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What changed in EOG Resources's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of EOG Resources's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+372 added−390 removedSource: 10-K (2025-02-27) vs 10-K (2024-02-22)

Top changes in EOG Resources's 2024 10-K

372 paragraphs added · 390 removed · 316 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

91 edited+21 added−21 removed69 unchanged
Biggest changeYear Ended December 31 2023 2022 2021 Crude Oil and Condensate Volumes (MMBbl) (1) United States: Delaware Basin 110.2 101.1 84.3 Eagle Ford Play 43.9 46.6 51.8 Other 19.4 20.3 25.7 United States 173.5 168.0 161.8 Trinidad 0.2 0.3 0.5 Other International (2) — — — Total 173.7 168.3 162.3 Natural Gas Liquids Volumes (MMBbl) (1) United States: Delaware Basin 59.8 50.7 30.9 Eagle Ford Play 10.5 10.5 9.0 Other 11.4 10.9 12.8 United States 81.7 72.1 52.7 Total 81.7 72.1 52.7 Natural Gas Volumes (Bcf) (1) United States: Delaware Basin 325 279 238 Eagle Ford Play 50 52 55 Other 191 149 149 United States 566 480 442 Trinidad 59 66 79 Other International (2) — — 3 Total 625 546 524 Crude Oil Equivalent Volumes (MMBoe) (3) United States: Delaware Basin 224.2 198.3 154.9 Eagle Ford Play 62.7 65.8 70.0 Other 62.6 56.0 63.3 United States 349.5 320.1 288.2 Trinidad 9.9 11.4 13.7 Other International (2) — — 0.6 Total 359.4 331.5 302.5 5 Year Ended December 31 2023 2022 2021 Average Crude Oil and Condensate Prices ($/Bbl) (4) United States $ 79.18 $ 97.22 $ 68.54 Trinidad 68.58 86.16 56.26 Other International (2) — — 42.36 Composite 79.17 97.21 68.50 Average Natural Gas Liquids Prices ($/Bbl) (4) United States $ 23.07 $ 36.70 $ 34.35 Composite 23.07 36.70 34.35 Average Natural Gas Prices ($/Mcf) (4) United States $ 2.70 $ 7.27 $ 4.88 Trinidad 3.65 4.43 (5) 3.40 Other International (2) — — 5.67 Composite 2.79 6.93 4.66 (1) Million barrels or billion cubic feet, as applicable.
Biggest changeYear Ended December 31 2024 2023 2022 Crude Oil and Condensate Volumes (MMBbl) (1) United States: Delaware Basin 113.3 110.2 101.1 Eagle Ford Play 45.5 43.9 46.6 Other 20.8 19.4 20.3 United States 179.6 173.5 168.0 Trinidad 0.3 0.2 0.3 Total 179.9 173.7 168.3 Natural Gas Liquids Volumes (MMBbl) (1) United States: Delaware Basin 67.7 59.8 50.7 Eagle Ford Play 11.1 10.5 10.5 Other 11.2 11.4 10.9 United States 90.0 81.7 72.1 Total 90.0 81.7 72.1 Natural Gas Volumes (Bcf) (1) United States: Delaware Basin 380 325 279 Eagle Ford Play 53 50 52 Other 199 191 149 United States 632 566 480 Trinidad 81 59 66 Total 713 625 546 Crude Oil Equivalent Volumes (MMBoe) (2) United States: Delaware Basin 244.4 224.2 198.3 Eagle Ford Play 65.4 62.7 65.8 Other 65.2 62.6 56.0 United States 375.0 349.5 320.1 Trinidad 13.7 9.9 11.4 Total 388.7 359.4 331.5 5 Year Ended December 31 2024 2023 2022 Average Crude Oil and Condensate Prices ($/Bbl) (3) United States $ 77.42 $ 79.18 $ 97.22 Trinidad 64.43 68.58 86.16 Composite 77.40 79.17 97.21 Average Natural Gas Liquids Prices ($/Bbl) (3) United States $ 23.40 $ 23.07 $ 36.70 Composite 23.40 23.07 36.70 Average Natural Gas Prices ($/Mcf) (3) United States $ 1.99 $ 2.70 $ 7.27 Trinidad 3.65 3.65 4.43 (4) Composite 2.17 2.79 6.93 (1) Million barrels or billion cubic feet, as applicable.
Department of the Interior (via various of its agencies, including the BLM, the BIA and the Office of Natural Resources Revenue) has certain authority over our calculation and payment of royalties, bonuses, fines, penalties, assessments and other revenues related to our federal and tribal oil and gas leases.
Department of the Interior (via various of its agencies, including the BLM, the BIA and the Office of Natural Resources Revenue) has certain authority over our calculation and payment of royalties, bonuses, fines, penalties, assessments and other revenues related to federal and tribal oil and gas leases.
In addition, EOG's larger competitors may have a competitive advantage when responding to factors that affect demand for crude oil, NGLs and natural gas, such as changing worldwide prices and levels of production and the cost and availability of alternative fuels. EOG also faces competition from competing energy sources, such as renewable energy sources. See ITEM 1A, Risk Factors.
In addition, EOG's larger competitors may have a competitive advantage when responding to factors that affect demand for crude oil, NGLs and natural gas, such as changing worldwide prices and levels of production and the cost and availability of alternative fuels. EOG also faces competition from alternative energy sources, such as renewable energy sources. See ITEM 1A, Risk Factors.
Further, EOG will continue to monitor and assess the impact on its business of any environmental, climate change or other policies, legislation and regulations enacted by foreign governments – for example, the European Union’s November 2023 approval of methane emissions limits on crude oil and natural gas imports beginning in 2030. 11 Other Matters Energy Prices.
Further, EOG will continue to monitor and assess the impact on its business of any environmental, climate change or other policies, legislation and regulations enacted by foreign governments – for example, the European Union’s November 2023 approval of methane emissions limits on crude oil and natural gas imports beginning in 2030. Other Matters Energy Prices.
EOG's leadership training, in particular, is focused on providing continuity of leadership at EOG by further developing the skills needed to lead a multi-disciplined, diverse and decentralized workforce. In addition, EOG holds several internal technical conferences each year designed to share best practices and technical advances across the company, including safety and environmental topics.
EOG's leadership training, in particular, is focused on providing continuity of leadership at EOG by further enhancing the skills needed to lead a multi-disciplined, diverse and decentralized workforce. In addition, EOG holds several internal technical conferences each year designed to share best practices and technical advances across the company, including safety and environmental topics.
EPA, in May 2016, issued regulations that require operators to reduce methane emissions and emissions of volatile organic compounds (VOC) from new, modified and reconstructed crude oil and natural gas wells and equipment located at natural gas production gathering and booster stations, gas processing plants and natural gas transmission compressor stations. In November 2021, the U.S.
EPA, in May 2016, issued regulations that require operators to reduce methane emissions and emissions of volatile organic compounds (VOC) from new, modified and reconstructed crude oil and natural gas wells and equipment located at natural gas production gathering and boosting stations, gas processing plants and natural gas transmission compressor stations. In November 2021, the U.S.
EOG believes that opportunities exist to increase production through continued development in and around many of these fields and through the utilization of applicable technologies.
EOG believes opportunities exist to increase production through continued development in and around many of these fields and through the utilization of applicable technologies.
See ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations, for wellhead volumes on a per-day basis.
See ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations, for volumes on a per-day basis.
EOG did not transport any crude oil by rail during 2023. Proposals and proceedings that might affect the oil and gas industry are considered from time to time by Congress, the state legislatures, the FERC and other federal, state and local regulatory commissions, agencies, councils and courts.
EOG did not transport any crude oil by rail during 2024. Proposals and proceedings that might affect the oil and gas industry are considered from time to time by Congress, the state legislatures, the FERC and other federal, state and local regulatory commissions, agencies, councils and courts.
The table also presents crude oil equivalent volumes which are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 Mcf of natural gas for each of the years ended December 31, 2023, 2022 and 2021.
The table also presents crude oil equivalent volumes which are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 Mcf of natural gas for each of the years ended December 31, 2024, 2023 and 2022.
This strategy is intended to enhance the generation of cash flow and earnings from each unit of production on a cost-effective basis, allowing EOG to maximize long-term growth in shareholder value and maintain a strong balance sheet.
This strategy is intended to enhance the generation of cash flow and earnings from each unit of production on a cost-efficient basis, allowing EOG to maximize long-term growth in shareholder value and maintain a strong balance sheet.
Donaldson was elected Executive Vice President, General Counsel and Corporate Secretary in April 2016. Previously, Mr. Donaldson served as Vice President, General Counsel and Corporate Secretary from May 2012 to April 2016. He was elected Corporate Secretary in May 2008, and was appointed Deputy General Counsel and Corporate Secretary in July 2010. Mr. Donaldson joined EOG in September 2007. 14
Donaldson was elected Executive Vice President, General Counsel and Corporate Secretary in April 2016. Previously, Mr. Donaldson served as Vice President, General Counsel and Corporate Secretary from May 2012 to April 2016. He was elected Corporate Secretary in May 2008, and was appointed Deputy General Counsel and Corporate Secretary in July 2010. Mr. Donaldson joined EOG in September 2007. 13
Additionally, EOG sells natural gas to a liquefaction facility near Corpus Christi, Texas, and receives pricing based on the Platts Japan Korea Marker; such pricing mechanism is expected to remain the same in 2024.
Additionally, EOG sells natural gas to a liquefaction facility near Corpus Christi, Texas, and receives pricing based on the Platts Japan Korea Marker; such pricing mechanism is expected to remain the same in 2025.
EOG, through its subsidiaries, including EOG Resources Trinidad Limited, holds interests in (i) the exploration and production licenses covering the South East Coast Consortium (SECC) Block, Pelican and Banyan Fields, Sercan Area and each of their related platforms and facilities and the Ska, Mento and Reggae and deep Teak, Saaman and Poui (TSP) Areas, all of which are offshore Trinidad; and (ii) two production sharing contracts with the Government of Trinidad and Tobago for the Modified U(a) and 4(a) Blocks.
EOG, through its subsidiaries, including EOG Resources Trinidad Limited, holds interests in (i) the exploration and production licenses covering the South East Coast Consortium (SECC) and Pelican Blocks, Banyan and Sercan Areas and each of their related platforms and facilities and the Ska, Mento and Reggae (SMR) and deep Teak, Saaman and Poui (TSP Deep) Areas, all of which are offshore Trinidad; and (ii) two production sharing contracts with the Government of Trinidad and Tobago for the Modified U(a) and 4(a) Blocks.
In 2023, consistent with its diversified marketing strategy, the majority of EOG's United States wellhead natural gas production was transported by pipeline to various locations, including Katy, Texas; East Texas; the Agua Dulce Hub in South Texas; the Cheyenne Hub in Weld County, Colorado; and Chicago, Illinois. Remaining natural gas production was sold into local markets.
In 2024, consistent with its diversified marketing strategy, the majority of EOG's United States natural gas production was transported by pipeline to various locations, including Katy, Texas; East Texas; the Agua Dulce Hub in South Texas; the Cheyenne Hub in Weld County, Colorado; and Chicago, Illinois. Remaining natural gas production was sold into local markets.
EOG does not believe that the loss of any single purchaser would have a materially adverse effect on its financial condition or results of operations. 4 Wellhead Volumes and Prices The following table sets forth certain information regarding EOG's wellhead volumes of, and average prices for, crude oil and condensate, NGLs and natural gas.
EOG does not believe that the loss of any single purchaser would have a material adverse effect on its financial condition or results of operations. 4 Volumes and Prices The following table sets forth certain information regarding EOG's volumes of, and average prices for, crude oil and condensate, NGLs and natural gas.
Competition EOG competes with major integrated oil and gas companies, government-affiliated oil and gas companies and other independent oil and gas companies for the acquisition of licenses and leases, properties and reserves and access to the facilities, equipment, materials, services, and employees and other personnel (including geologists, geophysicists, engineers and other specialists) required to explore for, develop, produce, market and transport crude oil, NGLs and natural gas.
Competition EOG competes with major integrated oil and gas companies, government-affiliated oil and gas companies and other independent oil and gas companies for the acquisition of licenses, concessions and leases, properties and reserves and access to the facilities, equipment, materials, services, and employees and other personnel (including geologists, geophysicists, engineers and other specialists) necessary to explore for, develop, produce, market and transport crude oil, NGLs and natural gas.
(5) Includes positive revenue adjustment of $0.76 per Mcf ($0.09 per Mcf of EOG's composite wellhead natural gas price) for the twelve months ended December 31, 2022, related to a price adjustment per a provision of the natural gas sales contract with NGC amended in July 2022 for natural gas sales during the period from September 2020 through June 2022.
(4) Includes positive revenue adjustment of $0.76 per Mcf ($0.09 per Mcf of EOG's composite natural gas price) for the twelve months ended December 31, 2022, related to a price adjustment per a provision of the natural gas sales contract with NGC amended in July 2022 for natural gas sales during the period from September 2020 through June 2022.
In each case, pricing was based on the spot market price at the ultimate sales point. In 2024, the pricing mechanism for such production is expected to remain the same.
In each case, pricing was based on the spot market price at the ultimate sales point. In 2025, the pricing mechanism for such production is expected to remain the same.
Prior to that, Mr. Leitzell held various engineering roles of increasing responsibility in multiple offices and functional areas within EOG. Mr. Leitzell joined EOG in October 2008. Ann D. Janssen was elected Executive Vice President and Chief Financial Officer effective January 2024. Previously, Ms.
Leitzell held various engineering roles of increasing responsibility in multiple offices and functional areas within EOG. Mr. Leitzell joined EOG in October 2008. Ann D. Janssen was elected Executive Vice President and Chief Financial Officer effective January 2024. Previously, Ms.
Please refer to ITEM 1A, Risk Factors, for further discussion of the risks to which EOG is subject with respect to its operations outside the United States. Information About Our Executive Officers The current executive officers of EOG and their names and ages (as of February 22, 2024) are as follows: Name Age Position Ezra Y.
Please refer to ITEM 1A, Risk Factors, for further discussion of the risks to which EOG is subject with respect to its operations outside the United States. Information About Our Executive Officers The current executive officers of EOG and their names and ages (as of February 27, 2025) are as follows: Name Age Position Ezra Y.
In addition, EOG has developed, and will continue to develop, targets and ambitions related to its environmental, social and governance (ESG) initiatives, including, but not limited to, its emissions reduction targets and its ambition to reach net zero Scope 1 and Scope 2 GHG emissions by 2040.
In addition, EOG has developed, and will continue to develop, targets and ambitions related to its environmental initiatives, including, but not limited to, its emissions reduction targets and its ambition to reach net zero Scope 1 and Scope 2 GHG emissions by 2040.
See ITEM 1A, Risk Factors, for additional discussion regarding EOG’s initiatives, targets and ambitions related to emissions and other ESG matters.
See ITEM 1A, Risk Factors, for additional discussion regarding EOG’s initiatives, targets and ambitions related to emissions and other environmental matters.
During 2023, three purchasers each accounted for more than 10% of EOG's total wellhead crude oil and condensate, NGLs and natural gas revenues and gathering, processing and marketing revenues. The purchasers are in the crude oil refining industry.
During 2024, three purchasers each accounted for more than 10% of EOG's total crude oil and condensate, NGLs and natural gas revenues and gathering, processing and marketing revenues. The purchasers are in the crude oil refining industry.
Human Capital Management As of December 31, 2023, EOG employed approximately 3,050 persons, including foreign national employees. EOG's approach to human capital management includes oversight by the Board of Directors (Board) and the Compensation and Human Resources Committee of the Board and focuses on various areas, including the following: Culture; Recruiting; Retention .
Human Capital Management As of December 31, 2024, EOG employed approximately 3,150 persons, including foreign national employees. EOG's approach to human capital management includes oversight by the Board of Directors (Board) and the Compensation and Human Resources Committee of the Board and focuses on various areas, including the following: Culture; Recruiting; Retention .
Exploration and Production United States Operations EOG's operations are located in most of the productive basins in the United States with a focus on crude oil and, to a lesser extent, natural gas plays.
Exploration and Production United States Operations EOG's operations are located in most of the productive basins in the United States with a focus on crude oil and natural gas plays.
Moreover, for any incident involving EOG's operations which results in negative environmental effects, EOG maintains operators extra expense coverage provided by third-party insurers for obligations, expenses or claims that EOG may incur from such an incident, including obligations, expenses or claims in respect of sudden and accidental seepage and pollution, cleanup and containment, evacuation expenses and control of the well (subject to policy terms and conditions).
Moreover, for any incident involving EOG's operations which results in negative environmental effects, EOG maintains operators extra expense insurance coverage for obligations, expenses or claims that EOG may incur from such an incident, including obligations, expenses or claims in respect of sudden and accidental seepage and pollution, cleanup and containment, evacuation expenses and control of the well (subject to policy terms and conditions).
EOG's operations are all crude oil and natural gas exploration and production related. For information regarding the risks associated with EOG's domestic and foreign operations, see ITEM 1A, Risk Factors. EOG is focused on being among the lowest-cost, highest-return and lowest-emissions producers, playing a significant role in the long-term future of energy.
EOG's operations are all crude oil and natural gas exploration and production related. For information regarding the risks associated with EOG's domestic and foreign operations, see ITEM 1A, Risk Factors. EOG is focused on being among the highest return and lowest cost producers, committed to strong environmental performance and playing a significant role in the long-term future of energy.
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2024 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in wellhead natural gas price is approximately $27 million for net income and $35 million for pretax cash flows from operating activities.
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2025 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in natural gas price is approximately $33 million for net income and $42 million for pretax cash flows from operating activities.
Activity in 2024 will remain focused on the Wolfcamp, Bone Spring, and Leonard plays, where EOG expects to complete approximately 360 net wells. The South Texas area includes our Eagle Ford play and our Dorado gas play. EOG holds approximately 535,000 total net acres in the Eagle Ford play and approximately 160,000 net acres in the Dorado gas play.
Activity in 2025 will remain focused on the Wolfcamp, Bone Spring and Leonard plays, where EOG expects to complete approximately 375 net wells. The South Texas area includes the Eagle Ford play and the Dorado gas play. EOG holds approximately 535,000 total net acres in the Eagle Ford play and approximately 160,000 net acres in the Dorado gas play.
Average crude oil and condensate prices received by EOG for production in the United States decreased 19% in 2023, increased 42% in 2022 and increased 77% in 2021, each as compared to the immediately preceding year.
Average crude oil and condensate prices received by EOG for production in the United States decreased 2% in 2024, decreased 19% in 2023 and increased 42% in 2022, each as compared to the immediately preceding year.
Average NGLs prices received by EOG for production in the United States decreased 37% in 2023, increased 7% in 2022 and increased 156% in 2021, each as compared to the immediately preceding year.
Average NGLs prices received by EOG for production in the United States increased 1% in 2024, decreased 37% in 2023 and increased 7% in 2022, each as compared to the immediately preceding year.
EPA has issued regulations with respect to the reduction of methane and VOC emissions, including its final methane rules announced in December 2023. From time to time, there have been various other proposals to regulate hydraulic fracturing at the federal level.
EPA has issued regulations with respect to the reduction of methane and VOC emissions, including its final methane rules published in March 2024. From time to time, there have been various other proposals to regulate hydraulic fracturing at the federal level.
Based on EOG's tax position, EOG's price sensitivity in 2024 for each $1.00 per barrel increase or decrease in wellhead crude oil and condensate price, combined with the estimated change in NGLs price, is approximately $151 million for net income and $193 million for pretax cash flows from operating activities.
Based on EOG's tax position, EOG's price sensitivity in 2025 for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGLs price, is approximately $159 million for net income and $204 million for pretax cash flows from operating activities.
The transportation and sale for resale of natural gas in interstate commerce are regulated pursuant to the Natural Gas Act of 1938, as amended (NGA), and the Natural Gas Policy Act of 1978. These statutes are administered by the Federal Energy Regulatory Commission (FERC).
EOG's interests in offshore leases are de minimis. The transportation and sale for resale of natural gas in interstate commerce are regulated pursuant to the Natural Gas Act of 1938, as amended (NGA), and the Natural Gas Policy Act of 1978. These statutes are administered by the Federal Energy Regulatory Commission (FERC).
At December 31, 2023, on a crude oil equivalent basis, 39% of EOG's net proved reserves in the United States were crude oil and condensate, 28% were NGLs and 33% were natural gas. The majority of these reserves are in long-lived fields with well-established production characteristics.
At December 31, 2024, on a crude oil equivalent basis, 40% of EOG's net proved reserves in the United States were crude oil and condensate, 29% were NGLs and 31% were natural gas. The majority of these reserves are in long-lived fields with well-established production characteristics.
EOG will continue to review the risks to its business and operations outside the United States associated with all environmental matters, including climate change and hydraulic fracturing regulation.
