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BAML Global Energy Conference – EOG Resources, Inc.

EOG Resources, Inc. · Nov 17, 2016 · 39 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. BAML Global Energy Conference – EOG Resources, Inc. – slide 1
    Bank of America Merrill Lynch Global Energy Conference
  2. BAML Global Energy Conference – EOG Resources, Inc. – slide 2
    3Q 2016 Raised 2017-2020 Oil Growth Outlook to 15%-25% CAGR Increased Delaware Basin Resource Estimate 155% to 6.0 BnBoe* Exceeded High End of All U.S. Production Guidance Ranges Reduced Per-Unit Lease and Well Expense 18% YoY FY…
  3. BAML Global Energy Conference – EOG Resources, Inc. – slide 3
    MBopd 800 Prior 700 15%-25% CAGR Outlook 10% - 20% 600 60 500 400 50 300 200 100 0 2016* 2017 2018 2019 2020 2020 Prior Outlook * Pro forma for full year of production from Yates in 2016 ** Discretionary Cash Flow…
  4. BAML Global Energy Conference – EOG Resources, Inc. – slide 4
    Robust Growth for Far Less Capital Premium Well Definition - Generates at Least 30% Direct ATROR* at 40 Oil - Does Not Change with Oil Prices; Benchmark Remains 40 Oil Significant Capital Productivity Increase - Higher Direct…
  5. BAML Global Energy Conference – EOG Resources, Inc. – slide 5
    Shifting to Premium Locations Premium Drilling Direct ATROR* (% Completed Premium Wells*) (Minimum Return for Premium) 98% 100%+ 81% 60% 60% 30% 23% 14% 10% 2014 2015 2016 2017 2018+ Oil: 30 40 50 60 Est Est Est *…
  6. BAML Global Energy Conference – EOG Resources, Inc. – slide 6
    Resource Potential Increased 155% to 6.0 BnBoe* Roosevelt Precision Targeting and Advanced Completions Northwest Longer Laterals Shelf Chaves 143,000 Net Acres Yates Increases Quality and Size of Acreage Position Lea…
  7. BAML Global Energy Conference – EOG Resources, Inc. – slide 7
    Nov 2015 Nov 2016 Change Net Acres 238,000 416,000 +75% Net Locations 4,900 6,330 +29% Average Lateral Length 4,500 7,200 +60% Gross EUR per Well (MBoe) - Wolfcamp Oil 750 1,330 +77% - Wolfcamp Combo 900 1,550 +72% - Second Bone…
  8. BAML Global Energy Conference – EOG Resources, Inc. – slide 8
    346,000 Net Acres Prospective with Multiple Target Zones - 2,660 Net Wells - Complete 70 Net Wells in 2016; 52 YTD NGLs 20% Estimated Resource Potential 2.9 BnBoe,* Net to EOG Oil Gas 53% 27% Oil Play - 226,000 Net Acres, 1,585…
  9. BAML Global Energy Conference – EOG Resources, Inc. – slide 9
    Boed Delaware Basin Oil Midland Basin Oil 1,000 800 Solid Colors: Barrels of Oil per Day Gray Bar: BOE of Natural Gas per Day 600 400 200 0 EOG A B C D E F G H I J K L M N O P Q R S Well Count 42 19 11 5 22 24 9 10 59…
  10. BAML Global Energy Conference – EOG Resources, Inc. – slide 10
    Short Laterals Long Laterals 640 Acres 960 Acres 640 Acres 960 640 Acres Acres Per Well Total Per Well Total Lateral, Feet 4,500 27,000 7,200 28,800 CWC* 6.7 MM 40.2 MM 7.9 MM 31.6 MM Direct ATROR** 47% 47% 78% 78%…
  11. BAML Global Energy Conference – EOG Resources, Inc. – slide 11
    Second Bone Spring NGLs 16% 289,000 Net Acres Prospective in Northern Delaware Basin - 1,870 Net Wells; 850 Spacing Gas Oil - Complete 15 Net Wells in 2016; 15 YTD 22% 62% Estimated Resource Potential 1.4 BnBoe,* Net to EOG…
  12. BAML Global Energy Conference – EOG Resources, Inc. – slide 12
