HOUSTON, Nov. 3 /PRNewswire-FirstCall/ -- EOG Resources, Inc. (NYSE: EOG) (EOG) today reported third quarter 2008 net income available to common stockholders of $1,556.3 million, or $6.20 per share. This compares to third quarter 2007 net income available to common stockholders of $202.4 million, or $0.82 per share.
The results for the third quarter 2008 included a previously disclosed $1,381.7 million ($889.2 million after tax, or $3.55 per share) gain on the mark-to-market of financial commodity transactions. During the quarter, the net cash outflow related to financial commodity contracts was $122.5 million ($78.8 million after tax, or $0.31 per share). Consistent with some analysts' practice of matching realizations to settlement months, adjusted non-GAAP net income available to common stockholders for the quarter was $588.3 million, or $2.34 per share. Adjusted non-GAAP net income available to common stockholders for the third quarter 2007 was $195.7 million, or $0.79 per share. (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income available to common stockholders to GAAP net income available to common stockholders.)
Operational Highlights
Excellent results from North American operations continue to position EOG to achieve its 2008 production goals set forth in February of this year. Despite plant downtime and hurricane interruptions, the company is on track to increase its 2008 total company production by 15 percent over 2007.
EOG's United States crude oil and condensate production increased 65 percent versus the third quarter 2007, led primarily by results from strong wells in the North Dakota Bakken. Condensate rich natural gas production from Johnson County and the western counties of the Fort Worth Basin Barnett Shale Play also contributed to the increased liquids production in the United States.
Currently, EOG is operating an eight rig program in the North Dakota Bakken with seven rigs running in the Parshall Field and one drilling step-out wells. Among the most prolific wells EOG drilled in the Bakken core area during the third quarter were the Austin #21-28H, #18-21H and #10-34H. The wells, in which EOG holds a 66, 100 and 70 percent working interest, respectively, posted corresponding peak gross production rates of 2,847, 3,029 and 3,477 barrels of oil per day.
In the Fort Worth Basin Barnett Shale Play, EOG continues to make improvements to individual well production rates and reserve recoveries. During the third quarter, EOG drilled and completed a pattern of four horizontal wells in northeastern Johnson County. The Little Buddy Units #3H, #5H, #6H and #7H began initial production in October at individual rates ranging from 6.5 to 10 million cubic feet per day (MMcfd) of natural gas, gross. EOG has an average 81 percent working interest in these wells. Also in Johnson County, the Raam Unit #4H, in which EOG has 100 percent working interest, began initial production at over 8.5 MMcfd.
In July, EOG brought its first two wells to sales in British Columbia's Horn River Basin natural gas play where the company holds approximately 150,000 net acres. Since then, EOG has drilled and completed three horizontal wells, which had initial production rates of 16, 12 and 9 MMcfd, respectively. EOG has a 100 percent working interest in the wells, which continue to produce at strong rates after being on-line for 30 to 60 days.
"EOG hit its volume targets again this quarter because of the inherent strength of our drilling inventory, not only in the North Dakota Bakken and Fort Worth Basin Barnett Shale, but across our North American operations," said Mark G. Papa, Chairman and CEO. "Our year-to-date results reflect EOG's technological expertise with regard to implementing drilling and well completion enhancements that give us an economic advantage in geologically challenging plays even during periods of low hydrocarbon prices. Our results in the Bakken and Barnett plays demonstrate the high quality completion results that EOG is achieving."
2009 Operational Plans and Targets
EOG is targeting 2009 total company production growth ranging from 10 to 14 percent, depending upon North American natural gas prices. Production growth in 2009 is expected to be driven by high reinvestment rate of return opportunities in the United States, particularly the Fort Worth Basin Barnett Shale and the North Dakota Bakken. Natural gas production from Canada, Trinidad and other international areas in 2009 is projected to remain relatively flat with 2008 production levels.
EOG is approaching its 2009 natural gas drilling and capital expenditure program with two alternate production growth targets, one more robust than the other.
