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EOG Reports Fourth Quarter Net Income
EOG Resources Reports Fourth Quarter Net Income Available to Common Of $158.7 Million or $1.36 Per Share and Over 8 Percent Full Year North American Production Growth
PRNewswire
HOUSTON

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FOR IMMEDIATE RELEASE: Tuesday, February 6, 2001

EOG Resources, Inc. today reported record fourth quarter and full year 2000 results of net income available to common of $158.7 million, or $1.36 per share and $385.9 million, or $3.30 per share, respectively. This compares to 1999 as adjusted results (adjusted to exclude operations in India and China, transferred to Enron Corp., and various non-recurring items associated with the share exchange agreement with Enron Corp.) of net income available to common of $29.9 million, or $.25 per share and $57.6 million, or $.49 per share, respectively.

During the fourth quarter 2000, total company production per share increased 11.1 percent versus the same quarter a year ago. On a per share basis, natural gas production increased 7.6 percent, crude oil production increased 35.1 percent and natural gas liquids production increased 7.9 percent.

"Combined with record natural gas prices, our strong 2000 results reflect our success in delivering on EOG's long term strategy of being natural gas based, per share focused and rate of return driven," said Mark G. Papa, chairman and chief executive officer.

"Year 2000 was outstanding for our shareholders. EOG's stock price appreciated 211 percent, ranking it third in the S&P 500 Index," noted Papa.

  Other significant EOG accomplishments included:

  Operations
  --  Exceeded original absolute production goal of 4 percent in North
      America by increasing  production over 8 percent primarily through the
      drillbit, compared to 1999,
  --  Set up North America operations for the future:
      --  Added significant North American acreage in several new geologic
          trends,
      --  Increased experienced geological and geophysical employee
          headcount by over 25 percent to enhance future exploration growth,
      --  Increased number of onshore operating divisions to establish a
          foothold in the Appalachian Basin,
  --  Signed contract for 60 million cubic feet per day (Mmcfd) for the U(a)
      block gas to serve an ammonia plant in Trinidad, a region whose
      natural gas based industries are benefiting from the tight North
      American gas market,
  --  Maintained an active drilling program, making EOG the second most
      active driller in the US, measured by footage drilled.

  Capital Structure
  --  Repurchased 2.2 million shares of common stock, reducing the share
      count from 119.1 million at year end 1999 to 116.9 million at year end
      2000,
  --  Repurchased 6.7 million shares to offset employee stock option
      exercises,
  --  Increased the common stock dividend from $.12 per share to $.14 per
      share during the first quarter 2000,
  --  Paid down $131.3 million of debt reducing the debt-to-total
      capitalization ratio from 47 percent at year end 1999 to 38 percent at
      year end 2000.

  Reserves
  --  Increased total company proved reserves by approximately 6 percent to
      3,821 billion cubic feet equivalent (Bcfe) at year end 2000,
  --  Replaced 152 percent of production from all sources at a finding cost
      of $1.07 per thousand cubic feet equivalent (Mcfe),
  --  Retained the independent engineering firm of DeGolyer and MacNaughton
      to evaluate year end 2000 reserves in oil and gas fields comprising
      approximately 50 percent of total reserves.  For the thirteenth
      consecutive year, the estimate by DeGolyer and MacNaughton of the
      proved reserves for the properties reviewed is within five percent of
      the internal estimate prepared by EOG.

"We have successfully strengthened the company's financial future through share buybacks, debt pay down and a very successful capital program during 2000," said Papa. "In 2001, we plan to further reduce debt during the first quarter and continue our high rate of return drilling program in North America."

EOG's fourth quarter and full year conference call will be available via live audio webcast at 9:00 a.m. CST (10:00 a.m. EST) on Wednesday, February 7, 2001. To listen to this webcast, log on to http://www.eogresources.com/. The webcast will be archived on EOG's website for 30 days.

