email   rss   
Press Releases
EOG Resources Reports 2007 Results and Increases Dividend
- Overall Organic Year-Over-Year Production Increased 11 Percent
- Total Reserve Replacement of 248 Percent Achieved
- Strong Year-End Debt-to-Total Capitalization Ratio Reported
- Robust Company Performance Projected for 2008
- Repurchase of Outstanding Preferred Stock Completed
- Common Stock Dividend Increased by 33 Percent
PRNewswire-FirstCall
HOUSTON

Click here for PDF version

FOR IMMEDIATE RELEASE: Thursday, February 7, 2008

HOUSTON - EOG Resources, Inc. (EOG) today reported fourth quarter 2007 net income available to common stockholders of $358.0 million, or $1.44 per share. This compares to fourth quarter 2006 net income available to common stockholders of $237.2 million, or $0.96 per share. For the full year 2007, EOG reported net income available to common stockholders of $1,083.3 million or $4.37 per share as compared to $1,288.9 million, or $5.24 per share, for the full year 2006.

The results for the fourth quarter 2007 included a tax benefit of $30.3 million ($0.12 per share) related to a Canadian federal tax rate reduction, a $2.3 million ($0.01 per share) charge related to the premium and fees on the repurchase of $38 million of EOG's Series B preferred stock and a previously disclosed $45.2 million ($29.1 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 $28.8 million ($18.5 million after tax, or $0.08 per share). Consistent with some analysts' practice of matching realizations to settlement months and making certain other adjustments to exclude one-time items, adjusted non-GAAP net income available to common stockholders for the quarter was $319.4 million, or $1.29 per share. Adjusted non-GAAP net income available to common stockholders for the fourth quarter 2006 was $252.0 million, or $1.02 per share. On a similar basis, eliminating the items detailed in the attached table, adjusted non-GAAP net income available to common stockholders for the full year 2007 was $1,074.2 million, or $4.34 per share, and for the full year 2006 was $1,189.4 million, or $4.83 per share. (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income available to common stockholders to net income available to common stockholders.)

"Despite volatile natural gas prices, 2007 was an excellent year for EOG. Total company production grew 11 percent and total reserves increased 14 percent at an attractive replacement cost. We were able to accomplish these goals while maintaining a sound balance sheet," said Mark G. Papa, Chairman and Chief Executive Officer. "These positive results are a reflection of our consistent game plan -- to grow organically through the drillbit with a focus on high returns supported by a very conservative capital structure."

  Operational Highlights
  EOG posted outstanding total company operational results during 2007:
  -- Production increased 11 percent over 2006, driven by the Fort Worth and
     Rocky Mountain operating areas.
  -- Natural gas production rose 19 percent in the United States and 10
     percent overall primarily due to strong performance from operations in
     the Fort Worth, East Texas and Rocky Mountain areas.
  -- Crude oil and condensate production grew by 19 percent in the United
     States and 11 percent overall versus the prior year with the most
     significant increase recorded in the North Dakota Bakken.
  -- Natural gas liquids volumes increased 31 percent over 2006 with
     excellent results from the Fort Worth, South Texas and Rocky Mountain
     operating areas.


  Reserves

At December 31, 2007, total company reserves were approximately 7.7 trillion cubic feet equivalent, an increase of 944 billion cubic feet equivalent (Bcfe), or 14 percent higher than year-end 2006. In 2007:

  -- Total reserve replacement from all sources -- the ratio of net reserve
     additions from drilling, acquisitions, revisions and dispositions to
     total production -- was 248 percent at a total reserve replacement cost
     of $2.24 per thousand cubic feet equivalent (Mcfe), excluding gathering
     systems, processing plant and other expenditures.
  -- From drilling alone, EOG added 1,534 Bcfe of reserves with drilling
     capital expenditures of $3,548 million, excluding gathering systems,
     processing plant and other expenditures, at a reserve replacement cost
     of $2.31 per Mcfe prior to revisions, replacing 241 percent of
     production,
  -- In the United States, EOG added 1,580 Bcfe of reserves from drilling
     and acquisitions, net of revisions with capital expenditures of $3,010
     million, excluding gathering systems, processing plant and other
     expenditures, at a reserve replacement cost of $1.90 per Mcfe. (Please
     see attached tables for supporting data for the reconciliation of
     non-GAAP drilling capital expenditures to GAAP total costs incurred in
     exploration and development activities and for the calculation of
     reserve replacement percentages and reserve replacement costs.)