EOG will continue to review the risks to its existing business and operations, as well as any potential business and operations, outside the United States associated with all environmental matters, including climate change and hydraulic fracturing regulation.
EOG owns certain gathering and/or processing facilities supporting EOG's operations in the Permian Basin in West Texas and New Mexico, the Powder River Basin in Wyoming, the Utica Shale in Ohio, the Fort Worth Basin Barnett Shale in North Texas, the Williston Basin Bakken and Three Forks plays in North Dakota, and the Eagle Ford play and Dorado gas play in South Texas.
EOG owns certain gathering and/or processing facilities and systems in the Permian Basin in West Texas and New Mexico, the Anadarko Basin in Oklahoma, the Powder River Basin in Wyoming, the Utica in Ohio, the Barnett Shale in the Bend Arch-Fort Worth Basin in North Texas, the Bakken and Three Forks plays in the Williston Basin in North Dakota, and the Eagle Ford play and Dorado gas play in South Texas.
EOG is subject to various federal, state and local laws and regulations covering the discharge or release of materials into the environment or otherwise relating to the protection of the environment.
Environmental Regulation Generally - United States. EOG is subject to various federal, state and local laws and regulations covering the discharge or release of materials into the environment or otherwise relating to the protection of the environment.
In the Delaware Basin, EOG completed 370 net wells in 2023, primarily in the Wolfcamp, Bone Spring and Leonard plays. The Delaware Basin consists of approximately 4,800 feet of oil-rich stacked pay potential offering EOG multiple co-development opportunities throughout its 395,000 net acre position. In the Wolfcamp play, EOG completed 188 net wells in 2023.
In the Delaware Basin, EOG completed 385 net wells in 2024, primarily in the Wolfcamp, Bone Spring and Leonard plays. The Delaware Basin consists of approximately 4,800 feet of liquids-rich stacked pay potential offering EOG multiple co-development opportunities throughout its 395,000 net acre position.
Specifically, EOG maintains commercial general liability and excess liability coverage provided by third-party insurers for bodily injury or death claims resulting from an incident involving EOG's operations (subject to policy terms and conditions).
Specifically, EOG maintains commercial general liability and excess liability insurance coverage for bodily injury or death claims resulting from an incident involving EOG's operations (subject to policy terms and conditions).
The Paris Agreement (adopted at the conference) calls for nations to undertake efforts with respect to global temperatures and GHG emissions. The Paris Agreement went into effect in November 2016; the United States formally rejoined the Paris Conference in February 2021.
The Paris Agreement (adopted at the conference) calls for nations to undertake efforts with respect to global temperatures and GHG emissions. The Paris Agreement went into effect in November 2016.
Leitzell was elected Executive Vice President and Chief Operating Officer in December 2023. Mr. Leitzell previously served as Executive Vice President, Exploration and Production from May 2021 to December 2023, Vice President and General Manager of EOG's Midland, Texas office from December 2017 to May 2021 and as Operations Manager in Midland from August 2015 to December 2017.
Leitzell previously served as Executive Vice President, Exploration and Production from May 2021 to December 2023, Vice President and General Manager of EOG's Midland, Texas office from December 2017 to May 2021 and as Operations Manager in Midland from August 2015 to December 2017. Prior to that, Mr.
For example, EOG has developed an environmental data collection and analysis system that is utilized in calculating GHG emissions from the facilities it operates. This system calculates emissions based on recognized regulatory methodologies, where applicable, and on commonly accepted engineering practices.
EOG’s approach to reducing emissions from its operations remains operationally focused. For example, EOG has developed an environmental data collection and analysis system that is utilized in calculating GHG emissions from the facilities it operates. This system calculates emissions based on recognized regulatory methodologies, where applicable, and on commonly accepted engineering practices.
In April 2021, a subsidiary of EOG entered into a purchase and sale agreement to acquire a 100% interest in the WA-488-P Block, located offshore Western Australia. In November 2021, the petroleum exploration permit for that block was transferred to that subsidiary.
In April 2021, a subsidiary of EOG entered into a purchase and sale agreement to acquire a 100% interest in the WA-488-P Block, located offshore Western Australia. In November 2021, the petroleum exploration permit for that block was transferred to that subsidiary. The company has deferred drilling plans to further evaluate the prospect. Canada.
In addition, the Inflation Reduction Act of 2022 (IRA) requires that all leases granted and administered by the BLM and entered into on or after August 16, 2022 include a royalty rate of 16.67 percent in respect of the associated oil and gas production. BLM and BIA leases contain relatively standardized terms requiring compliance with detailed regulations.
In addition, the Inflation Reduction Act of 2022 (IRA) requires that all leases granted and administered by the BLM and entered into on or after August 16, 2022 include a royalty rate of 16.67 percent in respect of the associated oil and gas production.
EOG also collects and tracks safety data and metrics to identify trends and enhance our understanding, identification and implementation of proactive safety management practices.
EOG also collects and tracks incident data and metrics to identify trends, implement corrective actions as necessary, and enhance our understanding, identification and implementation of proactive safety management practices.
To help assess the effectiveness of its approach to human capital management, EOG conducts an annual employee engagement and satisfaction survey. Based on the results of the survey, EOG has received "top workplace" recognition in various office locations. Compensation, Benefits, Health & Wellness .
To help assess the effectiveness of its approach to human capital management, EOG conducts an annual employee engagement and satisfaction survey. Based on the results of the survey, EOG has received "top workplace" recognition in various office locations as well as several "culture excellence" awards.
At December 31, 2023, EOG was committed to deliver to multiple parties fixed quantities of crude oil of 7 MMBbls in 2024 and 1 MMBbls in 2025, all of which is expected to be sourced from future production of available reserves.
At December 31, 2024, EOG was committed to deliver to multiple parties aggregate fixed quantities of purity products of 15 MMBbls in 2025, all of which is expected to be sourced from future production of available reserves.
At December 31, 2023, EOG's total estimated net proved reserves were 4,498 million barrels of oil equivalent (MMBoe), of which 1,756 million barrels (MMBbl) were crude oil and condensate reserves, 1,254 MMBbl were NGLs reserves and 8,930 billion cubic feet (Bcf), or 1,488 MMBoe, were natural gas reserves (see "Supplemental Information to Consolidated Financial Statements").
At December 31, 2024, EOG's total estimated net proved reserves were 4,748 million barrels of oil equivalent (MMBoe), of which 1,870 million barrels (MMBbl) were crude oil and condensate reserves, 1,358 MMBbl were NGLs reserves and 9,122 billion cubic feet (Bcf), or 1,520 MMBoe, were natural gas reserves (see "Supplemental Information to Consolidated Financial Statements").
Due to the many uncertainties associated with the world political and economic environment (for example, the actions of other crude oil exporting nations, including the Organization of Petroleum Exporting Countries, or the global impacts of wars or military conflicts involving such nations or regions), the global supply of, and demand for, crude oil, NGLs and natural gas and the availability of other energy supplies, the relative competitive relationships of the various energy sources in the view of consumers and other factors, EOG is unable to predict what changes may occur in the prices of crude oil and condensate, NGLs and natural gas in the future.
Fluctuations in average natural gas prices received by EOG for production in the United States resulted in a 26% decrease in 2024, a 63% decrease in 2023, and a 49% increase in 2022, each as compared to the immediately preceding year. 11 Due to the many uncertainties associated with the world political and economic environment (for example, the actions of other crude oil exporting nations, including the Organization of Petroleum Exporting Countries, or the global impacts of wars or military conflicts involving such nations or regions), the global supply of, and demand for, crude oil, NGLs and natural gas and the availability of other energy supplies, the relative competitive relationships of the various energy sources in the view of consumers and other factors, EOG is unable to predict what changes may occur in the prices of crude oil and condensate, NGLs and natural gas in the future.
At December 31, 2023, EOG was committed to deliver to multiple parties fixed quantities of natural gas of 371 Bcf in 2024, 282 Bcf in 2025, 297 Bcf in 2026, 293 Bcf in 2027, 263 Bcf in 2028 and 3,277 Bcf thereafter, all of which is expected to be sourced from future production of available reserves.
At December 31, 2024, EOG was committed to deliver to multiple parties aggregate fixed quantities of natural gas of 342 Bcf in 2025, 318 Bcf in 2026, 359 Bcf in 2027, 328 Bcf in 2028, 328 Bcf in 2029 and 3,474 Bcf thereafter, all of which is expected to be sourced from future production of available reserves.
See Note 12 to Consolidated Financial Statements. For a summary of EOG's financial commodity derivative contracts through February 16, 2024, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations ‑ Capital Resources and Liquidity - Financial Commodity Derivative Transactions.
For a summary of EOG's financial commodity and other derivative contracts through February 21, 2025, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources and Liquidity - Financial Commodity and Other Derivative Transactions.
Crude oil and natural gas production operations are subject to various types of regulation, including regulation by federal and state agencies. United States legislation affecting the oil and gas industry is under constant review for amendment or expansion.
Crude oil and natural gas production operations are subject to various types of regulation, including regulation by federal and state agencies. United States legislation affecting the oil and gas industry is regularly reviewed, expanded and/or revised by lawmakers.
In 2024, EOG expects to complete approximately 145 net Eagle Ford play wells and 25 net Dorado wells, as well as completing major infrastructure projects to connect the Dorado gas play to the Agua Dulce gas market near Corpus Christi, Texas. Activity in the Rocky Mountain area in 2023 was focused on the Wyoming Powder River Basin.
In 2025, EOG expects to complete approximately 120 net Eagle Ford play wells and 25 net Dorado gas play wells, while utilizing new infrastructure that connects the Dorado gas play to the Agua Dulce gas market near Corpus Christi, Texas. Activity in the Rocky Mountain area in 2024 was focused on the Wyoming Powder River Basin.
He also previously served as Manager, Division Exploration in EOG's Fort Worth, Texas, and Midland, Texas, offices from March 2012 to May 2014 as well as in various geoscience and leadership positions. Mr. Yacob joined EOG in August 2005. Lloyd W. Helms, Jr. was elected President in October 2021.
He also previously served as Manager, Division Exploration in EOG's Fort Worth, Texas, and Midland, Texas, offices from March 2012 to May 2014 as well as in various geoscience and leadership positions. Mr. Yacob joined EOG in August 2005. Jeffrey R. Leitzell was elected Executive Vice President and Chief Operating Officer in December 2023. Mr.
Yacob 47 Chairman of the Board and Chief Executive Officer Lloyd W. Helms, Jr. 66 President Jeffrey R. Leitzell 44 Executive Vice President and Chief Operating Officer Ann D. Janssen 59 Executive Vice President and Chief Financial Officer Michael P. Donaldson 61 Executive Vice President, General Counsel and Corporate Secretary Ezra Y.
Yacob 48 Chairman of the Board and Chief Executive Officer Jeffrey R. Leitzell 45 Executive Vice President and Chief Operating Officer Ann D. Janssen 60 Executive Vice President and Chief Financial Officer Michael P. Donaldson 62 Executive Vice President, General Counsel and Corporate Secretary Ezra Y.
Further, as reflected in its Code of Business Conduct and Ethics for Directors, Officers and Employees, EOG is committed to providing equal opportunity in all aspects of employment and to hiring, evaluating and promoting employees based on skills and performance. Safety . EOG's safety management programs and processes provide a framework for assessing safety performance in a systematic way.
Further, as reflected in its Code of Business Conduct and Ethics for Directors, Officers and Employees, EOG is committed to providing equal opportunity in all aspects of employment and to hiring, evaluating and promoting employees based on skills and performance. Compensation, Benefits, Health & Wellness .
EOG values attracting and retaining talent, and so it provides competitive salaries, bonuses and a subsidized, comprehensive benefits package. EOG also offers a holistic wellness program, a matching gifts program, a flexible work schedule, paid family care leave, paid leave for illness or injury and an employee assistance program to support the mental well-being of employees and their dependents.
EOG also offers a holistic wellness program, a matching gifts program, a flexible work schedule, paid family care leave, paid leave for illness or injury, paid volunteer time and an employee assistance program to support the mental well-being of employees and their dependents.
It should also be noted that the oil and gas industry historically has been very heavily regulated; therefore, there is no assurance that the approach currently being followed by such legislative bodies and regulatory commissions, agencies, councils and courts will remain unchanged. 8 Environmental Regulation Generally - United States.
EOG cannot predict when or whether any such proposals or proceedings may become effective. It should also be noted that the oil and gas industry historically has been very heavily regulated; therefore, there is no assurance that the approach currently being followed by such legislative bodies and regulatory commissions, agencies, councils and courts will remain unchanged.
In addition to the above-described risks, EOG's operations outside the United States are subject to certain risks, including the risk of increases in taxes and governmental royalties, changes in laws and policies governing the operations of foreign-based companies, expropriation of assets, unilateral or forced renegotiation, modification or nullification of existing contracts with governmental entities, currency restrictions and exchange rate fluctuations.
The indemnification and other risk allocation provisions included in such contracts are negotiated on a contract-by-contract basis and are each based on the particular circumstances of the services being provided and the anticipated operations. 12 In addition to the above-described risks, EOG's operations outside the United States are subject to certain risks, including: • increases in taxes and governmental royalties; • additional and potentially unfamiliar laws and policies governing the operations of foreign-based companies and changes in such laws and policies; • expropriation of assets; • unilateral or forced renegotiation, modification or nullification of existing contracts with governmental entities; and • currency restrictions and exchange rate fluctuations.
In 2023, EOG also sold crude oil at the Port of Corpus Christi for export to foreign destinations. In each case, the price received was based on market prices at that specific sales point or based on the price index applicable for that location. In 2024, the pricing mechanism for such production is expected to remain the same.
In each case, the price received was based on market prices at that specific sales point or based on the price index applicable for that location. In 2025, the pricing mechanism for such production is expected to remain the same.
In the event of a well control incident resulting in negative environmental effects, such operators extra expense coverage would be EOG's primary coverage, with the commercial general liability and excess liability coverage referenced above also providing certain coverage to EOG. All of EOG's drilling activities are conducted on a contractual basis with independent drilling contractors and other third-party service contractors.
In the event of a well control incident resulting in negative environmental effects, such operators extra expense coverage would be EOG's primary coverage, with the commercial general liability and excess liability coverage also providing certain coverage to EOG.
Losses and liabilities arising from such events could reduce EOG's revenues and increase costs to EOG to the extent not covered by insurance. 12 Insurance is maintained by EOG against some, but not all, of these risks in accordance with what EOG believes are customary industry practices and in amounts and at costs that EOG believes to be prudent and commercially practicable.
Insurance is maintained by EOG against many, but not all, of these risks in accordance with what EOG believes are customary industry practices and in amounts and at costs that EOG believes to be prudent and commercially practicable.
Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal penalties, including the assessment of monetary penalties, the imposition of investigatory and remedial obligations, the suspension or revocation of necessary permits, licenses and authorizations, the requirement that additional pollution controls be installed and the issuance of orders enjoining future operations or imposing additional compliance requirements.
Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal penalties, including the assessment of monetary penalties, the imposition of investigatory and remedial obligations, the suspension or revocation of necessary permits, licenses and authorizations, the requirement that additional pollution controls be installed and the issuance of orders enjoining future operations or imposing additional compliance requirements. 8 In addition, EOG has acquired certain oil and gas properties from third parties whose actions with respect to the management and disposal or release of hydrocarbons or other wastes were not under EOG's control.
EOG also maintains an active exploration program designed to extend fields and add new trends and resource plays to its already broad portfolio. 1 The following is a summary of wellhead volume statistics and net well completions for the year ended December 31, 2023, total net acres at December 31, 2023, and expected net well completions planned for 2024 for certain areas of EOG's United States operations. 2023 2024 Area of Operation Crude Oil & Condensate Volumes (MBbld) (1) Natural Gas Liquids Volumes (MBbld) (1) Natural Gas Volumes (MMcfd) (1) Total Net Acres (in thousands) Net Well Completions Expected Net Well Completions Delaware Basin 301.9 164.0 890 395 370 360 South Texas 126.0 32.4 436 1,155 200 170 Rocky Mountain 39.4 15.3 149 801 54 40 Other Areas 7.9 12.1 76 1,015 16 30 Total 475.2 223.8 1,551 3,366 640 600 (1) Thousand barrels per day or million cubic feet per day, as applicable.
EOG also maintains an active exploration program designed to extend fields and add new trends and resource plays to its already broad portfolio. 1 The following is a summary of volume statistics and net well completions for the year ended December 31, 2024, total net acres at December 31, 2024, and expected net well completions planned for 2025 for certain areas of EOG's United States operations. 2024 2025 Area of Operation Crude Oil & Condensate Volumes (MBbld) (1) Natural Gas Liquids Volumes (MBbld) (1) Natural Gas Volumes (MMcfd) (1) Total Net Acres (in thousands) Net Well Completions Expected Net Well Completions Delaware Basin 309.7 184.9 1,039 395 385 375 South Texas 124.4 30.8 448 1,272 181 145 Rocky Mountain 41.7 14.9 149 776 42 45 Other Areas 14.8 15.3 92 915 33 40 Total 490.6 245.9 1,728 3,358 641 605 (1) Thousand barrels per day or million cubic feet per day, as applicable.
In 2024, EOG expects to complete approximately 20 net Utica wells. 2 Operations Outside the United States EOG has operations offshore Trinidad and is making preparations to drill offshore Australia, as well as evaluating additional exploration, development and exploitation opportunities in these and other select international areas.
In 2025, EOG expects to complete approximately 30 net Utica wells. 2 Operations Outside the United States EOG has operations offshore Trinidad and is evaluating additional exploration, development and exploitation opportunities in other select international areas. In addition, EOG is executing an abandonment and reclamation program in Canada. Trinidad.
In 2024, such pricing mechanisms are expected to remain the same. In 2023, EOG also sold purity products at the Houston Ship Channel. In each case, the price received was based on market prices for that location and purity product. In 2024, such pricing mechanism is expected to remain the same.
In each case, the price received was based on market prices for that location and purity product. In 2025, the pricing mechanisms for NGL and purity products sales are expected to remain the same.
For a summary of EOG's financial commodity derivative contracts through February 16, 2024, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources and Liquidity - Financial Commodity Derivative Transactions. For a summary of EOG's financial commodity derivative contracts for the year ended December 31, 2023, see Note 12 to Consolidated Financial Statements.
For a summary of EOG's financial commodity and other derivative contracts through February 21, 2025, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations ‑ Capital Resources and Liquidity - Financial Commodity and Other Derivative Transactions.
EOG continues the process of exiting its Canada operations in the Horn River area in Northeast British Columbia. 3 Marketing In 2023, EOG continued its diversified approach to marketing its wellhead crude oil and condensate production.
EOG continues the process of exiting its Canada operations in the Horn River area in Northeast British Columbia. 3 Marketing In 2024, EOG continued its diversified approach to marketing its crude oil and condensate. The majority of EOG's United States crude oil and condensate production was transported by pipeline to downstream markets with the remainder sold into local markets.
The United States has established economy-wide targets of (i) reducing its net GHG emissions by 50-52 percent below 2005 levels by 2030 and (ii) achieving net zero GHG emissions economy-wide by no later than 2050. In December 2023, the first global stocktake, also known as the “UAE Consensus,” was issued at the COP 28 Conference.
The United States formally rejoined the Paris Conference in February 2021 and established economy-wide targets of (i) reducing its net GHG emissions by 50-52 percent below 2005 levels by 2030 and (ii) achieving net zero GHG emissions economy-wide by no later than 2050.
Several fields in the SECC, Modified U(a) Block, 4(a) Block, Banyan Field and Sercan Area have been developed and are producing natural gas and crude oil and condensate.
Several fields in the SECC Block, Modified U(a) Block, 4(a) Block and Banyan and Sercan Areas have been developed and are producing natural gas and crude oil and condensate. In 2024, EOG's net production in Trinidad averaged approximately 220 MMcfd of natural gas and approximately 0.8 MBbld of crude oil and condensate.
In the Dorado gas play, EOG has continued to delineate the Eagle Ford and Austin Chalk formations with excellent results. In 2023, EOG completed 172 net wells in the Eagle Ford play, and 28 net wells in the Dorado gas play. In addition, key infrastructure was added in order to lower operating costs and increase price realizations.
In 2024, EOG completed 160 net wells in the Eagle Ford play, and 21 net wells in the Dorado gas play. In addition, key gathering, processing and transportation infrastructure was added in order to lower operating costs and increase price realizations.
In 2023, EOG processed certain of its United States wellhead natural gas production, either at EOG-owned facilities or at third-party facilities, extracting NGLs. NGLs were sold at prevailing market prices, into either local markets or downstream locations. In certain instances, EOG exchanged its NGLs production for purity products received downstream, which were sold at prevailing market prices.
NGLs were sold at prevailing market prices, into either local markets or downstream locations. In certain instances, EOG exchanged its NGLs production for purity products received downstream, which were sold at prevailing market prices. In 2024, EOG also sold purity products at the Houston Ship Channel.
