EOG Resources, Inc. has announced its financial results for the second quarter of 2024, highlighting another period of outstanding operational performance and robust financial health. Key achievements this quarter include generating $1.4 billion in free cash flow, surpassing guidance midpoints for volumes and per-unit operating costs, and enhancing shareholder value through substantial dividends and share repurchases. This report underscores EOG’s commitment to operational excellence and shareholder returns.
EOG Resources, Inc. Second Quarter 2024 Financial Results Summary
Key Financial Metrics
- Total Revenue: $6.03 billion (down from $6.12 billion in 1Q 2024)
- Net Income: $1.69 billion (down from $1.79 billion in 1Q 2024)
- Net Income Per Share: $2.95 (down from $3.10 in 1Q 2024)
- Net Cash Provided by Operating Activities: $2.89 billion (slightly down from $2.90 billion in 1Q 2024)
- Total Expenditures: $1.68 billion (down from $1.95 billion in 1Q 2024)
- Current and Long-Term Debt: $3.78 billion (slightly down from $3.79 billion in 1Q 2024)
- Cash and Cash Equivalents: $5.43 billion (up from $5.29 billion in 1Q 2024)
- Debt-to-Total Capitalization: 11.5% (down from 11.7% in 1Q 2024)
- Cash Operating Costs: $10.11 per Boe (down from $10.37 per Boe in 1Q 2024)
Non-GAAP Measures
- Adjusted Net Income: $1.81 billion (up from $1.63 billion in 1Q 2024)
- Adjusted Net Income Per Share: $3.16 (up from $2.82 in 1Q 2024)
- CFO before Changes in Working Capital: $3.04 billion (up from $2.93 billion in 1Q 2024)
- Capital Expenditures: $1.67 billion (down from $1.70 billion in 1Q 2024)
- Free Cash Flow: $1.37 billion (up from $1.23 billion in 1Q 2024)
- Net Debt: ($1.65 billion) (up from ($1.50 billion) in 1Q 2024)
- Net Debt-to-Total Capitalization: (6.0%) (up from (5.5%) in 1Q 2024)
Second Quarter Highlights
- Adjusted net income of $1.8 billion, or $3.16 per share
- Generated $1.4 billion of free cash flow
- Declared a quarterly dividend of $0.91 per share
- Repurchased $690 million of shares (5.5 million shares) in 2Q 2024
- Updated full-year guidance to reflect higher volumes and lower per-unit cash operating costs
Volumes and Capital Expenditures
- Crude Oil and Condensate: 490.7 MBod (up from 487.4 MBod in 1Q 2024)
- Natural Gas Liquids: 244.8 MBbld (up from 231.7 MBbld in 1Q 2024)
- Natural Gas: 1,872 MMcfd (up from 1,858 MMcfd in 1Q 2024)
- Total Crude Oil Equivalent: 1,047.5 MBoed (up from 1,028.8 MBoed in 1Q 2024)
- Capital Expenditures: $1.67 billion (down from $1.70 billion in 1Q 2024)
CEO Statement Highlights
- Strong operational performance with better-than-expected oil volumes and lower per-unit operating expenses
- Commitment to returning 70% of annual free cash flow to shareholders
- Significant progress in share repurchases and dividends
- Confidence in multi-basin portfolio and continuous improvement
Regular Dividend and Share Repurchases
- Quarterly dividend of $0.91 per share, payable on October 31, 2024
- $2.6 billion remaining on share buyback authorization as of June 30, 2024
Operating Performance and Costs
- Decreased lease and well costs QoQ, lower than guidance midpoint
- Increased gathering, processing, and transportation costs QoQ, but lower than guidance midpoint
- Decreased general and administrative expenses due to lower employee-related costs
- Lower depreciation, depletion, and amortization costs due to lower-cost reserves
In conclusion, EOG Resources continues to demonstrate its commitment to operational excellence and financial strength. The second quarter of 2024 saw impressive free cash flow generation, strategic capital allocation, and significant shareholder returns. With updated guidance reflecting higher volumes and lower costs, EOG remains confident in its ability to deliver sustained value. The company’s strong performance and proactive approach to shareholder returns underscore its position as a leader in the energy sector. EOG looks forward to building on this momentum and creating further value for its shareholders in the coming quarters.
