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EOG Resources Reports Second Quarter 2007 Results, Increases Full Year 2007 Production Growth Target to 11.5 Percent
- High Rate Oil Wells Announced in North Dakota
- Improved Completions Reflected in Johnson County Well Results
- Plans to Divest Shallow Natural Gas Assets in Appalachia
PRNewswire-FirstCall
HOUSTON

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FOR IMMEDIATE RELEASE: Thursday, August 2, 2007

EOG Resources, Inc. (EOG) today reported second quarter 2007 net income available to common of $306.1 million, or $1.24 per share. This compares to second quarter 2006 net income available to common of $329.6 million, or $1.34 per share.

The results for the second quarter 2007 included a previously disclosed $44.1 million ($28.4 million after tax, or $0.12 per share) net gain on the mark-to-market of financial commodity price transactions. During the quarter, the net cash realized related to financial commodity contracts was $18.6 million ($12.0 million after tax, or $0.05 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 $289.7 million, or $1.17 per share. Adjusted non-GAAP net income available to common for the second quarter 2006 was $285.3 million, or $1.16 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.)

2007 Production Growth Target Increased

"Based on the increased momentum of our production growth, we are raising our full year 2007 total company growth target from 10 to 11.5 percent," said Mark G. Papa, Chairman and Chief Executive Officer. "One hundred percent of this growth is organic, which is significant for a company our size."

The increased 2007 production growth target is primarily driven by higher than anticipated United States crude oil and natural gas liquids (NGL) production for the second half of the year. Outstanding results from recent horizontal oil wells drilled in the North Dakota Bakken Play have boosted EOG's confidence in increasing oil production targets. In the western counties of the Fort Worth Basin Barnett Shale, recent wells have produced natural gas yielding stronger than anticipated NGL production.

Operational Highlights

EOG's natural gas production in the United States increased approximately 24 percent for the second quarter over the same period a year ago with particularly robust growth from the Fort Worth Basin Barnett Shale, East Texas, Rocky Mountain and Mid Continent areas.

In the Barnett Shale, EOG continues to make improvements in the application of well completion technology that has led to higher initial production rates and potentially higher recovery efficiencies, particularly in Johnson County. In East Texas, a new natural gas processing facility has provided additional capacity for EOG's natural gas production from the Branton Field where eight wells are producing approximately 14 million cubic feet per day (MMcfd), net.

Outside of the Barnett Shale, total production in the United States and Canada increased approximately 7 percent for the first six months of 2007 as compared to the same period a year ago, in part due to a 12 percent increase in United States crude oil and condensate production driven by drilling programs in North Dakota, Texas and Kansas. EOG is applying horizontal drilling technology to oil plays in both North Dakota and the Mid Continent. Currently operating a four-rig drilling program in the North Dakota Bakken, EOG plans to add an additional rig in the fourth quarter. In the Mid Continent area, recent success has set up several offset drilling locations for the second half of 2007.

While maintaining an active exploration effort in the pursuit of shale gas opportunities in Appalachia, EOG announced its intention to sell its shallow gas assets and associated 18 MMcfd of current natural gas production in the area. The sale is expected to close in either late 2007 or early 2008. Proceeds from the sale will be used to fund EOG's core portfolio and resource plays that have greater potential for production and reserve growth. Following the divestiture, EOG will continue to target an average of 9 percent total company production growth for 2008.

  Well Highlights
    North Dakota Bakken

    -- Zacher 1-24H - EOG has a 75 percent working interest in the Zacher
       1-24H that was completed in June with a peak production rate of 1,774
       barrels of oil per day (Bopd), gross.
    -- Hoff 1-10H - EOG has a 75 percent working interest in the Hoff 1-10H,
       which began flowing to sales in June at a peak rate of 2,034 Bopd,
       gross.
    -- N&D 1-05H - EOG holds a 67 percent working interest in the N&D 1-05H,
       which was completed in July at an initial peak production rate of
       1,610 Bopd, gross.


