EOG Resources held its Q3 2024 earnings call on November 8, 2024, discussing its ongoing financial performance and future outlook. Since late 2020, EOG has generated over $22 billion in free cash flow and more than $25 billion in adjusted net income. The company has paid and committed over $13 billion in dividends to shareholders, with an additional $3.2 billion allocated to share repurchases, all while reducing its debt by 35%. During Q3 2024, EOG exceeded expectations with $1.6 billion in adjusted net income and $1.5 billion in free cash flow. This success allowed the company to return $1.3 billion to shareholders through dividends.
Moving forward, EOG has increased its regular dividend by 7% and expanded its share repurchase authorization by $5 billion, underscoring its commitment to shareholder returns. EOG's operational successes are backed by innovation and a multi-basin approach, which helps improve efficiency and transfer technology across different operations. They have managed to reduce operational costs and improve well performance through advanced drilling techniques and marketing strategies. Their approach includes focusing on sustainable value creation and empowering employees to prioritize daily business improvements. Looking ahead to 2025, EOG remains committed to capital discipline.
Balancing short and long-term cash flow generation and shareholder returns. While the macro environment exhibits moderate growth in supply and demand for oil and gas, EOG anticipates slower U.S. liquids growth due to fewer active drilling rigs and drilled but uncompleted wells. However, they are optimistic about rising demand for natural gas due to new LNG projects and increased power generation needs. EOG's recent sustainability report highlighted their environmental achievements, such as maintaining a GHG intensity rate below their 2025 target and meeting methane emissions goals for the third subsequent year.
Their in-house methane monitoring solution is now a standard procedure, and their carbon capture and storage pilot project is operational. Financially, EOG reported $1.6 billion in adjusted net income for Q3 and free cash flow of $1.5 billion, with capital expenditures aligning with forecasts at $1.5 billion. They still project full-year expenditures to be about $6.2 billion. EOG's marketing strategy continues to yield strong results, achieving high U.S. price realizations. They demonstrated financial flexibility by paying a significant dividend and buyback during the quarter. Operationally, EOG's employees facilitate production efficiencies and cost reduction.
Oil volumes surpassed forecasts due to enhanced well productivity and completion designs. Positive outcomes from wells prompted them to raise their full-year guidance slightly for oil, natural gas liquids, and natural gas production. As for capital expenditure, EOG's third quarter aligned with projections, showing minor differences primarily due to operational timing. Suggested cost deflation of 3-5% is predicted for well costs year-over-year. The company's unique portfolio enables innovation across multiple technologies, such as extended laterals and in-house motors, leading to notable gains in operational efficiency. Upcoming developments in the Utica shale play, where EOG controls 225,000 net acres.
Showcase sustained operational efficiencies, marked by increased drilling rates per lateral and improved completion techniques. EOG plans to ramp up activity by 50% in 2025 within the Utica play, maintaining robust advancements and maximizing potential from their multi-basin portfolio without significantly altering activity levels.
