EOG Resources (EOG) Q2 2024 earnings summary

Executive summary

• Delivered exceptional Q2 2024 results with $1.8B adjusted net income and $1.4B free cash flow, exceeding production and cost guidance, and returning $1.2B to shareholders via dividends and buybacks.

• Q2 2024 operating revenues rose 8% year-over-year to $6.0B, driven by higher crude oil and NGL prices and volumes, offset by lower natural gas prices.

• Multi-basin portfolio and decentralized teams drove operational and financial outperformance, with all major plays contributing.

• Maintained capital discipline, generating free cash flow for 8 consecutive years and supporting consistent shareholder returns.

• Updated full-year guidance to reflect higher volumes and lower per-unit cash operating costs.

Financial highlights

• Q2 2024: $1.8B adjusted net income, $1.4B free cash flow, $1.7B capital expenditures, and $6.03B total revenues.

• Adjusted EPS was $3.16 and adjusted cash flow per share was $5.32 for Q2 2024.

• Paid $0.91/share dividend and repurchased $690M in shares in Q2; over $1B in regular dividends and $1.4B in buybacks YTD.

• Net cash from operations for six months: $5.79B; cash balance at June 30, 2024: $5.43B.

• On track to exceed 70% minimum and 85% prior year cash return commitments.

Outlook and guidance

• Raised 2024 total liquids production target by 11,800 barrels/day and increased full-year free cash flow forecast by $100M to $5.7B at $80 oil/$2.50 gas strip prices.

• Capital program remains unchanged; cash operating cost targets reduced by $0.15/BOE.

• Q3 2024 crude oil equivalent production expected at 1,050–1,081 MBoed; FY 2024 midpoint at 1,066 MBoed.

• Scenario for 2024-2026 projects $12–$22B cumulative free cash flow and 20–30% average ROCE at $65–$85 WTI.

• Remain optimistic on long-term gas demand from 2025, driven by new LNG capacity and power generation.