For the 20th 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 a complete independent engineering analysis of properties containing 79 percent of EOG's proved reserves on a Bcfe basis.

Capital Structure

At December 31, 2007, EOG's total debt outstanding was $1,185 million, and cash on the balance sheet was $54 million, for net debt of $1,131 million. (Please refer to the attached tables for the reconciliation of non-GAAP net debt to long-term debt.) EOG's debt-to-total capitalization ratio was 14 percent at December 31, 2007. Further simplifying its capital structure, EOG repurchased the remaining $43 million outstanding Series B preferred stock in December 2007 and January 2008.

Outlook for 2008

Consistent with EOG's strategy of adding new reserves at high rates of return through organic growth, the company plans to continue expansion of its North American drilling program. The company expects significant production gains from two high rate of return plays, the Fort Worth Barnett Shale and North Dakota Bakken.

EOG has increased its total crude oil and condensate production growth target from the previously stated 33 percent to 36 percent, primarily as a result of expanded drilling operations in the North Dakota Bakken. Natural gas liquids volumes are expected to rise by 40 percent over 2007 as EOG increases drilling activity in the western extension counties of the Fort Worth Barnett Shale and processes more of its rich natural gas.

EOG's 2008 planned exploration and development capital program is approximately $4.1 billion, which excludes acquisitions, gathering systems, processing plant and other expenditures of approximately $280 million. Considering the anticipated proceeds from the previously announced divestiture of its Appalachian shallow natural gas assets, EOG is targeting net debt at year-end 2008 to be relatively flat with December 31, 2007.

"Based on the current North American natural gas market in which we expect 2008 Henry Hub gas prices will average at least $7.50, we are targeting approximately 15 percent total company production growth in 2008, the mid-point of our previously stated range. Essentially all of our projected production growth will emanate from our U.S. operations, since we expect production from Canada, Trinidad and the United Kingdom to be relatively flat with 2007 levels," said Papa. "Although we have a strong hedge position in place, by closely monitoring natural gas fundamentals and staying flexible, we are positioned to adjust our 2008 drilling activity in response to a higher or lower gas price environment while maintaining a conservative balance sheet."

Dividend Increase

Following a 50 percent increase in 2007, EOG's Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2008 to holders of record as of April 16, 2008, the quarterly dividend on the common stock will be $0.12 per share. The indicated annual rate of $0.48 per share reflects a 33 percent increase from 2007, the eighth increase in nine years.

Conference Call Scheduled for February 8, 2008

EOG's fourth quarter and full year 2007 results conference call will be available via live audio webcast at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) on Friday, February 8, 2008. To listen, log on to http://www.eogresources.com/. The webcast will be archived on EOG's website through Friday, February 22, 2008.

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 or 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 the expectations reflected in its 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 EOG's 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, including
     environmental 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 may not occur. EOG's 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 report 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,
                                   2007      2006       2007        2006
  Net Operating Revenues         $1,250.8    $931.4    $4,190.8    $3,912.5
  Net Income Available to
   Common Stockholders             $358.0    $237.2    $1,083.3    $1,288.9
  Net Income Per Share
   Available to Common
   Stockholders
     Basic                          $1.46     $0.98       $4.45       $5.33
     Diluted                        $1.44     $0.96       $4.37       $5.24
  Average Number of Common
   Shares
     Basic                          244.4     242.5       243.5       241.8
     Diluted                        248.5     246.5       247.6       246.1



                        SUMMARY INCOME STATEMENTS
                        (Unaudited; in thousands)

                                Quarter                Twelve Months
                          Ended December 31,         Ended December 31,
                           2007         2006         2007          2006
  Net Operating
   Revenues
    Wellhead Natural Gas   $840,583    $709,295    $3,050,973    $2,803,245
    Wellhead Crude Oil,
     Condensate and
     Natural Gas Liquids    335,690     191,102       987,523       761,580
    Gains on Mark-to-
     Market Commodity
     Derivative Contracts    45,215      31,518        93,108       334,260
    Other, Net               29,316        (542)       59,187        13,457
       Total              1,250,804     931,373     4,190,791     3,912,542
  Operating Expenses
    Lease and Well          132,215     104,431       479,819       372,895
    Transportation Costs     46,852      29,687       170,404       110,328
    Exploration Costs        44,005      45,129       150,445       155,008
    Dry Hole Costs           40,710      37,817       115,382        79,567
    Impairments              60,657      40,699       147,517       108,258
    Depreciation,
     Depletion and
     Amortization           282,234     230,438     1,065,545       817,089
    General and
     Administrative          66,047      47,721       205,210       164,981
    Taxes Other Than Income  58,267      46,245       208,073       200,863
       Total                730,987     582,167     2,542,395     2,008,989
  Operating Income          519,817     349,206     1,648,396     1,903,553

