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EOG Resources Reports 2005 Net Income
* Achieves 16.2 Percent Daily Production Increase
* Raises 2006 Total Company Organic Production Growth Target to 10.5 Percent - 16.5 Percent for United States and Canadian Natural Gas
* Continues High Level of Economic Success in Johnson County Barnett Shale Activity and Increases Confidence in Western Counties
* Announces Natural Gas Discovery in Trinidad * Reports 9.7 Percent Reserve Growth
* Increases Common Stock Dividend 50 Percent
PRNewswire-FirstCall
HOUSTON

Click here for PDF version

FOR IMMEDIATE RELEASE: Wednesday, February 1, 2006

EOG Resources, Inc. today reported fourth quarter 2005 net income available to common of $461.8 million, or $1.88 per share. This compares to fourth quarter 2004 net income available to common of $204.1 million, or $0.85* per share. For the full year 2005, EOG reported net income available to common of $1,252.1 million or $5.13 per share as compared to $614.0 million, or $2.58* per share, for the full year 2004.

The results for the fourth quarter 2005 included the following previously disclosed items: a one-time tax expense of $23.6 million ($0.10 per share) related to the repatriation of accumulated foreign earnings, an $11.4 million ($7.3 million after tax or $0.03 per share) gain on the mark-to-market of financial commodity price transactions and a one-time interest charge of $7.5 million ($4.9 million after tax or $0.02 per share) related to the early retirement of EOG's 2008 Notes. During the quarter, there was no cash realized related to financial commodity contracts. Consistent with some analysts' practice of matching realizations to settlement months and to exclude the impact of the above one-time items, adjusted non-GAAP net income available to common for the quarter was $482.9 million, or $1.97 per share. Last year's fourth quarter results included a $2.8 million ($1.8 million after tax, or $0.01* per share) gain on the mark-to-market of financial commodity price transactions. The net cash outflow from the settlement of financial commodity price transactions was $12.7 million ($8.1 million after tax, or $0.03* per share). Reflecting these items, fourth quarter 2004 adjusted non- GAAP net income available to common was $194.2 million, or $0.81* per share. On a similar basis, eliminating the one-time items detailed in the attached table, adjusted non-GAAP net income available to common for the full year 2005 was $1,271.5 million, or $5.21 per share and for the full year 2004 was $576.6 million, or $2.42* per share. (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income available to common to net income available to common.)

   * Fourth quarter and full year 2004 per share amounts are restated for
     the two-for-one stock split effective March 1, 2005.

  2006 Production Growth Target Increased

"Without a doubt, 2005 was EOG's strongest year to date. Through the consistent, successful execution of our drilling program, we exceeded our goals for total company production growth and increased North American natural gas production beyond our target while reducing net debt. Even though we are coming off a higher 2005 production base than we had targeted, we have the confidence to increase our 2006 production growth goals from the previously stated 9.5 percent to 10.5 percent. We expect a disproportionate amount of this 2006 production increase to emanate from our higher margin natural gas activities in the U.S. and Canada where we are targeting 16.5 percent growth," said Mark G. Papa, Chairman and Chief Executive Officer.

Operational Highlights

For the full year 2005, total company production increased 16.2 percent on a daily basis as compared to 2004, exceeding the most recently stated production growth target of 15.5 percent. In the United States and Canada, where EOG posted outstanding operational results, natural gas production increased 12.2 percent. The largest production increases were reported from the Fort Worth Basin Barnett Shale Play, East Texas, North Louisiana, the Mid-Continent and the Rocky Mountains.

EOG holds more than 500,000 total acres in the Barnett Shale where it currently operates 12-rigs. Over the course of 2006, EOG plans to expand its drilling program across the play to a 22-rig program.

In Johnson County, the Raam Unit #1H well began natural gas production in January at an initial rate of 10 million cubic feet per day (MMcfd). After 10 days of sales, the well, in which EOG has a 100 percent working interest, is producing 8 MMcfd. In northeastern Johnson County, the Scottie Dog #2H, in which EOG has an 88 percent working interest, was completed in late December at an initial gross rate of 7.0 MMcfd. The well is currently producing 3.9 MMcfd, gross of natural gas. In western Johnson County, EOG has a 100 percent working interest in the Brown Unit #1H that began flowing to sales in January and is now producing 3.8 MMcfd.