The majority of EOG's United States wellhead crude oil and condensate production was transported by pipeline to downstream markets with the remainder sold into local markets. Major U.S. sales areas accessed by EOG were at various locations along the U.S. Gulf Coast, including Houston and Corpus Christi, Texas; Cushing, Oklahoma; the Permian Basin and the Midwest.
Major U.S. sales areas accessed by EOG were at various locations along the U.S. Gulf Coast, including Houston and Corpus Christi, Texas; Cushing, Oklahoma; the Permian Basin and the Midwest. In 2024, EOG also sold crude oil at the Port of Corpus Christi for export to foreign destinations.
Such rules and regulations, among other things, require permits for the drilling of wells, regulate the spacing of wells, prevent the waste of natural gas through restrictions on flaring, require surety bonds for various exploration and production operations and regulate the calculation and disbursement of royalty payments (for federal and state leases), production taxes and ad valorem taxes. 7 A portion of EOG's oil and gas leases in New Mexico, North Dakota, Utah and Wyoming, as well as in other areas, are granted by the federal government and administered by the Bureau of Land Management (BLM) and/or the Bureau of Indian Affairs (BIA), both federal agencies.
Such rules and regulations, among other things, require permits for the drilling of wells, regulate the spacing of wells, prevent the waste of natural gas through restrictions on flaring, require surety bonds for various exploration and production operations and regulate the calculation and disbursement of royalty payments (for federal and state leases), production taxes and ad valorem taxes.
Any limitation or ban on permitting for oil and gas exploration and production activities on federal lands could have a material and adverse effect on EOG's operations, financial condition and results of operations. EOG's interests in offshore leases are de minimis.
From time to time, the U.S. Department of the Interior has also considered limiting or pausing new oil and natural gas leases on federal lands. Any limitation or ban on permitting for oil and gas exploration and production activities on federal lands could have a material and adverse effect on EOG's operations, financial condition and results of operations.
Risk Management. EOG engages in price risk management activities from time to time. These activities are intended to manage EOG's exposure to fluctuations in prices of crude oil, NGLs and natural gas. EOG utilizes financial commodity derivative instruments, primarily price swap, option, swaption, collar and basis swap contracts, as a means to manage this price risk.
For a summary of EOG's financial commodity and other derivative contracts for the year ended December 31, 2024, see Note 12 to Consolidated Financial Statements. Risk Management. EOG engages in price risk management activities from time to time. These activities are intended to manage EOG's exposure to fluctuations in prices of crude oil, NGLs and natural gas.
The UAE Consensus is an assessment of members’ collective efforts and achievements to reduce GHG emissions and adapt to the impacts of climate change. The UAE Consensus calls on parties, including the U.S., to contribute to the transitioning away from fossil fuels, reduce methane emissions, and increase renewable energy capacity, among other things, to achieve net zero emissions by 2050.
The UAE Consensus calls on parties, including the U.S., to contribute to the transitioning away from fossil fuels, reduce methane emissions, and increase renewable energy capacity, among other things, to achieve net zero emissions by 2050. In January 2025, the United States submitted formal notification to the United Nations that it intends to withdraw from the Paris Agreement.
In addition, many state and local officials have stated their intent to intensify efforts to uphold the commitments set forth in the international accord. EOG believes that its strategy to continue to improve its emissions performance is important for environmental, operational and economic reasons. EOG’s approach to reducing emissions from its operations remains operationally focused.
Pursuant to the terms of the Paris Agreement, the withdrawal will take effect on January 27, 2026. Nevertheless, state and local officials may continue efforts to uphold the commitments set forth in the international accord. EOG believes that its strategy to continue to improve its emissions performance is important for environmental, operational and economic reasons.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur ability to achieve our ESG-related targets and ambitions is subject to numerous factors and conditions, some of which are outside of our control and include evolving government regulation, potential revisions to emissions estimates as measurement technologies advance or due to changes in protocol or methodologies, the pace of changes in technology, the successful development and deployment of existing or new technologies and business solutions on a commercial scale, the availability, timing and cost of necessary equipment, goods, services and personnel, and the availability of requisite financing and federal and state incentive programs.
Biggest changeOur public disclosures and other statements related to these initiatives, targets and ambitions reflect our plans and expectations at the time such disclosures and statements are made and are not a guarantee the initiatives will be successfully developed, implemented and carried out or that the targets or ambitions will be achieved or achieved on the anticipated timelines or that, if achieved, will be sustained. 23 Our ability to achieve and, if achieved, sustain these targets and ambitions is subject to numerous factors and contingencies, some of which are outside of our control and include (among other commercial, operational, technological, financial, legal and regulatory factors and contingencies) evolving government regulation, the pace of changes in technology, the successful development and deployment of existing or new technologies and business solutions on a commercial scale, the availability, timing and cost of necessary equipment, goods, services and personnel, and the availability of requisite financing and federal and state incentive programs.
Reserve estimates depend on many interpretations and assumptions. Any significant inaccuracies in these interpretations and assumptions could cause the reported quantities of our reserves to be materially misstated. Estimating quantities of crude oil, NGLs and natural gas reserves and future net cash flows from such reserves is a complex, inexact process.
Reserve estimates depend on many interpretations and assumptions. Any significant inaccuracies in these interpretations and assumptions could cause the reported quantities of our reserves to be materially misstated. Estimating quantities of crude oil, NGLs and natural gas reserves and the future net cash flows from such reserves is a complex, inexact process.
These risks include, among other risks: • increases in taxes and governmental royalties; 25 • additional and potentially unfamiliar laws and policies governing the operations of foreign-based companies and changes in such laws and policies; • loss of revenue, loss of or damage to equipment, property and other assets and interruption of operations as a result of expropriation, nationalization, acts of terrorism, war, civil unrest and other political risks; • unilateral or forced renegotiation, modification or nullification of existing contracts with governmental entities; • difficulties enforcing our rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations; • competition from companies that have established strategic long-term positions or have strong governmental relationships in the foreign jurisdictions in which we operate; and • currency restrictions or exchange rate fluctuations.
These risks include, among other risks: • increases in taxes and governmental royalties; • additional and potentially unfamiliar laws and policies governing the operations of foreign-based companies and changes in such laws and policies; • loss of revenue, loss of or damage to equipment, property and other assets and interruption of operations as a result of expropriation, nationalization, acts of terrorism, war, civil unrest and other political risks; • unilateral or forced renegotiation, modification or nullification of existing contracts with governmental entities; • difficulties enforcing our rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations; • competition from companies that have established strategic long-term positions or have strong governmental relationships in the foreign jurisdictions in which we operate; and • currency restrictions or exchange rate fluctuations.
Such rules, regulations, policies and legislation may affect, among other things, (i) permitting for oil and gas drilling on state, tribal and federal lands, (ii) the leasing of state, tribal and federal lands for oil and gas development, (iii) the regulation and disclosure of greenhouse gas (GHG) emissions and/or other climate change-related matters associated with oil and gas operations, (iv) the use of hydraulic fracturing on state, tribal and federal lands, (v) the calculation of royalty payments in respect of oil and gas production from state, tribal and federal lands (including, but not limited to, an increase in applicable royalty percentages), (vi) U.S. federal income tax laws applicable to oil and gas exploration and production companies and (vii) the use of financial derivative instruments to hedge the financial impact of fluctuations in crude oil, NGLs and natural gas prices. 22 Further, such regulatory, legislative and policy changes may, among other things, result in additional permitting and disclosure requirements, additional operating restrictions and/or the imposition of various conditions and restrictions on drilling and completion operations or other aspects of our business, any of which could lead to operational delays, increased operating and compliance costs and/or other impacts on our business and operations and could materially and adversely affect our business, results of operations, financial condition and capital expenditures.
Such rules, regulations, policies and legislation may affect, among other things, (i) permitting for oil and gas drilling on state, tribal and federal lands, (ii) the leasing of state, tribal and federal lands for oil and gas development, (iii) the regulation and disclosure of greenhouse gas (GHG) emissions and/or other climate change-related matters associated with oil and gas operations, (iv) the use of hydraulic fracturing on state, tribal and federal lands, (v) the calculation of royalty payments in respect of oil and gas production from state, tribal and federal lands (including, but not limited to, an increase in applicable royalty percentages), (vi) U.S. federal income tax laws applicable to oil and gas exploration and production companies and (vii) the use of financial derivative instruments to hedge the financial impact of fluctuations in crude oil, NGLs and natural gas prices. 21 Further, such regulatory, legislative and policy changes may, among other things, result in additional permitting and disclosure requirements, additional operating restrictions and/or the imposition of various conditions and restrictions on drilling and completion operations or other aspects of our business, any of which could lead to operational delays, increased operating and compliance costs and/or other impacts on our business and operations and could materially and adversely affect our business, results of operations, financial condition and capital expenditures.
A portion of our crude oil, NGLs and natural gas production may be interrupted, or shut in, from time to time for various reasons, including, but not limited to, as a result of accidents, weather conditions, the unavailability of gathering, processing, compression, storage, transportation, refining, liquefaction or export facilities or equipment or field labor issues, or intentionally as a result of market conditions such as crude oil, NGLs or natural gas prices that we deem uneconomic.
A portion of our crude oil, NGLs and natural gas production may be interrupted, or shut in, from time to time for various reasons, including, but not limited to, as a result of accidents, weather conditions or natural disasters, the unavailability of gathering, processing, compression, storage, transportation, refining, liquefaction or export facilities or equipment or field labor issues, or intentionally as a result of market conditions such as crude oil, NGLs or natural gas prices that we deem uneconomic.
If any of these security breaches were to occur, we could suffer disruptions to our normal operations, including our drilling, completion, production and corporate functions, which could materially and adversely affect us in a variety of ways, including, but not limited to, the following: 26 • unauthorized access to, and release of, our business data, reserves information, strategic information or other sensitive or proprietary information, which could have a material and adverse effect on our ability to compete for oil and gas resources, or reduce our competitive advantage over other companies; • data corruption, communication interruption, or other operational disruptions during our drilling activities, which could result in our failure to reach the intended target or a drilling incident; • data corruption or operational disruptions of our production-related infrastructure, which could result in loss of production or accidental discharges; • unauthorized access to, and release of, personal information of our royalty owners, employees and vendors, which could expose us to allegations that we did not sufficiently protect such information; • a cybersecurity attack on a vendor or service provider, which could result in supply chain disruptions and could delay or halt our operations; • a cybersecurity attack on third-party gathering, transportation, processing, fractionation, refining, liquefaction or export facilities, which could result in reduced demand for our production or delay or prevent us from transporting and marketing our production, in either case resulting in a loss of revenues; • a cybersecurity attack involving commodities exchanges or financial institutions could slow or halt commodities trading, thus preventing us from marketing our production or engaging in hedging activities, resulting in a loss of revenues; • a deliberate corruption of our financial or operating data could result in events of non-compliance which could then lead to regulatory fines or penalties; • a cybersecurity attack on a communications network or power grid, which could cause operational disruptions resulting in a loss of revenues; and • a cybersecurity attack on our automated and surveillance systems, which could cause a loss of production and potential environmental hazards.
If any of these security breaches were to occur, we could suffer disruptions to our normal operations, including our drilling, completion, production and corporate functions, which could materially and adversely affect us in a variety of ways, including, but not limited to, the following: • unauthorized access to, and release of, our business data, reserves information, strategic information or other sensitive or proprietary information, which could have a material and adverse effect on our ability to compete for oil and gas resources, or reduce our competitive advantage over other companies; • data corruption, communication interruption, or other operational disruptions during our drilling activities, which could result in our failure to reach the intended target or a drilling incident; • data corruption or operational disruptions of our production-related infrastructure, which could result in loss of production or accidental discharges; • unauthorized access to, and release of, personal information of our royalty owners, employees and vendors, which could expose us to allegations that we did not sufficiently protect such information; • a cyber attack on a vendor or service provider, which could result in supply chain disruptions and could delay or halt our operations; • a cyber attack on third-party gathering, transportation, processing, fractionation, refining, liquefaction or export facilities, which could result in reduced demand for our production or delay or prevent us from transporting and marketing our production, in either case resulting in a loss of revenues; • a cyber attack involving commodities exchanges or financial institutions could slow or halt commodities trading, thus preventing us from marketing our production or engaging in hedging activities, resulting in a loss of revenues; • a deliberate corruption of our financial or operating data could result in events of non-compliance which could then lead to regulatory fines or penalties; • a cyber attack on a communications network or power grid, which could cause operational disruptions resulting in a loss of revenues; and • a cyber attack on our automated and surveillance systems, which could cause a loss of production and potential environmental hazards.
We compete with major integrated oil and gas companies, government-affiliated oil and gas companies and other independent oil and gas companies for the acquisition of licenses and leases, properties and reserves and access to the facilities, equipment, materials, services and employees and other personnel (including geologists, geophysicists, engineers and other specialists) necessary to explore for, develop, produce, market and transport crude oil, NGLs and natural gas.
We compete with major integrated oil and gas companies, government-affiliated oil and gas companies and other independent oil and gas companies for the acquisition of licenses, concessions and leases, properties and reserves and access to the facilities, equipment, materials, services and employees and other personnel (including geologists, geophysicists, engineers and other specialists) necessary to explore for, develop, produce, market and transport crude oil, NGLs and natural gas.
Our systems and networks, and those of our business associates, may become the target of cybersecurity attacks, including, without limitation, denial-of-service attacks; malicious software; data privacy breaches by employees, insiders or others with authorized access; cyber or phishing-attacks; ransomware; attempts to gain unauthorized access to our data and systems; and other electronic security breaches.
Our systems and networks, and those of our business associates, may become the target of cyber attacks, including, without limitation, denial-of-service attacks; malicious software; data privacy breaches by employees, insiders or others with authorized access; phishing attacks; ransomware; attempts to gain unauthorized access to our data and systems; and other electronic security breaches.
Specifically, we often are uncertain as to the future cost or timing of drilling, completing and operating wells, and our drilling and completions operations and those of our third-party operators may be curtailed, delayed or canceled, the cost of such operations may increase and/or our results of operations and cash flows from such operations may be impacted, as a result of a variety of factors, including: • unexpected drilling conditions; • leasehold title problems; • pressure or irregularities in formations; • equipment failures or accidents; • adverse weather conditions, such as winter storms, flooding, tropical storms and hurricanes, and changes in weather patterns, which may be exacerbated by climate change; • compliance with, or changes in (including the adoption of new), environmental, health and safety laws and regulations relating to air emissions, hydraulic fracturing, access to and use of water, disposal or other discharge (e.g., into injection wells) of produced water, drilling fluids and other wastes, laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas, and other laws and regulations, such as tax laws and regulations; • the availability and timely issuance of required federal, state, tribal and other permits and licenses, which may be adversely affected by (among other things) bans or restrictions on drilling, government shutdowns or other suspensions of, or delays in, government services; • the availability of, costs associated with, and terms of contractual arrangements for properties, including mineral licenses and leases, pipelines, crude oil hauling trucks and qualified drivers and facilities and equipment to gather, process, compress, store, transport, market and export crude oil, NGLs and natural gas and related commodities; and • the costs of, or shortages or delays in the availability of, drilling rigs, hydraulic fracturing services, pressure pumping equipment and supplies, tubular materials, water, sand, disposal facilities, qualified personnel and other necessary facilities, equipment, materials, supplies and services.
Specifically, we often are uncertain as to the future cost or timing of drilling, completing and operating wells, and our drilling and completions operations and those of our third-party operators may be curtailed, delayed or canceled, the cost of such operations may increase and/or our results of operations and cash flows from such operations may be impacted, as a result of a variety of factors, including: • unexpected drilling conditions; • leasehold title problems; • pressure or irregularities in formations; • equipment failures or accidents; • adverse weather events, such as winter storms, flooding, wildfires, tropical storms and hurricanes, and other natural disasters, which may be exacerbated by climate change; • compliance with, or changes in (including the adoption of new), environmental, health and safety laws and regulations relating to air emissions, hydraulic fracturing, access to and use of water, disposal or other discharge (e.g., into injection wells) of produced water, drilling fluids and other wastes, laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas, and other laws and regulations, such as tax laws and regulations; • the availability and timely issuance of required federal, state, tribal and other permits and licenses, which may be adversely affected by (among other things) bans or restrictions on drilling, government shutdowns or other suspensions of, or delays in, government services; • the availability of, costs associated with, and terms of contractual arrangements for properties, including mineral licenses and leases, pipelines, crude oil hauling trucks and qualified drivers and facilities and equipment to gather, process, compress, store, transport, market and export crude oil, NGLs and natural gas and related commodities; and • the costs of, or shortages or delays in the availability of, drilling rigs, hydraulic fracturing services, pressure pumping equipment and supplies, tubular materials, water, sand, disposal facilities, qualified personnel and other necessary facilities, equipment, materials, supplies and services.
Maintaining our production of crude oil, NGLs and natural gas at, or increasing our production from, current levels, is, therefore, highly dependent upon our level of success in acquiring or finding additional reserves, which may be adversely impacted by bans or restrictions on leasing and/or drilling.
Maintaining our production of crude oil, NGLs and natural gas at, or increasing our production from, current level, is, therefore, highly dependent upon our level of success in acquiring or finding additional reserves, which may be adversely impacted by bans or restrictions on leasing and/or drilling.
If our ESG-related initiatives, targets and ambitions do not meet our investors' or other stakeholders' evolving expectations and standards, investment in our stock may be viewed as less attractive and our reputation and contractual, employment and other business relationships may be adversely impacted.
If our related initiatives, targets and ambitions do not meet our investors' or other stakeholders' evolving expectations and standards, investment in our stock may be viewed as less attractive and our reputation and contractual, employment and other business relationships may be adversely impacted.
If a substantial amount of our production is interrupted or shut in, our cash flows and, in turn, our financial condition and results of operations could be materially and adversely affected. 20 Our operations are substantially dependent upon the availability of water.
If a substantial amount of our production is interrupted or shut in, our cash flows and, in turn, our financial condition and results of operations could be materially and adversely affected. Our operations are substantially dependent upon the availability of water.
Among the interrelated factors that can or could cause these price fluctuations are: • domestic and worldwide supplies of, and consumer and industrial/commercial demand for, crude oil, NGLs and natural gas; • domestic and international drilling activity; • the actions of other crude oil producing and exporting nations, including the Organization of Petroleum Exporting Countries; • worldwide economic conditions, geopolitical factors and political conditions, including, but not limited to, the imposition of tariffs or trade or other economic sanctions, political instability or armed conflict in oil and gas producing regions; • the duration and economic and financial impact of epidemics, pandemics or other public health issues, such as the COVID-19 pandemic; • the availability, proximity and capacity of appropriate transportation, gathering, processing, compression, storage, refining, liquefaction and export facilities; • the price and availability of, and demand for, competing energy sources, including alternative energy sources; • the effect of worldwide energy conservation measures, alternative fuel requirements and climate change-related legislation, policies, initiatives and developments; • technological advances and consumer and industrial/commercial behavior, preferences and attitudes, in each case affecting energy generation, transmission, storage and consumption; • the nature and extent of governmental regulation, including environmental and other climate change-related regulation, regulation of financial derivative transactions and hedging activities, tax laws and regulations and laws and regulations with respect to the import and export of crude oil, NGLs, and natural gas and related commodities; • the level and effect of trading in commodity futures markets, including trading by commodity price speculators and others; and • natural disasters, weather conditions and changes in weather patterns.
Among the interrelated factors that can or could cause these price fluctuations are: • domestic and worldwide supplies of, and consumer and industrial/commercial demand for, crude oil, NGLs and natural gas; • domestic and international drilling activity; • the actions of other crude oil producing and exporting nations, including the Organization of Petroleum Exporting Countries; • worldwide economic conditions, geopolitical factors and political conditions, including, but not limited to, the imposition of tariffs or trade or other economic sanctions and political instability or armed conflict in oil and gas producing regions; • the availability, proximity and capacity of appropriate transportation, gathering, processing, compression, storage, refining, liquefaction and export facilities; • the price and availability of, and demand for, competing energy sources, including alternative energy sources; • the effect of worldwide energy conservation measures, alternative fuel requirements and climate change-related legislation, policies, initiatives and developments; • technological advances and consumer and industrial/commercial behavior, preferences and attitudes, in each case affecting energy generation, transmission, storage and consumption; • the nature and extent of governmental regulation, including environmental and other climate change-related regulation, regulation of financial and other derivative transactions and hedging activities, tax laws and regulations and laws and regulations with respect to the import and export of crude oil, NGLs, and natural gas and related commodities; • the level and effect of trading in commodity futures markets, including trading by commodity price speculators and others; • natural disasters, weather conditions and changes in weather patterns, each of which may be exacerbated by climate change; and • the economic and financial impact of epidemics, pandemics or other public health issues, such as the COVID-19 pandemic.
