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EOG Resources Reports 2008 Results and Increases Dividend
- Recorded 26 Percent Return on Capital Employed
- Delivered 15 Percent Total Company Year-Over-Year Organic Production Growth - Reported Progress in Barnett Oil, Bakken Extension and Haynesville Plays
- Posted Total Reserve Replacement of 228 Percent at Attractive Finding Costs - Defines 2009 Operations Strategy
- Increases Dividend on Common Stock
PRNewswire-FirstCall
HOUSTON

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FOR IMMEDIATE RELEASE: Wednesday, February 4, 2009

HOUSTON - EOG Resources, Inc. (EOG) today reported fourth quarter 2008 net income available to common stockholders of $461.5 million, or $1.84 per share. This compares to fourth quarter 2007 net income available to common stockholders of $358.0 million, or $1.44 per share. For the full year 2008, EOG reported net income available to common stockholders of $2,436.5 million, or $9.72 per share as compared to $1,083.3 million, or $4.37 per share, for the full year 2007.

The results for the fourth quarter 2008 included a previously disclosed $528.8 million ($340.3 million after tax, or $1.36 per share) net gain on the mark-to-market of financial commodity transactions. During the quarter, the net cash inflow related to financial commodity contracts was $100.7 million ($64.8 million after tax, or $0.26 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 $186.0 million, or $0.74 per share. Adjusted non-GAAP net income available to common stockholders for the fourth quarter 2007 was $319.4 million, or $1.29 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 2008 was $1,879.1 million, or $7.50 per share, and for the full year 2007 was $1,074.2 million, or $4.34 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

Meeting the full year production growth target set in February 2008, EOG posted strong operational results by increasing total company production 15 percent over 2007, all organic. Crude oil production increased by 46 percent, driven primarily by continued drilling success from the North Dakota Bakken Play.

Stepping outside its established footprint in the natural gas area of the Fort Worth Basin Barnett Shale, EOG also reported strong test results from the Barnett Crude Oil Play (retitled the Barnett Combo Play). EOG has a dominant acreage position in the Barnett Combo, an oil play with a liquids rich natural gas stream. During the second half of 2008, drilling efforts were focused on defining acreage limits and testing wells with various completion methodologies. A total of 22 horizontal wells were completed during the second half of the year with average daily initial production rates of 300 barrels of crude oil, 130 barrels of natural gas liquids and 940 thousand cubic feet of associated natural gas. EOG recently commissioned its natural gas processing plant for this area, which will allow the company to move into development mode. EOG plans to drill 60 Barnett Combo wells in 2009.

During the past year EOG drilled five successful exploratory oil wells in the North Dakota Bakken outside its core area, the Parshall Field. By applying the same horizontal drilling and enhanced completion technology to this extension called the North Dakota Bakken Lite, EOG increased the potential for crude oil reserves on its acreage and added several years to its drilling inventory. EOG's total position in both the North Dakota Bakken Core and Bakken Lite was approximately 400,000 net acres at year-end 2008.

Testing the Haynesville Shale in North Louisiana, EOG drilled two horizontal wells on its acreage during 2008. The Martin Timber #2H tested at a rate of 17.4 million cubic feet per day (MMcfd), gross with 4,700 psi flowing tubing pressure. The Bedsole 27#1H tested at a rate of 17.5 MMcfd, gross with 7,400 psi flowing tubing pressure. EOG has 100 and 57 percent working interest in the wells, respectively. Due to pipeline limitations, the wells are currently producing at a combined restricted rate of 17 MMcfd until additional infrastructure is in place. EOG has estimated net reserve potential of 3 to 4 trillion cubic feet of natural gas on its 116,000 net acres and expects to drill 14 Haynesville wells in 2009.

"EOG had an outstanding year in 2008. We delivered conclusive results on the targets we laid out early last year and made significant progress in developing new plays such as the Horn River, Haynesville and Marcellus," said Mark G. Papa, Chairman and CEO. "With our consistent philosophy and focus on returns, we again reported very strong return on capital employed - 26 percent for the year."

For the 10-year period ended 2008, EOG reported return on capital employed (ROCE) of 20 percent. On a non-GAAP net income basis, EOG reported ROCE of 20 percent for 2008. (Please refer to the attached tables for the calculation of ROCE and the related reconciliations of after-tax interest expense (non-GAAP), adjusted net income (non-GAAP) and net debt (non-GAAP), as used in the calculations of ROCE, to interest expense (GAAP), net income (GAAP) and current and long-term debt (GAAP).)

Reserves

At December 31, 2008, total company reserves were approximately 8.7 trillion cubic feet equivalent, an increase of 944 billion cubic feet equivalent (Bcfe), or 12 percent higher than year-end 2007. In 2008:

  --  Total reserve replacement from all sources - the ratio of net reserve
      additions from drilling, acquisitions, total revisions and
      dispositions to total production - was 228 percent at a total reserve
      replacement cost of $2.60 per thousand cubic feet equivalent (Mcfe).
  --  In the United States, EOG added 1,703 Bcfe of reserves from drilling
      and acquisitions, net of total revisions, with capital expenditures of
      $4,295 million, excluding gathering systems, processing plant and
      other expenditures.  Total reserve replacement from all sources was
      270 percent at a reserve replacement cost of $2.52 per Mcfe.
  --  Excluding the impact of price related revisions of 75 Bcfe due to
      lower natural gas and crude oil prices, total reserve replacement was
      238 percent at a reserve replacement cost of $2.50 per Mcfe.  Price
      related revisions were based on year-end 2008 benchmark Henry Hub
      natural gas pricing of $5.71 per million British thermal unit and
      year-end benchmark West Texas Intermediate crude oil pricing of $44.60
      per barrel as posted on the New York Mercantile Exchange, as compared
      to year-end 2007 pricing of $6.80 and $95.98, respectively.  (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 21st consecutive year, internal reserve estimates were within 5 percent of those prepared by the independent reserve engineering firm of DeGolyer and MacNaughton (D&M). For 2008, D&M prepared a complete independent engineering analysis of properties containing 79 percent of EOG's proved reserves on a Bcfe basis.

"We are pleased with our 2008 results. We did not have any significant property impairments or any meaningful price related reserve revisions. This speaks to the efficacy of EOG's long-term conservative strategy of growing production organically while focusing on returns," said Papa.