    Delaware Basin Wolfcamp Oil Wells Delaware Basin Second Bone Spring Wells Average Cumulative Production* Average Cumulative Production* (MBoe) (MBoe) 300 150 2016 2016 250 125 2015 2015 200 100 150 75 100 50 50 25 0…
  13. BAML Global Energy Conference – EOG Resources, Inc. – slide 13
    Feb 2016 Aug 2016 Yates Sept 2016 Eagle Ford 1,535 1,925 - 1,925 Bakken/Three Forks Core 330 330 - 330 Delaware Basin - Wolfcamp 695 775 500 1,275 - Second Bone Spring 255 540 600 1,140 - Leonard 280 435 600 1,035 DJ Basin…
  14. BAML Global Energy Conference – EOG Resources, Inc. – slide 14
    Resource Net Total Potential** Premium Play Acres Locations* (MMBoe) Locations Eagle Ford 549,000 7,200 3,200 1,925 Bakken/Three Forks - Core 120,000 975 620 330 - Non-Core 110,000 1,125 400 - Delaware Basin - Wolfcamp 346,000…
  15. BAML Global Energy Conference – EOG Resources, Inc. – slide 15
    Delaware Basin South Texas Eagle Ford Bakken Wolfcamp Oil Play 38.3 14.2 20.8 10.9 21.5 21.1 14.7 8.9 12.4 7.8 5.7 8.5 8.6 10.5 3.6 5.4 2014 2015 3Q16 Record 2012 2013 2014 2015 3Q16 Record 2012 2013 2014 2015 3Q16…
  16. BAML Global Energy Conference – EOG Resources, Inc. – slide 16
    Delaware Basin South Texas Eagle Ford Bakken Wolfcamp Oil Play 15.4 8.8 7.2 9.8 6.1 5.7 8.5 7.8 4.9 4.8 4.6 4.5 2014 2015 3Q16 Target 2014 2015 3Q16 Target 2014 2015 3Q16 Target * Normalized to 7,000 lateral. *…
  17. BAML Global Energy Conference – EOG Resources, Inc. – slide 17
    4,185 1,925 1,535 Potential Growth February 2016 September 2016 10% Cost 10% EUR -OR- Savings Increase BAML _1116-18
  18. BAML Global Energy Conference – EOG Resources, Inc. – slide 18
    3/4 Savings From Efficiencies Sustainable Efficiency Improvements +0.4MM -1.6MM 8.3MM Flowback & Water Facilities Handling -0.6MM Efficiency Savings 1.6MM Per Well 6.5MM Drilling Faster Completion Operations Supervsion…
  19. BAML Global Energy Conference – EOG Resources, Inc. – slide 19
    17.02 14.11* 12.16* G&P G&A Taxes Other Than Income Transportation LOE 2014 2015 YTD 2016 * Excludes one-time expenses of 19.4 million in 2015 related to early leasehold termination and 45.0 million in 2016 related to…
  20. BAML Global Energy Conference – EOG Resources, Inc. – slide 20
    Uniquely Positioned for Strong 2017 Performance Return to Strong Oil Production Growth Balance Capex + Dividend with Discretionary Cash Flow Continue to Lower Costs - Further Efficiency Improvements - Insulated from Significant Price…
  21. BAML Global Energy Conference – EOG Resources, Inc. – slide 21
    U.S. Leader in Return on Capital Employed U.S. Oil Growth Leader One of Lowest Cost Producers in Global Oil Market Commitment to Safety and the Environment Create Significant Long-Term Shareholder Value BAML _1116-22
  22. BAML Global Energy Conference – EOG Resources, Inc. – slide 22
    BAML _1116-23
  23. BAML Global Energy Conference – EOG Resources, Inc. – slide 23
    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…
  24. BAML Global Energy Conference – EOG Resources, Inc. – slide 24
    Oil Production (MBod) versus Capex* (Bn) Gathering, Processing and Other 10 289 284 300Exploration and 280 Development 0.1 9 Facilities 250 0.3 8 - 44% 8.3 7 200 6 2.3 5 - 42% 150 Exploration and Development 4 4.7 100 3 2 2.7…
  25. BAML Global Energy Conference – EOG Resources, Inc. – slide 25
    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…
  26. BAML Global Energy Conference – EOG Resources, Inc. – slide 26
