EOG Resources (EOG) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 adjusted net income of $1.8B ($3.16/share) and $1.4B free cash flow, exceeding production and cost targets, with total production up 2% sequentially and robust shareholder returns.

• Updated full-year 2024 guidance: increased total liquids production target by 11,800 bbl/d, raised free cash flow forecast by $100M to $5.7B, and maintained capital discipline.

• Outperformance driven by operational excellence, technology, and innovation across all basins, leveraging a multi-basin portfolio for flexibility and resilience.

• Returned $1.2B to shareholders in Q2 via $0.91/share dividend and $690M in share repurchases; YTD returns reached $2.5B.

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

Financial highlights

• Q2 2024: $1.8B adjusted net income, $1.4B free cash flow, $1.7B capital expenditures, $6.0B total revenue, and $2.95 diluted EPS.

• First half 2024: $2.6B free cash flow, $2.5B returned to shareholders, $5.79B net cash from operations, and $5.43B cash balance at June 30.

• Paid $0.91/share dividend and repurchased 690M shares in Q2; $3.5B cash return commitment for 2024.

• Regular dividend commitment stands at $2.1B annually, with a 10% increase for 2024.

• Debt-to-total capitalization improved to 11.5% at quarter-end; net debt-to-total capitalization was -6.0%.

Outlook and guidance

• Increased 2024 liquids production guidance by 11,800 bbl/d; annual volume guidance raised by 1,800 bbl/d oil and 10,000 bbl/d NGLs.

• Lowered per unit cash operating cost guidance by $0.15; full-year free cash flow forecast now $5.7B.

• FY 2024 capital expenditures forecasted at $6.2B; Q3 2024 crude oil equivalent production expected at 1,050–1,081 MBoed.

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

• Optimistic on long-term gas demand from 2025 due to new LNG capacity and rising electricity demand.