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**BETA FINCH PODCAST SCRIPT**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and I'm here with my co-host Jordan to dive into EOG Resources' first quarter 2026 earnings call. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks, Alex. And wow, what a quarter for EOG! They're definitely benefiting from some major geopolitical tailwinds, but there's a lot more substance here than just riding the oil price wave.

**ALEX:** Absolutely. Let's start with the numbers because they're pretty impressive. EOG generated $1.8 billion in adjusted net income and $1.5 billion in free cash flow for the quarter. They returned nearly $950 million to shareholders through dividends and buybacks. Jordan, what jumped out at you?

**JORDAN:** The cash flow generation is remarkable, especially when you consider they're projecting a record $8.5 billion in free cash flow for the full year 2026. But here's what I found fascinating - they're maintaining their $6.5 billion capital budget while increasing oil production guidance by 2,000 barrels per day and NGL production by 6,000 barrels per day. That's capital discipline in action.

**ALEX:** That's a great point about capital discipline. They're essentially reallocating capital from natural gas assets to oil-weighted assets within the same budget. CEO Ezra Yacob was pretty clear about this being a response to current market dynamics - oil prices surging due to the Iran conflict while natural gas prices remain soft.

**JORDAN:** Right, and let's talk about that geopolitical situation because it's driving a lot of their strategy. The conflict has removed an estimated 900 million barrels from global markets through June 2026, and EOG's management seems to believe this sets up a higher oil price floor going forward, even after the conflict resolves.

**ALEX:** The international expansion story is interesting too. They've got operations starting up in both the UAE and Bahrain. During the Q&A, management mentioned they're seeing strong partnerships with ADNOC and BAPCO, and they expect initial results from these exploration programs in the second half of 2026.

**JORDAN:** And their marketing strategy is really paying dividends - literally. They have 250,000 barrels per day of export capacity out of Corpus Christi, which gives them flexibility to price crude domestically or link to Brent pricing. Plus, their Cheniere LNG contract is expanding to 420,000 BTUs per day, with pricing linked to either JKM or Henry Hub at their election.

**ALEX:** That pricing flexibility is huge in volatile markets. CFO Ann Janssen mentioned they've been able to sell multiple cargoes at attractive pricing thanks to that export capacity. It's like having optionality built into their business model.

**JORDAN:** Speaking of Ann Janssen, let's talk shareholder returns because this is where things get really interesting. They're committed to returning at least 70% of free cash flow this year, which would be a record. And they've been aggressive on buybacks - 3.2 million shares in Q1, plus another 2.3 million shares just in April.

**ALEX:** The buyback strategy seems pretty opportunistic. During the Q&A, there was this great exchange about being tactical versus having a ratable program throughout the year. Management seems confident they're finding value in their own stock, even with oil prices elevated.

**JORDAN:** What I found telling was CEO Yacob's comment about potentially building some cash on the balance sheet during this upcycle to prepare for countercyclical investments when prices eventually pull back. That's exactly what they did with acquisitions like Encino

This episode includes AI-generated content.

**Beta Finch Podcast Script: EOG Resources Q4 2025 Earnings**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we dive into the numbers that move markets. I'm Alex, and joining me as always is Jordan. Today we're unpacking EOG Resources' fourth quarter 2025 results - and folks, this was a masterclass in disciplined capital allocation and cash generation.

Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks Alex. EOG really delivered what their shareholders have come to expect - consistent execution and massive cash returns. They generated $4.7 billion in free cash flow for 2025 and returned 100% of it to shareholders through dividends and buybacks. That's $2.2 billion in regular dividends plus $2.5 billion in share repurchases.

**ALEX:** Those are impressive numbers. And what caught my eye is they've now generated annual free cash flow every single year since 2016 and haven't cut their dividend in 28 years. Talk about reliability in a volatile sector. What were the key operational drivers behind these results?

**JORDAN:** The story really centers around their multi-basin approach paying off. They exceeded their original oil and total volume targets while keeping capital expenditures in line. But the real magic happened in cost reduction - they drove well costs down 7% in 2025 through what they call "sustainable efficiency gains." That's huge because these savings compound over time as they develop each asset.

**ALEX:** Let's talk about that Encino acquisition they completed. This was a big strategic move for them in the Utica shale.

**JORDAN:** Absolutely transformational, Alex. They hit their $150 million synergy target ahead of their original one-year timeline, and they're not done yet. The numbers Jeff Leitzell shared were pretty remarkable - they increased drilling speed by over 35%, reduced casing costs by 30%, and brought well costs down below $600 per foot. They're even planning to have in-basin sand sourcing in Ohio by year-end, which should drive costs even lower.

**ALEX:** That integration ahead of schedule really shows their operational expertise. Now, one area that seemed to generate some investor questions was their Delaware Basin strategy. Can you break down what's happening there?

**JORDAN:** This is interesting and I think it highlights EOG's technical sophistication. They've actually unlocked nine additional landing zones in the Delaware Basin due to their dramatic cost reductions over the past few years. So while some individual wells might show lower productivity per foot, the economics are still hitting their return hurdles because the wells cost so much less to drill.

**ALEX:** So it's not about well degradation - it's about accessing previously uneconomic zones?

**JORDAN:** Exactly. CEO Ezra Yacob was pretty clear about this - they're co-developing multiple targets now that previously didn't meet their stringent return requirements. Some have lower productivity, some have different gas-oil ratios, but each delivers the high returns shareholders expect. They're optimizing recovery per acre and maximizing NPV, not just chasing the highest initial production rates.

**ALEX:** That makes sense from a capital allocation standpoint. Speaking of their portfolio, they're also elevating Dorado to what they call a "foundational asset" alongside the Delaware Basin, Utica, and Eagle Ford. What's the story there?

**JORDAN:** Dorado is their South Texas gas play, and the progress has been remarkable. They've driven well costs down to $750 per foot with a breakeven of just $1.40 per thousand cubic feet. They exited 2025 at 750 million cubic feet per day and are targeting 1 billion cubic feet per day by the end of 2026.

This episode includes AI-generated content.

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