Capital Structure

At December 31, 2008, EOG's total debt outstanding was $1,897 million for a debt-to-total capitalization ratio of 17 percent. Taking into account cash on the balance sheet of $331 million, at the end of the year EOG's net debt was $1,566 million and the net debt-to-total capitalization ratio was 15 percent. (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).)

2009 Operational Plans and Targets

In response to the current weakness in commodity prices, EOG has structured this year's operational plan with the goal of keeping its year-end 2009 net debt relatively flat with that of year-end 2008. While remaining flexible, EOG's production growth targets and the capital expenditure program will be a function of cash flow generation and reinvestment rates of return. Based on the current futures market for natural gas and crude oil, EOG plans to execute a total capital program of approximately $3.1 billion in 2009, of which $2.85 billion will be allocated to exploration and development activities, to generate approximately 3 percent total company organic production growth. The production increases will be driven by United States crude oil and natural gas liquids production.

In the North Dakota Bakken, EOG is temporarily reducing roughly half of its crude oil and associated natural gas production. This moderation is in response to current low crude oil prices coupled with high transportation costs related to trucking and correspondingly wide commodity price differentials due to location. Resumption of full production in this area will depend upon the strengthening of hydrocarbon prices and the development of crude oil transportation alternatives.

"With natural gas and crude oil prices thus far in 2009 reflecting a worldwide decline in demand, EOG's long-term strategy of profitability and maintaining a strong balance sheet gives us the flexibility to successfully weather diverse economic cycles. Although we plan to keep capital expenditures in line with cash flow during 2009, we will balance that with an active horizontal exploration program to set us up for an expected rebound in commodity prices in 2010," said Papa.

Dividend Increase

Following two increases during 2008, EOG's Board of Directors has again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2009 to holders of record as of April 16, 2009, the quarterly dividend on the common stock will be $0.145 per share, an increase of 7 percent over the previous indicated annual rate. The indicated annual rate of $0.58 per share is the tenth increase in 10 years.

Conference Call Scheduled for February 5, 2009

EOG's fourth quarter and full year 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 Thursday, February 5, 2009. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through Thursday, February 19, 2009.

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 and projections regarding EOG's future financial position, operations, performance, business strategy, budgets, reserve information, levels of production and costs and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "goal," "may," "will" 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 EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production or 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 reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that these expectations will be achieved or will prove to have been correct. Moreover, EOG's forward-looking statements may be affected by known and unknown risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's 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 prices for natural gas, crude oil
      and related commodities;
  --  changes in demand for natural gas, crude oil and related commodities,
      including ammonia and methanol;
  --  the extent to which EOG is successful in its efforts to discover,
      develop, market and produce reserves and to acquire natural gas and
      crude oil properties;
  --  the extent to which EOG can optimize reserve recovery and economically
      develop its plays utilizing horizontal and vertical drilling and
      advanced completion technologies;
  --  the extent to which EOG is successful in its efforts to economically
      develop its acreage in the Barnett Shale, the Bakken Formation, its
      Horn River Basin and Haynesville plays and its other exploration and
      development areas;
  --  EOG's ability to achieve anticipated production levels from existing
      and future natural gas and crude oil development projects, given the
      risks and uncertainties inherent in drilling, completing and operating
      natural gas and crude oil wells and the potential for interruptions of
      production, whether involuntary or intentional as a result of market
      or other conditions;
  --  the availability, proximity and capacity of, and costs associated
      with, gathering, processing, compression and transportation
      facilities;
  --  the availability, cost, terms and timing of issuance or execution of,
      and competition for, mineral licenses and leases and governmental and
      other permits and rights of way;
  --  competition in the oil and gas exploration and production industry for
      employees and other personnel, equipment, materials and services and,
      related thereto, the availability and cost of employees and other
      personnel, equipment, materials and services;
  --  EOG's ability to obtain access to surface locations for drilling and
      production facilities;
  --  the extent to which EOG's third party-operated natural gas and crude
      oil properties are operated successfully and economically;
  --  EOG's ability to effectively integrate acquired natural gas and crude
      oil properties into its operations, fully identify existing and
      potential problems with respect to such properties and accurately
      estimate reserves, production and costs with respect to such
      properties;
  --  weather, including its impact on natural gas and crude oil demand, and
      weather-related delays in drilling and in the installation and
      operation of gathering and production facilities;
  --  the ability of EOG's customers and other contractual counterparties to
      satisfy their obligations to EOG and, related thereto, to access the
      credit and capital markets to obtain financing needed to satisfy their
      obligations to EOG;
  --  EOG's ability to access the commercial paper market and other credit
      and capital markets to obtain financing on terms it deems acceptable,
      if at all;
  --  the accuracy of reserve estimates, which by their nature involve the
      exercise of professional judgment and may therefore be imprecise;
  --  the timing and extent of changes in foreign currency exchange rates,
      interest rates, inflation rates, global and domestic financial market
      conditions and global and domestic general economic conditions;
  --  the extent and effect of any hedging activities engaged in by EOG;
  --  the timing and impact of liquefied natural gas imports;
  --  the use of competing energy sources and the development of alternative
      energy sources;
  --  political developments around the world, including in the areas in
      which EOG operates;
  --  changes in government policies, legislation and regulations, including
      environmental regulations;
  --  the extent to which EOG incurs uninsured losses and liabilities;
  --  acts of war and terrorism and responses to these acts; and
  --  the other factors described under Item 1A, "Risk Factors", on pages 13
      through 16 of EOG's Annual Report on Form 10-K for the fiscal year
      ended December 31, 2007 and any updates to those factors set forth in
      EOG's subsequent Quarterly Reports on Form 10-Q.


In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and you should not place any undue reliance on any of EOG's forward-looking statements. 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) currently 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 the 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 www.sec.gov.

