Q2 2026 EOG Resources Inc Earnings Call

August 5, 2026

Speaker #1: This is Q2 2026, earnings results conference call. As a reminder, this call is being recorded. For opening remarks and introductions, I will turn the call over to EOG Resources Vice President of Investor Relations, Mr. Piers Hammond.

Speaker #1: Please go ahead, sir.

Speaker #2: Resources Q2 2026 earnings us for the EOG Good morning, and thank you for joining conference call. An updated investor presentation has been posted to the Investor Relations section of our website, and we will reference certain slides during today's discussion.

Speaker #2: A replay of this call will be available on our website beginning later today. As a reminder, this conference call includes forward-looking statements. Factors that could cause our actual results to differ materially from those in our forward-looking statements have been outlined in the earnings release, and EOG's SEC filings.

Speaker #2: This conference call may also contain certain historical and forward-looking non-GAAP financial measures. Definitions and reconciliation schedules for these non-GAAP measures and related discussion can be found on the Investor Relations section of EOG's website.

Operator: Good day, everyone, and welcome to EOG Resources' Q2 2026 earnings results Conference Call. As a reminder, this call is being recorded. For opening remarks and introductions, I will turn the call over to EOG Resources' Vice President of Investor Relations, Mr. Pearce Hammond. Please go ahead, sir.

Operator: Good day, everyone, and welcome to EOG Resources' Q2 2026 Earnings Results Conference Call. As a reminder, this call is being recorded. For opening remarks and introductions, I will turn the call over to EOG Resources' Vice President of Investor Relations, Mr. Pearce Hammond. Please go ahead, sir.

Speaker #1: Good day, everyone, and welcome to EOG RESOURCES Q2 2026 earnings results conference call. As a reminder, this call is being recorded. For opening remarks and introductions, I will turn the call over to EOG RESOURCES Vice President of Investor Relations, Mr. Pearce Hammond.

Speaker #2: In addition, any reserve estimates on this conference call may include estimated potential reserves, as well as estimated resource potential, not necessarily calculated in accordance with the SEC's reserve reporting guidelines.

Speaker #1: Please go ahead, sir.

Speaker #2: Good morning, and thank you for joining us for the EOG RESOURCES Q2 2026 earnings conference call. An updated investor presentation has been posted to the investor relations section of our website, and we will reference certain slides during today's discussion.

Pearce Hammond: Good morning, and thank you for joining us for the EOG Resources Q2 2026 earnings Conference Call. An updated investor presentation has been posted to the investor relations section of our website. We will reference certain slides during today's discussion. A replay of this call will be available on our website beginning later today. As a reminder, this Conference Call includes forward-looking statements. Factors that could cause our actual results to differ materially from those in our forward-looking statements have been outlined in the earnings release and EOG's SEC filings. This Conference Call may also contain certain historical and forward-looking non-GAAP financial measures. Definitions and reconciliation schedules for these non-GAAP measures and related discussion can be found on the investor relations section of EOG's website.

Pearce Hammond: Good morning, and thank you for joining us for the EOG Resources Q2 2026 Earnings Conference Call. An updated investor presentation has been posted to the investor relations section of our website. We will reference certain slides during today's discussion. A replay of this call will be available on our website beginning later today. As a reminder, this Conference Call includes forward-looking statements.

Speaker #2: Participating on the call this morning are: Ezra Jacob, Chairman and Chief Executive Officer; Jeff Leitzel, Chief Operating Officer; and Jansen, Chief Financial Officer; and Keith Trasko, Senior Vice President, Exploration and Production.

Speaker #2: Here's Ezra.

Speaker #3: Thanks, Piers. Good morning, and thank you for joining us. EOG delivered exceptional Q2 results, with adjusted earnings per share, adjusted cash flow per share, and free cash flow all reaching record levels.

Pearce Hammond: Factors that could cause our actual results to differ materially from those in our forward-looking statements have been outlined in the earnings release and EOG's SEC filings. This Conference Call may also contain certain historical and forward-looking non-GAAP financial measures. Definitions and reconciliation schedules for these non-GAAP measures and related discussion can be found on the investor relations section of EOG's website.

Speaker #3: Robust oil prices provided a meaningful tailwind, but these results reflect something more durable: consistent high-quality execution across the company. We expect that operational momentum to carry through the second half of the year.

Speaker #3: Our low-cost, multi-base and asset-based, and peer-leading balance sheet place EOG in a strong position to navigate today's dynamic macro environment. Consistent with our commitment to discipline capital allocation, and enhancing shareholder value, and underscoring our confidence in the strength of EOG's business, we return just over $1.8 billion to shareholders in the Q2 through our regular dividend and opportunistic share repurchases.

Pearce Hammond: In addition, any reserve estimates on this Conference Call may include estimated potential reserves, as well as estimated resource potential, not necessarily calculated in accordance with the SEC's reserve reporting guidelines. Participating on the call this morning are Ezra Yacob, Chairman and Chief Executive Officer; Jeff Leitzell, Chief Operating Officer; Ann Janssen, Chief Financial Officer; and Keith Trasko, Senior Vice President, Exploration and Production. Here's Ezra.

Speaker #2: Participating on the call this morning are: Ezra Yacob, Chairman and Chief Executive Officer; Jeff Leitzell, Chief Operating Officer; Ann Janssen, Chief Financial Officer; and Keith Trasco, Senior Vice President, Exploration and Production.

Speaker #3: Reflecting our conviction in EOG's value and our growing opportunity set. Comparing our performance to a recent quarter with similar oil prices, offers a useful lens for appreciating how substantially EOG's business has improved.

Speaker #2: Here's Ezra.

Speaker #3: Thanks, Pearce. Good morning, and thank you for joining us. EOG delivered exceptional Q2 results, with adjusted earnings per share, adjusted cash flow per share, and free cash flow all reaching record levels.

Ezra Yacob: Thanks, Pearce. Good morning, and thank you for joining us. EOG delivered exceptional Q2 results, with adjusted earnings per share, adjusted cash flow per share, and free cash flow all reaching record levels. Robust oil prices provided a meaningful tailwind. These results reflect something more durable: consistent, high-quality execution across the company. We expect that operational momentum to carry through the H2 of the year. Our low-cost, multi-basin asset base and peer-leading balance sheet place EOG in a strong position to navigate today's dynamic macro environment. Consistent with our commitment to disciplined capital allocation and enhancing shareholder value and underscoring our confidence in the strength of EOG's business, we returned just over $1.8 billion to shareholders in the Q2 through our regular dividend and opportunistic share repurchases. Reflecting our conviction in EOG's value and our growing opportunity set.

Speaker #3: Since the first quarter of 2022, when the Russia-Ukraine war broke out, EOG has grown oil production 22%, total production by 60%, adjusted cash flow per share by 44%, and the regular dividend by 36%.

Speaker #3: Robust oil prices provided a meaningful tailwind, but these results reflect something more durable: consistent, high-quality execution across the company. We expect that operational momentum to carry through the second half of the year.

Speaker #3: This impressive progress is underpinned by several achievements. Over the same period, we have forged a stronger path to future value creation by improving our multi-base and portfolio, with two additional foundational assets: expanding a deep exploration pipeline, including high-quality international and conventional opportunities; and enhancing our marketing flexibility and end-market diversification.

Speaker #3: Our low-cost, multi-basin asset base and peer-leading balance sheet place EOG in a strong position to navigate today's dynamic macro environment. Consistent with our commitment to disciplined capital allocation and enhancing shareholder value—and underscoring our confidence in the strength of EOG's business—we returned just over $1.8 billion to shareholders in the second quarter through our regular dividend and opportunistic share repurchases.

Ezra Yacob: Our low-cost, multi-basin asset base and peer-leading balance sheet place EOG in a strong position to navigate today's dynamic macro environment. Consistent with our commitment to disciplined capital allocation and enhancing shareholder value and underscoring our confidence in the strength of EOG's business, we returned just over $1.8 billion to shareholders in the Q2 through our regular dividend and opportunistic share repurchases. Reflecting our conviction in EOG's value and our growing opportunity set.

Speaker #3: We accomplished all of this while preserving a pristine balance sheet and paying a growing regular dividend, which has been stress-tested across a range of commodity price scenarios.

Speaker #3: Taken together, these accomplishments are a clear demonstration of EOG's business model in action. Turning to the oil macro outlook, supply disruptions associated with the Iran conflict continue to weigh on global inventories.

Ezra Yacob: Comparing our performance to a recent quarter with similar oil prices offers a useful lens for appreciating how substantially EOG's business has improved. Since Q1 2022, when the Russia-Ukraine war broke out, EOG has grown oil production 22%, total production by 60%, adjusted cash flow per share by 44%, and the regular dividend by 36%. This impressive progress is underpinned by several achievements. Over the same period, we have forged a stronger path to future value creation by improving our multi-basin portfolio with two additional foundational assets, expanding a deep exploration pipeline, including high-quality international and conventional opportunities, and enhancing our marketing flexibility and end market diversification. We accomplished all of this while preserving a pristine balance sheet and paying a growing regular dividend, which has been stress-tested across a range of commodity price scenarios.

Speaker #3: With the trajectory and duration of the conflict remaining key variables in shaping near-term market conditions, while we expect oil prices to remain volatile given the fluid nature of the war, we remain constructive on oil market fundamentals for several reasons.

Speaker #3: This impressive progress is underpinned by several achievements. Over the same period, we have forged a stronger path to future value creation by improving our multi-basin portfolio, with two additional foundational assets: expanding a deep exploration pipeline, including high-quality international and conventional opportunities; and enhancing our marketing flexibility and end-market diversification.

Speaker #3: First, the disruption of crude and product supply from the Middle East has resulted in a meaningful reduction in commercial inventories, and strategic petroleum reserves.

Ezra Yacob: Over the same period, we have forged a stronger path to future value creation by improving our multi-basin portfolio with two additional foundational assets, expanding a deep exploration pipeline, including high-quality international and conventional opportunities, and enhancing our marketing flexibility and end market diversification. We accomplished all of this while preserving a pristine balance sheet and paying a growing regular dividend, which has been stress-tested across a range of commodity price scenarios.

Speaker #3: Second, while reduced demand has partially offset supply loss in the near term, we do not view this as a structural shift, rather it reflects temporary rationing that we expect to normalize over time.

Speaker #3: Third, energy security has emerged as a strategic priority across many nations, and we expect this to translate into structurally higher oil demand over time, as countries look to strengthen their energy positions and restock both commercial and strategic petroleum reserves.

Speaker #3: We accomplished all of this while preserving a pristine balance sheet and paying a growing regular dividend, which has been stress-tested across a range of commodity price scenarios.

Ezra Yacob: Taken together, these accomplishments are a clear demonstration of EOG's business model in action. Turning to the oil macro outlook, supply disruptions associated with the Iran conflict continue to weigh on global inventories, with the trajectory and duration of the conflict remaining key variables in shaping near-term market conditions. While we expect oil prices to remain volatile, given the fluid nature of the war, we remain constructive on oil market fundamentals for several reasons. First, the disruption of crude and product supply from the Middle East has resulted in a meaningful reduction in commercial inventories and strategic petroleum reserves. Second, while reduced demand has partially offset supply loss in the near term, we do not view this as a structural shift. Rather, it reflects temporary rationing that we expect to normalize over time.

Speaker #3: Taken together, these factors support oil prices remaining above mid-cycle levels in both the near and medium term, with price volatility likely skewed to the upside.

Speaker #3: On natural gas, we continue to see the North American market evolve from a seasonal commodity story into a strategic energy resource. While storage levels will continue to fluctuate year to year, the underlying demand trajectory is strengthening, as LNG exports, electricity demand, industrial growth, and grid reliability increasingly compete for domestic supply.

Speaker #3: First, the disruption of crude and product supply from the Middle East has resulted in a meaningful reduction in commercial inventories and strategic petroleum reserves.

Ezra Yacob: First, the disruption of crude and product supply from the Middle East has resulted in a meaningful reduction in commercial inventories and strategic petroleum reserves. Second, while reduced demand has partially offset supply loss in the near term, we do not view this as a structural shift. Rather, it reflects temporary rationing that we expect to normalize over time.

Speaker #3: Our medium to long-term outlook remains constructive, and our deliberate investment in building a low-cost natural gas position, with access to premium markets and as a complement to our core oil business, leaves us well-positioned to capitalize on this demand growth.

Speaker #3: Second, while reduced demand has partially offset supply loss in the near term, we do not view this as a structural shift. Rather, it reflects temporary rationing that we expect to normalize over time.

Ezra Yacob: Third, energy security has emerged as a strategic priority across many nations. We expect this to translate into structurally higher oil demand over time as countries look to strengthen their energy positions and restock both commercial and strategic petroleum reserves. Taken together, these factors support oil prices remaining above mid-cycle levels in both the near and medium term, with price volatility likely skewed to the upside. On natural gas, we continue to see the North American market evolve from a seasonal commodity story into a strategic energy resource. While storage levels will continue to fluctuate year to year, the underlying demand trajectory is strengthening as LNG exports, electricity demand, industrial growth, and grid reliability increasingly compete for domestic supply.

Speaker #3: Regardless of commodity prices, EOG's commitment is to deliver sustainable value creation through industry cycles. We pursue that by focusing 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.

Speaker #3: Taken together, these factors support oil prices remaining above mid-cycle levels in both the near and medium term, with price volatility likely skewed to the upside.

Speaker #3: This mission rests on four pillars: capital discipline, operational excellence, sustainability, and culture. Today I want to discuss in greater detail one area of our operational excellence pillar that is significant differentiator versus peers: organic exploration.

