The Million Dollar Way (The Bakken Oil Blog): Data Points From EOG 4Q13 Conference Call

Wednesday, February 26, 2014

Random data points from EOG's 4Q13 and full year 2013 earnings. As usual, numbers may be rounded.

Finances

4Q13: net income of $2.12/share
full year: net income of $8.04/share
4Q13 discretionary cash flow: $2 billion
For full year, EOG's net cash provided by operating activities exceeded financing investing cash outflows.
debt/total cap: 28%; debt reduced by almost $1 billion during 2013

Operations

Eagle Ford

biggest driver for EOG
for third time since EOG discovered oil in the Eagle Ford in 2010, EOG has increased the net reserve potential
EOG's estimated net reserve potential: 3.2 billion bbls equivalent; 45% increase over the previous 2.2 billion bbls
7,200 net drilling locations (includes the 1,200 net wells drilled to-date)
6,000 net wells remaining = 12-year drilling inventory
increased by 12% net recoverable reserve per well; up from previous 400,000 boe to 450,000 boe

The Bakken

in 2014, expect to again grow crude oil production
localized in two areas: Bakken Core and Antelope Extension; majority in the Core
downspace in each area
operate a 6-rig program
plan to drill 80 net wells this year, up from 54 last year

The Permian (Leonard)

the Leonard is EOG's third best play in terms of rate of return; drilling in two zones, A and B
CAPEX to remain flat
shift from Midland Basin to higher return plays in the Delaware Basin, the Leonard, and Wolfcamp
biggest increase in activity will be the Leonard where recent wells have been excellent
will develop A zone with 8 to 10 wells/section

Pricing

for March 2014, 181,000 bbls hedged at $96.55
for April 1 through June 30, 2014, 168,000 bbls hedged at $96.48
for second half of 2014, 64,000 bbls hedged at $95.18
natural gas hedged at $4.55 through end of 2014
for the sixth year in a row, EOG is not growing it North American natural gas production

Q&A