"We believe that cold winter weather -- or lack of it -- will be the determining factor of North American natural gas prices in 2009. If Henry Hub prices average above $8.00, we will target 14 percent total company production growth. However, if prices average $7.00, we expect to reduce our North American natural gas drilling activity and achieve an overall 10 percent production increase. In either case, our focus is on the balance sheet and our commitment to low debt ratios. We anticipate that total company crude oil and condensate production will increase 43 percent in 2009 over 2008 driven primarily by the North Dakota Bakken with a lesser contribution from our Barnett oil and other plays," said Papa.
"Based on EOG's projected 2009 activity level and our strong prospect inventory, we have confidence that EOG can achieve double-digit organic production growth with attractive reinvestment rates of return. In these uncertain times, the consistency of our long-term strategy and focus on ROCE and the balance sheet is paying off. Although we have abundant opportunities, EOG's goal remains the same: to pursue a high rate of return drilling program with a low unit cost structure while maintaining flat year-end net debt year over year."
Capital Structure
At September 30, 2008, EOG's total debt outstanding was $1,897 million for a debt-to-total capitalization ratio of 18 percent. Taking into account cash on the balance sheet of $886 million, at the end of the third quarter EOG's net debt was $1,011 million and the net debt-to-total capitalization ratio was 10 percent, down from 14 percent at year-end 2007. (Please refer to the attached tables for the reconciliation of net debt (non-GAAP) to current and long-term debt (GAAP) and the reconciliation of net debt-to-total capitalization ratio (non-GAAP) to debt-to-total capitalization ratio (GAAP).)
"With the recent issuance of our long-term notes of $750 million, essentially all of EOG's debt is termed up and we have minimized our short-term credit needs. Combined with our investment grade 'A' credit ratings category and conservative financials, EOG's capital structure remains in excellent shape. Because maintaining a low net debt-to-total capitalization ratio is a key strategy for EOG, we will manage our capital expenditures accordingly," said Papa.
Conference Call Scheduled for November 4, 2008
EOG's third quarter 2008 results conference call will be available via live audio webcast at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) on Tuesday, November 4, 2008. To listen, log on to http://www.eogresources.com. The webcast will be archived on EOG's website through Tuesday, November 18, 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, Trinidad, the United Kingdom North Sea and China. 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, 2007, 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 Nine Months Ended September 30, Ended September 30, 2008 2007 2008 2007 Net Operating Revenues $3,219.5 $986.2 $5,353.0 $2,925.9 Net Income Available to Common Stockholders $1,556.3 $202.4 $1,975.0 $725.2 Net Income Per Share Available to Common Stockholders Basic $6.30 $0.83 $8.02 $2.98 Diluted $6.20 $0.82 $7.88 $2.93 Average Number of Shares Outstanding Basic 247.2 243.5 246.3 243.1 Diluted 250.9 247.4 250.8 247.3 SUMMARY INCOME STATEMENTS (Unaudited; in thousands) Quarter Nine Months Ended September 30, Ended September 30, 2008 2007 2008 2007 Net Operating Revenues Natural Gas $1,259,130 $679,992 $3,637,325 $2,196,290 Crude Oil, Condensate and Natural Gas Liquids 574,402 258,273 1,494,043 651,833 Gains on Mark-to- Market Commodity Derivative