EOG Resources

EOG’s President: “So our exploration program isn’t focused on adding more…Sustaining and growing the regular dividend remains our highest priority and reflects our confidence in the long-term performance of the company. “ “Ezra Yacob — President: So our exploration program isn’t focused on adding more. We are looking for better inventory. New players, like Dorado, and the potential we see in our current exploration pipeline gives us confidence we will continue to grow and improve our double premium inventory in the future as we have done in the past. While we have earmarked and committed to return a minimum of 60% of annual free cash flow, our long-standing framework and priorities for total free cash flow are unchanged. A sustainable growing regular dividend, a pristine balance sheet, additional cash returned to shareholders through special dividends and opportunistic stock buybacks and low-cost property bolt-ons. Sustaining and growing the regular dividend remains our highest priority and reflects our confidence in the long-term performance of the company. “ (EOG Resources Q1 2022 Earnings Call, 5/6/2022)

EOG’s President: “We could increase activity today into these high prices, but in the inflationary environment, that’s going to erode our capital efficiency.” “Ezra Yacob — President: There’s — as we’ve said in the past, there’s no reason to invest in growth if you’re not generating high returns and you’re not doing it with an ability to improve the underlying business year after year. And what that means is not chasing free cash flow just because the high prices if you’re investing in something that’s eroding the business long term. You can take today, for example. We could increase activity today into these high prices, but in the inflationary environment, that’s going to erode our capital efficiency. And then the second piece that we’ve talked about as far as reinvestment or growth is based on the macro environment and market fundamentals. Does the market really need the barrels? What’s supporting the global supply and demand fundamentals? Ultimately, investing in premium and double premium, as you know, has made us somewhat price agnostic basing those decisions on $40 oil and $2.50 natural gas. And so it’s really — the capital discipline comes down to what can we do and are we investing at a pace where each of our assets can get better year after year and ultimately, improve the overall returns and company profile.” (EOG Resources Q1 2022 Earnings Call, 5/6/2022)