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2017 JP Morgan Energy Equity Conference – EOG Resources, Inc.

EOG Resources, Inc. · Jun 27, 2017 · 44 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. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 1
    J.P. Morgan Energy Equity Conference
  2. 2017 JP Morgan Energy Equity Conference – 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 JPM_0617-3
  3. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 3
    Premium Well Definition Minimum 30% Direct ATROR* at 40 Oil Does Not Change with Oil Prices More Oil from Fewer Wells - Higher Returns with Lower Finding and Development Costs - Drives Lower DD&A Rate and Higher ROCE Adding New…
  4. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 4
    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…
  5. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 5
    Percent EOG Wells* Meeting Premium Premium Drilling Direct ATROR* Standard (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 * Domestic gross…
  6. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 6
    Well Count 300 100% 250 80% 15% of U.S. Hz Wells 1,000 BOED 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…
  7. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 7
    5,000 Lateral MBoe 250 EOG 200 Industry 150 100 50 0 Delaware Basin Bone Spring Eagle Ford Bakken SCOOP/ STACK Midland Basin Wolfcamp Wolfcamp Cumulative nine-month production, normalized to 5,000 lateral. Gas…
  8. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 8
    12-Month Cumulative MBO 300,000 300 EOG Delaware Basin Delaware Basin Peers 250 Midland Basin Peers 250,000 EOG Initiates: Bubble Area Denotes Precision Targeting 2016 30-Day IP Advanced Completions 200,000 200 2015…
  9. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 9
    * Horizontal oil wells 0 1,000 2,000 3,000 4,000 Bopd Whirling Wind 14 Fed Com 704H Whirling Wind 11 Fed Com 703H Whirling Wind 11 Fed Com 702H Rattlesnake 21 Federal Com 702H Rattlesnake 21 Federal Com 701H…
  10. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 10
    Build on EOGs Premium Foundation Deliver Double-Digit High-Return Oil Production Growth - 18% YOY Growth at 47 Flat Oil* Balance Capex + Dividend with Discretionary Cash Flow - Complete 480 Net Wells - Average 26 Rigs in 2017…
  11. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 11
    1Q 2017 Increased Premium Inventory by 1,200 Net Locations to 7,200 Wells - Premium Resource Potential Increased 27% to 6.5 BnBoe* - Increase 2.5X Forecast 2017 Well Completions - Added 700 Locations in Delaware Basin and 500 in…
  12. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 12
    7,200 6,000 4,300 3,200 1,740 Feb 2016 Aug 2016 Yates Sep 2016 May 2017 Resource 2.0 BnBoe 3.5 BnBoe 1.6 BnBoe 5.1 BnBoe 6.5 BnBoe Potential** Per Well 625 MBoe 815 MBoe 920 MBoe 850 MBoe 900 MBoe * Premium…
  13. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 13
    Delaware Basin Wolfcamp Oil South Texas Eagle Ford Bakken Play 1Q17 1Q17 9.8 -8% 5.7 -4% 8.5 7.2 1Q17 7.8 4.7 4.5 7.6 4.3 -6% 5.1 4.8 4.6 2015 2016 1Q17 Target 2015 2016 1Q17 Target 2015 2016 1Q17 Target * Normalized…
  14. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 14
    Vertical Integration - Drilling Fluids, Chemicals and Flowback - Self-Sourced Materials and Technology - Sand Costs Declining Strategic Partnerships with Vendors EOG Preferred Customer Large Scale Procurement Infrastructure Investment -…
  15. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 15
    13.53 12.09* 10.55* 10.40** 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…
  16. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 16
    EOG Employees Are Incentivized to Deliver Returns Production and Reserve Growth/ Returns Replacement EOG 30% 6% A 10% 20% B 40% C 20% 10% D 25% E 10% 30% F 25% G 10% H 30% Source: Company Reports. Percentages…
  17. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 17
    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…
  18. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 18
    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. JPM_0617-19
  19. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 19
    Internal Prospect Generation First Mover Advantage Exploration Best Rock / Best Plays Low Cost Acreage Most Prolific U.S. Horizontal Wells Culture Fastest U.S. Horizontal Driller Rate-of-Return Driven Industry Leading Completion…
  20. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 20
    JPM_0617-21
  21. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 21
    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 V W Well Count 37 7 7 19 12 14 7 15 24 4 49 18…
  22. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 22
    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…