Although we have implemented and invested in, and will continue to implement and invest in, controls, procedures and protections (including internal and external personnel) that are designed to protect our systems, identify and remediate on a regular basis vulnerabilities in our systems and related infrastructure and monitor and mitigate the risk of data loss and other cybersecurity threats, such measures cannot entirely eliminate cybersecurity threats and the controls, procedures and protections we have implemented and invested in may prove to be ineffective.
Although we have implemented and invested in, and will continue to implement and invest in, controls, procedures and protections (including internal and external personnel) that are designed to protect our systems, identify and remediate on a regular basis vulnerabilities in our systems and related infrastructure and monitor and mitigate the risk of data loss and other cyber threats, such measures cannot entirely eliminate cyber threats and the controls, procedures and protections we have implemented and invested in may prove to be ineffective.
Further, strategic targets, such as energy-related assets, may be at a greater risk of terrorist attacks or cybersecurity attacks than other targets in the United States. Moreover, external digital technologies control nearly all of the crude oil and natural gas distribution systems in the U.S. and abroad, which are necessary to transport and market our production.
Further, strategic targets, such as energy-related assets, may be at a greater risk of terrorist attacks or cyber attacks than other targets in the United States. Moreover, external digital technologies control nearly all of the crude oil and natural gas distribution systems in the U.S. and abroad, which are necessary to transport and market our production.
Further, as technologies evolve and cybersecurity threats become more sophisticated, we are continually expending additional resources to modify or enhance our security measures to protect against such threats and to identify and remediate on a regular basis any vulnerabilities in our information systems and related infrastructure that may be detected, and these expenditures in the future may be significant.
Further, as technologies evolve and cyber threats become more sophisticated, we are continually expending additional resources to modify or enhance our security measures to protect against such threats and to identify and remediate on a regular basis any vulnerabilities in our information systems and related infrastructure that may be detected, and these expenditures in the future may be significant.
To the extent that we engage in hedging activities to protect ourselves against commodity price declines, we may be prevented from fully realizing the benefits of increases in crude oil, NGLs and natural gas prices above the prices established by our hedging contracts. Further, a majority of our forecasted production for 2024 is subject to fluctuating market prices.
To the extent that we engage in hedging activities to protect ourselves against commodity price declines, we may be prevented from fully realizing the benefits of increases in crude oil, NGLs and natural gas prices above the prices established by our hedging contracts. Further, a majority of our forecasted production for 2025 is subject to fluctuating market prices.
As an oil and gas producer, we face various security threats, including (i) cybersecurity threats to gain unauthorized access to, or control of, our sensitive information or to render our data or systems corrupted or unusable; (ii) threats to the security of our facilities and infrastructure or to the security of third-party facilities and infrastructure, such as gathering, transportation, processing, fractionation, refining, liquefaction and export facilities; and (iii) threats from terrorist acts.
As an oil and gas producer, we face various security threats, including (i) cyber threats to gain unauthorized access to, or control of, our sensitive information or to render our data or systems corrupted or unusable; (ii) threats to the security of our facilities and infrastructure or to the security of third-party facilities and infrastructure, such as gathering, transportation, processing, fractionation, refining, liquefaction and export facilities; and (iii) threats from terrorist acts.
We cannot provide any assurance that our current credit ratings will remain in effect for any given period of time or that our credit ratings will be raised in the future, nor can we provide any assurance that any of our credit ratings will not be lowered. 16 In addition, companies in the oil and gas sector may be exposed to increasing reputational risks and, in turn, certain financial risks.
We cannot provide any assurance that our current credit ratings will remain in effect for any given period of time or that our credit ratings will be raised in the future, nor can we provide any assurance that any of our credit ratings will not be lowered. 15 In addition, companies in the oil and gas sector may be exposed to increasing reputational risks and, in turn, certain financial risks.
Further, additional financial institutions and other investors may elect to do likewise in the future or may impose more stringent conditions with respect to investments in, and financing of, oil and gas-related sectors. As a result, fewer financial institutions and other investors may be willing to invest in, and provide capital to, companies in the oil and gas sector.
Additional financial institutions and other investors may elect to do likewise or may impose more stringent conditions with respect to investments in, and financing of, oil and gas-related sectors. As a result, fewer financial institutions and other investors may be willing to invest in, and provide capital to, companies in the oil and gas sector.
Substantial and extended declines in the prices of these commodities can render uneconomic a portion of our exploration, development and exploitation projects, resulting in our having to make downward adjustments to our estimated reserves and also possibly shut in or plug and abandon certain wells.
Substantial and extended declines in the prices of these commodities can render uneconomic a portion of our exploration, development and exploitation projects, resulting in our having to make downward adjustments (“write-downs”) to our estimated reserves and also possibly shut in, or plug and abandon, certain wells.
As a result, the trading price of our common stock may be materially and adversely affected. 15 Lower commodity prices can also reduce the amount of crude oil, NGLs and natural gas that we can produce economically.
As a result, the trading price of our common stock may be materially and adversely affected. 14 Lower commodity prices can also reduce the amount of crude oil, NGLs and natural gas that we can produce economically.
To the extent we do not hedge our production volumes for 2024 and beyond, we may be materially and adversely impacted by any declines in commodity prices, which may result in lower net cash provided by our operating activities.
To the extent we do not hedge our production volumes for 2025 and beyond, we may be materially and adversely impacted by any declines in commodity prices, which may result in lower net cash provided by our operating activities.
Regular and special dividends on our common stock are authorized and determined by our Board in its sole discretion and depend upon a number of factors, including: • cash available for dividends; • our results of operations and anticipated future results of operations; 17 • our financial condition, especially in relation to the anticipated future capital expenditures and other commitments required to conduct our operations and carry out our business strategy; • our operating costs; • any contractual restrictions or statutory/legal restrictions; • the levels of dividends paid by comparable companies; and • other factors our Board deems relevant.
Regular and special dividends on our common stock and repurchases of our common stock are authorized and determined by our Board in its sole discretion and depend upon a number of factors, including: • cash available for dividends; • cash available for share repurchases; • our results of operations and anticipated future results of operations; 16 • our financial condition, especially in relation to the anticipated future capital expenditures and other commitments required to conduct our operations and carry out our business strategy; • our operating costs; • any contractual restrictions or statutory/legal restrictions; • the levels of dividends paid by comparable companies; and • other factors our Board deems relevant.
Beginning in the second half of 2021 and continuing, to a lesser degree, through the first three months of 2023, we, similar to other companies in our industry, experienced inflationary pressures on our operating costs and capital expenditures - namely the costs of fuel, steel (i.e., wellbore tubulars and facilities manufactured using steel), labor and drilling and completion services.
Beginning in the second half of 2021 and continuing, to a lesser degree, through the first quarter of 2023, we, similar to other companies in our industry, experienced inflationary pressures on our operating costs and capital expenditures - namely the costs of fuel, steel (i.e., wellbore tubulars and facilities manufactured using steel), labor and drilling and completion services.
For further discussion of the potential impact of such availability-related risks on our financial condition and results of operations, see the discussion in the section above entitled "Risks Related to our Operations." Further, climate change-related developments (such as extensive climate-related disclosure requirements as referenced above) may result in negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, hydrocarbons.
For further discussion of the potential impact of such availability-related risks on our financial condition and results of operations, see the discussion in the section above entitled "Risks Related to our Operations." Further, climate change-related developments (such as the climate-related disclosure mandates as referenced above) may result in negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, hydrocarbons.
Any significant variance, including any significant downward revisions to our existing reserve estimates, could materially and adversely affect our business, financial condition and results of operations and, in turn, the trading price of our common stock.
Any significant variance, including any significant downward revisions (“write-downs”) to our existing reserve estimates, could materially and adversely affect our business, financial condition and results of operations and, in turn, the trading price of our common stock.
Our crude oil, NGLs and natural gas operations and supporting activities and operations are subject to all of the risks associated with exploring and drilling for, and producing, gathering, processing, compressing, storing, transporting and exporting crude oil, NGLs and natural gas, including the risks of: • well blowouts and cratering; • loss of well control; • crude oil spills, natural gas leaks, formation water (i.e., produced water) spills and pipeline ruptures; • pipe failures and casing collapses; • uncontrollable flows of crude oil, natural gas, formation water or drilling fluids; • releases of chemicals, wastes or pollutants; • adverse weather events, such as winter storms, flooding, tropical storms and hurricanes, and other natural disasters, which may be exacerbated by climate change; • fires and explosions; • terrorism, vandalism and physical, electronic and cybersecurity breaches; • formations with abnormal or unexpected pressures; 19 • leaks or spills in connection with, or associated with, the gathering, processing, compression, storage, transportation and export of crude oil, NGLs and natural gas; and • malfunctions of, or damage to, gathering, processing, compression, storage, transportation and export facilities and equipment and other facilities and equipment utilized in support of our crude oil and natural gas operations.
Our crude oil, NGLs and natural gas operations and supporting activities and operations are subject to all of the risks associated with exploring and drilling for, and producing, gathering, processing, compressing, storing, transporting and exporting crude oil, NGLs and natural gas, including the risks of: • well blowouts and cratering; • loss of well control; • crude oil spills, natural gas leaks, formation water (i.e., produced water) spills and pipeline ruptures; • pipe failures and casing collapses; • uncontrollable flows of crude oil, natural gas, formation water or drilling fluids; • releases of chemicals, wastes or pollutants; • adverse weather events, such as winter storms, flooding, wildfires, tropical storms and hurricanes, and other natural disasters, which may be exacerbated by climate change; 18 • fires and explosions; • terrorism, vandalism and physical, electronic and cyber breaches and related threats; • formations with abnormal or unexpected pressures; • leaks or spills in connection with, or associated with, the gathering, processing, compression, storage, transportation and export of crude oil, NGLs and natural gas; and • malfunctions of, or damage to, gathering, processing, compression, storage, transportation and export facilities and equipment and other facilities and equipment utilized in support of our crude oil and natural gas operations.
The above-described factors and the volatility of commodity prices make it difficult to predict crude oil, NGLs and natural gas prices in 2024 and thereafter.
The above-described factors and the volatility of commodity prices make it difficult to predict crude oil, NGLs and natural gas prices in 2025 and thereafter.
We have undertaken, and plan to continue with, certain initiatives and actions (such as agreements with service providers to secure the costs and availability of services) to mitigate any such inflationary pressures.
We have undertaken, and plan to continue with, certain initiatives and actions (such as agreements with service providers to secure the costs and availability of services) to mitigate any future inflationary pressures (such as from tariffs).
For further discussion regarding the November 2021 Authorization and our share repurchases thereunder, see ITEM 5, “Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” below.
For further discussion regarding the Share Repurchase Authorization and our share repurchases thereunder, see ITEM 5, “Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” below.
We expect to continue to pay dividends to our stockholders; however, our Board may reduce our dividends or cease declaring dividends at any time, including if it determines that our current or forecasted future cash flows provided by our operating activities (after deducting our capital expenditures and other commitments requiring cash) are not sufficient to pay our desired levels of dividends to our stockholders or to pay dividends to our stockholders at all.
Accordingly, our Board may reduce our dividends or cease declaring dividends at any time, including if it determines that our current or forecasted future cash flows provided by our operating activities (after deducting our capital expenditures and other commitments requiring cash) are not sufficient to pay our desired levels of dividends to our stockholders or to pay dividends to our stockholders at all.
We also face competition from competing energy sources, such as renewable energy sources. 21 Risks Related to ESG/Sustainability, Regulatory and Legal Matters Developments and concerns related to climate change may have a material and adverse effect on us. Governmental and regulatory bodies, investors, consumers, industry and other stakeholders have been increasingly focused on climate change matters in recent years.
We also face competition from alternative energy sources, such as renewable energy sources. 20 Risks Related to Sustainability, Regulatory and Legal Matters Developments and concerns related to climate change may have a material and adverse effect on us. Governmental and regulatory bodies, investors, consumers, industry and other stakeholders have been increasingly focused on climate change matters in recent years.
We have developed, and will continue to develop, targets and ambitions related to our environmental, social and governance (ESG) initiatives, including, but not limited to, our emissions reduction targets and our ambition to reach net zero Scope 1 and Scope 2 GHG emissions by 2040.
We have developed, and will continue to develop, targets and ambitions related to our environmental and safety initiatives, including, but not limited to, our emissions reduction targets and our ambition to reach net-zero Scope 1 and Scope 2 GHG emissions by 2040.
Also, the data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history, continual reassessment of the viability of production under varying economic conditions and improvements and other changes in geological, geophysical and engineering evaluation methods.
Also, the data for a given reservoir may also change substantially over time as a result of numerous factors, including, but not limited to, additional development activity, evolving production history, crude oil and condensate, NGLs and natural gas prices, continual reassessment of the viability of production under varying economic conditions and improvements and other changes in geological, geophysical and engineering evaluation methods.
(i.e., foreign) taxes (including the imposition of, or increases in, production, severance or similar taxes or the enactment of a global minimum tax or similar tax), could, if adopted, materially and adversely affect our business, cash flows, results of operations and financial condition.
(i.e., foreign) taxes (including the imposition of, or increases in, production, severance or similar taxes or the enactment of a GMT or similar tax), could materially and adversely affect our business, cash flows, results of operations and financial condition.
In addition, the pursuit and achievement of our current or future initiatives, targets and ambitions relating to the reduction of GHG emissions may increase our costs, including requiring us to purchase emissions credits or offsets, the availability and price of which are outside of our control, and may impact or otherwise limit our ability to execute on our business strategy.
In addition, the pursuit and achievement of our current or future initiatives, targets and ambitions relating to the reduction of GHG emissions and other environmental or safety-related initiatives may increase our costs – for example, by requiring us to purchase emissions credits or offsets, the availability and price of which are outside of our control - and may impact or otherwise limit our ability to execute on our business strategy.
Many of these factors are or may be beyond our control. Our actual reserves and future net cash flows from such reserves most likely will vary from our estimates.
Many of these factors are or may be beyond our control. The quantities of reserves ultimately recovered and the future net cash flows from such reserves most likely will vary from our estimates.
In addition, significant prolonged decreases in commodity prices may cause the expected future cash flows from our properties to fall below their respective net book values, which would require us to write down the value of our properties.
In addition, significant prolonged decreases in commodity prices may cause the expected future cash flows from our properties to fall below their respective net book values, which would require us to recognize an impairment expense in respect of the value of our properties.
For example, (i) in March 2022, the U.S.
For example, (i) in March 2024, the U.S.
While we have experienced limited cybersecurity incidents in the past, we have not had, to date, any business interruptions or material losses from breaches of cybersecurity. However, there is no assurance that we will not suffer any such interruptions or losses in the future.
While we have experienced limited cyber incidents in the past, we have not had, to date, any business interruptions or material losses from breaches of our information technology systems and related infrastructure. However, there is no assurance that we will not suffer any such interruptions or losses in the future.
Beginning in March 2023, we have repurchased shares from time to time under the November 2021 Authorization.
Beginning in March 2023, we have repurchased shares from time to time under the Share Repurchase Authorization.
For additional discussion regarding the regulation of GHG emissions and climate change generally, see ITEM 1, Business – Regulation. Our initiatives, targets and ambitions related to emissions and other ESG matters, including our related public statements and disclosures, may expose us to certain risks.
For additional discussion regarding the regulation of GHG emissions and climate change generally, see ITEM 1, Business – Regulation. Our initiatives, targets and ambitions related to emissions and other environmental or safety-related matters, including our related public statements and disclosures, are subject to various factors, contingencies and uncertainties and may expose us to certain risks.
EPA’s new source performance standards applicable to emissions of volatile organic compounds from new, modified and reconstructed crude oil and natural gas wells and equipment located at natural gas production gathering and booster stations and gas processing plants, as well as the U.S. EPA’s final new methane rules announced in December 2023.
In addition, our oil and gas production and processing operations are subject to the U.S. EPA’s new source performance standards applicable to emissions of volatile organic compounds from new, modified and reconstructed crude oil and natural gas wells and equipment located at natural gas production gathering and booster stations and gas processing plants, as well as the U.S.
In addition to climate change, there is increasing investor and regulatory attention and focus on topics such as diversity and inclusion, human rights and human capital management, in companies’ own operations as well as across their supply chains.
In addition to climate change, there has been increased investor and regulatory focus on topics such as human rights and human capital management in companies' own operations as well as across their supply chains.
We rely extensively on information technology systems, including internally developed software, data hosting platforms, real-time data acquisition systems, third-party software, cloud services and other internally or externally hosted hardware and software platforms, to (i) estimate our oil and gas reserves, (ii) process and record financial and operating data, (iii) process and analyze all stages of our business operations, including exploration, drilling, completions, production, gathering and processing, transportation, pipelines and other related activities and (iv) communicate with our employees and vendors, suppliers and other third parties.
The potential for such security threats has subjected our operations to increased risks that could have a material and adverse effect on our business. 25 We rely extensively on information technology systems, including internally developed software, data hosting platforms, real-time data acquisition systems, third-party software, cloud services and other internally or externally hosted hardware and software platforms, to (i) estimate our oil and gas reserves, (ii) process and record financial and operating data, (iii) process and analyze all stages of our business operations, including exploration, drilling, completions, production, gathering and processing, transportation, pipelines and other related activities and (iv) communicate with, and make payments to, our employees and vendors, suppliers and other third parties.
We make, and expect to continue to make, substantial capital expenditures for the acquisition, exploration, development and production of crude oil, NGLs and natural gas reserves.
We make, and expect to continue to make, substantial capital expenditures for the acquisition, exploration, development and production of crude oil, NGLs and natural gas reserves as well as for the gathering, processing and transportation of our production volumes.
Additionally, the continuing and evolving threat of cybersecurity attacks has resulted in evolving legal and compliance matters, including increased regulatory focus on prevention and new disclosure requirements recently enacted by the SEC with respect to material cybersecurity incidents and cybersecurity risk management, strategy and governance, which could require us to expend significant additional resources to meet such requirements. 27 Outbreaks of communicable diseases can adversely affect our business, financial condition and results of operations.
Additionally, the continuing and evolving threat of cyber attacks has resulted in evolving legal and compliance matters, including increased regulatory focus on prevention and new disclosure requirements recently enacted by the SEC with respect to material cyber incidents and cyber risk management, strategy and governance, which could require us to expend significant additional resources to meet such requirements.
Specifically, certain financial institutions (including certain investment advisors and sovereign wealth, pension and endowment funds), in response to concerns related to climate change and the requests and other influence of environmental groups and similar stakeholders, have elected to shift some or all of their investments and financing away from oil and gas-related sectors; such trend may be accelerated by the extensive climate-related disclosure requirements discussed below.
For example, certain financial institutions, investment advisors and sovereign wealth, pension and endowment funds, in response to concerns related to climate change and the requests and other influence of environmental groups and similar stakeholders, have elected to shift some or all of their investments and financing away from oil and gas-related sectors.
Furthermore, if a customer is unable to satisfy its contractual obligation to purchase crude oil, natural gas or related commodities from us, we may be unable to sell such production to another customer on terms we consider acceptable, if at all, due to the geographic location of such production; the availability, proximity and capacity of appropriate gathering, processing, compression, storage, transportation, export, liquefaction and refining facilities; or market or other factors and conditions.
Furthermore, if a customer is unable to satisfy its contractual obligation to purchase crude oil, natural gas or related commodities from us, we may be unable to sell such production to another customer on terms we consider acceptable, if at all, due to the geographic location of such production; the availability, proximity and capacity of appropriate gathering, processing, compression, storage, transportation, export, liquefaction and refining facilities; or market or other factors and conditions. 17 The inability of our customers and other contractual counterparties to pay amounts owed to us and to otherwise satisfy their contractual obligations to us may materially and adversely affect our business, financial condition, results of operations and cash flows.
Any significant change in market or other conditions affecting gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment or the availability of these facilities and equipment, including due to our failure or inability to obtain access to these facilities and equipment on terms acceptable to us or at all, could materially and adversely affect our business and, in turn, our financial condition and results of operations.
Any significant change in market or other conditions affecting gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment or the availability of these facilities and equipment, including due to our failure or inability to obtain access to these facilities and equipment on terms acceptable to us or at all, could materially and adversely affect our business and, in turn, our financial condition and results of operations. 19 A portion of our crude oil, NGLs and natural gas production may be subject to interruptions that could have a material and adverse effect on us.
While such inflationary pressures diminished in 2023, the market for such materials, services and labor continues to fluctuate and, as a result, the timing and impact of any price changes on our future operating costs and capital expenditures is uncertain.
While such inflationary pressures diminished beginning in the second quarter of 2023 and throughout fiscal year 2024 (and, in certain instances, EOG has seen a decline in prices), the market for such materials, services and labor continues to fluctuate and, as a result, the timing and impact of any price changes on our future operating costs and capital expenditures is uncertain.
If any of these events occur, we could incur losses, liabilities and other additional costs as a result of: • injury or loss of life; • damage to, or destruction of, property, facilities, equipment and crude oil and natural gas reservoirs; • pollution or other environmental damage; • regulatory investigations and penalties as well as cleanup and remediation responsibilities and costs; • suspension or interruption of our operations, including due to injunction; • repairs necessary to resume operations; and • compliance with laws and regulations enacted as a result of such events.
