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EOF Reports First Quarter Earnings
EOG Resources Reports Over Seven Percent Increase in U.S. Natural Gas Production and Record First Quarter Net Income Available to Common Of $212.5 Million or $1.79 Per Share
PRNewswire

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FOR IMMEDIATE RELEASE: Monday, April 23, 2001

HOUSTON, April 23 /PRNewswire Interactive News Release/ -- EOG Resources, Inc. , an S&P 500 Index company, today reported record first quarter net income available to common of $212.5 million, or $1.79 per share compared to net income available to common of $38.8 million, or $.33 per share in the first quarter a year ago.

"At a time when the industry as a whole is struggling to maintain flat gas production, EOG increased U.S. natural gas production by over seven percent. This demonstrates our ability to continue to grow our production organically," said Mark G. Papa, chairman and chief executive officer. "Our operations and drilling inventory are in the best shape ever; we are off to a great start in 2001."

Versus the same quarter a year ago, EOG's North American daily natural gas production increased 4.2 percent, crude and condensate production increased 7.4 percent and natural gas liquids production decreased 31.4 percent. This resulted in overall EOG North American production growth of approximately four percent, consistent with the 2001 full year target. Based on shares outstanding, production per share increased approximately five percent in North America.

"EOG has significantly ramped up its North American activity," Papa noted. "Over the last year, our acreage position (including trades) has increased over 50 percent, our geological and geophysical headcount has grown by over 20 percent and EOG currently has 50 percent more rigs drilling than this time last year. To position EOG for the future, North American capital expenditures increased during the first quarter to $185.0 million, compared to $85.3 million in the first quarter 2000."

Results from the quarter further solidify EOG's focus on organic growth and its long-term financial strategy. EOG continued to strengthen its financial structure with the following:

   --   Reduced the number of common shares outstanding by approximately
        700,000 to 116.2 million,
   --   Paid down $214.1 million of debt, reducing the debt to total
        capitalization ratio from 38.3 percent at year end 2000 to
        29.6 percent at the end of the first quarter 2001 and
   --   Increased the annual common dividend by 14 percent from $.14 to
        $.16 per share.

EOG's first quarter conference call will be available via live audio webcast at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) on Monday, April 23, 2001. To listen to this webcast, log on to http://www.eogresources.com/. The webcast will be archived on EOG's website for 14 days.

EOG Resources, Inc. 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, Inc. 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
                                                       Ended March 31
                                                   2001              2000

  Net Operating Revenues                          $597.3            $259.9
  Net Income Available to Common                  $212.5             $38.8
  Net Income Per Share Available to Common
    Basic                                          $1.83             $0.33
    Diluted                                        $1.79             $0.33
  Average Number of Shares Outstanding
    Basic                                          116.4             117.8
    Diluted                                        119.0             118.3


                         SUMMARY INCOME STATEMENT
                        (Unaudited; in thousands)

                                                         Quarter
                                                      Ended March 31
                                                  2001              2000
  Net Operating Revenues
    Natural Gas                                 $521,477          $186,200
    Crude Oil, Condensate and Natural
     Gas Liquids                                  75,194            73,067
    Gains on Sales of Reserves and
     Related Assets and Other, Net                   582               629
      Total                                      597,253           259,896
  Operating Expenses
    Lease and Well                                42,574            33,739
    Exploration                                   20,265            12,945
    Dry Hole                                      15,684             5,761
    Impairments                                   15,764             8,402
    Depreciation, Depletion and
     Amortization                                 93,961            84,137
    General and Administrative                    17,949            16,287
    Taxes Other Than Income                       37,032            18,415
      Total                                      243,229           179,686
  Operating Income                               354,024            80,210

  Other Income (Expense), Net                       (639)               17

  Income Before Interest Expense and
   Income Taxes                                  353,385            80,227

  Interest Expense, Net                           13,289            14,568

  Income Before Income Taxes                     340,096            65,659

  Income Tax Provision                           124,849            24,169

  Net Income                                     215,247            41,490

  Preferred Stock Dividends                       (2,721)           (2,654)

  Net Income Available to Common                $212,526           $38,836


                           EOG RESOURCES, INC.
                           OPERATING HIGHLIGHTS
                               (Unaudited)

                                                           Quarter
                                                        Ended March 31
                                                    2001              2000
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcf/d)
    United States                                    704               656
    Canada                                           117               132
      North America                                  821               788
    Trinidad                                         120               128
      Total                                          941               916

  Average Natural Gas Prices ($/Mcf)
    United States                                  $6.97             $2.53
    Canada                                          6.60              2.17
      North America Composite                       6.91              2.47
    Trinidad                                        1.22              1.17
      Total Composite                               6.19              2.29

  Crude Oil/Condensate Volumes (MBD)
    United States                                   23.0              20.7
    Canada                                           1.7               2.3
      North America                                 24.7              23.0
    Trinidad                                         2.2               2.9
      Total                                         26.9              25.9

  Average Crude Oil/Condensate Prices
   ($/Bbl)
    United States                                 $28.09            $28.14
    Canada                                         25.25             26.83
      North America Composite                      27.89             28.01
    Trinidad                                       28.84             27.85
      Total Composite                              27.97             27.99

  Natural Gas Liquids Volumes (MBD)
    United States                                    3.0               4.3
    Canada                                           0.5               0.8
      Total                                          3.5               5.1

  Average Natural Gas Liquids Prices
   ($/Bbl)
    United States                                 $23.95            $20.64
    Canada                                         23.46             13.64
      Total Composite                              23.88             19.58

  Natural Gas Equivalent Volumes
   (MMcfe/d)
    United States                                    860               805
    Canada                                           131               151
      North America                                  991               956
    Trinidad                                         132               145
      Total                                        1,123             1,101

  Total Bcfe Deliveries                            101.1             100.2


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

                                                         Quarter
                                                      Ended March 31
                                                  2001              2000

  Net Income Available to Common                $212,526           $38,836
  Items Not Requiring Cash
    Depreciation, Depletion, and
     Amortization                                 93,961            84,137
    Impairments                                   15,764             8,402
    Deferred Income Taxes                         34,452            17,045
    Other, Net                                     5,497               826
  Exploration Expenses                            20,265            12,945
  Dry Hole Expense                                15,684             5,761
  Losses on Sales of Reserves and
   Related Assets and Other, Net                     316             1,571
  Other, Net                                       2,013            (1,890)
    Total Discretionary Cash Flow
     Available to Common                        $400,478          $167,633

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

 

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