EOG Resources, Inc.

Good day, everyone, and welcome to EOG Resources' fourth quarter and full year 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' fourth 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, 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 Yacob, 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. 2025 was a remarkable year for EOG. Overall, our year was characterized by disciplined capital allocation, strong execution across our operations, and robust free cash flow generation. We didn't just meet the targets set forth in our operational and capital plan. We exceeded them while expanding our business both domestically and internationally, laying a foundation for the future. We surpassed our original oil and total volume targets while delivering inline capital expenditures. We continue driving down well costs through sustainable operating efficiency gains, and our differentiated marketing strategy delivered peer-leading U.S. price realizations, which combined with lower cash operating costs, helped strengthen margins. Beyond extending our track record for excellent operational execution, 2025 was transformational. We completed the strategic Encino acquisition, entered exciting international exploration opportunities in the UAE and Bahrain, and brought online the J&S gas processing plant in the Delaware Basin. We also continue leading on sustainability, publishing new emissions targets after achieving our prior targets ahead of schedule. Each of these developments fundamentally improves our business and better positions EOG going forward as being among the highest return and lowest cost producers with strong environmental performance. Operational excellence in 2025 drove outstanding financial results and top tier cash returns to shareholders. We generated $4.7 billion in free cash flow and returned 100% to shareholders through our regular dividend, which increased by 8%, and $2.5 billion in share repurchases. Let me put our 2025 financial performance in a broader perspective. EOG has generated annual free cash flow every year since 2016. We've never cut nor suspended our dividend in 28 years. Further, over the past three years, We've generated $15 billion in free cash flow and returned $14 billion to shareholders, while generating an average 24% return on capital employed. We've done this all while maintaining a pristine balance sheet. This isn't luck. It's the result of consistent execution of our resilient business model and represents a fundamental differentiator versus peers. And we expect more of the same in 2026. modest oil production growth as we maintain capital discipline, further integration and optimization of the Utica acquisition, and continued natural gas growth into emerging North American demand. Looking ahead, we have a disciplined plan for 2026. Our strategy prioritizes activity in the Delaware Basin, the Utica, and the Eagleford, while increasing activity in Dorado alongside continued international investment. our Utica asset provides a compelling opportunity for value creation as we continue to identify additional upside from the Encino acquisition, as well as advancing our technical understanding of the play. And in the Delaware Basin, after adjusting our development strategy in 2025, we expect consistent well performance year over year. At guidance midpoints, our 2026 plan is expected to generate approximately $4.5 billion in free cash flow using strip pricing, delivering growth, exploration, a competitive regular dividend, and excess cash returns. Our breakeven price to cover the 2026 capital program and regular dividend is $50 WTI. Overall, the 2026 capital program balances both short and long-term free cash flow generation while supporting future growth and maintaining our pristine balance sheet. Our 2026 plan is contemplated in our updated three-year scenario. The scenario reflects modest oil production growth aligned with current macro expectations. It maintains our current cost structure despite our persistent track record of driving costs lower through efficiency gains. Finally, the scenario is underpinned by our deep inventory of high return assets across our multi-basin portfolio. Using WTI price ranges of $55 to $70 per barrel from 2026 through 2028, the updated three-year scenario delivers 5% cash flow and greater than 6% free cash flow compound annual growth rates, generating cumulative free cash flow of $10 billion to $18 billion and earning robust double-digit returns on capital employed. This updated three-year scenario demonstrates how EOG's relentless focus on returns, our diverse multi-basin portfolio, and industry-leading exploration capabilities provide clear visibility to sustain high returns and durable free cash flow generation for years to come. Overall, the three-year scenario delivers approximately 20% higher free cash flow in 2026 through 2028 than the actual results for the prior three-year period, assuming the same price deck. On commodity fundamentals, we expect total crude and product inventories to continue building over the next few quarters. However, increasing global demand, geopolitical factors, and stockpiling of petroleum reserves are providing price support. Beyond near-term dynamics, we remain constructive on medium to long-term oil prices, being driven by steady demand growth and the need for additional supply. Importantly, global spare capacity is declining. which should provide an oil price floor while geopolitical events will continue to drive upside price volatility. On natural gas, our outlook remains positive. U.S. natural gas enjoys two structural bullish drivers, record LNG feed gas demand and growing electricity demand. We expect U.S. gas demand to grow at a 3% to 5% compound annual growth rate through the end of this decade. Our investments in building a premier gas business positions EOG to deliver supply into these expanding markets. We believe our premium gas business is an underappreciated asset, providing exposure to growing demand and with access to premium markets from geographically diverse sources. EOG's value proposition is clear. We're guided by our strategic priorities, capital discipline, operational excellence, sustainability, and culture. Our 2025 results demonstrate consistent execution across our premier multi-basin portfolio, while our cash return performance reflects our unwavering commitment to disciplined value creation through the cycles. 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.