Contracts 1,381,733 43,591 69,067 47,893 Other, Net 4,241 4,307 152,570 29,871 Total 3,219,506 986,163 5,353,005 2,925,887 Operating Expenses Lease and Well 151,342 120,091 422,679 347,604 Transportation Costs 78,136 39,913 203,205 109,452 Exploration Costs 37,943 38,840 145,397 106,440 Dry Hole Costs 12,849 46,046 28,062 74,672 Impairments 32,142 42,014 113,591 86,860 Depreciation, Depletion and Amortization 346,247 279,189 958,740 783,311 General and Administrative 70,893 48,101 185,459 139,163 Taxes Other Than Income 97,771 47,111 279,866 149,806 Total 827,323 661,305 2,336,999 1,797,308 Operating Income 2,392,183 324,858 3,016,006 1,128,579 Other Income, Net 13,864 6,311 28,756 22,236 Income Before Interest Expense and Income Taxes 2,406,047 331,169 3,044,762 1,150,815 Interest Expense, Net 12,095 12,571 33,315 31,027 Income Before Income Taxes 2,393,952 318,598 3,011,447 1,119,788 Income Tax Provision 837,667 114,595 1,036,000 391,065 Net Income 1,556,285 204,003 1,975,447 728,723 Preferred Stock Dividends - 1,637 443 3,502 Net Income Available to Common Stockholders $1,556,285 $202,366 $1,975,004 $725,221 EOG RESOURCES, INC. OPERATING HIGHLIGHTS (Unaudited) Quarter Nine Months Ended September 30, Ended September 30, 2008 2007 2008 2007 Wellhead Volumes and Prices Natural Gas Volumes (MMcfd)(A) United States 1,196 997 1,141 958 Canada 224 216 218 223 Trinidad 240 262 229 255 Other International (D) 19 22 16 25 Total 1,679 1,497 1,604 1,461 Average Natural Gas Prices ($/Mcf) (B) United States $8.99 $5.52 $9.15 $6.19 Canada 8.15 5.49 8.33 6.22 Trinidad 4.04 2.20 3.86 2.35 Other International (D) 7.41 5.89 8.90 5.29 Composite 8.15 4.94 8.28 5.51 Crude Oil and Condensate Volumes (MBbld) (A) United States 41.8 25.3 35.9 23.6 Canada 3.0 2.4 2.7 2.4 Trinidad 3.4 4.2 3.4 4.2 Other International (D) 0.1 0.1 0.1 0.1 Total 48.3 32.0 42.1 30.3 Average Crude Oil and Condensate Prices ($/Bbl)(B) United States $109.86 $70.86 $107.36 $62.52 Canada 109.71 69.99 104.57 60.54 Trinidad 111.39 67.03 103.80 67.22 Other International (D) 112.77 66.96 104.66 61.57 Composite 109.96 70.27 106.89 63.01 Natural Gas Liquids Volumes (MBbld) (A) United States 13.2 10.8 14.7 10.3 Canada 1.1 0.9 1.0 1.0 Total 14.3 11.7 15.7 11.3 Average Natural Gas Liquids Prices ($/Bbl) (B) United States $69.79 $47.94 $63.08 $43.73 Canada 64.01 46.71 62.45 41.52 Composite 69.33 47.84 63.04 43.52 Natural Gas Equivalent Volumes (MMcfed) (C) United States 1,525 1,213 1,445 1,161 Canada 249 236 240 244 Trinidad 261 288 250 280 Other International (D) 20 22 16 25 Total 2,055 1,759 1,951 1,710 Total Bcfe (C) 189.1 161.9 534.5 466.8 (A) Million cubic feet per day or thousand barrels per day, as applicable. (B) Dollars per thousand cubic feet or per barrel, as applicable. (C) 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. (D) Other International includes EOG's United Kingdom and China operations. EOG RESOURCES, INC. SUMMARY BALANCE SHEETS (Unaudited; in thousands, except share data) September 30, December 31, 2008 2007 ASSETS Current Assets Cash and Cash Equivalents $885,977 $54,231 Accounts Receivable, Net 1,048,385 835,670 Inventories 146,571 102,322 Assets from Price Risk Management Activities 317,994 100,912 Income Taxes Receivable 8,789 110,370 Deferred Income Taxes - 33,533 Other 68,801 55,001 Total 2,476,517 1,292,039 Property, Plant and Equipment Oil and Gas Properties (Successful Efforts Method) 20,216,168 16,981,836 Other Property, Plant and Equipment 901,209 581,402 21,117,377 17,563,238 Less: Accumulated Depreciation, Depletion and Amortization (7,985,007) (7,133,984) Total Property, Plant and Equipment, Net 13,132,370 10,429,254 