  23. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 23
    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 In-House Software 65+ In-House Desktop and Mobile Software…
  24. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 24
    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…
  25. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 25
    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 JPM_0617-26
  26. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 26
    Enhance Complexity to Contain Events Closer Contact More Surface Area to Wellbore Note: Microseismic dots represent well stimulation events during completions. JPM_0617-27
  27. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 27
    Resource Net Total Potential** Premium Play Acres Locations* (MMBoe) Locations*** Eagle Ford 528,000 7,200 3,200 2,425 Bakken/Three Forks - Core 120,000 975 620 330 - Non-Core 110,000 1,125 400 - Delaware Basin - Wolfcamp…
  28. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 28
    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 +…
  29. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 29
    80 70 60 50 40 30 20 10 0 EOG A B C D E F Peer G H I J K L Avg Source: Company Reports. Natural gas converted at 6:1. Peer Group: APA, APC, CLR, COP, CXO, DVN, HES, MRO, NBL, NFX, PXD and XEC. JPM_0617-30
  30. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 30
    70% 60% 50% 40% 30% 20% 10% 0% A B C D E F G H Peer I J EOG K L M N O Avg * Source: Company reports as of 3/31/17 (XEC as of 12/31/16). See reconciliation schedule. Peer Companies: APA, APC, CLR, COG, COP, CXO,…
  31. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 31
    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…
  32. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 32
    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…
  33. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 33
    Delaware Basin Wolfcamp Oil South Texas Eagle Ford Bakken Play 1Q17 12.4 -5% 21.5 2016 20.4 7.8 19.4 -8% 5.9 6.0 8.5 7.8 5.4 3.4 10.5 2015 2016 1Q17 Record 2015 2016 1Q17 Record 2014 2015 2016 Record * Normalized to…
  34. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 34
    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…
  35. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 35
    Roosevelt Net Resource Potential 6.0 BnBoe* Northwest 6,330 Net Locations; 7,200 Laterals Shelf 143,000 Chaves Net Acres Average 13 Rigs Operating in 2017 Lea Delaware Significant Infrastructure Installed Basin 416,000 -…
  36. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 36
    346,000 Net Acres Prospective with Multiple Target Zones - 2,660 Net Wells NGLs - Complete 110 Net Wells in 2017 vs. 71 in 2016 20% Oil Estimated Resource Potential 2.9 BnBoe,* Net to EOG Gas 53% 27% Oil Play - 226,000 Net Acres,…
  37. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 37
    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…
  38. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 38
    Delaware Basin Wolfcamp Oil Wells Delaware Basin Second Bone Spring Wells Average Cumulative Production* Average Cumulative Production* (MBoe) (MBoe) 350 240 2016 2016 300 200 2015 250 2015 160 200 120 150 80 100 50 40…
  39. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 39
    Largest Oil Producer and Acreage Holder in the Eagle Ford - Average 8 Rigs Operating in 2017 San Antonio FAYETTE - Complete 195 Net Wells in 2017 vs. 236 in 2016 GUADALUPE GONZALES LAVACA BEXAR KINNEY UVALDE MEDINA…
  40. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 40
    Eagle Ford West Wells Eagle Ford East Wells Average Cumulative Oil Production* Average Cumulative Oil Production* (Mbo) (Mbo) 175 175 2016 2015 150 150 2014 2016 2013 2015 125 2014 125 2013 2012 100 100 75 2012 75 50 50…
  41. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 41
    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…
  42. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 42
    Canada Complete 35 Net Wells in 2017 vs. 48 in 2016 State Line Stanley, ND Estimated Resource Potential 1.0 BnBoe* Bakken Lite - 8,400 Lateral Elm Bakken - 5.1 MM CWC** in 2016; Target 4.6 MM Coulee Core - 650 Spacing Antelope…
  43. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 43
    Average 2 Rigs in Rockies in 2017 Powder River Basin PRB Core MT Exploration Powder River Basin Sheridan Area WY Crook PRB Turner Sand Identified as Premium Play - Testing 4,800 Column of Stacked Pay Campbell Weston Complete…
  44. 2017 JP Morgan Energy Equity Conference – EOG Resources, Inc. – slide 44
    Trinidad and Tobago Trinidad ATLANTIC OCEAN Sercan Joint Development Project - Completed 5 Gross / 3 Net Well Program TRINIDAD 4(a) U(a) Drill 4 Additional Gross Wells in 2H 2017 U(b) SECC Active Exploration…

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