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EOG RESOURCES INC 8-K Report, Financial Results (Feb 22, 2024)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed February 22, 2024
Period End
February 22, 2024
Security
EOG
In the record · 2016–202610-K1110-Q328-K137

EOG filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 137 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’16Oct ’16
  2. Material agreement8-K · Apr ’20Apr ’20
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 22, 2024. Cited figures are marked; the original filing is the authoritative source.

EOG Resources' February 22, 2024 8-K furnishes (under Items 2.02 and 7.01, not deemed filed) its Q4 2023 earnings press release and its 1Q and full-year 2024 forecast and benchmark commodity pricing information.

For full-year 2023, EOG reported net income of $7,594 milliona ($13.00 diluted EPS), down from $7,759 million ($13.22) in 2022, while Adjusted Net Income (non-GAAP) was $6,825 million ($11.69 per diluted share) versus $8,080 million ($13.76) in 2022. The decline was driven mainly by lower realized commodity prices: composite crude oil prices averaged $79.17/Bbl in 2023 versus $97.21 in 2022, and natural gas fell to $2.79/Mcf from $6.93. Total revenues dropped to $24,186 million from $25,702 million, although production rose to a record-level 984.8 MBoed (359.4 MMBoe) from 908.2 MBoed, up about 8%, and the company's capital program was disciplined.

Free cash flow (non-GAAP) was $5,108 millionb in 2023, compared with $7,645 million in 2022, as cash flow from operations before working capital changes fell to $11,149 million from $12,252 million and total capital expenditures rose to $6,041 million from $4,607 million. Balance sheet strength improved: EOG repaid $1,250 million of long-term debt in 1Q 2023, ended the year with $5,278 million in cash, and reported a net cash position (net debt of -$1,479 million) with a net debt-to-total capitalization ratio of -5.6%. Shareholder returns were significant, with $3,386 million in dividends paid and $1,038 million of share repurchases in 2023.

Proved reserves rose to 4,498 MMBoe at year-end 2023 from 4,238 MMBoe, with an all-in reserve replacement of 172%c and drilling-only replacement of 168%. The filing itself contains primarily financial and operational data; the 1Q and full-year 2024 guidance figures and the benchmark price assumptions are incorporated by reference from the attached press release and are not reproduced in the text provided. Investors should therefore review Exhibit 99.1 for the 2024 production, capital, and cost outlook before drawing conclusions about the year ahead.

02—Key points

Key Highlights

  1. FY2023 GAAP net income of $7.59 billion ($13.00 diluted EPS), down about 2% from $7.76 billion ($13.22) in FY2022, reflecting lower commodity prices.
  2. FY2023 Adjusted Net Income (non-GAAP) of $6.83 billion ($11.69 per diluted share), versus $8.08 billion ($13.76) in FY2022.
  3. Record-level production of 984.8 MBoed (359.4 MMBoe) in FY2023, up about 8% from 908.2 MBoed, with U.S. crude oil volumes rising to 485.2 MBbld in Q4 2023.
  4. Free cash flow (non-GAAP) of $5.11 billion in FY2023, down from $7.65 billion in FY2022, as capital expenditures increased to $6.04 billion from $4.61 billion.
  5. Strong balance sheet: $5.28 billion of cash at year-end 2023 and a net cash position (net debt-to-total capitalization of -5.6%), after repaying $1.25 billion of long-term debt in 1Q 2023.
  6. Shareholder returns of $3.39 billion in dividends and $1.04 billion in share repurchases in FY2023.
  7. Proved reserves increased to 4,498 MMBoe at year-end 2023 from 4,238 MMBoe, with all-in reserve replacement of 172% and drilling-only replacement of 168%.

03—Questions

Frequently Asked Questions

  1. How did EOG's 2023 earnings compare with 2022?

    GAAP net income was $7.59 billion ($13.00 per diluted share) in 2023, compared with $7.76 billion ($13.22) in 2022. Adjusted net income (non-GAAP) fell to $6.83 billion ($11.69 per share) from $8.08 billion ($13.76). The decline mainly reflects substantially lower realized natural gas and crude oil prices, partly offset by higher production volumes.

  2. Did production grow in 2023?

    Yes. Total crude oil equivalent production averaged 984.8 MBoed in 2023, up from 908.2 MBoed in 2022, an increase of roughly 8%. Q4 2023 production reached 1,026.2 MBoed, the highest quarterly level in the period shown, and U.S. natural gas and liquids volumes both rose through the year.

  3. How much free cash flow did EOG generate, and how was it used?

    EOG generated $5.11 billion of non-GAAP free cash flow in 2023, down from $7.65 billion in 2022, as capital expenditures rose to $6.04 billion. The company used its cash to pay $3.39 billion in dividends and buy back $1.04 billion of stock, and it repaid $1.25 billion of debt, while still ending the year with $5.28 billion of cash.

  4. What does this filing reveal about 2024 guidance?

    This 8-K does not include the 2024 forecast figures in its text. It states that the first-quarter and full-year 2024 forecast and benchmark commodity pricing information is incorporated by reference from Exhibit 99.1, the February 22, 2024 press release, so investors need to consult that exhibit for production, capital, and cost guidance.

  5. Is EOG's balance sheet in good shape?

    Yes. At December 31, 2023, EOG reported $5.28 billion of cash against $3.80 billion of total debt, a net cash position of $1.48 billion. The net debt-to-total capitalization ratio was -5.6%, and debt-to-total capitalization on a GAAP basis was 11.9%, down from 17.0% at year-end 2022.

04—Continue

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