                        EOG RESOURCES, INC.
                         FINANCIAL REPORT
                         ----------------
          (Unaudited; in millions, except per share data)


                               Quarter           Twelve Months
                          Ended December 31,   Ended December 31,
                          ------------------   ------------------
                            2008      2007       2008       2007
                            ----      ----       ----       ----
  Net Operating
   Revenues             $1,633.7  $1,286.0   $7,127.1   $4,239.3
                        ========  ========   ========   ========
  Net Income
   Available to Common
   Stockholders           $461.5    $358.0   $2,436.5   $1,083.3
                          ======    ======   ========   ========
  Net Income Per Share
   Available to Common
   Stockholders
    Basic                  $1.86     $1.46      $9.88      $4.45
                           =====     =====      =====      =====
    Diluted                $1.84     $1.44      $9.72      $4.37
                           =====     =====      =====      =====
  Average Number of
   Shares Outstanding
    Basic                  247.7     244.4      246.7      243.5
                           =====     =====      =====      =====
    Diluted                250.2     248.5      250.5      247.6
                           =====     =====      =====      =====



                     SUMMARY INCOME STATEMENTS
                     -------------------------
                     (Unaudited; in thousands)


                              Quarter           Twelve Months
                         Ended December 31,   Ended December 31,
                         ------------------   ------------------
                           2008      2007       2008       2007
                           ----      ----       ----       ----
  Net Operating Revenues
    Natural Gas         $814,733  $836,515 $4,452,058 $3,032,805
    Crude Oil,
     Condensate and
     Natural Gas
     Liquids             275,883   335,690  1,769,926    987,523
    Gains on Mark-to-
     Market Commodity
     Derivative
     Contracts           528,844    45,215    597,911     93,108
    Gathering,
     Processing and
     Marketing            13,628    42,462    164,535     73,539
    Other, Net               639    26,102    142,713     52,328
                             ---    ------    -------     ------
      Total            1,633,727 1,285,984  7,127,143  4,239,303
                       --------- ---------  ---------  ---------
  Operating Expenses
    Lease and Well       162,891   123,856    559,185    452,044
    Transportation
     Costs                70,885    42,784    274,090    152,236
    Gathering and
     Processing Costs     14,165     8,359     40,550     27,775
    Exploration Costs     48,489    44,005    193,886    150,445
    Dry Hole Costs        27,105    40,710     55,167    115,382
    Impairments           79,268    60,657    192,859    147,517
    Marketing Costs       12,431    39,248    152,842     66,680
    Depreciation,
     Depletion and
     Amortization        368,135   282,234  1,326,875  1,065,545
    General and
     Administrative       58,249    66,047    243,708    205,210
    Taxes Other Than
     Income               40,930    58,267    320,796    208,073
                          ------    ------    -------    -------
      Total              882,548   766,167  3,359,958  2,590,907
                         -------   -------  ---------  ---------

  Operating Income       751,179   519,817  3,767,185  1,648,396

  Other Income, Net        2,257     7,014     31,012     29,250
                           -----     -----     ------     ------

  Income Before
   Interest Expense
   and Income Taxes      753,436   526,831  3,798,197  1,677,646

  Interest Expense,
   Net                    18,343    15,751     51,658     46,778
                          ------    ------     ------     ------

  Income Before
   Income Taxes          735,093   511,080  3,746,539  1,630,868

  Income Tax Provision   273,621   149,885  1,309,620    540,950
                         -------   -------  ---------    -------

  Net Income             461,472   361,195  2,436,919  1,089,918

  Preferred Stock
   Dividends                   -     3,161        443      6,663
                             ---     -----        ---      -----

  Net Income
   Available to Common
   Stockholders         $461,472  $358,034 $2,436,476 $1,083,255
                        ========  ======== ========== ==========



                         EOG RESOURCES, INC.
                        OPERATING HIGHLIGHTS
                        --------------------
                            (Unaudited)

                                        Quarter      Twelve Months
                                         Ended          Ended
                                      December 31,    December 31,
                                     -------------   -------------
                                      2008    2007    2008    2007
                                      ----    ----    ----    ----
  Wellhead Volumes and Prices
  ---------------------------
  Natural Gas Volumes (MMcfd) (A)
    United States                    1,231   1,010   1,162     971
    Canada                             231     225     222     224
    Trinidad                           184     241     218     252
    Other International (B)             18      20      17      23
                                        --      --      --      --
      Total                          1,664   1,496   1,619   1,470

  Average Natural Gas Prices
   ($/Mcf) ©
    United States                    $5.65   $6.48   $8.22   $6.27
    Canada                            5.71    6.36    7.64    6.25
    Trinidad                          2.53    3.84    3.58    2.71
    Other International (B)           6.23    9.45    8.18    6.19
      Composite                       5.32    6.08    7.51    5.65

  Crude Oil and Condensate Volumes
   (MBbld) (A)
    United States                     50.4    27.6    39.5    24.6
    Canada                             2.7     2.3     2.7     2.4
    Trinidad                           2.5     3.8     3.2     4.1
    Other International (B)            0.1     0.1     0.1     0.1
                                       ---     ---     ---     ---
      Total                           55.7    33.8    45.5    31.2

  Average Crude Oil and Condensate
   Prices ($/Bbl) ©
    United States                   $46.03  $84.83  $87.68  $68.85
    Canada                           45.60   79.98   89.70   65.27
    Trinidad                         47.67   78.37   92.90   69.84
    Other International (B)          84.33   86.70   99.30   66.84
      Composite                      46.12   83.77   88.18   68.69

  Natural Gas Liquids Volumes
   (MBbld) (A)
    United States                     15.9    13.7    15.0    11.1
    Canada                             0.9     1.1     1.0     1.1
                                       ---     ---     ---     ---
      Total                           16.8    14.8    16.0    12.2

  Average Natural Gas Liquids
   Prices ($/Bbl) ©
    United States                   $26.45  $56.27  $53.33  $47.63
    Canada                           30.08   53.18   54.77   44.54
      Composite                      26.65   56.04   53.42   47.36

  Natural Gas Equivalent Volumes
   (MMcfed) (D)
    United States                    1,629   1,257   1,490   1,184
    Canada                             253     246     244     245
    Trinidad                           199     264     237     276
    Other International (B)             18      20      17      24
                                        --      --      --      --
      Total                          2,099   1,787   1,988   1,729

  Total Bcfe (D)                     193.1   164.4   727.6   631.3


  (A)  Million cubic feet per day or thousand barrels per day,
       as applicable.
  (B)  Other International includes EOG's United Kingdom operations
       and, effective July 1, 2008, EOG's China operations.
  ©  Dollars per thousand cubic feet or per barrel, as applicable.
  (D)  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)


                                                 December 31,  December 31,
                                                      2008          2007
                                                      ----          ----