  Other Income, Net           7,014      10,833        29,250        52,246

  Income Before Interest
   Expense and Income Taxes 526,831     360,039     1,677,646     1,955,799

  Interest Expense, Net      15,751       7,519        46,778        43,158

  Income Before Income
   Taxes                    511,080     352,520     1,630,868     1,912,641

  Income Tax Provision      149,885     109,895       540,950       612,756

  Net Income                361,195     242,625     1,089,918     1,299,885

  Preferred Stock Dividends   3,161       5,421         6,663        10,995

  Net Income Available to
   Common Stockholders     $358,034    $237,204    $1,083,255    $1,288,890



                           EOG RESOURCES, INC.
                           OPERATING HIGHLIGHTS
                               (Unaudited)

                                          Quarter           Twelve Months
                                      Ended December 31,  Ended December 31,
                                        2007      2006      2007      2006
  Wellhead Volumes and Prices
  Natural Gas Volumes (MMcfd)
     United States                     1,010       894       971       817
     Canada                              225       227       224       226
       United States & Canada          1,235     1,121     1,195     1,043
     Trinidad                            241       254       252       264
     United Kingdom                       20        32        23        30
       Total                           1,496     1,407     1,470     1,337

  Average Natural Gas Prices ($/Mcf)
     United States                     $6.52     $6.09     $6.32     $6.56
     Canada                             6.36      5.85      6.25      6.41
       United States & Canada
        Composite                       6.49      6.04      6.31      6.53
     Trinidad                           3.84      2.92      2.71      2.44
     United Kingdom                     9.45      6.13      6.19      7.69
       Composite                        6.11      5.48      5.69      5.74

  Crude Oil and Condensate Volumes
   (MBbld)
     United States                      27.6      21.8      24.6      20.7
     Canada                              2.3       2.4       2.4       2.5
       United States & Canada           29.9      24.2      27.0      23.2
     Trinidad                            3.8       4.4       4.1       4.8
     United Kingdom                      0.1       0.1       0.1       0.1
       Total                            33.8      28.7      31.2      28.1

  Average Crude Oil and Condensate
   Prices ($/Bbl)
     United States                    $84.83    $56.49    $68.85    $62.68
     Canada                            79.98     50.59     65.27     57.32
       United States & Canada
        Composite                      84.45     55.91     68.53     62.09
     Trinidad                          78.37     58.41     69.84     63.87
     United Kingdom                    86.70     49.57     66.84     57.74
       Composite                       83.77     56.39     68.69     62.38

  Natural Gas Liquids Volumes
   (MBbld)
     United States                      13.7       9.1      11.1       8.5
     Canada                              1.1       1.0       1.1       0.8
       Total                            14.8      10.1      12.2       9.3

  Average Natural Gas Liquids Prices
   ($/Bbl)
     United States                    $56.27    $36.80    $47.63    $39.95
     Canada                            53.18     36.56     44.54     43.69
       Composite                       56.04     36.78     47.36     40.25

  Natural Gas Equivalent Volumes
   (MMcfed)
     United States                     1,257     1,079     1,184       992
     Canada                              246       247       245       246
       United States & Canada          1,503     1,326     1,429     1,238
     Trinidad                            264       281       276       292
     United Kingdom                       20        33        24        31
       Total                           1,787     1,640     1,729     1,561

  Total Bcfe                           164.4     150.8     631.3     569.9



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


                                             December 31,       December 31,
                                                 2007               2006

                                     ASSETS
  Current Assets
    Cash and Cash Equivalents                  $54,231            $218,255
    Accounts Receivable, Net                   835,670             754,134
    Inventories                                103,613             113,591
    Assets from Price Risk Management
     Activities                                100,912             130,612
    Income Taxes Receivable                    110,370              94,311
    Deferred Income Taxes                       33,533                   -
    Other                                       55,001              39,177
         Total                               1,293,330           1,350,080

