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4Q 2016 – EOG Resources, Inc.

EOG Resources, Inc. · Feb 27, 2017 · 43 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. 4Q 2016 – EOG Resources, Inc. – slide 1
    4Q 2016 NYSE Stock Symbol: EOG Investor Relations Contacts Common Dividend: 0.67 Cedric W. Burgher, SVP Investor & Public Relations Basic Shares Outstanding: 577 Million (713) 571-4658, cburghereogresources.com Kimberly M. Ehmer,…
  2. 4Q 2016 – EOG Resources, Inc. – slide 2
    U.S. Leader in Return on Capital Employed U.S. Oil Growth Leader Among Lowest Cost Producers in Global Oil Market Commitment to Safety and the Environment Create Significant Long-Term Shareholder Value EOG _0217-3
  3. 4Q 2016 – EOG Resources, Inc. – slide 3
    WTI Oil: 17 28 26 61 71 95 46 HHub Gas: 2.20 4.10 3.40 7.20 4.20 3.70 2.50 30% 28% 26% 26% 21% 1998-2016 Average 19% 18% 13.1% 15% 16% 14% 12% 8% 5% 4% 5% 4% 2% 1% -4% 1998 1999 2000 2001 2002 2003…
  4. 4Q 2016 – EOG Resources, Inc. – slide 4
    Rate-of-Return Driven Integrated Cross-Functional Teams Innovative Culture Entrepreneurial Decentralized Low-Cost Internal Prospect Generation Low Acreage Costs Best Horizontal Wells in U.S. Exploration Best Acreage in Top…
  5. 4Q 2016 – EOG Resources, Inc. – slide 5
    Identified 6,000 Net Premium Well Locations Increased Delaware Basin Resource Estimate 155% to 6.0 BnBoe* Added 180,000 Net Acres in Delaware Basin through Yates Transaction Commercialized Industrys First Enhanced Oil Recovery in…
  6. 4Q 2016 – EOG Resources, Inc. – slide 6
    2016 Wells Premium Non-Premium Direct ATROR* 100% 20% First Year Oil per Well (Gross, Bbl) 200,000 100,000 Direct Finding Cost (/Boe) 6.90 13.25 Capital Efficiency (/First Year Boed) 7,600 17,200 Number of Net Wells Completed…
  7. 4Q 2016 – EOG Resources, Inc. – slide 7
    Well Count Percent Oil 300 100% Well Count Percent Oil 250 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 T * Source: Sanford C. Bernstein & Co. Thousand Club includes wells with…
  8. 4Q 2016 – EOG Resources, Inc. – slide 8
    5,000 Lateral Boed 1,000 Delaware Basin Oil Midland Basin Oil 800 Solid Colors: Oil Gray Bar: Natural Gas 600 400 200 0 EOG A B C D E F G H I J K L M N O P Q R S T U Well Count 21 7 4 6 9 5 9 20 32 9 8 32 91 7 4 9…
  9. 4Q 2016 – EOG Resources, Inc. – slide 9
    12-Month Cumulative MBO 300,000 300 EOG Delaware Basin Delaware Basin Peers 250 Midland Basin Peers 250,000 EOG Initiates: Precision Targeting Bubble Area Denotes 2016 30-Day IP Advanced Completions 200,000 200 2015…
  10. 4Q 2016 – EOG Resources, Inc. – slide 10
    Direct ATROR* Net Present Value per Well* (MM) 151% 5.9 4.8 104% 1.8 29% 15% 0.5 EOG EOG Industry Industry EOG EOG All Industry Industry Premium All Delaware Midland Premium Wells Delaware Midland Wells Wells Basin Basin…
  11. 4Q 2016 – EOG Resources, Inc. – slide 11
    Build on EOGs Premium Foundation Deliver Double-Digit High-Return Oil Production Growth - Oil Production Increases 18% YOY at 50 Flat Oil* Balance Capex + Dividend with Discretionary Cash Flow - Drill and Complete 480 Net Wells -…
  12. 4Q 2016 – EOG Resources, Inc. – slide 12
    Vertical Integration in Selective Areas - Drilling Fluids, Chemicals and Flowback - Self-Sourced Materials and Technology - Sand Costs Declining Strategic Partnerships with Vendors EOG Preferred Customer Large Scale Procurement…
  13. 4Q 2016 – EOG Resources, Inc. – slide 13
