EOG Resources Update - Nov 17

[dan_s]

EOG - ALERT: Drives Home Confidence in Its Ability to
Lower Its Cost of Supply Over Time Through Double
Premium and New Oil Exploration at Sell-Side Analyst
Meeting
KEYBANC

EOG hosted a meeting led by CEO Ezra Jacob for sell-side investors this
afternoon in Houston, TX. Key points from the meeting included EOG's plan
to drive the FCF potential of the Company upward with improving economics
driven by the harvesting of its double premium inventory and potential success
on its exploration program. EOG plans to stick to its 2022 capex budget that
it will announce early next year, and the Company will not raise this budget
in mid-2022 even if macro conditions are very favorable. EOG expects global
oil demand to reach 106-108 MMBopd by mid-decade, and it believes that
oil growth from a low-cost producer like itself will eventually be necessary.

Additionally, EOG is bullish on natural gas in the longer term, and it doesn't
plan to make material investments in renewables in the near term as it doesn't
believe returns on renewables are competitive with traditional oil & gas. EOG
maintains confidence in its exploration portfolio, and it thinks that success with
even one new oil exploration play in the U.S. can have a healthy impact on the
Company's bottom line. However, EOG admits that the size of new potential
play announcements will not be very large. Lastly, EOG signaled that investors
should expect more regular special dividends over time, but stock buybacks
seem less likely for the Company.

[Fraser921]

I like this part the best

>and it doesn't plan to make material investments in renewables in the near term as it doesn't
believe returns on renewables are competitive with traditional oil & gas.