Slides
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Accretive Acquisition Creates Premier Utica Asset PositionEOG to Acquire Encino Acquisition PartnersPearce Hammond, Vice President IR(713) 571-4684, phammond@eogresources.comNeel Panchal, Senior Director IR(713) 571-4884, npanchal@eogresources.comShelby O’Connor, Manager IR(713) 571-4560, soconnor@eogresources.com
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Accretive Acquisition Creates Premier Utica Asset PositionAcquisition Overview: Highly Contiguous Acreage & Strong Strategic Fit Acquisition Announcement2 Purchase Price:$5.6 Bn Maintains Industry Leading Balance Sheet NOEquityIssuanceBalance Sheet Funded: (1) Estimated average total production rate from May 30, 2025 agreement execution date through end of year.(2) Reflects core net acreage and associated estimated undeveloped net resource (not proved reserves). Total acquired acreage of ~1.2 MM net acres.(3) Estimated annualized accretion metrics based on May 30, 2025 agreement execution date.(4) Quarterly dividend declared May 30, 2025; indicated annual per-share rate of $4.08, as of May 30, 2025.Anticipate 2H 2025 Close DateOhioWest Virginia PennsylvaniaEOG AcreageEncino AcreageOverlapping Acreage 2025E Production1: Total Acreage2: Undeveloped Net Resource2:235 MBoed675KNetAcres1.0+BnBoeValue Accretive3: Raising Regular Dividend:5%10%Accretion to ‘25 EBITDAIncrease to$1.02 per share4Acquisition Overview9%Accretion to ‘25 CFO & FCF
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Accretive Acquisition Creates Premier Utica Asset PositionAcquisition Highlights: Size, Scale, Synergies, Returns, & Accretion Acquisition Announcement3 Expands Utica Asset Size and Scale•Acquiring 675K Net Acres1& 1.0+ Bn Boe of Undeveloped Net Resource2•Pro Forma Utica Totals 1.1 Million Net Acres3& 2.0+ Bn Boe of Undeveloped Net Resource2Strong Strategic FitReturns Focused AcquisitionImmediately Accretive, Meaningful Synergies•Accretive to EBITDA, CFO, FCF, NAV, & All Per Share Metrics•Estimated $150MM of Synergies Realized in First Year Primarily Driven By Lower Capital, Operating, & Debt Financing Costs •Benefits from Extended Laterals, Shared Facilities, & Self-Sourced MaterialsEOG Technical Expertise Enhances Returns•Industry Leading Drilling and Completions Technology Lowers Well Costs and Enhances Production Performance•Applying EOG’s Proprietary Information & Optimizer Technology to a Higher Production Base Lowers Operating Costs Enhances Liquids Acreage Footprint•Acquiring 235K Net Acres in the Volatile Oil Window•Pro Forma Utica Volatile Oil Window Totals 485K Net Acres•Delivers Operational Efficiencies Through Extended Laterals Increases Working Interest•Average Working Interest Increased by 20%+ in Northern Acreage•Highly Contiguous Northern Acreage Position Enables Extended Lateral DevelopmentAdds Premium Gas Exposure•Acquiring 330K Net Acres Across Wet and Dry Gas Windows•Pro Forma Gas Window Totals 405K Net Acres•Ample Processing Capacity & Firm Transportation to Premium End Markets(1) Reflects core net acreage. Total acquired acreage of ~1.2 MM net acres.(2) Net resource potential, not proved reserves. See related discussion under “Oil and Gas Reserves” on slide 12.(3) Reflects pro forma core net acreage.