Ezra Yacob: On natural gas, we continue to see the North American market evolve from a seasonal commodity story into a strategic energy resource. While storage levels will continue to fluctuate year to year, the underlying demand trajectory is strengthening as LNG exports, electricity demand, industrial growth, and grid reliability increasingly compete for domestic supply.

Speaker #3: Organic exploration has been central to EOG's success since the company's founding. By identifying opportunities early and building positions ahead of broader market interests, we are able to create significant long-term returns.

Speaker #3: Supported by a proprietary database, and the knowledge gained from thousands of wells drilled across a wide range of geologic settings, EOG has a proven ability to discover and develop new resource opportunities.

Ezra Yacob: Our medium to long-term outlook remains constructive. Our deliberate investment in building a low-cost natural gas position with access to premium markets and as a complement to our core oil business, leaves us well-positioned to capitalize on this demand growth. Regardless of commodity prices, EOG's commitment is to deliver sustainable value creation through industry cycles. We pursue that by focusing 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. This mission rests on four pillars: capital discipline, operational excellence, sustainability, and culture. Today, I want to discuss in greater detail one area of our operational excellence pillar that is a significant differentiator versus peers, organic exploration. Organic exploration has been central to EOG's success since the company's founding.

Speaker #3: Today, that expertise is demonstrated in international and conventionals, where EOG is the first mover working in close partnership with ADNOC in the UAE and BAPCO in Bahrain.

Ezra Yacob: We pursue that by focusing 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. This mission rests on four pillars: capital discipline, operational excellence, sustainability, and culture.

Speaker #3: For national oil companies looking to develop their unconventional resources, we offer a compelling partnership. EOG brings technical leadership, a proven track record, and the ability to accelerate their development programs.

Speaker #3: This mission rests on four pillars: capital discipline, operational excellence, sustainability, and culture. Today, I want to discuss in greater detail one area of our operational excellence pillar that is significant differentiator versus peers.

Speaker #3: Our UAE exploration program provides a convincing proof point. We drilled completed and brought online two one-mile lateral wells in June, and are extremely pleased with the results.

Ezra Yacob: Today, I want to discuss in greater detail one area of our operational excellence pillar that is a significant differentiator versus peers, organic exploration. Organic exploration has been central to EOG's success since the company's founding.

Speaker #3: During the first 30 days of production operations, the wells produced on average over 25,000 barrels of oil per well. Both wells are naturally flowing up casing, and would be placed on artificial lift in the coming weeks.

Speaker #3: Organic exploration. Organic exploration has been central to EOG's success since the company's founding. By identifying opportunities early and building positions ahead of broader market interest, we are able to create significant long-term returns.

Ezra Yacob: By identifying opportunities early and building positions ahead of broader market interest, we are able to create significant long-term returns. Supported by a proprietary database and the knowledge gained from thousands of wells drilled across a wide range of geologic settings, EOG has a proven ability to discover and develop new resource opportunities. Today, that expertise is demonstrated in international unconventionals where EOG is a first mover working in close partnership with ADNOC in the UAE and BAPCO in Bahrain. For national oil companies looking to develop their unconventional resources, we offer a compelling partnership. EOG brings technical leadership, a proven track record, and the ability to accelerate their development programs. Our UAE exploration program provides a convincing proof point. We drilled, completed, and brought online two one-mile lateral wells in June and are extremely pleased with the results.

Speaker #3: Early well results are exceeding our expectations during the natural flow period. There is still meaningful work ahead in the UAE, given the size of the 900,000-acre concession, but we are extremely encouraged by what we are seeing in the early days of this important project.

Speaker #3: Today, that expertise is demonstrated in international and conventionals, where EOG is a first mover working in close partnership with ADNOC in the UAE and BAPCO in Bahrain.

Speaker #3: Confirming that EOG's competitive advantage is not confined to a specific geographical location, it is embedded in our technical expertise and resource development approach. On the domestic side, we continue to run a robust exploration program, testing multiple plays across the U.S.

Ezra Yacob: For national oil companies looking to develop their unconventional resources, we offer a compelling partnership. EOG brings technical leadership, a proven track record, and the ability to accelerate their development programs. Our UAE exploration program provides a convincing proof point. We drilled, completed, and brought online two one-mile lateral wells in June and are extremely pleased with the results.

Speaker #3: Each domestic division is actively advancing its own pipeline of exploration prospects, and we look forward to sharing updates as those programs mature. In summary, we're off to a strong start in 2026, and are well-positioned to execute in the current macro environment and beyond.

Speaker #3: Our UAE exploration program provides a convincing proof point. We drilled completed and brought online two one-mile lateral wells in June, and are extremely pleased with the results.

Ezra Yacob: During the first 30 days of production operations, the wells produced on average over 25,000 barrels of oil per well. Both wells are naturally flowing up casing and will be placed on artificial lift in the coming weeks. Early well results are exceeding our expectations during the natural flow period. There is still meaningful work ahead in the UAE given the size of the 900,000-acre concession, we are extremely encouraged by what we are seeing in the early days of this important project, confirming that EOG's competitive advantage is not confined to a specific geographical location. It is embedded in our technical expertise and resource development approach. On the domestic side, we continue to run a robust exploration program, testing multiple plays across the US. Each domestic division is actively advancing its own pipeline of exploration prospects, and we look forward to sharing updates as those programs mature.

Speaker #3: We remain focused on delivering sustainable free cash flow, maintaining operational excellence, and creating long-term value for shareholders. I'll now turn it over to Anne for details on our financial performance.

Speaker #2: Thank you, Ezra. EOG delivered another quarter of outstanding financial results, which speak to the durability and discipline at the core of our business model.

Ezra Yacob: There is still meaningful work ahead in the UAE given the size of the 900,000-acre concession, we are extremely encouraged by what we are seeing in the early days of this important project, confirming that EOG's competitive advantage is not confined to a specific geographical location. It is embedded in our technical expertise and resource development approach.

Speaker #2: In the second quarter, we delivered adjusted earnings per share of $5.07, and adjusted cash flow from operations per share of $8.29, generating free cash flow of $2.8 billion.

Speaker #3: Confirming that EOG’s competitive advantage is not confined to a specific geographical location—it is embedded in our technical expertise and resource development approach. On the domestic side, we continue to run a robust exploration program, testing multiple plays across the U.S.

Speaker #2: A record performance and a direct reflection of our low-cost operating structure and capital efficiency. We returned just over $1.8 billion to shareholders during the second quarter.

Ezra Yacob: On the domestic side, we continue to run a robust exploration program, testing multiple plays across the US. Each domestic division is actively advancing its own pipeline of exploration prospects, and we look forward to sharing updates as those programs mature.

Speaker #3: Each domestic division is actively advancing its own pipeline of exploration prospects, and we look forward to sharing updates as those programs mature. In summary, we're off to a strong start in 2026 and are well-positioned to execute in the current macro environment and beyond.

Speaker #2: $540 million to our regular dividend, and $1.3 billion in share repurchases. The foundation of our cash return remains our regular dividend, which we have not cut or suspended in 28 years.

Ezra Yacob: In summary, we're off to a strong start in 2026 and are well-positioned to execute in the current macro environment and beyond. We remain focused on delivering sustainable free cash flow, maintaining operational excellence, and creating long-term value for shareholders.

Speaker #2: This is an impressive track record in any industry, and demonstrates our commitment to return value back to shareholders. We continue to supplement the regular dividend with share buybacks.

Jeff Leitzell: I'll now turn it over to Ann for details on our financial performance.

Speaker #2: With 11.7 billion remaining under the share repurchase authorization at June 30th, we have substantial capacity for continued opportunistic buybacks. Through the first half of the year, total shareholder returns stand at approximately $2.8 billion, and we reiterate our commitment to returning at least 70% of annual free cash flow to shareholders to investors in 2026.

Speaker #1: Thank you, Ezra. EOG delivered another quarter of outstanding financial results, which speak to the durability and discipline at the core of our business model.

Ann Janssen: Thank you, Ezra. EOG delivered another quarter of outstanding financial results, which speak to the durability and discipline at the core of our business model. In Q2, we delivered adjusted earnings per share of $5.07, an adjusted cash flow from operations per share of $8.29, generating free cash flow of $2.8 billion, a record performance and a direct reflection of our low-cost operating structure and capital efficiency. We returned just over $1.8 billion to shareholders during Q2, $540 million to our regular dividend and $1.3 billion in share repurchases. The foundation of our cash return remains our regular dividend, which we have not cut or suspended in 28 years. This is an impressive track record in any industry and demonstrates our commitment to return value back to shareholders. We continue to supplement the regular dividend with share buybacks.

Speaker #1: In the second quarter, we delivered adjusted earnings per share of $5.07 and adjusted cash flow from operations per share of $8.29, generating free cash flow of $2.8 billion.

Speaker #2: Our balance sheet remains a strategic asset. We close the quarter with $4.9 billion in cash, up approximately $1.1 billion from the end of the first quarter, and with net debt of $3 billion.

Speaker #1: A record performance, and a direct reflection of our low-cost operating structure and capital efficiency. We returned just over $1.8 billion to shareholders during the second quarter.

Ann Janssen: We returned just over $1.8 billion to shareholders during Q2, $540 million to our regular dividend and $1.3 billion in share repurchases. The foundation of our cash return remains our regular dividend, which we have not cut or suspended in 28 years. This is an impressive track record in any industry and demonstrates our commitment to return value back to shareholders. We continue to supplement the regular dividend with share buybacks.

Speaker #1: $540 million to our regular dividend and $1.3 billion in share repurchases. The foundation of our cash return remains our regular dividend, which we have not cut or suspended in 28 years.

Speaker #2: This financial strength continues to provide a stable foundation as we navigate dynamic macro environment shifts. At strip pricing and using guidance midpoints, our 2026 plan generates $8 billion in free cash flow.

Speaker #1: This is an impressive track record in any industry, and demonstrates our commitment to return value back to shareholders. We continue to supplement the regular dividend with share buybacks.

Speaker #2: Our 2026 program funds production growth, domestic and international exploration, and a peer-leading regular dividend, all at a WTI break-even price below $50 per barrel.

Speaker #1: With 11.7 billion remaining under the share repurchase authorization at June 30th, we have substantial capacity for continued opportunistic buybacks. Through the first half of the year, total shareholder returns stand at approximately $2.8 billion, and we reiterate our commitment to returning at least 70% of annual free cash flow to shareholders to investors in 2026.

Ann Janssen: With $11.7 billion remaining under the share repurchase authorization at 30 June, we have substantial capacity for continued opportunistic buybacks. Through H1, total shareholder returns stand at approximately $2.8 billion, and we reiterate our commitment to returning at least 70% of annual free cash flow to investors in 2026. Our balance sheet remains a strategic asset. We closed the quarter with $4.9 billion in cash, up approximately $1.1 billion from the end of Q1, and with net debt of $3 billion. This financial strength continues to provide a stable foundation as we navigate dynamic macro environment shifts. At strip pricing and using guidance midpoints, our 2026 plan generates $8 billion in free cash flow. Our 2026 program funds production growth, domestic and international exploration, and a peer-leading regular dividend, all at a WTI breakeven price below $50 per barrel.

Speaker #2: EOG's financial foundation has never been stronger. We are generating significant free cash flow, returning meaningful cash to shareholders, and maintaining financial flexibility to capitalize on opportunities as they emerge.

Speaker #2: This combination of operational excellence, a low-cost structure, and financial discipline positions us exceptionally well not only for 2026, but for sustained long-term value creation.

Speaker #1: Our balance sheet remains a strategic asset. We close the quarter with $4.9 billion in cash, up approximately $1.1 billion from the end of the first quarter, and with net debt of $3 billion.

Speaker #2: With that, I'll turn it over to Jeff to discuss our operating results.

Speaker #3: Thanks, Anne. I'd like to begin by recognizing our employees for their outstanding performance and execution. In the second quarter, we delivered strong operational results, highlighted by lower-than-expected LOE and GP&T expenses, and total company volumes higher than our guidance midpoint.

Speaker #1: This financial strength continues to provide a stable foundation as we navigate dynamic macro environment shifts. At strip pricing and using guidance midpoints, our 2026 plan generates $8 billion in free cash flow.

Ann Janssen: This financial strength continues to provide a stable foundation as we navigate dynamic macro environment shifts. At strip pricing and using guidance midpoints, our 2026 plan generates $8 billion in free cash flow. Our 2026 program funds production growth, domestic and international exploration, and a peer-leading regular dividend, all at a WTI breakeven price below $50 per barrel.

Speaker #3: Total company volumes, included nearly $500 barrels of oil per day, primarily from initial production from our UAE exploration wells as reported in our other international segment.

Speaker #1: Our 2026 program funds production growth, domestic and international exploration, and a peer-leading regular dividend, all at a WTI break-even price below $50 per barrel.

Speaker #3: Second quarter capital expenditures came in below the guidance midpoint, primarily driven by shifts in operational timing, largely in the Gulf States. For the full year, 2026, we expect to deliver 5% oil production growth and 14% total production growth, with capital expenditures unchanged at $6.5 billion.

Speaker #1: EOG's financial foundation has never been stronger. We are generating significant free cash flow, returning meaningful cash to shareholders, and maintaining financial flexibility to capitalize on opportunities as they emerge.