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 Resources 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                   Year
                                 Ended December 31        Ended December 31
                                  2000       1999         2000        1999
  Net Operating Revenues         $505.1     $237.4      $1,489.9     $842.1
  Net Income Available to
   Common                        $158.7     $ 29.9      $  385.9     $568.6
  Net Income Per Share
   Available to Common
    Basic                        $ 1.36     $ 0.25      $   3.30     $ 4.04
    Diluted                      $ 1.33     $ 0.25      $   3.24     $ 4.01
  Average Number of Shares
   Outstanding
    Basic                         116.7      119.1         116.9      140.6
    Diluted                       119.6      119.8         119.1      141.6


                         SUMMARY INCOME STATEMENT
                        (Unaudited; in thousands)

                                     Quarter                   Year
                                Ended December 31        Ended December 31
                                 2000       1999          2000       1999

  Net Operating Revenues
    Natural Gas                $415,533   $187,615    $1,155,804   $683,469
    Crude Oil, Condensate
     and Natural Gas Liquids     86,885     49,118       325,726    159,373
    Gains(Losses) on Sales
     of Reserves and Related
     Assets and Other, Net        2,703        709         8,365       (743)
        Total                   505,121    237,442     1,489,895    842,099
  Operating Expenses
    Lease and Well               39,649     28,966       140,915    132,233
    Exploration                  26,149     11,204        67,196     52,773
    Dry Hole                      2,659      7,991        17,337     11,893
    Impairment of Unproved
     Oil and Gas Properties      10,528      7,782        35,717     31,608
    Depreciation, Depletion
     and Amortization           103,239     90,976       370,026    459,877
    General and
     Administrative              17,565     12,836        66,932     82,857
    Taxes Other Than Income      31,572     12,361        94,909     52,670
        Total                   231,361    172,116       793,032    823,911
  Operating Income              273,760     65,326       696,863     18,188

  Other Income (Expense),
   Net                           (3,115)    (1,382)       (2,300)   611,343

  Income Before Interest
   Expense and Income Taxes     270,645     63,944       694,563    629,531

  Interest Expense, Net          16,107     15,853        61,006     61,819

  Income Before Income Taxes    254,538     48,091       633,557    567,712

  Income Tax Provision
   (Benefit)                     93,091     17,622       236,626     (1,382)

  Net Income                    161,447     30,469       396,931    569,094

  Preferred Stock Dividends      (2,759)      (535)      (11,028)      (535)

  Net Income Available to
   Common                      $158,688    $29,934      $385,903   $568,559


                           EOG RESOURCES, INC.
                           OPERATING HIGHLIGHTS
                               (Unaudited)

                                           Quarter              Year
                                      Ended December 31   Ended December 31
                                        2000      1999      2000     1999
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcf/d)
    United States                        673       658       654      654
    Canada                               128       124       129      115
      North America                      801       782       783      769
    Trinidad                             126        97       125      123
    India                                ---       ---       ---       46
      Total                              927       879       908      938

  Average Natural Gas Prices ($/Mcf)
    United States                      $5.58     $2.56     $3.96    $2.20
    Canada                              4.85      2.20      3.33     1.88
      North America Composite           5.47      2.50      3.86     2.15
    Trinidad                            1.17      1.13      1.17     1.08
    India                                ---       ---       ---     2.09
      Total Composite                   4.88      2.35      3.49     2.01

  Crude Oil/Condensate Volumes (MBD)
    United States                       23.8      16.9      22.8     14.4
    Canada                               1.9       2.3       2.1      2.6
      North America                     25.7      19.2      24.9     17.0
    Trinidad                             2.5       2.1       2.6      2.4
    India                                ---       ---       ---      4.1
      Total                             28.2      21.3      27.5     23.5

  Average Crude Oil/Condensate Prices
   ($/Bbl)
    United States                     $30.44    $23.77    $29.68   $18.55
    Canada                             30.21     22.87     27.76    16.77
      North America Composite          30.42     23.66     29.51    18.28
    Trinidad                           32.62     22.69     30.14    16.21
    India                                ---       ---       ---    12.80
      Total Composite                  30.62     23.57     29.57    17.12

  Natural Gas Liquids Volumes (MBD)
    United States                        3.0       2.6       4.0      2.6
    Canada                               0.7       0.9       0.7      0.8
      Total                              3.7       3.5       4.7      3.4