If any of these events occur, we could incur losses, liabilities and other costs as a result of: • injury or loss of life; • damage to, or destruction of, property, facilities, equipment and crude oil and natural gas reservoirs; • pollution or other environmental damage; • regulatory investigations, penalties and injunctions as well as cleanup and remediation responsibilities and costs; • the lack of availability of, or access to, necessary third-party services and facilities, such as gathering, processing, compression, storage, transportation and export services and facilities; • loss of production due to temporary cessation of our operations (for example, to conduct repairs necessary to resume operations) or damage to necessary facilities and equipment; and • compliance with laws and regulations enacted as a result of such events.
Securities and Exchange Commission (SEC) proposed extensive climate-related disclosure requirements that, if adopted, would require U.S. public companies to significantly expand the climate-related disclosures in their SEC filings, (ii) in September 2023, California passed climate-related disclosure mandates which are broader than the SEC’s proposed rules and (iii) in November 2023, the European Union approved methane emissions limits on crude oil and natural gas imports beginning in 2030.
Securities and Exchange Commission (SEC) finalized extensive climate-related disclosure rules that require U.S. public companies to significantly expand the climate-related disclosures in their SEC filings (although the new rules have been stayed pending judicial review and the SEC has requested the court to pause further judicial proceedings, pending the SEC's determination of the appropriate next steps), (ii) in September 2023, California passed climate-related disclosure mandates which are broader than the SEC's final rules and (iii) in November 2023, the European Union approved methane emissions limits on crude oil and natural gas imports beginning in 2030.
Also, our continuing efforts to research, establish, accomplish and accurately report on our emissions and other ESG-related initiatives, targets and ambitions may create additional operational risks and expenses and expose us to reputational, legal and other risks. 24 Further, investor and regulatory focus on ESG matters continues to increase.
Also, our continuing efforts to research, establish, accomplish and accurately report on our emissions and other environmental or safety-related initiatives, targets and ambitions may create additional operational risks and expenses and expose us to reputational, legal and other risks. In addition, in recent years there has been increased investor and regulatory focus on environmental and social matters.
We are unable to predict the timing, scope and effect of any proposed or enacted tax law changes, but any such changes (if enacted) may materially and adversely affect our business.
Such price increases may, in turn, reduce demand for crude oil, NGLs and natural gas and materially and adversely affect our cash flows, results of operations and financial condition. We are unable to predict the timing, scope and effect of any proposed or enacted tax law changes, but any such changes (if enacted) may materially and adversely affect our business.
Risks Related to Cybersecurity, Outbreaks/Pandemics and Other External Factors Our business could be materially and adversely affected by security threats, including cybersecurity threats, and other disruptions.
The realization of any of these factors could materially and adversely affect our business, financial condition and results of operations. Risks Related to Cybersecurity and Other External Factors Our business could be materially and adversely affected by security threats, including cyber threats and cyber attacks, and other disruptions.
Any such terrorist attack or cybersecurity attack that affects us, our customers, suppliers, or others with whom we do business and/or energy-related assets could have a material adverse effect on our business, including disruption of our operations, damage to our reputation, a loss of counterparty trust, reimbursement or other costs, increased compliance costs, significant litigation exposure and legal liability or regulatory fines, penalties or intervention.
A cyber attack directed at, for example, crude oil, NGLs and natural gas distribution systems could (i) damage critical distribution and storage assets or the environment; (ii) disrupt energy supplies and markets, by delaying or preventing delivery of production to markets; and (iii) make it difficult or impossible to accurately account for production and settle transactions. 26 Any such terrorist attack or cyber attack that affects us, our customers, suppliers, or others with whom we do business and/or energy-related assets could have a material adverse effect on our business, including disruption of our operations, damage to our reputation, a loss of counterparty trust, reimbursement or other costs, increased compliance costs, significant litigation exposure and legal liability or regulatory fines, penalties or intervention.
Any reduction in the amount of dividends we pay to stockholders could have an adverse effect on the trading price of our common stock. In November 2021, our Board established a share repurchase authorization that allows for the repurchase by us of up to $5 billion of our common stock (November 2021 Authorization).
Any reduction in the amount of dividends we pay to stockholders could have an adverse effect on the trading price of our common stock.
Further, no accurate prediction can be made as to (i) what the specific provisions or the effective date of any such enacted legislation would be or (ii) in the case of a global minimum tax or similar tax, which countries or other jurisdictions would participate and enact applicable legislation.
While such GMT legislation has had, to date, no material impact on EOG, no accurate prediction can be made as to (i) which additional countries or jurisdictions will participate and enact GMT legislation and (ii) what the specific provisions or impact on EOG of any such enacted GMT legislation would be.
In addition, our failure to properly operate a CCS project could put at risk certain governmental tax credits and potentially expose us to commercial, legal, reputational and other risks.
In addition, our failure to properly operate a CCS project could put at risk certain governmental tax credits and potentially expose us to commercial, legal, reputational and other risks. Further, as both emissions sources and emissions measurements and related technologies, regulations, protocols and methodologies continue to evolve, the emissions that will be included in our emissions inventory may change.
See also the risk factor below regarding the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to regulation of financial derivative transactions and entities (such as EOG) that participate in such transactions.
See also the risk factor below regarding the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to regulation of financial derivative transactions and entities (such as EOG) that participate in such transactions. 22 Regulations, government policies and government and corporate initiatives relating to greenhouse gas emissions and climate change could have a significant impact on our operations and we could incur significant cost in the future to comply.
Drilling crude oil and natural gas wells, including development wells, involves numerous risks, including the risk that we may not encounter commercially productive crude oil, NGLs and/or natural gas reserves. As a result, we may not recover all or any portion of our investment in new wells.
Risks Related to our Operations Drilling crude oil and natural gas wells is a high-risk activity and subjects us to a variety of risks that we cannot control. Drilling crude oil and natural gas wells involves numerous risks, including the risk that we may not encounter commercially productive crude oil, NGLs and/or natural gas reserves.
In addition, certain countries, including countries where EOG is currently conducting business or may in the future conduct business, have advocated for the implementation (via legislation) of a global minimum tax. No accurate prediction can be made as to whether any such legislative changes or similar or other tax law changes will be proposed or enacted.
Further, no accurate prediction can be made as to what the specific provisions or impact on EOG of any such enacted legislation would be. 24 In addition, certain countries, including countries where EOG currently has operations or may in the future have operations, have implemented (via legislation), or may implement, a global minimum tax (GMT).
A substantial increase in interest rates would decrease our net cash flows available for reinvestment. Any of these factors could have a material and adverse effect on our business, financial condition and results of operations.
Any of these factors could have a material and adverse effect on our business, financial condition and results of operations and, in turn, the trading price of our common stock.
For example, we are subject to the U.S. EPA’s rule requiring annual reporting of GHG emissions which is subject to amendment from time to time. In addition, our oil and gas production and processing operations are subject to the U.S.
Local, state, federal and international regulatory bodies have been increasingly focused on GHG emissions and climate change issues in recent years. For example, we are subject to the U.S. EPA’s rule requiring annual reporting of GHG emissions which is subject to amendment from time to time.
Further, our operations are subject to the proposed methane “Waste Emissions Charge” rule, published in January 2024 as part of the Methane Emissions Reduction Program implemented under the Inflation Reduction Act of 2022. 23 At the international level, in December 2015, the U.S. participated in the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change in Paris, France.
EPA’s final new methane rules published in March 2024. Further, our operations are subject to the methane “Waste Emissions Charge” rule, published in November 2024 as part of the Methane Emissions Reduction Program implemented under the Inflation Reduction Act of 2022 (though, in February 2025, such rule was repealed by the U.S.
Removed
The inability of our customers and other contractual counterparties to pay amounts owed to us and to otherwise satisfy their contractual obligations to us may materially and adversely affect our business, financial condition, results of operations and cash flows. 18 Risks Related to our Operations Drilling crude oil and natural gas wells is a high-risk activity and subjects us to a variety of risks that we cannot control.
Added
A substantial increase in interest rates would decrease our net cash flows available for reinvestment (and, as noted above, for the payment of regular and special dividends on our common stock and for the repurchase of shares of our common stock).
Removed
A portion of our crude oil, NGLs and natural gas production may be subject to interruptions that could have a material and adverse effect on us.
Added
We expect to continue to pay dividends to our stockholders; however, our payment of dividends in the future is solely within the discretion of our Board.
Removed
We have limited control over the activities on properties that we do not operate. Some of the properties in which we have an interest are operated by other companies and involve third-party working interest owners.
Added
In November 2021, our Board established a share repurchase authorization allowing for the repurchase by us of up to $5 billion of our common stock, which was subsequently increased by the Board, from $5 billion to $10 billion, in November 2024 (Share Repurchase Authorization).
Removed
As a result, we have limited ability to influence or control the operation or future development of such properties, including compliance with environmental, safety and other regulations, or the amount of capital expenditures that we will be required to fund with respect to such properties.
Added
As a result, we may not recover all or any portion of our investment in new wells.
Removed
Moreover, we are dependent on the other working interest owners of such projects to fund their contractual share of the capital expenditures of such projects.
Added
House and Senate under the Congressional Review Act, which President Trump is expected to sign into law). At the international level, in December 2015, the U.S. participated in the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change in Paris, France.
Removed
In addition, a third-party operator could also decide to shut-in or curtail production from wells, or plug and abandon marginal wells, on properties owned by that operator during periods of lower crude oil, NGLs or natural gas prices.
Added
In January 2025, the United States submitted formal notification to the United Nations that it intends to withdraw from the Paris Agreement. Pursuant to the terms of the Paris Agreement, the withdrawal will take effect on January 27, 2026. Nevertheless, many state and local officials may continue efforts to uphold the commitments set forth in the international accord.
Removed
These limitations and our dependence on the operator and third-party working interest owners for these projects could cause us to incur unexpected future costs, lower production and materially and adversely affect our financial condition, results of operations and cash flows.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeEOG's cybersecurity team is led by EOG's group director, information systems and senior manager, information systems security, who each have over six years of experience overseeing EOG's cybersecurity processes and strategy. 29 Cyber Governance & Oversight EOG's cybersecurity team reports to EOG's Senior Vice President and Chief Information and Technology Officer, who has served as EOG's Chief Technology Officer since 2017 and as EOG's Chief Information Officer for over 25 years.
Biggest changeCyber Governance & Oversight EOG's cybersecurity team reports to EOG's Senior Vice President and Chief Information and Technology Officer, who has served as EOG's Chief Technology Officer since 2017 and as EOG's Chief Information Officer for over 25 years.
EOG has implemented and invested in multiple technologies, controls, and procedures designed to protect its information systems and related infrastructure; identify, assess and remediate vulnerabilities; and monitor and mitigate the risk of data loss and other cybersecurity threats and intrusions.
EOG has invested in and implemented multiple technologies, controls, and procedures designed to protect its information systems and related infrastructure; identify, assess and remediate vulnerabilities; and monitor and mitigate the risk of data loss and other cybersecurity threats and intrusions.
As part of its risk oversight responsibility and pursuant to its charter, the Audit Committee, in consultation with the Board and the Board's other committees, oversees our policies, strategies, and initiatives for mitigating cybersecurity and information technology risks.
As part of its risk oversight responsibility and pursuant to its charter, the Audit Committee, in consultation with the Board and the Board's other committees, oversees EOG’s policies, strategies, and initiatives for mitigating cybersecurity and information technology risks. 28
In addition, EOG's internal audit function, in conjunction with third-party experts, play a key role in reviewing and assessing EOG's cybersecurity technologies, controls and procedures, including conducting penetration testing and vulnerability assessments. In the event of an incident, EOG has a designated response team and written response plan in place with predefined escalation and response procedures.
In addition, EOG's internal audit team, in conjunction with third-party experts, plays an important role in reviewing and assessing EOG's cybersecurity technologies, controls and procedures, including conducting penetration testing and vulnerability assessments. In the event of an incident, EOG has a designated response team and written response plan in place with predefined escalation and response procedures.
EOG's cybersecurity team leadership, Senior Vice President and Chief Information and Technology Officer and other members of senior management regularly report to EOG's Audit Committee and Board of Directors (Board) regarding cybersecurity matters, including the assessments performed regarding EOG's cybersecurity technologies, controls and procedures.
EOG's cybersecurity team leadership, Senior Vice President and Chief Information and Technology Officer and other members of senior management are responsible for the day-to-day management of cybersecurity risks and cybersecurity leadership. Such senior management team regularly reports to EOG's Audit Committee and Board of Directors (Board) regarding cybersecurity matters, including the assessments performed regarding EOG's cybersecurity technologies, controls and procedures.
EOG's dedicated, in-house cybersecurity team, which is responsible for EOG's cybersecurity strategy and planning, oversees such efforts, with assistance from external threat analysts, consultants and service providers. As part of these efforts, such team seeks to identify potential cyber vulnerabilities and opportunities for improvement and then evaluates and implements different cybersecurity technologies to address any identified vulnerabilities and opportunities.
As part of these efforts, such team seeks to identify potential cyber vulnerabilities and opportunities for improvement and then evaluates and implements different cybersecurity technologies to address any identified vulnerabilities and opportunities.
EOG focuses on building cybersecurity awareness with its employees and other end-users through training and security exercises and communicates EOG's expectations of employees and contractors with respect to cybersecurity matters via EOG's Codes of Business Conduct and Ethics.
EOG focuses on building cybersecurity awareness with its employees and other end-users through training and security exercises and communicates EOG's expectations of employees and contractors with respect to cybersecurity matters via EOG's Codes of Business Conduct and Ethics. 27 EOG's dedicated, in-house cybersecurity team, which is responsible for EOG's cybersecurity strategy and planning, oversees such efforts, with assistance from external threat analysts, consultants and service providers.
EOG's in-house professionals and external threat analysts possess various cybersecurity certifications.
EOG's in-house professionals and external threat analysts possess various cybersecurity certifications. EOG's cybersecurity team is led by EOG's group director, information systems and senior manager, information systems security, who each have over seven years of experience overseeing EOG's cybersecurity processes and strategy.

Item 2. Properties

Properties — owned and leased real estate

15 edited+0 added−1 removed8 unchanged
Biggest changeThe following tables set forth the results of the gross crude oil and natural gas wells completed for the years ended December 31, 2023, 2022 and 2021: Gross Development Wells Completed Gross Exploratory Wells Completed Crude Oil Natural Gas Dry Hole Total Crude Oil Natural Gas Dry Hole Total 2023 United States 595 152 2 749 9 7 — 16 Trinidad — 2 — 2 — 1 — 1 Total 595 154 2 751 9 8 — 17 2022 United States 462 133 11 606 3 — 8 11 Trinidad — — — — — 2 1 3 Total 462 133 11 606 3 2 9 14 2021 United States 474 72 5 551 10 1 1 12 Trinidad — — — — — — — — Oman — — — — — — 3 3 Total 474 72 5 551 10 1 4 15 31 The following tables set forth the results of the net crude oil and natural gas wells completed for the years ended December 31, 2023, 2022 and 2021: Net Development Wells Completed Net Exploratory Wells Completed Crude Oil Natural Gas Dry Hole Total Crude Oil Natural Gas Dry Hole Total 2023 United States 490 135 2 627 7 6 — 13 Trinidad — 2 — 2 — 1 — 1 Total 490 137 2 629 7 7 — 14 2022 United States 395 117 10 522 3 — 8 11 Trinidad — — — — — 2 1 3 Total 395 117 10 522 3 2 9 14 2021 United States 434 66 4 504 10 1 1 12 Trinidad — — — — — — — — Oman — — — — — — 3 3 Total 434 66 4 504 10 1 4 15 EOG participated in the drilling of wells that were in the process of being drilled or completed at the end of the period as set out in the table below for the years ended December 31, 2023, 2022 and 2021: Wells in Progress at End of Period 2023 2022 2021 Gross Net Gross Net Gross Net United States 254 212 251 213 191 167 Trinidad 3 3 1 1 1 1 Total 257 215 252 214 192 168 Included in the previous table of wells in progress at the end of the period were wells which had been drilled, but were not completed (DUCs).
Biggest changeThe following tables set forth the results of the gross crude oil and natural gas wells completed for the years ended December 31, 2024, 2023 and 2022: Gross Development Wells Completed Gross Exploratory Wells Completed Crude Oil Natural Gas Dry Hole Total Crude Oil Natural Gas Dry Hole Total 2024 United States 607 117 6 730 8 1 — 9 Trinidad — 1 — 1 — 3 — 3 Total 607 118 6 731 8 4 — 12 2023 United States 595 152 2 749 9 7 — 16 Trinidad — 2 — 2 — 1 — 1 Total 595 154 2 751 9 8 — 17 2022 United States 462 133 11 606 3 — 8 11 Trinidad — — — — — 2 1 3 Total 462 133 11 606 3 2 9 14 30 The following tables set forth the results of the net crude oil and natural gas wells completed for the years ended December 31, 2024, 2023 and 2022: Net Development Wells Completed Net Exploratory Wells Completed Crude Oil Natural Gas Dry Hole Total Crude Oil Natural Gas Dry Hole Total 2024 United States 527 101 5 633 7 1 — 8 Trinidad — 1 — 1 — 3 — 3 Total 527 102 5 634 7 4 — 11 2023 United States 490 135 2 627 7 6 — 13 Trinidad — 2 — 2 — 1 — 1 Total 490 137 2 629 7 7 — 14 2022 United States 395 117 10 522 3 — 8 11 Trinidad — — — — — 2 1 3 Total 395 117 10 522 3 2 9 14 EOG participated in the drilling of wells that were in the process of being drilled or completed at the end of the period as set out in the table below for the years ended December 31, 2024, 2023 and 2022: Wells in Progress at End of Period 2024 2023 2022 Gross Net Gross Net Gross Net United States 243 213 254 212 251 213 Trinidad 2 1 3 3 1 1 Total 245 214 257 215 252 214 Included in the above table of wells in progress at the end of the period were wells which had been drilled, but were not completed (DUCs).
For estimates and discussions of EOG's net proved reserves of crude oil and condensate, natural gas liquids (NGLs) and natural gas, the qualifications of the preparers of EOG's reserve estimates, EOG's independent petroleum consultants and EOG's processes and controls with respect to its reserve estimates, see "Supplemental Information to Consolidated Financial Statements." There are numerous uncertainties inherent in estimating quantities of reserves and in projecting future rates of production and timing of development expenditures, including many factors beyond the control of the producer.
For estimates and discussions of EOG's net proved reserves of crude oil and condensate, natural gas liquids (NGLs) and natural gas, the qualifications of the preparers of EOG's reserve estimates, EOG's independent petroleum consultants and EOG's processes and controls with respect to its reserve estimates, see "Supplemental Information to Consolidated Financial Statements." There are numerous uncertainties inherent in estimating quantities of reserves and in projecting future rates of production and the timing of development expenditures, including many factors beyond the control of the producer.
For related discussion, see ITEM 1A, Risk Factors. EOG's estimates of reserves filed with other federal agencies are consistent with the information set forth in "Supplemental Information to Consolidated Financial Statements." Acreage. The following table summarizes EOG's gross and net developed and undeveloped acreage at December 31, 2023 (in thousands of acres).
For related discussion, see ITEM 1A, Risk Factors. EOG's estimates of reserves filed with other federal agencies are consistent with the information set forth in "Supplemental Information to Consolidated Financial Statements." Acreage. The following table summarizes EOG's gross and net developed and undeveloped acreage at December 31, 2024 (in thousands of acres).
Approximately 0.1 million net acres will expire in 2024, 0.1 million net acres will expire in 2025 and 1.1 million net acres will expire in 2026 if production is not established or we take no other action to extend the terms of the leases or obtain concessions.
Approximately 0.1 million net acres will expire in 2025, 0.1 million net acres will expire in 2026 and 0.1 million net acres will expire in 2027 if production is not established or we take no other action to extend the terms of the leases or obtain concessions.
EOG's other property, plant and equipment primarily includes gathering, transportation and processing infrastructure assets, carbon capture and storage assets and buildings. EOG does not own drilling rigs, hydraulic fracturing equipment or rail cars. All of EOG's drilling and completion activities are conducted on a contractual basis with independent drilling contractors and other third-party service contractors.
EOG's other property, plant and equipment primarily includes gathering, processing and transportation assets, carbon capture and storage assets and buildings. EOG does not own drilling rigs or hydraulic fracturing equipment. All of EOG's drilling and completion activities are conducted on a contractual basis with independent drilling contractors and other third-party service contractors.
As of December 31, 2023, there were no proved undeveloped reserves (PUDs) associated with undeveloped leases on which drilling was planned after the expiration dates of such leases.
