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EOG Resources Reports First Quarter 2007 Results
* United States Natural Gas Production Increases by 21 Percent Over First Quarter 2006
* Total Company Production on Track to Meet 2007 Growth Target of 10 Percent
PRNewswire-FirstCall
HOUSTON

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FOR IMMEDIATE RELEASE: Monday, April 30, 2007

EOG Resources, Inc. (EOG) today reported first quarter 2007 net income available to common of $216.8 million, or $0.88 per share. This compares to first quarter 2006 net income available to common of $424.8 million, or $1.73 per share.

The results for the first quarter 2007 included a previously disclosed $39.8 million ($25.6 million after tax, or $0.11 per share) loss on the mark- to-market of financial commodity price transactions. During the quarter, the net cash realized related to financial commodity contracts was $47.3 million ($30.4 million after tax, or $0.12 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 $272.8 million, or $1.11 per share. Last year's first quarter results included a $107.0 million ($68.8 million after tax, or $0.28 per share) gain on the mark-to-market of financial commodity price transactions. The net cash inflow from the settlement of financial commodity price transactions was $30.1 million ($19.3 million after tax, or $0.08 per share). Reflecting these items, first quarter 2006 adjusted non-GAAP net income available to common was $375.3 million, or $1.53 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 21 percent over the first quarter 2006 led by continued strong results and production increases from the Fort Worth Basin Barnett Shale. Other growth drivers during the first quarter were EOG's operations in East Texas, South Texas, the Rockies and Mid Continent.

"Based on our growing success in the Barnett Shale and our other activities in North America, we are on track to achieve our target of 10 percent total company production growth in 2007," said Mark G. Papa, Chairman and Chief Executive Officer. "We think it is a significant operational achievement for a company the size of EOG to grow U.S. production organically at double digit rates as we are doing."

In Johnson County, where EOG is furthest along in the development of its Barnett Shale assets, the Fowler Unit #1H, the best well that EOG has completed in the play to date, began production at a rate of 16 million cubic feet per day (MMcfd) of natural gas in March. EOG has a 100 percent working interest in the well, which is located in the eastern part of the county. Also in Johnson County, three Hardcastle Unit wells, the #8H, #9H and #10H, were drilled with 35 acre spacing between them. The wells, in which EOG has a 100 percent working interest, each began producing natural gas at rates varying from 5.8 to 6.7 MMcfd.

Outside of Johnson County in Erath, Hood, Jack and Parker Counties where EOG has increased its drilling activity, a number of wells were recently turned to sales. In Erath County, the Houston Ranch #16H, in which EOG has a 97 percent working interest, began producing natural gas in March at a rate of 1.7 MMcfd. Four Hood County wells, the Black Ranch #14H, the Branch Farms #1H and the Mabery A Unit #1H and B Unit #1H, were drilled during the first quarter and completed to sales in April at initial production rates that varied from 1.4 to 2.6 MMcfd. EOG has an approximate 80 percent working interest in these wells. In Parker County, EOG has a 100 percent working interest in the KTV Betzel Unit #3H, which began initial production in April at 2.0 MMcfd.

"Operating results from the Fort Worth Barnett Shale continue to meet or exceed every target we have set," said Papa. "As we maintain our focus on gaining operational expertise, our results continue to improve as well."

In South Texas, EOG completed two strong Lobo wells in Zapata County. The Barrocito #6, in which EOG has a 100 percent working interest, was drilled to 11,000 feet. The well, which began initial natural gas production at a rate of 14 MMcfd, sets up the potential for a significant number of offset drilling locations. Also in Zapata County, the Slator Ranch W-4, which was drilled in the Stirling Field, flowed at an initial production rate of 13.8 MMcfd of natural gas and 120 barrels of oil per day, gross. EOG has an 88 percent working interest in the well.

