EOG Resources (EOG) Q1 Results - May 5
Posted: Thu May 05, 2022 6:17 pm
EOG Resources is the largest company in the Sweet 16. Size does matter in this business and EOG consistently beats their own guidance. My pre-release valuation was $168/share. It will be going up, primarily because EOG has a lot of unhedged gas and NGLs.
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EOG Resources Reports First Quarter 2022 Results; Adds Quantitative Guidance to Cash Return Framework and Declares $1.80 per Share Special Dividend
HOUSTON, May 5, 2022 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported first 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.
First Quarter 2022 Highlights
Announced guidance to return minimum 60% of free cash flow to shareholders each year
Declared special dividend of $1.80 per share and regular dividend of $0.75 per share
Earned adjusted net income of $2.3 billion, or $4.00 per share < Beat my forecast of $2,007 million net income.
Generated $2.4 billion of free cash flow
Oil, NGL and natural gas production above guidance midpoints
Capital expenditures near low end of guidance range
Total per-unit cash operating costs below guidance midpoint
From Ezra Yacob, Chief Executive Officer
"EOG is off to a great start in 2022. We extended our track record of reliable execution with strong first quarter results. Production volumes, capital expenditures and overall operating costs were each better than expected. Despite challenges from rising inflation and supply chain constraints since we announced our 2022 plan at the start of the year, we remain well positioned to deliver within our production and capital expenditure targets. Consistent with the EOG culture, our employees continue to find new innovations and efficiencies to meet our goals for the year.
"Along with strong operating execution, EOG continues to deliver on our long-term free cash flow priorities. In addition to the $0.75 per share regular dividend, we declared a $1.80 per share special dividend. We also initiated new cash return guidance to provide greater transparency to capital allocation, committing to return at least 60 percent of free cash flow to shareholders each year. Our financial strategy aims to create long-term shareholder value and our free cash flow priorities and cash return guidance remain consistent with this goal.
"Our 2022 game plan is on track, guided by our long-term strategy focused on returns. EOG's competitive advantage includes a diverse portfolio of plays across multiple basins, powered by our high-performing people and unique culture. Our pristine balance sheet and commitment to low-cost exploration continue to serve us well. We are well positioned to be among the lowest cost, highest return, lowest emissions producers, playing a significant role in the long-term future of energy."
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EOG Resources Reports First Quarter 2022 Results; Adds Quantitative Guidance to Cash Return Framework and Declares $1.80 per Share Special Dividend
HOUSTON, May 5, 2022 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported first 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.
First Quarter 2022 Highlights
Announced guidance to return minimum 60% of free cash flow to shareholders each year
Declared special dividend of $1.80 per share and regular dividend of $0.75 per share
Earned adjusted net income of $2.3 billion, or $4.00 per share < Beat my forecast of $2,007 million net income.
Generated $2.4 billion of free cash flow
Oil, NGL and natural gas production above guidance midpoints
Capital expenditures near low end of guidance range
Total per-unit cash operating costs below guidance midpoint
From Ezra Yacob, Chief Executive Officer
"EOG is off to a great start in 2022. We extended our track record of reliable execution with strong first quarter results. Production volumes, capital expenditures and overall operating costs were each better than expected. Despite challenges from rising inflation and supply chain constraints since we announced our 2022 plan at the start of the year, we remain well positioned to deliver within our production and capital expenditure targets. Consistent with the EOG culture, our employees continue to find new innovations and efficiencies to meet our goals for the year.
"Along with strong operating execution, EOG continues to deliver on our long-term free cash flow priorities. In addition to the $0.75 per share regular dividend, we declared a $1.80 per share special dividend. We also initiated new cash return guidance to provide greater transparency to capital allocation, committing to return at least 60 percent of free cash flow to shareholders each year. Our financial strategy aims to create long-term shareholder value and our free cash flow priorities and cash return guidance remain consistent with this goal.
"Our 2022 game plan is on track, guided by our long-term strategy focused on returns. EOG's competitive advantage includes a diverse portfolio of plays across multiple basins, powered by our high-performing people and unique culture. Our pristine balance sheet and commitment to low-cost exploration continue to serve us well. We are well positioned to be among the lowest cost, highest return, lowest emissions producers, playing a significant role in the long-term future of energy."