EOG Resources (EOG) Update - Sept 6

EOG Resources (EOG) Update - Sept 6

Postby dan_s » Tue Sep 06, 2022 10:37 am

Note from Piper Sandler this morning.

"EOG: We met with Ken Boedeker, EVP of E&P, and Neel Panchal, Director of IR, at EOG
Resources. EOG anticipates low single digit growth in 2022 will put them back to pre-COVID
production levels and anticipates delivering a similar level of growth in 2023. While several of
the parameters that EOG had been watching before returning to optimal growth levels (8-10%)
have been satisfied, the company still thinks OPEC+ spare capacity is still an uncertainty. The
company had discussed with 2Q22 results that it is starting to see the impact of cost inflation on
wells costs, but still expects to be within its initial capital guidance range. The company is starting
to see a reset on completion costs, and while the company came into FY22 well positioned with
tubular inventories it has been buying higher cost inventory to prepare for FY23. The company
hasn’t given any insight yet on FY23 capex and cost inflation expectations but does expect to
continue to offset with further efficiency gains. The company has the ability to allocate capital to
parts of the portfolio that aren’t experiencing the same level of cost inflation as the Delaware,
such as Dorado, as well as increase the amount of super-zipper completions (60-65% currently).
EOG remains focused on organically replacing its double premium inventory, having recently
announced the Mowry and Niobrara as additions to the portfolio and the northern PRB as a
potential resource addition in the future. While the company is currently running a rig in Noble
County, OH, and has recently been exploring in the northern Midland Basin, the company doesn’t
typically comment on exploration activity other than continues to look for opportunities to high
grade its double premium inventory position. The company remains optimistic about the gas
opportunity having unveiled Dorado as a double premium play back in 2021, and revisited the
potential of that asset back with 1Q22 results. The company also benefits from its international
gas marketing contracts with 140 mmcf/d currently getting international pricing which triples to
420/d when Corpus Christi stage 3 LNG export facility comes on which is expected by YE25.
(Lear)

MY TAKE:
> EOG's continued upbeat comments about Dorado (Webb County, TX) is good news for SilverBow Resources (SBOW)
> EOG should be reporting higher natural gas prices than what I have forecast because of their ability to sell gas at international prices.
Dan Steffens
Energy Prospectus Group
dan_s
 
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Re: EOG Resources (EOG) Update - Sept 6

Postby mrbill » Tue Sep 06, 2022 11:00 am

Hello Dan, any chance EOG would buy out SBOW? I live for "blue comments".
mrbill
 
Posts: 56
Joined: Fri May 07, 2010 3:58 pm

Re: EOG Resources (EOG) Update - Sept 6

Postby dan_s » Tue Sep 06, 2022 11:47 am

Anything is possible, but SBOW is way below EOG's radar screen.
Dan Steffens
Energy Prospectus Group
dan_s
 
Posts: 30137
Joined: Fri Apr 23, 2010 8:22 am


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