    Delaware Basin South Texas Eagle Ford Bakken Wolfcamp Oil Play 2016 8.8 15.4 6.1 5.7 -18% 7.2 2016 2016 4.7 -29% -13% 4.3 9.8 5.1 8.5 4.6 7.8 2014 2015 2016 Target 2014 2015 2016 Target 2014 2015 2016 Target *…
  14. 4Q 2016 – EOG Resources, Inc. – slide 14
    13.53 12.09* 10.55* 10.46** G&P G&A Transportation LOE 2014 2015 2016 2017E * Excludes one-time expenses of 19.4 million in 2015 related to early leasehold termination and 47.0 million in 2016 related to voluntary…
  15. 4Q 2016 – EOG Resources, Inc. – slide 15
    2017 Estimated Capex 3.7 to 4.1 Bn* Gathering, Exploration and Processing and Other Development Facilities 6% 13% Exploration and Development 81% 2017 Outlook Resume Double-Digit High-Return Oil Growth Balance Capex +…
  16. 4Q 2016 – EOG Resources, Inc. – slide 16
    MBopd 800 700 15%-25% CAGR 60 600 500 50 400 300 200 100 0 2016* 2017 2018 2019 2020 * Pro forma for full year of production from Yates in 2016. ** Discretionary Cash Flow Capex + Current Dividend. EOG _0217-17
  17. 4Q 2016 – EOG Resources, Inc. – slide 17
    EOG _0217-18
  18. 4Q 2016 – EOG Resources, Inc. – slide 18
    Giant Data Sets - Real-Time Data Streaming in from Every Asset - Correlate with Library of Logs, Cores, 3-D Seismic and Reservoir Models Apply Proprietary Algorithms with Data Science Tools 65+ In-House Desktop and Mobile Software…
  19. 4Q 2016 – EOG Resources, Inc. – slide 19
    Real-Time Data Streams EOG Proprietary Data Science and Data Marts Predictive Algorithms Frac Fleets Rigs Wells 65+ EOG Proprietary Applications Mobile Desktop User and Field Data Inputs Other Data Sources…
  20. 4Q 2016 – EOG Resources, Inc. – slide 20
    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…
  21. 4Q 2016 – EOG Resources, Inc. – slide 21
    Enhance Complexity to Contain Events Closer Contact More Surface Area to Wellbore Note: Microseismic dots represent well stimulation events during completions. EOG _0217-22
  22. 4Q 2016 – EOG Resources, Inc. – slide 22
    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…
  23. 4Q 2016 – EOG Resources, Inc. – slide 23
    Shifting to Premium Locations Premium Drilling Direct ATROR* (% Completed Premium Wells*) (Minimum Return for Premium) 90+% 80% 100%+ 60% 50% 30% 23% 14% 10% 2014 2015 2016 2017 2018+ Oil: 30 40 50 60 Est Est * Percent of…
  24. 4Q 2016 – EOG Resources, Inc. – slide 24
    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…
  25. 4Q 2016 – EOG Resources, Inc. – slide 25
    Resource Net Total Potential** Premium Play Acres Locations* (MMBoe) Locations Eagle Ford 528,000 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…
  26. 4Q 2016 – EOG Resources, Inc. – slide 26
    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…
  27. 4Q 2016 – EOG Resources, Inc. – slide 27
    140% 120% 100% 80% 60% 40% 20% 0% EOG A B C D E Peer F G H I J K Avg Source: FactSet Estimates. Peer Companies: APA, APC, CLR, COP, CXO, DVN, HES, MRO, NBL, OXY and PXD. EOG _0217-28
  28. 4Q 2016 – EOG Resources, Inc. – slide 28
    70% 60% 50% 40% 30% 20% 10% 0% A B C D E F G H Peer I EOG J K L M N O Avg * Source: FactSet. As of 12/31/16. See reconciliation schedule. Peer Companies: APA, APC, CLR, COG, COP, CXO, DVN, HES, MRO, NBL, NFX, OXY,…
  29. 4Q 2016 – EOG Resources, Inc. – slide 29
    Committed to the Dividend 16 Increases in 17 Years 0.70 0.67 0.67 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 2003…
  30. 4Q 2016 – EOG Resources, Inc. – slide 30