                                    ASSETS
  Current Assets
    Cash and Cash Equivalents                      $331,311       $54,231
    Accounts Receivable, Net                        722,695       835,670
    Inventories                                     187,970       102,322
    Assets from Price Risk Management
     Activities                                     779,483       100,912
    Income Taxes Receivable                          27,053       110,370
    Deferred Income Taxes                                 -        33,533
    Other                                            59,939        55,001
                                                     ------        ------
         Total                                    2,108,451     1,292,039

  Property, Plant and Equipment
    Oil and Gas Properties (Successful
     Efforts Method)                             20,803,629    16,981,836
    Other Property, Plant and Equipment           1,057,888       581,402
                                                  ---------       -------
        Total Property, Plant and Equipment      21,861,517    17,563,238
    Less:  Accumulated Depreciation,
     Depletion and Amortization                  (8,204,215)   (7,133,984)
                                                 ----------    ----------
        Total Property, Plant and Equipment,
         Net                                     13,657,302    10,429,254
  Long-Term Assets Held for Sale                          -       254,376
  Other Assets                                      185,473       113,238
                                                    -------       -------
  Total Assets                                  $15,951,226   $12,088,907
                                                ===========   ===========

                     LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                             $1,122,209    $1,152,140
    Accrued Taxes Payable                            86,265       104,647
    Dividends Payable                                33,461        22,045
    Liabilities from Price Risk Management
     Activities                                       4,429         3,404
    Deferred Income Taxes                           368,231       108,980
    Current Portion of Long-Term Debt                37,000             -
    Other                                           113,321        82,954
                                                    -------        ------
         Total                                    1,764,916     1,474,170


  Long-Term Debt                                  1,860,000     1,185,000
  Other Liabilities                                 498,291       368,336
  Deferred Income Taxes                           2,813,522     2,071,307

  Stockholders' Equity
    Preferred Stock, $0.01 Par, Zero Shares
     and 10,000,000 Shares
     Authorized at December 31, 2008
     and 2007, respectively:
        Series B, Cumulative, $1,000 Liquidation
         Preference per Share,
         Zero Shares and 5,000 Shares
         Outstanding at December 31,
         2008 and 2007, respectively                      -         4,977
    Common Stock, $0.01 Par, 640,000,000 Shares
     Authorized:
      249,758,577 Shares and 249,460,000 Shares
       Issued at December 31, 2008 and 2007,
       respectively                                 202,498       202,495
    Additional Paid In Capital                      323,805       221,102
    Accumulated Other Comprehensive Income           27,787       466,702
    Retained Earnings                             8,466,143     6,156,721
    Common Stock Held in Treasury, 126,911 Shares
     and 2,935,313 Shares at December 31, 2008
     and 2007, respectively                          (5,736)      (61,903)
                                                     ------       -------
           Total Stockholders' Equity             9,014,497     6,990,094
                                                  ---------     ---------
  Total Liabilities and Stockholders' Equity    $15,951,226   $12,088,907
                                                ===========   ===========



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

                                                        Twelve Months
                                                     Ended December 31,
                                                     ------------------
                                                       2008        2007
                                                       ----        ----
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net Cash
   Provided by Operating Activities:
    Net Income                                    $2,436,919  $1,089,918
    Items Not Requiring (Providing) Cash
      Depreciation, Depletion and Amortization     1,326,875   1,065,545
      Impairments                                    192,859     147,517
      Stock-Based Compensation Expenses               97,493      67,253
      Deferred Income Taxes                        1,133,630     426,827
      Other, Net                                    (138,392)    (44,138)
    Dry Hole Costs                                    55,167     115,382
    Mark-to-Market Commodity Derivative Contracts
      Total Gains                                   (597,911)    (93,108)
      Realized (Losses) Gains                       (136,625)    127,969
    Other, Net                                        13,229      24,268
    Changes in Components of Working Capital and
     Other Assets and Liabilities
      Accounts Receivable                             95,165     (85,024)
      Inventories                                    (92,049)      9,638
      Accounts Payable                                30,253     228,354
      Accrued Taxes Payable                           66,021     (40,002)
      Other Assets                                   (10,715)     (8,416)
      Other Liabilities                                9,061      12,614
    Changes in Components of Working Capital
     Associated with Investing and
     Financing Activities                            152,269    (143,594)
                                                     -------    --------
  Net Cash Provided by Operating Activities        4,633,249   2,901,003

  Investing Cash Flows
    Additions to Oil and Gas Properties           (4,718,860) (3,401,986)
    Additions to Other Property, Plant and
     Equipment                                      (476,611)   (277,076)
    Proceeds from Sales of Assets                    383,559      83,295
    Changes in Components of Working Capital
     Associated with Investing Activities           (152,374)    143,668
    Other, Net                                        (2,232)     (3,675)
                                                      ------      ------
  Net Cash Used in Investing Activities           (4,966,518) (3,455,774)

  Financing Cash Flows
    Long-Term Debt Borrowings                        750,000     610,000
    Long-Term Debt Repayments                        (38,000)   (158,442)
    Dividends Paid                                  (115,204)    (84,020)
    Redemptions of Preferred Stock                    (5,395)    (51,197)
    Excess Tax Benefits from Stock-Based
     Compensation                                      6,446      27,339
    Treasury Stock Purchased                         (17,834)     (7,638)
    Proceeds from Stock Options Exercised and
     Employee Stock Purchase Plan                     72,572      55,320
    Debt Issuance Costs                               (7,585)     (5,206)
    Other, Net                                           105         (71)
                                                         ---         ---
  Net Cash Provided by Financing Activities          645,105     386,085

  Effect of Exchange Rate Changes on Cash            (34,756)      4,662
                                                     -------       -----

  Increase (Decrease) in Cash and Cash Equivalents   277,080    (164,024)
  Cash and Cash Equivalents at Beginning of Period    54,231     218,255
                                                      ------     -------
  Cash and Cash Equivalents at End of Period        $331,311     $54,231
                                                    ========     =======



                               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, 2008 and 2007, 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 from these transactions and to eliminate the gain on the sale of
  Appalachian assets in the first quarter of 2008, to add the premium and
  fees for preferred stock redemptions in the third and fourth quarter of
  2007, and to eliminate the effect of the income tax rate reductions
  enacted by the Canadian federal government in the second and fourth
  quarters of 2007.  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               Twelve Months
                             Ended December 31,       Ended December 31,
                             ------------------       ------------------
                             2008          2007       2008          2007
                             ----          ----       ----          ----