Ann Janssen: EOG's financial foundation has never been stronger. We are generating significant free cash flow, returning meaningful cash to shareholders, and maintaining financial flexibility to capitalize on opportunities as they emerge. This combination of operational excellence, a low-cost structure, and financial discipline positions us exceptionally well, not only for 2026, but for sustained long-term value creation. With that, I'll turn it over to Jeff to discuss our operating results.

Speaker #1: This combination of operational excellence, a low-cost structure, and financial discipline positions us exceptionally well not only for 2026, but for sustained long-term value creation.

Speaker #3: As Ezra previously highlighted, we are extremely pleased with our exploration efforts in the UAE. Along with strong initial well results, we also saw exceptional operational performance.

Speaker #1: With that, I'll turn it over to Jeff to discuss our operating results.

Speaker #3: For the balance of the year, in the UAE, we are targeting lateral lengths in excess of 2 miles, and will be completing additional wells.

Speaker #3: Thanks, Ann. I'd like to begin by recognizing our employees for their outstanding performance and execution. In the second quarter, we delivered strong operational results, highlighted by lower-than-expected LOE and GP&T expenses, and total company volumes higher than our guidance midpoint.

Jeff Leitzell: Thanks, Ann. I'd like to begin by recognizing our employees for their outstanding performance and execution. In Q2, we delivered strong operational results, highlighted by lower than expected LOE and GP&T expenses and total company volumes higher than our guidance midpoint. Total company volumes included nearly 500 barrels of oil per day, primarily from initial production from our UAE exploration wells, as reported in our other international segment. Q2 capital expenditures came in below the guidance midpoint, primarily driven by shifts in operational timing, largely in the Gulf States. For the full year 2026, we expect to deliver 5% oil production growth and 14% total production growth, with capital expenditures unchanged at $6.5 billion. As Ezra previously highlighted, we are extremely pleased with our exploration efforts in the UAE. Along with strong initial well results, we also saw exceptional operational performance.

Speaker #3: We have also successfully replicated key elements from our domestic operations playbook, to realize immediate cost reductions in the UAE. An example includes utilizing in-bassin surface sand processing, which can be located direct.

Speaker #3: Total company volumes included nearly $500 barrels of oil per day, primarily from initial production from our UAE exploration wells as reported in our other international segment.

Speaker #3: Adjacent to our well locations, thereby minimizing transportation and processing costs of our future completions. In Bahrain, operations have been intermittent due to the ongoing conflict.

Speaker #3: Second quarter capital expenditures came in below the guidance midpoint, primarily driven by shifts in operational timing, largely in the Gulf States. For the full year 2026, we expect to deliver 5% oil production growth and 14% total production growth, with capital expenditures unchanged at $6.5 billion.

Jeff Leitzell: Q2 capital expenditures came in below the guidance midpoint, primarily driven by shifts in operational timing, largely in the Gulf States. For the full year 2026, we expect to deliver 5% oil production growth and 14% total production growth, with capital expenditures unchanged at $6.5 billion. As Ezra previously highlighted, we are extremely pleased with our exploration efforts in the UAE. Along with strong initial well results, we also saw exceptional operational performance.

Speaker #3: While we hope to have results in the second half of the year, our priority is the safety of our employees, contractors, and partners in the region.

Speaker #3: Turning to domestic operations, our Delaware basin team continues to execute well on their development strategy. Well-performance has been in line with our expectations. We continue to develop this world-class asset at the right pace, resulting in continued operational improvements.

Speaker #3: We are realizing drilling and completion efficiencies relative to last year. Year-to-date drilling feet per day is up 13%, and year-to-date completed lateral feet per day is up 5%.

Speaker #3: For the balance of the year, in the UAE, we are targeting lateral lengths in excess of 2 miles and will be completing additional wells.

Jeff Leitzell: For the balance of the year in the UAE, we are targeting lateral lengths in excess of 2 miles and will be completing additional wells. We have also successfully replicated key elements from our domestic operations playbook to realize immediate cost reductions in the UAE. An example includes utilizing in-basin surface sand processing, which can be located directly adjacent to our well locations, thereby minimizing transportation and processing costs of our future completions. In Bahrain, operations have been intermittent due to the ongoing conflict. While we hope to have results in H2 of the year, our priority is the safety of our employees, contractors, and partners in the region. Turning to domestic operations, our Delaware Basin team continues to execute well on their development strategy. Well performance has been in line with our expectations.

Speaker #3: These efficiency gains are contributing to well-cost reductions as year-to-date we have been able to reduce direct well costs by $15 per foot with direct well costs averaging less than $710 per foot.

Speaker #3: We have also successfully replicated key elements from our domestic operations playbook to realize immediate cost reductions in the UAE. An example includes utilizing in-bayson surface sand processing, which can be located directly adjacent to our well locations thereby minimizing transportation and processing costs of our future completions.

Speaker #3: In addition, our Janice gas processing plant continues to deliver outstanding results. This strategic infrastructure project came online last year, with current capacity of 300 million cubic feet per day and is expandable by an additional 300 million cubic feet per day.

Speaker #3: In Bahrain, operations have been intermittent due to the ongoing conflict. While we hope to have results in the second half of the year, our priority is the safety of our employees, contractors, and partners in the region.

Jeff Leitzell: In Bahrain, operations have been intermittent due to the ongoing conflict. While we hope to have results in H2 of the year, our priority is the safety of our employees, contractors, and partners in the region. Turning to domestic operations, our Delaware Basin team continues to execute well on their development strategy. Well performance has been in line with our expectations.

Speaker #3: Year-to-date, Janice plant utilization is averaging greater than 99%, and we are realizing a net back uplift of more than 65 cents per MCF, helping support our strong margins in the Delaware basin.

Speaker #3: Eagleford operations are also performing strongly this year. Year-to-date, we have been able to increase drilled feet per day by 4% and completed lateral feet per day by 11% compared to 2025.

Jeff Leitzell: We continue to develop this world-class asset at the right pace, resulting in continued operational improvements. We are realizing drilling and completion efficiencies relative to last year. Year-to-date drilling feet per day is up 13%, and year-to-date completed lateral feet per day is up 5%. These efficiency gains are contributing to well cost reductions as year to date, we have been able to reduce direct well costs by $15 per foot, with direct well costs averaging less than $710 per foot. In addition, our Janus Gas Processing Plant continues to deliver outstanding results. This strategic infrastructure project came online last year with current capacity of 300 million cubic feet per day and is expandable by an additional 300 million cubic feet per day.

Speaker #3: We are realizing drilling and completion efficiencies relative to last year. Year-to-date drilling feet per day is up 13%, and year-to-date completed lateral feet per day is up 5%.

Speaker #3: These efficiency gains have helped drive further well-cost reductions. We have reduced Eagleford direct well costs to less than $525 per foot, which is the lowest in our long history in the play.

Speaker #3: In the second quarter, we drilled the Aspen L11H, which is the longest lateral drilled in the Eagleford to date, with a drilled lateral of 24,115 feet or more than 4.5 miles.

Speaker #3: In addition, our Janus gas processing plant continues to deliver outstanding results. This strategic infrastructure project came online last year, with current capacity of 300 million cubic feet per day, and is expandable by an additional 300 million cubic feet per day.

Jeff Leitzell: In addition, our Janus Gas Processing Plant continues to deliver outstanding results. This strategic infrastructure project came online last year with current capacity of 300 million cubic feet per day and is expandable by an additional 300 million cubic feet per day.

Speaker #3: Each year, we continue to unlock additional resource across the Eagleford oil trend through cost reductions as well as through organic leasing and strategic acquisitions.

Speaker #3: Last year, we acquired approximately 30,000 net acres in Addiscosa County. We have since drilled 20 net wells on the acquired acreage, with these wells achieving a less than one-year payout at $65 WTI.

Speaker #3: Year-to-date, Janus plant utilization is averaging greater than 99%, and we are realizing a net back uplift of more than 65 cents per MCF, helping support our strong margins in the Delaware basin.

Jeff Leitzell: Year to date, Janus plant utilization is averaging greater than 99%, and we are realizing a net back uplift of more than $0.65 per Mcf, helping support our strong margins in the Delaware Basin. Eagle Ford operations are also performing strongly this year. Year to date, we have been able to increase drilled feet per day by 4% and completed lateral feet per day by 11% compared to 2025. These efficiency gains have helped drive further well cost reductions. We have reduced Eagle Ford direct well cost to less than $525 per foot, which is the lowest in our long history in the play. In Q2, we drilled the Aspen L11H, which is the longest lateral drilled in the Eagle Ford to date, with a drilled lateral of 24,115 feet, or more than four and a half miles.

Speaker #3: This quarter, we are announcing an exciting Austin Chalk sweet spot in Lavaca County. We utilized our robust understanding of the regional geologic and reservoir model to identify this extension to our Eagleford acreage that also achieves a less than one-year payout at $65 WTI.

Speaker #3: Eagle Ford operations are also performing strongly this year. Year-to-date, we have increased drilled feet per day by 4% and completed lateral feet per day by 11% compared to 2025.

Jeff Leitzell: These efficiency gains have helped drive further well cost reductions. We have reduced Eagle Ford direct well cost to less than $525 per foot, which is the lowest in our long history in the play. In Q2, we drilled the Aspen L11H, which is the longest lateral drilled in the Eagle Ford to date, with a drilled lateral of 24,115 feet, or more than four and a half miles.

Speaker #3: We have organically leased 60,000 net acres for an average cost of $1,200 per acre and drilled over a dozen wells, confirming this high return prospect.

Speaker #3: In the second quarter, we drilled the Aspen L11H, which is the longest lateral drilled in the Eagle Ford to date, with a drilled lateral of 24,115 feet, or more than 4.5 miles.

Speaker #3: These high-pressure wells offer high deliverability and benefit from our learnings in other basins. We have confidently identified one year's worth of 2-mile lateral inventories at current Eagleford activity levels.

Speaker #3: Each year, we continue to unlock additional resource across the Eagleford oil trend through cost reductions as well as through organic leasing and strategic acquisitions.

Jeff Leitzell: Each year, we continue to unlock additional resource across the Eagle Ford oil trend through cost reductions as well as through organic leasing and strategic acquisitions. Last year, we acquired approximately 30,000 net acres in Atascosa County. We have since drilled 20 net wells on the acquired acreage, with these wells achieving a less than one-year payout at $65 WTI. This quarter, we are announcing an exciting Austin Chalk sweet spot in Lavaca County. We utilized our robust understanding of the regional geologic and reservoir model to identify this extension to our Eagle Ford acreage that also achieves a less than one-year payout at $65 WTI. We have organically leased 60,000 net acres for an average cost of $1,200 per acre and drilled over a dozen wells confirming this high return prospect. These high-pressure wells offer high deliverability and benefit from our learnings in other basins.

Speaker #3: Furthermore, we continue to gather data and evaluate its extent. Further south in Dorado, this low-cost dry gas asset continues to improve. In 2026, we have increased lateral lengths by approximately 16% compared to last year, and are further lowering well cost.

Speaker #3: Year-to-date, direct well costs are less than $700 per foot or 7% lower than last year. In addition, the counter-cyclical investment in the Verde gas pipeline continues to pay dividends as we are realizing a net back uplift of 50 cents per MCF year-to-date.

Jeff Leitzell: This quarter, we are announcing an exciting Austin Chalk sweet spot in Lavaca County. We utilized our robust understanding of the regional geologic and reservoir model to identify this extension to our Eagle Ford acreage that also achieves a less than one-year payout at $65 WTI. We have organically leased 60,000 net acres for an average cost of $1,200 per acre and drilled over a dozen wells confirming this high return prospect. These high-pressure wells offer high deliverability and benefit from our learnings in other basins.

Speaker #3: In the Utica, our seno acquisition has been a home run, number one. We have exceeded our $150 million synergy target ahead of schedule. We have driven direct well costs below $600 per foot.

Speaker #3: We have organically leased 60,000 net acres for an average cost of $1,200 per acre and drilled over a dozen wells, confirming this high return prospect.

Speaker #3: And continued reductions in sight. Number three, we continue to push margin expansion through supply chain optimization, including in-bassin sand, which should be secured by the end of this year.

Jeff Leitzell: We have confidently identified one year's worth of two-mile lateral inventories at current Eagle Ford activity levels. Furthermore, we continue to gather data and evaluate its extent. Further south in Dorado, this low-cost dry gas asset continues to improve. In 2026, we have increased lateral lengths by approximately 16% compared to last year and are further lowering well cost. Year to date, direct well costs are less than $700 per foot, or 7% lower than last year. In addition, the countercyclical investment in the Verde gas pipeline continues to pay dividends as we are realizing a net back uplift of $0.50 per Mcf year to date. In the Utica, our Encino acquisition has been a home run. Number one, we have exceeded our $150 million synergy target ahead of schedule. We have driven direct well costs below $600 per foot and continued reductions in sight.

Speaker #3: And number four, EOG's proprietary in-house production optimizers delivered a 5% improvement in base production and a 5% reduction in downtime. In summary, combining the scale of this asset with our technology, technical expertise, and operating model, has led to stronger capital efficiency and demonstrates the meaningful value created through successful integration and discipline execution.

Speaker #3: Year-to-date, direct well costs are less than $700 per foot or 7% lower than last year. In addition, the countercyclical investment in the Verde gas pipeline continues to pay dividends as we are realizing a net back uplift of 50 cents per MCF year-to-date.

Speaker #3: Turning to the broader service cost environment, there has been slight inflation across various services. But we have been able to mitigate most of it and are still expecting a low single-digit reduction in well costs this year.

