EOG Resources(EOG) - 2024 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2024 was $6.123 billion, a decrease of 3.7% from Q4 2023[4] - Net income for Q1 2024 was $1.789 billion, down 10% from $1.988 billion in Q4 2023[4] - Adjusted net income was $1.626 billion, or $2.82 per share, compared to $1.783 billion, or $3.07 per share in Q4 2023[4][6] - Operating income for 2023 was $9,603 million, with the 4th quarter contributing $2,504 million[45] - Net income for 2023 was $7,594 million, translating to a diluted net income per share of $13.00[45] - Reported Net Income (GAAP) for Q1 2024 was $2,300 million, resulting in an Adjusted Net Income (Non-GAAP) of $2,094 million, or $2.82 per share[60] - For FY 2023, the Reported Net Income (GAAP) was $9,689 million, with an Adjusted Net Income (Non-GAAP) of $8,706 million, translating to $11.69 per share[66] Cash Flow and Expenditures - Generated $1.2 billion in free cash flow during Q1 2024[6] - Declared a quarterly dividend of $0.91 per share, with $525 million paid in dividends and $750 million used for share repurchases in Q1 2024[11][12] - Total capital expenditures for 2023 were $6.041 billion, with $1.703 billion projected for Q1 2024[73] - Free cash flow for 2023 was $5.108 billion, with a projected free cash flow of $1.225 billion for Q1 2024[73] Production and Volumes - Wellhead volumes for crude oil and condensate reached 487.4 MBod, exceeding guidance midpoint and up less than 1% from Q4 2023[7][23] - Crude oil and condensate volumes reached 487.4 MBod, exceeding guidance by 1.1 MBod and up from 485.2 MBod in Q4 2023[32] - Total natural gas volumes increased to 1,858 MMcfd, surpassing guidance by 23 MMcfd and up from 1,831 MMcfd in Q4 2023[32] - Total crude oil equivalent volumes were 1,028.8 MBoed, exceeding guidance by 8.7 MBoed and slightly up from 1,026.2 MBoed in Q4 2023[32] Costs and Expenses - Cash operating costs per Boe decreased to $10.37, down from $10.52 in Q4 2023[4][30] - Operating unit costs for lease and well were $4.23 per Boe, slightly above guidance by $0.03 and consistent with Q1 2023[32] - General and administrative costs decreased to $1.73 per Boe, below guidance by $0.12 and down from $2.03 in Q4 2023[32] - Total operating expenses for 2023 amounted to $14,583 million, with the 4th quarter expenses at $3,853 million[45] Debt and Capitalization - EOG's debt-to-total capitalization improved to 11.7%, down from 11.9% in Q4 2023[4] - Long-term debt decreased from $3,787 million in March 2023 to $3,757 million in March 2024[49] - Total liabilities decreased from $15,578 million in March 2023 to $15,363 million in March 2024[49] - Total Capitalization (GAAP) rose to $32,427 million, up from $29,267 million a year ago, representing an increase of 10.4%[75] Future Projections - Q2 2024 crude oil and condensate volumes in the United States are projected to be between 485.0 MBod and 490.0 MBod, with a midpoint of 487.5 MBod, compared to 475.2 MBod in 2023[33] - Total natural gas volumes are expected to range from 1,820 MMcfd to 1,900 MMcfd, with a midpoint of 1,860 MMcfd, up from 1,711 MMcfd in 2023[33] - Capital expenditures for FY 2024 are forecasted to be between $6,000 million and $6,400 million, with a midpoint of $6,200 million, compared to $6,041 million in 2023[33] Market Conditions and Risks - The benchmark price for oil (WTI) was $76.97 per Bbl, down from $78.33 in Q4 2023[32] - EOG's forward-looking statements include expectations regarding future financial performance, production levels, and capital expenditures, but these are subject to various risks and uncertainties[38] - The company faces risks related to cybersecurity threats and disruptions to operations, which could impact overall performance[39] - The company is actively monitoring geopolitical factors and economic conditions that could impact its operations and financial results[43] Non-GAAP Measures - EOG's non-GAAP measures, including Adjusted Net Income and Free Cash Flow, are utilized for better performance comparison within the industry[52] - The company emphasizes the importance of non-GAAP measures for understanding financial performance trends and comparisons across periods[55]