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: Leo Paul Mariani - KeyBanc Capital Markets Inc., Research Division - Analyst
: Just wanted to kind of ask a couple of things just surrounding Dorado. If memory serves me correctly, this seems to be kind of EOG's
first kind of major foray into a gas play, probably harkening back to sort of the 2003, 2004 time frame, where I think you guys made
a concerted effort to kind of move more to oil plays based on the macro, which was certainly the right decision over that period of
time. Just wanted to get a sense, are you guys sensing that there may be some shifting macro dynamics on the gas side, which can
make the Dorado play something that becomes a lot more meaningful in the years to come? You guys did outline 15 wells for 2021,
which in the grand scheme of things, given EOG's size, doesn't seem like a big number. I just wanted to kind of get your sense on
how that can play out over the next few years.
Question: Leo Paul Mariani - KeyBanc Capital Markets Inc., Research Division - Analyst
: Okay. That's great color. And just focusing on third quarter for a second. It certainly looks like EOG beat production guidance pretty
handily, but it did also look like that the shut-ins that you had were actually slightly higher than you projected for the quarter. So
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Just curious that when you look at the 3-year outlook for your capital allocation and the growth target or that the maximum growth
ceiling, should we assume that, that's also applied for the longer term? And if not, is there any reason that the same will not be
applied?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Well, I'm sure that the company will be operationally much stronger. I'm more referring to that if the ceiling of 10% growth is appliable
over the longer term or that is only applied for the next 2 or 3 years?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: And then my second question is that on -- whether it's the Dorado or that your overall CapEx spending, certainly, that the price signal
is important. But with the future strip moving quite substantially from one day to another, so that's probably not a very good indicator
or at least, let's say, a forecast vehicle. So what are the factors that you guys are using maybe that's more determinating how you
decide on your program for a particular year if the price signal from the future market are unreliable there as we can see?
Question: Charles Arthur Meade - Johnson Rice & Company, L.L.C., Research Division - Analyst
: I just wanted to ask a question, kind of pull on the thread about this Dorado play you have. The Austin Chalk, the D&C cost you put
for the Austin Chalk is a little higher, I believe, for -- than the Eagle Ford. And I'm just kind of wondering what's the driver of that? Is
the Austin Chalk in a -- is it perspective in a deeper session? Or is the lateral a little slower to drill? Or what -- is that a relevant piece
of the puzzle? And what does it point to?
Question: Charles Arthur Meade - Johnson Rice & Company, L.L.C., Research Division - Analyst
: Got it. And then as a follow-up, I wanted to touch on the Delaware Basin. It's still a big driver for you guys, obviously. Are you guys
seeing anything different? Or do you expect to see anything different either in the operating environment out there or the opportunity
set to continue to add out there?
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