"The Raam #1H is one of the best natural gas wells completed by any operator in the entire Barnett Shale Play, not just in Johnson County," Papa said. "With the results of our down spacing tests and the strength of our drilling activity, in 2006 we plan to pursue development in Johnson County on 500-foot spacing."

In the western counties of Jack, Erath and Hood, EOG is doubling its drilling activity to a four-rig program in the first quarter of 2006.

"We believe that the completion techniques that further improved our drilling economics in Johnson County can be applied to our acreage in the western counties where we have seen improved drilling results over the past three months," Papa said. "This provides the assurance to actively pursue development in these areas."

During 2005, total daily production increased 40 percent from 2004 in the United Kingdom North Sea and offshore Trinidad. EOG reported its first full year of production from the United Kingdom North Sea.

In Trinidad, total 2005 daily production increased 25 percent over the previous year. During 2005, EOG commenced natural gas production to supply two new long-term contracts. EOG is supplying natural gas that is being used as feedstock for the M5000 Methanol Plant, which began operation in September, and for Atlantic LNG Train 4, which started taking gas in December prior to plant commissioning. During the fourth quarter 2005, EOG's natural gas deliveries to the two plants exceeded expected volumes. EOG also reported exploration success from its first well, the 4(a) E-1, drilled on Block 4(a) offshore Trinidad, which encountered 399 feet of net gas pay from multiple sands. EOG has a 90 percent working interest in the block where it plans to immediately drill a second well, the E-2, into an adjoining fault block.

"Based on the drilling results from the E-1, we expect that together the E-1 and E-2 wells will prove up 200 to 400 net billion cubic feet of gas on Block 4(a). We intend to commence development work by mid-2006 and are targeting mid-2009 for on-line production," said Papa.

Reserves

At December 31, 2005, total company reserves were approximately 6.2 trillion cubic feet equivalent, an increase of 548 billion cubic feet equivalent (Bcfe), or almost 10 percent higher than 2004. From drilling alone, EOG added 1,046 Bcfe of reserves. For the year, total reserve replacement -- the ratio of net reserve additions from drilling, acquisitions, revisions and dispositions to total production -- was 204 percent. (Please see attached tables for supporting data.)

"In the current rising cost environment, we consider the all-in unit reserve replacement costs, which are essentially flat with those of 2004 to be excellent," said Papa. (Please see attached tables for supporting data.)

For the 18th consecutive year, internal reserve estimates were within 5 percent of those prepared by the independent reserve engineering firm of DeGolyer and MacNaughton. The firm prepared an independent engineering analysis of properties containing 82 percent of EOG's proved reserves on a Bcfe basis.

Capital Structure

At December 31, 2005, EOG's total current and long-term debt outstanding was $985 million, and cash on the balance sheet was $644 million for net debt of $341 million. (Please refer to the attached tables for the reconciliation of non-GAAP net debt to current and long-term debt.) The company's debt-to-total capitalization ratio was 19 percent at December 31, 2005, down from 27 percent at December 31, 2004.

"In 2005, we executed a dynamic drilling program, posted a 16.2 percent daily production increase, achieved a 35.5 percent return on equity and a 30 percent return on capital employed, while paying down debt to end the year with a 7 percent net debt to total capitalization ratio," said Papa. "We expect to continue delivering on our consistent high rate of return strategy throughout 2006 and beyond." (Please refer to the attached tables for the calculation of return on equity, return on capital employed and the reconciliation of non-GAAP net debt to current and long-term debt.)

Dividend Increase Announced

Following a 33 percent increase in 2005, EOG's Board of Directors again has increased the cash dividend on the common stock. Effective with the dividend payable on April 28, 2006 to record holders as of April 13, 2006, the quarterly dividend on the common stock will be $0.06 per share. This reflects a 50 percent increase to an indicated annual rate of $0.24 per share, the sixth increase in seven years.

Conference Call Scheduled for February 2, 2006

EOG's fourth quarter and full year 2005 conference call will be available via live audio webcast at 8:00 a.m. Central Standard Time (9:00 a.m. Eastern Standard Time) Thursday, February 2, 2006. To listen, log on to http://www.eogresources.com/ . The webcast will be archived on EOG's website through Thursday, February 16, 2006.

