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Barclays CEO Power Conference – EOG Resources, Inc.

EOG Resources, Inc. · Sep 6, 2017 · 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. Barclays CEO Power Conference – EOG Resources, Inc. – slide 1
    Barclays CEO Energy-Power Conference Bill Thomas
  2. Barclays CEO Power Conference – EOG Resources, Inc. – slide 2
    Industry Considerations Houston, South Texas and Energy Industry are Resilient Downstream Shutdowns Refineries and Petrochemical Plants Upstream Delays Well shut-ins, Labor, Roads, Fuel, Drilling Rigs, Completion Crews, Sand EOG…
  3. Barclays CEO Power Conference – EOG Resources, Inc. – slide 3
    2Q 2017 Exceeded High End of All U.S. Production Targets Delivered Per Unit LOE, Transportation and DD&A Rates Below Target Reduced CWC* in Delaware, Powder River and DJ Basins Achieved YTD Asset Sale Proceeds of 175 Million FY…
  4. Barclays CEO Power Conference – EOG Resources, Inc. – slide 4
    Large Inventory of Premium Drilling Locations Inventory Growing 2-3x Faster than Drilling Low Development Cost High Reinvestment Returns 40 Oil Strong Growth Within Cash Flow Industry-Leading ROCE Potential Barclays _0917-5
  5. Barclays CEO Power Conference – EOG Resources, Inc. – slide 5
    Premium Non-Premium Direct ATROR* 100% 20% First Year Gross Oil 200,000 100,000 (Bbl/ well) Direct Finding Cost 7 13 (/BOE) U.S. Production DD&A Drives Higher MBOD /BOE ROCE 335.0 17.34 15.75 278.3 2016 2017E**…
  6. Barclays CEO Power Conference – EOG Resources, Inc. – slide 6
    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…
  7. Barclays CEO Power Conference – EOG Resources, Inc. – slide 7
    Crude Oil (mbod) Wells to Sales -0.4% -2% 862 853 853 843 335 812 282 283 278 212 149 479 480 443 102 63 2010 2011 2012 2013 2014 2015 2016 2017 Forecast** * Net U.S. crude oil production and wells to sales ** Based…
  8. Barclays CEO Power Conference – EOG Resources, Inc. – slide 8
    7,200 6,000 4,300 3,200 Feb 2016 Aug 2016 Sep 2016 May 2017 Resource 6.5 BnBoe 2.0 BnBoe 3.5 BnBoe 5.1 BnBoe Potential** Per Well 625 MBoe 815 MBoe 850 MBoe 900 MBoe * Premium locations are shown on a net basis and…
  9. Barclays CEO Power Conference – EOG Resources, Inc. – slide 9
    7,000 Lateral Boed 1,400 Delaware Basin Oil Midland Basin Oil 1,200 Solid Colors: Oil 1,000 Gray Bar: Natural Gas 800 600 400 200 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 X Y Z AA Well Count 52 9 24 4 18…
  10. Barclays CEO Power Conference – EOG Resources, Inc. – slide 10
    Permian Basin GOR vs One Year Cumulative Oil* Naturally Occurring (scf/bbl) Reservoir quality 10,000 - Pressure Industry - Permeability Delaware Basin EOG Fluid Composition 1,000 Industry Midland Basin Operator-Influenced…
  11. Barclays CEO Power Conference – EOG Resources, Inc. – slide 11
    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…
  12. Barclays CEO Power Conference – EOG Resources, Inc. – slide 12
    Delaware Basin South Texas Eagle Ford Bakken Wolfcamp Oil Play 1H17 1H17 9.8 -11% 5.7 -4% 8.5 7.2 1H17 4.7 4.5 7.6 7.6 4.3 -6% 5.1 4.8 4.6 2015 2016 1H17 Target 2015 2016 1H17 Target 2015 2016 1H17 Target * Normalized…
  13. Barclays CEO Power Conference – EOG Resources, Inc. – slide 13
    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…
  14. Barclays CEO Power Conference – EOG Resources, Inc. – slide 14
    MM 1,948 1,000 2017 Consensus Cash Flow After 750 Capex & Dividend Based on 50 WTI 500 250 0 EOG (250) (500) (750) (1,000) Source: FactSet consensus, U.S E&P Companies 500MM market cap, as of 7/24/17. Consensus…
  15. Barclays CEO Power Conference – EOG Resources, Inc. – slide 15
    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. Barclays _0917-16
  16. Barclays CEO Power Conference – EOG Resources, Inc. – slide 16
    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 Barclays _0917-17
  17. Barclays CEO Power 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% 22% 1998-2016 19% Average 18% 13.2% 15% 16% 14% 12% 8% 5% 5% 4% 4% 2% 1% -4% 1998 2001 2009 2012 2015…
  18. Barclays CEO Power Conference – EOG Resources, Inc. – slide 18
    Internal Prospect Generation First Mover Advantage Exploration Best Rock / Best Plays Low Cost Acreage Culture Most Prolific U.S. Horizontal Wells Fastest U.S. Horizontal Driller Rate-of-Return Driven Industry Leading…
  19. Barclays CEO Power Conference – EOG Resources, Inc. – slide 19
    Barclays _0917-20
  20. Barclays CEO Power Conference – EOG Resources, Inc. – slide 20
    1,000 2,000 3,000 4,000 0 Bopd * Horizontal oil wells. Whirling Wind 11 Federal Com 704H Whirling Wind 11 Federal Com 703H Whirling Wind 11 Federal Com 702H Neptune 10 State Com 503H Neptune 10 State Com…
