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EOG Resources, Inc. Reports Second Quarter 2000 Earnings of $.64 Per Share; Exceeds 7 Percent North American Production Growth Target
PRNewswire
HOUSTON

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FOR IMMEDIATE RELEASE: Monday, July 24, 2000

EOG Resources, Inc. (EOG) today reported second quarter 2000 net income available to common of $74.7 million, or $.64 per share, compared to as adjusted net income available to common of $8.1 million, or $.07 per share, for the comparable period a year ago.

In the second quarter, EOG exceeded its annual 7 percent North America production growth target and remains on track to meet the 2000 goal. Production in North America increased 8.4 percent during the second quarter and 8.3 percent year to date versus a year ago.

"EOG's operating earnings for the second quarter are the strongest in the company's history," said Mark G. Papa, Chairman and Chief Executive Officer. "Successful drilling and operating results throughout North America combined with record natural gas prices and EOG's unhedged natural gas position were key drivers in setting this new record."

Discretionary cash flow available to common increased 119 percent to $223 million in the second quarter of 2000 from $102 million, as adjusted, in the second quarter of 1999. At June 30, 2000, debt to total capitalization was 45 percent compared to 47 percent at December 31, 1999.

EOG Resources, Inc. (formerly Enron Oil & Gas Company) is one of the largest independent (non-integrated) oil and gas companies in the United States and is the operator of substantial proved reserves in the U.S., Canada and offshore Trinidad. EOG is listed on the New York Stock Exchange and is traded under the ticker symbol, "EOG".

This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although EOG believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include, but are not limited to, the timing and extent of changes in reserve quantities and commodity prices for crude oil, natural gas and related products and interest rates, the extent of EOG's success in discovering, developing, producing and marketing reserves and in acquiring oil and gas properties, uncertainties and changes associated with international projects and operations including reserve estimates, markets, contract terms, construction, financing availability, operating costs, and political developments around the world, and conditions of the capital and equity markets during the periods covered by the forward looking statements.

                           EOG RESOURCES, INC.
                             FINANCIAL REPORT
                (Unaudited; in millions except per share)

                                       Quarter             Six Months
                                    Ended June 30         Ended June 30
                                   2000       1999       2000      1999
  Net Operating Revenues         $  316.1   $  187.2   $  568.6  $  346.1
  Net Income Available to
   Common                        $   74.7   $   20.6   $  113.5  $   25.7
  Net Income Per Share Available
   to Common
   Basic                         $   0.64   $   0.13   $   0.97  $   0.17
   Diluted                       $   0.63   $   0.13   $   0.96  $   0.17
  Average Number of Shares
   Outstanding
   Basic                            116.7      153.8      117.2     153.8
   Diluted                          119.2      155.3      118.8     154.9


                           SUMMARY INCOME STATEMENT
                          (Unaudited; in thousands)

                                        Quarter             Six Months
                                     Ended June 30         Ended June 30
                                    2000      1999       2000       1999

  Net Operating Revenues
   Natural Gas                   $238,260   $155,759   $417,543  $285,869
   Crude Oil, Condensate and
    Natural Gas Liquids            76,898     36,963    149,428    64,516
   Gains(Losses) on Sales of
    Reserves and Related Assets
    and Other                         984     (5,527)     1,613    (4,236)
    Total                         316,142    187,195    568,584   346,149
  Operating Expenses
   Lease and Well                  25,638     23,538     51,923    47,607
   Exploration                     13,204     10,302     26,149    27,091
   Dry Hole                         3,290      2,130      9,051     2,475
   Impairment of Unproved Oil and
    Gas Properties                  7,925      7,984     15,882    15,987
   Depreciation, Depletion and
    Amortization                   90,149     88,781    174,731   170,803
   General and Administrative      16,027     26,384     32,314    50,019
   Taxes Other Than Income         20,674     12,381     39,089    26,076
    Total                         176,907    171,500    349,139   340,058
  Operating Income                139,235     15,695    219,445     6,091

  Other Income, Net                   763     31,352        780    58,290

  Income Before Interest Expense
   and Income Taxes               139,998     47,047    220,225    64,381

  Interest Expense, Net            15,581     14,774     30,149    29,041

  Income Before Income Taxes      124,417     32,273    190,076    35,340

  Income Tax Provision             46,900     11,635     71,069     9,636

  Net Income                       77,517     20,638    119,007    25,704

  Preferred Stock Dividends        (2,860)       ---     (5,514)      ---

  Net Income Available to
   Common                        $ 74,657   $ 20,638   $113,493  $ 25,704


                             EOG RESOURCES, INC.
                             OPERATING HIGHLIGHTS
                                 (Unaudited)

                                  Quarter                   Six Months
                               Ended June 30               Ended June 30
                            2000          1999          2000         1999
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcf/d)
   United States             633           642          644           659
   Canada                    131           112          132           108
    North America            764           754          776           767
   Trinidad                  116           130          122           141
   India                     ---            75          ---            74
    Total                    880           959          898           982

