EOG Resources (EOG) Q4 2024 earnings summary

Executive summary

• Achieved 25% ROCE and $6.6B adjusted net income in 2024, with 98% of free cash flow ($5.3B) returned to shareholders via dividends and buybacks.

• Delivered oil and total production volumes above targets, reduced well costs by 6%, and maintained GHG/methane emissions below 2025 targets.

• Increased regular dividend by 7% to $3.90/share and repurchased $3.2B in shares, reducing share count by 5% since 2023.

• Portfolio includes core Delaware Basin and Eagle Ford, with emerging plays in South Texas Dorado, Powder River Basin, Utica, and international expansion in Trinidad and Bahrain.

• Maintained capital discipline, operational excellence, sustainability, and a strong culture as core pillars.

Financial highlights

• 2024 CapEx was $6.2B, driving 3% oil and 8% total production growth; adjusted EPS $11.62, adjusted CFPS $20.37.

• Proved reserves rose 6% to 4.7B BOE, with a 201% reserve replacement rate (excluding price revisions); finding and development costs fell 7% to $6.68/BOE.

• Peer-leading US price realizations: $3.15/bbl oil, $1.15/mcf gas, $2.70/bbl NGL above peer averages.

• Ended 2024 with $7.1B cash and a net debt-to-total capitalization ratio of -8.7%.

• Returned a record $5.3B to shareholders, representing 98% of free cash flow.

Outlook and guidance

• 2025 CapEx planned at $6.0–$6.4B, targeting 3% oil and 6% total production growth, and $4.7B free cash flow at $70 WTI/$4.25 HH.

• Cash flow break-even to fund CapEx and dividend in the low $50s per barrel.

• Cash operating costs for 2025 expected at $9.85–$11.15 per Boe; effective tax rate guidance: 20–25%.

• Strategic investments in emerging plays and infrastructure expected to benefit 2026 free cash flow.

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