  Reported Net Income
   Available to Common
   Stockholders (GAAP)       $461,472  $358,034  $2,436,476    $1,083,255

  Mark-to-Market (MTM)
   Commodity Derivative
   Contracts Impact
    Total Gains              (528,844)  (45,215)   (597,911)      (93,108)
    Realized Gains (Losses)   100,701    28,782    (136,625)      127,969
                              -------    ------    --------       -------
       Subtotal              (428,143)  (16,433)   (734,536)       34,861
                             --------   -------    --------        ------

    After Tax MTM Impact     (275,510)  (10,575)   (472,674)       22,433
                             --------   -------    --------        ------

  Add:  Premium and Fees
   for Preferred Stock
   Redemptions                      -     2,296           -         2,937
  Less:  Gain on Sale of
   Appalachian Assets, Net
   of Tax                           -         -     (84,748)            -
  Less:  Tax Benefit
   Related to Canadian
   Federal Tax Rate
   Reduction                        -   (30,338)          -       (34,419)
                                  ---   -------         ---       -------


  Adjusted Net Income
   Available to Common
   Stockholders (Non-GAAP)   $185,962  $319,417  $1,879,054    $1,074,206
                             ========  ========  ==========    ==========

  Net Income Per Share
   Available to Common
   Stockholders (GAAP)
    Basic                       $1.86     $1.46       $9.88         $4.45
                                =====     =====       =====         =====
    Diluted                     $1.84     $1.44       $9.72         $4.37
                                =====     =====       =====         =====

  Adjusted Net Income Per
   Share Available to Common
   Stockholders (Non-GAAP)
    Basic                       $0.75     $1.31       $7.62         $4.41
                                =====     =====       =====         =====
    Diluted                     $0.74     $1.29       $7.50         $4.34
                                =====     =====       =====         =====

  Average Number of Shares
   Outstanding
    Basic                     247,672   244,440     246,662       243,469
                              =======   =======     =======       =======
    Diluted                   250,162   248,537     250,542       247,637
                              =======   =======     =======       =======



                              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, 2008 and 2007, 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             Twelve Months
                                 Ended December 31,     Ended December 31,
                                 ------------------     ------------------
                                 2008          2007     2008          2007
                                 ----          ----     ----          ----
  Net Cash Provided by
   Operating Activities
   (GAAP)                      $1,033,563  $748,558 $4,633,249  $2,901,003

  Adjustments
    Exploration Costs
     (excluding Stock-Based
     Compensation Expenses)        43,448    40,275    175,357     137,117
    Changes in Components of
     Working Capital and Other
     Assets and Liabilities
      Accounts Receivable        (315,112)  163,307    (95,165)     85,024
      Inventories                  46,695    (5,406)    92,049      (9,638)
      Accounts Payable            191,196  (185,524)   (30,253)    228,354)
      Accrued Taxes Payable        69,726    17,168    (66,021)     40,002
      Other Assets                 (8,041)      636     10,715       8,416
      Other Liabilities           (12,458)   (9,882)    (9,061)    (12,614)
    Changes in Components of
     Working Capital Associated
     with Investing and
     Financing Activities        (137,880)   99,280   (152,269)    143,594
    Preferred Stock Dividends           -    (3,161)      (443)     (6,663)
                                      ---    ------       ----      ------

  Discretionary Cash Flow
   Available to Common
   Stockholders (Non-GAAP)       $911,137  $865,251  $4,558,158 $3,057,887
                                 ========  ========  ========== ==========



                              EOG RESOURCES, INC.
   QUANTITATIVE RECONCILIATION OF AFTER-TAX INTEREST EXPENSE (Non-GAAP) AND
   ------------------------------------------------------------------------
      NET DEBT (Non-GAAP) AS USED IN THE CALCULATION OF RETURN ON CAPITAL
      -------------------------------------------------------------------
        EMPLOYED (ROCE) TO INTEREST EXPENSE (GAAP) AND CURRENT AND
         ---------------------------------------------------------
                      LONG-TERM DEBT (GAAP), RESPECTIVELY
                      -----------------------------------
                  (Unaudited; in millions, except ratio data)

  The following chart reconciles Interest Expense (GAAP) and Current and
  Long-Term Debt (GAAP) to After-Tax Interest Expense (Non-GAAP) and Net
  Debt (Non-GAAP), respectively, as used in the Return on Capital Employed
  (ROCE) calculation.  EOG believes this presentation may be useful to
  investors who follow the practice of some industry analysts who utilize
  After-Tax Interest Expense and Net Debt in their ROCE calculation.  EOG
  management uses this information for comparative purposes within the
  industry.

                                       1998      1999       2000      2001
                                       ----      ----       ----      ----

  Interest Expense                              $61.8      $61.0     $45.1
  Tax Benefit Imputed (based on 35%)            (21.6)     (21.4)    (15.8)
                                                -----      -----     -----
  After-Tax Interest Expense
  (Non-GAAP) - (a)                              $40.2      $39.6     $29.3
                                                =====      =====     =====

  Net Income - (b)                             $569.1     $396.9    $398.6

  Total Stockholders'
   Equity - (c)                    $1,280.3  $1,129.6   $1,380.9  $1,642.7

  Current and Long-Term Debt        1,142.8     990.3      859.0     856.0
  Less: Cash                           (6.3)    (24.8)     (20.2)     (2.5)
                                       ----     -----      -----      ----
  Net Debt (Non-GAAP) - (d)         1,136.5     965.5      838.8     853.5
                                    -------     -----      -----     -----

  Total Capitalization
  (Non-GAAP) - (c) + (d)           $2,416.8  $2,095.1   $2,219.7  $2,496.2
                                   ========  ========   ========  ========

  Average Total Capitalization
  (Non-GAAP)* - (e)                          $2,256.0   $2,157.4  $2,358.0
                                             ========   ========  ========


  Return on Capital Employed
  (ROCE) - [(a) + (b)] / (e)                     27.0%      20.2%     18.1%
                                                 ====       ====      ====

  Average ROCE 1999 - 2008


                                       2002      2003       2004      2005
                                       ----      ----       ----      ----

