EOG Resources has been actively expanding and investing in its operations in the Delaware Basin, part of the larger Permian Basin.
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EOG Texas Air Permits
In 2024, EOG plans to allocate a significant portion of its capital expenditure, about $4.2 billion, to drilling and exploration activities across its assets, with a substantial focus on the Delaware Basin. This investment is part of a broader $6.0 to $6.4 billion total expenditure plan for the year, which also includes environmental and infrastructure projects.
New Gas Plant
The Janus Gas Processing Plant, being constructed by EOG Resources in the Delaware Basin, is designed as a 300 million cubic feet per day facility. Along with this, the project includes gathering pipelines up to 24 inches in diameter. This new infrastructure is expected to provide significant operational savings and enhanced reliability for EOG’s activities in this key oil play. The plant is anticipated to go into service in the first half of 2025 and aims to offer cost savings and revenue improvements of approximately $0.50 per Mcf
Delaware Basin Summary
The Delaware Basin is highlighted as a key area of activity for EOG Resources. Here are some details from the transcript regarding their operations and projects in the Delaware Basin:
- Janus Gas Processing Plant: EOG has a strategic infrastructure project in the Delaware Basin, the Janus gas processing plant, which is expected to come online in the first half of 2025. This plant is part of their effort to expand their margin and improve operational efficiencies, providing a $0.50 per Mcf netback uplift over the life of the asset.
- Operational Execution: EOG mentions their successful drilling of longer laterals in the Delaware Basin, which has led to increased efficiencies and lower per foot well costs. In 2023, they drilled four three-mile laterals and plan to drill more than 50 in 2024.
- Efficiency Gains: Their operations in the Delaware Basin have shown consistent execution and success, contributing significantly to their overall operational performance and helping to drive down costs.
- Contribution to Portfolio: The Delaware Basin is a foundational play for EOG, where they continue to leverage their experience and operational prowess to enhance well economics and performance.
Overall, the Delaware Basin plays a critical role in EOG Resources’ multi-basin strategy, serving as a site for both innovative operational practices and significant infrastructure investments that support the company’s long-term profitability and growth.
