EOG Resources, Inc.

Good day, everyone, and welcome to the EOG Resources Third 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 Hannon. Please go ahead, sir.

Thank you, Betsy. Good morning, and thank you for joining us for the EOG Resources Third Quarter 2025 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, any 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. It's been a significant quarter for EOG, one that marks both a pivotal strategic milestone and a disciplined continuation of our financial framework. As you know, we have successfully closed the acquisition of Encino in early August. This transaction strengthens our portfolio, cementing a third high-return foundational asset, diversing our production base, and accelerating our free cash flow generation potential, even during a more dynamic commodity environment. This acquisition was part of an exceptional quarter where EOG once again delivered outstanding operational performance that has translated directly into strong financial results. For the third quarter 2025, oil, natural gas, and NGL volumes exceeded the midpoints of our guidance, while capital expenditures, cash operating costs, and DD&A all came in below guidance midpoints, resulting in $1.4 billion of free cash flow, $1.5 billion in net income, and $1 billion of cash returned to shareholders through our regular dividend and share repurchases. Through the first three quarters of this year, we have committed to return nearly 90% of our estimated 2025 free cash flow, including $2.2 billion in regular dividends and $1.8 billion of share repurchases. In today's dynamic energy equity environment, share repurchases are especially compelling, and we expect to remain active in our buyback program. further enhancing returns to shareholders through the cycles. EOG's value proposition is guided by our strategic priorities of capital discipline, operational excellence, sustainability, and culture. Our continued outperformance this quarter and throughout the year demonstrates consistent execution of our value proposition by teams across EOG's premier multi-basin portfolio. while our cash return performance highlights our unwavering commitment to discipline value creation for our shareholders through industry cycles. I want to highlight four key differentiators that set us apart and position EOG to deliver value to our shareholders in a dynamic market. First, our diverse high return portfolio with a deep inventory of opportunities. We invest at a pace that generates high returns while optimizing both short and long-term free cash flow generation. Our foundational assets in the Delaware Basin, Eagleford, and Utica continue to underpin our activity, driving strong full-cycle returns, while our emerging plays, Dorado and the Powder River Basin, are making tremendous progress on improving well performance and lowering costs. And our consistent focus on exploration both domestically and internationally gives us confidence in our ability to continue improving one of industry's highest quality portfolios. We are especially excited about the potential for international unconventional development through our entry into the UAE and Bahrain. Our differentiated exposure to both North American liquids and natural gas, as well as international unconventionals, positions EOG to benefit from medium and long-term growth in all three areas, creating multiple avenues for future value creation. Second, our focus on lowering break-even costs. Each year, EOG utilizes data and technology to drive continuous operational improvements, capturing incremental efficiency gains, and identifying opportunities to reduce our cost structure. In addition, at times, we make strategic infrastructure investments that further lower costs. In the past year, we've brought online the Janus gas processing plant in the Delaware Basin and the Verde natural gas pipeline connecting Dorado to the Agua Dulce hub. These high-return strategic infrastructure projects helped further reduce our break-even costs by enhancing reliability, lowering operating expenses, and improving price realizations. Operational execution and investment focused on improving our broader asset base not only strengthens our resilience in a lower-price environment, but also improves margins and returns for shareholders through industry cycles. Third, our commitment to generating sustainable free cash flow. Our low-cost structure drives robust, sustainable free cash flow generation, supporting EOG's regular dividend as well as additional cash return to shareholders. EOG has generated annual free cash flow every year since 2016 and has never cut nor suspended its dividend in 27 years, a remarkable track record that is a testament to our resilient business model and represents a key differentiator versus peers. And fourth, EOG's financial strengths. Our pristine balance sheet is anchored by a leverage target of less than one times total debt to EBITDA at bottom cycle prices of $45 WTI, $2.50 Henry Hub. With nearly $5.5 billion in total liquidity, we have tremendous capacity and flexibility to invest through the cycle, ensuring EOG emerges from any downturn an even stronger company than when it entered. On commodity fundamentals, the impact of spare capacity returning to the oil market is slowly becoming evident. We expect inventories to continue to build as it will take a few quarters for growing demand to absorb spare capacity barrels reentering the market. Beyond near-term oversupply, evolving geopolitical risk, the rapid decline in spare capacity, reduced investment in new supply, and further demand growth will remain key drivers of the oil price. Looking past the next few quarters, we see constructive support for oil prices. And turning to natural gas, our outlook remains positive. U.S. natural gas enjoys two structural bullish drivers, record levels of LNG feed gas demand and growing electricity demand, which should provide price support. Our investments to build a premier gas business has EOG poised to deliver supply into these growing markets. Looking to 2026, It's too early to provide specifics on activity and capital spending. Our capital allocation remains driven by returns-focused investments, our view on the outlook for supply-demand fundamentals, and a reinvestment pace that supports continuous improvement across our multi-basin portfolio. This disciplined approach allows for optimal development of our assets while balancing both short and long-term free cash flows to drive higher cash returns to shareholders. 2025 has truly been a transformative year for EOG, with the successful acquisition of Encino, as well as our strategic entries into the UAE and Bahrain. And moving into 2026, EOG is better positioned than ever to execute on our value proposition and create shareholder value. Now here's Anne with a detailed review of our financial performance.