  Interest Expense                    $59.7     $58.7      $63.1     $62.5
  Tax Benefit Imputed (based on 35%)  (20.9)    (20.5)     (22.1)    (21.9)
                                      -----     -----      -----     -----
  After-Tax Interest Expense
  (Non-GAAP) - (a)                    $38.8     $38.2      $41.0     $40.6
                                      =====     =====      =====     =====

  Net Income - (b)                    $87.2    $430.1     $624.9  $1,259.6

  Total Stockholders'
   Equity - (c)                    $1,672.4  $2,223.4   $2,945.4  $4,316.3

  Current and Long-Term Debt        1,145.1   1,108.9    1,077.6     985.1
  Less: Cash                           (9.8)     (4.4)     (21.0)   (643.8)
                                       ----      ----      -----    ------
  Net Debt (Non-GAAP) - (d)         1,135.3   1,104.5    1,056.6     341.3
                                    -------   -------    -------     -----

  Total Capitalization
  (Non-GAAP) - (c) + (d)           $2,807.7  $3,327.9   $4,002.0  $4,657.6
                                   ========  ========   ========  ========

  Average Total Capitalization
  (Non-GAAP)* - (e)                $2,652.0  $3,067.8   $3,665.0  $4,329.8
                                   ========  ========   ========  ========


  Return on Capital Employed
  (ROCE) - [(a) + (b)] / (e)            4.8%     15.3%      18.2%     30.0%
                                        ===      ====       ====      ====

  Average ROCE 1999 - 2008



                                       2006      2007       2008
                                       ----      ----       ----

  Interest Expense                    $43.2     $46.8      $51.7
  Tax Benefit Imputed (based on 35%)  (15.1)    (16.4)     (18.1)
                                      -----     -----      -----
  After-Tax Interest Expense
  (Non-GAAP) - (a)                    $28.1     $30.4      $33.6
                                      =====     =====      =====

  Net Income - (b)                 $1,299.9  $1,089.9   $2,436.9

  Total Stockholders'
   Equity - (c)                    $5,599.7  $6,990.1   $9,014.5

  Current and Long-Term Debt          733.4   1,185.0    1,897.0
  Less: Cash                         (218.3)    (54.2)    (331.3)
                                     ------     -----     ------
  Net Debt (Non-GAAP) - (d)           515.1   1,130.8    1,565.7
                                      -----   -------    -------

  Total Capitalization
  (Non-GAAP) - (c) + (d)           $6,114.8  $8,120.9  $10,580.2
                                   ========  ========  =========

  Average Total Capitalization
  (Non-GAAP)* - (e)                $5,386.2  $7,117.9   $9,350.6
                                   ========  ========   ========


  Return on Capital Employed
  (ROCE) - [(a) + (b)] / (e)           24.7%     15.7%      26.4%
                                       ====      ====       ====

  Average ROCE 1999 - 2008                                  20.0%
                                                            ====

  *Average of "Total Capitalization (Non-GAAP)" for the current and
  immediately preceding year



                          EOG RESOURCES, INC.
          QUANTITATIVE RECONCILIATION OF AFTER-TAX INTEREST EXPENSE
          ---------------------------------------------------------
      (Non-GAAP), NET DEBT (Non-GAAP) AND ADJUSTED NET INCOME (Non-GAAP)
      ------------------------------------------------------------------
        AS USED IN THE CALCULATIONS OF RETURN ON CAPITAL EMPLOYED (ROCE)
        ----------------------------------------------------------------
        TO INTEREST EXPENSE (GAAP), CURRENT AND LONG-TERM DEBT (GAAP) AND
        -----------------------------------------------------------------
                    NET INCOME (GAAP), RESPECTIVELY
                    --------------------------------
              (Unaudited; in millions, except ratio data)

  The following chart reconciles Interest Expense (GAAP), Current and
  Long-Term Debt (GAAP) and Net Income (GAAP) to After-Tax Interest
  Expense (Non-GAAP), Net Debt (Non-GAAP) and Adjusted Net Income
  (Non-GAAP), respectively, as used in the Return on Capital Employed
  (ROCE) calculations.  EOG believes this presentation may be useful to
  investors who follow the practice of some industry analysts who
  utilize After-Tax Interest Expense, Net Debt and Adjusted Net Income in
  their ROCE calculations.  EOG management uses this information for
  comparative purposes within the industry.

                                                       2007         2008
                                                       ----         ----

  Interest Expense                                                 $51.7
  Tax Benefit Imputed (based on 35%)                               (18.1)
                                                                   -----
  After-Tax Interest Expense (Non-GAAP) - (a)                      $33.6
                                                                   =====

  Reported Net Income - (b)                                     $2,436.9
  After-Tax Mark-to-Market Impact                                 (472.7)
  After-Tax Gain on Sale of Appalachian Assets                     (84.7)
                                                                   -----
  Adjusted Net Income (Non-GAAP) (c)                            $1,879.5
                                                                ========

  Total Stockholders' Equity - (d)                 $6,990.1     $9,014.5

  Current and Long-Term Debt                       $1,185.0     $1,897.0
  Less: Cash                                          (54.2)      (331.3)
                                                      -----       ------
  Net Debt (Non-GAAP) - (e)                        $1,130.8     $1,565.7
                                                   ========     ========

  Total Capitalization  (Non-GAAP) - (d) + (e)     $8,120.9    $10,580.2
                                                   ========    =========

  Average Total Capitalization (Non-GAAP)* - (f)                $9,350.6
                                                                ========

  Return on Capital Employed (ROCE) - GAAP
     Net Income [(a) + (b)] / (f)                                   26.4%
                                                                    ====


  Return on Capital Employed (ROCE) - Non-GAAP
     Adjusted Net Income [(a) + (c)] / (f)                          20.5%
                                                                    ====

  * Average of "Total Capitalization (Non-GAAP)" for the current and
    immediately preceding year



                              EOG RESOURCES, INC.
                           RESERVES SUPPLEMENTAL DATA
                           --------------------------
                                  (Unaudited)

  2008 NET PROVED RESERVES RECONCILIATION SUMMARY
                                     United              North
  NATURAL GAS (Bcf)                  States    Canada   America  Trinidad
                                     ------    ------   -------  --------
  Beginning Reserves                 4,220.1  1,219.8   5,439.9   1,216.3
  Revisions                           (110.3)    22.9     (87.4)     62.2
  Purchases in place                    31.0     15.0      46.0         -
  Extensions, discoveries and
   other additions                   1,384.4     60.6   1,445.0         -
  Sales in place                      (200.2)       -    (200.2)        -
  Production                          (436.0)   (81.1)   (517.1)    (80.4)
                                      ------    -----    ------     -----