EOG Resources, Inc. is one of the largest independent (non-integrated) oil and natural gas companies in the United States with proved reserves in the United States, Canada, offshore Trinidad and the United Kingdom North Sea. 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. All statements other than statements of historical facts, including, among others, statements regarding EOG's future financial position, business strategy, budgets, reserve information, projected levels of production, projected costs and plans and objectives of management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "strategy," "intend," "plan," "target" and "believe" or the negative of those terms or other variations of them or by comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning future operating results, the ability to replace or increase reserves or to increase production, or the ability to generate income or cash flows are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes its expectations reflected in forward-looking statements are based on reasonable assumptions, no assurance can be given that these expectations will be achieved. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include, among others: the timing and extent of changes in commodity prices for crude oil, natural gas and related products, foreign currency exchange rates and interest rates; the timing and impact of liquefied natural gas imports and changes in demand or prices for ammonia or methanol; the extent and effect of any hedging activities engaged in by EOG; the extent of EOG's success in discovering, developing, marketing and producing reserves and in acquiring oil and gas properties; the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; the availability and cost of drilling rigs, experienced drilling crews, materials and equipment used in well completions, and tubular steel; the availability, terms and timing of governmental and other permits and rights of way; the availability of pipeline transportation capacity; the extent to which EOG can economically develop its Barnett Shale acreage outside of Johnson County, Texas; whether EOG is successful in its efforts to more densely develop its acreage in the Barnett Shale and other production areas; political developments around the world; acts of war and terrorism and responses to these acts; weather; and financial market conditions. In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements might not occur. Forward-looking statements speak only as of the date made and EOG undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. As noted above, statements of proved reserves are only estimates and may be imprecise. Any reserve estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include not only proved reserves, but also other categories of reserves that the SEC's guidelines strictly prohibit EOG from including in filings with the SEC. Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for fiscal year ended December 31, 2004, available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the SEC's website at http://www.sec.gov/ .

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

                                    Quarter               Twelve Months
                                Ended December 31       Ended December 31
                                 2005      2004          2005        2004
  Net Operating Revenues      $1,213.7    $693.7      $3,620.2    $2,271.2
  Net Income Available to
   Common                       $461.8    $204.1      $1,252.1      $614.0
  Net Income Per Share
   Available to Common
    Basic                        $1.92     $0.86 *       $5.24       $2.63 *
    Diluted                      $1.88     $0.85 *       $5.13       $2.58 *
  Average Number of Shares
   Outstanding
    Basic                        240.4     236.1 *       238.8       233.8 *
    Diluted                      245.5     241.1 *       244.0       238.4 *



                        SUMMARY INCOME STATEMENTS
                        (Unaudited; in thousands)

                                 Quarter                 Twelve Months
                            Ended December 31          Ended December 31
                            2005        2004          2005          2004
  Net Operating Revenues
    Wellhead Natural
     Gas                $1,019,008    $547,527    $2,938,917    $1,842,316
    Wellhead Crude
     Oil, Condensate
     and Natural Gas
     Liquids               184,489     142,208       668,073       458,446
    Gains (Losses) on
     Mark-to-Market
     Commodity
     Derivative
     Contracts              11,415       2,826        10,475       (33,449)
    Other, Net              (1,224)      1,093         2,748         3,912
      Total              1,213,688     693,654     3,620,213     2,271,225
  Operating Expenses
    Lease and Well,
     including
     Transportation        111,619      72,110       373,355       271,086
    Exploration Costs       38,283      26,475       133,116        93,941
    Dry Hole Costs           8,563      41,937        64,812        92,142
    Impairments             23,237      30,241        77,932        81,530
    Depreciation,
     Depletion and
     Amortization          176,974     144,125       654,258       504,403
    General and
     Administrative         37,039      34,152       125,918       115,013
    Taxes Other Than
     Income                 63,098      38,091       199,007       133,915
       Total               458,813     387,131     1,628,398     1,292,030
  Operating Income         754,875     306,523     1,991,815       979,195

  Other Income, Net         13,330       7,296        35,828         9,945

  Income Before
   Interest Expense
   and Income Taxes        768,205     313,819     2,027,643       989,140

  Interest Expense,
   Net                      19,985      14,919        62,506        63,128

  Income Before
   Income Taxes            748,220     298,900     1,965,137       926,012

  Income Tax
   Provision               284,564      92,145       705,561       301,157

  Net Income               463,656     206,755     1,259,576       624,855

  Preferred Stock
   Dividends                 1,859       2,618         7,432        10,892

  Net Income
   Available to
   Common                 $461,797    $204,137    $1,252,144      $613,963

  * Restated for 2-for-1 stock split effective March 1, 2005.



