EOG Resources(US:EOG)2025-02-27 21:27Financial Performance - Total revenue for Q4 2024 was $5.585 billion, a decrease of 6.5% from Q3 2024 and a full-year revenue of $23.698 billion, down from $24.186 billion in FY 2023[3]. - Net income for Q4 2024 was $1.251 billion, resulting in a net income per share of $2.23, compared to $1.673 billion and $2.95 per share in Q3 2024[3]. - EOG's operating income for 2023 was $9.603 billion, with total operating expenses amounting to $14.583 billion[65]. - The company reported a net interest expense for FY 2024 of $173 million to $177 million, compared to $175 million in 2023[57]. - For FY 2024, the Reported Net Income (GAAP) was $8,218 million, with an Adjusted Net Income (Non-GAAP) of $6,612 million, translating to $11.62 per diluted share[86]. - The company reported total operating revenues of $5,585 million in Q4 2024, a decrease of 12.1% from Q4 2023's $6,357 million[111]. - The company’s operating income for 2024 was $8,082 million, down 15.8% from $9,603 million in 2023[114]. Cash Flow and Shareholder Returns - Generated $1.3 billion of free cash flow in Q4 2024, contributing to a total of $5.4 billion for the full year, with $5.3 billion returned to shareholders[4]. - The company repurchased $981 million of shares in Q4 2024, totaling $3.2 billion for the full year, reducing share count by approximately 5% since 2023[7][35]. - Declared a regular quarterly dividend of $0.975 per share, reflecting a 7% increase compared to 2024[34]. - Cash flow from operating activities totaled $11,340 million for 2023, with $3,255 million in Q1, $2,277 million in Q2, $2,704 million in Q3, and $3,104 million in Q4[70]. - Free cash flow for 2023 was $5,108 million, with an increase to $5,367 million projected for 2024, indicating a growth of about 5%[98]. Production and Reserves - EOG replaced 201% of 2024 production at a finding and development cost of $7.03 per Boe (GAAP) and $6.68 per Boe (Non-GAAP)[4]. - Total proved reserves increased by 6% in 2024, with extensions and discoveries adding 580 MMBoe and revisions other than price increasing reserves by 215 MMBoe, resulting in a 201% replacement ratio for total production[45]. - Proved reserves of crude oil and condensate increased from 1,756 MMBbl at the beginning of 2024 to 1,870 MMBbl at the end of the year, representing a net increase of 114 MMBbl[101]. - The company reported a total of 9,122 Bcf of natural gas reserves at the end of 2024, up from 8,930 Bcf at the beginning of the year, marking a net increase of 192 Bcf[101]. Capital Expenditures and Investment Plans - Announced a $6.2 billion capital plan for 2025 aimed at growing oil production by 3% and total production by 6%[4]. - The 2025 capital program is expected to range from $6.0 to $6.4 billion, focusing on exploration, development drilling, and strategic infrastructure projects[49]. - Total exploration and development expenditures for 2024 are projected to be $5,634 million, with significant allocations for development costs at $4,944 million[101]. Cost Management - Cash operating costs per Boe were $10.15 in Q4 2024, consistent with Q3 2024, and lower than the previous year[3][36]. - The company aims to mitigate costs and control capital expenditures amidst inflationary pressures, with a focus on operational efficiency[63]. - Total operating cost per Boe (including total exploration costs) was $26.86 in Q4 2024, compared to $25.20 in Q4 2023, indicating an increase of 6.6%[113]. Debt and Financial Position - Current and long-term debt increased to $4.752 billion in Q4 2024, with a debt-to-total capitalization ratio of 13.9%[3]. - The net debt-to-total capitalization ratio (Non-GAAP) was -8.7% as of December 31, 2024, indicating a strong financial position with more cash than debt[100]. - The debt-to-total capitalization (GAAP) ratio was 13.9% as of December 31, 2024, reflecting a stable leverage position[100]. Market and Pricing - The benchmark price for WTI crude oil is projected at $75.72 per barrel, down from $77.61 per barrel in 2024[57]. - Natural gas liquids realizations as a percentage of WTI are expected to range from 30.0% to 40.0%, with a midpoint of 35.0%[57]. - The composite average operating revenues per barrel of oil equivalent decreased to $60.97 in 2024 from $67.30 in 2023, a decline of approximately 19.4%[115]. Strategic Initiatives - EOG has entered into a strategic participation agreement with Bapco Energies for natural gas exploration in Bahrain, with planned drilling activity in 2025[52]. - The company is actively addressing cybersecurity threats and regulatory compliance to safeguard its operations and data integrity[63].