    EOG Competitive Globally Brent (/BBL) 100 90 80 New Marginal Cost of Oil US L48 Conv 70 ( 65 - 75) US L48 Conv Oil Sands Russia North Sea 60 GOM Angola Far East U.S. Tight Oil Brazil 50 Mexico Nigeria 40 Venezuela 30…
  31. 4Q 2016 – EOG Resources, Inc. – slide 31
    Delaware Basin South Texas Eagle Ford Bakken Wolfcamp Oil Play 8.9 12.4 38.3 7.8 2016 2016 -24% -8% 2016 -5% 5.9 8.5 7.8 21.5 20.4 5.4 3.5 10.5 2014 2015 2016 Record 2014 2015 2016 Record 2014 2015 2016 Record *…
  32. 4Q 2016 – EOG Resources, Inc. – slide 32
    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…
  33. 4Q 2016 – EOG Resources, Inc. – slide 33
    Roosevelt Net Resource Potential 6.0 BnBoe* 6,330 Net Locations; 7,200 Laterals Northwest Shelf Chaves Average 11 Rigs Operating in 2017 143,000 Net Acres Significant Infrastructure Installed Lea - Water Sourcing and Handling…
  34. 4Q 2016 – EOG Resources, Inc. – slide 34
    346,000 Net Acres Prospective with Multiple Target Zones - 2,660 Net Wells - Complete 110 Net Wells in 2017 vs. 71 in 2016 NGLs 20% Estimated Resource Potential 2.9 BnBoe,* Net to EOG Oil Gas 53% 27% Oil Play - 226,000 Net…
  35. 4Q 2016 – EOG Resources, Inc. – slide 35
    Second Bone Spring NGLs 16% 289,000 Net Acres Prospective in Northern Delaware Basin - 1,870 Net Wells; 850 Spacing Gas Oil - Complete 25 Net Wells in 2017 vs. 13 in 2016 22% 62% Estimated Resource Potential 1.4 BnBoe,* Net to…
  36. 4Q 2016 – EOG Resources, Inc. – slide 36
    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%…
  37. 4Q 2016 – EOG Resources, Inc. – slide 37
    Delaware Basin Wolfcamp Oil Wells Delaware Basin Second Bone Spring Wells Average Cumulative Production* Average Cumulative Production* (MBoe) (MBoe) 350 200 2016 2016 300 160 2015 2015 250 200 120 150 80 100 40 50 0…
  38. 4Q 2016 – EOG Resources, Inc. – slide 38
    Largest Oil Producer and Acreage Holder in the Eagle Ford - Average 7 Rigs Operating in 2017 San Antonio FAYETTE - Complete 195 Net Wells in 2017 vs. 236 in 2016 GUADALUPE BEXAR GONZALES LAVACA KINNEY UVALDE MEDINA…
  39. 4Q 2016 – EOG Resources, Inc. – slide 39
    Eagle Ford West Wells Eagle Ford East Wells Average Cumulative Oil Production* Average Cumulative Oil Production* (Mbo) (Mbo) 175 175 150 150 2016 2015 125 2016 125 2014 2015 2013 2014 100 2013 100 2012 75 2012 75 50 50…
  40. 4Q 2016 – EOG Resources, Inc. – slide 40
    Successful 32-Well Pilot in 2016 Cumulative Oil Production per Well - Incremental Reserves 30%-70% - Well Spacing as Close as 200 (Net Mbo) Enhanced Oil Production Response 3 Months After Injection Recovery Test Supports Premium…
  41. 4Q 2016 – EOG Resources, Inc. – slide 41
    Canada Complete 35 Net Wells in 2017 vs. 48 in 2016 State Line Stanley, ND Bakken Lite Estimated Resource Potential 1.0 BnBoe* Elm Bakken - 8,400 Lateral Coulee Core - 5.1 MM CWC** in 2016; Target 4.6 MM Antelope - 650…
  42. 4Q 2016 – EOG Resources, Inc. – slide 42
    Powder River Basin Average 2 Rigs in Rockies in 2017 PRB Core MT Exploration Area Sheridan WY Crook Powder River Basin Campbell Weston PRB Turner Sand Identified as Premium Play Johnson - Testing Other Formations in 4,800…
  43. 4Q 2016 – EOG Resources, Inc. – slide 43
    Trinidad Trinidad and Tobago Sercan Joint Development Project ATLANTIC OCEAN - 5 Gross Well Program - Completed 1 Net Well Late 2016 TRINIDAD 4(a) - Complete Remaining 2 Net Wells in 2017 U(a) U(b) SECC Drill 3…

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