EOG Resources (EOG) Q2 Results - August 4

[dan_s]

EOG's Q2 production exceeded my forecast. I will update my forecast/valuation model on Saturday morning. All 16 companies in the Sweet 16 have now reported Q2 results. Most of them beat my forecasts and only a couple were slightly disappointing.
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HOUSTON, Aug. 4, 2022 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported second quarter 2022 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.

Second Quarter 2022 Highlights

Declared special dividend of $1.50 per share

Earned adjusted net income of $1.6 billion, or $2.74 per share

Generated $1.3 billion of free cash flow

Oil, NGL and natural gas production above guidance midpoints

Capital expenditures below low end of guidance range

Total per-unit cash operating costs below guidance midpoint

Deployed in-house developed continuous leak detection system

From Ezra Yacob, Chief Executive Officer

"EOG delivered another quarter of outstanding operating execution. Our second quarter performance is attributable to the dedication and persistence of our employees and the power of our high-quality inventory across our multi-basin portfolio.

"We are adding reserves at lower finding costs and in turn lowering the overall cost base of the company. The Delaware Basin remains the largest area of activity in the company and is delivering exceptional returns. The Eagle Ford also continues to deliver top-tier results while operating at a steady pace. Our emerging South Texas Dorado dry gas play and Powder River Basin Mowry and Niobrara combo plays are contributing to EOG's success today while laying the groundwork for years of future high-return investment. And our robust exploration pipeline of potential new plays promises to further raise the bar on our performance.

"Our performance this year proves that we have emerged from the downturn better than ever. The company is positioned to deliver significant value to shareholders with our low cost structure and increased exposure to oil and natural gas prices with the recent reductions in our hedge position. This is supported by an industry-leading balance sheet and a regular dividend that allow EOG to deliver significant value through the cycle.

"We are well positioned to carry this momentum into 2023. We have offset a significant portion of inflation this year and are working on plans to identify further cost savings next year. We continue to advance new technology and innovative projects to further lower our environmental footprint, such as an EOG-developed continuous leak detection system that is being deployed at our Delaware Basin facilities. Throughout the year and as we begin to plan for 2023 we remain focused on disciplined capital allocation. Our long-term vision is to be among the lowest cost, highest return and lowest emissions producers, playing a significant role in the long-term future of energy."