  Property, Plant and Equipment
    Oil and Gas Properties (Successful
     Efforts Method)                        16,991,687          13,575,528
    Other Property, Plant and Equipment        584,876             318,323
                                            17,576,563          13,893,851
    Less:  Accumulated Depreciation,
     Depletion and Amortization             (7,138,974)         (5,949,804)
        Total Property, Plant and
         Equipment, Net                     10,437,589           7,944,047
  Long-Term Assets Held for Sale               244,750                   -
  Other Assets                                 113,238             108,033
  Total Assets                             $12,088,907          $9,402,160



                   LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                        $1,152,140            $896,572
    Accrued Taxes Payable                      104,647             130,984
    Dividends Payable                           22,045              14,718
    Liabilities from Price Risk
     Management Activities                       3,404                   -
    Deferred Income Taxes                      108,980             144,615
    Other                                       82,954              68,123
         Total                               1,474,170           1,255,012

  Long-Term Debt                             1,185,000             733,442
  Other Liabilities                            368,336             300,907
  Deferred Income Taxes                      2,071,307           1,513,128

  Stockholders' Equity
    Preferred Stock, $0.01 Par, 10,000,000
     Shares Authorized:
      Series B, Cumulative, $1,000
       Liquidation Preference Per Share,
       5,000 Shares Outstanding at
       December 31, 2007 and 53,260 Shares
       Outstanding at December 31, 2006          4,977              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                 221,102             129,986
    Accumulated Other Comprehensive Income     466,702             176,704
    Retained Earnings                        6,156,721           5,151,034
    Common Stock Held in Treasury,
     2,935,313 Shares at December 31, 2007
     and 5,724,959 Shares at
     December 31, 2006                         (61,903)           (113,435)
            Total Stockholders' Equity       6,990,094           5,599,671
  Total Liabilities and Stockholders'
   Equity                                  $12,088,907          $9,402,160



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


                                                       Twelve Months
                                                     Ended December 31,
                                                 2007               2006
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net
   Cash Provided by Operating Activities:
    Net Income                                $1,089,918        $1,299,885
    Items Not Requiring (Providing) Cash
      Depreciation, Depletion and
       Amortization                            1,065,545           817,089
      Impairments                                147,517           108,258
      Stock-Based Compensation
       Expenses                                   67,253            49,875
      Deferred Income Taxes                      426,827           385,842
      Other, Net                                 (44,138)          (18,404)
    Dry Hole Costs                               115,382            79,567
    Mark-to-Market Commodity Derivative
     Contracts
      Total Gains                                (93,108)         (334,260)
      Realized Gains                             127,969           215,063
    Other, Net                                    24,268            20,670
    Changes in Components of Working Capital
     and Other Assets and Liabilities
      Accounts Receivable                        (85,024)            9,905
      Inventories                                  9,638           (50,370)
      Accounts Payable                           228,354           222,012
      Accrued Taxes Payable                      (40,002)         (106,324)
      Other Assets                                (8,416)           13,060
      Other Liabilities                            4,976            (9,477)
    Changes in Components of Working Capital
     Associated with Investing and Financing
     Activities                                 (104,094)         (123,838)
  Net Cash Provided by Operating Activities    2,932,865         2,578,553

  Investing Cash Flows
    Additions to Oil and Gas Properties       (3,401,986)       (2,750,262)
    Additions to Other Property, Plant
     and Equipment                              (277,076)          (99,861)
    Proceeds from Sales of Assets                 83,295            20,041
    Changes in Components of Working Capital
     Associated with Investing Activities        104,168           123,890
    Other, Net                                    (3,675)           (4,181)
  Net Cash Used in Investing Activities       (3,495,274)       (2,710,373)

  Financing Cash Flows
    Net Commercial Paper and Revolving
     Credit Facility Borrowings                   10,000            65,000
    Long-Term Debt Borrowings                    600,000                 -
    Long-Term Debt Repayments                   (158,442)         (316,625)
    Dividends Paid                               (84,020)          (60,443)
    Excess Tax Benefits from Stock-Based
     Compensation                                 27,339            28,188
    Redemption of Preferred Stock                (51,197)          (50,199)
    Proceeds from Stock Options Exercised
     and Employee Stock Purchase Plans            55,320            36,033
    Debt Issuance Costs                           (5,206)             (615)
    Other, Net                                       (71)             (221)
  Net Cash Provided by (Used in) Financing
   Activities                                    393,723          (298,882)