  Average Natural Gas
   Prices ($/Mcf)
   United States         $  3.39       $  1.99      $  2.92       $  1.80
   Canada                   2.79          1.63         2.43          1.51
    North America
     Composite              3.29          1.93         2.84          1.76
   Trinidad                 1.17          1.07         1.17          1.07
   India                     ---          1.95          ---          1.95
    Total Composite         3.01          1.82         2.61          1.67

  Crude Oil/Condensate
   Volumes (MBD)
   United States            22.8          13.1         21.7          13.1
   Canada                    2.3           2.7          2.3           2.7
    North America           25.1          15.8         24.0          15.8
   Trinidad                  2.5           2.3          2.8           2.6
   India                     ---           6.4          ---           6.7
    Total                   27.6          24.5         26.8          25.1

  Average Crude Oil/Condensate
   Prices ($/Bbl)
   United States         $ 28.29       $ 16.48      $ 28.16       $ 13.91
   Canada                  25.66         14.26        26.24         13.03
    North America
     Composite             28.05         16.10        27.98         13.76
   Trinidad                28.54         14.46        28.17         11.83
   India                     ---         14.03          ---         11.80
    Total Composite        28.09         15.41        28.00         13.04

  Natural Gas Liquids
   Volumes (MBD)
   United States             4.3           2.8          4.3           2.7
   Canada                    0.8           1.0          0.8           0.7
    Total                    5.1           3.8          5.1           3.4

  Average Natural Gas
   Liquids Prices ($/Bbl)
   United States         $ 17.96       $  8.57      $ 18.90       $  8.15
   Canada                  15.24          6.15        14.44          5.83
    Total Composite        17.56          7.95        18.23          7.68

  Natural Gas Equivalent
   Volumes (MMcfe/d)
   United States             795           737          801           754
   Canada                    150           135          150           129
    North America            945           872          951           883
   Trinidad                  131           144          138           156
   India                     ---           113          ---           114
    Total                  1,076         1,129        1,089         1,153

  Total Bcfe Deliveries     97.9         102.7        198.1         208.6


                             EOG RESOURCES, INC.
                      SUPPLEMENTAL FINANCIAL INFORMATION
                 DISCRETIONARY CASH FLOW AVAILABLE TO COMMON
                          (Unaudited; in thousands)

                                 Quarter                   Six Months
                              Ended June 30               Ended June 30
                            2000          1999         2000          1999
  Net Income Available
   to Common            $ 74,657     $  20,638    $ 113,493     $  25,704
  Items Not Requiring Cash
   Depreciation, Depletion,
    and Amortization      90,149        88,781      174,731       170,803
   Impairment of Unproved
   Oil and Gas Properties  7,925         7,984       15,882        15,987
   Deferred Income Taxes  23,669         8,416       40,714         4,317
   Other, Net              1,840           674        2,666           410
  Exploration Expenses    13,204        10,302       26,149        27,091
  Dry Hole Expense         3,290         2,130        9,051         2,475
  Losses on Sales of
   Reserves and Related
   Assets, Other              79         6,722        1,650         6,723
  Gains on Sales of Other
   Assets                    ---       (31,656)         ---       (59,647)
  Other, Net               8,147        (4,010)       6,257       (13,084)
   Total Discretionary
    Cash Flow Available
    to Common          $ 222,960     $ 109,981    $ 390,593     $ 180,779


                           EOG Resources, Inc.
                 2000 Financial Report (1999 as Adjusted)
                (Unaudited; in millions except per share)

                                 Quarter                  Six Months
                              Ended June 30              Ended June 30
                                         1999                       1999
                           2000       As Adjusted      2000     As Adjusted
  Net Operating Revenues  $316.1        $172.2      $ 568.6        $312.3
  Net Income (Loss)
   Available to Common     $74.7          $8.1      $ 113.5         $(4.8)
  Net Income (Loss) Per
   Share Available
   to Common
    Basic                  $0.64        $ 0.07        $0.97       $ (0.04)
    Diluted                $0.63        $ 0.07        $0.96       $ (0.04)
  Average Number of
   Shares Outstanding
    Basic                  116.7         118.6        117.2         118.5
    Diluted                119.2         120.0        118.8         119.7


               Summary Income Statement (1999 as Adjusted)
                        (Unaudited; in thousands)