As of December 31, 2024, there were no proved undeveloped reserves (PUDs) associated with undeveloped leases on which drilling was planned after the expiration dates of such leases.
In order to effectively manage its capital expenditures and to provide flexibility in managing its drilling rig and well completion schedules, EOG, from time to time, will have an inventory of DUCs. At December 31, 2023, there were approximately 134 MMBoe of net PUDs associated with EOG's inventory of DUCs.
In order to effectively manage its capital expenditures and to provide flexibility in managing its drilling rig and well completion schedules, EOG, from time to time, will have an inventory of DUCs. At December 31, 2024, there were approximately 179 MMBoe of net PUDs associated with EOG's inventory of DUCs.
During the years ended December 31, 2023, 2022 and 2021, EOG expended $6.0 billion, $5.2 billion and $4.0 billion, respectively, for exploratory and development drilling, facilities and acquisition of leases and producing properties, including asset retirement costs of $257 million, $298 million and $127 million, respectively.
During the years ended December 31, 2024, 2023 and 2022, EOG expended $5.6 billion, $6.0 billion and $5.2 billion, respectively, for exploratory and development drilling, facilities and acquisition of leases and producing properties, including asset retirement costs of $(2) million, $257 million and $298 million, respectively.
Gross crude oil and natural gas wells include 58 wells with multiple completions. Drilling and Acquisition Activities .
Gross crude oil and natural gas wells include 55 wells with multiple completions. Drilling and Acquisition Activities .
In the ordinary course of business, based on our evaluations of certain geologic trends and prospective economics, we have allowed certain lease acreage to expire and may allow additional acreage to expire in the future. Many of our oil and gas leases are large enough to accommodate more than one producing unit.
In the ordinary course of business, based on its evaluations of certain geologic trends and prospective economics, EOG has allowed certain lease acreage to expire and may allow additional acreage to expire in the future. Many of EOG's oil and gas leases are large enough to accommodate more than one producing unit.
Drilled Uncompleted Wells at End of Period 2023 2022 2021 Gross Net Gross Net Gross Net United States 156 132 122 98 121 105 Trinidad 1 1 — — — — Total 157 133 122 98 121 105 32 EOG acquired wells as set forth in the following table (excluding the acquisition of additional interests in 4, 74 and 5 net wells in which EOG previously owned an interest for the years ended December 31, 2023, 2022 and 2021, respectively) for the years ended December 31, 2023, 2022 and 2021: Gross Acquired Wells Net Acquired Wells Crude Oil Natural Gas Total Crude Oil Natural Gas Total 2023 United States 5 — 5 5 — 5 Total 5 — 5 5 — 5 2022 United States 25 5 30 19 1 20 Total 25 5 30 19 1 20 2021 United States 2 14 16 1 13 14 Total 2 14 16 1 13 14 Other Property, Plant and Equipment.
Drilled Uncompleted Wells at End of Period 2024 2023 2022 Gross Net Gross Net Gross Net United States 170 140 156 132 122 98 Trinidad 1 1 1 1 — — Total 171 141 157 133 122 98 31 EOG acquired wells as set forth in the following table (excluding the acquisition of additional interests in 4, 4 and 74 net wells in which EOG previously owned an interest for the years ended December 31, 2024, 2023 and 2022, respectively) for the years ended December 31, 2024, 2023 and 2022: Gross Acquired Wells Net Acquired Wells Crude Oil Natural Gas Total Crude Oil Natural Gas Total 2024 United States 21 4 25 19 3 22 Total 21 4 25 19 3 22 2023 United States 5 — 5 5 — 5 Total 5 — 5 5 — 5 2022 United States 25 5 30 19 1 20 Total 25 5 30 19 1 20 Other Property, Plant and Equipment.
The following table represents EOG's gross and net productive wells at December 31, 2023, including 2,868 wells in which we hold a royalty interest.
The following table represents EOG's gross and net productive wells at December 31, 2024, including 3,052 wells in which it holds a royalty interest.
Developed Undeveloped Total Gross Net Gross Net Gross Net United States 1,869 1,500 2,747 1,866 4,616 3,366 Trinidad 77 65 238 139 315 204 Australia — — 1,009 1,009 1,009 1,009 Total 1,946 1,565 3,994 3,014 5,940 4,579 30 Most of our undeveloped oil and gas leases, particularly in the United States, are subject to lease expiration if initial wells are not drilled within a specified period, generally between three to five years.
Developed Undeveloped Total Gross Net Gross Net Gross Net United States 1,770 1,429 2,789 1,929 4,559 3,358 Trinidad 102 77 191 110 293 187 Australia — — 1,009 1,009 1,009 1,009 Total 1,872 1,506 3,989 3,048 5,861 4,554 Most of EOG's undeveloped oil and gas leases, particularly in the United States, are subject to lease expiration if initial wells are not drilled within a specified period, generally between three to five years.
The agreement governing the acreage associated with our exploration program in offshore Australia is set to expire at various dates through 2026 depending on EOG's decision to move forward with its defined work program or unless EOG is either granted a production license or an extension of the permit. Productive Well Summary .
Included in undeveloped acreage is non-producing acreage within such larger producing leases. The agreement governing the acreage associated with our exploration program in offshore Australia is set to expire at various dates through 2026. 29 Productive Well Summary .
Crude Oil Natural Gas Total Gross Net Gross Net Gross Net United States 9,475 6,652 3,595 1,772 13,070 8,424 Trinidad 2 2 38 32 40 34 Total (1) 9,477 6,654 3,633 1,804 13,110 8,458 (1) EOG operated 9,304 gross and 8,291 net producing crude oil and natural gas wells at December 31, 2023.
Crude Oil Natural Gas Total Gross Net Gross Net Gross Net United States 10,288 7,111 3,605 1,782 13,893 8,893 Trinidad 2 2 42 35 44 37 Total (1) 10,290 7,113 3,647 1,817 13,937 8,930 (1) EOG operated 9,910 gross and 8,792 net producing crude oil and natural gas wells at December 31, 2024.
Removed
Included in our undeveloped acreage is non-producing acreage within such larger producing leases.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed3 unchanged
Biggest changeApplying this threshold, there are no environmental proceedings to disclose for the quarter and year ended December 31, 2023.
Biggest changeApplying this threshold, there are no environmental proceedings to disclose for the quarter and year ended December 31, 2024.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

11 edited+0 added−1 removed3 unchanged
Biggest changeThe share repurchases during December 2023 were made pursuant to a Rule 10b5-1 trading plan entered into by EOG on December 1, 2023 (prior to the opening of trading on such day).
Biggest changeThe share repurchases effected during the periods October 1, 2024 through November 8, 2024 and November 11, 2024 through November 20, 2024 were made pursuant to Rule 10b5-1 trading plans entered into by EOG on September 30, 2024 and November 8, 2024 (respectively).
The comparison was prepared based upon the following assumptions: 1. $100 was invested on December 31, 2018 in each of the following: common stock of EOG, the S&P 500 and the S&P O&G E&P. 2. Dividends are reinvested.
The comparison was prepared based upon the following assumptions: 1. $100 was invested on December 31, 2019 in each of the following: common stock of EOG, the S&P 500 and the S&P O&G E&P. 2. Dividends are reinvested.
The November 2021 Authorization has no time limit, does not require EOG to repurchase a specific number of shares and may be modified, suspended or terminated by the Board at any time. 34 Comparative Stock Performance The following performance graph and related information shall not be deemed "soliciting material" or to be "filed" with the United States Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended, except to the extent that EOG specifically requests that such information be treated as "soliciting material" or specifically incorporates such information by reference into such a filing.
The Share Repurchase Authorization has no time limit, does not require EOG to repurchase a specific number of shares and may be modified, suspended or terminated by the Board at any time. 33 Comparative Stock Performance The following performance graph and related information shall not be deemed "soliciting material" or to be "filed" with the United States Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended, except to the extent that EOG specifically requests that such information be treated as "soliciting material" or specifically incorporates such information by reference into such a filing.
(3) Under the November 2021 Authorization, EOG may repurchase shares from time to time, at management's discretion, in accordance with applicable securities laws, including through open market transactions, privately negotiated transactions or any combination thereof.
(3) Under the Share Repurchase Authorization, EOG may repurchase shares from time to time, at management's discretion, in accordance with applicable securities laws, including through open market transactions, privately negotiated transactions or any combination thereof.
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities EOG's common stock is traded on the New York Stock Exchange under the ticker symbol "EOG." As of February 15, 2024, there were approximately 3,000 record holders and approximately 1,093,000 beneficial owners of EOG's common stock.
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities EOG's common stock is traded on the New York Stock Exchange under the ticker symbol "EOG." As of February 13, 2025, there were approximately 3,100 record holders and approximately 1,252,000 beneficial owners of EOG's common stock.
Also includes 82,707 total shares that were withheld by or returned to EOG during the quarter ended December 31, 2023, at an average price of $127.66 per share, (i) in satisfaction of tax withholding obligations that arose upon the exercise of employee stock options or stock-settled stock appreciation rights or the vesting of restricted stock, restricted stock unit or performance unit grants or (ii) in payment of the exercise price of employee stock options (such shares do not count against the November 2021 Authorization).
Also includes 84,841 total shares that were withheld by or returned to EOG during the quarter ended December 31, 2024, at an average price of $132.23 per share, (i) in satisfaction of tax withholding obligations that arose upon the exercise of employee stock options or stock-settled stock appreciation rights or the vesting of restricted stock, restricted stock unit or performance unit grants or (ii) in payment of the exercise price of employee stock options; such shares do not count against the Share Repurchase Authorization.
(2) Effective November 4, 2021, EOG's Board of Directors (Board) established a new share repurchase authorization that allows for the repurchase by EOG of up to $5 billion of its common stock (November 2021 Authorization).
(2) In November 2021, EOG's Board of Directors (Board) established a new share repurchase authorization allowing for the repurchase by EOG of up to $5 billion of its common stock and, in November 2024, increased such share repurchase authorization from $5 billion to $10 billion, effective November 7, 2024 (Share Repurchase Authorization).
The timing and amount of repurchases is at the discretion of EOG's management and depends on a variety of factors, including the trading price of EOG's common stock, corporate and regulatory requirements, other market and economic conditions, the availability of cash to effect repurchases and EOG's anticipated future capital expenditures and other commitments requiring cash.
The timing and amount of repurchases is at the discretion of EOG's management and depends on a variety of factors, including the trading price of EOG's common stock, corporate and regulatory requirements, and other market and economic conditions. Repurchased shares are held as treasury shares and are available for general corporate purposes.
The following table sets forth, for the periods indicated, EOG's share repurchase activity: Period (a) Total Number of Shares Purchased (1) (b) Average Price Paid per Share (c) Total Number of Shares or Value of Shares Purchased as Part of Publicly Announced Plans or Programs (2) (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) October 1, 2023 - October 31, 2023 59,602 $ 129.19 $ — $ 4,328,867,620 November 1, 2023 - November 30, 2023 1,198,980 122.96 145,760,313 4,183,107,307 December 1, 2023 - December 31, 2023 1,269,005 122.49 154,239,583 4,028,867,724 Total 2,527,587 122.87 299,999,896 (1) Includes 2,444,880 shares repurchased during the quarter ended December 31, 2023, at an average price of $122.71 per share (inclusive of commissions and transaction fees), pursuant to the November 2021 Authorization (as defined and further discussed below); such repurchases count against the November 2021 Authorization.
The following table sets forth, for the periods indicated, EOG's share repurchase activity: Period (a) Total Number of Shares Purchased (1) (b) Average Price Paid per Share (c) Total Number of Shares or Value of Shares Purchased as Part of Publicly Announced Plans or Programs (2) (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) October 1, 2024 - October 31, 2024 2,401,712 $ 126.86 $ 299,999,895 $ 1,531,171,168 November 1, 2024 - November 30, 2024 1,224,309 133.70 157,512,580 6,373,658,588 December 1, 2024 - December 31, 2024 4,241,236 123.56 523,698,015 5,849,960,573 Total 7,867,257 126.15 981,210,490 (1) Includes 7,782,416 shares repurchased during the quarter ended December 31, 2024, at an average price of $126.08 per share (inclusive of commissions and transaction fees), pursuant to the Share Repurchase Authorization (as defined below); such repurchases count against the Share Repurchase Authorization.
Comparison of Five-Year Cumulative Total Returns EOG, S&P 500 and S&P O&G E&P (Performance Results Through December 31, 2023) 2018 2019 2020 2021 2022 2023 EOG $ 100.00 $ 97.18 $ 59.63 $ 112.52 $ 176.50 $ 172.96 S&P 500 $ 100.00 $ 131.49 $ 155.68 $ 200.37 $ 164.08 $ 207.21 S&P O&G E&P $ 100.00 $ 112.02 $ 72.35 $ 135.35 $ 214.52 $ 214.60 35 ITEM 6.
Comparison of Five-Year Cumulative Total Returns EOG, S&P 500 and S&P O&G E&P (Performance Results Through December 31, 2024) 2019 2020 2021 2022 2023 2024 EOG $ 100.00 $ 61.36 $ 115.78 $ 181.62 $ 177.98 $ 185.65 S&P 500 $ 100.00 $ 118.40 $ 152.39 $ 124.79 $ 157.59 $ 197.02 S&P O&G E&P $ 100.00 $ 64.58 $ 120.82 $ 191.50 $ 191.57 $ 181.25 34 ITEM 6.
As of the date of this filing, (i) EOG has repurchased an aggregate 8,648,918 shares at a total cost of $971,132,276 (inclusive of commissions and transaction fees) under the November 2021 Authorization and (ii) an additional $4,028,867,724 of shares may be purchased under the November 2021 Authorization.
As of December 31, 2024, (i) EOG had repurchased an aggregate 34,462,691 shares at a total cost of $4,150,039,427 (inclusive of commissions and transaction fees) under the Share Repurchase Authorization and (ii) an additional $5,849,960,573 of shares remained available for repurchases under the Share Repurchase Authorization.
Removed
Repurchased shares are held as treasury shares and are available for general corporate purposes.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

3 edited+0 added−0 removed0 unchanged
Biggest changeOther Information 53 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 53 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 54 ITEM 11. Executive Compensation 54 ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 54 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 56 ITEM 14.
Biggest changeOther Information 51 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 51 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 52 ITEM 11. Executive Compensation 52 ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 53 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 54 ITEM 14.
ITEM 6. Reserved 36 ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 36 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 53 ITEM 8. Financial Statements and Supplementary Data 53 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 53 ITEM 9A. Controls and Procedures 53 ITEM 9B.
ITEM 6. Reserved 35 ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 51 ITEM 8. Financial Statements and Supplementary Data 51 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 51 ITEM 9A. Controls and Procedures 51 ITEM 9B.
Principal Accounting Fees and Services 56 PART IV ITEM 15. Exhibit and Financial Statement Schedules 56 ITEM 16. Form 10-K Summary 56 SIGNATURES (i) PART I
Principal Accountant Fees and Services 54 PART IV ITEM 15. Exhibits and Financial Statement Schedules 55 ITEM 16. Form 10-K Summary 55 SIGNATURES (i) PART I

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

119 edited+19 added−18 removed35 unchanged
Biggest changeImportant factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others: • the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities; • the extent to which EOG is successful in its efforts to acquire or discover additional reserves; • the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations; • the success of EOG's cost-mitigation initiatives and actions in offsetting the impact of inflationary pressures on EOG's operating costs and capital expenditures; • the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas; • security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business, and enhanced regulatory focus on prevention and disclosure requirements relating to cyber incidents; • the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities; • the availability, cost, terms and timing of issuance or execution of mineral licenses and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses and leases; • the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax and emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities; 51 • the impact of climate change-related policies and initiatives at the corporate and/or investor community levels and other potential developments related to climate change, such as (but not limited to) changes in consumer and industrial/commercial behavior, preferences and attitudes with respect to the generation and consumption of energy; increased availability of, and increased consumer and industrial/commercial demand for, competing energy sources (including alternative energy sources); technological advances with respect to the generation, transmission, storage and consumption of energy; alternative fuel requirements; energy conservation measures and emissions-related legislation; decreased demand for, and availability of, services and facilities related to the exploration for, and production of, crude oil, NGLs and natural gas; and negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, crude oil, NGLs and natural gas; • continuing political and social concerns relating to climate change and the greater potential for shareholder activism, governmental inquiries and enforcement actions and litigation and the resulting expenses and potential disruption to EOG's day-to-day operations; • the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other ESG-related initiatives and achieve its related targets, ambitions and initiatives; • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to such properties; • the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations; • competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties; • the availability and cost of, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services; • the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; • weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities; • the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG; • EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements; • the extent to which EOG is successful in its completion of planned asset dispositions; • the extent and effect of any hedging activities engaged in by EOG; • the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions; • the duration and economic and financial impact of epidemics, pandemics or other public health issues; • geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflicts), including in the areas in which EOG operates; • the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; • acts of war and terrorism and responses to these acts; and • the other factors described under ITEM 1A, Risk Factors of this Annual Report on Form 10-K and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
Biggest changeImportant factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others: • the timing, magnitude and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities; • the extent to which EOG is successful in its efforts to acquire or discover additional reserves; • the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximize reserve recoveries from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations; • the success of EOG's cost-mitigation initiatives and actions in offsetting the impact of any inflationary or other pressures on EOG's operating costs and capital expenditures; • the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas; • security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business, and enhanced regulatory focus on the prevention of, and disclosure requirements relating to, cyber incidents; • the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment; • the availability, cost, terms and timing of issuance or execution of mineral licenses, concessions and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses, concessions and leases; • the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax or other emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial and other derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities; 49 • the impact of climate change-related legislation, policies and initiatives; climate change-related political, social and shareholder activism; and physical, transition and reputational risks and other potential developments related to climate change; • the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other environmental or safety-related initiatives and achieve its related targets, goals, ambitions and initiatives; • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to such properties; • the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations; • competition in the oil and gas exploration and production industry for the acquisition of licenses, concessions, leases and properties; • the availability and cost of, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services; • the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; • weather and natural disasters, including its impact on crude oil and natural gas demand, and related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities; • the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG; • EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements; • the extent to which EOG is successful in its completion of planned asset dispositions; • the extent and effect of any hedging activities engaged in by EOG; • the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions; • the economic and financial impact of epidemics, pandemics or other public health issues; • geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflicts), including in the areas in which EOG operates; • the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; and • the other factors described under ITEM 1A, Risk Factors of this Annual Report on Form 10-K and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
The primary uses of cash were funds used in operations; exploration and development expenditures; dividend payments to stockholders; net cash paid for settlements of financial commodity derivative contracts; repayment of debt; other property, plant and equipment expenditures; and purchases of treasury stock.
The primary uses of cash were funds used in operations; exploration and development expenditures; dividend payments to stockholders; purchases of treasury stock; net cash paid for settlements of financial commodity derivative contracts; other property, plant and equipment expenditures; and repayment of debt.
The reserve base used to calculate depreciation, depletion and amortization for leasehold acquisition costs and the cost to acquire proved properties is the sum of proved developed reserves and proved undeveloped reserves. With respect to lease and well equipment costs, which include development costs and successful exploration drilling costs, the reserve base includes only proved developed reserves.
The reserve base used to calculate depreciation, depletion and amortization for leasehold acquisition costs and the cost to acquire proved properties is the sum of proved developed reserves and proved undeveloped reserves. With respect to lease and well equipment costs, which include development costs and successful exploration drilling costs, the reserve base used includes only proved developed reserves.
As a result of the many uncertainties associated with the world economic and political environment, worldwide supplies of, and demand for, crude oil and condensate, NGLs and natural gas, the availability of other energy supplies and the relative competitive relationships of the various energy sources in the view of consumers, EOG is unable to predict what changes may occur in crude oil and condensate, NGLs, natural gas, ammonia and methanol prices in the future.
As a result of the many uncertainties associated with the world economic and political environment, worldwide supplies of, and demand for, crude oil and condensate, NGLs and natural gas, the availability of other energy supplies, the relative competitive relationships of the various energy sources in the view of consumers and other factors, EOG is unable to predict what changes may occur in crude oil and condensate, NGLs, natural gas, ammonia and methanol prices in the future.
EOG considers the availability of its $1.9 billion senior unsecured revolving credit facility, as described in Note 2 to Consolidated Financial Statements, to be sufficient to meet its ongoing operating needs. Outlook Pricing. Crude oil, NGLs and natural gas prices have been volatile, and this volatility is expected to continue.
EOG considers the availability of its $1.9 billion senior unsecured revolving credit facility, as described in Note 2 to Consolidated Financial Statements, to be sufficient to meet its ongoing operating needs. 45 Outlook Pricing. Crude oil, NGLs and natural gas prices have been volatile, and this volatility is expected to continue.
Further, there can be no assurance that the factors contributing to any future inflationary pressures will not impact EOG's ability to conduct its future day-to-day drilling, completion and production operations. See ITEM 1A. Risk Factors, for related discussion. Climate Change .
