EOG Resources to invest $4.2 billion in drilling, exploration operations in 2024
(WO) – EOG Resources announced its 2024 operational plans, indicating increased investment in exploration and drilling at its Delaware basin assets.
Total expenditures for 2024 are expected to range from $6.0 to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs, and other property, plant and equipment, and excluding property acquisitions, asset retirement costs and non-cash exchanges and transactions. The capital program also excludes certain exploration costs incurred as operating expenses.
The disciplined capital program allocates approximately $4.3 billion to drill and complete 600 net wells in EOG's domestic premium areas. Strong capital efficiency delivers 3% oil volume growth and 7% total volume growth, for ~$100 million lower year-over-year total direct investment in drilling and completion activity. The plan is anchored by steady year-over-year activity levels across most of EOG's premium plays, with a step up in activity in the Ohio Utica play.
The capital program also funds investment in environmental and infrastructure projects, including approximately $400 million in strategic infrastructure projects associated with EOG's Delaware Basin and Dorado assets. These projects are expected to provide several long-term benefits to the company, including margin improvement through higher price.
"EOG's business has never been better, and our financial position has never been stronger. Our 2024 plan demonstrates our consistent focus on improving the cost structure of our company. The depth of resource across our multi-basin portfolio of premium assets provides long-term visibility for high returns and strong free cash flow generation. Our confidence in EOG's ability to compete across sectors, create value for our shareholders, and be part of the long-term energy solution has never been higher,” said Ezra Yacob, Chairman and Chief Executive Officer of EOG.