  Average Natural Gas Liquids Prices
   ($/Bbl)
    United States                     $23.24    $17.71    $20.45   $13.41
    Canada                             20.31     10.68     16.75     8.23
      Total Composite                  22.68     15.97     19.87    12.24

  Natural Gas Equivalent Volumes
   (MMcfe/d)
    United States                        834       775       814      757
    Canada                               144       143       146      134
      North America                      978       918       960      891
    Trinidad                             141       110       141      138
    India                                ---       ---       ---       70
      Total                            1,119     1,028     1,101    1,099

  Total Bcfe Deliveries                102.9      94.6     403.1    401.1


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

                                Quarter               Twelve Months
                           Ended December 31         Ended December 31
                            2000        1999          2000       1999
  Net Income Available
   to Common              $158,688     $29,934      $385,903   $568,559
  Items Not Requiring
   (Providing) Cash
   Depreciation,
    Depletion, and
    Amortization           103,239      90,976       370,026    459,877
   Impairment of
    Unproved Oil and
    Gas Properties          10,528       7,782        35,717     31,608
   Deferred Income
    Taxes                   16,126      (8,651)       97,729    (26,252)
   Other, Net                3,211       1,734         7,127     25,583
  Exploration Expenses      26,149      11,204        67,196     52,773
  Dry Hole Expense           2,659       7,991        17,337     11,893
  (Gains)Losses on
   Sales of Reserves
   and Related Assets
   and Other, Net           (4,033)        994        (5,977)     5,602
  Gain on Sales of
   Other Assets                ---         ---           ---    (59,647)
  Gain on Share
   Exchange                    ---         ---           ---   (575,151)
  Other, Net                17,678      (2,915)       32,372    (17,694)
     Total Discretionary
      Cash Flow Available
      to Common           $334,245    $139,049    $1,007,430   $477,151


                           EOG RESOURCES, INC.
              2000 FINANCIAL REPORT (1999 YTD AS ADJUSTED *)
                (Unaudited; in millions except per share)

                                     Quarter                   Year
                                Ended December 31        Ended December 31
                                                                    1999
                                                                     As
                                 2000        1999         2000   Adjusted *

  Net Operating Revenues        $505.1      $237.4      $1,489.9   $794.6
  Net Income Available to
   Common                       $158.7       $29.9        $385.9    $57.6
  Net Income Per Share
   Available to Common
    Basic                        $1.36       $0.25         $3.30    $0.49
    Diluted                      $1.33       $0.25         $3.24    $0.48
  Average Number of Shares
   Outstanding
    Basic                        116.7       119.1         116.9    118.6
    Diluted                      119.6       119.8         119.1    119.5


            SUMMARY INCOME STATEMENT (1999 YTD AS ADJUSTED *)
                        (Unaudited; in thousands)

                                   Quarter                   Year
                              Ended December 31        Ended December 31
                                                                   1999
                                                                    As
                               2000        1999         2000    Adjusted *
  Net Operating Revenues
    Natural Gas              $415,533    $187,615    $1,155,804   $648,504
    Crude Oil, Condensate
     and Natural Gas
     Liquids                   86,885      49,118       325,726    140,437
    Gains on Sales of
     Reserves and Related
     Assets and Other           2,703         709         8,365      5,659
         Total                505,121     237,442     1,489,895    794,600
  Operating Expenses
    Lease and Well             39,649      28,966       140,915    121,217
    Exploration                26,149      11,204        67,196     50,676
    Dry Hole                    2,659       7,991        17,337     11,893
    Impairment of Unproved
     Oil and Gas Properties    10,528       7,782        35,717     31,607
    Depreciation, Depletion
     and Amortization         103,239      90,976       370,026    328,957
    General and
     Administrative            17,565      12,836        66,932     52,838
    Taxes Other Than Income    31,572      12,361        94,909     47,426
         Total                231,361     172,116       793,032    644,614
  Operating Income            273,760      65,326       696,863    149,986

  Other Expense, Net           (3,115)     (1,382)       (2,300)    (3,441)

  Income Before Interest
   Expense and Income Taxes   270,645      63,944       694,563    146,545

  Interest Expense, Net        16,107      15,853        61,006     60,021

  Income Before Income
   Taxes                      254,538      48,091       633,557     86,524

  Income Tax Provision         93,091      17,622       236,626     28,393

  Net Income                  161,447      30,469       396,931     58,131

  Preferred Stock Dividends    (2,759)       (535)      (11,028)      (535)

  Net Income Available to
   Common                    $158,688     $29,934      $385,903    $57,596

  * Adjusted to exclude operations in India and China and various non-
    recurring items associated with the share exchange agreement.