Jeff Leitzell: Year to date, direct well costs are less than $700 per foot, or 7% lower than last year. In addition, the countercyclical investment in the Verde gas pipeline continues to pay dividends as we are realizing a net back uplift of $0.50 per Mcf year to date. In the Utica, our Encino acquisition has been a home run. Number one, we have exceeded our $150 million synergy target ahead of schedule. We have driven direct well costs below $600 per foot and continued reductions in sight.

Speaker #3: A perfect example of how we are able to dampen inflation is our in-house drilling motor program, which is generating meaningful value. Since 2023, we have achieved a 70% increase in average drilled footage per motor run.

Speaker #3: In the Utica, our Zeno acquisition has been a home run, number one, we have exceeded our $150 million synergy target ahead of schedule. We have driven direct well costs below $600 per foot.

Speaker #3: Looking at year-to-date motor performance by basin, average footage per motor run has increased 34% in the Delaware basin, 43% in the Utica, 20% in the Eagleford, and 64% in Dorado.

Speaker #3: In each case, compared to third-party motors. The potential savings by eliminating one motor failure ranges from $100,000 to $250,000, a meaningful contribution to our overall cost reduction efforts.

Speaker #3: We enter the second half of 2026 with strong momentum and are well positioned to execute on our full-year plan. With that, I'll turn it back to Ezra for closing remarks.

Speaker #1: Thanks, Jeff. Before we open the line for questions, I want to leave you with three thoughts. First, EOG delivered record financial performance in the second quarter.

Speaker #3: And continued reductions in sight. Number three, we continue to push margin expansion through supply chain optimization, including in-bayson sand, which should be secured by the end of this year.

Jeff Leitzell: Number three, we continue to push margin expansion through supply chain optimization, including in-basin sand, which should be secured by the end of this year. Number four, EOG's proprietary in-house production optimizers delivered a 5% improvement in base production and a 5% reduction in downtime. In summary, combining the scale of this asset with our technology, technical expertise, and operating model has led to stronger capital efficiency and demonstrates the meaningful value created through successful integration and disciplined execution. Turning to the broader service cost environment, there has been slight inflation across various services, but we have been able to mitigate most of it and are still expecting a low single-digit reduction in well cost this year. A perfect example of how we are able to dampen inflation is our in-house drilling motor program, which is generating meaningful value.

Speaker #1: Operations across our foundational assets are executing at a high level, and we expect that momentum to carry through the back half of the year.

Speaker #3: And number four, EOG's proprietary in-house production optimizers delivered a 5% improvement in base production, and a 5% reduction in downtime. In summary, combining the scale of this asset with our technology, technical expertise, and operating model, has led to stronger capital efficiency and demonstrates the meaningful value created through successful integration and discipline execution.

Speaker #1: Second, organic exploration is one of EOG's most important competitive advantages. We identify opportunities early, move decisively, and apply the same rigorous data-driven approach that is expanding our US business in a new basins around the world.

Jeff Leitzell: In summary, combining the scale of this asset with our technology, technical expertise, and operating model has led to stronger capital efficiency and demonstrates the meaningful value created through successful integration and disciplined execution.

Speaker #1: The international unconventional opportunity set is real, and our international operations demonstrate that the EOG model can be successfully applied beyond North America. Third, everything we've discussed today reflects how this company operates.

Jeff Leitzell: Turning to the broader service cost environment, there has been slight inflation across various services, but we have been able to mitigate most of it and are still expecting a low single-digit reduction in well cost this year. A perfect example of how we are able to dampen inflation is our in-house drilling motor program, which is generating meaningful value.

Speaker #1: Grounded in capital discipline, operational excellence, and sustainability, all underpinned by our culture. We appreciate your time and continued interest in EOG. Now, let's open it up for questions.

Speaker #2: Thank you. The question and answer session will be conducted electronically. If you would like to ask a question, please do so by pressing the star key followed by the digit one on a touchstone phone.

Jeff Leitzell: Since 2023, we have achieved a 70% increase in average drilled footage per motor run. Looking at year to date motor performance by basin, average footage per motor run has increased 34% in the Delaware Basin, 43% in the Utica, 20% in the Eagle Ford, and 64% in Dorado. In each case, compared to third-party motors. The potential savings by eliminating one motor failure ranges from $100,000 to 250,000, a meaningful contribution to our overall cost reduction efforts. We enter H2 2026 with strong momentum and are well-positioned to execute on our full-year plan. With that, I'll turn it back to Ezra for closing remarks.

Speaker #3: Looking at year-to-date motor performance by basin, average footage per motor run has increased 34% in the Delaware basin, 43% in the Utica, 20% in the Eagleford, and 64% in Dorado.

Speaker #2: If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach the equipment. You are allowed one question and one follow-up.

Speaker #2: We will take as many questions as time permits. Once again, please press star one on your touchstone telephone to ask a question. To remove your question from the queue, please press star two.

Jeff Leitzell: The potential savings by eliminating one motor failure ranges from $100,000 to 250,000, a meaningful contribution to our overall cost reduction efforts. We enter H2 2026 with strong momentum and are well-positioned to execute on our full-year plan. With that, I'll turn it back to Ezra for closing remarks.

Speaker #2: The first question comes from Josh Silverstein from UBS. Please go ahead.

Speaker #3: We enter the second half of 2026 with strong momentum and are well positioned to execute on our full-year plan. With that, I'll turn it back to Ezra for closing remarks.

Speaker #1: Good thing. Good morning, guys.

Speaker #4: On the first quarter update, you have made it a shift towards more capital towards liquids versus gas development, which was clear that the right move for this year.

Speaker #1: Thanks, Jeff. Before we open the line for questions, I want to leave you with three thoughts. First, EOG delivered record financial performance in the second quarter.

Ezra Yacob: Thanks, Jeff. Before we open the line for questions, I want to leave you with three thoughts. First, EOG delivered record financial performance in Q2. Operations across our foundational assets are executing at a high level, and we expect that momentum to carry through H2. Second, organic exploration is one of EOG's most important competitive advantages. We identify opportunities early, move decisively, and apply the same rigorous data-driven approach that is expanding our US business into new basins around the world. The international unconventional opportunity set is real, and our international operations demonstrate that the EOG model can be successfully applied beyond North America. Third, everything we've discussed today reflects how this company operates. Grounded in capital discipline, operational excellence, and sustainability, all underpinned by our culture. We appreciate your time and continued interest in EOG. Now let's open it up for questions.

Speaker #4: Ezra, in your comments, it sounds like you're still pretty constructive on oil prices. So as you're starting to plan for next year, with the forward curve around 70 WTI and 335 for Henry Hub, are you continuing down this path and continue to push more capital towards the more oil-prone place?

Speaker #1: Operations across our foundational assets are executing at a high level, and we expect that momentum to carry through the back half of the year.

Speaker #1: Second, organic exploration is one of EOG's most important competitive advantages. We identify opportunities early, move decisively, and apply the same rigorous, data-driven approach that is expanding our US business in a new basins around the world.

Speaker #1: Morning, Josh. That's a great question. So our 26 plan, it remains unchanged from the last quarter. We updated the volume guidance, obviously, to reflect year-to-date performance.

Speaker #1: The international unconventional opportunity set is real. And our international operations demonstrate that the EOG model can be successfully applied beyond North America. Third, everything we've discussed today reflects how this company operates.

Ezra Yacob: The international unconventional opportunity set is real, and our international operations demonstrate that the EOG model can be successfully applied beyond North America. Third, everything we've discussed today reflects how this company operates. Grounded in capital discipline, operational excellence, and sustainability, all underpinned by our culture. We appreciate your time and continued interest in EOG. Now let's open it up for questions.

Speaker #1: Last quarter, as you said, we did take advantage of the flexibility across our multi-bassin portfolio to reallocate some capital. Across our foundational assets, which resulted in incremental oil volumes this year and it also better positioned us for 27.

Speaker #1: So while I think it's still a little too early to get into specifics on 27, I would say that as we assess oil market fundamentals, we do see the potential need for incremental supply.

Operator: Thank you. The question and answer session will be conducted electronically. If you would like to ask a question, please do so by pressing the star key followed by the digit one on your touch-tone phone. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach the equipment. You are allowed one question and one follow-up. We will take as many questions as time permits. Once again, please press star one on your touch-tone telephone to ask a question. To remove your question from the queue, please press star two. The first question comes from Josh Silverstein from UBS. Please go ahead.

Speaker #1: This is where we sit today. And if this continues to be the case, I would expect our plan for next year to really be reflective of our three-year scenario, which basically reflects a low single-digit oil growth.

Speaker #2: If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach the equipment. You are allowed one question and one follow-up.

Speaker #1: And we put some financial metrics on there, assuming kind of a WTI price range of 60 to $80 oil. I would say that we continue to preserve a lot of optionality and we'll continue to assess all considerations including the macros as we move throughout the rest of this year and further define our plan for 2027.

Speaker #2: We will take as many questions as time permits. Once again, please press star 1 on your touchstone telephone to ask a question. To remove your question from the queue, please press star 2.

Operator: Once again, please press star one on your touch-tone telephone to ask a question. To remove your question from the queue, please press star two. The first question comes from Josh Silverstein from UBS. Please go ahead.

Speaker #2: The first question comes from Josh Silverstein from UBS. Please go ahead.

Speaker #4: Yeah. And then maybe just one on the UAE as well. I was hoping to get a little bit more color on next steps and maybe a timeline here.

Speaker #1: Good thing. Good morning,

Josh Silverstein: Good morning, guys. On the Q1 update, you had made a shift towards more capital towards liquids versus gas development, which was clearly the right move for this year. Ezra, in your comments, it sounds like you're still pretty constructive on oil prices. As you're starting to plan for next year with a forward curve around 70 WTI and 335 for Henry Hub, are you continuing down this path and continue to push more capital towards the more oil-prone place?

Speaker #4: guys. The first quarter update you have made it a shift towards more capital towards liquids versus gas development, which was clear that the right move for this year.

Speaker #4: I know you're bringing in some artificial lift and then have some longer laterals here. Is there any shot clock that you guys are under now, a certain number of wells that you need to drill to get to a certain point before kind of bringing this into more commercial development?

Speaker #4: Ezra, in your comments, it sounds like you're still pretty constructive on un-oil prices. So as you're starting to plan for next year, with the forward curve around 70 WTI and 335 for Henry Hub, are you continuing down this path and continue to push for capital towards the more oil-prone place?

Speaker #4: Thanks.

Speaker #1: Yeah, Josh, that's a great question. I love talking about the UAE this morning. We're extremely excited. About our progress in the region. We entered the region because we saw pretty compelling subsurface opportunities with positive production results from prior horizontal development.

Speaker #1: Morning, Josh. That's a great question. So our 26 plan, it remains unchanged from the last quarter. We updated the volume guidance, obviously, to reflect year-to-date performance.

Ezra Yacob: Morning, Josh. That's a great question. Our 2026 plan, it remains unchanged from last quarter. We updated the volume guidance, obviously, to reflect year-to-date performance. Last quarter, as you said, we did take advantage of the flexibility across our multi-basin portfolio to reallocate some capital across our foundational assets, which resulted in incremental oil volumes this year, and it also better positioned us for 2027. While I think it's still a little too early to get into specifics on 2027, I would say that as we assess oil market fundamentals, we do see the potential need for incremental supply. This is where we sit today. If this continues to be the case, I would expect our plan for next year to really be reflective of our three-year scenario, which basically reflects a low single-digit oil growth.

Speaker #1: We were able to partner to come up with some great partners there. And what we've accomplished early in the early stages here, particularly in the UAE, has really reinforced our conviction.

Speaker #1: Last quarter, as you said, we did take advantage of the flexibility across our multi-bayson portfolio to reallocate some capital. Across our foundational assets, which resulted in incremental oil volumes this year.

Speaker #1: Now, we do have I think we've talked about it before, a three-year exploration phase and it is a JV structure with where Adnoc has the option to back in.

Speaker #1: And it also better positioned us for '27. So while I think it's still a little too early to get into specifics on '27, I would say that as we assess oil market fundamentals, we do see the potential need for incremental supply.

Ezra Yacob: While I think it's still a little too early to get into specifics on 2027, I would say that as we assess oil market fundamentals, we do see the potential need for incremental supply. This is where we sit today. If this continues to be the case, I would expect our plan for next year to really be reflective of our three-year scenario, which basically reflects a low single-digit oil growth.

Speaker #1: But other than that, we consider this to be in an exploration phase. And so I wouldn't say we're holding ourselves to any strict timelines.

Speaker #1: We're strict results. We'll take the data in as it comes. We continue to be active there. As we move forward, we are looking for some these are initial wells and a frontier basin.

Speaker #1: And so we are looking for not only well results, but how the wells produce over time, how they'll respond to the artificial lift. And then we're looking for some other things.

Speaker #1: And we put some financial metrics on there, assuming kind of a WTI price range of $60 to $80 oil. I would say that we continue to preserve a lot of optionality, and we'll continue to assess all considerations, including the macros, as we move throughout the rest of this year and further define our plan for 2027.

Ezra Yacob: We put some financial metrics on there, assuming kind of a WTI price range of $60 to $80. I would say that we continue to preserve a lot of optionality, and we'll continue to assess all considerations, including the macros, as we move throughout the rest of this year and further define our plan for 2027.

Speaker #1: We'd like to delineate a wider range across the 900,000-acre concession. Obviously, it would be difficult to delineate the entire 900,000 acres, but we do have some different geologic environments that we've captured with that concession.