                           EOG RESOURCES, INC.
                           OPERATING HIGHLIGHTS
                               (Unaudited)

                                         Quarter           Twelve Months
                                    Ended December 31    Ended December 31
                                     2005      2004      2005        2004
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcf/d)
    United States                      749       666       718         631
    Canada                             225       234       228         212
      United States & Canada           974       900       946         843
    Trinidad                           294       224       231         186
    United Kingdom                      44        19        39           7
      Total                          1,312     1,143     1,216       1,036

  Average Natural Gas Prices
   ($/Mcf)
    United States                   $10.38     $6.21     $7.86       $5.72
    Canada                            9.73      5.79      7.14        5.22
      United States & Canada
       Composite                     10.23      6.10      7.69        5.60
    Trinidad                          2.25      1.63      2.20 (A)    1.51
    United Kingdom                   10.24      5.08      6.99        5.14
      Composite                       8.44      5.20      6.62        4.86

  Crude Oil and Condensate
   Volumes (MBD)
    United States                     20.4      22.5      21.5        21.1
    Canada                             2.5       2.9       2.4         2.7
      United States & Canada          22.9      25.4      23.9        23.8
    Trinidad                           5.6       4.4       4.5         3.6
    United Kingdom                     0.2       0.1       0.2         ---
      Total                           28.7      29.9      28.6        27.4

  Average Crude Oil and
   Condensate Prices ($/Bbl)
    United States                   $57.20    $46.68    $54.57      $40.73
    Canada                           54.05     42.50     50.49       37.68
      United States & Canada
       Composite                     56.86     46.19     54.16       40.39
    Trinidad                         65.78     41.14     57.36       39.12
    United Kingdom                   51.89     40.82     49.62         ---
      Composite                      58.55     45.43     54.63       40.22

  Natural Gas Liquids Volumes (MBD)
    United States                      6.9       4.9       6.6         4.8
    Canada                             0.7       1.1       0.9         0.8
      Total                            7.6       6.0       7.5         5.6

  Average Natural Gas Liquids
   Prices ($/Bbl)
    United States                   $42.62    $32.75    $35.59      $27.79
    Canada                           46.68     26.09     35.59       23.23
      Composite                      42.97     31.48     35.59       27.13

  Natural Gas Equivalent Volumes
   (MMcfe/d)
    United States                      913       830       886         786
    Canada                             244       258       248         233
      United States & Canada         1,157     1,088     1,134       1,019
    Trinidad                           327       251       259         207
    United Kingdom                      45        20        40           7
      Total                          1,529     1,359     1,433       1,233

  Total Bcfe Deliveries              140.7     125.0     523.0       451.5


  (A) Includes $0.23 per Mcf as a result of a revenue adjustment related to
      an amended Trinidad take-or-pay contract.



                           EOG RESOURCES, INC.
                          SUMMARY BALANCE SHEETS
               (Unaudited; in thousands, except share data)

                                              December 31,      December 31,
                                                  2005              2004

                                  ASSETS
  Current Assets
    Cash and Cash Equivalents                   $643,811           $20,980
    Accounts Receivable, Net                     762,207           447,742
    Inventories                                   63,215            40,037
    Assets from Price Risk Management
     Activities                                   11,415            10,747
    Income Taxes Receivable                          255             3,232
    Deferred Income Taxes                         24,376            22,227
    Other                                         57,959            41,838
         Total                                 1,563,238           586,803

  Oil and Gas Properties (Successful
   Efforts Method)                            11,173,389         9,599,276
    Less:  Accumulated Depreciation,
     Depletion and Amortization               (5,086,210)       (4,497,673)
        Net Oil and Gas Properties             6,087,179         5,101,603
  Other Assets                                   102,903           110,517
  Total Assets                                $7,753,320        $5,798,923



                   LIABILITIES AND SHAREHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                            $679,548          $424,581
    Accrued Taxes Payable                        140,902            51,116
    Dividends Payable                              9,912             7,394
    Deferred Income Taxes                        164,659           103,933
    Current Portion of Long-Term Debt            126,075               ---
    Other                                         50,945            45,180
         Total                                 1,172,041           632,204


  Long-Term Debt                                 858,992         1,077,622
  Other Liabilities                              283,407           241,319
  Deferred Income Taxes                        1,122,588           902,354

