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EOG Resources Reports Second Quarter 2009 Results
-- Increases 2009 Liquids Production Growth Target from 22 to 25 Percent and Maintains 2010 Liquids Production Growth Target of 20 Percent
-- Increases Acreage Position in the Fort Worth Barnett Combo Play
-- Announces Strong Results from Fort Worth Barnett Combo, North Dakota Bakken and Manitoba Waskada Liquids Plays
-- Reports High Rate Haynesville Natural Gas Wells
PRNewswire-FirstCall
HOUSTON

Click here for PDF version

FOR IMMEDIATE RELEASE: Thursday, August 6, 2009

HOUSTON - EOG Resources, Inc. (EOG) today reported its second quarter 2009 operating and financial results. For the second quarter, EOG reported a net loss available to common stockholders of $16.7 million, or $0.07 per share. This compares to second quarter 2008 net income available to common stockholders of $178.2 million, or $0.71 per share.

The results for the second quarter 2009 included a previously disclosed $33.6 million ($21.6 million after tax, or $0.09 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 $344.8 million ($221.9 million after tax, or $0.89 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 $183.6 million, or $0.73 per share. Adjusted non-GAAP net income available to common stockholders for the second quarter 2008 was $631.7 million, or $2.52 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 (loss) available to common stockholders.)

Operational Highlights and Targets

EOG continues to adapt and apply its horizontal gas drilling and completion expertise to develop unconventional crude oil and liquids rich reservoirs. Positive drilling results were reported recently from its three primary areas of focus in North America - the Fort Worth Barnett Combo, North Dakota Bakken and Manitoba Waskada.

  • In the Fort Worth Barnett Combo Play where drilling operations are planned in multi-well packages to maximize resource potential, three Bowen wells, the A#1H, A#2H and B#1H, began sales at individual production rates ranging from 150 to 400 barrels of oil per day (Bopd) with 1.2 to 1.6 million cubic feet per day (MMcfd) of liquids rich natural gas. EOG has 100 percent working interest in the wells. The Seibold Unit #3H and #4H wells were completed at gross rates of 500 Bopd with 1.8 MMcfd and 550 Bopd with 1.2 MMcfd, respectively. EOG has 96 percent working interest in the wells. The Tunnicliff B#1H and B#2H were also brought to sales at 400 Bopd each with 3.0 and 1.8 MMcfd, respectively. EOG has 100 percent working interest in the wells. While EOG is currently operating a four-rig drilling program, it plans to increase its activity level to seven rigs later in the year. Subsequent to the second quarter, EOG completed the acquisition of 25,000 net unproved acres and approximately 2,000 net barrels of oil equivalents per day of production in Montague and Cooke Counties for $134 million, comprised of cash and shares of EOG common stock. EOG currently holds approximately 194,000 net acres in Montague and Cooke Counties. 
  • With six rigs operating across its 500,000 total net acreage position in the North Dakota Bakken, EOG is drilling in both the Core and Lite areas. With initial production rates of 1,700 and 1,600 Bopd, respectively, the Austin #17-20H and #20-29H are characteristic of previously completed Bakken Core wells. EOG has 63 and 75 percent working interest in the wells, respectively. EOG further extended the productive limits of its acreage beyond the Core area with the Ross #7-17H and Sidonia #1-06H. Drilled in the Bakken Lite, the wells began initial production at 500 and 700 Bopd, respectively. EOG has 100 and 44 percent working interest in these wells, respectively. In total, EOG plans to drill 17 gross wells in the Bakken Lite area during 2009 and an additional 58 gross wells in the Bakken Core.
  • In Manitoba, EOG reported excellent well results from the development of its Waskada Oil Field. Thirteen wells were completed with average peak month production rates of approximately 200 Bopd per well. EOG has 100 percent working interest in the wells.

"Through our application of horizontal drilling and completion technology, EOG has developed a solid early mover position in economic crude oil and liquids rich resource plays," said Mark G. Papa, Chairman and CEO. "The results from our exploration efforts in these types of reservoirs clearly position EOG as the dominant player in both the Core and Lite areas of the North Dakota Bakken, as well as in the Fort Worth Barnett Combo and Manitoba's Waskada Field."

Reflecting ongoing success from its portfolio of crude oil and liquids rich plays, EOG increased its full year 2009 total company liquids production growth target from 22 to 25 percent and maintained its 20 percent growth target for 2010.

EOG has a deep inventory of natural gas prospects and reported excellent drilling results in the United States. With four rigs operating in the Haynesville, EOG reported notable initial production rates from five wells recently completed in DeSoto Parish. The Johnson 6#1 and DN Bell #1 flowed at initial gross production rates of 14.3 and 14.4 MMcfd of natural gas, respectively. EOG has 64 and 100 percent working interest in the wells, respectively. The Thompson 11#1 was completed at a gross rate of 14.9 MMcfd. EOG has 70 percent working interest in the well. The Lafitte 34 #1 and Billingsley 35 #1 began sales at gross rates of 15.7 and 14.6 MMcfd, respectively. EOG has 65 and 63 percent working interest in the wells, respectively.

EOG also announced the Conwy crude oil discovery in Block 110/12 off the western coast of the United Kingdom in the East Irish Sea. Drilled to approximately 2,900 feet in June, the well has estimated net recoverable reserves of 11 million barrels of oil that can be developed at attractive economic rates of return. Beginning later this year, EOG plans to drill two additional exploration wells with initial production targeted for early 2012. EOG is the operator and has 100 percent working interest in the block.