  Effect of Exchange Rate Changes on
   Cash                                            4,662             5,146

  Decrease in Cash and Cash
   Equivalents                                  (164,024)         (425,556)
  Cash and Cash Equivalents at
   Beginning of Period                           218,255           643,811
  Cash and Cash Equivalents at End of
   Period                                        $54,231          $218,255



                           EOG RESOURCES, INC.
  QUANTITATIVE RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON
                         STOCKHOLDERS (Non-GAAP)
          TO NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (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 Stockholders (GAAP) to
  reflect actual cash realized from financial commodity price transactions
  by eliminating the unrealized mark-to-market gains from these
  transactions, to add the premium and fees for preferred stock redemptions
  in the third and fourth quarters of 2007 and the fourth quarter of 2006,
  to add the one-time tax expense related to Texas (US) franchise tax law
  revision in the second quarter of 2006, and to eliminate the effect of the
  income tax rate reductions enacted by Alberta (Canada) in the second
  quarter of 2006 and by the Canadian federal government in the second and
  fourth quarters of 2007 and 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 comparitive purposes within the industry.


                                     Quarter              Twelve Months
                                Ended December 31,      Ended December 31,
                                2007        2006       2007          2006

  Reported Net Income
   Available to Common
   Stockholders (GAAP)        $358,034   $237,204   $1,083,255   $1,288,890

  Mark-to-Market (MTM)
   Commodity Derivative
   Contracts Impact
    Total Gains                (45,215)   (31,518)     (93,108)    (334,260)
    Realized Gains              28,782     48,171      127,969      215,063
       Subtotal                (16,433)    16,653       34,861     (119,197)

    After Tax MTM Impact       (10,575)    10,716       22,433      (76,703)

  Add:  Premium and Fees for
   Preferred Stock
   Redemption                    2,296      4,049        2,937        4,049
  Add: Tax Expense Related
   to Texas (US) Franchise
   Tax Law Revision                  -          -            -        5,221
  Less: Tax Benefit Related
   to Alberta (Canada)
   Provincial Tax
    Rate Reduction                   -          -            -      (13,449)
  Less: Tax Benefit Related
   to Canadian Federal Tax
   Rate Reduction              (30,338)         -      (34,419)     (18,593)


  Adjusted Net Income
   Available to Common
   Stockholders (Non-GAAP)    $319,417   $251,969   $1,074,206   $1,189,415

  Adjusted Net Income Per
   Share Available to Common
   Stockholders (Non-GAAP)
    Basic                        $1.31      $1.04        $4.41        $4.92
    Diluted                      $1.29      $1.02        $4.34        $4.83

  Average Number of Common
   Shares
    Basic                      244,440    242,515      243,469      241,782
    Diluted                    248,537    246,477      247,637      246,100



                           EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF DISCRETIONARY CASH FLOW AVAILABLE TO COMMON
                         STOCKHOLDERS (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 Stockholders (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              Twelve Months
                                  Ended December,        Ended December,
                                 2007        2006       2007        2006
  Net Cash Provided by
   Operating Activities
   (GAAP)                     $786,917    $599,005   $2,932,865  $2,578,553

  Adjustments
    Exploration Costs
     (excluding Stock-Based
     Compensation Expenses)     40,275      42,634      137,117     144,147
    Changes in Components of
     Working Capital and Other
     Assets and Liabilities
      Accounts Receivable      163,307     100,612       85,024      (9,905)
      Inventories               (5,406)     (3,651)      (9,638)     50,370
      Accounts Payable        (185,524)   (117,420)    (228,354)   (222,012)
      Accrued Taxes Payable     17,168      57,241       40,002     106,324
      Other Assets                 636      14,563        8,416     (13,060)
      Other Liabilities         (8,741)      2,573       (4,976)      9,477
    Changes in Components of
     Working Capital Associated
     with Investing and
     Financing Activities       59,780      57,842      104,094     123,838
    Preferred Stock Dividends   (3,161)     (5,421)      (6,663)    (10,995)

  Discretionary Cash Flow
   Available to Common
   Stockholders (Non-GAAP)    $865,251    $747,978   $3,057,887  $2,756,737



