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EOG Resources Reports First Quarter 2006 Results
* United States Natural Gas Production Increases By 10 Percent Over First Quarter 2005
* Announces Significant North Louisiana Natural Gas Discovery
PRNewswire-FirstCall
HOUSTON

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FOR IMMEDIATE RELEASE: Thursday, May 4, 2006

EOG Resources, Inc. (EOG) today reported first quarter 2006 net income available to common of $424.8 million, or $1.73 per share. This compares to first quarter 2005 net income available to common of $200.8 million, or $0.83 per share.

The results for the first quarter 2006 included a previously disclosed $107.0 million ($68.8 million after tax, or $0.28 per share) gain on the mark- to-market of financial commodity price transactions. During the quarter, the net cash realized related to financial commodity contracts was $30.1 million ($19.3 million after tax, or $0.08 per share). Consistent with some analysts' practice of matching realizations to settlement months, adjusted non-GAAP net income available to common for the quarter was $375.3 million, or $1.53 per share. Last year's first quarter results included a $0.9 million ($0.6 million after tax, or less than $0.01 per share) loss on the mark-to-market of financial commodity price transactions. The net cash inflow from the settlement of financial commodity price transactions was $9.8 million ($6.4 million after tax, or $0.03 per share). Reflecting these items, first quarter 2005 adjusted non-GAAP net income available to common was $207.8 million, or $0.86 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.)

Operational Highlights

United States natural gas production increased 10 percent over the first quarter 2005 with particularly strong performance from EOG's Rocky Mountain, North Louisiana and Fort Worth operations.

In the Rocky Mountains' Uinta Basin in western Utah, natural gas production increased from ongoing drilling success and development activity in the Mesaverde. EOG plans to drill more than 170 wells this year in the Uinta, the majority on its 64,000 net acre position in the Natural Buttes/Chapita Wells areas of the basin. The company has more than doubled its drilling activity from three rigs that were operating in January to the current seven rig program.

In North Louisiana, EOG is participating in several high potential prospects in the Expanded Cotton Valley Play. EOG has a 50 percent working interest in the Marr 24 No. 1, which began natural gas production in February at an initial rate of 7.8 million cubic feet per day (MMcfd), gross. With its partners, EOG is running four rigs across the play.

Also in the Expanded Cotton Valley Play on trend with the prolific Vernon Field, EOG reported a natural gas discovery on the Eros prospect. Drilled to 14,000 feet, the Spillers No.18-1, in which EOG has a 50 percent working interest, encountered significant natural gas pay. Three separate zones were completed, each testing at rates between 3 and 9 MMcfd, gross. A fourth zone remains to be completed. EOG plans to pursue immediate development of the estimated 100 to 200 net billion cubic feet natural gas discovery. Another high impact prospect will be tested in this region later in the year.

EOG reported excellent drilling results from Johnson County in the Fort Worth Basin. In eastern Johnson County, EOG completed the Raam No. 2H, which began flowing to sales in mid-April at 9 MMcfd of natural gas. EOG has a 100 percent working interest in the well, which was drilled as a 500 foot offset location to the previously announced discovery, the Raam No. 1H. In western Johnson County, the Clements No. 1H, in which EOG has a 100 percent working interest, tested at 5 MMcfd of natural gas.

"EOG's first quarter natural gas production from the Fort Worth Basin Barnett Shale Play exceeded our expectations. Across our operations, we added multiple wells at strong production rates that contributed to EOG's robust first quarter U.S. natural gas production growth," said Mark G. Papa, Chairman and Chief Executive Officer.

Capital Structure

During the first quarter, EOG further reduced long-term debt outstanding to $933 million at March 31, 2006. At quarter end, cash on the balance sheet was $821 million for net debt of $112 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 16 percent at March 31, 2006, down from 19 percent at December 31, 2005.

"EOG continues to execute its game plan to consistently deliver high organic growth, with low debt and a vigorous rate of return," said Papa.

Conference Call Scheduled for May 5, 2006

An updated investor presentation and reconciliation schedules will be posted to the EOG website prior to the conference call.

EOG's first quarter 2006 conference call will be available via live audio webcast at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) Friday, May 5, 2006. To listen, log on to http://www.eogresources.com/ . The webcast will be archived on EOG's website through Friday, May 19, 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, 2005, 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
                                                         Ended March 31
                                                     2006             2005
  Net Operating Revenues                          $1,084.5           $688.2
  Net Income Available to Common                    $424.8           $200.8
  Net Income Per Share Available to
   Common
     Basic                                           $1.76            $0.85
     Diluted                                         $1.73            $0.83
  Average Number of Shares Outstanding
     Basic                                           241.1            237.3
     Diluted                                         245.9            242.1



                          SUMMARY INCOME STATEMENTS
                          (Unaudited; in thousands)

