EOG Resources (EOG) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong operational and financial results, with adjusted net income of $1.6 billion and free cash flow of $1.5 billion, driven by volumes and per-unit cash operating costs outperforming expectations.

• Regular dividend increased by 7% to $0.975 per share ($3.90 annualized), and share repurchase authorization was expanded by $5 billion, with $6.8 billion remaining under the program.

• Shareholder returns included $1.3 billion in Q3 and $2.25 billion year-to-date in share repurchases, reflecting confidence in future free cash flow generation.

• Maintained a focus on sustainable value creation, leveraging technology and innovation across multiple basins to drive efficiency and returns.

• Operating revenues for Q3 2024 were $5.97 billion, down 4% year-over-year, with net income down 18% to $1.67 billion.

Financial highlights

• Adjusted net income for Q3 2024 was $1.6 billion ($2.89 per share), with free cash flow of $1.5 billion and capital expenditures of $1.5 billion.

• GAAP net income for Q3 2024 was $1.67 billion ($2.95 per share), and total revenue was $5.97 billion.

• Paid $0.975 per share dividend and repurchased $758 million in shares during Q3; year-to-date free cash flow of $4.1 billion funded $3.8 billion in shareholder returns.

• On track to return at least 70% of annual net cash from operations less capex to shareholders, with a commitment to exceed 85% of 2024E annual free cash flow returned.

• Cash and equivalents at September 30, 2024, were $6.12 billion.

Outlook and guidance

• Full-year 2024 guidance updated for higher volumes and lower per-unit cash operating costs, with crude oil and condensate production midpoint at 493.0 MBod.

• Capital expenditures for 2024 expected to be $6.1–$6.3 billion, focused on U.S. drilling in high-return plays.

• Targeting 3% oil growth and 8% BOE growth for 2024.

• Scenario for 2024–2026 projects $12–$22 billion cumulative free cash flow and double-digit average ROCE at $65–$85 WTI.

• 2025 activity expected to remain relatively flat, with minor shifts between basins and a 50% increase in Utica activity.