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Q3 2013 Earnings Call – EOG Resources, Inc.

EOG Resources, Inc. · Nov 7, 2013 · 35 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. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 1
    NYSE Stock Symbol: EOG Investor Relations Contacts Common Dividend: 0.75 Maire A. Baldwin, Vice President IR Basic Shares Outstanding: 273.0 Million (713) 651-6364, Fax (713) 651-6473 mbaldwineogresources.com Internet Address: Kimberly…
  2. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 2
    Diverse Portfolio of Key Assets with 10+ Years of High Rate-of-Return Production Growth Large Acreage Positions in Top 3 Onshore Domestic Horizontal Plays - Eagle Ford - Bakken/Three Forks - Delaware Basin Leonard Added Threshold…
  3. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 3
    3Q 2013 Increased FY 2013E* Production Growth Targets Again - Crude Oil 28% 35% 39% - NGLs 10% 14% 17% - Total Company 4% 7.5% 9% Continue to Achieve 100% Direct ATROR** in Eagle Ford, Bakken and Leonard Eagle Ford Western…
  4. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 4
    Expect to be One of the Largest U.S. Oil Producers by 2017 4-Year High Margin Oil Production Profile Generates - Cash Flow Growth - EPS Growth - Free Cash Flow Free Cash Flow Priorities - Healthy Annual Dividend Growth Rate - Maintain…
  5. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 5
    Best Hz Crude Oil Assets in North America Strong Organic Crude Oil Production Growth - 2011 +52% - 2012 +39% 43% Average - 2013E* +39% Differentiators Strong Liquids Growth Driven by Crude Oil, Not Condensate or NGLs Completion…
  6. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 6
    Clearbrook, MN Innovator for Crude-by-Rail Bakken - 5 Years Experience - Competitive with Existing and Announced Pipe Expansions 81 Access to Premium Markets - 8.19/Bbl Premium Over WTI for U.S. Crude Production YTD 2013…
  7. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 7
    ROE ROCE 16.5% 12.3% 11.8% 9.4% 2012* 2013E** 2012* 2013E** * See reconciliation schedule. ** Goldman Sachs estimates November 1, 2013, 100.61 WTI and 3.82 Henry Hub in 2013. EOG_1113-6
  8. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 8
    2,200 Bakken and Eagle Ford 80% of Current Horizontal Crude Oil Production* 2,000 Eagle Ford 1,800 1,600 925 MBod* 1,400 Rate of 1,200 Growth Slowing 1,000 800 Bakken 600 827 MBod* 400 200 0 Jan Jul Jan Jul Jan…
  9. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 9
    December 2012 7,089 December 2011 6,028 1,061 2012 Growth August 2013 7,505 December 2012 7,098 407 2013 YTD Growth in 8 Months 610 2013 Annualized Growth 2013 U.S. Oil Growth Appears to Be Slowing Compared to 2012 * Source:…
  10. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 10
    900,000 800,000 700,000 600,000 Eagle Ford Hz Well 500,000 2.4x Permian Hz Well 400,000 300,000 200,000 100,000 0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Eagle Ford Bakken Permian * Source: IHS data through…
  11. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 11
    Big Three Shale Plays Eagle Ford Eagle Ford, Bakken,** Permian*** January 2011 - July 2013 January 2010 - July 2013 160 Cumulative Gross Oil Production (MMbo) Cumulative Gross Oil Production (MMbo) 80 EOG EOG 70 140 60…
  12. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 12
    Crude Oil and Condensate Total Liquids (Mbd) (Mbd) 219 284 214 158 156 113 75 105 55 79 46 62 31 43 2007 2008 2009 2010 2011 2012 2013E* 2007 2008 2009 2010 2011 2012 2013E* * Based on mid-point of full-year 2013…
  13. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 13
    2013 Drilling Oil Wells (Net) Years* Eagle Ford 460 12 Bakken/Three Forks 54 12 Combo Delaware Basin - Leonard 22 83 - Wolfcamp 10 118 Midland Basin Wolfcamp 33 25 Barnett 145 9 15 Years of Drilling * Based on current…
  14. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 14
    2012 2013E* 2014E - 2017E Crude Oil and Condensate 39% 39% Continued Best-in-Large-Cap NGLs 32% 17% Class Double-Digit Total Company Liquids 37% 33% Growth North American Gas** -9% -13% Flat to Modest Growth Other Gas…
  15. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 15
    86% 88% NGLs 79% 76% 71% 72% 59% 53% Oil 47% 41% 29% 28% 24% 21% 14% 12% 2006 2007 2008 2009 2010 2011 2012 2013E** Liquids (Crude Oil and NGLs) Natural Gas * 2006 - 2012 based on North American actual revenues.…
  16. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 16
    % Crude Oil Revenues 45.00 100% 40.36 40.00 35.00 34.11 80% 30.00 29.29 77% 71% 60% 25.00 20.04 56% 20.00 40% 15.00 41% 10.00 20% 5.00 0.00 0% 2010 2010 2011 2011 2012 2012 3Q3Q 2013 2013 YTD YTD * Wellhead…
  17. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 17
    Committed to the Dividend 0.75 0.70 10% Increase in 2013 0.68 14 Dividend Increases in 14 Years 0.62 0.64 0.60 First Priority for Free Cash Flow 0.58 0.51 0.50 0.40 0.36 0.30 0.24 0.20 0.16 0.12 0.10 0.10 0.08…