"In the past month, we have seen a strengthening in natural gas prices for the second half of the year that falls in-line with our internal expectations. Based on the current commodity environment, we plan to execute our $3.4 billion capital expenditure program in 2007," said Papa.

Capital Structure

Recognizing the company's strong financial position, Standard and Poor's Credit Rating Services upgraded EOG to A- after the end of the first quarter.

"2007 is shaping up to be an active drilling year with good organic production growth. Combined with our continued focus on returns and cost control, we expect to end the year as we began, with a very strong balance sheet," noted Papa.

Conference Call Scheduled for May 1, 2007

EOG's first quarter 2007 conference call will be available via live audio webcast at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) Tuesday, May 1, 2007. To listen, log on to http://www.eogresources.com/ . The webcast will be archived on EOG's website through Tuesday, May 15, 2007.

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 availability of compression uplift 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, 2006, 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
                                                  2007               2006
  Net Operating Revenues                         $875.2            $1,084.5
  Net Income Available to Common                 $216.8              $424.8
  Net Income Per Share Available to Common
     Basic                                        $0.89               $1.76
     Diluted                                      $0.88               $1.73
  Average Number of Shares Outstanding
     Basic                                        242.8               241.1
     Diluted                                      246.7               245.9



                        SUMMARY INCOME STATEMENTS
                        (Unaudited; in thousands)

                                                          Quarter
                                                       Ended March 31
                                                  2007               2006
  Net Operating Revenues
     Wellhead Natural Gas                      $735,642            $789,061
     Wellhead Crude Oil, Condensate
      and Natural Gas Liquids                   174,864             184,718
    (Losses) Gains on Mark-to-Market
     Commodity Derivative Contracts             (39,801)            107,024
     Other, Net                                   4,508               3,733
       Total                                    875,213           1,084,536
  Operating Expenses
     Lease and Well                             104,325              87,484
     Transportation Costs                        37,748              28,096
     Exploration Costs                           26,384              39,392
     Dry Hole Costs                              16,810              10,726
     Impairments                                 24,042              22,773
     Depreciation, Depletion and
      Amortization                              244,342             177,652
     General and Administrative                  43,879              36,291
     Taxes Other Than Income                     40,648              53,694
       Total                                    538,178             456,108
  Operating Income                              337,035             628,428

  Other Income, Net                               5,924              14,556

  Income Before Interest Expense and
   Income Taxes                                 342,959             642,984

  Interest Expense, Net                           7,638              13,153

  Income Before Income Taxes                    335,321             629,831

  Income Tax Provision                          117,654             203,124

  Net Income                                    217,667             426,707

  Preferred Stock Dividends                         875               1,858

  Net Income Available to Common               $216,792            $424,849



                           EOG RESOURCES, INC.
                           OPERATING HIGHLIGHTS
                               (Unaudited)

                                                          Quarter
                                                       Ended March 31
                                                   2007               2006
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcfd)
    United States                                   915                 758
    Canada                                          222                 229
      United States & Canada                      1,137                 987
    Trinidad                                        253                 283
    United Kingdom                                   30                  34
      Total                                       1,420               1,304

  Average Natural Gas Prices ($/Mcf)
    United States                                 $6.42               $7.77
    Canada                                         6.43                7.87
      United States & Canada Composite             6.42                7.79
    Trinidad                                       2.81                2.44
    United Kingdom                                 5.55               11.56
      Composite                                    5.76                6.72

  Crude Oil and Condensate Volumes (MBbld)
    United States                                  21.9                21.0
    Canada                                          2.5                 2.6
      United States & Canada                       24.4                23.6
    Trinidad                                        4.3                 5.4
    United Kingdom                                  0.1                 0.2
      Total                                        28.8                29.2

  Average Crude Oil and Condensate
   Prices ($/Bbl)
    United States                                $53.76              $60.42
    Canada                                        51.76               51.95
      United States & Canada Composite            53.55               59.48
    Trinidad                                      59.91               61.79
    United Kingdom                                52.87               57.86
      Composite                                   54.51               59.90

