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4Q 2017 Earnings Presentation – EOG Resources, Inc.

EOG Resources, Inc. · Feb 28, 2018 · 36 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 2017 Earnings Presentation – EOG Resources, Inc. – slide 1
    4Q 2017 NYSE Stock Symbol: EOG Investor Relations Contacts Common Dividend: 0.74 David J. Streit, Vice President IR/PR Common Shares Outstanding: 579 Million (713) 571-4902, dstreiteogresources.com Kimberly M. Ehmer, Director IR/PR…
  2. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 2
    Leader in ROCE Through Commodity Cycles A Leader in Disciplined Growth Among Lowest Cost Producers in Global Oil Market Commitment to Safety and the Environment EOG _0218-3
  3. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 3
    WTI Oil: 17 28 26 61 71 95 48 60 HHub Gas: 2.20 4.10 3.40 7.20 4.20 3.70 2.70 3.00 30% 28% 26% 26% 13% Reset to Return to 22% Average Premium 10%+ 1998-2017 Strategy in 2018 19% 18% 15% 16% 14% 12% 8% 5% 5% 4% 4% 4% 2%…
  4. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 4
    EOGs % Completed Premium Wells1 Minimum Direct ATROR2 of Premium is Increasing Every Year Wells Increases with Higher Prices 90+% 85% 100%+ 60% 50% 30% 23% 14% 2014 2015 2016 2017 2018+ Oil: 40 50 60 Est (1) Percent of…
  5. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 5
    Eagle Ford Well Costs1 (MM) First Year Gross Production Per Well (MBoe) 6.1 5.7 268 272 4.7 213 4.5 4.3 182 140 2014 2015 2016 2017 Target 2014 2015 2016 2017 2018E Normalized to 5,300 lateral. Eagle Ford wells used to…
  6. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 6
    All-in Reserve Replacement Cost (/BOE)1 13.25 11.91 8.71 5.22 2014 2015 2016 2017 DD&A (/BOE) 18.43 17.34 15.86 15.34 13.30 2014 2015 2016 2017 2018E2 2018E** Higher ROCE (1) Excluding revisions due to price.…
  7. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 7
    2017 Grew Total Crude Oil Production 19% Within Cash Flow, Reduced Debt, Maintained Dividend and Increased ROCE 2018 Grow Total Crude Oil Production 16-20%1 With Over 1.5 Billion Free Cash Flow2 at 60 Oil and Increase the…
  8. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 8
    Grew U.S. Crude Oil Production 20% - Covered Capex + Dividend with Discretionary Cash Flow Announced Two New Premium Oil Plays - Woodford Oil Window & First Bone Spring Added 2,000 Net Locations to Premium Inventory - Replaced…
  9. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 9
    Lowered Cash Operating Costs1 Reduced DD&A Rate 12% by Drilling Low Finding Cost Premium Wells Reduced Completed Well Costs2 by 7% Diversified Marketing Options to Secure Capacity & Capture Higher Prices Reduced…
  10. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 10
    8,000 6,000 3,200 Feb 2016 Feb 2017 Feb 2018 Resource 2.0 BnBoe 5.1 BnBoe 7.3 BnBoe Potential2 Per Well 625 MBoe 850 MBoe 900 MBoe (1) Premium locations are shown on a net basis and are all undrilled. (2) Estimated…
  11. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 11
    Well Count 300 250 200 150 100 50 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 peak 30-day production over 1,000 Boed. Represents…
  12. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 12
    7,000 Lateral Boed Delaware Basin Oil Midland Basin Oil 1,400 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 47 9 17 4 3 11…
  13. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 13
    Direct ATROR1 EOG 143% Industry 115% 113% 65% 45% 41% 26% 12% Eagle Ford Permian Powder River Bakken EOG % 93% 82% 78% 65% Premium2 (1) ATROR calculated using 50 WTI and 3.00 NYMEX fixed for life of well. Assumes…
  14. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 14
    Premium Strategy is Permanent - All Investments Tested at 40 Oil and 2.50 Natural Gas - Premium Wells Generate 100% Direct ATROR1 at 60 Oil - Replace Premium Inventory 2x Faster Than Drilling Forecast Double-Digit ROCE Target 16-20%…
  15. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 15
    Delaware Basin Wolfcamp Oil Play Unbundled Procurement 9.8 -9% - Raw Materials & Services 8.5 - Diversified Suppliers 7.7 7.4 - EOG Manages Logistics Innovative Service Arrangements - Support Startup Service Providers at Low…
  16. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 16
    2018 Total Completed Well Cost1 Drilling Rigs Tubular 10% Completion -85% of 2018 Rigs are Rate-Protected Spreads 13% Casing & Tubing - Locked in 80% of 2018 Tubulars at Low Prices Drilling Completion Spreads Services -…
  17. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 17
    12.861 11.391 9.951 9.911 9.172 G&A Transportation LOE 2014 2015 2016 2017 2018E 2018E** (1) Excludes one-time expenses. See reconciliation schedules. (2) Based on midpoint of 2018 guidance, as of February 27, 2018.…
  18. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 18