  Ending Reserves                    4,889.0  1,237.2   6,126.2   1,198.1
                                     =======  =======   =======   =======

  LIQUIDS (MMBbls) (a)
  Beginning Reserves                   160.0     10.4     170.4       8.9
  Revisions                             (1.6)     0.9      (0.7)      0.4
  Purchases in place                       -        -         -       0.2
  Extensions, discoveries and
   other additions                      67.9      0.9      68.8         -
  Sales in place                        (0.5)       -      (0.5)        -
  Production                           (20.0)    (1.4)    (21.4)     (1.2)
                                       -----     ----     -----      ----

  Ending Reserves                      205.8     10.8     216.6       8.3
                                       =====     ====     =====       ===

  NATURAL GAS EQUIVALENTS (Bcfe)
  Beginning Reserves                 5,180.2  1,282.0   6,462.2   1,269.7
  Revisions                           (119.9)    28.1     (91.8)     64.7
  Purchases in place                    31.1     15.0      46.1       1.1
  Extensions, discoveries and
   other additions                   1,791.6     66.1   1,857.7         -
  Sales in place                      (203.2)       -    (203.2)        -
  Production                          (555.8)   (89.2)   (645.0)    (87.4)
                                      ------    -----    ------     -----

  Ending Reserves                    6,124.0  1,302.0   7,426.0   1,248.1
                                     =======  =======   =======   =======


  Net Proved Developed Reserves (Bcfe)
    At December 31, 2007             3,861.5  1,140.3   5,001.8     960.0
    At December 31, 2008             4,502.3  1,166.2   5,668.5     929.6

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


  2008 EXPLORATION AND DEVELOPMENT EXPENDITURES ($ in millions)

  Acquisition Cost of Unproved
   Properties                         $376.0   $141.1    $517.1      $0.3
  Exploration Costs                    550.7     95.6     646.3       6.7
  Development Costs                  3,298.5    243.1   3,541.6      70.7
                                     -------    -----   -------      ----

  Total Drilling                     4,225.2    479.8   4,705.0      77.7

  Acquisition Cost of Proved
   Properties                           69.6     14.1      83.7      14.8
                                        ----     ----      ----      ----

  Total Exploration & Development
   Expenditures                      4,294.8    493.9   4,788.7      92.5

  Gathering, Processing and Other      474.6      1.2     475.8       0.3
  Asset Retirement Costs               107.1     38.4     145.5      28.7
                                       -----     ----     -----      ----

  Total Expenditures                 4,876.5    533.5   5,410.0     121.5

  Proceeds from Sales in Place        (419.1)    (3.8)   (422.9)        -
                                      ------     ----    ------         -

  Net Expenditures                  $4,457.4   $529.7  $4,987.1    $121.5
                                    ========   ======  ========    ======


  RESERVE REPLACEMENT COSTS ($ / Mcfe) *
  Total Drilling, Before Revisions     $2.36    $7.26     $2.53        $-
  All-in Total, Net of Revisions       $2.52    $4.52     $2.64     $1.41

  RESERVE REPLACEMENT *
  Drilling Only                          322%      74%      288%        0%
  All-in Total, Net of Revisions
   & Dispositions                        270%     122%      249%       75%

  * See attached reconciliation schedule for calculation methodology


                                       Other    Total
  NATURAL GAS (Bcf)                    Int'l    Int'l     Total
                                       -----    -----     -----
  Beginning Reserves                    12.9  1,229.2   6,669.1
  Revisions                             (4.2)    58.0     (29.4)
  Purchases in place                    12.2     12.2      58.2
  Extensions, discoveries and other
   additions                               -        -   1,445.0
  Sales in place                           -        -    (200.2)
  Production                            (6.0)   (86.4)   (603.5)
                                        ----    -----    ------

  Ending Reserves                       14.9  1,213.0   7,339.2
                                        ====  =======   =======

  LIQUIDS (MMBbls) (a)
  Beginning Reserves                       -      8.9     179.3
  Revisions                                -      0.4      (0.3)
  Purchases in place                     0.1      0.3       0.3
  Extensions, discoveries and
   other additions                         -        -      68.8
  Sales in place                           -        -      (0.5)
  Production                               -     (1.2)    (22.6)
                                           -     ----     -----

  Ending Reserves                        0.1      8.4     225.0
                                         ===      ===     =====

  NATURAL GAS EQUIVALENTS (Bcfe)
  Beginning Reserves                    13.2  1,282.9   7,745.1
  Revisions                             (4.3)    60.4     (31.4)
  Purchases in place                    12.5     13.6      59.7
  Extensions, discoveries and
   other additions                         -        -   1,857.7
  Sales in place                           -        -    (203.2)
  Production                            (6.1)   (93.5)   (738.5)
                                        ----    -----    ------

  Ending Reserves                       15.3  1,263.4   8,689.4
                                        ====  =======   =======


  Net Proved Developed Reserves (Bcfe)
    At December 31, 2007                13.2    973.2   5,975.0
    At December 31, 2008                15.3    944.9   6,613.4

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


  2008 EXPLORATION AND DEVELOPMENT EXPENDITURES ($ in million)

  Acquisition Cost of Unproved
   Properties                           $3.4     $3.7    $520.8
  Exploration Costs                     16.7     23.4     669.7
  Development Costs                        -     70.7   3,612.3
                                           -     ----   -------

  Total Drilling                        20.1     97.8   4,802.8

  Acquisition Cost of Proved
   Properties                           10.3     25.1     108.8
                                        ----     ----     -----

  Total Exploration & Development
   Expenditures                         30.4    122.9   4,911.6

  Gathering, Processing and Other        0.4      0.7     476.5
  Asset Retirement Costs                 7.2     35.9     181.4
                                         ---     ----     -----

  Total Expenditures                    38.0    159.5   5,569.5

  Proceeds from Sales in Place             -        -    (422.9)
                                           -        -    ------

  Net Expenditures                     $38.0   $159.5  $5,146.6
                                       =====   ======  ========


  RESERVE REPLACEMENT COSTS ($ / Mcfe) *
  Total Drilling, Before Revisions        $-       $-     $2.59
  All-in Total, Net of Revisions          $-    $1.66     $2.60

