EOG Resources Inc at JPMorgan Energy, Power & Renewables Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Well, Jeff, any investment in E&P involves understanding the macro picture because you're a price taker, right, at the end of the day? I was wondering if you could highlight maybe the macro picture because I know EOG's fundamentals team does a lot of great work in terms of both commodities.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Great. Want to shift gears a little bit and talk a little bit about organic exploration opportunities. More recently, EOG has highlighted entry in three emerging plays, Dorado, the Powder River Basin, and Utica. Let me start with just questions outside of North America, or the US, how do you think about exploration opportunities outside the US shale?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : We have some Canadian companies presenting at the conference. How would you think about the unconventional opportunity north of the border of the US or Canada?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Makes sense. Let me shift gears and talk about the US. On the 1Q call, Ezra talked about promising early test from the stealth play. I don't expect you to give us more details, but give us a sense of where some of the testing and evaluation work is in -- domestically.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Of course.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. Next question is, EOG has always taken kind of a low cost approach to portfolio renewal compared to many of your peers who've participate in large-scale M&A. Jeff, nearly every one of your larger cap peers Apache, Conoco, Chevron, Diamondback, Oxy, have completed or trying to complete large-scale M&A and you think about Exxon as well into that bucket. Clearly, investors seem to be a little bit worried about your overall inventory depth? And have you missed the boat in terms of pursuing some of these inorganic opportunities? How would you respond to that?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : All right. The last question on this topic is just Trinidad. I believe you're in talks with BP to develop the Coconut natural gas field offshore Trinidad. Can you provide more details on this joint development and just your broader opportunities that offshore Trinidad?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Right. The next topic I wanted to ask you about is just cash return and maybe you could start with the company's shareholder return framework and the return of capital that you've promised to shareholders.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. Let's shift gears to talk about the portfolio. Your plan today is to run 27 rigs and 8 frac crews, which are both lower on a year-over-year basis. Maybe start with kind of some of the drilling and completion efficiencies that you're delivering in the field on a year-over-year basis? What's changed there?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. I wanted to delve a little deeper in the Delaware Basin. You and the team have introduced a new completion design, which is supporting higher initial oil recoveries from some of the deeper zones. Can you talk about some of the technical changes that you've made? And I have a couple of follow-ups.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Talk to us about the Eagle Ford. I know there's been some investor concern over the last couple of years as productivity has come down, but I know that one of the things you guys highlighted is just still getting really, really good returns there. And then maybe a follow-up is there's been maybe a shift in industry activity towards refrac opportunities in the basin. So the refracs compete for capital at EOG?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. Let's talk about Dorado. You talked about -- just given the early year gas macro, you down a little bit in terms of activity, but give us a sense of kind of the learnings, kind of the midstream strategy you have. You have a pipeline that you're constructing and it can help your netbacks over time.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Great. Jeff, I was wondering if you could provide an update on your delineation program in the Utica shale?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Got it. And can you talk about your ownership of minerals and how that kind of helps your economics in the Utica?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. Shift gears and maybe talk about marketing. EOG has had a long-term marketing agreement with Cheniere as well as some physical sales agreements. Could you maybe unpack some of the marketing agreements and have those increase over time?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. On a recent conference call, Cheniere highlighted the potential for an early startup of Corpus Christi Stage III, which you just talked about. If it does start up early, would your marketing agreements kick in early under that theoretical?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. And then one more question, and we'll turn it over to audience for Q&A. Can you just give us an update on the Beehive Prospect in Australia?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. So you just received the permits, so you have essentially approval to go forward?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Okay. Great. Let's turn it over for Q&A. Just wait for them. Unidentified Participant (Inaudible - microphone inaccessible) --

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Any more questions? Great, Jeff, thank you so much.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Appreciate it, sir.