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Q2 2020 Investor Presentation – EOG Resources, Inc.

EOG Resources, Inc. · Aug 5, 2020 · 48 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. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 1
    Sustainable Success 2Q 2020 David Streit, Vice President IR/PR Kimberly Ehmer, Director IR/PR Neel Panchal, Director IR (713) 5714902, dstreiteogresources.com (713) 5714676, kehmereogresources.com (713) 5714884,…
  2. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 2
    LongTerm Value Creation Through HighReturn Reinvestment and Capital Discipline DoubleDigit Returns & Disciplined Organic Growth Through Commodity Cycles Growth Dependent on Oil Market Fundamentals Organic Growth Through Premium…
  3. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 3
    Premium Proves Resilient Financial Strength and LowCost Position Insulate Business Strong Financial Profile Premium Drilling Accelerated Net Debt2 Reduction Since Last Oil Price Downturn Strong Liquidity With Cash on Hand and Premium…
  4. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 4
    EOGs Shift to Premium Drove Record Performance at 58 Oil1 Key Financial Metrics: 2017 2019 14% 4.6 72% 2.2 55% Return on Increase in Free Cash Dividend Reduction in Capital Proved Flow2,4 (Bn) Increase5 Net Debt2,6 (Bn)…
  5. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 5
    Power of Premium Drilling Premium Drilling Drives Higher Returns on Capital and Higher Return of Capital Before Premium: 10% ROCE 95 Oil 1,2 Premium Drilling: 14% ROCE 58 Oil 1,2 2012 2014 Cumulative Performance (Bn) 2017 2019 Cumulative…
  6. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 6
    EOGs Record of Disciplined Reinvestment 20172019 Capex / 129% Discretionary Cash 114% Flow1 108% 103% 101% 90% 86% EOG 80% 77% Peers2 59% A B C D E F G EOG H I (1) Source: FactSet. See accompanying schedules for…
  7. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 7
    EOGs 2020 Strategic Focus Points 2Q Progress Report Drilling Program Must Earn 30% Direct ATROR1,2 1. Capital Investment Must Generate Premium High Return Development Program Supported by 4,500+ Well Inventory That Earns Rate of…
  8. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 8
    Flexibility and Execution Drive Strong Results Delivering Sustainable Improvements to Business Through Downturn in Oil Price Generated 200 MM Free Cash Flow1,2 Despite Record Low Oil Prices 2Q 2020 Results Crude Oil Production 7% Above…
  9. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 9
    Premium Proves Resilient Large Inventory of HighReturn Premium Wells Across Multiple Basins Direct AfterTax Rate of Return(%)1 110 4,500+ Premium Wells Earn 30%+ Return at 30 WTI 100%+ 100 90 80 70 58% Median Rate of Return at…
  10. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 10
    Low Cost Structure Capital Efficiency Supported by Lower F&D Costs Improving Capital Efficiency1,2 on Total Capital Program Finding & Development Cost4,5 M per Bopd Added per Boe 41 17.87 35 14.58 12.51 30 3 9.64 8.86…
  11. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 11
    2020 Quarterly Production and Capital Outlook Significant Cash Flow Uplift from Deferral of LowMargin 2Q 2020 Oil Volumes U.S. Oil Production (MBbld) 483 Manage Lower Oil Prices 468 Deferred 150 Net Wells and Shutin Production at…
  12. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 12
    LongTerm Track Record of Return on Capital Employed1 Premium Drilling Generates Higher ROCE at Materially Lower Oil Prices WTI 62 80 95 94 98 93 49 43 51 65 57 30% 27% 26% Premium Results 25% DoubleDigit Return & Growth 20% 18%…
  13. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 13
    Premium Inventory1 Growing in Quality & Size Premium Inventory Depth 4,500+ Wells Earn 30%+ Return at 30 WTI Target Replacing Premium Locations Faster than 5,000 Drilling Exploration Potential Convert NonPremium to Premium 10,500…
  14. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 14
    Strong Balance Sheet & Growing Dividend Through Commodity Price Cycles Bond Maturities From 2017 2020 Sustainable, Growing Dividend Bn per Share 7.0 1.75 0.60 1.50 0.35 5.7 0.90 1.25 0.50 1.00 1.00 0.75 Total Debt1 Retired…
  15. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 15
    EOG Culture is Our Competitive Advantage RateofReturn MultiDisciplinary Every Employee is a Driven Teamwork Business Person First Decentralized / Innovative / Safety, Environment, Culture NonBureaucratic Entrepreneurial &…
  16. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 16
