NOG And EOG Report Earnings -- EOG Declares Special Dividend Of $1.80 / Share -- May 5, 2022

Updates

May 6, 2022: the EOG dividend.

Original Post

NOG: record first quarter 2022 results; updates guidance.

EOG: first quarter results; adds quantitative guidance to cash return; declares a $1.80 / share special dividend. The special dividend is on top of the regular dividend of 75 cents. 

One random observation:

• EOG has 585 million shares outstanding
• 585 million x $2.55 = $1,500 million or $1.5 billion dollars in dividends in one quarter
• $10 million tops to drill and complete a well
• $1,500 million / $10 million = 150 wells
• again, one quarter -- dividends that could cover 150 new wells.
  

Note: I often make simple arithmetic mistakes. Feel free to fact-check those calculations.

This tells me that EOG is satisfied with their drilling program and see no need to change their strategic plan. It also suggests they don't see a significant drop in oil prices or oil demand.

Now, making this a bit more interesting, let's continue a bit of idle rambling. EOG is as much "gas" as it is "oil." In fact, it's now focusing on a play (the Permian) that is much "gassier" than the Bakken. 

So, note this, and after reading the headline, check out the link and see the social media replies. 

Link here.

This could go a long way explaining how/why EOG could declare a special dividend of $1.80 on top of a regular quarterly dividend of 75 cents.

Checking the prices:

• WTI: $108.50.
• natural gas: $8.834