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Contiguous Acreage Enhances Size and Scale in UticaPro Forma Utica: 1.1 MM Net Acres with 2.0+ Bn Boe of Undeveloped Resource1 Acquisition Announcement4 UticaAcreage1460KNet Acres1.1MMNet Acres675KNet AcresUndevelopedNet Resource11.0+ Bn Boe2.0+ Bn Boe1.0+ Bn Boe40% Oil 25% NGLs 35% Gas40 MboedTotalProduction3 25% Oil 30% NGLs 45% Gas275 Mboed20% Oil 30% NGLs 50% Gas235 Mboed2EOG AcreageEncino AcreageOverlapping Acreage Pro Forma Utica (1) Reflects core net acreage and associated estimated undeveloped net resource (not proved reserves). (2) Estimated average total production rate from May 30, 2025 agreement execution date through end of year.(3) Production calculated using product mix percentages may not sum due to rounding.OhioWest Virginia Pennsylvania
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Acquisition Expands Liquids Acreage Footprint and Adds Premium Gas Exposure Acquisition Announcement5EOG AcreageEncino AcreageOverlapping Acreage Natural Gas WindowPro Forma:405K Net Acres330K Net AcresEncino:75K Net AcresEOG:EOG AcreageEncino AcreageOverlapping Acreage Volatile Oil WindowPro Forma:485K Net Acres235K Net Acres250K Net AcresEncino:EOG:
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Highly Contiguous Northern Acreage PositionIncreases Working Interest and Enables Extended Lateral Development Acquisition Announcement620%+in Northern AcreageIncreases Average Working InterestHighly Contiguous AcreageEnables Extended Lateral DevelopmentEOG AcreageEncino AcreageOverlapping Acreage
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EOG Technical Expertise Enhances Returns in Acquired AcreageAverage Cumulative Oil & Total Production1 Acquisition Announcement70510152025300 2 4 6 8 10 12EOGBoe/ft+10%Encino Volatile Oil WindowEOG Volatile Oil WindowEOGBo/ft+8%1 Year500550600650700750800Encino EOG Total Well Cost$/ftTotal Production, Boe/ftOil Production, Bo/ft~15%LowerTWC/ftEncinoEOG<$650/ft~$750/ft(1) 2022-2024 average cumulative production for wells in the volatile oil window.
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Differentiated High-Return Multi-Basin Portfolio Acquisition Announcement8 Average Direct After-Tax Rate of ReturnFor 12+ Bn Boe of Total Net Resource for EOG55%100%200%$45 & $2.50 $55 & $3.00 $65 & $3.50>55%>100%>200% Pro Forma Utica1.1 MM Net Acres1Acreage2.0+ Bn Boe1UndevelopedNet ResourceFinding Cost<$7 Per BoeGross EURGas Window2.0-2.8MMBOEGross EUR Volatile Oil Window1.2-2.0MMBOEWell Cost<$650 Per FtNow Includes 2.0+Bn Boe High-Return Utica Net ResourceWI / NRI80%/ 69%(1) Reflects pro forma core net acreage and associated estimated undeveloped net resource (not proved reserves).
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Premier Utica Asset Moves to Foundational PlayHighly Competitive in Differentiated Multi-Basin Portfolio Acquisition Announcement9 “The acquired acreage enhances our size, scale, and returns in the play, moving the Utica to a foundational pillar of EOG’s differentiated, top tier, multi-basin portfolio.”Utica Delaware EFUtica Delaware EFUtica Delaware EFLateral LengthftUticaDelaware BasinEagle FordUticaDelaware BasinEagle FordUticaDelaware BasinEagle FordDirect Well Cost$/ftFinding Cost$ per Boe15K+10K+12K+<$650/ft<$750/ft<$550/ft<$7/Boe<$6/Boe<$10/Boe
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Maintains Industry Leading Balance Sheet With No Change to Additional Cash Return Acquisition Announcement10$4.7$7.71Q2025 Post Close $5.6 BnNOEquityIssuanceAttractivePurchase Industry LeadingPrice at ~$45 WTI$6.6$4.01Q2025 Post Close 1.0xDebt to EBITDA<Balance SheetDebt$BnCash$Bn•~$2.1 Bn for Encino Acquisition1•$500 MM for April 2025 Notes Maturity•$275 MM for Eagle Ford Bolt-On Acquisition~$3.7•Issuing ~$3.5 Bn for Encino Acquisition1•Repaid $500 MM of Notes in April 2025~$7.7Acquisition Contributes to Raising Regular Dividend +5%Additional Cash Return Through Opportunistic Share Repurchases and Special DividendsMaintains (1) Reflects EOG’s current expectations for funding of Encino Acquisition (as of May 30, 2025).