  Shareholders' Equity
    Preferred Stock, $0.01 Par,
     10,000,000 Shares Authorized:
         Series B, 100,000 Shares Issued,
          Cumulative, $100,000,000 Liquidation
          Preference                              99,062            98,826
    Common Stock, $0.01 Par, 640,000,000 Shares
     Authorized and 249,460,000* Shares Issued   202,495           201,247
    Additional Paid In Capital                    84,705            21,047
    Unearned Compensation                        (36,246)          (29,861)
    Accumulated Other Comprehensive Income       177,137           148,015
    Retained Earnings                          3,920,483         2,706,845
    Common Stock Held in Treasury,
     7,385,862 Shares at December 31, 2005
     and 11,605,112* Shares at
     December 31, 2004                          (131,344)         (200,695)
           Total Shareholders' Equity          4,316,292         2,945,424
  Total Liabilities and Shareholders'
   Equity                                     $7,753,320        $5,798,923

  * Restated for 2-for-1 stock split effective March 1, 2005.



                           EOG RESOURCES, INC.
                     SUMMARY STATEMENTS OF CASH FLOWS
                        (Unaudited; in thousands)

                                                       Twelve Months
                                                     Ended December 31
                                                  2005              2004
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net
   Cash Provided by Operating Activities:
    Net Income                                $1,259,576          $624,855
    Items Not Requiring Cash
       Depreciation, Depletion and
        Amortization                             654,258           504,403
       Impairments                                77,932            81,530
       Deferred Income Taxes                     270,291           204,231
       Other, Net                                  9,642             4,580
    Dry Hole Costs                                64,812            92,142
    Mark-to-Market Commodity Derivative
     Contracts
       Total (Gains) Losses                      (10,475)           33,449
       Realized Gains (Losses)                     9,807           (82,644)
       Collar Premium                                ---              (520)
    Tax Benefits From Stock Options Exercised     50,880            29,396
    Other, Net                                    (5,086)              537
    Changes in Components of Working
     Capital and Other Liabilities
       Accounts Receivable                      (315,557)         (151,799)
       Inventories                               (23,085)          (17,898)
       Accounts Payable                          248,411           136,716
       Accrued Taxes Payable                      88,151            18,197
       Other Liabilities                          (1,213)           (1,764)
       Other, Net                                (10,347)           (2,683)
    Changes in Components of Working Capital
     Associated with Investing and Financing
     Activities                                    1,429           (28,381)
  Net Cash Provided by Operating Activities    2,369,426         1,444,347

  Investing Cash Flows
    Additions to Oil and Gas Properties       (1,724,763)       (1,416,684)
    Proceeds from Sales of Assets                 70,987            13,459
    Changes in Components of Working
     Capital Associated with
     Investing Activities                         (1,538)           26,788
    Other, Net                                   (22,794)          (20,471)
  Net Cash Used in Investing Activities       (1,678,108)       (1,396,908)

  Financing Cash Flows
    Commercial Paper Repayments                  (91,800)           (6,250)
    Long-Term Debt Borrowings                    250,000           150,000
    Long-Term Debt Repayments                   (250,755)         (175,000)
    Dividends Paid                               (42,986)          (37,595)
    Redemption of Preferred Stock                    ---           (50,000)
    Proceeds from Stock Options Exercised         64,668            75,510
    Changes in Components of Working
     Capital Associated with
     Financing Activities                            109             1,593
    Other, Net                                    (1,546)           (1,496)
  Net Cash Used in Financing Activities          (72,310)          (43,238)

  Effect of Exchange Rate Changes on Cash          3,823            12,336

  Increase in Cash and Cash Equivalents          622,831            16,537
  Cash and Cash Equivalents at Beginning
   of Period                                      20,980             4,443
  Cash and Cash Equivalents at End of
   Period                                       $643,811           $20,980



                           EOG RESOURCES, INC.
  QUANTITATIVE RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON
           (Non-GAAP) TO NET INCOME AVAILABLE TO COMMON (GAAP)
             (Unaudited; in thousands, except per share data)

The following chart adjusts three-month and twelve-month periods ended December 31 reported Net Income Available to Common to reflect actual cash realized from oil and gas hedges by eliminating the unrealized mark-to-market gains or losses from these transactions, to add the one-time interest charge related to early retirement of the 2008 Notes and the one-time tax expense related to the repatriation of accumulated foreign earnings in the fourth quarter 2005, to eliminate the upward revenue adjustment for an amended Trinidad gas sales agreement recorded in the second quarter of 2005 and to eliminate a tax benefit related to the Alberta (Canada) corporate tax rate reduction recorded in the second quarter of 2004. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match realizations to production settlement months and make certain other adjustments to exclude one-time items. EOG management uses this information for comparative purposes within the industry.

