EOG Resources, Inc.

Good day, everyone, and welcome to EOG Resources' Second Quarter 2025 Earnings Results Conference call. As a reminder, this call is being recorded. For opening remarks and introductions, I will turn the call over to EOG Resources Vice President of Investor Relations, Mr. Pierce Hammond. Please go ahead, sir.

Good morning, and thank you for joining us for the EOG Resources' Second Quarter 2025 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 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 Jacob, Chairman and Chief Executive Officer, 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 and thank you for joining us. EOG delivered another quarter of outstanding results reflecting the focused execution of our employees across our multi-basin portfolio. In the second quarter, oil, natural gas, and NGL volumes came in above the midpoint of our guidance. At the same time, we drove our capital expenditures, cash operating costs, and DD&A below guidance points demonstrating the efficiency and operational excellence that is a hallmark of EOG. Our teams continue to find ways to optimize operations, improve well performance, and safely deliver volumes while maintaining capital discipline. Strong operational performance once again translated directly into impressive financial results. We generated nearly $1 billion of free cash flow during the quarter and between our regular dividend and $600 million of opportunistic share repurchases, we returned more than $1.1 billion to our shareholders. Consistent with our long-standing cash return commitment, we have committed to return at least $3.5 billion in cash during 2025, inclusive of our regular dividend and nearly $1.4 billion of -to-date share repurchases reflecting our confidence in the growing value of our business. Our confidence in the future of the company is also reflected in the 5% increase in our regular dividend which we announced in connection with the Encino acquisition in May. This marks another step forward in our remarkable dividend growth track record. Over the past decade, we have increased our regular dividend at a 19% compound annual growth rate, far outpacing the peer group average. More importantly, we have never cut nor suspended the dividend in 27 years. This sustained record of dividend growth highlights both the durability of our business and our unwavering focus on delivering shareholder value. Last week, we closed the accretive Encino acquisition, marking a major milestone for EOG. With a total core acreage position of 1.1 million net acres and associated resource potential net to the company of 2-plus billion barrels of oil equivalent, the Utica has become a foundational EOG asset alongside the Delaware Basin and Eagleford. In aggregate, EOG has net resource potential totaling over 12 billion barrels of oil equivalent across our multi-basin portfolio. This top-tier resource base generates a greater than 55% average direct after-tax rate of return at bottom cycle prices and over 200% after-tax rate of return at mid-cycle prices, providing our investors one of the deepest and highest quality inventory positions. We are focused on the safe and rapid integration of the Encino assets into our portfolio. We remain highly confident in the value creation opportunity before us in the Utica and believe that through effective integration and the application of EOG's operating model and proprietary technology, the Utica will be a major contributor to both growth and returns. We look forward to sharing more as we capitalize on the advantages this transaction brings to shareholders. On the international front, in the second quarter, we were awarded an onshore concession to explore and appraise an approximately 900,000 acre unconventional oil exploration prospect in the UAE. We are very excited about this new opportunity that will allow us to leverage our technical expertise and extensive data set from drilling thousands of unconventional wells across a wide variety of plays. The UAE and our BAPCO joint venture in Bahrain form an exciting long-term business opportunity for EOG in the Gulf states. Our results through the first half of 2025 serve as a powerful affirmation of EOG's enduring value proposition. We're committed to being among the highest return, lowest cost producers, recognized for leading environmental performance and a steadfast role in meeting the world's long-term energy needs. Four pillars underpin our differentiated strategy, capital discipline, operational excellence, sustainability, and culture. As we look at new opportunities in our portfolio from the Encino acquisition to the expansion in the Gulf states, we believe operational excellence will be a key differentiator to enhance returns as we utilize our in-house technical expertise, proprietary information technology, and self-sourced materials to drive superior well performance and reduce costs. Turning now to supply and demand fundamentals, while first quarter oil demand was stronger than forecast and second quarter oil demand also benefited from delays in the implementation of tariffs, growth and demand for the second half of 2025 is expected to moderate before beginning to increase throughout 2026. On the supply side, we expect spare capacity returning to the market to allow inventory levels to build from historically low levels. This reduction in spare capacity coupled with current demand forecasts paves the way for pricing to strengthen on the back of a more fundamentally driven market. On natural gas, 2025 is an inflection year driven by an uptick in US LNG feed gas demand. We expect a 4 to 6 percent compound annual growth rate for US natural gas demand through 2030 driven primarily by LNG and power demand. Our investment in Gerardo to develop a standalone gas asset that complements our oil assets has EOG primed to deliver supply into these growing markets. EOG is better positioned than ever before to create value for our shareholders. Our portfolio expansion, including Encino, the UAE, Arrain, and additional exploration opportunities is adding significant new resource potential for our shareholders while we simultaneously continue to improve and expand our existing resource through applying technology to reduce costs, improve well performance, and unlock additional well locations. And at the same time, delivering robust cash return to our shareholders and maintaining a pristine balance sheet allowing for continued investment in high return projects generating strong current and future free cash flow. Now here's Anne with a detailed review of our financial performance.