  Natural Gas Liquids Volumes (MBbld)
    United States                                   9.5                 7.3
    Canada                                          1.1                 0.7
      Total                                        10.6                 8.0

  Average Natural Gas Liquids Prices ($/Bbl)
    United States                                $37.07              $37.19
    Canada                                        36.37               42.77
      Composite                                   37.00               37.69

  Natural Gas Equivalent Volumes (MMcfed)
    United States                                 1,104                 927
    Canada                                          243                 249
      United States & Canada                      1,347               1,176
    Trinidad                                        279                 316
    United Kingdom                                   31                  35
      Total                                       1,657               1,527

  Total Bcfe                                      149.1               137.5



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

                                                March 31,       December 31,
                                                  2007               2006

                                  ASSETS
  Current Assets
    Cash and Cash Equivalents                  $141,700            $218,255
    Accounts Receivable, Net                    734,231             754,134
    Inventories                                 122,461             113,591
    Assets from Price Risk Management
     Activities                                  41,330             130,612
    Income Taxes Receivable                      42,202              94,311
    Deferred Income Taxes                         9,767                 ---
    Other                                        36,415              39,177
         Total                                1,128,106           1,350,080

  Oil and Gas Properties (Successful
   Efforts Method)                           14,793,485          13,893,851
    Less:  Accumulated Depreciation,
     Depletion and Amortization              (6,212,647)         (5,949,804)
        Net Oil and Gas Properties            8,580,838           7,944,047
  Other Assets                                  117,910             108,033
  Total Assets                               $9,826,854          $9,402,160



                     LIABILITIES AND SHAREHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                           $924,644            $896,572
    Accrued Taxes Payable                        80,194             130,984
    Dividends Payable                            22,030              14,718
    Deferred Income Taxes                        21,071             144,615
    Other                                        50,607              68,123
         Total                                1,098,546           1,255,012


  Long-Term Debt                                820,042             733,442
  Other Liabilities                             315,102             300,907
  Deferred Income Taxes                       1,747,500           1,513,128

  Shareholders' Equity
    Preferred Stock, $0.01 Par,
     10,000,000 Shares Authorized:
     Series B, Cumulative, $1,000
     Liquidation Preference Per Share,
     53,260 Shares Outstanding at
     March 31, 2007 and December 31, 2006        52,919              52,887
    Common Stock, $0.01 Par, 640,000,000
     Shares Authorized and 249,460,000
     Shares Issued                              202,495             202,495
    Additional Paid In Capital                  140,642             129,986
    Accumulated Other Comprehensive
     Income                                     194,628             176,704
    Retained Earnings                         5,356,647           5,151,034
    Common Stock Held in Treasury,
     4,979,921 Shares at March 31, 2007
     and 5,724,959 Shares at
     December 31, 2006                         (101,667)           (113,435)
            Total Shareholders' Equity        5,845,664           5,599,671
  Total Liabilities and Shareholders'
   Equity                                    $9,826,854          $9,402,160



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


                                                          Quarter
                                                       Ended March 31
                                                  2007               2006
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net
   Cash Provided by Operating Activities:
    Net Income                                 $217,667            $426,707
    Items Not Requiring Cash
       Depreciation, Depletion and
        Amortization                            244,342             177,652
       Impairments                               24,042              22,773
       Stock-Based Compensation Expenses         14,211               9,003
       Deferred Income Taxes                     96,999             106,326
       Other, Net                                (1,695)             (4,444)
    Dry Hole Costs                               16,810              10,726
    Mark-to-Market Commodity Derivative
     Contracts
       Total Losses (Gains)                      39,801            (107,024)
       Realized Gains                            47,268              30,054
    Other, Net                                   10,219               4,299
    Changes in Components of Working
     Capital and Other Assets and
     Liabilities
       Accounts Receivable                       22,935             135,150
       Inventories                               (8,844)            (13,370)
       Accounts Payable                          23,431              (9,535)
       Accrued Taxes Payable                      1,967              29,298
       Other Assets                              (3,623)              7,385
       Other Liabilities                        (14,356)             (5,046)
    Changes in Components of Working
     Capital Associated with Investing
     and Financing Activities                   (32,694)            (33,187)
  Net Cash Provided by Operating
   Activities                                   698,480             786,767

