EOG Resources, Inc.

Good day, everyone, and welcome to EOG Resources First Quarter 2026 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 Hammett. Please go ahead, sir.

Thank you, Cindy, and good morning. And thank you for joining us for the EOG Resources first quarter 2026 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 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. EOG is off to an exceptional start in 2026. Our track record of consistent, high-quality execution continues to set us apart, delivering strong operational performance across our foundational assets while steadily advancing our emerging plays and exploration opportunities. The first quarter was a clear extension of that momentum. We exceeded expectations across key operating and financial metrics, production volumes, total per unit cash operating costs, and DD&A all outperformed guidance midpoints, driving robust financial results. We generated $1.8 billion in adjusted net income and $1.5 billion in free cash flow. Consistent with our commitment to discipline capital allocation and enhancing shareholder value, we returned nearly $950 million during the quarter through our regular dividend and opportunistic share repurchases. In today's macro environment, EOG is well positioned in realizing the benefits of decisions we made during a more challenging commodity price backdrop. Those actions were deliberate and are paying off. For example, we strengthened our portfolio through the acquisition of Encino, increasing our oil production by approximately 10%. And we complemented that with a strategic bolt-on acquisition in the Eagleford. We also enhanced our market exposure by securing LNG contracts, linked to JKM and Brent, positioning us to capture premium pricing in global markets. Additionally, we expanded our international footprint with high-quality concessions in the UAE and Bahrain, opportunities that would be difficult to replicate in the current price environment. Finally, we continued to deepen our vertical integration across critical services. This differentiated approach further improves efficiencies, lowers costs, and strengthens execution across our operations. As a testament to investing capital at a disciplined pace, between the first quarter of 2022, which was the last period of very robust oil prices, and the first quarter of 2026, where we are in a similar oil price environment, we have added nearly 100,000 barrels per day of oil, over 140,000 barrels per day of NGLs, and nearly 1.6 billion cubic feet per day of gas to EOG's net production. We did this while generating an average ROCE of 27%, returning approximately $20 billion to shareholders, and maintaining a pristine balance sheet. EOG continues to take a consistent approach to capital allocation in the current environment. Given robust oil prices and softness in natural gas, we have refined our plan for the balance of 2026. We are increasing oil and NGL production while maintaining our $6.5 billion capital budget by reallocating capital from gas to oil-weighted assets. This is a disciplined and pragmatic rebalancing that underscores the value and flexibility of our multi-basin portfolio. Our 2026 program includes production growth, domestic and international exploration, and a peer-leading regular dividend with a break-even oil price below $50 WTI, leaving ample room for additional cash return to shareholders under current strip prices. This revised plan strikes the right balance between near-term free cash flow generation and long-term value creation while preserving the strength of our balance sheet. Turning to the macro backdrop, The conflict involving Iran is the most significant development impacting our business and the broader energy markets. Disruptions to crude supply and flows through the Strait of Hormuz are estimated to remove approximately 900 million barrels from global markets through June 2026. Even in a scenario where the conflict is resolved relatively quickly, rebuilding global inventories back to five-year average levels will provide ongoing support for oil prices. Additionally, we expect the post-conflict outlook to include replenishing strategic petroleum reserves, limited remaining global spare capacity, and a higher geopolitical risk premium. Together, these dynamics point to a constructive oil price environment with geopolitical developments likely to continue driving periods of upside volatility. On natural gas, near-term pressure remains with lower 48 storage levels above the five-year average. However, our medium to long-term outlook remains positive. U.S. natural gas benefits from two durable structural tailwinds, rising LNG feed gas demand and increasing electricity consumption. We expect U.S. natural gas demand to grow at a 3% to 5% compound annual growth rate through the end of the decade and believe the previously forecasted potential for global LNG oversupply has been significantly reduced with the damage to LNG infrastructure abroad. Our investments in building a premium gas position to complement our oil business have us well positioned to supply these expanding markets. And while EOG's share price has increased following the onset of the conflict, the move in oil prices has been even more pronounced. As a result, we continue to believe EOG represents a compelling investment opportunity for several reasons. First, we have a high return domestic and international asset base with deep, long-duration inventory. Across our multi-basin portfolio, we estimate approximately 12 billion barrels of oil equivalent of resource potential generating greater than a 100% direct after-tax rate of return at $55 WTI and $3 Henry Hub. Our disciplined capital investment allows us to pace development appropriately and direct capital towards the highest return opportunities across the portfolio. Second, we bring differentiated exploration capabilities and approximately 25 years of unconventional experience. an advantage we have consistently leveraged to identify and capture opportunities ahead of the market. Third, we have a demonstrated track record as a low-cost, highly efficient operator supported by strong technical expertise and operational execution. In the past year alone, we reduced average well costs by 7% and operating costs by 4%. Fourth, We generate durable free cash flow and consistently deliver a peer-leading return on capital employed. Fifth, we remain committed to a sustainable and growing regular dividend, complemented by meaningful additional cash returns. Notably, we have never reduced nor suspended our regular dividend in 28 years. Finally, our pristine balance sheet provides resilience and strategic flexibility through commodity cycles. All of this is underpinned by EOG's distinctive culture, a decentralized, collaborative operating model that fosters innovation and drives performance at the asset level. In summary, we're off to a strong start in 2026 and are well-positioned to execute in the current macro environment. We remain focused on delivering sustainable free cash flow, maintaining operational excellence, and creating long-term value for our shareholders. Now I'll turn it over to Ann for details on our financial performance.