    Fort Worth Basin Barnett Shale - Johnson, Palo Pinto and Hood Counties

    -- Hughes Unit #1H - EOG completed the Hughes Unit #1H during the second
       quarter.  The well, located in central Johnson County, flowed to
       sales at a peak production rate of 12 MMcfd, gross.  EOG has an 86
       percent working interest in the well.
    -- Eagle Ford C Unit #4H and #5H - Drilled in the eastern part of
       Johnson County, the two wells were completed in June with initial
       production rates of 6.7 and 7.7 MMcfd, respectively.  EOG has a 100
       percent working interest in both wells.
    -- Maples Unit #1H, #2H and #3H - EOG completed the three Maples Unit
       wells during July in eastern Johnson County.  EOG has a 54 percent
       working interest in these three wells that began flowing to sales at
       initial production rates ranging from 5.8 to 9.9 MMcfd, gross.
    -- McInroe A Unit #1H - EOG has a 100 percent working interest in this
       western extension well in Palo Pinto County.  The McInroe A Unit #1H,
       which tested at a rate of 2.6 MMcfd, will be connected to sales
       during the third quarter.
    -- Mabery A and B Unit #1H - Drilled in EOG's western extension acreage
       in Hood County, the wells began initial production in July at 1.8 and
       2.1 MMcfd, gross, respectively.  EOG has a 78 percent working
       interest in both the Mabery A and B Unit #1H.


    Mid Continent

    -- Willis 23 #1 - EOG's second oil discovery from the St. Louis
       Formation in Kansas, the Willis 23 #1, began flowing to sales at a
       rate of 800 Bopd.  EOG has a 100 percent working interest in the
       well.
    -- Cooper 358 #1H - A horizontal Cleveland well in the Texas Panhandle,
       the Cooper 358 #1H tested at 3.0 MMcfd and 700 Bopd.  EOG has a 100
       percent working interest in the well.


  Conference Call Scheduled for August 3, 2007

EOG's second quarter 2007 conference call will be available via live audio webcast at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) Friday, August 3, 2007. To listen, log on to http://www.eogresources.com/. The webcast will be archived on EOG's website through Friday, August 17, 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,
     interest rates and financial market conditions;
  -- the extent and effect of any hedging activities engaged in by EOG;
  -- the timing and impact of liquefied natural gas imports;
  -- changes in demand or prices for ammonia or methanol;
  -- 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 ability to achieve production levels from existing and future oil
     and gas development projects due to operating hazards, drilling risks
     and the inherent uncertainties in predicting oil and gas reservoir
     performance;
  -- the availability and cost of drilling rigs, experienced drilling crews,
     tubular steel and other materials, equipment and services used in
     drilling and well completions;
  -- the availability, terms and timing of mineral licenses and leases and
     governmental and other permits and rights of way;
  -- access to surface locations for drilling and production facilities;
  -- the availability and capacity of gathering, processing and pipeline
     transportation facilities;
  -- 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 and the enactment of new
     government policies, legislation and regulations;
  -- acts of war and terrorism and responses to these acts; and
  -- weather, including weather-related delays in the installation of
     gathering and production facilities.

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 (SEC) 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               Six Months
                                  Ended June 30,         Ended June 30,
                                   2007       2006       2007        2006
  Net Operating Revenues         $1,055.2    $919.1    $1,930.5    $2,003.6
  Net Income Available to
   Common                          $306.1    $329.6      $522.9      $754.4
  Net Income Per Share
   Available to Common
    Basic                           $1.26     $1.36       $2.15       $3.13
    Diluted                         $1.24     $1.34       $2.12       $3.07
  Average Number of Common
   Shares
    Basic                           243.2     241.6       243.0       241.4
    Diluted                         247.3     245.9       247.0       245.8



                          SUMMARY INCOME STATEMENTS
                          (Unaudited; in thousands)

