EOG Resources (EOG) JP Morgan Energy, Power and Renewables Conference summary

Macro environment and market outlook

• Oil markets are currently balanced, with strong global demand and OPEC+ cuts expected to ease later this year or next, supporting a bullish outlook for oil prices.

• Natural gas prices dropped sharply early in the year, prompting deferred completions, but are now recovering; high storage levels and upcoming LNG export capacity are key watchpoints.

• Significant new LNG export capacity (10-12 BCF) is coming online over the next three years, expected to relieve domestic price pressure and create new opportunities.

• The company has established a dedicated gas business in South Texas, positioned near LNG offtake markets.

Exploration and portfolio strategy

• Focus remains on both domestic and international exploration, emphasizing shallow offshore and onshore unconventional plays, with a robust prospect list.

• New plays must meet criteria for scale, shallow decline, high return, or low F&D cost; international and domestic prospecting is active.

• Canadian assets were divested due to competitive disadvantages; global opportunities must compete with the strong domestic portfolio.

• U.S. portfolio includes multiple greenfield and bypassed opportunities, leveraging new technology for improved returns.

Inventory, M&A, and capital discipline

• Over 10 billion BOE of premium resource inventory, with a high investment hurdle rate (30% after-tax return at $40 oil/$2.50 gas).

• Preference for low-cost organic growth over high-priced M&A; recent Utica entry secured 435,000 acres at $600/acre, with strong well results.

• M&A and organic opportunities are evaluated strictly on returns, with a focus on operational control and top-tier acreage.