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EOG AcreageEncino AcreageOverlapping Acreage Acquisition Furthers Aim to Deliver Sustainable Value Creation Through Industry Cycles Acquisition Announcement11 Capital Discipline•Returns-Focused Acquisition Lowers Finding Cost of Resource Base•All-Cash Acquisition Funded by Industry Leading Balance Sheet•Raising Regular Dividend by 5% with No Change to Additional Cash ReturnOperational Excellence•High Quality Net Resource Addition to Multi-Basin Inventory•Superior In-House Technical Expertise, Proprietary Information Technology, and Self-Sourced Materials Support Well Performance & Cost Control in Acquired Acreage•Acreage Footprint Delivers Product and Pricing DiversificationSustainability•Committed to Safe Operations, Leading Environmental Performance, and Community EngagementCulture•Decentralized, Non-Bureaucratic Structure Enables Value Creation in the Field, at the Asset Level•Collaborative, Multi-Disciplinary Teams Drive Innovation•Technology Leadership and Real-Time, Data-Driven Decision Making OhioWest Virginia Pennsylvania
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Copyright; Assumption of Risk:Copyright 2025. This presentation and the contents of this presentation have been copyrighted by EOG Resources, Inc. (EOG). All rights reserved. Copying of this 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 orconsequential damages resulting from the use of the information.Cautionary Notice Regarding Forward-Looking Statements:This presentation may includeforward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, including, among others, statements and projections regarding thestrategic rationale, timeline and anticipated benefits of the proposed acquisition of Encino/EAP (the “Transaction”), statements regarding EOG’s future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, operatingcosts and asset sales, 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,” “aims,”“ambition,” “initiative,” “goal,” “may,” “will,” “focused on,” “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 (i) EOG’s future financial or operating results and returns,(ii) EOG’s ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach orotherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters or safety matters, pay and/or increase regular and/or special dividends or repurchase shares or (iii) the timeline for, the successful integration of, the strategic rationale for, or the anticipated benefits of, theproposed Transaction, in each case are forward‐looking statements. Forward-looking 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 such assumptionsare accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG’s forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that maybe 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:•EOG’s ability to complete the proposed Transaction on the proposed terms or anticipated timeline (or at all);•risks related to the satisfaction or waiver of the conditions to closing the proposed Transaction, including receipt of clearance under theHart-Scott-Rodino Act;•EOG’s failure to realize, in full or at all, the anticipated benefits of the proposed Transaction;•business disruptions resulting from the proposed Transaction that could harm EOG’s business operations, including current plans and operations and the diversion of management’s attention from EOG’s ongoing business operations;•the timing, magnitude and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities;•the extent to which EOG is successful in its efforts to acquire or discover additional reserves;•the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximizereserve recoveries from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;•the success of EOG’s cost-mitigation initiatives and actions in offsetting the impact of any inflationary or other pressures on EOG’s operating costs and capital expenditures;•the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas;•security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with whichwe transact business, and enhanced regulatory focus on the prevention of, and disclosure requirements relating to, cyber incidents;•the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment;•the availability, cost, terms and timing of issuance or execution of mineral licenses, concessions and leases and governmental and other permits and rights-of-way, and EOG’s ability to retain mineral licenses, concessions and leases;•the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax or other emissions-related legislation); environmental, healthand safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gasproduction; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial and otherderivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;•the impact of climate change-related legislation, policies and initiatives; climate change-related political, social and shareholder activism; and physical, transition and reputational risks and other potential developments related to climate change;•the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other environmental or safety-related initiatives and achieve its related targets, goals, ambitions and initiatives;•EOG’sability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to suchproperties;•the extent to which EOG’s third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations;•competition in the oil and gas exploration and production industry for the acquisition of licenses, concessions, leases and properties;•the availability and cost of, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services;•the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;•weather and natural disasters, including its impact on crude oil and natural gas demand, and related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities;•the ability of EOG’s customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;•EOG’s ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;•the extent to which EOG is successful in its completion of planned asset dispositions;•the extent and effect of any hedging activities engaged in by EOG;•the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;•the economic and financial impact of epidemics, pandemics or other public health issues;•geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflicts), including in the areas in which EOG operates;•the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; and•the other factors described under ITEM 1A, Risk Factors of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 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 or extent of their impact on our actual results. Accordingly, you should not place anyundue 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: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 gasrecovered. Any reserve or resource estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include “potential” reserves, “resource potential” and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplatedby, 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, 2024 (and any updates to such disclosure set forth in EOG’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K),available from EOG at P.O. Box 4362, Houston, Texas 77210‐4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1‐800‐SEC‐0330 or from the SEC's website at www.sec.gov.Acquisition Announcement12