                                Quarter                   Six Months
                             Ended June 30              Ended June 30
                                         1999                       1999
                          2000       As Adjusted      2000      As Adjusted
  Net Operating
   Revenues
    Natural Gas        $ 238,260      $142,419    $ 417,543      $259,949
    Crude Oil,
     Condensate and
     Natural Gas
     Liquids              76,898        28,869      149,428        50,167
    Gains on Sales of
     Reserves and
     Related Assets
     and Other               984           874        1,613         2,165
      Total              316,142       172,162      568,584       312,281
  Operating Expenses
   Lease and Well         25,638        20,674       51,923        40,462
   Exploration            13,204         9,455       26,149        25,442
   Dry Hole                3,290         2,130        9,051         2,475
   Impairment of
    Unproved Oil and
    Gas Properties         7,925         7,984       15,882        15,987
   Depreciation,
    Depletion and
    Amortization          90,149        78,222      174,731       157,498
   General and
    Administrative        16,027        14,446       32,314        27,590
   Taxes Other Than
    Income                20,674        10,301       39,089        21,772
     Total               176,907       143,212      349,139       291,226
  Operating Income       139,235        28,950      219,445        21,055
  Other Income
   (Expense), Net            763           (78)         780        (3,431)
  Income Before
   Interest Expense
   and Income Taxes      139,998        28,872      220,225        17,624
  Interest Expense, Net   15,581        14,457       30,149        27,630
  Income (Loss) Before
   Income Taxes          124,417        14,415      190,076       (10,006)
  Income Tax
   Provision (Benefit)    46,900         6,277       71,069        (5,182)
  Net Income (Loss)       77,517         8,138      119,007        (4,824)
  Preferred Stock
   Dividends              (2,860)          ---        (5,514)         ---
  Net Income (Loss)
   Available to Common   $74,657        $8,138    $ 113,493       $(4,824)


                           EOG Resources, Inc.
               2000 Operating Highlights (1999 as Adjusted)
                               (Unaudited)

                                 Quarter                    Six Months
                               Ended June 30               Ended June 30
                                          1999                      1999
                            2000       As Adjusted      2000    As Adjusted
  Wellhead Volumes and
   Prices
    Natural Gas Volumes
     (MMcf/d)
      United States          633           642          644           659
      Canada                 131           112          132           108
       North America         764           754          776           767
      Trinidad               116           130          122           141
       Total                 880           884          898           908
    Average Natural Gas
     Prices ($/Mcf)
      United States        $3.39         $1.99        $2.92         $1.80
      Canada                2.79          1.63         2.43          1.51
      North America
       Composite            3.29          1.93         2.84          1.76
      Trinidad              1.17          1.07         1.17          1.07
       Total Composite      3.01          1.81         2.61          1.65
    Crude Oil/Condensate
     Volumes (MBD)
      United States         22.8          13.1         21.7          13.1
      Canada                 2.3           2.7          2.3           2.7
       North America        25.1          15.8         24.0          15.8
      Trinidad               2.5           2.3          2.8           2.6
       Total                27.6          18.1         26.8          18.4
    Average Crude
     Oil/Condensate
     Prices ($/Bbl)
      United States      $ 28.29        $16.48       $28.16        $13.91
      Canada               25.66         14.26        26.24         13.03
       North America
        Composite          28.05         16.10        27.98         13.76
      Trinidad             28.54         14.46        28.17         11.83
       Total Composite     28.09         15.89        28.00         13.49
    Natural Gas Liquids
     Volumes (MBD)
      United States          4.3           2.8          4.3           2.7
      Canada                 0.8           1.0          0.8           0.7
       Total                 5.1           3.8          5.1           3.4
    Average Natural Gas
     Liquids Prices
     ($/Bbl)
      United States      $ 17.96         $8.57       $18.90         $8.15
      Canada               15.24          6.15        14.44          5.83
       Total Composite     17.56          7.95        18.23          7.68
    Natural Gas
     Equivalent Volumes
     (MMcfe/d)
      United States          795           737          801           754
      Canada                 150           135          150           129
       North America         945           872          951           883
      Trinidad               131           144          138           156
       Total               1,076         1,016        1,089         1,039
    Total Bcfe
     Deliveries             97.9          92.4        198.1         188.1


                           EOG Resources, Inc.
        2000 Supplemental Financial Information (1999 as Adjusted)
               Discretionary Cash Flow Available to Common
                        (Unaudited; in thousands)

                                Quarter                   Six Months
                             Ended June 30              Ended June 30
                                         1999                       1999
                           2000      As Adjusted      2000      As Adjusted
  Net Income (Loss)
   Available to Common   $74,657        $8,138     $113,493       $(4,824)
  Items Not Requiring
   (Providing) Cash
    Depreciation,
     Depletion, and
     Amortization         90,149        78,222      174,731       157,498
    Impairment of
     Unproved Oil and
     Gas Properties        7,925         7,984       15,882        15,987
    Deferred Income
     Taxes                23,669        (1,316)      40,714       (14,876)
    Other, Net             1,840           911        2,666           884
  Exploration Expenses    13,204         9,455       26,149        25,442
  Dry Hole Expense         3,290         2,130        9,051         2,475
  Losses on Sales of
   Reserves and Related
   Assets, Other              79           321        1,650           322
  Other, Net               8,147        (4,010)       6,257       (13,084)
   Total Discretionary
    Cash Flow Available
    to Common           $222,960      $101,835     $390,593      $169,824

 

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