EOG -- 3Q19 -- Earnings -- Presentation

Link here.

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Note: some would argue that EOG Resources is the premier shale oil company in America right now. Some would argue that CLR might want to claim that title. And then, there are still others. Good luck to all.

Now, back to the featured presentation.

Note: in a long note like this there will be factual and typographical errors. If this is important to you, go to the source.

What I will be looking for in the presentation:

• half-cycle costs
• notes on the Bakken
• examples of single well production

So, here goes.

• costs and returns:
• minimum 30% return on $40 oil / $2.50 natural gas (premium drilling)
• ensures strong returns through cycles
• maintained direct finding cost to less than $10/boe through cycles
• premium wells:
• finding and development cost, 2018: $8.86/boe
• depreciation, depletion, amortization: from $18.43 in 2014 to $12.65 in 2019E; down 31%
• 2018 ROCE (return on capital employed) highest since shift to oil
• guidance: full year growth target of 15% with no change in CAPEX or activity
• do rig counts matter?
• financials:
• at mid-point: $1.5 billion CAPEX; below $1.6 billion target
• debt: 15% net debt to total capitalization lowest since 2008
• $337 million free cash flow
• Permian (as noted in the press release):
• added two new premium plays in the Delaware Basin
• Wolfcamp M
• Third Bone Spring
• 24 years of inventory at current drilling pace
• 6,500 total net premium drilling locations in the Delaware Basin
• Wolfcamp M
• 193,000 net acres
• 855 net undrilled premium locations: EUR -- 1.175 million boe
• total estimated net resource potential: 1.0 billion boe
• well cost target: $7.7 million
• Third Bone Spring
• 200,000 net acres
• 615 net undrilled premium locations: EUR -- 950,000 boe 
• total estimated net resource potential: 615 million boe
• well cost target: $7.6 million
• Bakken: mentioned in passing -- considered to be in its mature phase
• developing its Antelope Extension in 2019
• Clarks Creek 18 IP30 of 3,800 bopd, 4,800 boepd
• 15-well average IP30 of 2,150 bopd, 300 bpd NGLs, 2 million cfpd gas
• net completions across all plays in 2019 
• Eagle Ford: 300
• Permian/Delaware Basin: 270 
• Powder River Basin: 40  
• Wyoming DJ Basin: 35 
• Woodford (OK, TX panhandle): 30
• Bakken: 20

Inventory: