NYSE Stock Symbol: Common Dividend: $0.67 Basic Shares Outstanding: 550 Million. Internet Address:

Transcription

1 NYSE Stock Symbol: EOG Common Dividend: $0.67 Basic Shares Outstanding: 550 Million Internet Address: Investor Relations Contacts Cedric W. Burgher, SVP Investor and Public Relations (713) , David J. Streit, Director IR (713) , Kimberly M. Ehmer, Manager IR (713) ,

2 Copyright; Assumption of Risk: Copyright This presentation and the contents of this presentation have been copyrighted by EOG Resources, Inc. (EOG). All rights reserved. Copying of the presentation is forbidden without the prior written consent of EOG. Information in this presentation is provided as is without warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose and the timeliness of the information. You assume all risk in using the information. In no event shall EOG or its representatives be liable for any special, indirect or consequential damages resulting from the use of the information. Cautionary Notice Regarding Forward-Looking Statements: This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, reduce or otherwise control operating and capital costs, generate income or cash flows or pay dividends are forward-looking statements. Forwardlooking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others: the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities; the extent to which EOG is successful in its efforts to acquire or discover additional reserves; the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects; the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production; the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, transportation and refining facilities; the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG s ability to retain mineral licenses and leases; the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations; environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities; EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties; the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically; competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services; the availability and cost of employees and other personnel, facilities, equipment, materials (such as water) and services; the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression and transportation facilities; the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG; EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements; the extent and effect of any hedging activities engaged in by EOG; the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions; political conditions and developments around the world (such as political instability and armed conflict), including in the areas in which EOG operates; the use of competing energy sources and the development of alternative energy sources; the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; acts of war and terrorism and responses to these acts; physical, electronic and cyber security breaches; and the other factors described under ITEM 1A, Risk Factors, on pages 13 through 21 of EOG s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration and extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. Oil and Gas Reserves; Non-GAAP Financial Measures: The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only proved reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also probable reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as possible reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include "potential" reserves and/or other estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC s latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, available from EOG at P.O. Box 4362, Houston, Texas (Attn: Investor Relations). You can also obtain this report from the SEC by calling SEC-0330 or from the SEC's website at In addition, reconciliation and calculation schedules for non-gaap financial measures can be found on the EOG website at

3 1Q 2016 Announced Successful Enhanced Oil Recovery Project In Eagle Ford Established Austin Chalk Play Overlaying South Texas Eagle Ford Exceeded U.S. Oil Production Forecast Reduced LOE per BOE 29% YoY Operations Increased 2016 U.S. Oil Production Forecast* by 2% On Track to Achieve 47% YoY Capital Expenditure Decrease* Two-Thirds of Well Cost Reductions from Sustainable Efficiency Improvements Lowered 2016 LOE, Transportation and G&A Expense Forecast* * Based on full-year estimates as of May 5, 2016, excluding acquisitions. Bernstein _0516-1

4 Shifting to Premium Locations - Generate at Least 30% Direct ATROR* at $40 Oil Premium Inventory >10 Years and Growing - Adding New Premium Inventory 2-3 Times Faster Than Drilling - Improve Existing Plays With Technology and Innovation - Organic Exploration and Tactical Acquisitions Premium Drilling Significantly Increases Capital Productivity - Oil Production Declines Just 5% YOY With 47% Less Capital** - Drill 200 Net Wells and Complete 270 Net Wells Drilled Uncompleted Net Wells At YE 2016 Maintain Strong Balance Sheet * See reconciliation schedules. ** Based on full-year estimates as of May 5, 2016, excluding acquisitions Focus on Returns Low-Cost Global Oil Producer Bernstein _0516-2

5 New Standard of Capital Discipline Creates Large Capital Efficiency Gains Faster Production Growth Premium Drilling Direct ATROR* 60% 100%+ Adding Locations Faster Than Drilling Extends U.S. Horizontal Lead Globally Competitive 10% 30% Oil: $30 $40 $50 $60 2 BnBoe* >3,200 Locations >10 Years of Drilling * Estimated potential reserves net to EOG, not proved reserves. See reconciliation schedules. Bernstein _0516-3

6 Focus on Premium Locations Precision Targeting 120-Day Cumulative Oil Production* (Bbl Per Foot of Treated Lateral) 20.9 Advanced Completions Lower Costs Est * Domestic completions, gross oil production. Bernstein _0516-4

7 $40 Oil Premium Inventory 30% 60% 15% Eagle Ford Delaware Basin Wolfcamp - Oil and Combo Delaware Basin 2 nd Bone Spring Sand Delaware Basin Leonard Bakken/Three Forks Core Powder River Basin 40% Wyoming DJ Basin 5% 10% Bakken/Three Forks Non-Core $50 Oil Direct ATROR* Based on cash flow and time value of money: - Estimated Future Commodity Prices and Operating Costs - Costs Incurred to Drill, Complete and Equip a Well Excludes Indirect Capital: - Gathering, Processing and Other Midstream - Land, Seismic, Geological and Geophysical * Direct ATROR at Flat Oil Prices. See reconciliation schedules. Oil price at the wellhead, natural gas price $2.50 per MMBtu. Bernstein _0516-5

8 Well Count 300 Percent Oil 100% 250 Well Count Percent Oil 80% % % 50 20% 0 EOG A B C D E F G H I J K L M N O P Q R S 0% * Source: Sanford C. Bernstein & Co. Thousand Club includes wells with 30-day rate over 1,000 Boed in Represents 3,600 wells out of 40,000 drilled. Companies: BHP, CHK, CLR, COG, COP, CXO, DVN, EPE, EQT, HES, MRO, NBL, PXD, RRC, RICE, SM, SWN, TOU, XEC. Bernstein _0516-6

9 EOG > 2X Industry Average Bopd EOG Industry * Eagle Ford, Bakken, Permian, DJ and PRB. Source: IHS Performance Evaluator, supplied by IHS Global Inc.; Copyright (2016). 1/1/13 through 6/30/15. Bernstein _0516-7

10 Four Gas Injection Pilot Projects with 15 Producing Wells - One Additional Project Planned for 2016 with 32 Wells - Geologically and Geographically Diverse - EOR Incremental Production in ,000 Net Bopd Attractive Economics - ATROR* >30% and PVI** >2.0 at $40 Oil - Finding Cost <$6 per Barrel - Capital Investment $1MM per Well - Long Reserve Life and Low Decline Rate Extended Development Timeline - Limited to Developed Areas - Evaluating Optimal EOR Development Plan - Studying Extent of EOR Applicability Across Field Not Widely Repeatable across Other Tight Oil Plays - Good Vertical Containment - Black Oil Window - EOG Eagle Ford Uniquely Positioned in Optimal Setting * See reconciliation schedules. Natural gas price $2.50 per MMBtu Henry Hub. ** Net present value divided by capital investment. Bernstein _0516-8

11 (Net Mbo) Enhanced Oil Recovery 1.3x 1.7x Primary Recovery 1.0x Years Bernstein _0516-9

12 New Geologic Concept In an Existing Play Precision Targeting Key Responds Well to EOG-Style Completions Overlays Existing Eagle Ford Acreage Exhibiting Premium-Level Well Performance Two Exploratory Wells Completed YTD; Plan 7 Additional Wells in Leonard AC Unit 101H 30-Day IP: 2,100 Bopd and 2,715 Boed - Denali Unit 101H 20-Day IP: 2,265 Bopd and 3,130 Boed Bernstein _

13 Delaware Basin Wolfcamp Oil Play South Texas Eagle Ford Bakken Target Target Target * Normalized to 4,500 lateral. * Normalized to 5,300 lateral. * Normalized to 8,400 lateral. * CWC = Drilling, Completion, Well-Site Facilities and Flowback. Bernstein _

14 Delaware Basin Wolfcamp Oil Play South Texas Eagle Ford Bakken Record Record Record * Normalized to 4,500 lateral. * Normalized to 5,300 lateral. * Normalized to 8,400 lateral. Bernstein _

15 $17.02 $15.39 $14.49 $13.72 $12.84* $11.96* Q15 2Q15 3Q15 4Q15 1Q16 G&P G&A Taxes Other Than Income Transportation LOE * Excludes one-time expenses of $18.7 million in 4Q15 related to early leasehold termination and $22.4 million in 1Q16 related to voluntary retirement program. Includes stock compensation expense and other non-cash items. See reconciliation schedules. Bernstein _

16 High-Quality Assets With Scale - Large Eagle Ford, Bakken and Delaware Basin Footprints - Scale Drives Cost Savings and Leverages Technology Gains Innovation and Technology Focus - In-House Completion Design - Merging Data Science and Geoscience Low-Cost Operator - Highest Production Per Employee in Peer Group - Vertically Integrated: Self-Sourced Sand, Chemicals and Drilling Fluids Organic Exploration Growth - Internal Prospect Generation First-Mover Advantage - Replacing Inventory at 2x Drilling Pace Organization and Culture - Decentralized Structure Bottom-Up Value Creation - Returns-Driven Culture Significant Employee Compensation Criteria Sustainable Competitive Advantage Bernstein _

17 EOG Competitive Globally Brent ($/BBL) $100 $90 $80 New Marginal Cost of Oil $70 $60 $50 $40 $30 $20 Middle East ( $65 - $75) Far East Mexico Nigeria Venezuela U.S. Tight Oil Russia EOG ($30) * North Sea GOM Angola Brazil Oil Sands US L48 Conv Russia $10 $0 Middle East/Russia Medium Cost Conventional US Tight Oil Deep Water High Cost Non-OPEC Arctic / Russian Unconventional % World Supply 50% 22% 5% 16% 7% - * Price required to achieve 10% Direct ATROR (see reconciliation schedules). Source: PIRA. Bernstein _

18 A B C D E F G H I J Peer Avg K EOG L M N Source: UBS Investment Research. Net debt as of 12/31/15 and 2016E EBITDAX as of April 18, Based on $40/Bbl WTI and $2.40/MMBtu. Peer Group: APA, APC, CLR, COG, COP, CXO, DVN, HES, MRO, NBL, NFX, OXY, PXD and RRC. Bernstein _

19 Reset Company to Be Successful At Low Prices Improve Well Productivity with Technology and Innovation - Enhanced Oil Recovery - Precision Lateral Targeting and High-Density Completions Lower Costs - Identify Further Efficiency Improvements - Enhance Infrastructure Extend Our Lead - Add Premium-Quality Drilling Potential Through Organic Exploration - Develop Only Premium Locations Going Forward Maintain a Strong Balance Sheet - Balance Capex to Cash Flow - Recycle Inventory Through Asset Sales Resume High-Return Growth When Prices Improve Bernstein _

20 Bernstein _

21 Play Net Acres Remaining Locations* Total Premium Resource Potential (MMBoe)** Eagle Ford 549,000 5,200 1,535 3,200 Bakken/Three Forks Core 120, Bakken/Three Forks Non-Core 110, Delaware Basin Wolfcamp 168,000 2, ,300 Delaware Basin 2 nd Bone Spring Sand 111,000 1, Delaware Basin Leonard 93,000 1, DJ Basin 85, Powder River Basin 63, ,300,000 12,500 3,200 7,000 Inventory Growing in Quality and Size * Number of remaining net wells as of January 1, Assumes no further downspacing, acreage additions or enhanced recovery. ** Estimated potential reserves net to EOG, not proved reserves. Includes proved reserves and prior production from existing wells. Bernstein _

22 7x Production Since ,885 1,610 1,600 1,400 Eagle Ford Bakken/Rockies Delaware Basin 700 Barnett Combo * Estimated potential reserves net to EOG, not proved reserves. Bernstein _

23 1st 3 Months Bopd/Boed Wolfcamp Delaware Wolfcamp Midland Natural Gas Well Count Number of Wells EOG A B C D E F G H I J K 0 Average three-month production, normalized to 5,000 lateral. All horizontal wells from original operator January 2015 February Gas production converted at 20:1. Delaware Basin: Culberson, Eddy, Lea, Loving, Reeves and Ward counties. Peer Companies: APA, APC, CXO, XEC. Midland Basin: Martin, Midland and Upton counties. Peer Companies: APA, CXO, FANG, PE, PXD, RSPP, QEP. Source: IHS Performance Evaluator, supplied by IHS Global Inc.; Copyright (2016). Bernstein _

24 Largest Oil Producer and Acreage Holder in the Eagle Ford - Average 5 Rigs Operating in Complete 150 Net Wells in 2016 vs. 329 in 2015 San Antonio BEXAR GUADALUPE GONZALES FAYETTE LAVACA Estimated Resource Potential 3.2 BnBoe;* 7,200 Net Wells - EUR 450 MBoe/Well, NAR at 40-Acre Spacing Precision Targeting - Lateral Drilling Window 20 vs. Prior 150 Acreage 91% Held by Production at YE Q 2016 Wells 30-Day IP: Bopd Boed - Stills Unit 2H 2,775 3,490 - Fleetwood Unit 5H-8H 2,330 2,995 - Boedeker 18H 2,305 2,760 KINNEY MAVERICK Laredo UVALDE ZAVALA DIMMIT WEBB MEDINA FRIO Crude Oil Window LA SALLE Wet Gas Window Dry Gas Window ATASCOSA MCMULLEN WILSON LIVE OAK KARNES BEE Corpus Christi EOG 608,000 Net Acres 549,000 Net Acres in Oil Window DE WITT 0 25 Miles 2016 Operations Focused on Premium Locations Few Lease Retention Obligations Testing Stacked-Staggered W Patterns 200 to 250 Apart Reducing Operating Costs Through Sustainable Efficiencies NGLs 11% Gas 13% Oil 76% Current Production Mix * Estimated potential reserves net to EOG, not proved reserves. Includes 1,032 MMBoe proved reserves booked at December 31, 2015 and prior production from existing wells. Bernstein _

25 Direct ATROR* 100% 80% 60% 40% 20% 0% $30 $40 $50 $60 $70 Flat Oil Price $/Bbl * See reconciliation schedules. Natural gas price $2.50 per MMBtu Henry Hub. Bernstein _

26 Brushy Canyon City Hall Leonard A Leonard B Wall Street 4,800 1 st Bone Spring 2 nd Bone Spring 3 rd Bone Spring Upper Wolfcamp Battery Park Middle Wolfcamp Lower Wolfcamp Battery Park to Wall Street to City Hall 4,800 One World Trade Center 1,792 Middle Bakken Lower Eagle Ford Bernstein _

27 168,000 Net Acres Prospective with Multiple Target Zones - 4,500 Average Lateral; 700 Spacing - 2,130 Net Drilling Locations - Complete 60 Net Wells in 2016 vs. 28 in 2015 Estimated Resource Potential 1.3 BnBoe,* Net to EOG Oil Play - 110,000 Net Acres, 1,375 Locations - EUR 750 MBoe, Gross; 600 MBoe, NAR - CWC** $7.5MM in 2015; Target $6.7MM Combo Play - 58,000 Net Acres, 755 Locations - EUR 900 MBoe, Gross; 675 MBoe, NAR - CWC** $6.6MM in Acquired 8,000 Net Acres in 4Q 2015 Testing 500 Spacing and Additional Targets - Extending Lateral Lengths Wolfcamp Oil Window Wells Bopd Boed Lateral - 1Q Wells 30-Day IP 1,480 2,150 4,500 - Rattlesnake 21 Fed Com #701H 20-Day IP 2,670 3,735 7,000 - Rattlesnake 21 Fed Com #702H 20-Day IP 2,870 4,010 7,100 NGLs 24% Gas 26% NGLs 33% Gas 36% Oil 50% Typical Northern Wolfcamp Oil Well Oil 31% Typical Reeves County Wolfcamp Combo Well * Estimated potential reserves net to EOG, not proved reserves. Includes 211 MMBoe of proved reserves booked at December 31, 2015 and prior production from existing wells. ** CWC = Drilling, Completion, Well-Site Facilities and Flowback Bernstein _

28 Second Bone Spring Sand 111,000 Net Acres Prospective in Northern Delaware Basin - 1,250 Net Drilling Locations; 850 Spacing - Complete 10 Net Wells in 2016 vs. 27 in 2015 Estimated Resource Potential 500 MMBoe,* Net to EOG Typical Well - 4,500 Lateral - EUR 500 MBoe, Gross; 400 MBoe, NAR - $6.6 MM CWC** in API NGLs 17% Gas 23% Oil 60% Leonard Shale 93,000 Net Acres Prospective - >1,600 Net Drilling Locations; 12 Net Wells Completed in 2015 Estimated Resource Potential 550 MMBoe,* Net to EOG - Evaluating Oil Mix; Highly Variable Across the Play Typical Well - 4,500 Lateral - EUR 500 MBoe, Gross; 400 MBoe, NAR - $5.8 MM CWC** in 2015 Typical 2 nd Bone Spring Sand Well * Estimated potential reserves net to EOG, not proved reserves. Includes 64 MMBoe of proved reserves in Second Bone Spring Sand and 72 MMBoe in Leonard Shale booked at December 31, 2015 and prior production from existing wells. ** CWC = Drilling, Completion, Well-Site Facilities and Flowback. Bernstein _

29 Focus on Premium Locations in Bakken Core Complete 10 Net Wells in 2016 vs. 25 in 2015 State Line Canada Stanley, ND Estimated Resource Potential 1.0 BnBoe* - 1,540 Net Remaining Locations - 8,400 Lateral - $7.2 MM CWC** in 2015; Target $6.2MM Spacing Completed 1 Net Well in 1Q Liberty H 30-Day IP: 1,565 Bopd Achieved Significant Operating Cost Savings - LOE/Boe Declined 35% YOY in 1Q 2016 Elm Coulee Bakken Subcrop 20 Miles Core Non-Core Bakken Lite Bakken Core Antelope Extension EOG Acreage Bakken/Three Forks Bakken Oil Saturated Reserve Potential* Gross/Net Net Area MMBoe, Net EUR (MBoe/Well) Locations Core / Non-Core / Existing Wells / Total 1,020 2,100 * Estimated potential reserves net to EOG, not proved reserves. Includes 165 MMBoe proved reserves in Bakken/Three Forks booked at December 31, Includes prior production from existing wells. ** CWC = Drilling, Completion, Well-Site Facilities and Flowback. NGL 15% Gas 15% Oil 70% Remaining Wells Bernstein _

30 (MBod) ,252 8,959 9,198 9,423 9,129 9,648 9,451 9,341 9, ,479 9,433 9,453 9,407 9,315 9,379 9,329 9,246 9,180 9,129 9,037 8, ,754 8,835 8,799 8,577 8,678 8,568 8,244 7,998 8,087 8,629 8,508 8,253 8,222 8,228 8,152 8,141 8,112 8,178 8,150 8,189 8,075 8,006 8,002 8,115 8,082 7,860 7,792 7,951 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov * EIA STEO Model Released April 2016 Bernstein _

31 EOG Creates Most NPV per Well $4.3MM Top 10 Producers** -$1.3MM $0.8MM EOG EOG Premium Wells Industry production data from IHS. EOG economic analysis. * * NPV calculated using $50 WTI and $2.50 NYMEX fixed for life of well. ** Top 10 Operators are 30% less productive than EOG. Assumes industry capital and operating costs equal to EOG. Bernstein _

32 Eagle Ford West Wells Average Cumulative Oil Production* Eagle Ford East Wells Average Cumulative Oil Production* (Mbo) (Mbo) Producing Days Producing Days * Normalized to 6,600-foot lateral. * Normalized to 4,600-foot lateral. Bernstein _

33 2010 Completions 540 Events /1,000 ft 2015 Completions 4,030 Events /1,000 ft Enhance Complexity to Contact More Surface Area Contain Events Closer to Wellbore Note: Microseismic dots represent well stimulation events during completions. Bernstein _

34 1. Measure Rock Characteristics and Grade High to Low Quality 2. Overall Grade 3. Drill Lower Eagle Ford Bernstein _

35 $8.3 Bn $0.7 $1.4-44% $4.7 Bn $0.3 $ Oil Production (MBopd) Gathering, Processing and Other Exploration and Development Facilities Exploration and Development $6.2 $3.6-47% $2.4 - $2.6 Bn $0.1 $ $ * 0.00 * Based on full-year estimates as of May 5, 2016, excluding acquisitions. Bernstein _

36 3/4 Savings From Efficiencies Sustainable Efficiency Improvements $8.3MM +$0.4MM -$1.5MM Flowback & Facilities Water Handling -$0.5MM $6.7MM Drilling Faster Completion Operations Efficiency Savings $1.5MM Per Well Supervsion & Labor Flowback & Facilities Pressure Pumping 1Q 2015 High- Efficiencies Pricing 2016 Density Target Completions Price Savings $0.5MM Per Well Drilling Rentals & Equipment Wireline * CWC = Drilling, Completion, Well-Site Facilities and Flowback. Bernstein _

37 370 EOG is Industry Leader EOG A B C D E F G H I Source: IHS. As of November, Peer companies: APC, CHK, CLR, COP, DVN, MRO, PXD, WLL and XOM. Bernstein _

38 9.0% 8.1% 7.3% 6.5% 5.2% 5.1% 4.9% 4.4% 2.9% 2.6% EOG A B C Peer Avg D E F G H Source: FactSet, adjusted earnings. Peer companies: APC, APA, CHK, DVN, HES, MRO, NBL and PXD. Bernstein _

39 EOG Employees Are Incentivized to Deliver Returns Returns Production and Reserve Growth EOG 8% 25% A 10% 30% B 45% C 40% D 30% E 10% 30% F 58% G 10% H 30% Source: Company Reports. Percentages represent weightings applied in determining executive officer short-term incentive compensation. Peer Group: APA, APC, CHK, DVN, HES, MRO, NBL and PXD. Bernstein _

40 $0.70 Committed to the Dividend 16 Dividend Increases in 17 Years $0.67 $0.67 $0.60 $0.59 $0.50 $0.40 $0.30 $0.26 $0.29 $0.31 $0.32 $0.34 $0.38 $0.20 $0.18 $0.12 $0.10 $0.03 $0.04 $0.04 $0.04 $0.05 $0.06 $0.08 $ * Note: Dividends adjusted for 2-for-1 stock splits effective March 1, 2005 and March 31, * Indicated annual rate. Bernstein _

41 Trinidad Trinidad and Tobago Sercan Joint Development Project - 5-Well Program - Complete One Well Late 2016 Limited Capital Spending in 2016 Active Exploration Program United Kingdom East Irish Sea (Conwy) - Production Commenced March Under Production Test to Determine Optimal Long-Term Rate TRINIDAD VENEZUELA United Kingdom East Irish Sea ATLANTIC OCEAN SECC U(b) 4(a) U(a) NORTH SEA Bernstein _

42 Maintain Strong Balance Sheet - Investment Grade Credit Ratings Successful Efforts Accounting Zero Goodwill $2.7 Billion in Available Liquidity - $0.7 Billion Cash at March 31, $2.0 Billion Credit Facility Undrawn at March 31, 2016 Increased Dividend 16 Times in 17 Years - Current Indicated Annual Rate $0.67 per Share EOG Reserves Within 5% of Independent Engineering Analysis - Prepared by DeGolyer and MacNaughton - 28 Consecutive Years - Reviewed 86% of 2015 Proved Reserves Bernstein _

43 Copyright; Assumption of Risk: Copyright This presentation and the contents of this presentation have been copyrighted by EOG Resources, Inc. (EOG). All rights reserved. Copying of the presentation is forbidden without the prior written consent of EOG. Information in this presentation is provided as is without warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose and the timeliness of the information. You assume all risk in using the information. In no event shall EOG or its representatives be liable for any special, indirect or consequential damages resulting from the use of the information. Cautionary Notice Regarding Forward-Looking Statements: This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, reduce or otherwise control operating and capital costs, generate income or cash flows or pay dividends are forward-looking statements. Forwardlooking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others: the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities; the extent to which EOG is successful in its efforts to acquire or discover additional reserves; the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects; the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production; the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, transportation and refining facilities; the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG s ability to retain mineral licenses and leases; the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations; environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities; EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties; the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically; competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services; the availability and cost of employees and other personnel, facilities, equipment, materials (such as water) and services; the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression and transportation facilities; the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG; EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements; the extent and effect of any hedging activities engaged in by EOG; the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions; political conditions and developments around the world (such as political instability and armed conflict), including in the areas in which EOG operates; the use of competing energy sources and the development of alternative energy sources; the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; acts of war and terrorism and responses to these acts; physical, electronic and cyber security breaches; and the other factors described under ITEM 1A, Risk Factors, on pages 13 through 21 of EOG s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration and extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. Oil and Gas Reserves; Non-GAAP Financial Measures: The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only proved reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also probable reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as possible reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include "potential" reserves and/or other estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC s latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, available from EOG at P.O. Box 4362, Houston, Texas (Attn: Investor Relations). You can also obtain this report from the SEC by calling SEC-0330 or from the SEC's website at In addition, reconciliation and calculation schedules for non-gaap financial measures can be found on the EOG website at