EOG Resources, Inc.

good day everyone and welcome to the eog resources first quarter 2023 earnings results conference call as a reminder this call is being recorded at this time for opening remarks and introductions i'd like to turn the call over to chief financial officer of eog resources mr tim driggers please go ahead sir thank you and good morning 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 released in EOG's SEC filings. 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 Bedecker, 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. Strong first quarter execution from every operating team across our multi-basin portfolio has positioned the company to deliver exceptional results in 2023. Production, capex, cash operating costs, and DD&A all beat targets which underpinned our excellent financial performance during the first quarter. We earned $1.6 billion of adjusted net income and generated $1.1 billion of free cash flow. Free cash flow helped fund year-to-date cash return to shareholders of $1.4 billion through a combination of regular and special dividends and share repurchases executed during the first quarter. Combined with our full-year regular dividend, we have committed to return $2.8 billion to shareholders in 2023. or about 50% of our estimated 2023 free cash flow, assuming an $80 oil price. We are well on our way to achieve our target minimum return of 60% of annual free cash flow to shareholders. Our first quarter results demonstrate the value of EOG's multi-basin portfolio. We have decades of low cost, high return inventory that spans oil, combo, and dry natural gas basins throughout the country. Our portfolio includes the Delaware Basin, which remains the largest area of activity in the company and is delivering exceptional returns. After more than a decade of high-return drilling, our Eagleford asset continues to deliver top-tier results while operating at a steady pace. Beyond these core foundational assets, we continue to invest in our emerging Powder River Basin, Ohio Utica Combo, and South Texas Dorado Plays, which contribute to EOG's financial performance today while also laying the groundwork for years of future high return investment. Our portfolio provides flexibility to invest with discipline and develop each asset at a pace that allows it to get better. It provides optionality to actively manage our investments to minimize impacts from inflation. Diversity of our investment portfolio also translates to diverse sales market options, enabling us to pursue the highest netbacks. Our shift to premium drilling several years ago has helped decouple EOG's performance from short-term swings in the market. The result is an ability to deliver consistent operational and financial performance that our shareholders have come to expect and that drives long-term value through the cycle. Recession risk and the near-term demand outlook for oil continues to drive volatility of prices month to month. However, our outlook remains positive. Inventory levels currently near the five-year average are reducing as we progress through the year. Global demand continues to increase and is forecast to reach record levels by year-end, and new supply has moderated from pre-pandemic levels of growth. Longer term, with the reduced investment in upstream projects the last several years, we remain constructive on future pricing. For North American gas, near-term prices reflect high inventory levels due to this year's warm winter and reduced LNG demand during repairs at Freeport. As such, we are currently evaluating options to delay some activity at Dorado. The medium and long-term outlook for natural gas, however, continues to strengthen. Currently, U.S. LNG demand is at record levels, with an additional 7 BCF a day capacity under construction or through FID with expected startup between 2024 to 2027 that should position the U.S. as a leader in the global LNG market. Our confidence in the outlook for our business is demonstrated by our capital allocation decisions in the first quarter. Discipline reinvestment and our high return inventory continues to lower our break evens and expand the free cash flow potential of EOG. We strengthened our balance sheet by retiring debt, paid out nearly 100% of free cash flow in regular and special dividends, and we utilized our repurchase authorization to buy back $310 million worth of stock late in the quarter during a significant market dislocation. I'm confident EOG has the assets, the technology, and the people to deliver both return on capital and return of capital for years to come. In a moment, Billy will discuss why we believe our foundational assets in the Delaware Basin and Eagleford will provide higher returns, margins, and free cash flow in the years ahead, and why we remain excited about the progress we are making in our emerging assets, Powder River Basin, Ohio Utica Combo, and South Texas Dorado. But first, here's Tim to review our financial position.