                           EOG RESOURCES, INC.
                        RESERVES SUPPLEMENTAL DATA
                               (Unaudited)

  2007 NET PROVED RESERVES RECONCILIATION SUMMARY
                                     United              North
  NATURAL GAS (Bcf)                  States     Canada   America   Trinidad
  Beginning Reserves                 3,470.9   1,309.6   4,780.5    1,295.4
  Revisions                            (63.2)    (64.3)   (127.5)     (16.9)
  Purchases in place                     1.2       1.2       2.4       29.6
  Extensions, discoveries and other
   additions                         1,177.5      54.9   1,232.4          -
  Sales in place                        (5.7)        -      (5.7)         -
  Production                          (360.6)    (81.6)   (442.2)     (91.8)

  Ending Reserves                    4,220.1   1,219.8   5,439.9    1,216.3

  LIQUIDS (MMBbls) (a)
  Beginning Reserves                    96.6       9.6     106.2       11.5
  Revisions                             27.9       1.2      29.1       (1.2)
  Purchases in place                       -         -         -        0.1
  Extensions, discoveries and other
   additions                            49.4       0.9      50.3          -
  Sales in place                        (0.9)        -      (0.9)         -
  Production                           (13.0)     (1.3)    (14.3)      (1.5)

  Ending Reserves                      160.0      10.4     170.4        8.9

  NATURAL GAS EQUIVALENTS (Bcfe)
  Beginning Reserves                 4,050.6   1,367.1   5,417.7    1,364.4
  Revisions                            104.4     (57.3)     47.1      (23.9)
  Purchases in place                     1.5       1.2       2.7       30.0
  Extensions, discoveries and other
   additions                         1,474.0      60.2   1,534.2          -
  Sales in place                       (11.4)        -     (11.4)         -
  Production                          (438.9)    (89.2)   (528.1)    (100.8)

  Ending Reserves                    5,180.2   1,282.0   6,462.2    1,269.7


   Net Proved Developed Reserves (Bcfe)
     At December 31, 2006            2,893.5   1,218.8   4,112.3      646.7
     At December 31, 2007            3,861.5   1,140.3   5,001.8      960.0

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


  2007 EXPLORATION AND DEVELOPMENT EXPENDITURES ($ Million)

  Acquisition Cost of Unproved
   Properties                         $233.3     $45.8    $279.1         $-
  Exploration Costs                    435.9      75.5     511.4       45.2
  Development Costs                  2,336.5     254.3   2,590.8       91.0

  Total Drilling                     3,005.7     375.6   3,381.3      136.2

  Acquisition Cost of Proved
   Properties                            3.9       0.7       4.6       15.4

  Total Exploration & Development
   Expenditures                      3,009.6     376.3   3,385.9      151.6

  Gathering, Processing and Other      275.1       1.5     276.6        0.4
  Asset Retirement Costs                21.8       9.3      31.1        0.3

  Total Expenditures                 3,306.5     387.1   3,693.6      152.3

  Proceeds from Sales in Place         (77.9)     (5.4)    (83.3)         -

  Net Expenditures                  $3,228.6    $381.7  $3,610.3     $152.3


  RESERVE REPLACEMENT COSTS ($ / Mcfe)*
  Total Drilling, Before Revisions     $2.04     $6.24     $2.20     $    -
  All-in Total, Net of Revisions       $1.90    $91.78     $2.14     $24.85

  RESERVE REPLACEMENT*
  Drilling Only                          336%       67%      291%         0%
  All-in Total, Net of Revisions &
   Dispositions                          357%        5%      298%         6%



  2007 NET PROVED RESERVES RECONCILIATION SUMMARY
                                        United    Other   Total
  NATURAL GAS (Bcf)                    Kingdom    Int'l   Int'l     Total
  Beginning Reserves                      19.0       -    1,314.4   6,094.9
  Revisions                                2.5       -      (14.4)   (141.9)
  Purchases in place                         -       -       29.6      32.0
  Extensions, discoveries and other
   additions                                 -       -          -   1,232.4
  Sales in place                             -       -          -      (5.7)
  Production                              (8.6)      -     (100.4)   (542.6)

