Fourth Quarter Highlights
- Earned adjusted net income of $1.8 billion, or $3.07 per share < Beat my forecast of $1.699 billion net income.
- Generated $1.5 billion of free cash flow
- Declared regular quarterly dividend of $0.91 per share and repurchased $300 million of shares
- Volumes and per-unit operating costs beat guidance midpoints
- Entered into a 10-year Brent-linked gas sales agreement starting in January 2027
Production volumes, total revenue and operating cash flow all beat my forecast.
I will be updating my forecast models for EOG, NOG, CTRA and APA on Friday.
EOG Resources (EOG) Q4 Results - Feb 22
EOG Resources (EOG) Q4 Results - Feb 22
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EOG Resources (EOG) Q4 Results - Feb 22
From Ezra Yacob, Chairman and Chief Executive Officer
What I've highlighted below is why I call EOG a "Core of the Core" stock for any portfolio. It generates 8% to 10% annual production growth and it pays outstanding dividends.
“EOG continues to deliver on its value proposition as demonstrated by our strong execution in 2023. Oil and
total volumes were on target, capital expenditures on budget, and we further lowered operating costs.
Each of the teams working across our multi-basin portfolio championed the EOG culture and played an
important role in delivering another successful year.
“The ability to manage investment and pace of activity at the appropriate level for each of our plays was
critical to our success in 2023. We lowered the overall cost basis of the company by balancing activity
between foundational assets and emerging plays. Progress across our portfolio, including continued
improvement in Delaware Basin productivity, successful delineation results in the Utica play, and
advancements across several exploration areas, provides opportunity for further improvement going
forward.
“EOG’s operating results drove our financial performance. EOG earned strong return on capital, while
generating $5.1 billion of free cash flow. Cash return to shareholders of $4.4 billion was well above our
prior minimum 60% commitment and continues to be anchored by our sustainable, growing regular
dividend. The financial strength of the company, including our cash flow generation capacity and our
industry-leading balance sheet, allowed us to increase our regular dividend 10% and go-forward cash return
commitment to a minimum 70% of annual free cash flow.
“EOG’s business has never been better, and our financial position has never been stronger. Our 2024 plan
demonstrates our consistent focus on improving the cost structure of our company. The depth of resource
across our multi-basin portfolio of premium assets provides long-term visibility for high returns and strong
free cash flow generation. Our confidence in EOG’s ability to compete across sectors, create value for our
shareholders, and be part of the long-term energy solution has never been higher.”
What I've highlighted below is why I call EOG a "Core of the Core" stock for any portfolio. It generates 8% to 10% annual production growth and it pays outstanding dividends.
“EOG continues to deliver on its value proposition as demonstrated by our strong execution in 2023. Oil and
total volumes were on target, capital expenditures on budget, and we further lowered operating costs.
Each of the teams working across our multi-basin portfolio championed the EOG culture and played an
important role in delivering another successful year.
“The ability to manage investment and pace of activity at the appropriate level for each of our plays was
critical to our success in 2023. We lowered the overall cost basis of the company by balancing activity
between foundational assets and emerging plays. Progress across our portfolio, including continued
improvement in Delaware Basin productivity, successful delineation results in the Utica play, and
advancements across several exploration areas, provides opportunity for further improvement going
forward.
“EOG’s operating results drove our financial performance. EOG earned strong return on capital, while
generating $5.1 billion of free cash flow. Cash return to shareholders of $4.4 billion was well above our
prior minimum 60% commitment and continues to be anchored by our sustainable, growing regular
dividend. The financial strength of the company, including our cash flow generation capacity and our
industry-leading balance sheet, allowed us to increase our regular dividend 10% and go-forward cash return
commitment to a minimum 70% of annual free cash flow.
“EOG’s business has never been better, and our financial position has never been stronger. Our 2024 plan
demonstrates our consistent focus on improving the cost structure of our company. The depth of resource
across our multi-basin portfolio of premium assets provides long-term visibility for high returns and strong
free cash flow generation. Our confidence in EOG’s ability to compete across sectors, create value for our
shareholders, and be part of the long-term energy solution has never been higher.”
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EOG Resources (EOG) Q4 Results - Feb 22
Unfortunately the market doesn't agree with you as the stock is down 5%. Energy stocks with good cash flow and dividends are not what people want to own - they would rather own NVDA and similar stocks that trade at PEs over 50 but also have huge potential growth.
Re: EOG Resources (EOG) Q4 Results - Feb 22
WTI is down $1.76 at the time of this post. That's why EOG is down.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group