Now, we have the transcript from the EOG/CEO's presentation at UBS Global Oil and Gas Conference.
I assume the two presentations, less than a month apart, will look very similar, but I already see some data points in the UBS presentation that are interesting.
Some high points from today's transcript:
- again three plays: Eagle Ford, the Bakken, and the Permian
- highlights the new completion technology
- they have two plays in the Delaware Basin (which they like better than the Midland Basin): the Leonard Play and the new play, just announced this past February, the Wolfcamp Plan
- the Leonard with internal rates of return of 100%
- Wolfcamp looks "high" also
- EOG wants to continue increasing the dividend
- EOG wants to get debt ratio down to low 20's; currently about 30%
- in the 2Q13 earnings call, EOG increased one year production growth targets from 28% to 35%
- they will meet production target increase without increasing CAPEX
- testing 160-acre spacing in the Bakken; downspacing with a 100% direct ratio return
- first movers on CBR; they started the whole Bakken CBR process with their facility at Stanley
- unloading facilities in St James, LA (takes most of our Bakken oil) and at Cushing, OK; already paid
- again, in the core Bakken area, EOG has some recent 160-acre wells with anywhere from 2,000 to 2,500 bopd
- Completion technology: 3x to 4x the amount of sand than we've used befoe
- much more "even" along the entire horizontal
- mentioned micro-seismic work
- "we don't want to frack out at long distance. We want to connect it really close to the well." [MDW talked about that a long, long time ago.]
- EOG is at 8% recovery in the Bakken; if you frack too far out, you risk leaving too much oil behind
- Sand: EOG got into sand back in 2008 or 2009 (CEO forgets exactly which year)
- got into sand for secure supply
- owning own sand saves about $500,000 per well (and look how much sand EOG uses) (on a six well pad: $3 million savings)
- EOG uses multiple kinds of sand; combinations work really, really well
- EOG does not rely on outside pumping services; they do all their own work
- the Chippewa Falls, WI, sand mine is environmentally very, very sound
- 20 year-supply of sand; EOG will add more sand to keep a 20-year supply
- EOG will use new completion techniques throughout the Bakken, not just the core
- EURs of 940,000 bbls at 160-acre spacing
- [Comment: either we're being lowballed or the analyst is off, but the comment was made "one well per section": recommend readers look at this portion of the Q&A for themselves)
- 12-year inventory in the Bakken: a little hedging in the answer
- EOG says they have more CBR tank cars than oil, so they will occasionally move 3rd party oil in their tanks
- EOG spoke at length on Three Forks; again, I think it's being understated
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