Further, there can be no assurance that the factors contributing to any such future inflationary pressures will not impact EOG's ability to conduct its future day-to-day drilling, completion and production operations. See ITEM 1A. Risk Factors, for related discussion. Climate Change .
Management continues to believe EOG has one of the strongest prospect inventories in EOG's history. When it fits EOG's strategy, EOG will make acquisitions that bolster existing drilling programs or offer incremental exploration and/or production opportunities. 38 Cash Return Framework.
Management continues to believe EOG has one of the strongest prospect inventories in EOG's history. When it fits EOG's strategy, EOG will make acquisitions that bolster existing drilling programs or offer incremental exploration and/or production opportunities. Cash Return Framework.
During 2023, EOG recognized net gains on the mark-to-market of financial commodity derivative contracts of $818 million, which included net cash paid for settlements of crude oil, NGLs and natural gas financial derivative contracts of $112 million.
During 2023, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $818 million, which included net cash paid for settlements of crude oil, NGLs and natural gas financial commodity derivative contracts of $112 million.
The total anticipated 2024 capital expenditures of approximately $6.0 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses, is structured to maintain EOG's strategy of capital discipline by funding its exploration, development and exploitation activities primarily from available internally generated cash flows and cash on hand.
The total anticipated 2025 capital expenditures of approximately $6.0 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses, is structured to maintain EOG's strategy of capital discipline by funding its exploration, development and exploitation activities primarily from available internally generated cash flows and cash on hand.
See "Operating Revenues and Other" above for a discussion of production volumes. Lease and well expenses include expenses for EOG-operated properties, as well as expenses billed to EOG from other operators where EOG is not the operator of a property.
See "Operating Revenues and Other" above for a discussion of volumes. Lease and well expenses include expenses for EOG-operated properties, as well as expenses billed to EOG from other operators where EOG is not the operator of a property.
In particular, EOG will be focused on United States drilling activity in its Delaware Basin, Eagle Ford play, Dorado gas play and Utica play where it generates its highest rates-of-return.
In particular, EOG will be focused on United States drilling activity in the Delaware Basin play, Eagle Ford play, Dorado gas play and Utica play where it generates its highest rates-of-return.
Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. 52
Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. 50
The majority of 2024 expenditures will be focused on United States crude oil drilling activities. EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its senior unsecured revolving credit facility, joint development agreements and similar agreements and equity and debt offerings.
The majority of 2025 expenditures will be focused on United States crude oil drilling activities. EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its senior unsecured revolving credit facility, joint development agreements and similar agreements and equity and debt offerings.
See Notes 13 and 14 to Consolidated Financial Statements for further disclosures of impairments of oil and gas properties and other assets. 50 Information Regarding Forward-Looking Statements This Annual Report on Form 10-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
See Notes 13 and 14 to Consolidated Financial Statements for further disclosures of impairments of oil and gas properties and other assets. 48 Information Regarding Forward-Looking Statements This Annual Report on Form 10-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Total anticipated 2024 capital expenditures are estimated to range from approximately $6.0 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses.
Total anticipated 2025 capital expenditures are estimated to range from approximately $6.0 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses.
EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its $1.9 billion senior unsecured revolving credit facility and equity and debt offerings. Operations. In 2024, crude oil and total crude oil equivalent production are expected to increase from 2023 levels.
EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its $1.9 billion senior unsecured revolving credit facility and equity and debt offerings. Operations. In 2025, crude oil and total crude oil equivalent production are expected to increase from 2024 levels.
In particular, statements, express or implied, concerning EOG's future financial or operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, pay and/or increase regular and/or special dividends or repurchase shares are forward‐looking statements.
In particular, statements, express or implied, concerning EOG's future financial or operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters or safety matters, pay and/or increase regular and/or special dividends or repurchase shares are forward‐looking statements.
While changes in interest rates affect the fair value of EOG's senior notes, such changes do not expose EOG to material fluctuations in earnings or cash flow. During 2023, EOG funded its capital program and operations by utilizing cash provided by operating activities and cash on hand.
While changes in interest rates affect the fair value of EOG's senior notes, such changes do not expose EOG to material fluctuations in earnings or cash flow. During 2024, EOG funded its capital program and operations by utilizing cash provided by operating activities and cash on hand.
EOG will continue to monitor and assess any climate change-related developments that could impact EOG and the oil and gas industry, to determine the impact on its business and operations, and take appropriate actions where necessary. Operations Several important developments have occurred since January 1, 2023. United States.
EOG will continue to monitor and assess any climate change-related developments that could impact EOG and the oil and gas industry, to determine the impact on its business and operations, and take appropriate actions where necessary. Operations Several important developments have occurred since January 1, 2024. United States.
(2) Amounts exclude transportation and storage service commitments that meet the definition of a lease. Amounts shown are based on current transportation and storage rates and the foreign currency exchange rates used to convert Canadian dollars into United States dollars at December 31, 2023.
(2) Amounts exclude transportation and storage service commitments that meet the definition of a lease. Amounts shown are based on current transportation and storage rates and the foreign currency exchange rates used to convert Canadian dollars into United States dollars at December 31, 2024.
The market prices of crude oil and condensate, NGLs and natural gas impact the amount of cash generated from EOG's operating activities, which, in turn, impact EOG's financial position and results of operations. For the year ended December 31, 2023, the average U.S.
The market prices of crude oil and condensate, NGLs and natural gas impact the amount of cash generated from EOG's operating activities, which, in turn, impact EOG's financial position and results of operations. For the year ended December 31, 2024, the average U.S.
While EOG maintains a $1.9 billion senior unsecured revolving credit facility to back its commercial paper program, there were no borrowings outstanding at any time during 2023 and the amount outstanding at year-end was zero.
While EOG maintains a $1.9 billion senior unsecured revolving credit facility to back its commercial paper program, there were no borrowings outstanding at any time during 2024 and the amount outstanding at year-end was zero.
Results of Operations This section discusses certain year-to-year comparisons between 2023 and 2022, which should be read in conjunction with the consolidated financial statements of EOG and notes thereto beginning on page F-1.
Results of Operations This section discusses certain year-to-year comparisons between 2024 and 2023, which should be read in conjunction with the consolidated financial statements of EOG and notes thereto beginning on page F-1.
EOG plans to continue with these initiatives and actions, though there can be no assurance that such efforts will offset, largely or at all, the impacts of any future inflationary pressures on EOG's operating costs and capital expenditures, cash flows and results of operations.
EOG plans to continue with these initiatives and actions, though there can be no assurance that such efforts will offset, largely or at all, the impacts of any future inflationary pressures (such as from tariffs) on EOG's operating costs and capital expenditures, cash flows and results of operations.
During 2023, EOG's drilling and completion activities occurred primarily in the Delaware Basin play, Eagle Ford play and Rocky Mountain area. EOG's major producing areas in the United States are in New Mexico and Texas. See ITEM 1, Business - Exploration and Production for further discussion regarding EOG's 2023 United States operations. 37 Trinidad.
During 2024, EOG's drilling and completion activities occurred primarily in the Delaware Basin play, Eagle Ford play and Rocky Mountain area. EOG's major producing areas in the United States are in New Mexico and Texas. See ITEM 1, Business - Exploration and Production for further discussion regarding EOG's 2024 United States operations. Trinidad.
On February 22, 2024, the Board declared a quarterly cash dividend on the common stock of $0.91 per share to be paid on April 30, 2024, to stockholders of record as of April 16, 2024.
On February 22, 2024, the Board of Directors (Board) declared a quarterly cash dividend on the common stock of $0.91 per share paid on April 30, 2024, to stockholders of record as of April 16, 2024.
In addition, EOG expects to spend a portion of its anticipated 2024 capital expenditures on leasing acreage, evaluating new prospects, gathering and processing infrastructure, transportation infrastructure and environmental projects.
In addition, EOG expects to spend a portion of its anticipated 2025 capital expenditures on leasing acreage, evaluating new prospects, gathering and processing infrastructure, transportation infrastructure and environmental projects.
The market price of crude oil and condensate, NGLs and natural gas in 2024 will impact the amount of cash generated from EOG's operating activities, which will in turn impact EOG's financial position.
The market price of crude oil and condensate, NGLs and natural gas in 2025 will impact the amount of cash generated from EOG's operating activities, which will in turn impact EOG's financial position.
On November 2, 2023, EOG announced an increase in such cash return commitment - specifically, a commitment, effective beginning with fiscal year 2024, to return a minimum of 70% of annual net cash provided by operating activities before certain balance sheet-related changes, less total capital expenditures, to stockholders, through a combination of quarterly dividends, special dividends and share repurchases.
In November 2023, EOG announced an increase in its cash return commitment - specifically, a commitment, effective beginning with fiscal year 2024, to return a minimum of 70% of annual net cash provided by operating activities before certain balance sheet-related changes, less total capital expenditures, to stockholders through a combination of quarterly dividends, special dividends and share repurchases.
For discussion of certain year-to-year comparisons between 2022 and 2021, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed on February 23, 2023, which is incorporated herein by reference.
For discussion of certain year-to-year comparisons between 2023 and 2022, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 22, 2024, which is incorporated herein by reference.
Several fields in the South East Coast Consortium (SECC) Block, Modified U(a) Block, Block 4(a), the Banyan Field and the Sercan Area have been developed and are producing natural gas which is sold to the National Gas Company of Trinidad and Tobago Limited and its subsidiary (NGC), and crude oil and condensate which is sold to Heritage Petroleum Company Limited.
Several fields in the South East Coast Consortium (SECC) Block, Modified U(a) Block, Block 4(a) and Banyan and Sercan Areas have been developed and are producing natural gas which is sold to the National Gas Company of Trinidad and Tobago Limited and its subsidiary, and crude oil and condensate which is sold to Heritage Petroleum Company Limited.
In addition, EOG enters into agreements with its service providers from time to time, when available and advantageous, to secure the costs and availability of certain drilling and completion services it utilizes as part of its operations.
In addition, EOG has entered into agreements with its service providers from time to time, when available and advantageous, to secure the costs and availability of certain drilling and completion services it utilizes as part of its operations.
As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity. At December 31, 2023, EOG maintained a strong financial and liquidity position, including $5.3 billion of cash and cash equivalents on hand and $1.9 billion of availability under its senior unsecured revolving credit facility (discussed below).
As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity. At December 31, 2024, EOG maintained a strong financial and liquidity position, including $7.1 billion of cash and cash equivalents on hand and $1.9 billion of availability under its senior unsecured revolving credit facility (discussed below).
On a volumetric basis, as calculated using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas, crude oil and condensate and NGLs production accounted for approximately 73% and 75% of EOG's United States production during 2023 and 2022, respectively.
On a volumetric basis, as calculated using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas, crude oil and condensate and NGLs production accounted for approximately 72% and 73% of EOG's United States production during 2024 and 2023, respectively.
EOG continues to evaluate other select crude oil and natural gas opportunities outside the United States, primarily by pursuing exploration opportunities in countries where indigenous crude oil and natural gas reserves have been identified.
EOG continues to evaluate other select exploration, development and exploitation opportunities outside the United States, primarily by pursuing opportunities in countries where crude oil and natural gas reserves have been identified.
Capital Structure One of management's key strategies is to maintain a strong balance sheet with a consistently below average debt-to-total capitalization ratio as compared to those in EOG's peer group. EOG's debt-to-total capitalization ratio was 12% at December 31, 2023 and 17% at December 31, 2022.
Capital Structure One of management's key strategies is to maintain a strong balance sheet with a consistently below average debt-to-total capitalization ratio as compared to those in EOG's peer group. EOG's debt-to-total capitalization ratio was 14% at December 31, 2024 and 12% at December 31, 2023.
For related discussion regarding our payment of dividends and share repurchases, see ITEM 1A, Risk Factors, and ITEM 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Dividend Declarations.
For discussion regarding EOG's payment of dividends and share repurchases, see ITEM 1A, Risk Factors, and ITEM 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 37 Dividend Declarations.
During the five years ended December 31, 2023, WTI crude oil spot prices have fluctuated from approximately $(36.98) per barrel to $123.64 per barrel, and Henry Hub natural gas spot prices have ranged from approximately $1.33 per MMBtu to $23.86 per MMBtu.
During the five years ended December 31, 2024, WTI crude oil spot prices have fluctuated from approximately $(36.98) per barrel to $123.64 per barrel, and Henry Hub natural gas spot prices have ranged from approximately $1.21 per MMBtu to $23.86 per MMBtu.
For information regarding EOG's crude oil, NGLs and natural gas financial commodity derivative contracts through February 16, 2024, see "Financial Commodity Derivative Transactions" above. Capital. EOG plans to continue to focus a substantial portion of its exploration and development expenditures in its major producing areas in the United States.
For information regarding EOG's crude oil, NGLs and natural gas financial commodity derivative contracts through February 21, 2025, see "Financial Commodity and Other Derivative Transactions" above. Capital. EOG plans to continue to focus a substantial portion of its exploration and development expenditures in its major producing areas in the United States.
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2024 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in wellhead natural gas price is approximately $27 million for net income and $35 million for pretax cash flows from operating activities.
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2025 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in natural gas price is approximately $33 million for net income and $42 million for pretax cash flows from operating activities.
The net effective tax rate for 2023 was unchanged from the prior year rate of 22%. Capital Resources and Liquidity Cash Flow The primary sources of cash for EOG during the three-year period ended December 31, 2023, were funds generated from operations and, to a lesser extent, proceeds from asset sales.
The net effective tax rate for 2024 was unchanged from the prior year rate of 22%. 42 Capital Resources and Liquidity Cash Flow The primary sources of cash for EOG during the three-year period ended December 31, 2024, were funds generated from operations and, to a lesser extent, net proceeds from the issuance of long-term debt and proceeds from asset sales.
During 2023, net proved crude oil and condensate and natural gas liquids (NGLs) reserves increased by 204 million barrels (MMBbl), and net proved natural gas reserves increased by 339 billion cubic feet or 57 MMBoe, in each case from December 31, 2022. Recent Developments Commodity Prices. Prices for crude oil and condensate, NGLs and natural gas have historically been volatile.
During 2024, net proved crude oil and condensate and natural gas liquids (NGLs) reserves increased by 218 million barrels (MMBbl), and net proved natural gas reserves increased by 192 billion cubic feet, or 32 MMBoe, in each case from December 31, 2023. Recent Developments Commodity Prices. Prices for crude oil and condensate, NGLs and natural gas have historically been volatile.
Changes to these factors may cause EOG's composite DD&A rate and expense to fluctuate from period to period. DD&A of the cost of other property, plant and equipment is generally calculated using the straight-line depreciation method over the useful lives of the assets. 42 DD&A expenses in 2023 decreased $50 million to $3,492 million from $3,542 million in 2022.
Changes to these factors may cause EOG's composite DD&A rate and expense to fluctuate from period to period. DD&A of the cost of other property, plant and equipment is generally calculated using the straight-line depreciation method over the useful lives of the assets. DD&A expenses in 2024 increased $616 million to $4,108 million from $3,492 million in 2023.
The following table presents the costs per barrel of oil equivalent (Boe) for the years ended December 31, 2023 and 2022: 2023 2022 Lease and Well $ 4.05 $ 4.02 Transportation Costs 2.66 2.91 Gathering and Processing Costs 1.84 1.87 Depreciation, Depletion and Amortization (DD&A) - Oil and Gas Properties 9.24 10.21 Other Property, Plant and Equipment 0.48 0.48 General and Administrative (G&A) 1.78 1.72 Interest Expense, Net 0.41 0.54 Total (1) $ 20.46 $ 21.75 (1) Total excludes exploration costs, dry hole costs, impairments, marketing costs and taxes other than income. 41 The primary factors impacting the cost components of per-unit rates of lease and well, transportation costs, gathering and processing costs, DD&A, G&A and interest expense, net for 2023 compared to 2022 are set forth below.
The following table presents the costs per barrel of oil equivalent (Boe) for the years ended December 31, 2024 and 2023: 2024 2023 Lease and Well $ 4.04 $ 4.05 Gathering, Processing and Transportation Costs (GP&T) 4.43 4.50 Depreciation, Depletion and Amortization (DD&A) - Oil and Gas Properties 10.04 9.24 Other Property, Plant and Equipment 0.53 0.48 General and Administrative (G&A) 1.72 1.78 Interest Expense, Net 0.36 0.41 Total (1) $ 21.12 $ 20.46 (1) Total excludes exploration costs, dry hole costs, impairments, marketing costs and taxes other than income. 40 The primary factors impacting the cost components of per-unit rates of lease and well, GP&T, DD&A, G&A and interest expense, net for 2024 compared to 2023 are set forth below.
During 2023, EOG funded $6.6 billion ($195 million of which was non-cash) in exploration and development and other property, plant and equipment expenditures (excluding asset retirement obligations), paid $3.4 billion in dividends to common stockholders, repaid the 2023 Notes and paid $1.0 billion to repurchase shares of common stock, primarily by utilizing net cash provided by its operating activities and cash on hand.
During 2024, EOG funded $6.7 billion ($109 million of which was non-cash) in exploration and development and other property, plant and equipment expenditures (excluding asset retirement obligations), paid $2.1 billion in dividends to common stockholders and paid $3.2 billion to repurchase shares of common stock, primarily by utilizing net cash provided by its operating activities and cash on hand.
On May 4, 2023, the Board declared a quarterly cash dividend on the common stock of $0.825 per share paid on July 31, 2023, to stockholders of record as of July 17, 2023.
On May 2, 2024, the Board declared a quarterly cash dividend on the common stock of $0.91 per share paid on July 31, 2024, to stockholders of record as of July 17, 2024.
On August 3, 2023, the Board declared a quarterly cash dividend on the common stock of $0.825 per share paid on October 31, 2023, to stockholders of record as of October 17, 2023.
On August 1, 2024, the Board declared a quarterly cash dividend on the common stock of $0.91 per share paid on October 31, 2024, to stockholders of record as of October 17, 2024.
In 2024, EOG expects to continue to focus on mitigating inflationary pressure on operating costs through efficiency improvements. Cash Requirements. Certain of EOG's capital expenditures and operating costs are subject to contracts with minimum commitments, including those that meet the definition of a lease under ASC "Leases (Topic 842)".
In 2025, EOG expects to continue to focus on mitigating any future inflationary pressures (such as from tariffs) on operating costs through efficiency improvements. 46 Cash Requirements. Certain of EOG's capital expenditures and operating costs are subject to contracts with minimum commitments, including those that meet the definition of a lease under ASC "Leases (Topic 842)".
(2) Leasehold acquisitions included $99 million, $127 million and $45 million related to non-cash property exchanges in 2023, 2022 and 2021, respectively. (3) Property acquisitions included $6 million, $26 million and $5 million related to non-cash property exchanges in 2023, 2022 and 2021, respectively.
(2) Leasehold acquisitions included $85 million, $99 million and $127 million related to non-cash property exchanges in 2024, 2023 and 2022, respectively. (3) Property acquisitions included $24 million, $6 million and $26 million related to non-cash property exchanges in 2024, 2023 and 2022, respectively.
EOG realized net income of $7,594 million during 2023 as compared to net income of $7,759 million for 2022. At December 31, 2023, EOG's total estimated net proved reserves were 4,498 million barrels of oil equivalent (MMBoe), an increase of 260 MMBoe from December 31, 2022.
EOG realized net income of $6,403 million during 2024 as compared to net income of $7,594 million for 2023. At December 31, 2024, EOG's total estimated net proved reserves were 4,748 million barrels of oil equivalent (MMBoe), an increase of 250 MMBoe from December 31, 2023.
G&A expenses of $640 million in 2023 increased $70 million from $570 million in 2022 primarily due to a net increase in costs associated with corporate support activities, including employee-related expenses and information systems and other services.
G&A expenses of $669 million in 2024 increased $29 million from $640 million in 2023 primarily due to a net increase in costs associated with corporate support activities, including employee-related expenses and information systems.
(4) Other property, plant and equipment in 2023 included $134 million related to the acquisition of a gathering and processing system in the Powder River Basin.
(5) Other property, plant and equipment included $137 million related to the acquisition of a gathering and processing system in South Texas and $134 million related to the acquisition of a gathering and processing system in the Powder River Basin in 2024 and 2023, respectively.
If the expected undiscounted future cash flows, based on EOG's estimates of (and assumptions regarding) future crude oil, NGLs and natural gas prices, operating costs, development expenditures, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
If the expected undiscounted future cash flows, based on EOG's estimate of (and assumptions regarding) future crude oil, NGLs and natural gas prices, operating costs, development expenditures, anticipated production from proved reserves and other relevant data (all Level 3 inputs as defined by the FASB's Fair Value Measurement Topic of the ASC (ASC 820)), are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
(5) Includes positive revenue adjustment of $0.76 per Mcf ($0.09 per Mcf of EOG's composite wellhead natural gas price) for the twelve months ended December 31, 2022, related to a price adjustment per a provision of the natural gas sales contract with NGC amended in July 2022 for natural gas sales during the period from September 2020 through June 2022. 40 Wellhead crude oil and condensate revenues in 2023 decreased $2,619 million, or 16%, to $13,748 million from $16,367 million in 2022, due primarily to a lower composite average wellhead crude oil and condensate price ($3,134 million), partially offset by an increase in production ($515 million).
