EOG's strategy remains focused on maximizing return on investment by controlling costs and maximizing reserve recoveries. The company evaluates drilling locations based on estimated rate of return.

EOG implements its strategy primarily by emphasizing the drilling of internally generated prospects to find and develop low-cost reserves.

EOG's operations are located in most of the productive basins in the United States with a focus on crude oil and, to a lesser extent, natural gas plays. The company continues to drill numerous wells in large acreage plays.

EOG focuses on being among the lowest-cost producers, emphasizing efficient and safe operations and robust environmental stewardship practices. The company continues to focus on increasing drilling, completion and operating efficiencies.

EOG is focused on innovation and cost-effective utilization of advanced technology, including three-dimensional seismic and microseismic data, reservoir simulation models and improved drilling equipment and completion technologies.

EOG's safety performance is considered in evaluating employee performance and compensation, demonstrating a commitment to safe operations.

EOG's cash flows, financial condition and results of operations depend to a great extent on prevailing commodity prices, which are subject to wide fluctuations.

EOG has experienced inflationary pressures on its operating costs and capital expenditures, including the costs of fuel, steel, labor and drilling and completion services, which could impact cash flows and results of operations.

EOG may be unable to obtain needed financing on satisfactory terms, and weakness and/or volatility in domestic and global financial markets or economic conditions may increase the interest rates that lenders require.

EOG competes with major integrated oil and gas companies, government-affiliated oil and gas companies and other independent oil and gas companies for the acquisition of licenses and leases, properties and reserves.

Certain of EOG's competitors have financial and other resources substantially greater than those EOG possesses and have established strategic long-term positions or strong governmental relationships.

EOG faces competition from competing energy sources, such as renewable energy sources.

EOG operates under a consistent business and operational strategy that focuses predominantly on maximizing the rate of return on investment of capital by controlling operating costs and capital expenditures and maximizing reserve recoveries.

EOG has undertaken initiatives and actions to mitigate inflationary pressures, such as agreements with service providers to secure the costs and availability of services.

EOG's operations are subject to risks, including well blowouts, loss of well control, crude oil spills, natural gas leaks, pipe failures and casing collapses, and adverse weather events, which could lead to operational disruptions.

EOG is focused on innovation and cost-effective utilization of advanced technology associated with three-dimensional seismic and microseismic data, the development of reservoir simulation models and the use of improved drilling equipment and completion technologies.

These advanced technologies are used throughout EOG to reduce the risks and costs associated with all aspects of oil and gas exploration, development and exploitation.

EOG places an emphasis on applying its horizontal drilling and completion expertise to unconventional crude oil and natural gas plays.

EOG intends to finance its capital expenditures primarily through its cash flows from operations and cash on hand.

EOG is committed to returning a minimum of 70% of annual net cash provided by operating activities to stockholders through dividends and share repurchases.

The Board has authorized a share repurchase program and EOG has repurchased shares from time to time under this authorization.

EOG has developed, and will continue to develop, targets and ambitions related to its environmental, social and governance (ESG) initiatives, including its emissions reduction targets and its ambition to reach net zero Scope 1 and Scope 2 GHG emissions by 2040.

EOG has developed an environmental data collection and analysis system that is utilized in calculating GHG emissions from the facilities it operates.

EOG is subject to federal, state and local laws and regulations regarding climate change and GHG emissions, which could have a material and adverse effect on its operations, financial condition, results of operations and capital expenditures.

EOG's operations are subject to uncertainties associated with the world political and economic environment, including actions of crude oil exporting nations, global impacts of wars or military conflicts, and the global supply of and demand for crude oil, NGLs and natural gas.

EOG's operations are subject to various types of regulation, including environmental regulations, imposed by the respective governments of the countries in which EOG's operations are conducted, and may affect EOG's operations and costs of compliance within those countries.

EOG's jurisdictional sales of natural gas may be subject in the future to greater federal oversight, including the possibility that the FERC might prospectively impose more restrictive conditions on such sales.