    Largest Oil Producer and Acreage Holder in the Eagle Ford - Average 5 Rigs Operating in 2016 San Antonio FAYETTE - Complete 220 Net Wells in 2016; 161 YTD GUADALUPE BEXAR GONZALES LAVACA Estimated Resource Potential 3.2…
  27. BAML Global Energy Conference – EOG Resources, Inc. – slide 27
    Eagle Ford West Wells Eagle Ford East Wells Average Cumulative Oil Production* Average Cumulative Oil Production* (Mbo) (Mbo) 140 140 2016 120 120 2015 2016 2014 100 2015 100 2013 2014 80 2013 80 2012 60 2012 60 40 40 20…
  28. BAML Global Energy Conference – EOG Resources, Inc. – slide 28
    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…
  29. BAML Global Energy Conference – EOG Resources, Inc. – slide 29
    3. Drill 2. Overall 1. Grade Rock Characteristics High to Low Quality Grade * Sample 1-foot core extracted from Lower Eagle Ford. Enlarged to show detail of the rock. Lower Eagle Ford * Sample 1-foot core extracted from…
  30. BAML Global Energy Conference – EOG Resources, Inc. – slide 30
    Four Gas Injection Pilot Projects Cumulative Oil Production per Well with 15 Producing Wells - One Additional Project in 2016 (Net Mbo) with 32 Wells Production Response Enhanced Oil 3 Months After Injection Recovery 1.3x 1.7x…
  31. BAML Global Energy Conference – EOG Resources, Inc. – slide 31
    Canada Focus on Premium Locations State Line Stanley, ND Bakken Complete 50 Net Wells in Williston in 2016 Lite Elm Bakken Coulee Core Estimated Resource Potential 1.0 BnBoe* Antelope - 8,400 Lateral Extension - 7.2 MM…
  32. BAML Global Energy Conference – EOG Resources, Inc. – slide 32
    Trinidad Trinidad and Tobago Sercan Joint Development Project ATLANTIC OCEAN - 5-Well Program - Complete One Well Late 2016 TRINIDAD 4(a) U(a) U(b) Limited Capital Spending in 2016 SECC Active Exploration Program…
  33. BAML Global Energy Conference – EOG Resources, Inc. – slide 33
    2014 2015 2016 2017 +1,296 +652 -681 -147 9,627 9,496 9,384 9,304 9,233 9,517 9,174 9,320 8,876 9,194 8,853 8,605 8,947 8,711 8,493 8,514 8,718 8,399 8,744 8,654 8,262 8,501 8,506 8,450 8,033 7,679 7,405 7,402 7,595…
  34. BAML Global Energy Conference – EOG Resources, Inc. – slide 34
    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…
  35. BAML Global Energy Conference – EOG Resources, Inc. – slide 35
    Percent of Wells with ATROR* Net Present Value* 10% at 50 Oil Per Well at 50 Oil 95% 79% 3.3MM 1.7MM 39% Industry Industry EOG EOG EOG EOG -0.3MM 2015 2016 2015 2016 Industry production data from IHS for U.S.…
  36. BAML Global Energy Conference – EOG Resources, Inc. – slide 36
    9.0% 8.1% 7.3% 6.5% 5.2% 5.1% 4.9% 4.4% 2.9% 2.7% EOG A B C Peer D E F G H Avg Source: FactSet, adjusted earnings. See Reconciliation Schedules. Peer companies: APC, APA, CHK, DVN, HES, MRO, NBL and PXD. BAML _1116-37
  37. BAML Global Energy Conference – EOG Resources, Inc. – slide 37
    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…
  38. BAML Global Energy Conference – EOG Resources, Inc. – slide 38
    Committed to the Dividend 0.70 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 2002…
  39. BAML Global Energy Conference – EOG Resources, Inc. – slide 39
    80% 70% 60% Issued Equity Since June 2014 50% 40% 30% 20% 10% 0% A A B C D E F G H Peer EOG I J K L M N O Avg * Source: FactSet. As of 6/30/16. See reconciliation schedule. Peer Group: APA, APC, CLR, COG,…

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