(4) Includes positive revenue adjustment of $0.76 per Mcf ($0.09 per Mcf of EOG's composite natural gas price) for the twelve months ended December 31, 2022, related to a price adjustment per a provision of the natural gas sales contract with NGC amended in July 2022 for natural gas sales during the period from September 2020 through June 2022. 39 Crude oil and condensate revenues in 2024 increased $173 million, or 1%, to $13,921 million from $13,748 million in 2023, primarily due to an increase in production ($491 million), partially offset by a lower composite average crude oil and condensate price ($318 million).
In 2024, EOG anticipates the following cash requirements under these commitments (in millions): Finance Leases (1) $ 37 Operating Leases (1) 363 Leases Effective, Not Commenced (1) 55 Transportation and Storage Service Commitments (2) (3) 878 Purchase and Service Obligations (3) 873 Total Cash Requirements $ 2,206 (1) For more information on contracts that meet the definition of a lease under ASC "Leases (Topic 842)," see Note 18 to Consolidated Financial Statements.
In 2025, EOG anticipates the following cash requirements under these commitments (in millions): Finance Leases (1) $ 35 Operating Leases (1) 355 Leases Effective, Not Commenced (1) 13 Transportation and Storage Service Commitments (2) (3) 888 Purchase and Service Obligations (3) 632 Total Cash Requirements $ 1,923 (1) For more information on contracts that meet the definition of a lease under ASC "Leases (Topic 842)," see Note 17 to Consolidated Financial Statements.
Proved reserves represent estimated quantities of crude oil and condensate, NGLs and natural gas that geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made.
Proved reserves represent estimated quantities of crude oil and condensate, NGLs and natural gas that geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made. 47 The process of estimating quantities of proved oil and gas reserves is complex, requiring significant subjective decisions in the evaluation of available geological, engineering and economic data for each reservoir.
New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $77.61 per barrel and $2.74 per million British thermal units (MMBtu), respectively, representing decreases of 18% and 59%, respectively, from the average NYMEX prices for the year ended December 31, 2022.
New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $75.72 per barrel and $2.27 per million British thermal units (MMBtu), respectively, representing decreases of 2% and 17%, respectively, from the average NYMEX prices for the year ended December 31, 2023.
To further enhance the economics of these plays, EOG expects to continue to improve well performance and lessen inflationary pressure through efficiency gains and by locking in certain service costs for drilling and completion activities.
To further enhance the economics of these plays, EOG expects to continue to improve well performance and mitigate any future inflationary pressures (such as from tariffs) through efficiency gains and by locking in certain service costs for drilling and completion activities.
EOG recognized net gains on asset dispositions of $95 million in 2023 compared to net gains on asset dispositions of $74 million in 2022. 39 Wellhead volume and price statistics for the years ended December 31, 2023, 2022 and 2021 were as follows: Year Ended December 31 2023 2022 2021 Crude Oil and Condensate Volumes (MBbld) (1) United States 475.2 460.7 443.4 Trinidad 0.6 0.6 1.5 Other International (2) — — 0.1 Total 475.8 461.3 445.0 Average Crude Oil and Condensate Prices ($/Bbl) (3) United States $ 79.18 $ 97.22 $ 68.54 Trinidad 68.58 86.16 56.26 Other International (2) — — 42.36 Composite 79.17 97.21 68.50 Natural Gas Liquids Volumes (MBbld) (1) United States 223.8 197.7 144.5 Total 223.8 197.7 144.5 Average Natural Gas Liquids Prices ($/Bbl) (3) United States $ 23.07 $ 36.70 $ 34.35 Composite 23.07 36.70 34.35 Natural Gas Volumes (MMcfd) (1) United States 1,551 1,315 1,210 Trinidad 160 180 217 Other International (2) — — 9 Total 1,711 1,495 1,436 Average Natural Gas Prices ($/Mcf) (3) United States $ 2.70 $ 7.27 $ 4.88 Trinidad 3.65 4.43 (5) 3.40 Other International (2) — — 5.67 Composite 2.79 6.93 4.66 Crude Oil Equivalent Volumes (MBoed) (4) United States 957.5 877.5 789.6 Trinidad 27.3 30.7 37.7 Other International (2) — — 1.6 Total 984.8 908.2 828.9 Total MMBoe (4) 359.4 331.5 302.5 (1) Thousand barrels per day or million cubic feet per day, as applicable.
EOG recognized net gains on asset dispositions of $16 million in 2024 compared to net gains on asset dispositions of $95 million in 2023. 38 Volume and price statistics for the years ended December 31, 2024, 2023 and 2022 were as follows: Year Ended December 31 2024 2023 2022 Crude Oil and Condensate Volumes (MBbld) (1) United States 490.6 475.2 460.7 Trinidad 0.8 0.6 0.6 Total 491.4 475.8 461.3 Average Crude Oil and Condensate Prices ($/Bbl) (2) United States $ 77.42 $ 79.18 $ 97.22 Trinidad 64.43 68.58 86.16 Composite 77.40 79.17 97.21 Natural Gas Liquids Volumes (MBbld) (1) United States 245.9 223.8 197.7 Total 245.9 223.8 197.7 Average Natural Gas Liquids Prices ($/Bbl) (2) United States $ 23.40 $ 23.07 $ 36.70 Composite 23.40 23.07 36.70 Natural Gas Volumes (MMcfd) (1) United States 1,728 1,551 1,315 Trinidad 220 160 180 Total 1,948 1,711 1,495 Average Natural Gas Prices ($/Mcf) (2) United States $ 1.99 $ 2.70 $ 7.27 Trinidad 3.65 3.65 4.43 (4) Composite 2.17 2.79 6.93 Crude Oil Equivalent Volumes (MBoed) (3) United States 1,024.5 957.5 877.5 Trinidad 37.6 27.3 30.7 Total 1,062.1 984.8 908.2 Total MMBoe (3) 388.7 359.4 331.5 (1) Thousand barrels per day or million cubic feet per day, as applicable.
If the expected undiscounted future cash flows, based on EOG's estimates of (and assumptions regarding) future crude oil and natural gas prices, operating costs, development expenditures, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
If the expected undiscounted future cash flows, based on EOG's estimate of (and assumptions regarding) future crude oil, NGLs and natural gas prices, operating costs, development expenditures, anticipated production from proved reserves and other relevant data (all Level 3 inputs as defined by the FASB's Fair Value Measurement Topic of the ASC (ASC 820)), are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
Cash provided by financing activities in 2023 included proceeds from stock options exercised and employee stock purchase plan activity ($20 million). 44 Total Expenditures The table below sets out components of total expenditures for the years ended December 31, 2023, 2022 and 2021 (in millions): 2023 2022 2021 Expenditure Category Capital Exploration and Development Drilling (1) $ 4,803 $ 3,675 $ 2,864 Facilities 520 411 405 Leasehold Acquisitions (2) 207 186 215 Property Acquisitions (3) 16 419 100 Capitalized Interest 33 36 33 Subtotal 5,579 4,727 3,617 Exploration Costs 181 159 154 Dry Hole Costs 1 45 71 Exploration and Development Expenditures 5,761 4,931 3,842 Asset Retirement Costs 257 298 127 Total Exploration and Development Expenditures 6,018 5,229 3,969 Other Property, Plant and Equipment (4) 800 381 286 Total Expenditures $ 6,818 $ 5,610 $ 4,255 (1) Exploration and development drilling included $90 million related to non-cash development drilling in 2023.
Cash provided by financing activities in 2024 included long-term debt borrowings ($985 million) and proceeds from stock options exercised and employee stock purchase plan activity ($22 million). 43 Total Expenditures The table below sets out components of total expenditures for the years ended December 31, 2024, 2023 and 2022 (in millions): 2024 2023 2022 Expenditure Category Capital Exploration and Development Drilling (1) $ 4,534 $ 4,803 $ 3,675 Facilities 606 520 411 Leasehold Acquisitions (2) 230 207 186 Property Acquisitions (3) 33 16 419 Capitalized Interest 45 33 36 Subtotal 5,448 5,579 4,727 Exploration Costs 174 181 159 Dry Hole Costs 14 1 45 Exploration and Development Expenditures 5,636 5,761 4,931 Asset Retirement Costs (4) (2) 257 298 Total Exploration and Development Expenditures 5,634 6,018 5,229 Other Property, Plant and Equipment (5) 1,019 800 381 Total Expenditures $ 6,653 $ 6,818 $ 5,610 (1) Exploration and development drilling included $90 million related to non-cash development drilling in 2023.
Lease rentals are expensed as incurred. 49 When circumstances indicate that proved oil and gas properties may be impaired, EOG compares expected undiscounted future cash flows at a depreciation, depletion and amortization group level to the unamortized capitalized cost of the group.
When circumstances indicate that proved oil and gas properties may be impaired, EOG compares expected undiscounted future cash flows at a DD&A group level to the unamortized capitalized cost of the group.
Fair value is generally calculated by using the Income Approach described in the Fair Value Measurement Topic of the Financial Accounting Standards Board's Accounting Standards Codification (ASC). In certain instances, EOG utilizes accepted offers from third-party purchasers as the basis for determining fair value.
Fair value is generally calculated using the Income Approach described in ASC 820. In certain instances, EOG utilizes accepted offers from third-party purchasers as the basis for determining fair value.
The 2021 exploration and development expenditures of $3,842 million included $3,172 million in development drilling and facilities, $537 million in exploration, $100 million in property acquisitions and $33 million in capitalized interest. The level of exploration and development expenditures, including acquisitions, will vary in future periods depending on energy market conditions and other economic factors.
The 2022 exploration and development expenditures of $4,931 million included $3,962 million in development drilling and facilities, $514 million in exploration, $419 million in property acquisitions and $36 million in capitalized interest. The level of exploration and development expenditures, including acquisitions, will vary in future periods depending on energy market conditions and other economic factors.
EOG has placed an emphasis on applying its horizontal drilling and completion expertise to unconventional crude oil and natural gas plays. In 2023, EOG continued to focus on increasing drilling, completion and operating efficiencies, to improve well performance and, as is further discussed above, to mitigate inflationary pressures on its operating costs and capital expenditures.
EOG has placed an emphasis on applying its horizontal drilling and completion expertise to unconventional crude oil and natural gas plays. In 2024, EOG continued to focus on initiatives to increase its drilling, completion and operating efficiencies and improve well performance and, in turn, mitigate the inflationary pressures on its operating costs and capital expenditures experienced in prior periods.
The increase in production was primarily due to increased production of associated natural gas from the Permian Basin and higher deliveries in the Dorado gas play, partially offset by lower natural gas deliveries in Trinidad and decreased production of associated natural gas from the Eagle Ford play.
The increase in production was primarily due to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in Trinidad.
Net cash used in investing activities of $6,340 million in 2023 increased by $1,284 million from $5,056 million in 2022 primarily due to an increase in additions to oil and gas properties ($766 million); an increase in additions to other property, plant and equipment ($419 million) and a decrease in proceeds from the sales of assets ($209 million); partially offset by a decrease in net cash used in working capital associated with investing activities ($80 million) and a decrease in other investing activities ($30 million).
Net cash used in investing activities of $5,967 million in 2024 decreased by $373 million from $6,340 million in 2023 primarily due to a decrease in net cash used in working capital associated with investing activities ($677 million) and a decrease in additions to oil and gas properties ($32 million); partially offset by an increase in additions to other property, plant and equipment ($219 million) and a decrease in proceeds from the sales of assets ($117 million).
EOG's composite average wellhead natural gas price decreased 60% to $2.79 per Mcf in 2023 compared to $6.93 per Mcf in 2022. Natural gas deliveries in 2023 increased 14% to 1,711 MMcfd as compared to 1,495 MMcfd in 2022.
EOG's composite average natural gas price decreased 22% to $2.17 per Mcf in 2024 compared to $2.79 per Mcf in 2023. Natural gas deliveries in 2024 increased 14% to 1,948 MMcfd as compared to 1,711 MMcfd in 2023.
Crude oil, NGLs and natural gas prices have exhibited significant volatility in the past, and EOG expects that volatility to continue in the future. Consequently, material revisions (upward or downward) to existing reserve estimates may occur from time to time.
Proved reserves are estimated using a trailing 12-month average price, in accordance with SEC rules. Crude oil, NGLs and natural gas prices have exhibited significant volatility in the past, and EOG expects that volatility to continue in the future. Consequently, material revisions (upward or downward) to existing reserve estimates may occur from time to time.
The initiatives EOG has undertaken (and continues to undertake) to increase its drilling, completion and operating efficiencies and improve the performance of its wells and, in turn, mitigate such inflationary pressures, include (among others): (i) EOG's downhole drilling motor program, which has resulted in increased footage drilled per day and, in turn, reduced drilling times; (ii) enhanced techniques for completing its wells, which has resulted in increased footage completed per day and pumping hours per day; and (iii) EOG's self-sourced sand program, which has resulted in continued cost savings for the sand utilized in its well completion operations.
Such initiatives include (among others): (i) EOG's downhole drilling motor program, which has resulted in increased footage drilled per day and, in turn, reduced drilling times; (ii) enhanced techniques for completing its wells, which has resulted in increased footage completed per day and pumping hours per day; (iii) drilling extended laterals, which has resulted in a decrease in cost per foot drilled; and (iv) EOG's self-sourced sand program, which has resulted in cost savings for the sand utilized in its well completion operations.
The decrease in taxes other than income was primarily due to decreased severance/production taxes ($357 million) and decreased ad valorem/property taxes ($34 million), partially offset by decreased state severance tax refunds ($99 million), all in the United States. Other income, net, was $234 million in 2023 compared to other income, net, of $114 million in 2022.
The decrease in taxes other than income was primarily due to increased state severance tax refunds ($18 million), decreased ad valorem/property taxes ($14 million) and decreased severance/production taxes ($5 million), all in the United States. Other income, net, was $274 million in 2024 compared to other income, net, of $234 million in 2023.
Operating and Other Expenses During 2023, operating expenses of $14,583 million were $1,153 million lower than the $15,736 million incurred during 2022.
Operating and Other Expenses During 2024, operating expenses of $15,616 million were $1,033 million higher than the $14,583 million incurred during 2023.
Gathering and processing costs represent operating and maintenance expenses and administrative expenses associated with operating EOG's gathering and processing assets as well as natural gas processing fees and certain NGLs fractionation fees paid to third parties. EOG pays third parties to process the majority of its natural gas production to extract NGLs.
GP&T costs include operating and maintenance expenses from EOG-owned assets, fees paid to third-party operators and administrative expenses associated with operating EOG's GP&T assets. EOG pays third parties to process the majority of its natural gas production to extract NGLs.
Crude Oil Financial Price Swap Contracts Contracts Sold Contracts Purchased Period Settlement Index Volume (MBbld) Weighted Average Price ($/Bbl) Volume (MBbld) Weighted Average Price ($/Bbl) January - March 2023 (closed) NYMEX WTI 95 $ 67.90 6 $ 102.26 April - May 2023 (closed) NYMEX WTI 91 67.63 2 98.15 June 2023 (closed) NYMEX WTI 2 69.10 2 98.15 Natural Gas Financial Price Swap Contracts Contracts Sold Period Settlement Index Volume (MMBtud in thousands) Weighted Average Price ($/MMBtu) January - December 2023 (closed) NYMEX Henry Hub 300 $ 3.36 January - February 2024 (closed) NYMEX Henry Hub 725 3.07 March - December 2024 NYMEX Henry Hub 725 3.07 January - December 2025 NYMEX Henry Hub 725 3.07 46 Natural Gas Basis Swap Contracts Contracts Sold Period Settlement Index Volume (MMBtud in thousands) Weighted Average Price Differential ($/MMBtu) January - December 2023 (closed) NYMEX Henry Hub HSC Differential (1) 135 $ 0.01 January - February 2024 (closed) NYMEX Henry Hub HSC Differential 10 0.00 March - December 2024 NYMEX Henry Hub HSC Differential 10 0.00 January - December 2025 NYMEX Henry Hub HSC Differential 10 0.00 _________________ (1) This settlement index is used to fix the differential between pricing at the Houston Ship Channel and NYMEX Henry Hub prices.
Natural Gas Financial Price Swap Contracts Contracts Sold Period Settlement Index Volume (MMBtud in thousands) Weighted Average Price ($/MMBtu) January - December 2024 (closed) NYMEX Henry Hub 725 3.07 January - February 2025 (closed) NYMEX Henry Hub 725 3.07 March - December 2025 NYMEX Henry Hub 725 3.07 Natural Gas Basis Swap Contracts Contracts Sold Period Settlement Index Volume (MMBtud in thousands) Weighted Average Price Differential ($/MMBtu) January - December 2024 (closed) NYMEX Henry Hub HSC Differential (1) 10 0.00 January - February 2025 (closed) NYMEX Henry Hub HSC Differential 10 0.00 March - December 2025 NYMEX Henry Hub HSC Differential 10 0.00 _________________ (1) This settlement index is used to fix the differential between pricing at the Houston Ship Channel and NYMEX Henry Hub prices.
Unproved properties with individually significant acquisition costs are reviewed individually for impairment. When circumstances indicate that a proved property may be impaired, EOG compares expected undiscounted future cash flows at a DD&A group level to the unamortized capitalized cost of the group.
If the unproved properties are determined to be productive, the appropriate related costs are transferred to proved oil and gas properties. When circumstances indicate that proved oil and gas properties may be impaired, EOG compares expected undiscounted future cash flows at a DD&A group level to the unamortized capitalized cost of the group.
Lease and well expenses increased in the United States primarily due to increased operating activities resulting from increased production. Transportation costs represent costs associated with the delivery of hydrocarbon products from the lease or an aggregation point on EOG's gathering system to a downstream point of sale.
Lease and well expenses increased in the United States primarily due to increased operating activities resulting from increased production. GP&T costs represent costs to process and deliver hydrocarbon products from the lease to a downstream point of sale.
On November 2, 2023, the Board (i) increased the quarterly cash dividend on the common stock from the previous $0.825 per share to $0.91 per share, effective beginning with the dividend paid on January 31, 2024, to stockholders of record as of January 17, 2024, and (ii) declared a special cash dividend on the common stock of $1.50 per share, paid on December 29, 2023, to stockholders of record as of December 15, 2023.
On November 7, 2024, the Board increased the quarterly cash dividend on the common stock from the previous $0.91 per share to $0.975 per share, effective beginning with the dividend paid on January 31, 2025, to stockholders of record as of January 17, 2025.
Market prices for NGLs are influenced by the components extracted, including ethane, propane and butane and natural gasoline, among others, and the respective market pricing for each component. Inflation Considerations; Availability of Materials, Labor & Services.
Market prices for NGLs are influenced by the components extracted, including ethane, propane and butane and natural gasoline, among others, and the respective market pricing for each component. Inflationary Pressures, Operational Efficiencies & Related Initiatives/Actions.
Impairments include: amortization of unproved oil and gas property costs as well as impairments of proved oil and gas properties; other property, plant and equipment; and other assets. Unproved properties with acquisition costs that are not individually significant are aggregated, and the portion of such costs estimated to be nonproductive is amortized over the remaining lease term.
Unproved properties with acquisition costs that are not individually significant are aggregated, and the portion of such costs estimated to be nonproductive is amortized over the remaining lease term. Unproved properties with individually significant acquisition costs are reviewed individually for impairment.
Pursuant to this strategy, each prospective drilling location is evaluated by its estimated rate of return. This strategy is intended to enhance the generation of cash flow and earnings from each unit of production on a cost-effective basis, allowing EOG to maximize long-term shareholder value and maintain a strong balance sheet.
EOG evaluates rate of return, net present value, margins, payback period and other key metrics. This strategy is intended to enhance the generation of cash flow and earnings from each unit of production on a cost-efficient basis, allowing EOG to maximize long-term growth in shareholder value and maintain a strong balance sheet.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeITEM 7A. Quantitative and Qualitative Disclosures About Market Risk The information required by this Item is incorporated by reference from Item 7 of this report, specifically the information set forth under the captions "Financial Commodity Derivative Transactions," "Financing" and "Outlook" in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources and Liquidity."
Biggest changeITEM 7A. Quantitative and Qualitative Disclosures About Market Risk The information required by this Item is incorporated by reference from Item 7 of this report, specifically the information set forth under the captions "Recent Developments," "Financial Commodity and Other Derivative Transactions," "Financing" and "Outlook" in "Management's Discussion and Analysis of Financial Condition and Results of Operations."

Other EOG 10-K year-over-year comparisons