EOG Resources, Inc.1111 Bagby Street , Sky Lobby 2 , Houston, Texas, United States

For the second year in a row, we increased the dividend rate 31%. We also generated $1.9 billion of free cash flow* that funded $588 million in dividends and the retirement of $900 million of debt.  EOG announced two new premium plays in the Delaware Basin, the Wolfcamp M and Third Bone Spring, adding 1,500 premium net drilling locations and estimated net resource potential of 1.6 BnBoe.  By year-end, EOG’s premium inventory had grown to 10,500 locations, which is more than three times the total since introducing the premium well standard in 2016.

Return on capital employed was 15%* and we grew oil production 19%.  We earned record net income, generated record free cash flow* and increased the dividend rate 31 percent.  EOG announced two new premium plays in the Powder River Basin, the Mowry and the Niobrara, adding more than 1,500 premium net drilling locations and estimated net resource potential of 1.9 BnBoe.  We published our inaugural Sustainability Report demonstrating our commitment to transparency on the ESG metrics that are most relevant to our business and most important to our shareholders and other stakeholders.

We proved up 150,000 net acres across two new plays, the Delaware Basin First Bone Spring and Eastern Anadarko Basin Woodford Oil Window.  We replaced almost four times the number of wells completed, adding 2,000 net locations to our growing portfolio of premium oil assets.  By year end, EOG’s premium inventory totaled 8,000 net locations and 7.3 BnBoe of estimated net resource potential in geologic sweet spots across six areas, the Delaware Basin, Eagle Ford, Bakken, Powder River Basin, DJ Basin and Eastern Anadarko Basin.

We identified 6,000 premium net drilling locations. That’s more than 10 years of inventory at our 2016 drilling pace.  EOG merges with a historic New Mexico oil and gas company, Yates Petroleum, which adds 260,000 net acres in the core areas of the Delaware Basin and Powder River Basin.  We commercialized the first enhanced oil recovery process, or EOR, in shale.

We increased our estimated net resource potential by 1.6 BnBoe across the Delaware Basin and Bakken through technical innovations in precision targeting and completion design, organic exploration and tactical, bolt-on acquisitions.  We cemented our position as the leading producer in the world-class Eagle Ford play, producing a cumulative 285 million barrels of oil.  Cost control and improved efficiencies were a hallmark of 2015 company operations with cash operating costs down 17%.

We delivered 31% crude oil production growth and 17% total production growth.  We raised the estimated net resource potential of our premier South Texas Eagle Ford crude oil asset from 2.2 BnBoe to 3.2 BnBoe.  We unveiled four crude oil and combo plays in the Rocky Mountain region with total estimated net resource potential of 400 million barrels of oil.  The board of directors approved a two-for-one stock split in the form of a stock dividend.

Commitment to Sustainability

We believe that responsible stewardship of all of EOG’s resources – our assets, the environment, our people and the communities in which we live and work – is an essential part of our long-term success. Our goal is to be a leader in environmental, social and governance initiatives and we strive to continually improve our performance every year. We continue to focus on responsible stewardship by asking ourselves, how we can reduce emissions, be more energy efficient, attract diverse candidates to work for us, contribute to the communities in which we live and work and keep safety top of mind. We have made great progress, and will continue to do so – for the benefit of all of our stakeholders.