EOG Resources, Inc.

Good day, everyone, and welcome to EOG Resources' fourth quarter and full year 2023 earnings results conference call. As a reminder, this call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to the Investor Relations Vice President of EOG Resources, Mr. Pierce Hammond. Please go ahead, sir.

Thank you and good morning. And thanks for joining us for the EOG Resources fourth quarter 2023 earnings conference call. I'm Pierce Hammond, Vice President, Investor Relations. An updated investor presentation has been posted to the Investor Relations section of our website, and we will reference certain slides during today's discussion. A replay of today's call will be available on our website beginning later today. As a reminder, 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 may also contain certain historical and forward-looking non-GAAP financial measures. Definitions and reconciliation schedules for these non-GAAP measures and related discussion can be found on EOG's website. In addition, some of the reserve estimates on this conference call may include estimated potential reserves as well as 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, Jeff Leitzel, Chief Operating Officer, Ann Jansen, Chief Financial Officer, and Lance Treveen, Senior Vice President, Marketing. Pierce Ezra. Thanks, Pierce.

Good morning, everyone, and thank you for joining us. Our outstanding performance last year demonstrates that EOG's value proposition delivers results. We beat our volume targets and reached a production milestone, exiting the year producing more than 1 million barrels of oil equivalent per day. We earned adjusted net income of $6.8 billion for a return on capital employed of 31%. We generated $5.1 billion of free cash flow and returned more than 85% of that free cash flow to shareholders last year, handily outpacing our cash return commitment. Our regular dividend remains the anchor of our cash return strategy. We increased it 10% last year to an annualized rate of $3.64 per share, which represents among the highest regular dividend yields of our peers and is competitive with the broader market. 2023 was a year of record production and outstanding financial performance, and it's not a one-off year. The real power of EOG's value proposition is consistency. Over the last three years, since the start of 2021, EOG has generated about $20 billion of adjusted net income, over $18 billion of free cash flow, and returned over $12 billion to shareholders. EOG delivers reliable operating results that translate to consistent financial performance year after year through the cycle. And that's EOG's value proposition, sustainable value creation through industry cycles. Our strategy to deliver on that value proposition starts first with capital discipline, a returns-focused capital allocation strategy guided by our premium hurdle rate. which requires investments to earn at least 30% direct after-tax return at $40 oil and $2.50 natural gas. Capital discipline allows EOG to consistently achieve its free cash flow priorities and deliver on shareholder return commitments, positioning EOG as a compelling investment competitive with the S&P 500. The second principle of our strategy to deliver on our value proposition is operational execution. Our multi-basin organic growth portfolio is a competitive advantage. We have superior in-house technical expertise that supports leading-edge well performance while minimizing well costs. Our proprietary information technology enables real-time, data-driven decision-making. We actively avoid falling into manufacturing mode, where one well design is stamped out across a basin. We adhere to the discipline of continuous improvement such that the latest learnings get embedded into the next well and transferred to the next basin. Integrated into our operations is our focus on sustainability, the third leg of our strategy to deliver EOG's value proposition. Last year was a banner year with respect to our environmental performance. In addition to maintaining GHG and methane emissions intensity rates below our 2025 targets, we also achieved zero routine flaring throughout our operations. We achieved a wellhead gas capture rate of 99.9%, and in the Delaware Basin, our most active operational area, we increased water reuse to 90%. The final leg and foundation of our value proposition is EOG's culture. Our employees embrace and embody EOG's unique culture and are the number one reason for EOG's success. Collaborative, multidisciplinary teams drive innovation and sustain the cycle of continuous improvement and our technology leadership. Our company is decentralized and non-bureaucratic to allow decision-making in the field at the asset level, which truly differentiates EOG relative to our peers and is a lasting competitive advantage. This culture is what drove our successful results in 2023 and provides the foundation to continue to deliver in the future. Anne is up next to discuss our cash return strategy and preview the details of our 2024 capital plan. Here's Anne.