EOG Reports 2Q19 -- August 1, 2019

Locator: 10010EOG.

Updates

October 23, 2023: EOG update -- permitting and drilling.

September 5, 2021, 2Q21 presentation: I can't find current net acres for EOG, but probably about 300,000; canceled all their Hawkeye permits; everything suggests EOG will shut down their operations in the Bakken; probably 50/50 whether they sell their Bakken assets / acreage; or hold them for the long term. 300,000 acres * $20,000 = $6 billion.

August 3, 2019: EOG continues to deliver free cash flow in a challenging environment -- SeekingAlpha contributor, Z4 Research. Data points:

• the 2Q19 numbers: 
• oil production was above guidance range
• oil price above guidance at $1.18 per barrel above WTI (they estimate 2Q realization will be $3.36 / barrel above their peer group; it was $3.79 above last quarter)
• CAPEX was below guidance at $1.6 B vs guidance of $1.7 B
• cash operating expenses on a per unit basis were down 7% YoY
• favorite quote watch: "EOG generated $2.1 billion of discretionary cash flow in the second quarter 2019, one percentmore than the same prior year period despite a 12 percent decline in the NYMEX WTI benchmark price." 
• after dividends of $127 mm, free cash was $352 mm
• guidance: 
• 2019 volumes: tightened to 794 to 823 MBOEpd (mid of 809 Mboepd) vs prior range of 781 to 842 Mboepd (mid of 811.5 Mboepd) 
• 2019 CAPEX: unchanged vs prior range of $6.1 to $6.5 B. No change to 740 net well completions
• well costs down 4% YTD

Original Post

 EOG reports. Link here.

• production --
• crude oil production increased 18% year-over-year
• 455,700 bopd, a new company record
• NGLs increased 16%
• natural gas grew by 10%
• total company production growth of 16%
• financials --
• exceeded target with CAPEX below target
• income of $1.46/share; $0.848 billion
• compare 2Q18: $0.697 billion or $1.20/share
• net cash: $2.7 billion
• wells are costing less
• discretionary cash flow increased by one percent despite a 12 percent decline in NYMEX WTI benchmark price

Before 2Q19:

• 1Q17: sets company record -- 315,700 bopd -- about what Libya does when that country gets its act together
• 1Q16: EOG presentation: 120,000 acres core; 110,000 acres non-core;
• 3Q15, EOG presentation: 120,000 acres core; 110,000 acres non-core;
• 1Q14: down to 90,000 acres of Core Bakken; Antelope Extension: 20,000 acres; Core well -- 92% oil, 2% gas, 6% NGL; Antelope well -- 78% oil, 11% gas, 11% NGL
• 580,000 net acres; November, 2012, NOG says 600,000 acres
• BEXP presentation says EOG has 600,000 net acres (as does Filloon, June, 2011)
• Bakken Core: Parshall oil field, for the most part; 100,000 net acres; 640-acre spacing
• Bakken Lite: Bakken outside the Parshall oil field. e.g., northwest of Williston; 480,000 net acres; 320-acre spacing
• Three Forks: 
• February 1, 2011: company says they may be going down to 5 rigs; cut back to 2 frack crews; I don't think EOG fracks during the winter