                                Quarter                  Six Months
                            Ended June 30,             Ended June 30,
                             2007        2006         2007          2006
  Net Operating
   Revenues
    Wellhead Natural
     Gas                   $790,456    $642,969    $1,526,098    $1,432,030
    Wellhead Crude Oil,
     Condensate and
     Natural Gas
     Liquids                218,696     185,036       393,560       369,754
    Gains on Mark-to-
     Market Commodity
     Derivative
     Contracts               44,103      91,022         4,302       198,046
    Other, Net                1,988          61         6,496         3,794
      Total               1,055,243     919,088     1,930,456     2,003,624
  Operating Expenses
    Lease and Well          123,188      87,287       227,513       174,771
    Transportation
     Costs                   41,591      25,913        79,339        54,009
    Exploration Costs        41,216      35,313        67,600        74,705
    Dry Hole Costs           11,816      14,668        28,626        25,394
    Impairments              20,804      22,680        44,846        45,453
    Depreciation,
     Depletion and
     Amortization           259,780     192,928       504,122       370,580
    General and
     Administrative          47,183      38,607        91,062        74,898
    Taxes Other Than
     Income                  62,047      46,858       102,695       100,552
      Total                 607,625     464,254     1,145,803       920,362

  Operating Income          447,618     454,834       784,653     1,083,262

  Other Income, Net          29,069      21,844        34,993        36,400

  Income Before
   Interest Expense and
   Income Taxes             476,687     476,678       819,646     1,119,662

  Interest Expense, Net      10,818      12,384        18,456        25,537

  Income Before Income
   Taxes                    465,869     464,294       801,190     1,094,125

  Income Tax Provision      158,816     132,877       276,470       336,001

  Net Income                307,053     331,417       524,720       758,124

  Preferred Stock
   Dividends                    990       1,858         1,865         3,716

  Net Income Available
   to Common               $306,063    $329,559      $522,855      $754,408



                           EOG RESOURCES, INC.
                           OPERATING HIGHLIGHTS
                               (Unaudited)

                                          Quarter            Six Months
                                       Ended June 30,      Ended June 30,
                                        2007      2006      2007      2006
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcfd) (A)
     United States                        960       776       938       767
     Canada                               232       225       227       227
       United States & Canada           1,192     1,001     1,165       994
     Trinidad                             250       265       251       274
     United Kingdom                        22        25        26        30
       Total                            1,464     1,291     1,442     1,298

  Average Natural Gas Prices ($/Mcf)
   (B)
     United States                      $6.80     $6.33     $6.61     $7.04
     Canada                              6.70      6.28      6.57      7.08
       United States & Canada
        Composite                        6.78      6.32      6.60      7.04
     Trinidad                            2.04      2.18      2.42      2.31
     United Kingdom                      4.35      6.34      5.04      9.32
       Composite                         5.93      5.47      5.85      6.10

  Crude Oil and Condensate Volumes
   (MBbld) (A)
     United States                       23.4      19.5      22.6      20.2
     Canada                               2.4       2.4       2.5       2.5
       United States & Canada            25.8      21.9      25.1      22.7
     Trinidad                             4.0       4.8       4.2       5.2
     United Kingdom                       0.1       0.1       0.1       0.1
       Total                             29.9      26.8      29.4      28.0

  Average Crude Oil and Condensate
   Prices ($/Bbl) (B)
     United States                     $61.38    $67.69    $57.75    $63.70
     Canada                             60.08     62.62     55.88     57.12
       United States & Canada
        Composite                       61.26     67.06     57.56     62.92
     Trinidad                           75.16     67.47     67.32     64.45
     United Kingdom                     68.82     65.80     59.61     61.04
       Composite                        63.15     67.13     58.96     63.21

  Natural Gas Liquids Volumes
   (MBbld) (A)
     United States                       10.4       9.0      10.0       8.1
     Canada                               1.1       0.6       1.1       0.7
       Total                             11.5       9.6      11.1       8.8

  Average Natural Gas Liquids Prices
   ($/Bbl) (B)
     United States                     $45.35    $41.02    $41.40    $39.32
     Canada                             42.30     46.55     39.39     44.56
       Composite                        45.04     41.38     41.20     39.72

  Natural Gas Equivalent Volumes
   (MMcfed) ©
     United States                      1,163       947     1,134       937
     Canada                               253       244       248       246
       United States & Canada           1,416     1,191     1,382     1,183
     Trinidad                             274       293       276       305
     United Kingdom                        23        26        27        30
       Total                            1,713     1,510     1,685     1,518

  Total Bcfe ©                        155.8     137.4     305.0     274.8

  (A) Million cubic feet per day or thousand barrels per day, as applicable.
  (B) Dollars per thousand cubic feet or per barrel, as applicable.
  © Million cubic feet equivalent per day or billion cubic feet
      equivalent, as applicable; includes natural gas, crude oil, condensate
      and natural gas liquids.  Natural gas equivalents are determined using
      the ratio of 6.0 thousand cubic feet of natural gas to 1.0 barrel of
      crude oil, condensate or natural gas liquids.