                                   Quarter               Twelve Months
                              Ended December 31        Ended December 31
                               2005       2004          2005        2004

  Reported Net Income
   Available to Common       $461,797   $204,137     $1,252,144   $613,963

  Mark-to-Market (MTM)
   Commodity Derivative
   Contracts Impact
    Total (Gains) Losses      (11,415)    (2,826)       (10,475)    33,449
    Realized (Losses) Gains       ---    (12,137)         9,807    (82,644)
    Collar Premium                ---       (520)           ---       (520)
       Subtotal               (11,415)   (15,483)          (668)   (49,715)

   After Tax MTM Impact        (7,346)    (9,963)          (430)   (31,992)

  Add:  Interest charge
   related to early
   retirement of the 2008
   Notes, net of tax            4,855        ---          4,855        ---
  Add:  Tax expense related
   to the repatriation of
   accumulated foreign
   earnings                    23,625        ---         23,625        ---
  Less: Revenue adjustment
   for an amended Trinidad
   gas sales agreement,
   net of tax                     ---        ---         (8,672)       ---
  Less: Tax benefit related
   to the Alberta (Canada)
   corporate tax rate reduction   ---        ---            ---     (5,335)


  Adjusted Non-GAAP Net
   Income Available to
   Common                    $482,931   $194,174     $1,271,522   $576,636

  Adjusted Non-GAAP Net
   Income Per Share
   Available to Common
     Basic                      $2.01      $0.82 *        $5.32      $2.47 *
     Diluted                    $1.97      $0.81 *        $5.21      $2.42 *

  Average Number of Shares
   Outstanding
     Basic                    240,427    236,140 *      238,797    233,751 *
     Diluted                  245,463    241,113 *      243,975    238,376 *

  * Restated for 2-for-1 stock split effective March 1, 2005.



                           EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF DISCRETIONARY CASH FLOW AVAILABLE TO COMMON
      (Non-GAAP) TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)
                        (Unaudited; in thousands)

The following chart reconciles three-month and twelve-month periods ended December 31 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow Available to Common (Non-GAAP). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Exploration Costs, Changes in Components of Working Capital, Other Liabilities and Preferred Stock Dividends. EOG management uses this information for comparative purposes within the industry.

                                      Quarter              Twelve Months
                                 Ended December 31       Ended December 31
                                 2005        2004        2005        2004
  Net Cash Provided by
   Operating Activities
   (GAAP)                      $865,214    $426,473  $2,369,426  $1,444,347

  Adjustments
    Exploration Costs            38,283      26,475     133,116      93,941
    Changes in Components of
     Working Capital and
     Other Liabilities
      Accounts Receivable       144,129      97,627     315,557     151,799
      Inventories                 8,349       9,187      23,085      17,898
      Accounts Payable         (169,172)    (80,159)   (248,411)   (136,716)
      Accrued Taxes Payable     (80,133)    (11,769)    (88,151)    (18,197)
      Other Liabilities              49       6,384       1,213       1,764
      Other, Net                 11,151      (2,518)     10,347       2,683
    Changes in Components of
     Working Capital
     Associated with Investing
     and Financing Activities    (3,371)     10,785      (1,429)     28,381
    Preferred Dividends          (1,859)     (2,618)     (7,432)    (10,892)

  Discretionary Cash Flow
   Available to Common
   (Non-GAAP)                  $812,640    $479,867  $2,507,321  $1,575,008



EOG RESOURCES, INC. QUANTITATIVE RECONCILIATION OF NET DEBT (NON-GAAP) AS USED IN THE CALCULATION

OF THE NET DEBT-TO-TOTAL CAPITALIZATION RATIO TO CURRENT AND LONG-TERM DEBT

                                  (GAAP)
            (Unaudited; in millions, except ratio information)

The following chart reconciles Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) as used in the Net Debt-to-Total Capitalization ratio calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt in their Net Debt-to-Total Capitalization calculation. EOG management uses this information for comparative purposes within the industry.

