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• Adjusted Net Income: $6.6 billion, representing a 25% return on capital employed.

• Free Cash Flow Return: 98% returned to shareholders through dividends and share repurchases.

• Capital Expenditures (CapEx): $6.2 billion, with a focus on disciplined investment.

• Production Growth: 3% increase in oil production and 8% increase in total company volume for 2024.

• Proved Reserves: Increased by 6% to 4.7 billion barrels of oil equivalent, with a 201% reserve replacement rate.

• Dividend Increase: Regular dividend increased by 7% to an annual rate of $3.90 per share.

• Share Repurchases: $3.2 billion worth of shares repurchased at an average price of $123 per share.

• Cash and Debt Targets: Aiming for $5 billion to $6 billion in cash and debt each.

• Cash on Balance Sheet: $7.1 billion at the end of 2024.

• 2025 Capital Plan: $6.2 billion CapEx to deliver 3% oil volume growth and 6% total production growth.

• Well Cost Reduction: Expected low single-digit percentage reduction in well costs for 2025.

• International Projects: Increased capital expenditures for projects in Trinidad and a new partnership in Bahrain.

• Warning! GuruFocus has detected 5 Warning Sign with EOG.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EOG Resources Inc (NYSE:EOG) exceeded its original 2024 production forecast while maintaining capital expenditures on target.

• The company achieved a 25% return on capital employed and returned 98% of free cash flow to shareholders through dividends and share repurchases.

• EOG Resources Inc (NYSE:EOG) increased its regular dividend by 7% and has consistently grown its dividend rate twice as fast as its peers since 2019.

• The company holds more than 10 billion barrels of oil equivalent in resource potential, with high returns averaging more than 55% direct after-tax rate of return.

• EOG Resources Inc (NYSE:EOG) has a strong balance sheet with $7.1 billion in cash, providing flexibility for opportunistic investments and shareholder returns.

Negative Points

• The free cash flow guidance for 2025 was softer than expected, partly due to increased cash taxes and higher operating expenses.

• EOG Resources Inc (NYSE:EOG) anticipates a modest increase in international capital expenditures, which may not yield immediate volume impacts.

• Natural gas differential guidance is wider than expected, despite strategic agreements aimed at improving realizations.

• The company faces challenges in optimizing well costs and productivity in emerging plays like the Utica and Dorado.

• EOG Resources Inc (NYSE:EOG) is experiencing increased operating expenses due to higher fuel and power costs in the field.