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


                                                June 30,        December 31,
                                                  2007               2006

                                     ASSETS
  Current Assets
    Cash and Cash Equivalents                     $58,534          $218,255
    Accounts Receivable, Net                      741,907           754,134
    Inventories                                   116,300           113,591
    Assets from Price Risk Management
     Activities                                    60,850           130,612
    Income Taxes Receivable                        39,671            94,311
    Other                                          46,506            39,177
         Total                                  1,063,768         1,350,080

  Oil and Gas Properties (Successful
   Efforts Method)                             15,890,787        13,893,851
    Less:  Accumulated Depreciation,
     Depletion and Amortization                (6,550,931)       (5,949,804)
        Net Oil and Gas Properties              9,339,856         7,944,047
  Other Assets                                    120,640           108,033
  Total Assets                                $10,524,264        $9,402,160



                      LIABILITIES AND SHAREHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                             $925,829          $896,572
    Accrued Taxes Payable                         101,372           130,984
    Dividends Payable                              22,052            14,718
    Deferred Income Taxes                          54,895           144,615
    Other                                          54,384            68,123
         Total                                  1,158,532         1,255,012


  Long-Term Debt                                  883,842           733,442
  Other Liabilities                               328,121           300,907
  Deferred Income Taxes                         1,861,180         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 June 30, 2007 and
        December 31, 2006                          52,951            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                    162,594           129,986
    Accumulated Other Comprehensive
     Income                                       328,918           176,704
    Retained Earnings                           5,640,660         5,151,034
    Common Stock Held in Treasury,
     4,655,082 Shares at
     June 30, 2007 and 5,724,959
     Shares at December 31, 2006                  (95,029)         (113,435)
       Total Shareholders' Equity               6,292,589         5,599,671
  Total Liabilities and Shareholders'
   Equity                                     $10,524,264        $9,402,160



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


                                                        Six Months
                                                      Ended June 30,
                                                  2007               2006
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net
   Cash Provided by Operating
   Activities:
    Net Income                                   $524,720          $758,124
    Items Not Requiring Cash
      Depreciation, Depletion and
       Amortization                               504,122           370,580
      Impairments                                  44,846            45,453
      Stock-Based Compensation Expenses            29,542            19,618
      Deferred Income Taxes                       223,591           153,552
      Other, Net                                   (4,912)           (7,485)
    Dry Hole Costs                                 28,626            25,394
    Mark-to-Market Commodity Derivative
     Contracts
      Total Gains                                  (4,302)         (198,046)
      Realized Gains                               65,880            93,913
    Other, Net                                     (3,951)            4,710
    Changes in Components of Working
     Capital and Other Assets and
     Liabilities
      Accounts Receivable                          20,734           169,350
      Inventories                                  (2,476)          (35,066)
      Accounts Payable                             14,651            (5,225)
      Accrued Taxes Payable                        26,191           (11,470)
      Other Assets                                 (4,683)           28,160
      Other Liabilities                           (20,420)          (25,422)
    Changes in Components of Working
     Capital Associated with
     Investing and Financing
     Activities                                   (20,471)           (9,708)
  Net Cash Provided by Operating
   Activities                                   1,421,688         1,376,432

  Investing Cash Flows
    Additions to Oil and Gas Properties        (1,748,483)       (1,189,927)
    Proceeds from Sales of Assets                  37,988            14,553
    Changes in Components of Working
     Capital Associated with
     Investing Activities                          20,412             9,742
    Other, Net                                    (32,114)          (14,256)
  Net Cash Used in Investing Activities        (1,722,197)       (1,179,888)

