40% D 30% E 10% 30% F 58% G 10% H 30% Source: Company Reports. Percentages represent weightings…
  39. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 39
    0.70 Committed to the Dividend 0.67 0.67 16 Dividend Increases in 17 Years 0.60 0.59 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 0.00 1999 2000 2001…
  40. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 40
    Trinidad and Tobago Trinidad Sercan Joint Development Project ATLANTIC OCEAN - 5-Well Program TRINIDAD - Complete One Well Late 2016 4(a) U(a) U(b) Limited Capital Spending in 2016 SECC VENEZUELA Active…
  41. JP Morgan Inaugural Energy Equity Conference – EOG Resources, Inc. – slide 41
    Maintain Strong Balance Sheet - Investment Grade Credit Ratings Successful Efforts Accounting Zero Goodwill 2.7 Billion in Available Liquidity - 0.7 Billion Cash at March 31, 2016 - 2.0 Billion Credit Facility Undrawn at March 31,…

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