The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Two questions, please. I think the first one is probably for Billy. You talked about the Permian, the good well productivity. Just can
you give us a little bit more detail in terms of the test size you're doing over there and whether you're increasing it, especially if you
start to do more co-development and how many different landing zones or -- that you are targeting in your program?
And second one -- that, just curious, I mean, I think in the last, say, several months, a lot of investors have been asking why there's
the go-ahead with the expansion in Dorado. And I think last quarter in the conference call, management has said you're looking for
the long term. So just curious that what may have triggered your -- maybe there's a slightly change in your view about the pace on
that development?
Question: Charles Arthur Meade - Johnson Rice & Company, L.L.C., Research Division - Analyst
: I think just a couple of quick ones for me touching on some of the common themes that you've already spoken on for a while. The
Dorado, evaluating the slowdown, can you give some insight in your thinking? Is this about the natural gas price falling below your
$250 double premium? Or is this about the contango you see in the curve and just the value of just waiting a few months? Is it -- I
recognize those aren't exclusive, but just some insight into what really keeps you guys to want to examine that?
Question: Charles Arthur Meade - Johnson Rice & Company, L.L.C., Research Division - Analyst
: Okay. That's helpful. And then just 1 more quick one on this Wolfcamp completion design. So I got the message, I think, in your last
-- your response to the last question, that this is not going to be an across-the-board shift that you'd want to make. But presumably,
you've confirmed -- I think you're talking about 16 targets of works-in. Can you give us a sense does it work in 25% of the targets
and maybe upside to 50% or 75%? Or what's it look like to you guys right now?
Question: Joshua Ian Silverstein - UBS Investment Bank, Research Division - Analyst
: Yes. Maybe just sticking with gas first. You have an unusually wide gap on your differentials even after reporting the first quarter
results. Can you just talk about how you think that may shape over the course of the year, what you're looking for to come in towards
the high end versus the low end there?
Question: Joshua Ian Silverstein - UBS Investment Bank, Research Division - Analyst
: Got it. And then just as far as the shareholder return profile, I know you've been thinking about it from a percentage of free cash
flow. But how would you think about it from managing like a cash balance standpoint? You've been over $5 billion now for the past
few quarters, including paying down the debt maturity in the first quarter.
Is $5 billion, $6 billion the right level of cash for EOG? What level of cash would you not want to get over because it feels like there
are certain periods where you could return over 100% of cash -- or free cash flow to shareholders if you really want to.
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