  21. Barclays CEO Power Conference – EOG Resources, Inc. – slide 21
    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…
  22. Barclays CEO Power Conference – EOG Resources, Inc. – slide 22
    LOE/Boe 14 Low-Cost Oil Producer 12 10 EOG LOE Peers 2016 LOE 8 6 2015 2017E 4 2016 2 0 0% 10% 20% 30% 40% 50% 60% 70% Oil Production Mix Source: Company filings. Peers: APA, APC, CHK, CLR, COG, CXO, DVN, ECA,…
  23. Barclays CEO Power Conference – EOG Resources, Inc. – slide 23
    Real-Time Data Streams EOG Proprietary Optimized for from Every Asset Data Marts Big Data Processing Frac Fleets In-House Developed: Algorithms Rigs Data Science Software Wells on 65+ EOG Proprietary Applications Production…
  24. Barclays CEO Power Conference – EOG Resources, Inc. – slide 24
    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 Barclays _0917-25
  25. Barclays CEO Power Conference – EOG Resources, Inc. – slide 25
    Enhance Complexity to Contain Events Closer Contact More Surface Area to Wellbore Note: Microseismic dots represent well stimulation events during completions. Barclays _0917-26
  26. Barclays CEO Power Conference – EOG Resources, Inc. – slide 26
    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…
  27. Barclays CEO Power Conference – EOG Resources, Inc. – slide 27
    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…
  28. Barclays CEO Power Conference – EOG Resources, Inc. – slide 28
    Low Financial Leverage Committed to the Dividend Net Debt to Total Capitalization* 16 Increases in 17 Years 70% 0.70 60% Peers 0.60 50% 0.50 40% 0.40 30% 0.30 20% 0.20 10% 0.10 0% 0.00 1999 2000 2001 2002 2003…
  29. Barclays CEO Power Conference – EOG Resources, Inc. – slide 29
    EOG Competitive Globally Brent (/BBL) 100 90 80 New Marginal Cost of Oil 70 ( 65 - 75) US L48 Conv USOil L48 Conv Sands Russia North Sea 60 GOM Angola Far East U.S. Tight Oil Brazil 50 Mexico Nigeria 40 Venezuela 30…
  30. Barclays CEO Power 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. Barclays CEO Power Conference – EOG Resources, Inc. – slide 31
    Roosevelt Net Resource Potential 6.0 BnBoe* 6,330 Net Locations; 7,200 Laterals Northwest Shelf Chaves 143,000 Net Acres Average 13 Rigs Operating in 2017 Significant Infrastructure Installed Lea Delaware - Water Sourcing,…
  32. Barclays CEO Power Conference – EOG Resources, Inc. – slide 32
    346,000 Net Acres Prospective with Multiple Target Zones - 2,660 Net Wells NGLs 20% - Complete 110 Net Wells in 2017 vs. 71 in 2016 Oil Gas 53% Estimated Resource Potential 2.9 BnBoe,* Net to EOG 27% Oil Play - 226,000 Net…
  33. Barclays CEO Power Conference – EOG Resources, Inc. – slide 33
    Second Bone Spring 289,000 Net Acres Prospective in Northern Delaware Basin NGLs 16% - 1,870 Net Wells; 850 Spacing - Complete 25 Net Wells in 2017 vs. 13 in 2016 Gas Oil 22% 62% Estimated Resource Potential 1.4 BnBoe,* Net to…
  34. Barclays CEO Power Conference – EOG Resources, Inc. – slide 34
    Delaware Basin Wolfcamp Oil Wells Delaware Basin Second Bone Spring Wells Average Cumulative Production* Average Cumulative Production* (MBoe) (MBoe) 350 Thousands 240 Thousands 2016 2016 300 2015 190 2015 250 200…
  35. Barclays CEO Power Conference – EOG Resources, Inc. – slide 35
    Largest Oil Producer and Acreage Holder in the Eagle Ford FAYETTE - Average 8 Rigs Operating in 2017 San Antonio - Complete 195 Net Wells in 2017 vs. 236 in 2016 GUADALUPE BEXAR GONZALES LAVACA KINNEY UVALDE MEDINA…
  36. Barclays CEO Power Conference – EOG Resources, Inc. – slide 36
    Eagle Ford West Wells Eagle Ford East Wells Average Cumulative Oil Production* Average Cumulative Oil Production* (Mbo) (Mbo) 175 175 2016 Thousands Thousands 2015 150 150 2014 2016 2013 125 2015 125 2014 2013 2012 100…
  37. Barclays CEO Power Conference – EOG Resources, Inc. – slide 37
    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…
  38. Barclays CEO Power Conference – EOG Resources, Inc. – slide 38
    Average 2 Rigs in Rockies in 2017 Powder River Basin PRB Core MT Exploration Powder River Basin Area Sheridan WY Crook PRB Turner Sand Identified as Premium Play - Testing 4,800 Column of Stacked Pay Campbell Weston Complete 30…
  39. Barclays CEO Power Conference – EOG Resources, Inc. – slide 39
    Trinidad Trinidad and Tobago Sercan Joint Development Project ATLANTIC OCEAN - Completed 5 Gross / 3 Net Well Program TRINIDAD 4(a) Completed One Additional Net Well in July U(b) U(a) - Drill and Complete Three…

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