EOG Resources (EOG) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong operational and financial results, with adjusted net income of $1.6 billion and free cash flow of $1.5 billion, while GAAP net income was $1.67 billion.

• Shareholder returns included a 7% dividend increase to $0.975 per share and $1.3 billion returned via dividends and buybacks in Q3; share repurchase authorization was expanded by $5 billion.

• Operational excellence and capital discipline led to outperformance in oil, natural gas, and NGL volumes, with per-unit cash operating costs below expectations.

• Peer-leading U.S. price realizations and completion of the Verde Pipeline enhanced operational reliability and margins.

• Focus on technology, innovation, and multi-basin operations continues to drive efficiency and sustainable value creation.

Financial highlights

• Adjusted net income for Q3 2024 was $1.6 billion ($2.89 per share), with GAAP net income at $1.67 billion ($2.95 per share); free cash flow reached $1.5 billion.

• Q3 capital expenditures were $1.5 billion; full-year CapEx expected at $6.1–$6.3 billion.

• Peer-leading U.S. price realizations: $76.95–$77 per barrel of oil and $1.84 per MCF for natural gas.

• Year-to-date free cash flow of $4.1 billion funded $3.8 billion in shareholder returns, including $1.6 billion in regular dividends and $2.2 billion in buybacks.

• Cash and equivalents at September 30, 2024, were $6.12 billion.

Outlook and guidance

• Full-year 2024 guidance updated for higher volumes and lower per-unit cash operating costs.

• Q4 2024 crude oil and condensate production expected at 490.3–495.7 MBod; full-year midpoint at 493.0 MBod.

• Capital expenditures for 2024 expected to be $6.1–$6.3 billion, focused on U.S. drilling in high-return plays.

• On track to return at least 70% of annual net cash from operations (before certain changes) less capex to shareholders.

• Scenario for 2024–2026 projects $12–$22 billion cumulative free cash flow and double-digit average ROCE at $65–$85 WTI.