  Investing Cash Flows
    Additions to Oil and Gas Properties        (867,936)           (589,048)
    Proceeds from Sales of Assets                 2,939               2,741
    Changes in Components of Working
     Capital Associated with Investing
     Activities                                  32,959              33,288
    Other, Net                                  (26,173)             (5,253)
  Net Cash Used in Investing Activities        (858,211)           (558,272)

  Financing Cash Flows
    Net Commercial Paper and Revolving
     Credit Facility Borrowings                 116,600                 ---
    Long-Term Debt Repayments                   (30,000)            (52,325)
    Dividends Paid                              (15,522)            (11,432)
    Excess Tax Benefits from Stock-Based
     Compensation Expenses                        7,409               7,177
    Proceeds from Stock Options
     Exercised and Employee Stock
     Purchase Plan                                5,276               6,129
    Other, Net                                     (265)               (101)
  Net Cash Provided by (Used in)
   Financing Activities                          83,498             (50,552)

  Effect of Exchange Rate Changes on Cash          (322)               (427)

  (Decrease) Increase in Cash and Cash
   Equivalents                                  (76,555)            177,516
  Cash and Cash Equivalents at Beginning
   of Period                                    218,255             643,811
  Cash and Cash Equivalents at End of
   Period                                      $141,700            $821,327



                           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 periods ended March 31 reported
  Net Income Available to Common (GAAP) to reflect actual cash realized from
  oil and 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
                                                 2007                2006

  Reported Net Income Available to
   Common (GAAP)                               $216,792            $424,849

  Mark-to-Market (MTM) Commodity
   Derivative Contracts Impact
    Total Losses (Gains)                         39,801            (107,024)
    Realized Gains                               47,268              30,054
       Subtotal                                  87,069             (76,970)

    After Tax MTM Impact                         56,029             (49,530)

  Adjusted Net Income Available to
   Common (Non-GAAP)                           $272,821            $375,319

  Adjusted Net Income Per Share
   Available to Common (Non-GAAP)
    Basic                                         $1.12               $1.56
    Diluted                                       $1.11               $1.53

  Average Number of Shares Outstanding
    Basic                                       242,763             241,118
    Diluted                                     246,677             245,923



                           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
  (excluding Stock-Based Compensation Expenses), Changes in Components of
  Working Capital, Other Assets and Liabilities and Preferred Stock
  Dividends.  EOG management uses this information for comparative purposes
  within the industry.

                                                          Quarter
                                                       Ended March 31
                                                 2007                2006
  Net Cash Provided by Operating
   Activities (GAAP)                           $698,480            $786,767

  Adjustments
     Exploration Costs (excluding
      Stock-Based Compensation
      Expenses)                                  23,345              37,665
     Changes in Components of Working
      Capital and Other Assets and
      Liabilities
       Accounts Receivable                      (22,935)           (135,150)
       Inventories                                8,844              13,370
       Accounts Payable                         (23,431)              9,535
       Accrued Taxes Payable                     (1,967)            (29,298)
       Other Assets                               3,623              (7,385)
       Other Liabilities                         14,356               5,046
     Changes in Components of Working
      Capital Associated with Investing
      and Financing Activities                   32,694              33,187
     Preferred Stock Dividends                     (875)             (1,858)

  Discretionary Cash Flow Available to
   Common (Non-GAAP)                           $732,134            $711,879

 

Investors
Maire A. Baldwin
(713) 651-6EOG (651-6364)

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

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