EOG Resources, Inc.

Good morning and thanks for joining us. This conference call includes forward-looking statements. Factors that could cause our actual results to differ materially from those in our forward-looking statements have been outlined in the earnings release and outlined in EOG's release. This conference call also contains certain non-GAAP financial measures. Definitions and reconciliation schedules for these non-GAAP measures can be found on EOG's website. Some of the reserve estimates on this conference call may include estimated potential reserves and estimated resource potential not necessarily calculated in accordance with the SEC's reserve reporting guidelines. Participating on the call this morning are Ezra Jacob, Chairman and CEO, Billy Helms, President and Chief Operating Officer, Ken Baedeker, EVP Exploration and Production, Jeff Leitzel, EVP Exploration and Production, Lance Turveen, Senior VP Marketing, and David Streit, VP Investor Relations. Here's Ezra.

Thanks, Tim. Good morning, everyone. EOG's growing portfolio of high return assets delivered outstanding results in 2022. We earned record return on capital employed of 34% and record adjusted net income of $8.1 billion, generated a record $7.6 billion of free cash flow, which funded record cash return to shareholders of $5.1 billion. We increased our regular dividend rate 10% and paid four special dividends, paying out 67% of free cash flow, beating our commitment to return a minimum of 60% of annual free cash flow to shareholders. And we strengthened what was already one of the best balance sheets in the industry, reducing net debt by nearly $800 million. We continue to deliver on our free cash flow priorities this year by declaring an additional special dividend of $1 per share yesterday. Outshining our financial results were achievements made by our operating teams working in a challenging inflationary environment. Credit goes to the innovative and entrepreneurial teams working collaboratively across our multi-basin portfolio. Together, we leveraged the flexibility provided by our decentralized structure to deliver exceptional operational performance. Production volumes, capex, and per unit operating costs were within guidance set at the start of the year. We offset persistent inflationary pressures that exceeded 20% during the year to limit well cost increases to just 7%. Our exploration teams uncovered a new premium play, the Ohio Utica Combo, and advanced two emerging plays, the South Texas Dorado and Southern Powder River Basin. We progressed several exploration prospects, including the Northern Powder River Basin. We expanded our LNG agreement. currently estimated to take effect in 2026 to 720,000 MMBTU per day, which will provide JKM linked pricing optionality for 420,000 MMBTU per day. Last year, the revenue uplift from our current 140,000 MMBTU per day LNG exposure was more than $600 million net to EOG. Preliminary results indicate that we reduced our GHG intensity and methane emissions percentage, achieving our 2025 targets, and we initiated and expanded deployment of our new continuous methane leak detection system called iSense. Led by the tremendous performance in our Delaware Basin and Eagleford Plays, our operating performance and financial results in 2022 are a reflection of our asset portfolio and the unique organizational structure in place to support it. Seven teams in North America and one international team operate 16 plays across nine basins. Our decentralized structure empowers each operating team to make decisions in real time at the asset level to maximize value. This differentiates the OG and enables us to consistently execute our strategy and produce outstanding results year after year. Our multi-basin portfolio provides numerous high return investment opportunities and we remain focused on disciplined investment across each of our assets. In addition to our premium well strategy, in which wells must generate a minimum of 30% direct after-tax rate of return at a flat $40 oil and $2.50 natural gas price for the life of the well, we invest at a pace that allows each asset to improve year over year, lowering the cost and expanding the margins generated by each asset. Discipline investment means more than just expanding margins at the top of the cycle. It means delivering value for the life of the resource and through the commodity price cycle. It's not only developing lower cost reserves, but also investing strategically to lower the operating cost of these resources, which positions EOG to generate full cycle returns competitive with the broad market. Looking ahead to 2023, EOG is in a better position than ever to deliver value for our shareholders and play a significant role in the long-term future of energy. Our ability to reinvest in the business, deliver disciplined growth, lower our emissions intensity, earn high returns, raise the regular dividend, and return significant cash to shareholders all while maintaining what we believe is the best balance sheet in the industry is due to our differentiated strategy executed consistently year after year. Now here's Tim to review our financial position.

Thanks, Ezra. When we established our premium strategy back in 2016, our goal was to reset the cost base of the business to earn economic returns at the bottom of the price cycle. The impact premium has had on the cost basis of the company and our financial performance has been dramatic. Since 2014, prior to establishing our premium strategy, our DD&A rate has declined 42%, and cash operating costs by 23%. Also in 2014, and under similar oil prices as last year, we earned 15% ROCE. With our lower cost structure, ROCE increased to a record 34% in 2022. We have also reduced net debt last year by $800 million to further strengthen the balance sheet. We view a strong balance sheet as a competitive advantage in a cyclical industry. Our current balance sheet is among the strongest in the energy industry and ranks near the top 20th percentile of the S&P 500 in terms of leverage and liquidity, measured as net debt to EBITDA and cash as a percentage of market cap. We have a $1.25 billion bond maturing in March and intend to pay that off with cash on hand. Our 2023 plan is positioned to generate another year of strong returns. We expect to grow oil volumes by 3% and total production on a BOE basis by 9%. At $80 WTI and $3.25 Henry Hub, we expect to generate about $5.5 billion of free cash flow for nearly 8% yield at the current stock price and produce an ROCE approaching 30%. This attractive financial outlook, along with our strong balance sheet, is what gave us the confidence to declare a $1 per share special dividend to start the year on top of our regular dividend of 82.5 cents per share. As a reminder, our commitment to return a minimum of 60% of free cash flow considers the full year, not a single quarter in isolation. The special dividend reflects the confidence in our plan and our constructive outlook on oil and gas prices. We will continue to evaluate the amount of cash return as we go through the year with an eye on, once again, meeting or exceeding our full year minimum cash return commitment of 60% of free cash flow. Here's Billy to discuss operations.