10-QPeriod: Q2 FY2024

EOG RESOURCES INC Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 1, 2024For Securities:EOG

Summary

EOG Resources Inc. (EOG) reported its second-quarter 2024 financial results, demonstrating continued operational strength and a focus on shareholder returns. The company generated total operating revenues of $6.025 billion, an increase of 8% compared to the prior year, driven by higher crude oil and condensate prices and volumes, alongside a notable increase in Natural Gas Liquids (NGLs) revenue. Net income for the quarter stood at $1.69 billion, or $2.95 per diluted share, reflecting improved operational performance and effective cost management. EOG maintained a strong balance sheet with $5.4 billion in cash and cash equivalents and a low debt-to-capitalization ratio of 11%. The company continued its commitment to returning capital to shareholders, declaring a quarterly cash dividend of $0.91 per share and actively engaging in share repurchases under its $5 billion authorization, having repurchased approximately $1.44 billion in the first six months of the year. The company also reaffirmed its 2024 capital expenditure guidance, focusing on high-return projects primarily in the United States, with total expenditures expected to range between $6.0 billion and $6.4 billion.

Financial Highlights

45 data points
Beta

Revenue

$6.03B

Net Income

$1.69B

28.0% Net Margin

EPS (Diluted)

$2.95

Total Assets

$45.22B

Cash & Equivalents

$5.43B

Free Cash Flow

$2.89B

Financial Statements
Beta
Revenue$6.03B
Operating Expenses$3.90B
Operating Income$2.13B
Net Income$1.69B
EPS (Basic)$2.97
EPS (Diluted)$2.95
Shares Outstanding (Basic)569.00M
Shares Outstanding (Diluted)572.00M

Key Highlights

  • 1Total operating revenues for Q2 2024 increased by 8% year-over-year to $6.025 billion, driven by strong performance in crude oil, condensate, and NGLs.
  • 2Net income for the quarter was $1.69 billion, resulting in diluted earnings per share of $2.95, indicating robust profitability.
  • 3EOG maintained a healthy financial position with $5.4 billion in cash and cash equivalents and a low debt-to-capitalization ratio of 11% as of June 30, 2024.
  • 4The company returned significant capital to shareholders, declaring a $0.91 per share quarterly dividend and repurchasing approximately $1.44 billion of its common stock in the first six months of 2024.
  • 5Full-year 2024 capital expenditures are projected to be between $6.0 billion and $6.4 billion, with a strategic focus on high-return U.S. assets.
  • 6Production volumes saw an increase, with crude oil and condensate volumes up 3% and NGL volumes up 13% in Q2 2024 compared to the prior year.
  • 7The company continues to prioritize efficiency and cost control, with a slight increase in per-unit operating costs (to $20.81/Boe for Q2 2024) primarily due to increased production activities and DD&A expenses.

Frequently Asked Questions

EOG reported a year-over-year increase in operating revenues of 8% to $6.025 billion for the second quarter of 2024. Net income also grew to $1.69 billion, or $2.95 per diluted share, compared to $1.553 billion, or $2.66 per diluted share, in the second quarter of 2023, reflecting higher commodity prices and increased production volumes.

EOG is committed to returning capital to shareholders. They declared a quarterly cash dividend of $0.91 per share and continued their share repurchase program, buying back approximately $690 million worth of stock in the second quarter of 2024, with $2.6 billion remaining under their authorization. This aligns with their strategy to return a minimum of 70% of net cash from operations (less capital expenditures) to stockholders.

EOG anticipates total capital expenditures for 2024 to be between $6.0 billion and $6.4 billion. The company plans to concentrate a substantial portion of these expenditures on its high-return assets primarily located in the United States, specifically in the Delaware Basin, Eagle Ford, Rocky Mountain area, and Utica regions.

EOG maintains a strong financial position with a debt-to-total capitalization ratio of 11% as of June 30, 2024, and held $5.4 billion in cash and cash equivalents. They also have significant borrowing capacity available under their revolving credit facility, indicating robust liquidity and financial flexibility.