10-QPeriod: Q3 FY2024

EOG RESOURCES INC Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 7, 2024For Securities:EOG

Summary

EOG Resources, Inc. (EOG) reported third quarter and year-to-date results for the period ending September 29, 2024. The company experienced a decrease in total operating revenues for the quarter to $5.97 billion from $6.21 billion in the prior year, primarily driven by lower crude oil and condensate prices, although production volumes increased. For the nine-month period, revenues saw a slight increase to $18.11 billion from $17.83 billion. Net income for the third quarter was $1.67 billion, or $2.95 per diluted share, down from $2.03 billion, or $3.48 per diluted share, in the same period last year. Year-to-date net income stood at $5.15 billion, or $8.99 per diluted share, compared to $5.61 billion, or $9.60 per diluted share, for the first nine months of 2023. The company maintained a strong financial position with $6.1 billion in cash and cash equivalents and significant availability under its revolving credit facility. EOG also continued its commitment to returning capital to shareholders through dividends and share repurchases, including an increase in the quarterly dividend and an expansion of its share repurchase authorization.

Financial Highlights

47 data points
Beta

Revenue

$5.96B

Net Income

$1.67B

28.0% Net Margin

EPS (Diluted)

$2.95

Total Assets

$46.15B

Cash & Equivalents

$6.12B

Free Cash Flow

$3.59B

Financial Statements
Beta
Revenue$5.96B
Operating Expenses$3.88B
Operating Income$2.09B
Net Income$1.67B
EPS (Basic)$2.97
EPS (Diluted)$2.95
Shares Outstanding (Basic)564.00M
Shares Outstanding (Diluted)568.00M

Key Highlights

  • 1Total operating revenues for Q3 2024 decreased by 4% year-over-year to $5.97 billion, primarily due to lower commodity prices, despite an increase in production volumes.
  • 2Net income for Q3 2024 was $1.67 billion ($2.95/diluted share), a decrease from $2.03 billion ($3.48/diluted share) in Q3 2023.
  • 3Year-to-date net income for the first nine months of 2024 was $5.15 billion ($8.99/diluted share), down from $5.61 billion ($9.60/diluted share) in the comparable 2023 period.
  • 4The company reported strong cash generation, with $6.12 billion in cash and cash equivalents at the end of the quarter and $1.9 billion available under its credit facility.
  • 5EOG returned significant capital to shareholders via $1.58 billion in dividends and $2.20 billion in share repurchases year-to-date.
  • 6The company increased its quarterly cash dividend to $0.975 per share, effective for the dividend payable in January 2025.
  • 7EOG substantially increased its share repurchase authorization from $5 billion to $10 billion, effective November 7, 2024.

Frequently Asked Questions

The decrease in net income for the third quarter of 2024 was primarily driven by lower average commodity prices for crude oil and condensate, which impacted wellhead revenues. While production volumes increased, the lower realized prices more than offset the volume gains, leading to reduced operating income before taxes.

EOG reported a strong liquidity position with $6.1 billion in cash and cash equivalents as of September 30, 2024. Additionally, the company has a $1.9 billion senior unsecured revolving credit facility with no outstanding borrowings. This robust financial position provides significant flexibility for operations and capital allocation.

EOG is committed to returning capital to shareholders through a combination of quarterly dividends and share repurchases. The company announced an increase in its quarterly dividend to $0.975 per share and significantly expanded its share repurchase authorization to $10 billion. This aligns with their commitment to return a minimum of 70% of annual net cash provided by operating activities (less capital expenditures) to stockholders starting in fiscal year 2024.

EOG continues to focus its exploration and development expenditures primarily in its key U.S. plays, including the Delaware Basin, Eagle Ford, Utica, and Rocky Mountain regions. The company plans for total 2024 capital expenditures to range between $6.1 billion and $6.3 billion. Production for the full year 2024 is expected to increase modestly compared to 2023.