EOG Resources, Inc.

Good day, everyone, and welcome to the EOG Resources Second Quarter 2024 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, Danielle, and good morning. And thank you for joining us for the EOG Resources second quarter 2024 earnings conference call. 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 this 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 the Investor Relations section of 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 Yacob, Chairman and CEO, Jeff Leitzel, Chief Operating Officer, Ann Jansen, Chief Financial Officer, Keith Trasko, Senior Vice President, Exploration and Production, and Lance Treveen, Senior Vice President, Marketing. Here's Ezra.

Thanks, Paris. Good morning, everyone, and thank you for joining us. We delivered exceptional second quarter results, reflecting outstanding execution by our employees throughout our multi-basin portfolio. We earned $1.8 billion of adjusted net income and generated $1.4 billion of free cash flow. Every metric, production volumes, capex, and per unit operating costs beat targets, driving another quarter of excellent financial performance. Our outstanding results year to date allow EOG to update our full year forecast for liquids production, cash operating costs, and free cash flow. As seen on slide five of our investor presentation, we increased our target for full year 2024 total liquids production by 11,800 barrels per day. Increased production coupled with a modest increase to forecasted operational efficiencies reduces per-unit cash operating costs by 15 cents, driving a $100 million increase to our forecasted free cash flow to $5.7 billion for the full year at the same strip prices of $80 oil and $2.50 natural gas. Illustrating the benefits of EOG's unique culture and decentralized structure, there wasn't one single operation or play that drove our second quarter outperformance. Our decentralized operating teams utilize technology and apply innovation across our portfolio of assets to improve unit costs, well costs, and well productivity. We made gains in both drilling and completions, and every asset contributed. Our foundational Delaware Basin and Eagleford plays, as well as our emerging Wyoming Powder River Basin, South Texas-Toronto, and Ohio Utica shale plays. The strength and depth of our multi-basin portfolio of premium assets is a tremendous advantage, and our focus on premium drilling means each of these assets competes against our premium price deck, measuring direct well investments against a $40 oil and $2.50 natural gas price for the life of the assets. That capital discipline provides EOG the flexibility to invest thoughtfully across all of our assets to support the pace of operations that is optimal for each individual asset to continue to improve. We can adjust to dynamic market conditions, such as the broader macro environment and basin-specific economic factors. As a result, we don't rely on any one basin, any one product, or any one marketing outlet to drive our company's success. Capital discipline is core to EOG's value proposition, evidenced by our ability to generate free cash flow for eight years in a row and is what drives our ability to deliver the consistent performance that our shareholders have come to expect and to create long-term shareholder value through the cycle. EOG's outstanding and consistent operational and financial performance positions us to deliver on our cash return commitments in 2024. Our cash return strategy continues to be grounded in our regular dividend, which has never been suspended or reduced in 26 years, and supplemented with special dividends and opportunistic share repurchases. Our disciplined and balanced investment in foundational plays, emerging assets, and strategic infrastructure, all supported with a pristine balance sheet, is laying the path to increase near and long-term free cash flow. The overall macro environment remains constructive. Global oil demand continues to increase after a seasonally soft first quarter and is in line with our forecasts. As anticipated, domestic oil supply growth has moderated since last year as a result of consolidation in the industry and reduced drilling and completions activity stemming from industry capital discipline. Activity levels, as reflected in rig count, indicate continued lower oil production growth through at least mid-2025. We expect lower 48 U.S. supply to exit 2024 at roughly the same level as year-end 2023, with only modest gains to total U.S. oil supply as offshore production increases. Regarding North American natural gas, during the second quarter, inventory levels moved closer to the five-year average, and we expect this trend to continue, due in part to supply curtailments and increasing year-over-year demand. We remain optimistic on the long-term outlook for gas demand beginning in 2025 as a result of additional LNG capacity coming online and continuing increases in demand from electricity generation. We will continue to prudently manage our Dorado activity as the current environment continues to highlight the importance of being a low-cost supplier of natural gas with access to multiple diverse markets. This quarter, we have further expanded our marketing outlets, capturing additional interstate pipeline capacity to deliver natural gas to demand centers in the southeastern U.S. In a moment, Lance will provide details on this exciting opportunity, as well as updates on our ongoing infrastructure projects. EOG's performance this quarter can be summed up as exceptional operational execution drives exceptional financial performance. resulting in more volumes and lower per unit operating costs for the same capex yielding higher free cash flow for the year. Ann is up next to provide an update on financials and cash return to shareholders. Here's Ann.