EOG Resources, Inc. (NYSE:EOG) Q3 2018 Earnings Conference Call - Preliminary Transcript
Nov 02, 2018 • 10:00 am ET
Good day, everyone, and welcome to EOG Resources Third Quarter 2018 Earnings Results Conference Call. As a reminder, this call is being recorded.At this time, for opening remarks and introductions, I would like to turn the call over to the Chief Financial Officer of EOG Resources, Mr. Tim Driggers. Please go ahead, sir.
Timothy K. Driggers
Thank you. Good morning, and thanks for joining us.
This conference call includes forward-looking statements. The risks associated with forward-looking statements have been outlined in the earnings release, and EOG's SEC filings, and we incorporate those by reference for this call. This conference call also contains certain non-GAAP financial measures. The reconciliation schedules for these non-GAAP measures to comparable GAAP measures can be found on our website at www.eogresources.com.
Some of the reserve estimates on this conference call may include estimated potential reserves, not necessarily calculated in accordance with the SEC's reserve reporting guidelines. We incorporate by reference the cautionary note to US investors that appears at the bottom of our earnings release issued yesterday.
Participating on the call this morning are Bill Thomas, Chairman and CEO; Gary Thomas, President; Billy Helms, Chief Operating Officer; David Trice, EVP Exploration & Production; Ezra Yacob, EVP Exploration & Production; Lance Terveen, Senior VP Marketing; and David Streit, VP Investor and Public Relations.
Here's Bill Thomas.
William R. Thomas
Thanks, Tim, and good morning to everyone.
EOG is a high-return organic growth company, and we are delivering what we promised: A compelling combination of high returns, disciplined growth, and free cash flow. In the third quarter, we lowered well costs, and improved well performance. As a result, year-to-date, we are generating triple-digit well level returns. We grew our oil production 27% year-over-year, and total production 25%.
And we generated over $0.5 billion in free cash flow. This is a rare performance not often seen in our industry, or even in the broader market. Our third quarter results demonstrate the value of EOG's unique culture of innovation, supported by a rich history of a data-driven, non-bureaucratic flat organization. Innovations, real-time data gathering, rapid analytics, and redeployment of learnings to the field are continually producing improving results through the company.
For example, in the Delaware Basin, we are making significant progress in breaking the code for optimum well spacing. Likewise, on the cost side, we are making significant progress driving down drilling and completion costs. The same is true for our Woodford Oil Play, where just like in the Delaware, we're finding better drilling targets, discovering improved completion techniques, and lowering costs all at the same time.
We're excited about our progress, and the continuous improvements we are seeing this year. And more importantly, we believe there's plenty of momentum to continue to get better in 2019. EOG's unique culture of innovation and focus on exploration are fundamental to our sustainable business model. Our culture of innovation drives continuous improvements in each play we develop, maximizing the value of our leasehold by optimizing NPV, returns and finding and development costs.
Our focus on organic exploration makes