                                                          Quarter
                                                       Ended March 31
                                                    2006             2005
  Net Operating Revenues
     Wellhead Natural Gas                         $789,061         $543,106
     Wellhead Crude Oil, Condensate and
      Natural Gas Liquids                          184,718          144,536
     Gains (Losses) on Mark-to-Market
      Commodity Derivative Contracts               107,024             (940)
     Other, Net                                      3,733            1,454
       Total                                     1,084,536          688,156
  Operating Expenses
     Lease and Well                                 87,484           65,768
     Transportation Costs                           28,096           17,107
     Exploration Costs                              39,392           34,816
     Dry Hole Costs                                 10,726           14,582
     Impairments                                    22,773           12,172
     Depreciation, Depletion and
      Amortization                                 177,652          153,016
     General and Administrative                     36,291           28,687
     Taxes Other Than Income                        53,694           41,913
       Total                                       456,108          368,061
  Operating Income                                 628,428          320,095

  Other Income, Net                                 14,556            5,465

  Income Before Interest Expense and
   Income Taxes                                    642,984          325,560

  Interest Expense, Net                             13,153           13,957

  Income Before Income Taxes                       629,831          311,603

  Income Tax Provision                             203,124          108,900

  Net Income                                       426,707          202,703

  Preferred Stock Dividends                          1,858            1,858

  Net Income Available to Common                  $424,849         $200,845



                             EOG RESOURCES, INC.
                             OPERATING HIGHLIGHTS
                                 (Unaudited)

                                                            Quarter
                                                         Ended March 31
                                                    2006               2005
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcfd)
    United States                                    758                689
    Canada                                           229                234
      United States & Canada                         987                923
    Trinidad                                         283                205
    United Kingdom                                    34                 35
      Total                                        1,304              1,163

  Average Natural Gas Prices ($/Mcf)
    United States                                  $7.77              $5.97
    Canada                                          7.87               5.69
      United States & Canada Composite              7.79               5.90
    Trinidad                                        2.44               1.74
    United Kingdom                                 11.56               6.65
      Composite                                     6.72               5.19

  Crude Oil and Condensate Volumes
   (MBbld)
    United States                                   21.0               22.5
    Canada                                           2.6                2.5
      United States & Canada                        23.6               25.0
    Trinidad                                         5.4                4.1
    United Kingdom                                   0.2                0.2
      Total                                         29.2               29.3

  Average Crude Oil and Condensate
   Prices ($/Bbl)
    United States                                 $60.42             $48.79
    Canada                                         51.95              44.79
      United States & Canada Composite             59.48              48.39
    Trinidad                                       61.79              45.38
    United Kingdom                                 57.86              39.74
      Composite                                    59.90              47.91

  Natural Gas Liquids Volumes (MBbld)
    United States                                    7.3                5.5
    Canada                                           0.7                1.5
      Total                                          8.0                7.0

  Average Natural Gas Liquids Prices ($/Bbl)
    United States                                 $37.19             $29.28
    Canada                                         42.77              27.47
      Composite                                    37.69              28.89

  Natural Gas Equivalent Volumes (MMcfed)
    United States                                    927                857
    Canada                                           249                258
      United States & Canada                       1,176              1,115
    Trinidad                                         316                230
    United Kingdom                                    35                 36
      Total                                        1,527              1,381

  Total Bcfe Deliveries                            137.5              124.3



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


                                                 March 31,      December 31,
                                                   2006             2005

                                     ASSETS
  Current Assets
    Cash and Cash Equivalents                    $821,327          $643,811
    Accounts Receivable, Net                      627,667           762,207
    Inventories                                    76,638            63,215
    Assets from Price Risk Management
     Activities                                    88,385            11,415
    Deferred Income Taxes                             ---            24,376
    Other                                          50,741            58,214
         Total                                  1,664,758         1,563,238

  Oil and Gas Properties (Successful
   Efforts Method)                             11,742,417        11,173,389
    Less:  Accumulated Depreciation,
     Depletion and Amortization                (5,269,596)       (5,086,210)
        Net Oil and Gas Properties              6,472,821         6,087,179
  Other Assets                                    105,811           102,903
  Total Assets                                 $8,243,390        $7,753,320



                      LIABILITIES AND SHAREHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                             $673,914          $679,548
    Accrued Taxes Payable                         169,360           140,902
    Dividends Payable                              14,760             9,912
    Deferred Income Taxes                          36,228           164,659
    Current Portion of Long-Term Debt             124,075           126,075
    Other                                          49,188            50,945
         Total                                  1,067,525         1,172,041


  Long-Term Debt                                  808,667           858,992
  Other Liabilities                               289,850           283,407
  Deferred Income Taxes                         1,333,988         1,122,588

  Shareholders' Equity
    Preferred Stock, $0.01 Par,
     10,000,000 Shares Authorized:
     Series B, 100,000 Shares Issued,
     Cumulative, $100,000,000 Liquidation
     Preference                                    99,121            99,062
    Common Stock, $0.01 Par, 640,000,000
     Shares Authorized and
     249,460,000 Shares Issued                    202,495           202,495
    Additional Paid In Capital                     60,905            84,705
    Unearned Compensation                             ---           (36,246)
    Accumulated Other Comprehensive Income        175,743           177,137
    Retained Earnings                           4,330,772         3,920,483
    Common Stock Held in Treasury,
     6,864,234 Shares at March 31, 2006
     and 7,385,862 Shares at
     December 31, 2005                           (125,676)         (131,344)
            Total Shareholders' Equity          4,743,360         4,316,292
  Total Liabilities and Shareholders' Equity   $8,243,390        $7,753,320