    EOG Resources HighReturn Organic Growth Company ROCE Leader Disciplined LowCost Producer Commitment to Through Growth with Competitive in Sustainability Commodity Free Cash Flow Global Energy Price Cycles Market 2Q 2020 17
  17. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 17
    Appendix 2Q 2020 18
  18. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 18
    Well Positioned to Navigate Evolving Regulatory Environment Diverse Portfolio of Assets and Positive Alignment with Stakeholder Interests EOGs NonFederal vs. Federal Position MultiBasin Portfolio Supports Flexible Development 10,500 4.3…
  19. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 19
    3.0 Bn Reduction in Revised 2020 Capital Budget 2020 Plan Does Not Change with Higher Oil Price Improving Capital Efficiency6,7 on Total Capital Program Capital Program Funds Current and Future Potential Growth M per Bopd Added Feb. 2020…
  20. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 20
    EOG Continued Leading the Thousand Club in 2019 Number of Wells with 30Day Peak Rate 1,000 Boed Oil Focused 700 Gas Focused 600 500 400 300 200 100 0 EOG A B C D E F G H I J K L M N O P Q R S Source: Sanford C.…
  21. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 21
    Commitment to Sustainability: Performance and Disclosure Environmental Governance Highlights from Sustainability Report: Board 88% Independent, 25% Women GHG Intensity Rate1 Down 8% Sustainability Board Committee Methane Intensity…
  22. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 22
    Applying Technology & Innovation to Reduce Greenhouse Gas (GHG) Intensity Rates 2018 GHG Intensity Rate1 = 17.7 GHG Reduction Initiatives by Source Other (incl. Fugitives) 0.7 Companywide Leak Detection and Repair (LDAR) for Both 1.3…
  23. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 23
    Tackling GHG Emissions with Innovation Flaring ClosedLoop Gas Capture (CLGC) Pilot Downstream Interruption Project Scope: CLGC Infrastructure Automated Flow Control to Close Loop Between Compression Station and Producing Diverted…
  24. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 24
    Tackling GHG Emissions with Innovation Stationary Combustion SolarPowered Compression in the Delaware Basin Online August 2020 Project Scope: Power Electric Drive Compression with Solar/Natural Gas Hybrid Power Generation 8 MW…
  25. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 25
    Committed to Minimizing Emissions 2018 Greenhouse 60 Gas Intensity1 EOG 50 Peers2 40 30 20 10 0 A B C D E F G H EOG I J (1) Metric tons of 2018 CO2e emissions per MBoe of 2018 gross U.S. production. (2) Peers include APA,…
  26. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 26
    EOG Among Industry Leaders in Capturing Produced Gas Texas Flaring Intensity1 EOG 0.25 Industry 0.20 0.15 0.10 0.05 0.00 A B C D E F G H I J K L M N O P Q R S T EOG U V ( 1) Wellhead flared gas volumes (Mcf/d) per…
  27. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 27
    ReturnFocused Organic Growth Driven by Exploration Capturing First Mover Advantage of HighQuality Rock at Low Cost Wolfcamp M & MBoed 3rd Bone Spring 900 PRB Niobrara PRB Mowry 800 Woodford 1st & 2nd Bone Spring 700 Austin Chalk…
  28. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 28
    EOGs Diversified Marketing Options Provide Pricing Advantage & Flow Assurance EOG Marketing Strategy 2020 EOG Estimated Sales Markets Control U.S. Oil U.S. Gas NGLs EOG Firm Capacity Provides Flow Assurance Fixed Price1 Rockies Permian…
  29. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 29
    Oil & Natural Gas Export Capacity Adds Access to New International Markets Retaining Control from Wellhead to EOG Uniquely Positioned in the U.S. Oil Market Dock Maximizes Margins High Quality Crude Oil 45 API Average Reliable &…
  30. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 30
    EOG Realizes Higher Oil Prices than Peers U.S. Crude Oil and Condensate FixedPrice Contracts to Mitigate Price Realization vs. Peers1 5.27 2Q 2020 Volatility Lowered ( per Bbl) 4.96 Realized Price by 4.70 3.93 3.57 3.07 2.10 2.37…
  31. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 31
    Owning Data from Creation to DeliverySM via 100+ Apps EOG Data Supply Chain INFRASTRUCTURE Data Sensors Networks Servers Data Storage Processing Nodes User Support Enabling EOGs Culture of RealTime, ReturnsFocused Decision…
  32. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 32
    Lower Costs Drive Higher Margins 2020 2014 2015 2016 2017 2018 2019 1Q 2Q Composite Average Wellhead Revenue per Boe 58.01 30.66 26.82 35.58 45.51 38.79 30.62 14.99 Operating Costs per Boe Lease & Well 6.53 5.66 4.53 4.70 4.89 4.58…