                           EOG RESOURCES, INC.
            2000 OPERATING HIGHLIGHTS (1999 YTD AS ADJUSTED *)
                               (Unaudited)

                                            Quarter             Year
                                       Ended December 31   Ended December 31
                                                                     1999
                                                                      As
                                         2000      1999     2000  Adjusted *
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcf/d)
    United States                         673       658      654      654
    Canada                                128       124      129      115
      North America                       801       782      783      769
    Trinidad                              126        97      125      123
      Total                               927       879      908      892

  Average Natural Gas Prices ($/Mcf)
    United States                       $5.58     $2.56    $3.96    $2.20
    Canada                               4.85      2.20     3.33     1.88
      North America Composite            5.47      2.50     3.86     2.15
    Trinidad                             1.17      1.13     1.17     1.08
      Total Composite                    4.88      2.35     3.49     2.01

  Crude Oil/Condensate Volumes (MBD)
    United States                        23.8      16.9     22.8     14.4
    Canada                                1.9       2.3      2.1      2.6
      North America                      25.7      19.2     24.9     17.0
    Trinidad                              2.5       2.1      2.6      2.5
      Total                              28.2      21.3     27.5     19.5

  Average Crude Oil/Condensate
   Prices ($/Bbl)
    United States                      $30.44    $23.77   $29.68   $18.55
    Canada                              30.21     22.87    27.76    16.77
      North America Composite           30.42     23.66    29.51    18.28
    Trinidad                            32.62     22.69    30.14    16.21
      Total Composite                   30.62     23.57    29.57    18.02

  Natural Gas Liquids Volumes (MBD)
    United States                         3.0       2.6      4.0      2.6
    Canada                                0.7       0.9      0.7      0.8
      Total                               3.7       3.5      4.7      3.4

  Average Natural Gas Liquids Prices
   ($/Bbl)
    United States                      $23.24    $17.71   $20.45   $13.41
    Canada                              20.31     10.68    16.75     8.23
      Total Composite                   22.68     15.97    19.87    12.24

  Natural Gas Equivalent Volumes
   (MMcfe/d)
    United States                         834       775      814      757
    Canada                                144       143      146      134
      North America                       978       918      960      891
    Trinidad                              141       110      141      138
      Total                             1,119     1,028    1,101    1,029

  Total Bcfe Deliveries                 102.9      94.6    403.1    375.5

  * Adjusted to exclude operations in India and China.


                           EOG RESOURCES, INC.
     2000 SUPPLEMENTAL FINANCIAL INFORMATION (1999 YTD AS ADJUSTED*)
               DISCRETIONARY CASH FLOW AVAILABLE TO COMMON
                        (Unaudited; in thousands)

                                   Quarter                Twelve Months
                              Ended December 31         Ended December 31
                                                                    1999
                                                                     As
                                2000         1999        2000     Adjusted*
  Net Income Available to
   Common                     $158,688     $29,934     $385,903    $57,596
  Items Not Requiring Cash
    Depreciation,
     Depletion, and
     Amortization              103,239      90,976      370,026    328,957
    Impairment of Unproved
     Oil and Gas Properties     10,528       7,782       35,717     31,607
    Deferred Income Taxes       16,126      (8,651)      97,729       (852)
    Other, Net                   3,211       1,734        7,127      5,101
  Exploration Expenses          26,149      11,204       67,196     50,676
  Dry Hole Expense               2,659       7,991       17,337     11,893
  Gains on Sales of
   Reserves and Related
   Assets and Other, Net        (4,033)        994       (5,977)      (799)
  Other, Net                    17,678      (2,915)      32,372    (17,694)
    Total Discretionary
     Cash Flow Available to
     Common                   $334,245    $139,049   $1,007,430   $466,485

  * Adjusted to exclude operations in India and China and various non-
    recurring items associated with the share exchange agreement.