Long-Term Assets Held for Sale - 254,376 Other Assets 223,843 113,238 Total Assets $15,832,730 $12,088,907 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $1,340,822 $1,152,140 Accrued Taxes Payable 136,254 104,647 Dividends Payable 33,325 22,045 Liabilities from Price Risk Management Activities 118 3,404 Deferred Income Taxes 200,118 108,980 Current Portion of Long-Term Debt 37,000 - Other 85,443 82,954 Total 1,833,080 1,474,170 Long-Term Debt 1,860,000 1,185,000 Other Liabilities 512,006 368,336 Deferred Income Taxes 2,707,684 2,071,307 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 - 4,977 Common Stock, $0.01 Par, 640,000,000 Shares Authorized: 249,752,807 Shares Issued at September 30, 2008 and 249,460,000 Shares Issued at December 31, 2007 202,498 202,495 Additional Paid In Capital 369,128 221,102 Accumulated Other Comprehensive Income 314,982 466,702 Retained Earnings 8,038,477 6,156,721 Common Stock Held in Treasury, 168,395 Shares at September 30, 2008 and 2,935,313 Shares at December 31, 2007 (5,125) (61,903) Total Stockholders' Equity 8,919,960 6,990,094 Total Liabilities and Stockholders' Equity $15,832,730 $12,088,907 EOG RESOURCES, INC. SUMMARY STATEMENTS OF CASH FLOWS (Unaudited; in thousands) Nine Months Ended September 30, 2008 2007 Cash Flows from Operating Activities Reconciliation of Net Income to Net Cash Provided by Operating Activities: Net Income $1,975,447 $728,723 Items Not Requiring (Providing) Cash Depreciation, Depletion and Amortization 958,740 783,311 Impairments 113,591 86,860 Stock-Based Compensation Expenses 76,344 46,732 Deferred Income Taxes 790,699 328,005 Other, Net (135,325) (21,080) Dry Hole Costs 28,062 74,672 Mark-to-Market Commodity Derivative Contracts Total Gains (69,067) (47,893) Realized (Losses) Gains (237,326) 99,188 Other, Net 14,390 20,778 Changes in Components of Working Capital and Other Assets and Liabilities Accounts Receivable (219,947) 78,283 Inventories (45,354) 4,232 Accounts Payable 221,449 42,830 Accrued Taxes Payable 135,747 (22,834) Other Assets (18,756) (7,780) Other Liabilities (3,397) 2,732 Changes in Components of Working Capital Associated with Investing and Financing Activities 14,389 (44,314) Net Cash Provided by Operating Activities 3,599,686 2,152,445 Investing Cash Flows Additions to Oil and Gas Properties (3,532,343) (2,472,902) Additions to Other Property, Plant and Equipment (320,699) (204,000) Proceeds from Sales of Assets 369,669 43,972 Changes in Components of Working Capital Associated with Investing Activities (14,501) 44,325 Other, Net (1,316) (3,966) Net Cash Used in Investing Activities (3,499,190) (2,592,571) Financing Cash Flows Long-Term Debt Borrowings 750,000 610,000 Long-Term Debt Repayments (38,000) (60,000) Dividends Paid (81,453) (61,253) Redemptions of Preferred Stock (5,395) (10,641) Excess Tax Benefits from Stock-Based Compensation 69,824 17,422 Treasury Stock Purchased (11,266) (6,497) Proceeds from Stock Options Exercised and Employee Stock Purchase Plan 67,414 32,747 Debt Issuance Costs (6,704) (4,752) Other, Net 112 (11) Net Cash Provided by Financing Activities 744,532 517,015 Effect of Exchange Rate Changes on Cash (13,282) 6,800 Increase in Cash and Cash Equivalents 831,746 83,689 Cash and Cash Equivalents at Beginning of Period 54,231 218,255 Cash and Cash Equivalents at End of Period $885,977 $301,944 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 nine-month periods ended September 30 reported Net Income Available to Common Stockholders (GAAP) to reflect actual net cash realized from financial commodity price transactions by eliminating the unrealized mark-to-market (gains) losses from these transactions and for the gain on the sale of Appalachian assets. 