                                                    12/31/2005

     Total Shareholders' Equity - (a)                $4,316.3

     Current and Long-Term Debt                         985.1
     Less: Cash                                        (643.8)
     Net Debt (Non-GAAP) - (b)                          341.3

     Total Capitalization (Non-GAAP) - (a) + (b)     $4,657.6

     Net Debt-to-Total Capitalization -
      (b) / [(a) + (b)]                                    7%



EOG RESOURCES, INC. QUANTITATIVE RECONCILIATION OF COMMON SHAREHOLDERS' EQUITY (NON-GAAP) AS USED

 IN THE CALCULATION OF THE RETURN ON EQUITY (ROE) TO SHAREHOLDERS' EQUITY
                                  (GAAP)
            (Unaudited; in millions, except ratio information)

The following chart reconciles Shareholders' Equity (GAAP) to Common Shareholders' Equity (Non-GAAP) as used in the Return on Equity (ROE) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Common Shareholders' Equity in their ROE calculation. EOG management uses this information for comparative purposes within the industry.

                                             2004               2005

  Shareholders' Equity                     $2,945.4           $4,316.3
  Less: Preferred Stock                       (98.8)             (99.1)
  Common Shareholders' Equity
   (Non-GAAP)                              $2,846.6           $4,217.2

  Average Common Shareholders' Equity
   - (a)                                                      $3,531.9

  Net Income Available to Common - (b)                        $1,252.1

  Return on Equity (ROE) - (b) / (a)                             35.5%



                           EOG RESOURCES, INC.

QUANTITATIVE RECONCILIATION OF AFTER-TAX INTEREST EXPENSE (NON-GAAP) AND NET

DEBT (NON-GAAP) AS USED IN THE CALCULATION OF THE RETURN ON CAPITAL EMPLOYED

 (ROCE) TO INTEREST EXPENSE (GAAP) AND CURRENT AND LONG-TERM DEBT (GAAP),
                               RESPECTIVELY
            (Unaudited; in millions, except ratio information)

The following chart reconciles Interest Expense (GAAP) and Current and Long-Term Debt (GAAP) to After-Tax Interest Expense (Non-GAAP) and Net Debt (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Interest Expense and Net Debt in their ROCE calculation. EOG management uses this information for comparative purposes within the industry.

                                              2004              2005

  Interest Expense                                              $62.5
  Tax Benefit Imputed (based on 35%)                            (21.9)
  After Tax Interest Expense (Non-GAAP)
   - (a)                                                        $40.6

  Net Income - (b)                                           $1,259.6

  Shareholders' Equity                     $2,945.4          $4,316.3

  Current and Long-Term Debt                1,077.6             985.1
  Less: Cash                                  (21.0)           (643.8)
  Net Debt (Non-GAAP)                       1,056.6             341.3

  Total Capitalization (Non-GAAP)          $4,002.0          $4,657.6

  Average Total Capitalization
   (Non-GAAP) - (c)                                          $4,329.8

  Return on Capital Employed (ROCE) -
   [(a) + (b)] / (c)                                              30%



                           EOG RESOURCES, INC.
                        RESERVES SUPPLEMENTAL DATA
                               (Unaudited)

  2005 RESERVES RECONCILIATION SUMMARY
                                         United            U.S. and
  NATURAL GAS (Bcf)                      States   Canada    Canada  Trinidad
  Beginning Reserves                    2,382.5  1,298.3   3,680.8  1,309.4
  Revisions of previous estimates         (21.3)     3.1     (18.2)    26.7
  Purchases in place                       30.2      ---      30.2      ---
  Extensions, discoveries and other
   additions                              835.9    104.7     940.6      ---
  Sales in place                          (11.8)     ---     (11.8)     ---
  Production                             (267.4)   (83.3)   (350.7)   (84.5)

  Ending Reserves                       2,948.1  1,322.8   4,270.9  1,251.6

  LIQUIDS (MMBbls) (A)
  Beginning Reserves                       75.8      7.8      83.6     16.3
  Revisions of previous estimates           3.6      1.3       4.9     (1.4)
  Purchases in place                        1.3      ---       1.3      ---
  Extensions, discoveries and other
   additions                               14.0      0.9      14.9      ---
  Sales in place                           (0.4)     ---      (0.4)     ---
  Production                              (10.2)    (1.2)    (11.4)    (1.7)