  Ending Reserves                         12.9       -    1,229.2   6,669.1

  LIQUIDS (MMBbls) (a)
  Beginning Reserves                       0.1       -       11.6     117.8
  Revisions                                  -       -       (1.2)     27.9
  Purchases in place                         -       -        0.1       0.1
  Extensions, discoveries and other
   additions                                 -       -          -      50.3
  Sales in place                             -       -          -      (0.9)
  Production                              (0.1)      -       (1.6)    (15.9)

  Ending Reserves                            -       -        8.9     179.3

  NATURAL GAS EQUIVALENTS (Bcfe)
  Beginning Reserves                      19.4       -    1,383.8   6,801.5
  Revisions                                2.6       -      (21.3)     25.8
  Purchases in place                         -       -       30.0      32.7
  Extensions, discoveries and other
   additions                                 -       -          -   1,534.2
  Sales in place                             -       -          -     (11.4)
  Production                              (8.8)      -     (109.6)   (637.7)

  Ending Reserves                         13.2       -    1,282.9   7,745.1


   Net Proved Developed Reserves (Bcfe)
     At December 31, 2006                 19.4       -      666.1   4,778.4
     At December 31, 2007                 13.2       -      973.2   5,975.0

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


  2007 EXPLORATION AND DEVELOPMENT EXPENDITURES ($ Million)

  Acquisition Cost of Unproved
   Properties                            $(1.2)  $   -      $(1.2)   $277.9
  Exploration Costs                       27.8     5.3       78.3     589.7
  Development Costs                       (1.4)      -       89.6   2,680.4

  Total Drilling                          25.2     5.3      166.7   3,548.0

  Acquisition Cost of Proved Properties      -       -       15.4      20.0

  Total Exploration & Development
   Expenditures                           25.2     5.3      182.1   3,568.0

  Gathering, Processing and Other          0.1       -        0.5     277.1
  Asset Retirement Costs                     -       -        0.3      31.4

  Total Expenditures                      25.3     5.3      182.9   3,876.5

  Proceeds from Sales in Place               -       -          -     (83.3)

  Net Expenditures                       $25.3    $5.3     $182.9  $3,793.2


  RESERVE REPLACEMENT COSTS ($ / Mcfe)*
  Total Drilling, Before Revisions       $   -    $  -     $    -  $   2.31
  All-in Total, Net of Revisions         $9.69    $  -     $20.93  $   2.24

  RESERVE REPLACEMENT*
  Drilling Only                              0%      -          0%      241%
  All-in Total, Net of Revisions &
   Dispositions                             30%      -          8%      248%

  *  See attached reconciliation schedule for calculation methodology



                           EOG RESOURCES, INC.
     Quantitative Reconciliation of Total Exploration and Development
                Expenditures for Drilling Only (Non-GAAP)
      and Total Exploration and Development Expenditures (Non-GAAP)
    as Used In the Calculation of Reserve Replacement Costs ($ / Mcfe)
 to Total Costs Incurred in Exploration and Development Activities (GAAP)
            (Unaudited; In Millions, Except Ratio Information)

  The following chart reconciles Total Costs Incurred in Exploration and
  Development Activities (GAAP) to Total Exploration and Development
  Expenditures for Drilling Only (Non-GAAP) and Total Exploration and
  Development Expenditures (Non-GAAP), as used in the calculation of
  Reserve Replacement Costs per Mcfe. There are numerous ways that industry
  participants present Reserve Replacement Costs, including "Drilling Only"
  and "All-In", which reflect total exploration and development expenditures
  divided by total net reserve additions from extensions and discoveries
  only, or from all sources. Combined with Reserve Replacement, these
  statistics provide management and investors with an indication of the
  results of the current year capital investment program. Reserve
  Replacement Cost statistics are widely recognized and reported by industry
  participants and are used by EOG management and other third parties for
  comparative purposes within the industry. Please note that the actual cost
  of adding reserves will vary from the reported statistics due to timing
  differences in reserve bookings and capital expenditures. Accordingly,
  some analysts use three or five year averages of reported statistics,
  while others prefer to estimate future cost. EOG has not included future
  capital costs to develop proved undeveloped reserves in Total Exploration
  and Development Expenditures.