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 Nine Months Ended September 30, Ended September 30, 2008 2007 2008 2007 Reported Net Income Available to Common Stockholders (GAAP) $1,556,285 $202,366 $1,975,004 $725,221 Mark-to-Market (MTM) Commodity Derivative Contracts Impact Total Gains (1,381,733) (43,591) (69,067) (47,893) Realized (Losses) Gains (122,467) 33,308 (237,326) 99,188 Subtotal (1,504,200) (10,283) (306,393) 51,295 After Tax MTM Impact (967,953) (6,617) (197,164) 33,008 Less: Gain on Sale of Appalachian Assets, Net of Tax - - (84,748) - Adjusted Net Income Available to Common Stockholders (Non-GAAP) $588,332 $195,749 $1,693,092 $758,229 Net Income Per Share Available to Common Stockholders (GAAP) Basic $6.30 $0.83 $8.02 $2.98 Diluted $6.20 $0.82 $7.88 $2.93 Adjusted Net Income Per Share Available to Common Stockholders (Non-GAAP) Basic $2.38 $0.80 $6.87 $3.12 Diluted $2.34 $0.79 $6.75 $3.07 Average Number of Shares Outstanding Basic 247,155 243,486 246,343 243,140 Diluted 250,930 247,425 250,765 247,275 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 nine-month periods ended September 30 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 and Other Assets and Liabilities, Changes in Components of Working Capital Associated with Investing and Financing Activities and Preferred Stock Dividends. EOG management uses this information for comparative purposes within the industry.
Quarter Nine Months Ended September 30, Ended September 30, 2008 2007 2008 2007 Net Cash Provided by Operating Activities (GAAP) $1,537,065 $725,829 $3,599,686 $2,152,445 Adjustments Exploration Costs (excluding Stock- Based Compensation Expenses) 32,818 35,268 131,909 96,842 Changes in Components of Working Capital and Other Assets and Liabilities Accounts Receivable (175,579) (57,549) 219,947 (78,283) Inventories 36,178 (6,708) 45,354 (4,232) Accounts Payable 34,046 (28,179) (221,449) (42,830) Accrued Taxes Payable (228,485) 49,025 (135,747) 22,834 Other Assets (42,867) 3,097 18,756 7,780 Other Liabilities (5,043) (18,224) 3,397 (2,732) Changes in Components of Working Capital Associated with Investing and Financing Activities (15,164) 23,843 (14,389) 44,314 Preferred Stock Dividends - (1,637) (443) (3,502) Discretionary Cash Flow Available to Common Stockholders (Non-GAAP) $1,172,969 $724,765 $3,647,021 $2,192,636 EOG RESOURCES, INC. QUANTITATIVE RECONCILIATION OF NET DEBT (Non-GAAP) AND TOTAL CAPITALIZATION (Non-GAAP) AS USED IN THE CALCULATION OF THE NET DEBT-TO-TOTAL CAPITALIZATION RATIO TO CURRENT AND LONG-TERM DEBT (GAAP) AND TOTAL CAPITALIZATION (GAAP) (Unaudited; in millions, except ratio information)
The following chart reconciles Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation. 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 Net Debt-to-Total Capitalization ratio calculation. EOG management uses this information for comparative purposes within the industry.
09/30/2008 12/31/2007 Total Stockholders' Equity (GAAP) - (a) $8,920 $6,990 Current and Long-Term Debt (GAAP) - (b) 1,897 1,185 Less: Cash (GAAP) (886) (54) Net Debt (Non-GAAP) - (c) 1,011 1,131 Total Capitalization (Non-GAAP) - (a) + (c) $9,931 $8,121 Total Capitalization (GAAP) - (a) + (b) $10,817 $8,175 Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)] 10% 14% Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)] 18% 14%
SOURCE EOG Resources, Inc.
Contact: CONTACT: Investors, Maire A. Baldwin, +1-713-651-6EOG or +1-713-651-6364; or Media and Investors, Elizabeth M. Ivers, +1-713-651-7132, both of EOG Resources, Inc.