  18. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 18
    First 9 Months 2013 Oil Production Up 64% YoY Continued Outstanding Well Results 3Q 2013 San Antonio - Large Number of Western Wells Contributing to Growth and Returns - Record Western Well Kaiser Jr. Unit 1H 2,815 Bopd (IP Rate) Crude…
  19. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 19
    Second Reserve Increase February 2013 Increased Reserves from 1.6 BnBoe to 2.2 BnBoe Potential,* Net to EOG Estimated 8% Recovery of Estimated 26.4 BnBoe in Place, Net to EOG 4,900 Drilling Locations Remaining - 40-Acre Spacing in…
  20. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 20
    Average Cumulative Oil Production* Average Oil IP Rate (120 Days) (Bopd) (Bo) 30% 80,000 Improvement 1,435 1,260 2013 1,171 60,000 40,000 2012 20,000 0 0 30 60 90 120 150 180 210 240 270 300 1Q 2Q 3Q (Days) *…
  21. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 21
    Treated Lateral Length Drilling Days (Ft) (Spud to TD) 5,779 5,787 5,367 16.9 15.1 15.0 4,265 13.4 3,911 9.6 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 YTD YTD EOG_1113-20
  22. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 22
    Kaiser Jr. Unit 1H IP: 2,815 Bopd + 160 Bpd of NGLs + 940 Mcfd Vinklarek Unit 1H IP: 4,510 Bopd + 715 Bpd of NGLs + 4.2 MMcfd Nelson Zella Unit 1H and 2H IP: 1,960 and 2,810 Bopd + 120 and 100 Bpd San Antonio of NGLs + 700 and 590…
  23. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 23
    Results Continue to Improve Across Acreage Increased Drilling Inventory to 12 Years from 7 Years Canada Stanley, ND Core Area State Line Bakken 90,000 Net Acres in Bakken Core Area Lite Recent Drilling Results Delivering 100%…
  24. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 24
    Average Cumulative Oil Production* Average 30-Day Oil IP Rate* (100 Days) (Bopd) (Bo) 180,000 58% 160,000 Improvement 140,000 1,337 120,000 2013 100,000 894 80,000 2012 60,000 40,000 20,000 0 0 50 100 150 200 250 300…
  25. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 25
    2,500 2,271 2,012 2,000 1,914 1,846 1,808 1,791 1,754 1,735 1,701 1,668 1,500 1,000 500 0 EOG EOG EOG EOG Co. 1 EOG Co. 2 EOG Co. 3 EOG * BernsteinResearch, May 28, 2013. Peers: CLR, HES and STO. EOG_1113-24
  26. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 26
    1,200 EOG 1,128 1,000 Peer Avg 597 800 600 400 200 0 EOG Co.1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Peer Co. 9 Co. 10 Co. 11 Co. 12 Co. 13 Co. 14 Co. 15 Co. 16 Co. 17 Co. 18 Co. 19 Co. 20 Avg * Morgan…
  27. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 27
    Midland Basin New Mexico Texas Delaware Basin Leonard Wolfcamp Wolfcamp OOIP**/ Net Potential Net Drilling Potential Section Reserves*** Acres Years* Locations (MMBoe) (MMBoe) Delaware Basin Leonard 73,000 83…
  28. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 28
    73,000 Net Acres - 3 Potential Pay Targets NGLs Estimated Reserve Potential* 550 MMBoe, Net to EOG 26% Oil 50% Operations Gas 24% 54 Net Hz Wells Drilled to Date - 22 Net Wells Planned in 2013 Typical Leonard Target 5.5 MM CWC…
  29. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 29
    134,000 Net Acres - New Leases and Trades Have Increased Position - 3 Potential Pay Targets 200 Vertical Penetrations Across Acreage NGLs Oil 34% - Previously Drilled Atoka, Morrow Wells 32% Estimated Reserve Potential* 800…
  30. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 30
    800 EOG 635 700 Peer Avg 417 600 500 400 300 200 100 0 Co. 1 EOG Co. 2 Co. 3 Co. 4 Co. 5 Peer Co. 6 Co. 7 Co. 8 Co. 9 Co. 10 Co. 11 Co. 12 Co. 13 Co. 14 Co. 15 Avg * Morgan Stanley Research, October 18, 2013.…
  31. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 31
    113,000 Net Acres - Have High Graded Acreage Through Trades and Sales NGLs 30% Core Area Potential 430 MBoe/Well, Gross Oil 42% - 320 MBoe/Well, NAR Gas 28% Operations 33 Net Wells Planned in 2013 Typical Midland Wolfcamp…
  32. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 32
    Trinidad and Tobago Trinidad ATLANTIC OCEAN 3Q 2013 Production as Expected TRINIDAD 4(a) U(a) U(b) Recently Finished Osprey Platform Drilling Program SECC - Maintain Flat Deliverability in 2014 VENEZUELA United…
  33. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 33
    Low Net Debt-to-Total Cap Ratio…
  34. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 34
    Crude Oil* Bbld /Bbl 2013 November 1 to December 31 126,000 98.80 2014 January 1 to June 30 123,000 96.44 July 1 to December 31 9,000 95.30 Natural Gas* MMBtud /MMBtu December 2013 150,000 4.79 2014 January 1 to December 31…
  35. Q3 2013 Earnings Call – EOG Resources, Inc. – slide 35
    All About Oil Grow Crude Oil 39% YOY* Focus on Key Assets - Eagle Ford, Bakken/Three Forks and Delaware Basin Improve Recovery Factors in Existing Plays Identify and Capture New Greenfield Oil or Combo Plays Negligible North…

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