10-KPeriod: FY2023

EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2023

Filed February 22, 2024For Securities:EOG

Summary

EOG Resources Inc. (EOG) filed its 2023 annual report on February 22, 2024. The company demonstrated resilience in a fluctuating commodity price environment, with strong operational execution across its U.S. and international portfolio. EOG maintained a disciplined capital expenditure approach, focusing on high-return projects and operational efficiency to mitigate inflationary pressures. The company continued its commitment to returning capital to shareholders through dividends and share repurchases, reinforcing its financial strength and strategic focus on maximizing shareholder value while maintaining a strong balance sheet.

Financial Statements
Beta
Revenue$24.19B
Operating Expenses$14.58B
Operating Income$9.60B
Interest Expense$148.00M
Net Income$7.59B
EPS (Basic)$13.07
EPS (Diluted)$13.00
Shares Outstanding (Basic)581.00M
Shares Outstanding (Diluted)584.00M

Key Highlights

  • 1EOG Resources reported significant activity in its key U.S. plays, including the Delaware Basin (Wolfcamp, Bone Spring, Leonard) and South Texas (Eagle Ford, Dorado), with substantial well completions in 2023.
  • 2The company's focus remains on maximizing shareholder returns through a disciplined capital allocation strategy, prioritizing high-return projects and cost control.
  • 3EOG's financial health is demonstrated by a strong balance sheet, with a debt-to-total capitalization ratio of 12% at the end of 2023, and substantial liquidity.
  • 4The company is committed to returning capital to shareholders, announcing an increase in its cash return commitment to a minimum of 70% of annual net cash provided by operating activities (less capital expenditures) starting in 2024.
  • 5Average realized commodity prices in 2023 showed a decrease compared to 2022, reflecting market volatility, with crude oil and condensate prices down 19% and natural gas prices down 63%.
  • 6EOG is actively managing price risk through financial commodity derivative contracts, aiming to mitigate exposure to commodity price fluctuations.
  • 7The company continues to invest in efficiency improvements and technological advancements to enhance well performance and reduce operating costs.

Frequently Asked Questions

EOG Resources reported a net income of $7,594 million for the year ended December 31, 2023.

In 2023, EOG's crude oil and condensate production increased by 3% to 476 MBbld, NGLs production increased by 13% to 224 MBbld, and natural gas deliveries increased by 14% to 1,711 MMcfd compared to 2022.

EOG focuses on maximizing returns on invested capital by controlling operating costs and capital expenditures. The company has a strong commitment to returning capital to shareholders, increasing its commitment to return a minimum of 70% of annual net cash provided by operating activities (less capital expenditures) to stockholders through dividends and share repurchases starting in 2024.

EOG is focused on increasing drilling, completion, and operating efficiencies, improving well performance, and has entered into agreements with service providers to secure costs and availability of services. While inflationary pressures were experienced, the company has largely been able to offset these impacts through efficiency gains and its multi-basin portfolio.