Speaker #1: And so we'd like to test some repeatability through there. And then we also would like to see how the service industry matures. If they respond as quickly as we're moving, such that we can get some additional unconventional equipment into the region.

Speaker #4: Got it. And then maybe just one on the UAE as well. I was hoping to get a little bit more color on next steps and maybe a timeline here.

Josh Silverstein: Got it. Maybe just one on the UAE as well. Was hoping to get a little bit more color on next steps and maybe a timeline here. I know you're bringing in some artificial lift and then have some longer laterals here. Is there any shot clock that you guys are under now? Is there a certain number of wells that you need to drill to get to a certain point before kind of bringing this into more commercial development? Thanks.

Speaker #4: I know you're bringing in some artificial lift and then have some longer laterals here. Is there any shot clock that you guys are under now—a certain number of wells that you need to drill to get to a certain point before kind of bringing this into more commercial development?

Speaker #1: I think the biggest takeaway here is what we've demonstrated so far is that it probably doesn't come to anyone as a big surprise that there is oil in the UAE, but I think most importantly, the way we think about this internally is this isn't just another shale play.

Speaker #4: Thanks.

Ezra Yacob: Yeah, Josh, that's a great question. Love talking about the UAE this morning. We're extremely excited about our progress in the region. We entered the region because we saw pretty compelling subsurface opportunities with positive production results from prior horizontal development. We were able to partner to come up with some great partners there. What we've accomplished in the early stages here, particularly in the UAE, has really reinforced our conviction. Now we do have, I think we've talked about it before, a three-year exploration phase. It is a JV structure where ADNOC has the option to back in. Other than that, we consider this to be in an exploration phase. I wouldn't say we're holding ourselves to any strict timelines or strict results. We'll take the data in as it comes. We continue to be active there.

Speaker #1: What this demonstrates really is the real opportunity that exists for international unconventionals. And the real opportunity and competitive advantage we have if we can successfully apply our operating model abroad.

Speaker #2: The next question comes from Steve Richardson from Evercore. Please go ahead.

Ezra Yacob: What we've accomplished in the early stages here, particularly in the UAE, has really reinforced our conviction. Now we do have, I think we've talked about it before, a three-year exploration phase. It is a JV structure where ADNOC has the option to back in. Other than that, we consider this to be in an exploration phase. I wouldn't say we're holding ourselves to any strict timelines or strict results. We'll take the data in as it comes. We continue to be active there.

Speaker #5: Good morning. Thanks for the time. Ezra, curious on the chalk and how you think about I guess two points. One was you're talking about it, so should we assume that you're kind of done leasing in this area because you're willing to talk about it?

Speaker #1: Now, we do have I think we've talked about it before, a three-year exploration phase. And it is a JV structure with where Adnoc has the option to back in.

Speaker #1: But other than that, we consider this to be in an exploration phase. And so I wouldn't say we're holding ourselves to any strict timelines.

Speaker #5: And two, how do you think about capital allocation in South Texas based on chalk versus the more structural elements there versus what's going on in the legacy foundation in the Eagleford?

Speaker #1: We're strict results. We'll take the data in as it comes. We continue to be active there. And as we move forward, we are looking for some these are initial wells in a frontier basin.

Ezra Yacob: As we move forward, these are initial wells in a frontier basin. We are looking for not only well results, but how the wells produce over time, how they'll respond to the artificial lift. We're looking for some other things. We'd like to delineate a wider range across the 900,000-acre concession. Obviously, it would be difficult to delineate the entire 900,000 acres. We do have some different geologic environments that we've captured with that concession. We'd like to test some repeatability through there. We also would like to see how the service industry matures, if they respond as quickly as we're moving, such that we can get some additional unconventional equipment into the region.

Speaker #5: And so maybe the starting point, just think about how you think about feathering the chalk into the development program and what the broader resource opportunity is.

Speaker #1: And so we are looking for not only well results, but how the wells produce over time, how they'll respond to the artificial lift. And then we're looking for some other things.

Speaker #1: Jeff. I'll just kind of give you a quick update on the chalk. And as we talked about in our opening remarks, we did. We identified and leased about 60,000 acres in the Austin chalk.

Ezra Yacob: Obviously, it would be difficult to delineate the entire 900,000 acres. We do have some different geologic environments that we've captured with that concession. We'd like to test some repeatability through there. We also would like to see how the service industry matures, if they respond as quickly as we're moving, such that we can get some additional unconventional equipment into the region.

Speaker #1: And what I would call that is it's truly a sweet spot. So we are still trying to figure out the extents of it, but we really feel like we've leased up the majority of the sweet spot.

Speaker #1: And that's why we're able to talk about it right now. And where it sits, it's actually just southeast of our eastern Eagleford acreage, just to kind of give you where the position is on it.

Speaker #1: So we acquired the acreage, primarily through organic leasing maybe some small acquisitions on average for around $1,200 an acre down there. And to date so far, we've drilled about 12 really high rate of return wells that confirm that the play has really strong economics that meet our hurdle rates.

Speaker #1: I think that the biggest takeaway here is, what we've demonstrated so far is that it probably doesn't come as a big surprise to anyone that there is oil in the UAE.

Ezra Yacob: I think the biggest takeaway here is what we've demonstrated so far is that it probably doesn't come to anyone as a big surprise that there's oil in the UAE. I think most importantly, the way we think about this internally is this isn't just another shale play. What this demonstrates really is the real opportunity that exists for international unconventionals and the real opportunity and competitive advantage we have if we can successfully apply our operating model abroad.

Speaker #1: But I think most importantly, the way we think about this internally is this isn't just another shale play. What this demonstrates really is the real opportunity that exists for international unconventionals.

Speaker #1: Currently, we're seeing on the wells that we've drilled payouts of less than one year and the returns are over 100%. At 65-dollar WTI, which it's competitive.

Speaker #1: And the real opportunity and competitive advantage we have if we can successfully apply our operating model abroad.

Speaker #1: It's kind of right in the middle with our core Eagleford asset there. The other thing I'll say to give more detail on the play is it is a little bit more down dipped than the Eagleford.

Speaker #1: It does get a little bit more deeper and mature. So it tends to be a little bit more of a combo play with more associated gas.

Speaker #2: The next question comes from Steve Richardson from Evercore. Please go ahead.

Operator: The next question comes from Stephen Richardson from Evercore. Please go ahead.

Speaker #1: But when you look at total liquids yields, it's very comparable to the Eagleford proper there. We've identified in this 600,000-acre sweet spot about 125 remaining two-mile locations.

Stephen Richardson: Good morning. Thanks for the time. Ezra, curious on the Austin Chalk and how you think about, I guess two points. One was, you are talking about it, so should we assume that you are kind of done leasing in this area because you are willing to talk about it? Two, how do you think about capital allocation in South Texas based on Austin Chalk versus the more structural elements there versus what is going on in the legacy foundation in the Eagle Ford. Maybe the starting point, just think about how you are thinking about feathering the Austin Chalk into the development program and what the broader resource opportunity is.

Steve Richardson: Good morning. Thanks for the time. Ezra, curious on the Austin Chalk and how you think about, I guess two points. One was, you are talking about it, so should we assume that you are kind of done leasing in this area because you are willing to talk about it?

Speaker #1: And what that really does is it adds about one additional full year of drilling inventory at current pace to our San Antonio division. And as far as from a capital allocation, I think they'll just kind of be spread equally within our core Eagleford development from that aspect.

Steve Richardson: Two, how do you think about capital allocation in South Texas based on Austin Chalk versus the more structural elements there versus what is going on in the legacy foundation in the Eagle Ford. Maybe the starting point, just think about how you are thinking about feathering the Austin Chalk into the development program and what the broader resource opportunity is.

Speaker #1: Like I said, we're talking about a sweet spot. So it'll just be pretty much in the mix of our standard Eagleford and Austin chalk proper core development.

Speaker #5: And so maybe the starting point, just think about how you think about feathering the chalk into the development program and what the broader resource opportunity is.

Speaker #1: We'll develop over the next handful of years. And when you roll all this up, what I'd just like to say is this really is it shows the benefit of the company's decentralized culture and divisions.

Speaker #1: Yeah, Steve. This is Jeff. I'll just kind of give you a quick update on the chalk. And as we talked about in our opening remarks, we did.

Jeff Leitzell: Yeah, Steve, this is Jeff. I will just give you a quick update on the Austin Chalk. As we talked about in our opening remarks, we identified and leased about 60,000 acres in the Austin Chalk. What I would call that is, it is truly a sweet spot. We are still trying to figure out the extent of it. We really feel like we have leased up the majority of the sweet spot, and that is why we are able to talk about it right now. Where it sits, it is actually just southeast of our eastern Eagle Ford acreage, just to give you where the position is on it. We acquired the acreage primarily through organic leasing, maybe some small acquisitions on average for around $1,200 an acre down there.

Speaker #1: We identified and leased about 60,000 acres in the Austin chalk. And what I would call that is it's truly a sweet spot. So we are still trying to figure out the extents of it.

Speaker #1: And each one of our divisions, we're always looking for these new opportunities, play extensions, or bypass pay that they can continue to add value in each one of their areas.

Speaker #1: And then also we look to leverage our technical and operational expertise and we really did that in this Austin chalk sweet spot because moving down south, we really got to lean on kind of our high temperature, high pressure operations from Dorado and apply a lot of our learnings there to really push it forward.

Speaker #1: But we really feel like we've leased up the majority of the sweet spot, and that's why we're able to talk about it right now.

Speaker #1: And where it sits, it's actually just southeast of our Eastern Eagleford acreage, just to kind of give you where the position is on it.

Jeff Leitzell: Where it sits, it is actually just southeast of our eastern Eagle Ford acreage, just to give you where the position is on it. We acquired the acreage primarily through organic leasing, maybe some small acquisitions on average for around $1,200 an acre down there.

Speaker #1: So we acquired the acreage primarily through organic leasing. Maybe some small acquisitions on average for around $1,200 an acre down there. And to date so far, we've drilled about 12 really high rate of return wells that confirm that the play has really strong economics that meet our hurdle rates.

Speaker #1: So it's just another great example of how we leverage our exploration expertise to continue to extend the resource life in each one of our divisions and continue to improve the returns profile of the company.

Jeff Leitzell: To date so far, we have drilled about 12 really high rate of return wells that confirm that the play has really strong economics that meet our hurdle rates. Currently, we are seeing on the wells that we have drilled payouts of less than one year, and the returns are over 100% at $65 WTI, which it is competitive. It is right in the middle with our core Eagle Ford asset there. The other thing I will say to give more detail on the play is it is a little bit more down dip than the Eagle Ford. It does get a little bit deeper and mature, so it tends to be a little bit more of a combo play with more associated gas. When you look at total liquids yields, it is very comparable to the Eagle Ford proper there. We have identified in this 535,000 net acre position, about 125 remaining two-mile locations.

Speaker #5: That's great. Thanks for the extra color, Jeff. Ezra, what if I could follow up on international a little bit? It seems like what you're saying is EOG should be a partner of choice for countries or geographies looking at unconventional development.

Speaker #1: Currently, we're seeing on the wells that we've drilled payouts of less than one year. And the returns are over 100% at 65 dollar WTI, which it's competitive.

Speaker #1: It's kind of right in the middle with our core Eagle Ford asset there. The other thing I'll say, to give more detail on the play, is it is a little bit more down-dip than the Eagle Ford.

Speaker #5: Is it fair to assume that you're in active discussions in other places? And I know EOG has a long history operating internationally, but maybe just give a scope of, again, I know you're not going to talk about specific areas, but just in terms of those conversations and how they've picked up because I'm sure the well results today will people will take notice.

Jeff Leitzell: The other thing I will say to give more detail on the play is it is a little bit more down dip than the Eagle Ford. It does get a little bit deeper and mature, so it tends to be a little bit more of a combo play with more associated gas. When you look at total liquids yields, it is very comparable to the Eagle Ford proper there. We have identified in this 535,000 net acre position, about 125 remaining two-mile locations.

Speaker #1: It does get a little bit more deeper and mature. So it tends to be a little bit more of a combo play with more associated gas.

Speaker #1: But when you look at total liquids yields, it's very comparable to the Eagleford proper there. We've identified in this 600,000-acre sweet spot about 125 remaining two-mile locations.

Speaker #1: Yeah, Steve, appreciate that color. We've always maintained an international exploration program. As you know, everyone on the call really has followed us for a number of years.

Jeff Leitzell: What that really does is it adds about one additional full year of drilling inventory at current pace to our San Antonio division. As far as from a capital allocation, I think they'll just be spread equally within our core Eagle Ford development from that aspect. Like I said, we're talking about a sweet spot, so it'll just be pretty much in the mix of our standard Eagle Ford and Austin Chalk proper core development we'll develop over the next handful of years. When you roll all this up, what I'd just like to say is this really shows the benefit of the company's decentralized culture and divisions. In each one of our divisions, we're always looking for these new opportunities, play extensions, or bypassed pay that they can continue to add value in each one of their areas.

Speaker #1: We appreciate that support. And so you guys know that we've been in and out of a number of different international opportunity sets, including the Sichuan Basin in China, we had an exploration play a number of years ago, in Oman as well.

Speaker #1: Like I said, we're talking about a sweet spot. So it'll just be pretty much in the mix of our standard Eagleford and Austin chalk proper core development.

Speaker #1: We'll develop over the next handful of years. And when you roll all this up, what I'd just like to say is this really shows the benefit of the company's decentralized culture and divisions.

Speaker #1: And those things really build upon one another. It was a relationships and some of the technical achievements we made in Oman that really helped kick off the relationship with both BAPCO and ADNOC.

Jeff Leitzell: When you roll all this up, what I'd just like to say is this really shows the benefit of the company's decentralized culture and divisions. In each one of our divisions, we're always looking for these new opportunities, play extensions, or bypassed pay that they can continue to add value in each one of their areas.

Speaker #1: And each one of our divisions, we're always looking for these new opportunities—play extensions or bypass pay—that they can continue to add value in each one of their areas.

Speaker #1: And I think you're right. I think this will continue to open up opportunities. That's not to say we're not exploring domestically. We actually still have a larger domestic exploration program than international.

Speaker #1: And then also, we look to leverage our technical and operational expertise and we really did that in this Austin chalk sweet spot because moving down south, we really got to lean on kind of our high temperature, high pressure operations from Dorado and apply a lot of our learnings there to really push it forward.

Jeff Leitzell: Also, we look to leverage our technical and operational expertise. We really did that in this Austin Chalk sweet spot because moving down south, we really got to lean on our high temperature, high pressure operations from Dorado and apply a lot of our learnings there to really push it forward. It's just another great example of how we leverage our exploration expertise to continue to extend the resource life in each one of our divisions and continue to improve the returns profile of the company.

Speaker #1: And part of that reason is because it is a bit of a heavier lift to get an international prospect across the kind of finish line for us.

Speaker #1: It begins with the quality of the subsurface. We've talked about this before. It needs to have the size and scale and certainly the economics to more than compete with our domestic portfolio.

Speaker #1: And I'd say that includes potential access to premium markets. The other thing is exceptional partners. Geopolitical stability and if available, we really prefer areas that have existing oil field services, areas where we can leverage our technologies and expertise and really build out, like I said a few minutes ago, really apply the EOG operating model.

Speaker #5: That's great. Thanks for the extra color, Jeff. Ezra, one of my good follow-up on international a little bit. It seems like what you're saying is EOG should be a partner of choice for countries or geographies looking at unconventional development.

Stephen Richardson: That's great. Thanks for the extra color, Jeff. Ezra, I wonder if I could follow up on international a little bit. It seems like what you're saying is EOG should be a partner of choice for countries or geographies looking at unconventional development. Is it fair to assume that you're in active discussions in other places? I know EOG has a long history operating internationally, but maybe just give a scope of, again, I know you're not going to talk about specific areas, but just in terms of those conversations and how they've picked up, because I'm sure the well results today, people will take notice.

Steve Richardson: That's great. Thanks for the extra color, Jeff. Ezra, I wonder if I could follow up on international a little bit. It seems like what you're saying is EOG should be a partner of choice for countries or geographies looking at unconventional development. Is it fair to assume that you're in active discussions in other places?

Speaker #5: Is it fair to assume that you're in active discussions in other places? I know EOG has a long history operating internationally, but maybe just give us a sense of the scope. Again, I know you're not going to talk about specific areas, but just in terms of those conversations and how they've picked up—because I'm sure the well results today will have people take notice.

Steve Richardson: I know EOG has a long history operating internationally, but maybe just give a scope of, again, I know you're not going to talk about specific areas, but just in terms of those conversations and how they've picked up, because I'm sure the well results today, people will take notice.

Speaker #1: So ultimately, we are focused on pursuing additional opportunities that meet both the subsurface and above-ground considerations. That ultimately have the scale and economics to compete.

Speaker #3: The next question comes from Arun. Jayaram from JP Morgan Securities. Please go ahead.

Speaker #1: Yeah, Steve, appreciate that color. We've always maintained an international exploration program. As you know, everyone on the call really has followed us for a number of years.

Ezra Yacob: Yeah, Steve, appreciate that color. We've always maintained an international exploration program, as you know. Everyone on the call really has followed us for a number of years. We appreciate that support. You guys know that we've been in and out of a number of different international opportunity sets, including the Sichuan Basin in China. We had an exploration play a number of years ago in Oman as well. Those things really build upon one another. It was the relationships and some of the technical achievements we made in Oman that really helped kick off the relationship with both BAPCO and ADNOC. I think you're right. I think this will continue to open up opportunities. That's not to say we're not exploring domestically. We actually still have a larger domestic exploration program than international.

Speaker #6: Yeah, good morning. Ezra, I was wondering if you could perhaps compare and contrast what you're seeing early on in the unconventional oil play in the UAE to US resource plays.

Speaker #1: We appreciate that support. And so you guys know, we've been in and out of a number of different international opportunity sets, including the Sichuan Basin in China. We had an exploration play a number of years ago in Oman as well.

Speaker #6: Obviously, you've been in quite a few, including the Eagleford, Delaware. But perhaps to maybe compare what you're seeing from a geological perspective quality of the rock.

Speaker #6: Are there any good analogies to talk to about with investors this morning?

Ezra Yacob: Those things really build upon one another. It was the relationships and some of the technical achievements we made in Oman that really helped kick off the relationship with both BAPCO and ADNOC. I think you're right. I think this will continue to open up opportunities. That's not to say we're not exploring domestically. We actually still have a larger domestic exploration program than international.

Speaker #1: Yeah, good morning, Arun. This is Keith. Yeah, we have seen I think we've talked about before that the big analog we see in the UAE is a comparison to the Eagleford.

Speaker #1: We see that on the rock type. We see that on the product mix. We had a model going into the UAE play that it was a black oil play.

Speaker #1: And part of that reason is because it is a bit of a heavier lift to get an international prospect across the kind of finish line for us.

Ezra Yacob: Part of that reason is because it is a bit of a heavier lift to get an international prospect across the finish line for us. It begins with the quality of the subsurface. We have talked about this before. It needs to have the size and scale, and certainly the economics to more than compete with our domestic portfolio. I would say that includes potential access to premium markets. The other thing is exceptional partners, geopolitical stability, and if available, we really prefer areas that have existing oil field services, areas where we can leverage our technologies and expertise and really build out, like I said a few minutes ago, really apply the EOG operating model. Ultimately, we are focused on pursuing additional opportunities that meet both the subsurface and above ground considerations that ultimately have the scale and economics to compete.

Speaker #1: And drew analogs from the Eagleford. And the well results from our first two wells are in line with those expectations. Including the GOR and the API.

Speaker #1: When you just look at what we see in the US, we're extremely excited about our domestic exploration efforts. We have multiple exploration projects working in all of our divisions.

Speaker #1: And I'd say that includes potential access to premium markets. The other thing is exceptional partners, geopolitical stability, and if available, we really prefer areas that have existing oilfield services—areas where we can leverage our technologies and expertise and really build out, like I said a few minutes ago, really apply the EOG operating model.

Ezra Yacob: The other thing is exceptional partners, geopolitical stability, and if available, we really prefer areas that have existing oil field services, areas where we can leverage our technologies and expertise and really build out, like I said a few minutes ago, really apply the EOG operating model. Ultimately, we are focused on pursuing additional opportunities that meet both the subsurface and above ground considerations that ultimately have the scale and economics to compete.

Speaker #1: To better understand enhance the economics of new basins like in the UAE and as well as older legacy basins. We also have several unconventional prospects in the lower 48 working as well as a conventional sandstone prospect in Alaska.

Speaker #1: So ultimately, we are focused on pursuing additional opportunities that meet both the subsurface and above-ground considerations, and that ultimately have the scale and economics to compete.

Speaker #3: The next question comes from Arun. Jayaram from JP Morgan Securities. Please go ahead.

Operator: The next question comes from Arun Jayaram from J.P. Morgan Securities. Please go ahead.

Speaker #1: Our organic exploration really is always been a core competency for EOG. We've built deep technical expertise proprietary databases and a mass learnings from Joe and thousands of wells across multiple rock types.

Speaker #2: Yeah, good morning. Ezra, I was wondering if you could perhaps compare and contrast what you're seeing early on in the unconventional oil play in the UAE to US resource plays.

Arun Jayaram: Good morning. Ezra, I was wondering if you could perhaps compare and contrast what you are seeing early on in the unconventional oil play in the UAE to US resource plays. Obviously, you have been in quite a few, including the Eagle Ford Delaware. Perhaps to maybe compare what you are seeing from a geological perspective, quality of the rock. Are there any good analogies to talk to about with investors this morning?

Speaker #1: We focus our exploration really on adding to the top of our inventory, elevating the overall quality of the assets rather than just adding resource.

Speaker #2: You obviously you've been in quite a few, including the Eagleford, Delaware. But perhaps to maybe compare what you're seeing from a geological perspective quality of the rock.

Speaker #1: I think our track record for exploration kind of speaks for itself over the last several years. We've improved the quality of our resource base expanded our portfolio of foundational assets including Utica and Dorado while also expanding the exploration efforts in Bahrain and the UAE.

Speaker #2: Are there any good analogies to talk to about what investors this morning?

Speaker #1: Yeah, good morning, Arun. This is Keith. Yeah, we have seen I think we've talked about before that the big analog we see in the UAE is a comparison to the Eagleford.

Keith Trasko: Good morning, everyone. This is Keith. We have seen, I think we have talked about before that the big analog we see in the UAE is a comparison to the Eagle Ford. We see that on the rock type. We see that on the product mix. We had a model going into the UAE play that was a black oil play, and drew analogs from the Eagle Ford. The well results from our first 2 wells are in line with those expectations, including the GOR and the API. When you just look at what we see in the US, we are extremely excited about our domestic exploration efforts. We have multiple exploration projects working in all of our divisions.

Speaker #6: Great. And my follow-up is, could you maybe mention how deep these wells are? And one of the questions we've been getting last night was, how does EOG see D and C costs in this place evolving over time relative to what we see in the lower 48?

Speaker #1: We see that on the rock type. We see that on the product mix. We had a model going into the UAE play that it was a black oil play.

Speaker #1: And drew analogs from the Eagleford. And the well results from our first two wells are in line with those expectations. Including the GOR and the API.

Keith Trasko: The well results from our first 2 wells are in line with those expectations, including the GOR and the API. When you just look at what we see in the US, we are extremely excited about our domestic exploration efforts. We have multiple exploration projects working in all of our divisions.

Speaker #1: Hey, Arun, this is Jeff. I'll touch on the well cost side real quick. The first thing obviously we'll point out, which you're very well aware of, is we're real early on in the process here in the UAE.

Speaker #1: When you just look at what we see in the US, we're extremely excited about our domestic exploration efforts. We have multiple exploration projects working in all of our divisions.

Speaker #1: But as in any exploration play or initial well cost, they'll tend to be a little bit higher starting out and then we'll work them down over time.

Speaker #1: As we do with all of our plays, kind of through the process. A few things that I'd keep in mind is for the exploration phase right now, we're using many of the service providers already in the region.

Speaker #1: I think the Austin chalk addition that we announced this quarter is a great example of how our teams are using successful play analogs and operational capabilities developed across the portfolio to better understand and enhance the economics of new basins, like in the UAE, and as well as older legacy basins.

Keith Trasko: I think the Austin Chalk addition that we announced this quarter is a great example of how our teams are using successful play analogs, and operational capabilities developed across the portfolio, to better understand, enhance the economics of new basins, like in the UAE, and as well as older legacy basins. We also have several unconventional prospects in the Lower 48 working, as well as a conventional sandstone prospect in Alaska. For organic exploration really has always been a core competency for EOG. We've built deep technical expertise, proprietary databases, and amassed learnings from drilling thousands of wells across multiple rock types. We focus our exploration really on adding to the top of our inventory, elevating the overall quality of the assets rather than just adding resource. I think our track record for exploration kind of speaks for itself.

Speaker #1: And they tend to have adequate services and equipment for the exploration phase. But there's definitely many improvements that can be made by utilizing true unconventional services.

Speaker #1: So that's one thing that we'll kind of look to improve on over time. And then also as we apply EOG's best practices and technical knowledge, we get high-spec rigs, EOG motors, high-rate fract fleets over there in basin sand.

Speaker #1: We also have several unconventional prospects in the Lower 48 working, as well as a conventional sandstone prospect in Alaska. For us, organic exploration really has always been a core competency for EOG.

Speaker #1: Once you really apply all these things over time and drill more and more wells, we'll continue to kind of drop down that well cost over time.

Keith Trasko: For organic exploration really has always been a core competency for EOG. We've built deep technical expertise, proprietary databases, and amassed learnings from drilling thousands of wells across multiple rock types. We focus our exploration really on adding to the top of our inventory, elevating the overall quality of the assets rather than just adding resource. I think our track record for exploration kind of speaks for itself.

Speaker #1: We've built deep technical expertise, proprietary databases, and a mass learnings from Joe and thousands of wells across multiple rock types. We focus our exploration really on adding to the top of our inventory, elevating the overall quality of the assets rather than just adding resource.

Speaker #1: And then on your overall total depth of this play, obviously it's 900,000 total acreage. So it does vary a little bit. But I'd say somewhere around a 10,000-foot TBD would probably be a pretty good average to use.

Speaker #3: The next question comes from Scott Hannold from RBC Capital Markets. Please go ahead.

Speaker #1: I think our track record for exploration kind of speaks for itself over the last several years. We've improved the quality of our resource base, expanded our portfolio of foundational assets, including Utica and Dorado, while also expanding the exploration efforts in Bahrain and the UAE.

Keith Trasko: Over the last several years, we've improved the quality of our resource base, expanded our portfolio foundational assets, including Utica and Dorado, while also expanding the exploration efforts in Bahrain, and the UAE.

Speaker #5: Yeah, thanks. A lot of discussion around exploration today. And I'd like to take that maybe a little bit further and when you look at domestic, I guess, lower 48 opportunities, how do you kind of compare and contrast opportunities up in Canada?

Speaker #2: Great. And my follow-up is, could you maybe mention how deep these wells are? And one of the questions we've been getting last night was, how does EOG see D and C costs in this place evolving over time?

Arun Jayaram: Great. My follow-up is, could you maybe mention how deep these wells are? One of the questions we've been getting last night was, how does EOG see D&C costs in this place evolving over time, relative to what we see in the Lower 48?

Speaker #5: I mean, there's some discussion about EOG maybe looking up there and when you think about the lower 48 in Canada specifically, what is your view?

Speaker #5: Is there too much egress issue? Is the resource good enough? Do you have an opinion there?

Speaker #2: Relative to what we see in the Lower 48?

Speaker #1: This is Ezra. Yeah, to your question on overall exploration and especially I think you had really referenced Canada there. Let me just say that Canada, I think you're right.

Speaker #1: Hey, Arun. This is Jeff. I'll touch on the well cost side real quick. The first thing obviously we'll point out, which you're very well aware of, is we're real early on in the process here in the UAE.

Jeff Leitzell: Hey, Arun, this is Jeff. I'll touch on the well cost side real quick. The first thing obviously we'll point out, which you're very well aware of, is we're real early on in the process here in the UAE. As in any exploration play, our initial well costs, they'll tend to be a little bit higher starting out, and then we'll work them down over time, as we do with all of our plays, kind of through the process. A few things that I'd keep in mind is for the exploration phase right now, we're using many of the service providers already in the region, they tend to have adequate services and equipment for the exploration phase. There's definitely many improvements that can be made by utilizing true unconventional services. That's one thing that we'll look to improve on over time.

Speaker #1: You always need to enter with an eye on egress. It's really the challenging thing up in Canada now. They've done some things on the regulatory side and there's been some investment in the region that hopefully will clean some of that up in the future.

Speaker #1: But as in any exploration play or initial well cost, they'll tend to be a little bit higher starting out and then we'll work them down over time.

Speaker #1: I would say some of the well-known parts of the area the deep basin and some of the areas where the Duvernay has started to show some potential over the last few years.

Jeff Leitzell: A few things that I'd keep in mind is for the exploration phase right now, we're using many of the service providers already in the region, they tend to have adequate services and equipment for the exploration phase. There's definitely many improvements that can be made by utilizing true unconventional services. That's one thing that we'll look to improve on over time.

Speaker #1: And they tend to have adequate services and equipment for the exploration phase. But there's definitely many improvements that can be made by utilizing true unconventional services.

Speaker #1: There are a lot of Canadian junior companies up there that have done a lot of work. I do think the region is one that would potentially benefit from some of the technologies that have been utilized more so here in the lower 48 in the Permian.

Jeff Leitzell: Also as we apply EOG's best practices and technical knowledge. We get high-spec rigs, EOG motors, high-rate frack fleets over there, in-basin sand. Once you really apply all these things over time and drill more and more wells, we'll continue to drop down that well cost over time. On your overall total depth of this play, obviously it's 900,000 total acreage, so it does vary a little bit. I'd say somewhere around a 10,000-foot TVD would probably be a pretty good average to use.

Speaker #1: Certainly in the Eagleford. And some of the things that we're doing in the Utica. But overall, what I would say is comparing and contrasting international versus what's in the US for domestic resource, as Keith alluded to, we still see a robust opportunity set in the lower 48 as well.

Speaker #1: Once you really apply all these things over time and drill more and more wells, we'll continue to kind of drop down that well cost over time.

Speaker #1: And then on your overall total depth of this play, obviously it's 900,000 total acreage, so it does vary a little bit. But I'd say somewhere around the 10,000-foot TVD would probably be a pretty good average to use.

Speaker #1: Everything these days is essentially some form of bypass pay to be perfectly honest. I wouldn't say they're necessarily frontier basins in the lower 48 left.

Speaker #3: The next question comes from Scott Hannold from RBC Capital Markets. Please go ahead.

Operator: The next question comes from Scott Hanold from RBC Capital Markets. Please go ahead.

Speaker #1: But there are a lot of places where new technology, needs to be reapplied to potentially some of the older resources, both conventional and conventional, that haven't been looked at in a little while.

Speaker #4: Yeah, thanks. There's a lot of discussion around exploration today, and I'd like to take that maybe a little bit further. When you look at domestic, I guess Lower 48 opportunities, how do you kind of compare and contrast those opportunities with Canada?

Scott Hanold: Yeah, thanks. A lot of discussion around exploration today, and I'd like to take that maybe a little bit further. When you look at domestic, I guess Lower 48 opportunities, how do you compare and contrast opportunities up in Canada? There's some discussion about EOG maybe looking up there and when you think about the Lower 48 in Canada specifically, what is your view? Is there too much egress issues? Is the resource good enough? Do you have an opinion there?

Speaker #1: As Keith alluded to, I think you're starting to see that kind of renaissance in Alaska as well. Where whether it's new geologic models up there or new seismic processing is really starting to unlock a lot of resource in an area that historically obviously is well known to be a resource abundant.

Speaker #4: I mean, there's some discussion about EOG maybe looking up there and when you think about the lower 48 in Canada specifically, is what is your view?

Speaker #4: Is there too much eagerness issue? Is the resource good enough? Do you have an opinion there? Well, I'm sorry, can you hear me?

Speaker #1: And I think the same thing extends into Canada, certainly into Alberta.

Speaker #5: Appreciate it. Appreciate the context and if we could chat a little bit on Permian well performance, I mean, it was a big discussion point last quarter on how strong your early 26 wells have looked.

Keith Trasko: Hello? I'm sorry, can you hear me? Sorry, Scott, that was my fault. This is Ezra. Yeah. To your question on overall exploration, and especially, I think you'd really referenced Canada there. Let me just say that Canada, I think you're right. You always need to enter with an eye on egress. It's really the challenging thing up in Canada. Now, they've done some things on the regulatory side, and there's been some investment in the region that hopefully will clean some of that up in the future. I would say some of the well-known parts of the area, the deep basin, and some of the areas where the Duvernay has started to show some potential over the last few years. There are a lot of Canadian junior companies up there that have done a lot of work.

Scott Hanold: Hello? I'm sorry, can you hear me?

Speaker #5: It looks like it kind of continues that. I know you've all discussed relative productivity of your being somewhat flat, but you guys got a good head start and is this a trend that you all see could continue or are you still expecting relatively flat year-over-year productivity?

Speaker #1: Sorry, Scott. That was my fault. This is Ezra. Yeah, to your question. On overall exploration and especially I think you had really referenced Canada there.

Ezra Yacob: Sorry, Scott, that was my fault. This is Ezra. Yeah. To your question on overall exploration, and especially, I think you'd really referenced Canada there. Let me just say that Canada, I think you're right. You always need to enter with an eye on egress. It's really the challenging thing up in Canada.

Speaker #1: Let me just say that, Canada, I think you're right. You always need to enter with an eye on egress. It's really the challenging thing.

Speaker #1: Hey, Scott. This is Jeff. Yeah, as we talked about on previous calls and we've highlighted, we had a shift in our development strategy there last year, added in multiple new high rate of return targets and really with a focus to continue to maximize value of that asset.

Speaker #1: Up in Canada. Now, they've done some things on the regulatory side and there's been some investment in the region that hopefully will clean some of that up in the future.

Ezra Yacob: Now, they've done some things on the regulatory side, and there's been some investment in the region that hopefully will clean some of that up in the future. I would say some of the well-known parts of the area, the deep basin, and some of the areas where the Duvernay has started to show some potential over the last few years. There are a lot of Canadian junior companies up there that have done a lot of work.

Speaker #1: I would say some of the well-known parts of the area, the deep basin, and some of the areas where the Duvernay has started to show some potential over the last few years.

Speaker #1: Yeah, and that's went outstanding. We continue to have excellent results deploying that same development strategy. So the first thing is no changes there, still applying that same strategy.

Speaker #1: And the well results that we're seeing, our in line with our expectations. From a forecast aspect, I mean, obviously you will have some variability as you move around your acreage.

Ezra Yacob: I do think the region is one that would potentially benefit from some of the technologies that have been utilized more so here in the Lower 48, in the Permian, certainly in the Eagle Ford, and some of the things that we're doing in the Utica. Overall, what I would say is comparing and contrasting international versus what's in the US for domestic resource, as Keith alluded to, we still see a robust opportunity set in the Lower 48 as well. Everything these days is essentially some form of bypassed pay.

Speaker #1: You've obviously got a little bit different of a well mix there. But then on top of that, we're always innovating and we're looking to push operations technically.

Speaker #1: And some of the things that we're doing in the Utica. But overall, what I would say is comparing and contrasting international versus what's in the US for domestic resource, as Keith alluded to, we still see a robust opportunity set in the lower 48 as well.

Speaker #1: So we're always looking to tweak our targets a little bit every single well to get better. We're always looking to optimize our fract design, whether it's tweaking different components.

Speaker #1: One of the big things we focused on is adding additional horsepower and focusing on rate. So all these little things, help work towards well performance.

Speaker #1: Everything these days is essentially some form of bypass pay to be perfectly honest. I wouldn't say they're necessarily frontier basins in the lower 48 left.

Speaker #1: And what I'd say is we don't go for a home run. Really, we make individual small iterative moves to try to get small improvements in performance that we can go ahead and spread out across the program.

Ezra Yacob: To be perfectly honest, I wouldn't say there are necessarily frontier basins in the Lower 48 left, but there are a lot of places where new technology needs to be reapplied to potentially some of the older resources, both conventional and unconventional, that haven't been looked at in a little while. As Keith alluded to, I think you're starting to see that kind of renaissance in Alaska as well, where whether it's new geologic models up there or new seismic processing, is really starting to unlock a lot of resource in an area that historically, obviously, is well known to be resource abundant. I think the same thing extends into Canada, certainly into Alberta.

Speaker #1: But there are a lot of places where new technology needs to be reapplied to potentially some of the older resources, both conventional and conventional, that haven't been looked at in a little while.

Speaker #1: So all in all, we're extremely happy with what we're seeing in the Delaware and our plans are to continue forward with our development strategy as we have been.

Speaker #1: As Keith alluded to, I think you're starting to see that kind of renaissance in Alaska as well. Where whether it's new geologic models up there, or new seismic processing is really starting to unlock a lot of resource in an area that historically obviously is well known to be a resource abundant.

Speaker #3: The next question comes from Philip Jungworth from BMO. Please go ahead.

Ezra Yacob: As Keith alluded to, I think you're starting to see that kind of renaissance in Alaska as well, where whether it's new geologic models up there or new seismic processing, is really starting to unlock a lot of resource in an area that historically, obviously, is well known to be resource abundant. I think the same thing extends into Canada, certainly into Alberta.

Speaker #6: Thanks. Good morning. When you come back to the UAE, when you say fiscal terms are competitive domestically, without getting into the specifics, but was just hoping you could frame this a little bit more just because historically Middle East onshore fiscals can be tougher as a low cost of supply region.

Speaker #1: And I think the same thing extends into Canada, certainly into Alberta.

Speaker #4: Appreciate it. Appreciate the context and if we could chat a little bit on Permian well performance, I mean, it was a big discussion point last quarter on how strong your early 26 wells have looked.

Speaker #6: Is there a tighter band around the return profile than what we typically see in the US? So risk-adjusted returns look a bit more favorable and then just any specifics on ad hoc back in if you ultimately move into development mode here.

Scott Hanold: Appreciate the context. If we could chat a little on Permian well performance. It was a big discussion point last quarter on how strong your early 2026 wells have looked. It looks like it kind of continues that. I know you've all discussed relative productivity year-over-year being somewhat flat, you guys got a good head start. Is this a trend that you all see could continue, or are you still expecting relatively flat year-over-year productivity?

Speaker #4: It looks like it kind of continues that. I know you've all discussed relative productivity, you're being somewhat flat, but you guys got a good head start and is this a trend that you all see could continue or are you still expecting relatively flat year-over-year productivity?

Speaker #1: Yeah, Philip, this is Ezra. There's not a whole lot that we can say about the specifics of the commercial terms. What I would say is what we've seen really globally and probably the best example, it began with our entry into Oman.

Speaker #1: Hey, Scott. This is Jeff. Yeah, as we talked about on previous calls and as we've highlighted, we had a shift in our development strategy there last year, added in multiple new high rate-of-return targets, and really, with the focus to continue to maximize the value of that asset.

Speaker #1: Is that we've seen some of the international, the NOCs really do a little bit of unconventional drilling. And what that's done is it's basically brought the education level as to the capital intensity of these unconventional plays it's essentially demonstrated it to them.

Jeff Leitzell: Hey, Scott, this is Jeff. Yeah, as we talked about on previous calls and we've highlighted, we had a shift in our development strategy there last year, added in multiple new high rate of return targets and really with the focus to continue to maximize value of that asset. Yeah, that's went outstanding. We continue to have excellent results deploying that same development strategy. The first thing is no changes there, still applying that same strategy. The well results that we're seeing are in line with our expectations from a forecast aspect. Obviously, you will have some variability as you move around your acreage. You've obviously got a little bit difference of a well mix there. On top of that, we're always innovating and we're looking to push operations technically.

Jeff Leitzell: We continue to have excellent results deploying that same development strategy. The first thing is no changes there, still applying that same strategy. The well results that we're seeing are in line with our expectations from a forecast aspect. Obviously, you will have some variability as you move around your acreage. You've obviously got a little bit difference of a well mix there. On top of that, we're always innovating and we're looking to push operations technically.

Speaker #1: And that has made the NOCs that we've engaged with much more willing to change some of the historical terms that they've had, which are more aligned with conventional development.

Speaker #1: And the well results that we're seeing are in line with our expectations. From a forecast aspect, I mean, obviously you will have some variability as you move around your acreage.

Speaker #1: You've obviously got a little bit different of a well mix there. But then on top of that, we're always innovating and we're looking to push operations technically.

Speaker #1: That's been the biggest change for us. And ultimately that's what's made some of these entries possible into both Oman Bahrain and the UAE. Is that the recognition that these are capital intensive projects.

Jeff Leitzell: Always looking to tweak our targets a little bit, every single well to get better. We're always looking to optimize our frac design, whether it's tweaking different components. One of the big things we focused on is adding additional horsepower and focusing on rate. All these little things help work towards well performance. What I'd say is we don't go for a home run. Really, we make individual small iterative moves to try to get small improvements in performance that we can go ahead and spread out across the program. All in all, we're extremely happy with what we're seeing in the Delaware and our plans are to continue forward with our development strategy as we have been.

Speaker #1: And that the old PSC structures weren't necessarily a great way to go. And so both of these agreements that we've entered into are concessions and concessions typically they do have a tax and royalty structure rather than that PSC, which makes it more attractive.

Speaker #1: One of the big things we focused on is adding additional horsepower and focusing on rate. So all these little things, help work towards well performance.

Jeff Leitzell: What I'd say is we don't go for a home run. Really, we make individual small iterative moves to try to get small improvements in performance that we can go ahead and spread out across the program. All in all, we're extremely happy with what we're seeing in the Delaware and our plans are to continue forward with our development strategy as we have been.

Speaker #1: And then ultimately what we want to have is line of sight that the subsurface quality and the surface environment as far as oil field surfaces and the way we structure the contract with our ability to bring in some of our own technology that if the model works the way we think it will, that we'll be able to make this competitive more than competitive with our existing domestic inventory.

Speaker #1: So, all in all, we're extremely happy with what we're seeing in the Delaware, and our plans are to continue forward with our development strategy as we have been.

Speaker #3: The next question comes from Philip Jungworth from BMO. Please go ahead.

Operator: The next question comes from Phillip Jungwirth from BMO. Please go ahead.

Speaker #5: Thanks. Good morning. When you come back to the UAE, when you say fiscal terms are competitive domestically, without getting into the specifics, but was just hoping you could frame this a little bit more, just because historically Middle East onshore fiscals can be tougher as a low-cost supplier region.

Phillip Jungwirth: Thanks. Good morning. When you come back to the UAE, when you say fiscal terms are competitive domestically, without getting into the specifics, but was just hoping you could frame this a little bit more, just because historically, Middle East onshore fiscals can be tougher as a low cost of supply region. Is there a tighter band around the return profile than what we typically see in the US? Risk-adjusted returns.

Speaker #1: And that would be on both a rate of return essentially an all-in rate of return and then on essentially an NPV. So both half cycle but really with an eye on full cycle economics.

Speaker #6: Okay, great. And then this could be an analog to what you've done here with the chalk in the quarter, but we've seen a bit more activity across the Delaware Woodford.

Speaker #6: I was wondering how you guys are viewing Woodford prospectivity across your New Mexico, Texas acreage or maybe some extension of it.

Speaker #1: Yeah, Philip, as you know, the Woodford across most of the Delaware basin is exceptionally deep, a bit more of a gas maturity. Up against the platform where I think publicly it's been disclosed that there are a number of wells that have been drilled up there amongst heavy faulting but where there is some oil window.

Speaker #1: As most of our acreage is in the deeper part of the basin, Lee County and Loving County where we see a great overpressure for much of the Permian section.

Speaker #1: The Woodford would be a pretty deep depth and quite frankly very gassy. I think industry-wide over the next couple of years, I'm not sure if the Woodford will move quite as fast as the Barnett on the Midland basin side of things because of that depth and phase.

Speaker #1: Maturity window. But it is something to, I think, for to pay attention to as industry moves forward.

Speaker #3: The next question comes from Gabe Dowd from Truist. Please go ahead.

Speaker #6: Thanks, operator. Good morning, everyone. As I was hoping we can maybe go back to the Delaware, just given the head start on the productivity side that was mentioned in the early question.

Speaker #6: Is the basin expected to be the key driver of your low single digit production growth this year, just given some of the other obviously opportunities within the portfolio?

Speaker #1: Yeah, Gabe, this is Ezra. In that three-year scenario, this year much of our oil growth year over year is really from the Encino acquisition as we bake that in.

Speaker #1: And then we do have growth coming dominantly out of the Utica for this year. And on our three-year scenario, with our multi-basin portfolio, the growth that we see that we've kind of modeled in that for a low single digit oil growth, it really comes it's driven dominantly from the Utica as a matter of fact.

Speaker #1: And the Delaware basin while it actually decreasing just a little bit year over year. And then in the three-year plan, it is probably more in line with being flat to maybe moderate growth.

Speaker #6: Thanks, Ezra. That's helpful. And then maybe just as a follow-up going back to exploration, and maybe a macro question as well. Can we get your updated thoughts around the gas macro and then from an exploration standpoint, is there a bias towards commodity?

Speaker #6: Maybe depending on your macro views on the gas side or is it commodity agnostic and just kind of focus on best resource return potential, et cetera?

Speaker #6: Thanks, guys.

Speaker #1: Yeah, Gabe, that's a great question on the gas side. Our outlook, we do remain constructive. It's underpinned by rising LNG feed gas demand, growing electricity, consumption, as well as steady industrial demand growth and to a lesser extent maybe exports to Mexico.

Speaker #1: We forecast US natural gas demand to grow between 3 and 5% on a compound annual growth rate through the end of the decade. We do expect storage levels to continue with increased volatility relative to that five-year average just because of the increased demand.

Speaker #1: So historically what we're seeing is gas was seasonally driven by weather and residential and commercial heating, which created these swings in cyclical demand. We really feel that the future is driven with AI-powered electricity demand, global LNG exports, industrial reshoring, and 24/7 baseload power to ensure grid reliability.

Speaker #1: So we do feel much more constructive going forward. Now, when it comes to our exploration program, we're probably slightly more biased to the oil side, but honestly it really comes down to returns for us.

Speaker #1: If we can find a high-quality subsurface reservoir combined with an ability to scale up and drive down our cost and really flex our operational capabilities, as long as we can deliver high returns and it's competitive with the existing inventory that we have, we'll take a hard look at it.

Speaker #1: But ultimately I think we cheat just a little bit towards being a little more being a little more optimistic or a little more exploration focused on the liquid side of things, just because the margins tend to be quite a bit greater than on the gas side.

Speaker #3: The next question comes from Scott Gruber from Citigroup. Please go ahead.

Speaker #6: Yes, good morning. I want to come back to the Middle East returns question. Ezra, you mentioned terms have improved with the desire for host countries to unlock their own conventionals.

Speaker #6: But how do you think about the proper return hurdle for commerciality in the Middle East, especially relative to the US? And has the conflict caused you to reassess the return hurdle at all?

Speaker #1: Yeah, it's an interesting question, Scott. It is still early in the project to be making decisions on DOC or FID or anything like that.

Speaker #1: So I'd phrase it maybe this way. We've since day one, we've considered the exploration phase to be as much about measuring the subsurface potential as the operating environment.

Speaker #1: And that includes availability of services, the quality of equipment, access to premium markets, but it also includes the overall political environment, the rule of law, our relationships with partners.

Speaker #1: And so that's always been part of what I would say is to reference the question earlier. That's always been built into our risk-adjusted returns.

Speaker #1: Is whether or not we can have a real sustained and ongoing high-return project there. Today, this might be a little bit contrarian, but we've actually been very, very happy with the partners because of the conflict that's going on.

Speaker #1: We've actually experienced very clear transparent communication we've seen great strategic alignment between EOG and ADNOC and BAPCO during a very, very challenging time. And I think the evidence is the fact that we've actually been able to continue operations in the UAE to a much lesser extent in Bahrain, but we've been able we've been able to continue operations there in the UAE with support from ADNOC.

Speaker #1: Of course, putting as Jeff said, the safety of our employees, contractors, and partners first and foremost. But to be perfectly honest, Scott, this unfortunate circumstance has been an opportunity to stress test the relationship with our partners and in these particular instances, we feel extremely fortunate to have entered the countries with the partnerships that we have in hand.

Speaker #6: No, I appreciate that color. And then coming back to the improvement in Permian well productivity, there were some pads put on production earlier this year that showed a healthy uplift in sand loadings, although there's been some debate around the accuracy of that data within the state data.

Speaker #6: So can you comment on that? Are there some areas where you're seeing a benefit from larger sand loadings in the Delaware or is that just one of the levers that may get tweaked and generally you're not kind of driving a step change in sand loadings in any area?

Speaker #1: Hey, Scott, this is Jeff. Yeah, you know what I'd say is no, there's not just one thing that we're really seeing there. It's not there's not a huge step change necessarily in our sand loadings over the last handful of years.

Speaker #1: I mean, we do tweak, as I said, we'll make little single iterative one variable moves. But we aren't doing anything crazy with any of our well designs like doubling our overall fluid loadings or sand loadings across it.

Speaker #1: What I'd say is it's a little bit more just kind of the standard innovative blocking and tackling, small little moves to try to see improvements.

Speaker #1: And the biggest one that I've seen, we've really done across the portfolio as I've talked about is focusing more on high-intensity, getting our horsepower up, giving our engineers the tools to be able to design the wells as they feel adequate to really maximize the overall productivity.

Speaker #1: So yeah, we can't point really to one single reason for the well productivity out there. Like I said, I think it's very consistent from our standpoint.

Speaker #1: It's in line with our expectations. So yeah, and we're just going to continue with our current development to program and we'll continue to iterate and try to optimize our overall designs.

Speaker #3: The next question comes from Charles Mead from Johnson Rice. Please go ahead.

Speaker #7: Good morning, Ezra. To you and your whole team there, I want to go back to the UAE and see if you can offer a little bit more detail.

Speaker #7: We're both of those wells testing the same concept and the same geologic setting. And how mature would you characterize your landing zone selection and your completion design at this point?

Speaker #1: Yeah, good morning. This is Keith. Yes, so the two wells that we brought on, they were two, one-mile wells. They are next to each other.

Speaker #1: So they're a little small pattern testing the same zone. Very happy with the first 30 days of production those wells averaged over 25,000 barrels of oil per well.

Speaker #1: So we don't look at just production we're looking at the pressure dynamics, and we like what we see there. For an oil well, the wells are naturally flowing up casing right now, and we're putting those in artificial lift in the coming weeks.

Speaker #1: Generally speaking, kind of what we look for in the early stages of any exploration play, there's a few things that we look at. We assess our gear steering and targeting execution.

Speaker #1: We like to see the confirmation of the fluid mix, relative to our initial model. We do like to flow those wells up casing without lift initially, just to assess the natural flow state that helps us understand not only what the reservoir looks like, but how that responds to our completion design.

Speaker #1: Moving forward, we'll be evaluating different options for the artificial lift. But the results from the first two wells are encouraging on all these measures that I'm talking about here.

Speaker #1: As we continue to assess the prospect we will be looking to complete wells in different areas. These two wells are in the same area of the 900,000-acre concession.

Speaker #1: We will definitely be testing different landing zones. And then we'll be continuing to evaluate the well performance over a longer period of time to establish a decline curve there.

Speaker #1: And I'd say that the completion design, we've been able to bring over the best practices from the Eagleford and our other domestic plays, but I think we're still in the early innings there too.

Speaker #1: We got to see how we think the formation responded to this and then make some tweaks to optimize.

Speaker #7: That's great color, Keith. Thank you. You got a lot of work to do there. And then if I could have a follow-up question on infrastructure in the Delaware basin.

Speaker #7: You guys spent some time in your prepared remarks talking about the Janus gas plant. And of course, you also had the Verity pipeline in the past.

Speaker #7: And I'm curious, that basin continues to set production records. Do you guys see the necessity for UAG to kind of step into that to the breach to handle some disconnects that maybe the where the midstream or service industry or maybe falling behind?

Speaker #7: Or is that mostly behind you at this point in the Delaware?

Speaker #1: Hey, Charles. This is Jeff. Thanks for the question. And it's a great one. It's one of the reasons that we originally built the gas processing plant, Janus, out there in the Permian is we did see very tight markets and actually the fees had moved away from us.

Speaker #1: And we had to lean in and build that. But what I'd say right additional egress coming on here. The back half of the year, there's another four or five to six BCF coming out of the basin.

Speaker #1: So that's going to cause some relief there. And we're seeing right now, at least from processing fees, that they're kind of status quo. So really what I think is it's one of those projects that we can expand it another 300 million a day, but we don't have to.

Speaker #1: And we can kind of utilize it and leverage it to kind of play the market if it does happen to move away from us again, then we can obviously lean in on that to go ahead and invest in that strategic infrastructure to reduce our overall fees and our GP&T.

Speaker #3: This concludes our question and answer session. I would like to turn the conference back over to Mr. Jacob for closing remarks.

Speaker #7: We appreciate everyone's time today. Just want to say thank you to our shareholders for your support and special thanks to our employees for delivering another exceptional quarter.

Q2 2026 EOG Resources Inc Earnings Call

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