                                        United              North
                                        States    Canada   America  Trinidad
  Total Costs Incurred in Exploration
   and Development Activities (GAAP)    3,031.4    385.6   3,417.0    151.9

   Less: Asset Retirement Costs           (21.8)    (9.3)    (31.1)    (0.3)
   Less: Acquisition Cost of Proved
    Properties                             (3.9)    (0.7)     (4.6)   (15.4)

  Total Exploration & Development
   Expenditures for Drilling Only
   (Non-GAAP) (a)                       3,005.7    375.6   3,381.3    136.2

  Total Costs Incurred in Exploration
   and Development Activities (GAAP)    3,031.4    385.6   3,417.0    151.9

   Less: Asset Retirement Costs           (21.8)    (9.3)    (31.1)    (0.3)

  Total Exploration & Development
   Expenditures (Non-GAAP) (b)          3,009.6    376.3   3,385.9    151.6

  Net Reserve Additions From All
   Sources - Natural Gas Equivalents
   (Bcfe)
  Revisions                               104.4    (57.3)     47.1    (23.9)
  Purchases in place                        1.5      1.2       2.7     30.0
  Extensions, discoveries and other
   additions (c)                        1,474.0     60.2   1,534.2        -

  Total Reserve Additions (d)           1,579.9      4.1   1,584.0      6.1

  Sales in place                          (11.4)       -     (11.4)       -

  Net Reserve Additions From All
   Sources (e)                          1,568.5      4.1   1,572.6      6.1

  Production (f)                          438.9     89.2     528.1    100.8

  RESERVE REPLACEMENT COSTS ($ / Mcfe)
  Total Drilling, Before Revisions
   (a / c )                               $2.04    $6.24     $2.20        -
  All-in Total, Net of Revisions (b / d)  $1.90   $91.78     $2.14   $24.85

  RESERVE REPLACEMENT
  Drilling Only (c / f)                     336%      67%      291%       -
  All-in Total, Net of Revisions &
   Dispositions (e / f)                     357%       5%      298%       6%



                                        United    Other    Total
                                       Kingdom    Int'l    Int'l      Total
  Total Costs Incurred in Exploration
   and Development Activities (GAAP)     25.2      5.3     182.4    3,599.4

   Less: Asset Retirement Costs             -        -      (0.3)     (31.4)
   Less: Acquisition Cost of Proved
    Properties                              -        -     (15.4)     (20.0)

  Total Exploration & Development
   Expenditures for Drilling Only
   (Non-GAAP) (a)                        25.2      5.3     166.7    3,548.0

  Total Costs Incurred in Exploration
   and Development Activities (GAAP)     25.2      5.3     182.4    3,599.4

   Less: Asset Retirement Costs             -        -      (0.3)     (31.4)

  Total Exploration & Development
   Expenditures (Non-GAAP) (b)           25.2      5.3     182.1    3,568.0

  Net Reserve Additions From All
   Sources - Natural Gas Equivalents
   (Bcfe)
  Revisions                               2.6        -     (21.3)      25.8
  Purchases in place                        -        -      30.0       32.7
  Extensions, discoveries and other
   additions (c)                            -        -         -    1,534.2

  Total Reserve Additions (d)             2.6        -       8.7    1,592.7

  Sales in place                            -        -         -      (11.4)

  Net Reserve Additions From All
   Sources (e)                            2.6        -       8.7    1,581.3

  Production (f)                          8.8        -     109.6      637.7

  RESERVE REPLACEMENT COSTS ($ / Mcfe)
  Total Drilling, Before Revisions
   (a / c)                                  -        -         -      $2.31
  All-in Total, Net of Revisions
   (b / d)                              $9.69        -    $20.93      $2.24

  RESERVE REPLACEMENT
  Drilling Only (c / f)                     -        -         -        241%
  All-in Total, Net of Revisions &
   Dispositions (e / f )                   30%       -         8%       248%



                           EOG RESOURCES, INC.
            Quantitative Reconciliation of Net Debt (Non-GAAP)
                         to Long-Term Debt (GAAP)
                         (Unaudited; in millions)

  The following chart reconciles Long-Term Debt (GAAP) to Net Debt
  (Non-GAAP). A portion of the cash is associated with international
  subsidiaries; tax considerations may impact debt paydown. EOG believes
  this presentation may be useful to investors who follow the practice of
  some industry analysts who utilize Net Debt in their calculation.  EOG
  management uses this information for comparative purposes within the
  industry.


                                                    12/31/2007

     Long-Term Debt (GAAP)                            $1,185
     Less: Cash                                          (54)
     Net Debt (Non-GAAP)                              $1,131

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

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

 

Top of Page