  Financing Cash Flows
    Net Commercial Paper and Revolving
     Credit Facility Borrowings                   180,400            10,000
    Long-Term Debt Repayments                     (30,000)         (102,550)
    Dividends Paid                                (38,370)          (27,712)
    Excess Tax Benefits from Stock-
     Based Compensation Expenses                   11,122            20,841
    Proceeds from Stock Options
     Exercised and Employee Stock
     Purchase Plan                                 14,089            11,143
    Other, Net                                       (194)             (214)
  Net Cash Provided by (Used in)
   Financing Activities                           137,047           (88,492)

  Effect of Exchange Rate Changes on
   Cash                                             3,741             7,245

  (Decrease) Increase in Cash and Cash
   Equivalents                                   (159,721)          115,297
  Cash and Cash Equivalents at
   Beginning of Period                            218,255           643,811
  Cash and Cash Equivalents at End of
   Period                                         $58,534          $759,108



                             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 six-month periods ended June
  30 reported Net Income Available to Common to reflect actual cash realized
  from oil and gas hedges by eliminating the unrealized mark-to-market gains
  from these transactions, to add the one-time tax expense related to Texas
  (US) franchise tax law revision in the second quarter of 2006 and to
  eliminate tax benefits related to the Alberta (Canada) provincial tax rate
  reduction and Canadian federal tax rate reduction in the second quarter of
  2006.  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              Six Months
                                    Ended June 30,        Ended June 30,
                                    2007       2006       2007       2006

  Reported Net Income Available
   to Common (GAAP)               $306,063   $329,559   $522,855   $754,408

  Mark-to-Market (MTM) Commodity
   Derivative Contracts Impact
    Total Gains                    (44,103)   (91,022)    (4,302)  (198,046)
    Realized Gains                  18,613     63,859     65,880     93,913
      Subtotal                     (25,490)   (27,163)    61,578   (104,133)

    After Tax MTM Impact           (16,403)   (17,479)    39,625    (67,010)

  Add: Tax Expense Related to
   Texas (US) Franchise Tax Law
   Revision                             --      5,221         --      5,221
  Less: Tax Benefit Related to
   Alberta (Canada) Provincial
   Tax Rate Reduction                   --    (13,449)        --    (13,449)
  Less: Tax Benefit Related to
   Canadian Federal Tax Rate
   Reduction                            --    (18,593)        --    (18,593)


  Adjusted Net Income Available
   to Common (Non-GAAP)           $289,660   $285,259   $562,480   $660,577

  Adjusted Net Income Per Share
   Available to Common (Non-
   GAAP)
    Basic                            $1.19      $1.18      $2.31      $2.74
    Diluted                          $1.17      $1.16      $2.28      $2.69

  Average Number of Common
   Shares
    Basic                          243,227    241,613    242,976    241,370
    Diluted                        247,261    245,887    247,009    245,827



                             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 six-month periods ended
  June 30 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                  Six Months
                               Ended June 30,           Ended June 30,
                               2007        2006          2007        2006
  Net Cash Provided by
   Operating Activities
   (GAAP)                    $723,208    $589,665    $1,421,688  $1,376,432

  Adjustments
    Exploration Costs
     (excluding Stock-
     Based Compensation
     Expenses)                 38,230      32,995        61,574      70,660
    Changes in Components
     of Working Capital
     and Other Assets and
     Liabilities
      Accounts Receivable       2,201     (34,200)      (20,734)   (169,350)
      Inventories              (6,368)     21,696         2,476      35,066
      Accounts Payable          8,780      (4,310)      (14,651)      5,225
      Accrued Taxes Payable   (24,224)     40,768       (26,191)     11,470
      Other Assets              1,060     (20,775)        4,683     (28,160)
      Other Liabilities         6,064      20,376        20,420      25,422
    Changes in Components
     of Working Capital
     Associated
     with Investing and
     Financing Activities     (12,223)    (23,479)       20,471       9,708
    Preferred Stock
     Dividends                   (990)     (1,858)       (1,865)     (3,716)

  Discretionary Cash Flow
   Available to Common
   (Non-GAAP)                $735,738    $620,878    $1,467,871  $1,332,757

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

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

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