EOG Resources, Inc. (EOG) Earnings Call Transcript & Summary

Good day and welcome to the EOG Resources Inc. 2020 Annual Meeting of Stockholders. I would now like to turn the conference over to Bill Thomas, Chairman of the Board and Chief Executive Officer. Please go ahead.

Good afternoon. I'm Bill Thomas, Chairman of the Board and Chief Executive Officer of EOG Resources, and it's my pleasure to welcome you to our 2020 Annual Meeting of Stockholders. It's now 2:00 p.m. Central Time, and in accordance with the Notice of the Meeting, I now call to order the 2020 Annual Meeting of Stockholders. As Chairman of the Board, I will preside over this meeting; and Michael Donaldson, our Corporate Secretary, will act as Secretary for the meeting. Also present is Iliana Galan, who is the Inspector of Election for the meeting. We are pleased to be joined today by all of the members of our Board of Directors as well as Tim Copeland of Deloitte & Touche LLP, the company's independent auditors. I will now have Mr. Donaldson to discuss the rules of conduct for the meeting and give us the report of the secretary.

Thank you, Mr. Chairman. It is our intention to conduct this meeting in accordance with the agenda and rules of conduct and procedure that have been set for this meeting, each of which you should see on the meeting website. Please note that this meeting is being recorded, and however, no one attended is permitted to use any audio recording device. I will now give the report of the secretary. As Secretary for the annual meeting, I hereby report the following: first, that I have with me a complete list of the record holders of the company's common stock as of March 6, 2020, which is the record date for determining stockholders entitled to vote at the meeting. I hereby certify that this list of stockholders has been open for examination during the period required under the company's bylaws and Delaware law. The stockholder list will be filed with the records of the meeting. Second, on March 20, 2020, we made available the company's Notice of Annual Meeting of Stockholders, the 2020 proxy statement and formal proxy card and the 2019 annual report to stockholders of record as of the record date. This is reflected in the Affidavit of Secretary, which will be filed with the records of this meeting. Third, Ms. Iliana Galan has been appointed the Inspector of Election for this meeting and has signed the oath of inspector of election, which will be filed with the records of this meeting. As Inspector of Election, Ms. Galan has reported that the holders representing at least a majority of the shares of common stock entitled to vote are present or represented by proxy at this meeting, which constitutes a quorum.

Thank you, Michael. I, therefore, declare that a quorum is present at this meeting. Since a legal Notice of the Meeting has been given and a quorum is present, the meeting is lawfully convened, and we are ready to transact business. Now we're ready to turn to business of the meeting. Item #1 is the election of 8 directors to serve for the upcoming year. Michael, please read the nominees for director.

Mr. Chairman, it will be my pleasure. The following individuals have been nominated for election as directors of the company in accordance with the provisions of the company's bylaws to serve into the next annual meeting of stockholders of the company and until their successors are duly elected and qualified: Janet F. Clark, Charles R. Crisp, Robert P. Daniels, James C. Day, C. Christopher Gaut, Julie R. Robertson (sic) [ Julie J. Robertson ], Donald F. Textor and William R. Thomas.

Because the company has received no further nominations, I declare the nomination closed. Michael, please read the other proposals described in the proxy statement.

Item 2 is a proposal to ratify the appointment of Deloitte & Touche LLP, independent registered public accounting firm, as the company's independent auditors for the year ending December 31, 2020, as recommended and approved by the Audit Committee of the Board of Directors. Item 3 is a nonbinding advisory vote of the compensation of the company's named executive officers.

We will now proceed with voting on these items. It's now 2:05, and I declare the polls open.

As indicated in the proxy statement, you may vote today only if you are a stockholder of record as of the record date for the meeting. If any stockholder of record has not already voted by means of a proxy card or over the phone or the Internet and intends to vote his or her shares now, you may do so by clicking the Vote Here button on your screen now. You will need your 16-digit control number provided in the proxy materials you -- that you previously received. If you have previously voted and do not wish to change your vote, you do not need to submit a vote online at this time. [Voting]

While stockholders submit their votes, I would like to make a few comments about EOG Resources. The entire oil and gas industry is being tested right now. The lingering effects of the OPEC Plus price war compounded by shutdowns implemented across the globe to minimize the spread of COVID-19 has had an unprecedented impact on oil prices. I want to assure you that EOG Resources is resilient. We will do more than simply survive this shock to both supply and demand. Like every other down cycle, we will emerge a stronger global competitor with a more efficient, lower cost structure, uniquely positioned to capture the upside of the oil market recovery. Our approach now and throughout the crisis duration remains fundamentally the same: we allocate and spend capital only if it earns a good return. We live within our means, endeavoring to cover both capital and our dividend with cash flow. We maintain an impeccable balance sheet. We are committed to the dividend. Finally, and most importantly, we protect the EOG culture. The #1 reason we entered this down cycle in a position of strength is our culture. We adapt quickly to innovate and apply new ideas and technology to all challenges. Whether it's a new play type or a way to sustainably lower costs, we never stop learning, and we never stop getting better no matter what environment we're operating under. Our culture becomes even more valuable during a downturn as it supercharges our motivation to improve. Our culture is more than 2 decades in the making and is the foundation of our sustainable competitive advantage.

Thank you, Mr. Chairman. Now that everyone has had an opportunity to vote, the polls are now officially closed, and I'd like to announce the results of the voting. Item 1. The 8 nominees for director have been elected as directors of the company to serve until the company's next annual meeting of stockholders and until their successors are duly elected and qualified. Item 2. The proposal to ratify the appointment of Deloitte & Touche LLP as the company's independent auditors for the year ending December 31, 2020, has been approved by the requisite number of shares. Item 3. As to the nonbinding advisory vote on the compensation of the company's named executive officers, such proposal has been approved by the requisite number of shares.

Thank you, Michael. The final results of voting, including any votes submitted during this meeting, will be set forth in the final report of the inspector of election. I order that the final report be filed with the records of the meeting. There being no further business to come before the meeting, I declare the voting portion of the meeting concluded. I'll now ask Mr. Donaldson to explain the procedures for stockholder questions submitted on the meeting website.

Thank you, Mr. Chairman. As noted in the rules of conduct and procedure, only stockholders of record as of the record date are allowed to submit questions. You may submit a question in the field provided on the meeting website by entering the 16-digit control number you received with your proxy materials. We intend to respond to appropriate and relevant questions received following the meeting. Mr. Chairman, we have now completed the business of the meeting.

Thank you. I would like to thank everyone for participating in today's meeting and for your investment in EOG Resources. The meeting is now adjourned.

Thank you for attending today's presentation. You may now disconnect.