  33. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 33
    3Q & FY 2020 Guidance1 Estimated Ranges Estimated Ranges (Unaudited) (Unaudited) 3Q 2020 Full Year 2020 3Q 2020 Full Year 2020 Daily Sales Volumes Expenses (MM) Crude Oil and Condensate Volumes (MBbld) Exploration and Dry Hole 35 45…
  34. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 34
    Play Details 2Q 2020 35
  35. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 35
    Premium Drilling in All Major U.S. Oil Basins Rocky Mountain Mid-Continent Area 10 MBopd in 2019 62 MBopd in 2019 Woodford Oil Window Powder River Basin 10 Net Wells Online in 2020 30 Net Wells Online in 2020 Wyoming DJ Basin 15 Net…
  36. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 36
    Deep Inventory of Crude Oil Assets Net Undrilled 2020 Average 2020 Average 2Q 2020 Net 2020 Net Planned Play Premium Locations1 Drilling Rigs Completion Spreads Wells Online Wells Online Eagle Ford 1,900 3 3 5 210 Delaware Basin…
  37. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 37
    Delaware Basin Brushy Canyon 2019 Highlights Produced 174 MBopd in 2019 7% Reduction in Wolfcamp Well Costs Delaware Basin Leonard Announced Wolfcamp M and Third Bone 389,000 Spring Premium Plays Net Acres 1,500 Net Premium Wells…
  38. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 38
    Amplified Focus on Efficiencies Additional Wolfcamp U Oil Well Cost Reductions Support Returns Days to Drill1 Wolfcamp U Oil Well Cost2 (MM) 7.5 18.0 7.0 13.4 12.0 2018 2019 YTD 2020 6.4 Completed Lateral Feet per Day 6.0…
  39. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 39
    South Texas Eagle Ford Oil 2019 Highlights 187 MBopd in 2019 San Antonio Record Well Drilled in 2.4 Days to 17,288 11% Well Cost Reduction Gonzales Bexar Lavaca Bellwether Asset for EOG Wilson EOG Largest Oil Producer & Acreage…
  40. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 40
    Relentless Focus on Well Cost Reductions Eagle Ford Well 8.5 Costs1 (MM) 6.4 5.7 5.3 4.6 2013 2018 2019 2020 Best To Target Date (1) Well Costs = Drilling, Completion, WellSite Facilities and Flowback. Normalized to 8,400…
  41. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 41
    Powder River Basin Parkman New Completion Technology Improving Well Results Shannon 2020 Plan 30 Net Planned Wells Online 2Q 2020 2 Net Wells Online Continue Infrastructure Development Niobrara 4,800 of Stacked Pay Turner…
  42. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 42
    Innovation and Lower Cost Improve PRB Well Returns Powder River Basin Well Costs and Well Performance PRB Niobrara Cumulative Oil Production (Mbo)1 PRB Niobrara Well Cost2 (MM) 150 +45% 100 8.0 50 New Completion Design 7.6 Prior…
  43. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 43
    Powder River Basin Plays Competitive in Premium Portfolio ( per lateral foot) 6.2 7000 Revenue1 5.5 6.0 Well Cost2 4.9 6000 5.0 Profitability Ratio3 4.0 5000 4,722 4,135 3.0 4000 3,624 2.0 3000 1.0 0.0 2000 1.0 1000 857…
  44. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 44
    Bakken/Three Forks Wyoming DJ Basin Canada Montana North Dakota Bakken Lite Laramie State Line Stanley, ND Elm Coulee Bakken Core Wyoming Antelope Extension Colorado Weld 20 Miles Core 220,000 Net Acres Bakken/Three…
  45. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 45
    Eastern Anadarko Basin Woodford Oil Window HighReturn, LowDecline Crude Oil Wet Gas Premium Play in Crude Oil Window Window Window Oklahoma Dry Gas Window Lowered Well Cost1 Target from 6.0MM to Canadian Oklahoma City 5.7MM…
  46. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 46
    Trinidad Oil Fields Highlights Gas Fields 2019 Daily Production 260 MMcfd EOG Blocks 182,000 Net Acres Under Lease Gas Sold Into Domestic Market Exploration Benefitting from 2018 Seismic Program TOBAGO 2020 Drilling Program Gas…
  47. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 47
    EOG Premium Play Details Delaware Basin Wolfcamp U First Bone Second Bone Third Bone Wolfcamp U Oil Wolfcamp M Leonard Combo Spring Spring Spring Net Prospective Acres 226,000 120,000 193,000 100,000 289,000 200,000 160,000…
  48. Q2 2020 Investor Presentation – EOG Resources, Inc. – slide 48
    EOG Premium Play Details Powder River Basin Wyoming Bakken / Woodford Oil Eagle Ford Turner DJ Basin Mowry Shale Niobrara Shale Three Forks Window Sand/Parkman Codell/Niobrara Net Prospective Acres 516,000 141,000 89,000 154,000…

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