    MBopd 15%-25% CAGR 800 Disciplined Growth 700 60 Growth Remains a Result of Return 600 Focused Capital Allocation 16-20% Growth3 500 at 50 50 19% Growth Priority on Sustainable Improvement 400 at 50 of Cost Structure and Well…
  19. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 19
    Generate Over 1.5 Billion of Free Cash Flow1 at 60 Oil CAPEX2 + Dividend3 6.0Bn Free Cash Flow1 Dividend3 CAPEX2 50 55 60 65 WTI Oil Price (1) Discretionary Cash Flow less CAPEX and Dividend. Based on midpoint of 2018…
  20. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 20
    High Rate-of-Return Reinvestment Returning to Dividend Growth - Diverse & Deep Premium Inventory 17 Increases in 19 Years - Improve Efficiencies & Returns - Organic Exploration for High Quality 0.80 Horizontal Plays 0.70…
  21. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 21
    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…
  22. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 22
    EOG _0218-23
  23. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 23
    Multiple Markets Provide Price Flexibility EOG Permian Crude Oil and Flow Assurance Cushing Avoid Long-Term Commitments WTI Align Volumes to Highest Value Markets Midland Mid-Cush Crude Oil Exposure to Premium Gulf Coast Pricing…
  24. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 24
    Increased YE 2017 Net Proved Reserves 18% to 2,527 MMBoe Replaced 201%1 of 2017 Production Very Attractive Reserve Replacement Costs2 (/Boe) - All-in, Net of Revisions 6.56 - All-in, Excluding Revisions Due to Price 8.71 - Proved…
  25. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 25
    Data Collection Data Management Data Science Data Delivery Real-Time 65+ Proprietary Applications - Scalable Frac Fleets Rigs - Integrated Models - Predictive Analytics Algorithms Proprietary - Proprietary Algorithms Data Marts…
  26. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 26
    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…
  27. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 27
    Total Resource Undrilled Net Drilled & Undrilled Potential2 Premium Play Acres Locations1 (MMBoe) Locations3 Eagle Ford 520,000 7,200 3,200 2,425 Delaware Basin - Wolfcamp 346,000 2,660 2,900 1,700 - First Bone Spring 100,000 555…
  28. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 28
    Net Resource Potential 6.5 BnBoe1 Roosevelt - 4,800 of Stacked Potential 6,885 Net Locations; 7,200 Laterals Northwest Shelf 163,000 Net Acres Average 19 Rigs and 7 Completion Spreads Operating in 2018 Chaves Average 46API…
  29. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 29
    346,000 Net Acres Prospective with Multiple Target Zones - 2,660 Net Wells NGLs 20% - Complete 205 Net Wells in 2018 vs. 116 in 2017 Oil Gas 53% Estimated Resource Potential 2.9 BnBoe1, Net to EOG 27% Oil Play - 226,000 Net…
  30. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 30
    Second Bone Spring 289,000 Net Acres Prospective in Northern Delaware Basin NGLs 16% - 1,870 Net Wells; 850 Spacing - Complete 5 Net Wells in 2018 vs. 26 in 2017 Gas Oil 22% 62% Estimated Resource Potential 1.4 BnBoe1, Net to…
  31. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 31
    100,000 Net Acres Prospective in Northern Delaware Basin - 555 Total Net Premium Locations; 540 Net Premium Wells Remaining - 1,000 Spacing - Complete 5 Net Wells in 2018 vs. 9 in 2017 Estimated Resource Potential 540 MMBoe1 Typical…
  32. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 32
    Largest Oil Producer and Acreage Holder in the Eagle Ford FAYETTE - Average 9 Rigs and 7 Completion Spreads in 2018 San Antonio GUADALUPE - Complete 260 Net Wells in 2018 vs. 217 in 2017 BEXAR GONZALES LAVACA KINNEY UVALDE…
  33. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 33
    Average 4 Rigs and 2 Completion Spreads in 2018 Powder River Basin PRB Core MT Exploration Area Sheridan WY Powder River Basin Crook Campbell PRB Turner Sand Identified as Premium Play Weston - Testing 4,800 Column of Stacked…
  34. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 34
    High-Return Premium Play in Crude Oil Window EOG Acreage Outline - Average 2 Rigs and 1 Completion Spread Operating in 2018 CANADIAN OKLAHOMA - Complete 25 Net Wells in 2018 Oklahoma City 50,000 Net Acres Prospective - Accumulated for…
  35. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 35
    Canada Complete 20 Net Wells in 2018 vs. 35 in 2017 State Line Stanley, ND Average 1 Rig Operating in 2018 Bakken Lite Elm Bakken Coulee Estimated Resource Potential 1.0 BnBoe1 Core - 8,400 Lateral Antelope Extension -…
  36. 4Q 2017 Earnings Presentation – EOG Resources, Inc. – slide 36
    Trinidad and Tobago Focused on Exploration in 2018 - Acquire Additional State-of-the-Art Seismic - Identify High-Quality Shallow-Water Prospects TOBAGO ATLANTIC OCEAN Banyan & Osprey TRINIDAD - Completed 5 Net Wells in 2017 4(a)…

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