EOG EOG Resources Inc

HOUSTON, Feb. 27, 2025 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported fourth quarter and full-year 2024 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors.

Fourth Quarter Highlights

 - Earned adjusted net income of $1.5 billion, or $2.74 per share
 - Generated $1.3 billion of free cash flow
 - Declared regular quarterly dividend of $0.975 per share and repurchased $981 million of shares
 - Oil and gas volumes, and total per-unit operating costs better than guidance midpoints

Full-Year 2024 Highlights and 2025 Capital Plan

 - Generated $5.4 billion of free cash flow and returned $5.3 billion to shareholders
 - Replaced 201% of 2024 production at a finding and development cost, excluding price revisions, of
   $7.03 per Boe (GAAP) and $6.68 per Boe (Non-GAAP)
 - Reduced average well costs 6% across multi-basin portfolio
 - Announced $6.2 billion 2025 capital plan to grow oil production 3% and total production 6%
 - EOG and Bapco Energies entered into a strategic participation agreement in Bahrain

Volumes and Capital Expenditures

From Ezra Yacob, Chairman and Chief Executive Officer
"2024 was another year of strong execution for EOG. Oil and total volumes were higher than our original plan, capital expenditures were on target, and we continued to lower cash operating costs. We improved productivity and base production performance through innovations in completion design and artificial lift automation. Along with better productivity, sustainable efficiency improvements from extended laterals and EOG's in-house drilling motor program helped lower well costs 6%. Our comprehensive marketing strategy continued to deliver peer-leading U.S. price realizations, further maximizing margins across our portfolio. 2024 also marked another year of progress in the Utica and Dorado plays that resulted in consistent, strong results helping to support higher activity going forward.

"EOG's operational execution supported the company's exceptional financial performance and record cash return to shareholders in 2024. We generated $5.4 billion in free cash flow and returned $5.3 billion, or 98%, to shareholders. This robust cash return was anchored by our sustainable, growing regular dividend, which we increased by 7%, and included $3.2 billion in share repurchases. Since we initiated share repurchases in 2023, we have reduced our share count by approximately 5%. As we continue to optimize our capital structure, our strong cash flow generation and industry-leading balance sheet better position us to deliver shareholder value through the cycles.

"We are excited about 2025 where we have detailed a disciplined plan that builds on last year's success and lays a foundation for the future. Our comprehensive investment approach, focused on returns and optimizing value from our diverse portfolio of multi-basin assets, coupled with our industry-leading exploration expertise, provide long-term visibility for high returns and strong free cash flow generation. EOG has never been better positioned to deliver long-term shareholder value and we remain focused on being among the highest return and lowest cost producers, committed to strong environmental performance and playing a significant role in the long-term future of energy."

Fourth Quarter 2024 Financial Performance

Prices

 - Crude oil prices decreased in 4Q compared with 3Q, partially offset by an increase in NGL and natural gas prices from 3Q

Volumes

 - Oil production of 494,600 Bopd was above the midpoint of the guidance range and up from 3Q
 - NGL production was below the midpoint of the guidance range and down from 3Q
 - Natural gas production was above the midpoint of the guidance range and up 6% from 3Q
 - Total company equivalent production was below the midpoint of the guidance range but increased 2% from 3Q

Per-Unit Costs

 - LOE, GP&T, and DD&A expenses decreased in 4Q compared with 3Q, while G&A costs increased

Hedges

 - Mark-to-market hedge losses decreased GAAP earnings per share in 4Q compared with 3Q
 - Cash received to settle hedges decreased from 3Q, lowering adjusted non-GAAP earnings per share

Free Cash Flow

 - Cash flow from operations before changes in working capital was $2.64 billion
 - Incurred $1.36 billion of capital expenditures
 - This resulted in $1.28 billion of free cash flow

Cash Return and Working Capital

 - Paid $509 million in regular dividends
 - Repurchased $981 million of stock
 - Completed a $1.0 billion bond offering

Full-Year 2024 Financial Performance

Prices

 - Crude oil prices decreased 2%
 - NGL prices increased 1%
 - Natural gas prices decreased 22%

Volumes

- Oil production increased 3% to 491,400 Bopd
- NGL production increased 10%
- Natural gas production increased 14%
- Total company equivalent production increased 8%

Per-Unit Costs

 - Lower LOE, GP&T, and G&A costs were offset by higher DD&A expenses in 2024

Hedges

 - Lower mark-to-market hedge gains contributed to lower GAAP earnings per share in 2024 compared with 2023
 - Higher net cash received to settle hedges partially offset lower commodity prices in 2024

Free Cash Flow

 - Cash flow from operations before changes in working capital was $11.6 billion
 - Incurred $6.2 billion of capital expenditures
 - This resulted in $5.4 billion of free cash flow

Cash Return and Working Capital

 - Paid $2.1 billion in regular dividends
 - Repurchased $3.2 billion of stock
 - Completed a $1.0 billion bond offering
 - Postponement of tax payments associated with severe weather tax relief accounted for approximately
   $700 million of the increase from working capital and other items

Fourth Quarter 2024 Operating Performance and Cash Return

Lease and Well

 - QoQ: Decreased primarily due to lower well service and labor costs

 - Guidance Midpoint: Lower primarily due to lower workover expenses, labor and fuel costs

Gathering, Processing and Transportation Costs

 - QoQ: Decreased primarily due to lower oil transportation expenses

 - Guidance Midpoint: Lower primarily due to lower compression-related fuel cost

General and Administrative

 - QoQ: Higher due to higher employee-related expenses and professional fees

 - Guidance Midpoint: Lower due to lower employee-related expenses

Depreciation, Depletion and Amortization

 - QoQ: Lower primarily due to the addition of lower cost reserves and positive reserve revisions

 - Guidance Midpoint: Lower primarily due to the addition of lower cost reserves and positive reserve revisions

Regular Dividend and Fourth Quarter Share Repurchases

The Board of Directors today declared a dividend of $0.975 per share on EOG's common stock. The dividend will be payable April 30, 2025, to stockholders of record as of April 16, 2025. The indicated annual rate is $3.90 per share, reflecting a 7% increase compared with 2024.

