EOG Resources, Inc. (EOG) Bernstein Strategic Decisions Conference (Transcript)

Company Overview - EOG Resources, Inc. has a market capitalization of $70 billion and is recognized as one of the original unconventional players in the oil and gas industry, with a focus on organic exploration and growth [6][7]. - The company emphasizes delivering long-term shareholder value through capital discipline, operational excellence, sustainability, and a strong corporate culture [7][8][9]. Strategic Approach - EOG maintains a data-driven approach to mergers and acquisitions, focusing on returns and ensuring that any acquisition is additive to existing inventory [12][14]. - The company has approximately 10 billion barrels of equivalent resources across the U.S. and Trinidad, with a target after-tax rate of return of 30% at $40 oil and $2.50 natural gas prices [16][17]. Market Outlook - EOG anticipates a mid-cycle oil price range of $60 to $80, with historical averages around $65 over the past five years [22][23]. - The company notes that U.S. oil supply growth is becoming more challenging due to steep declines in tight resources and a lack of exploration among competitors [25][27]. Capital Allocation and Returns - EOG has generated positive free cash flow every year since 2015 and focuses on optimizing returns through capital allocation across its multi-basin portfolio [29][30]. - The company aims to return a minimum of 70% of its free cash flow to shareholders, primarily through regular dividends, which have been paid for 26 years [78][79]. Operational Efficiency - EOG has achieved well cost reductions through operational efficiencies, with a focus on high-quality equipment and stakeholder alignment [88][89]. - The company has implemented innovative drilling techniques and in-house control of drilling motors to enhance operational efficiency [90][91]. Environmental and Sustainability Initiatives - EOG is committed to reducing its Scope 1 emissions and has initiated a pilot project for carbon capture and storage, aligning its strategy with core competencies [51][52]. - The company has achieved zero routine flaring ahead of the World Bank initiative and is actively involved in measuring methane emissions [57][58]. Future Growth Opportunities - EOG sees potential growth in natural gas demand driven by LNG projects, data centers, and the retirement of coal-fired power plants [45][46]. - The company is well-positioned to capitalize on increasing demand through its multi-basin approach and strategic infrastructure projects [48][101].