  RESERVE REPLACEMENT *
  Drilling Only                            -        0%      252%
  All-in Total, Net of Revisions &
   Dispositions                            -       79%      228%

  * 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 costs.
  EOG has not included future capital costs to develop proved undeveloped
  reserves in Total Exploration & Development Expenditures



                                    United             North
                                    States   Canada   America  Trinidad
                                    ------   ------   -------  --------
  Total Costs Incurred in
   Exploration and Development
   Activities (GAAP)              $4,401.9  $532.3  $4,934.2    $121.2

  Less: Asset Retirement Costs      (107.1)  (38.4)   (145.5)    (28.7)
  Less: Acquisition Cost
   of Proved Properties              (69.6)  (14.1)    (83.7)    (14.8)
                                     -----   -----     -----     -----

  Total Exploration & Development
   Expenditures for Drilling
   Only (Non-GAAP) (a)            $4,225.2  $479.8  $4,705.0     $77.7
                                  ========  ======  ========     =====

  Total Costs Incurred in
   Exploration and Development
   Activities (GAAP)              $4,401.9  $532.3  $4,934.2    $121.2

  Less: Asset Retirement Costs      (107.1)  (38.4)   (145.5)    (28.7)
                                    ------   -----    ------     -----

  Total Exploration & Development
   Expenditures (Non-GAAP) (b)    $4,294.8  $493.9  $4,788.7     $92.5
                                  ========  ======  ========     =====

  Net Reserve Additions From
   All Sources
  - Natural Gas
   Equivalents (Bcfe)
  Revisions due to price (c)        (154.9)  (19.7)   (174.6)     99.6
  Revisions other than price          35.0    47.8      82.8     (34.9)
  Purchases in place                  31.1    15.0      46.1       1.1
  Extensions, discoveries
   and other additions (d)         1,791.6    66.1   1,857.7         -
                                   -------    ----   -------       ---

  Total Reserve Additions (e)      1,702.8   109.2   1,812.0      65.8

  Sales in place                    (203.2)      -    (203.2)        -
                                    ------     ---    ------       ---

  Net Reserve Additions From
   All Sources (f)                 1,499.6   109.2   1,608.8      65.8
                                   =======   =====   =======      ====

  Production (g)                     555.8    89.2     645.0      87.4

  RESERVE REPLACEMENT COSTS
   ($ / Mcfe)
  Total Drilling, Before
   Revisions (a / d)                 $2.36   $7.26     $2.53        $-
  All-in Total, Net of
   Revisions (b / e)                 $2.52   $4.52     $2.64     $1.41
  All-in Total, Excluding
   Revisions Due to Price
   (b / (e - c))                     $2.31   $3.83     $2.41    $(2.74)

  RESERVE REPLACEMENT
  Drilling Only (d / g)                322%     74%      288%        -
  All-in Total, Net of Revisions
  & Dispositions (f / g)               270%    122%      249%       75%
  All-in Total, Excluding
   Revisions Due to Price
   ((f - c) / g)                       298%    145%      276%      -39%


                                           Other   Total
                                           Int'l   Int'l    Total
                                           -----   -----    -----
  Total Costs Incurred in Exploration and
    Development Activities (GAAP)          $37.6  $158.8  $5,093.0

  Less: Asset Retirement Costs              (7.2)  (35.9)   (181.4)
  Less: Acquisition Cost of Proved
   Properties                              (10.3)  (25.1)   (108.8)
                                           -----   -----    ------

  Total Exploration & Development
   Expenditures for Drilling
   Only (Non-GAAP) (a)                     $20.1   $97.8  $4,802.8
                                           =====   =====  ========

  Total Costs Incurred in Exploration and
    Development Activities (GAAP)          $37.6  $158.8  $5,093.0

  Less: Asset Retirement Costs              (7.2)  (35.9)   (181.4)
                                            ----   -----    ------

  Total Exploration & Development
   Expenditures (Non-GAAP) (b)             $30.4  $122.9  $4,911.6
                                           =====  ======  ========

  Net Reserve Additions From All Sources
   - Natural Gas Equivalents (Bcfe)
  Revisions due to price (c)                   -    99.6     (75.0)
  Revisions other than price                (4.3)  (39.2)     43.6
  Purchases in place                        12.5    13.6      59.7
  Extensions, discoveries and other
   additions (d)                               -       -   1,857.7
                                             ---      ---   -------

  Total Reserve Additions (e)                8.2    74.0   1,886.0

  Sales in place                               -       -    (203.2)
                                             ---     ---    ------

  Net Reserve Additions From All
   Sources (f)                               8.2    74.0   1,682.8
                                             ===    ====   =======

  Production (g)                             6.1    93.5     738.5

  RESERVE REPLACEMENT COSTS ($ / Mcfe)
  Total Drilling, Before
   Revisions (a / d)                          $-      $-     $2.59
  All-in Total, Net of Revisions (b / e)      $-   $1.66     $2.60
  All-in Total, Excluding Revisions
  Due to Price (b / (e - c))               $3.71  $(4.80)    $2.50

  RESERVE REPLACEMENT
  Drilling Only (d / g)                        -       -       252%
  All-in Total, Net of Revisions &
   Dispositions (f / g)                        -      79%      228%
  All-in Total, Excluding Revisions
  Due to Price ((f - c) / g)                 134%    -27%      238%



                             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.



                                                    12/31/2008  12/31/2007
                                                    ----------  ----------

  Total Stockholders' Equity (GAAP) - (a)             $9,014      $6,990

  Current and Long-Term Debt (GAAP) - (b)              1,897       1,185
  Less: Cash (GAAP)                                     (331)        (54)
                                                        ----         ---
  Net Debt (Non-GAAP) - (c)                            1,566       1,131
                                                       -----       -----

  Total Capitalization (Non-GAAP) - (a) + (c)        $10,580      $8,121
                                                     =======      ======

  Total Capitalization (GAAP) - (a) + (b)            $10,911      $8,175
                                                     =======      ======

  Net Debt-to-Total Capitalization (Non-GAAP) -
   (c) / [(a) + (c)]                                      15%         14%
                                                          ==          ==

  Debt-to-Total Capitalization (GAAP) - (b) /
   [(a) + (b)]                                            17%         14%
                                                          ==          ==

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

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

 

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