During the fourth quarter, the company repurchased 7.8 million shares for $981 million under its share repurchase authorization, at an average purchase price of $126 per share.

For full-year 2024, the company repurchased 25.8 million shares for $3.2 billion under its share repurchase authorization, at an average purchase price of $123 per share. EOG has $5.8 billion remaining on its current repurchase authorization.

2024 Reserves

Finding and Development Cost

Finding and development cost, excluding price revisions, decreased in 2024 to $6.68 per Boe, due to higher year-over-year well performance and cost reductions. Proved developed finding cost, excluding price revisions, was $8.71 per Boe (GAAP) and $8.04 per Boe (Non-GAAP) in 2024.

Reserve Replacement

Total proved reserves increased 6% in 2024. Extensions and discoveries added 580 MMBoe of proved reserves in 2024. Revisions other than price increased proved reserves by 215 MMBoe. Net proved reserve additions from all sources, excluding price revisions, replaced 201% of 2024 total production.

2025 Capital Program

Total expenditures for 2025 are expected to range from $6.0 to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs, and other property, plant and equipment, and excluding property acquisitions, asset retirement costs and non-cash exchanges and transactions. The capital program also excludes certain exploration costs incurred as operating expenses.

The disciplined capital program is anchored by steady year-over-year activity levels in the Delaware Basin, with a step up in activity in the Utica and Dorado plays. The plan delivers 3% oil volume growth and 6% total volume growth through the drilling and completion of 605 net wells across EOG's multi-basin portfolio of high return inventory.

The capital program also funds the completion of strategic infrastructure projects and international investment opportunities, including exploration projects in Trinidad and Bahrain.

EOG and Bapco Energies Entered Into a Strategic Participation Agreement in Bahrain

The companies will evaluate a natural gas exploration prospect with planned drilling activity in 2025. The transaction is subject to further government approvals.

Fourth Quarter and Full-Year 2024 Results Webcast

Friday, February 28, 2025, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG's website for one year.
http://investors.eogresources.com/Investors

About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad. To learn more visit www.eogresources.com.

Investor Contacts
Pearce Hammond 713-571-4684
Neel Panchal 713-571-4884
Shelby O'Connor 713-571-4560

Media Contact
Kimberly Ehmer 713-571-4676

Endnotes

This press release and any accompanying disclosures may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, operating costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "ambition," "initiative," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future financial or operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters or safety matters, pay and/or increase regular and/or special dividends or repurchase shares are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:

• the timing, magnitude and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities;
• the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
• the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximize reserve recoveries from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
• the success of EOG's cost-mitigation initiatives and actions in offsetting the impact of any inflationary or other pressures on EOG's operating costs and capital expenditures;
• the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas;
• security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business, and enhanced regulatory focus on the prevention of, and disclosure requirements relating to, cyber incidents;
• the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment;
• the availability, cost, terms and timing of issuance or execution of mineral licenses, concessions and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses, concessions and leases;
• the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax or other emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial and other derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
• the impact of climate change-related legislation, policies and initiatives; climate change-related political, social and shareholder activism; and physical, transition and reputational risks and other potential developments related to climate change;
• the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other environmental or safety-related initiatives and achieve its related targets, goals, ambitions and initiatives;
• EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to such properties;
• the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations;
• competition in the oil and gas exploration and production industry for the acquisition of licenses, concessions, leases and properties;
• the availability and cost of, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services;
• the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
• weather and natural disasters, including its impact on crude oil and natural gas demand, and related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities;
• the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
• EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
• the extent to which EOG is successful in its completion of planned asset dispositions;
• the extent and effect of any hedging activities engaged in by EOG;
• the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
• the economic and financial impact of epidemics, pandemics or other public health issues;
• geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflicts), including in the areas in which EOG operates;
• the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; and
• the other factors described under ITEM 1A, Risk Factors of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

Historical Non-GAAP Financial Measures:
Reconciliation schedules and definitions for the historical non-GAAP financial measures included or referenced herein as well as related discussion can be found on the EOG website at www.eogresources.com.

Cautionary Notice Regarding Forward-Looking Non-GAAP Financial Measures:
In addition, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow, cash flow provided by operating activities before changes in working capital and return on capital employed, and certain related estimates regarding future performance, commodity prices and operating and financial results. Because we provide these measures on a forward-looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future changes in working capital and future impairments. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures without unreasonable efforts. The unavailable information could have a significant impact on our ultimate results. However, management believes these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates.

Oil and Gas Reserves:
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release or any accompanying disclosures that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (and any updates to such disclosure set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K), available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.