EOG Resources, Inc.

Mr. Tim Driggers, please go ahead, sir.

Thank you. 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 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 Treveen, Senior VP, Marketing, and David Streit, Treasurer and VP Investor Relations and Finance. Here's Ezra.

Thanks, Tim. Good morning, everyone. Our second quarter results reflect exceptional execution throughout our multi-basin portfolio. Production volumes, CapEx, cash operating costs, and DD&A all beat targets, driving another quarter of excellent financial performance. We earned $1.5 billion of adjusted net income and generated $1 billion of free cash flow. Year to date, we have generated free cash flow of $2.1 billion. That free cash flow and cash on the balance sheet funded year to date cash return to shareholders of $2.2 billion, including more than $600 million of share repurchases executed during the first half of the year. Taking into account our full year regular dividend, we have committed to return $3.1 billion to shareholders in 2023 or about 67% of our estimated 2023 cash flow, assuming a $75 oil price, well ahead of our target minimum return of 60%. EOG's peer-leading regular dividend is currently the majority of the $3.1 billion of cash return committed to shareholders this year. Our sustainable, growing regular dividend, which we have never cut nor suspended, remains the first priority to return cash. We also continue to leverage special dividends and buybacks to return additional cash depending on market conditions. Through the first two quarters of 2023, we've deployed more than $600 million to opportunistically repurchase shares during times of increased volatility. And while our cash return strategy remains consistent, what has evolved since putting the $5 billion repurchase authorization in place over a year and a half ago is the fundamental strength of our business. and we continue to get better through relentless execution of and commitment to EOG's value proposition. We invest in high return projects across our multi-basin portfolio, adding lower cost reserves, which reduces our break evens and expands our margins. We are now actively investing in five premium basins, more than any time in our history. Our foundational assets in the Delaware Basin and Eagleford continue to consistently deliver and we are pleased by the outstanding progress across our emerging Southern Powder River Basin, Ohio Utica Combo, and South Texas Dorado Place. Well productivity and cost performance are meeting or beating expectations across our portfolio as we invest and develop each asset at a pace that supports consistent execution and continued innovation. We continue to lower the cost basis of our company utilizing technology and innovation that improves well performance and lowers well costs to sustainably reduce our finding and development costs. Efficiencies and infrastructure investments are lowering current and future unit operating costs and contribute to our emissions reduction efforts. Finally, we have further strengthened our pristine balance sheet this year, while generating significant free cash flow and funding our transparent cash return strategy, which is designed to deliver consistent shareholder value through the cycle. And heading into the second half of 2023, our continued performance gains will be complemented by strong fundamentals. Oil demand has been resilient despite volatility in the first half of the year, and demand is showing signs of continued growth through the second half of the year. Strong inventory draws since the start of the year have pulled oil inventories below five-year averages, and refinery utilization remains high. Production growth in the U.S. is on pace to deliver similar rates as 2022, while exiting the year with significantly less activity as public companies continue to demonstrate discipline. And it appears OPEC Plus are following through on announced production cuts. The culmination of these actions should further reduce inventory levels and place upward pressure on pricing through year end. Regarding North American natural gas, While inventory levels remain above the five-year average, prices have firmed up recently, reflecting a reduction in natural gas drilling and an increase in demand from both power generation and LNG exports. These trends should support a more balanced supply and demand environment late this year and heading into 2024. We remain constructive on the longer-term gas story for the US, supported by recent LNG project approvals and the growing petrochemical complex on the Gulf Coast, and we are especially pleased with Dorado's place in the market as one of the lowest cost supplies of natural gas in the U.S. with an advantage location and emissions profile. EOG's value proposition is delivering results, and the strength of our business has never been better to deliver value for the shareholders through industry cycles and play a leading role in the long-term future of energy. Now here's Tim to review our financial position.