                             EOG RESOURCES, INC.
                          RESERVES SUPPLEMENTAL DATA

   2000 RESERVES RECONCILIATION SUMMARY

                                 United                      Other
  NATURAL GAS (Bcf)              States    Canada  Trinidad  Int'l   Total

  Beginning Reserves             1,657       524       994           3,175
  Revisions of previous
   estimates                        48         6       ---              54
  Purchases in place               189        39       ---             228
  Extensions, discoveries
   and other additions             255        24        65             344
  Sales in place                   (84)      ---       ---             (84)
  Production                      (243)      (47)      (46)           (336)

  Ending Reserves                1,822       546     1,013    ---    3,381


  LIQUIDS (MMBbls) (A)

  Beginning Reserves              47.8       8.9      15.8            72.5
  Revisions of previous
   estimates                      (1.9)      0.1       ---            (1.8)
  Purchases in place               4.0       ---       ---             4.0
  Extensions, discoveries
   and other additions            12.4       0.4       0.7            13.5
  Sales in place                  (0.5)     (2.5)      ---            (3.0)
  Production                      (9.8)     (1.1)     (0.9)          (11.8)

  Ending Reserves                 52.0       5.8      15.6    ---     73.4


  NATURAL GAS EQUIVALENTS (Bcfe)

  Beginning Reserves             1,944       577     1,089           3,610
  Revisions of previous
   estimates                        35         7       ---              42
  Purchases in place               213        39       ---             252
  Extensions, discoveries
   and other additions             330        26        70             426
  Sales in place                   (87)      (15)      ---            (102)
  Production                      (302)      (53)      (52)           (407)

  Ending Reserves                2,133       581     1,107    ---    3,821


  EXPLORATION AND DEVELOPMENT
    EXPENDITURES ($ Million)

  Acquisition cost of
   properties
     Unproved                    $45.5      $5.7      $---   $---    $51.2
      Proved                      88.4      14.0       ---    ---    102.4
  Exploration Costs               98.7       9.7      10.8    3.6    122.8
  Development Costs              335.1      46.0      29.7    ---    410.8

    Total                        567.7      75.4      40.5    3.6    687.2

  Proceeds from sales
   in place                      (24.1)     (2.1)      ---    ---    (26.2)

  Net Expenditures              $543.6     $73.3     $40.5   $3.6   $661.0


  (A)  Includes crude oil, condensate and natural gas liquids.


                             EOG RESOURCES, INC.
                RESERVES SUPPLEMENTAL DATA - AS ADJUSTED (A)

   RESERVES SUMMARY (Bcfe)                    2000        1999        1998

  Net proved reserves at beginning of
   year                                      3,610       3,478       2,627
  Revisions of previous estimates               42          14         (64)
  Purchases in place                           252         159         192
  Extensions, discoveries and other
   additions                                   426         404       1,157
  Sales in place                              (102)        (73)        (43)
  Production                                  (407)       (372)       (391)

  Net proved reserves at end of year         3,821       3,610       3,478


  EXPLORATION AND DEVELOPMENT EXPENDITURES ($ Million)

  Acquisition cost of properties
      Unproved                               $51.2       $21.2       $36.4
      Proved                                 102.4        42.9       210.9
  Exploration Costs                          122.8        84.4       134.0
  Development Costs                          410.8       279.3       334.6

      Total                                  687.2       427.8       715.9

  Proceeds from sales in place               (26.2)      (10.9)      (61.9)

  Net Expenditures                          $661.0      $416.9      $654.0

  2000 PRODUCTION REPLACEMENT RATIOS
  (On All-Sources Basis)

        North America                          154%
        Outside North America                  134%
          Total                                152%

  (A) Excludes India and China reserves and expenditures which were
      transferred to Enron Corp. in the share exchange agreement and deep
      Paleozoic reserves which are not being currently pursued.

For Further Information Contact:
Maire A. Baldwin
(713) 651-6EOG (651-6364)

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