EOG Resources, Inc.

Good day, everyone, and welcome to EOG Resources First Quarter 2025 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.

Good morning, and thank you for joining us for the EOG Resources First Quarter 2025 Earnings Conference Call. I am 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 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 an outline 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, and Keith Trasko, Senior Vice President, Exploration and Production.

Here's Ezra. Thanks, Pierce. Good morning, everyone, and thank you for joining us. EOG is off to an exceptional start in 2025. In the first quarter, we delivered outstanding results across our diverse multi-basin portfolio, positioning the company to achieve an even greater success this year. Our production and total per unit cash operating costs and DD&A all exceeded targets, driving strong financial performance. We earned $1.6 billion in adjusted net income and generated $1.3 billion in free cash flow, underscoring our commitment to value creation. True to our track record of rewarding shareholders, $1.3 billion was returned to shareholders through our regular dividend and opportunistic share repurchases. EOG's operational excellence continues to translate into robust returns and a steady stream of cash flow generation, setting the company up for further success in 2025 and beyond. Quarter after quarter, year after year, EOG has consistently delivered exceptional operational performance across our core assets, while also advancing new opportunities in our emerging plays. Our disciplined approach to capital allocation, strategically investing across our portfolio at the right pace, has generated free cash flow every year since 2016 and established a strong foundation for a sustainable, growing regular dividend and a balance sheet that stands out not just within our industry but across the broader market. EOG is well positioned for the cycles with a strong financial position, low cost structure, and the ability to flex activity across multiple high return investments. Our success is anchored by one of the industry's most diverse, high-return, and deep multi-basin portfolios, with over 10 billion barrels of oil equivalent of high-quality resources. The depth and quality of our resource portfolio positions EOG for long-term, sustainable growth and value creation. Capital discipline at EOG means more than just focusing on high-return assets. It's about being agile and responsive to the broader macro environment. In light of our strong first quarter performance and potential near-term impacts on global demand due to ongoing discussions regarding tariffs, we are proactively optimizing our 2025 capital investment while maintaining first quarter oil production levels throughout the year. At the midpoint of guidance, this $200 million reduction in capital investment is expected to enhance 2025 free cash flow while still delivering approximately 2% year-over-year oil growth. The first quarter saw strong global oil demand, moderating U.S. supply growth, and inventory levels below the five-year range, supportive of the medium and long-term outlook for both oil and gas. We remain constructive on both oil and gas, playing a significant role in the long-term need for reliable, low-cost energy. The near term, however, is reflecting speculation on oil demand impacts associated with tariff announcements, which has softened prices. We expect to see a return to market fundamentals and pricing firming up as more transparency is applied to the tariffs and negotiation turns to implementation. Regarding natural gas, our 2025 plan remains consistent with investments delivering approximately 12% year-over-year growth at the midpoint of guidance. A cold start to winter and increases in LNG feedstock coupled with a subdued supply response, has left current inventory levels near the five-year average in a year that we believe is an inflection point for North American demand. Led by LNG and increased power demand, we see the potential for 4% to 6% compound annual growth rate in natural gas demand between now and the end of the decade and are well positioned to deliver natural gas into multiple markets and demand centers across our portfolio. EOG's multi-basin strength, in-house operational excellence, proprietary technology, and self-sourced materials uniquely position us as a low-cost, highly efficient operator with exposure to diverse products and pricing. Backed by our rigorous investment standards and rock-solid balance sheet, we are continuing to make strategic investments that drive both near-term performance and long-term value for shareholders. Our opportunities continue to grow both domestically and internationally. We're actively pursuing an exciting organic exploration program, driving expansion in our inventory across existing assets by reducing well costs, improving productivity, and strategically adding bolt-on acquisitions. For example, after active development for over a decade, our Eagleford asset continues to deliver high returns as we apply best practices developed both in and out of Basin. Recently, we have added a strategic bolt-on acquisition in the Eagleford, further strengthening the quality and quantity of our Eagleford inventory. This contiguous acreage immediately benefits from long laterals and existing EOG infrastructure, offering both operational efficiency and high returns. Internationally, yesterday we announced an oil discovery in our Trinidad asset, capping off a successful 2024 drilling campaign and continuing over 30 years' success in the region. This is a fantastic development, and Jeff will provide additional details shortly. In addition, our international exploration team is preparing for our entry into Bahrain, where we plan to start drilling an onshore, unconventional, tight-gas-sand prospect in the second half of 2025. To wrap up, I want to emphasize EOG's core value proposition. we're committed to sustainable value creation throughout the industry cycle, driven by a disciplined focus on high-return investments, optimizing both short- and long-term free cash flow, along with a pristine balance sheet and strong regular dividend that sets us apart from our peers. Our operational excellence combined with our dedication to sustainability is fueled by EOG's unique culture, a decentralized, collaborative approach that drives innovation at the asset level. By leveraging technology to make real-time decisions, we continuously improve efficiency, lower costs, and boost margins, ensuring long-term visibility for strong returns and free cash flow generation, no matter where we are in the cycle. Now here's Ann with details on our financial performance.