  Ending Reserves                          84.1      8.8      92.9     13.2

  NATURAL GAS EQUIVALENTS (Bcfe)
  Beginning Reserves                    2,837.2  1,344.9   4,182.1  1,407.0
  Revisions of previous estimates          (0.1)    11.3      11.2     18.1
  Purchases in place                       38.2      ---      38.2      ---
  Extensions, discoveries and other
   additions                              920.0    110.2   1,030.2      ---
  Sales in place                          (14.2)     ---     (14.2)     ---
  Production                             (328.7)   (90.7)   (419.4)   (94.4)

  Ending Reserves                       3,452.4  1,375.7   4,828.1  1,330.7


   Net Proved Developed Reserves (Bcfe)
     At December 31, 2004               2,218.5  1,114.7   3,333.2    826.2
     At December 31, 2005               2,509.9  1,192.9   3,702.8    750.7

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



  2005 EXPLORATION AND DEVELOPMENT EXPENDITURES (In Millions)

  Acquisition Cost of Unproved
   Properties                            $102.7    $24.3    $127.0     $4.5
  Exploration Costs                       286.9     42.4     329.3     19.9
  Development Costs                       983.5    276.6   1,260.1     25.8

  Total Drilling                        1,373.1    343.3   1,716.4     50.2

  Acquisition Cost of Proved
   Properties                              55.5      0.5      56.0      ---

  Total                                 1,428.6    343.8   1,772.4     50.2

  Proceeds from Sales in Place            (49.6)    (3.4)    (53.0)     ---

  Net Expenditures                     $1,379.0   $340.4  $1,719.4    $50.2

  Asset Retirement Costs                   $8.3    $10.7     $19.0     $---



  2005 RESERVES RECONCILIATION SUMMARY
                                        United     Other     Total
  NATURAL GAS (Bcf)                     Kingdom    Int'l     Int'l    Total
  Beginning Reserves                      56.8       ---   1,366.2  5,047.0
  Revisions of previous estimates        (22.6)      ---       4.1    (14.1)
  Purchases in place                       ---       ---       ---     30.2
  Extensions, discoveries and other
   additions                              15.0       ---      15.0    955.6
  Sales in place                           ---       ---       ---    (11.8)
  Production                             (14.3)      ---     (98.8)  (449.5)

  Ending Reserves                         34.9       ---   1,286.5  5,557.4

  LIQUIDS (MMBbls) (A)
  Beginning Reserves                       0.1       ---      16.4    100.0
  Revisions of previous estimates          ---       ---      (1.4)     3.5
  Purchases in place                       ---       ---       ---      1.3
  Extensions, discoveries and other
   additions                               0.1       ---       0.1     15.0
  Sales in place                           ---       ---       ---     (0.4)
  Production                              (0.1)      ---      (1.8)   (13.2)

  Ending Reserves                          0.1       ---      13.3    106.2

  NATURAL GAS EQUIVALENTS (Bcfe)
  Beginning Reserves                      57.6       ---   1,464.6  5,646.7
  Revisions of previous estimates        (22.6)      ---      (4.5)     6.7
  Purchases in place                       ---       ---       ---     38.2
  Extensions, discoveries and other
   additions                              15.4       ---      15.4  1,045.6
  Sales in place                           ---       ---       ---    (14.2)
  Production                             (14.8)      ---    (109.2)  (528.6)

  Ending Reserves                         35.6       ---   1,366.3  6,194.4


   Net Proved Developed Reserves (Bcfe)
     At December 31, 2004                 57.6       ---     883.8  4,217.0
     At December 31, 2005                 29.5       ---     780.2  4,483.0

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



  2005 EXPLORATION AND DEVELOPMENT EXPENDITURES (In Millions)

  Acquisition Cost of Unproved
   Properties                             $---      $---      $4.5   $131.5
  Exploration Costs                       18.1       2.8      40.8    370.1
  Development Costs                       14.4       ---      40.2  1,300.3

  Total Drilling                          32.5       2.8      85.5  1,801.9

  Acquisition Cost of Proved Properties    ---       ---       ---     56.0

  Total                                   32.5       2.8      85.5  1,857.9

  Proceeds from Sales in Place             ---       ---       ---    (53.0)

  Net Expenditures                       $32.5      $2.8     $85.5 $1,804.9

  Asset Retirement Costs                  $0.8      $---      $0.8    $19.8

 

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

Media and Investors
Elizabeth M. Ivers
(713) 651-7132

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