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

                                                          Quarter
                                                       Ended March 31
                                                   2006              2005
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net
   Cash Provided by Operating Activities:
    Net Income                                   $426,707          $202,703
    Items Not Requiring Cash
       Depreciation, Depletion and Amortization   177,652           153,016
       Impairments                                 22,773            12,172
       Stock-Based Compensation Expenses            9,003             2,719
       Deferred Income Taxes                      106,326            44,928
       Other, Net                                  (4,444)           (1,462)
    Dry Hole Costs                                 10,726            14,582
    Mark-to-Market Commodity Derivative
     Contracts
       Total (Gains) Losses                      (107,024)              940
       Realized Gains                              30,054             9,807
    Tax Benefits From Stock Options Exercised         ---             9,348
    Other, Net                                      4,299            (2,113)
    Changes in Components of Working
     Capital and Other Liabilities
       Accounts Receivable                        135,150             5,518
       Inventories                                (13,370)           (8,701)
       Accounts Payable                            (9,535)          (26,352)
       Accrued Taxes Payable                       29,298            41,807
       Other Liabilities                            5,429             3,666
       Other, Net                                  (3,090)           (6,459)
    Changes in Components of Working
     Capital Associated with
     Investing and Financing Activities           (33,187)           25,720
  Net Cash Provided by Operating Activities       786,767           481,839

  Investing Cash Flows
    Additions to Oil and Gas Properties          (589,048)         (363,760)
    Proceeds from Sales of Assets                   2,741            19,752
    Changes in Components of Working
     Capital Associated with
     Investing Activities                          33,288           (25,671)
    Other, Net                                     (5,253)           (7,394)
  Net Cash Used in Investing Activities          (558,272)         (377,073)

  Financing Cash Flows
    Net Commercial Paper and Line of
     Credit Borrowings                                ---            42,175
    Long-Term Debt Repayments                     (52,325)              ---
    Dividends Paid                                (11,432)           (8,880)
    Excess Tax Benefits from Stock-Based
     Compensation Expenses                          7,177               ---
    Proceeds from Stock Options
     Exercised                                      6,129            14,264
    Changes in Components of Working
     Capital Associated with
     Financing Activities                            (101)              (49)
  Net Cash (Used in) Provided by
   Financing Activities                           (50,552)           47,510

  Effect of Exchange Rate Changes on Cash            (427)              129

  Increase in Cash and Cash Equivalents           177,516           152,405
  Cash and Cash Equivalents at Beginning
   of Period                                      643,811            20,980
  Cash and Cash Equivalents at End of
   Period                                        $821,327          $173,385



                           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 first quarter reported Net Income Available to Common to reflect actual cash realized from previously disclosed gas hedges by eliminating the unrealized mark-to-market gains or losses from these transactions. 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. EOG management uses this information for comparative purposes within the industry.

                                                         Quarter
                                                      Ended March 31
                                                  2006               2005

  Reported Net Income Available to Common       $424,849          $200,845

  Mark-to-Market (MTM) Commodity
   Derivative Contracts Impact
    Total (Gains) Losses                        (107,024)              940
    Realized Gains                                30,054             9,807
       Subtotal                                  (76,970)           10,747

    After Tax MTM Impact                         (49,530)            6,916


  Adjusted Non-GAAP Net Income
   Available to Common                          $375,319          $207,761

  Adjusted Non-GAAP Net Income Per
   Share Available to Common
    Basic                                          $1.56             $0.88
    Diluted                                        $1.53             $0.86

  Average Number of Shares Outstanding
    Basic                                        241,118           237,293
    Diluted                                      245,923           242,114



                           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 periods ended March 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
                                                       Ended March 31
                                                   2006              2005
  Net Cash Provided by Operating
   Activities (GAAP)                             $786,767          $481,839

  Adjustments
     Exploration Costs                             39,392            34,816
     Changes in Components of Working
      Capital and Other Liabilities
       Accounts Receivable                       (135,150)           (5,518)
       Inventories                                 13,370             8,701
       Accounts Payable                             9,535            26,352
       Accrued Taxes Payable                      (29,298)          (41,807)
       Other Liabilities                           (5,429)           (3,666)
       Other, Net                                   3,090             6,459
     Changes in Components of Working
      Capital Associated with Investing
      and Financing Activities                     33,187           (25,720)
     Preferred Stock Dividends                     (1,858)           (1,858)

  Discretionary Cash Flow Available to
   Common (Non-GAAP)                             $713,606          $479,598



                           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 data)

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.

                                                December 31,       March 31,
                                                   2005               2006

    Total Shareholders' Equity - (a)              $4,316             $4,743

    Current and Long-Term Debt                       985                933
    Less: Cash                                      (644)              (821)
    Net Debt (Non-GAAP) - (b)                        341                112

    Total Capitalization (Non-GAAP) -
     (a) + (b)                                    $4,657             $4,855

    Net Debt-to-Total Capitalization -
     (b) / [(a) + (b)]                                7%                 2%

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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