EOG Resources Inc

“EOG delivered an outstanding third quarter, achieving record oil, NGL, and natural gas production while maintaining cost discipline as total per-unit cash operating costs and DD&A came in below guidance midpoints. Combined with strong price realizations, these results translated into robust financial performance.

Record volumes across oil, NGLs and gas usually come with cost creep, but Yacob says per-unit cash operating costs and DD&A both landed under guidance midpoints in the third quarter. For a $76.2 billion producer, that combination is the margin story shale investors have been waiting on.

“EOG's business and the outlook for the company have never been stronger. We are pleased to announce an 8% increase in our regular dividend. The increase reflects both the confidence in our business and our ability to support the higher dividend through commodity price cycles.

Income investors get a raise from a $76.2 billion producer that says the payout holds up even when crude rolls over, a claim most shale operators have not been willing to make. Yacob tied the hike to the third quarter results, so the cash flow backing it is on the table now.

“First, we signed a new long-term gas sales agreement expanding our access to premium markets. Linked to JKM pricing, this agreement lifts our premium-priced exposure across LNG feedgas contracts to more than 1 billion cubic feet per day by 2030. Second, we approved the expansion of our Janus gas processing plant in the Delaware Basin.

Tying more than a billion cubic feet a day of gas to Asian JKM pricing by 2030 pulls EOG away from the Waha and Henry Hub discounts that have punished Permian gas producers. The Janus processing expansion in the Delaware Basin is the plumbing that makes those volumes deliverable.