"Our strong operational results from the quarter are consistent with EOG's corporate strategy - add more crude oil and liquids assets to complement our already strong natural gas portfolio, lead the industry in horizontal completions and maintain a focus on returns," said Papa.

Third Quarter and Full Year 2009 Forecast

Based on current data, forecast and benchmark commodity pricing information for the third quarter and full year 2009 are included in the accompanying table. EOG continues to target 5.5 percent total company organic production growth in 2009 over 2008, contingent on storage limitations in the North American natural gas market and the impact on natural gas prices.

Conference Call Scheduled for August 7, 2009

EOG's second quarter 2009 results conference call will be available via live audio webcast at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) on Friday, August 7, 2009. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through Friday, August 21, 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 and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG."

This press release (including the accompanying forecast and benchmark commodity pricing information) 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 19 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 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, 2008, 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)


                              Three Months Ended     Six Months Ended
                                   June 30,              June 30,
                                   --------              --------
                               2009        2008       2009        2008
                               ----        ----       ----        ----

  Net Operating Revenues      $861.0    $1,095.5    $2,019.2   $2,229.5
                              ======    ========    ========   ========
  Net Income (Loss)
   Available to Common
   Stockholders               $(16.7)     $178.2      $142.0     $418.7
                              ======      ======      ======     ======
  Net Income (Loss) Per Share
   Available to Common
   Stockholders
    Basic                     $(0.07)      $0.72       $0.57      $1.70
                              ======       =====       =====      =====
    Diluted                   $(0.07)      $0.71       $0.57      $1.67
                              ======       =====       =====      =====
  Average Number of Shares
   Outstanding
    Basic                      248.2       246.5       248.1      246.0
                               =====       =====       =====      =====
    Diluted                    248.2       251.1       250.5      250.6
                               =====       =====       =====      =====



                         SUMMARY INCOME STATEMENTS
                         -------------------------
             (Unaudited; in thousands, except per share data)


                            Three Months Ended      Six Months Ended
                                  June 30,              June 30,
                                  --------              --------
                              2009        2008       2009        2008
                              ----        ----       ----        ----
  Net Operating Revenues
    Natural Gas             $460,044  $1,340,557  $1,027,622 $2,378,195
    Crude Oil, Condensate
     and Natural Gas
     Liquids                 287,134     524,793     487,462    919,641
    Gains (Losses) on Mark-
     to-Market Commodity
     Derivative Contracts     33,570    (842,822)    384,953 (1,312,666)
    Gathering, Processing
     and Marketing            77,284      63,777     115,126     99,762
    Other, Net                 3,007       9,207       4,085    144,598
                               -----       -----       -----    -------
      Total                  861,039   1,095,512   2,019,248  2,229,530
                             -------   ---------   ---------  ---------
  Operating Expenses
    Lease and Well           134,599     129,949     280,105    254,056
    Transportation Costs      66,011      63,102     134,873    125,069
    Gathering and
     Processing Costs         13,521       8,922      31,234     17,281
    Exploration Costs         34,307      59,511      83,930    107,454
    Dry Hole Costs            33,643       6,785      36,637     15,213
    Impairments               47,046      48,875     112,517     81,449
    Marketing Costs           74,050      62,986     106,003     96,031
    Depreciation,
     Depletion and
     Amortization            375,592     315,294     764,921    612,493
    General and
     Administrative           58,760      61,640     116,706    114,566
    Taxes Other Than Income   23,492      95,345      70,892    182,095
                              ------      ------      ------    -------
      Total                  861,021     852,409   1,737,818  1,605,707
                             -------     -------   ---------  ---------

  Operating Income                18     243,103     281,430    623,823

  Other Income, Net            1,237      13,309       2,976     14,892
                               -----      ------       -----     ------

  Income Before Interest
   Expense and Income Taxes    1,255     256,412     284,406    638,715

  Interest Expense, Net       24,811       9,029      43,187     21,220
                              ------       -----      ------     ------

  Income (Loss) Before
   Income Taxes              (23,556)    247,383     241,219    617,495

  Income Tax Provision
   (Benefit)                  (6,850)     69,177      99,215    198,333
                              ------      ------      ------    -------

  Net Income (Loss)          (16,706)    178,206     142,004    419,162

  Preferred Stock Dividends        -           -           -        443
                                 ---         ---         ---        ---

  Net Income (Loss)
   Available to Common
   Stockholders             $(16,706)   $178,206    $142,004   $418,719
                            ========    ========    ========   ========

  Dividends Declared per
   Common Share               $0.145      $0.120      $0.290     $0.240
                              ======      ======      ======     ======



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

                                      Three Months    Six Months
                                         Ended          Ended
                                        June 30,       June 30,
                                        --------       --------
                                      2009    2008   2009    2008
                                      ----    ----   ----    ----
  Wellhead Volumes and Prices
  ---------------------------
  Natural Gas Volumes (MMcfd) (A)
    United States                     1,139   1,139  1,167   1,112
    Canada                              225     215    227     215
    Trinidad                            266     217    264     224
    Other International (B)              15      12     15      15
                                         --      --     --      --
      Total                           1,645   1,583  1,673   1,566
                                      =====   =====  =====   =====

  Average Natural Gas Prices
   ($/Mcf) ©
    United States                     $3.37  $10.36  $3.72   $9.23
    Canada                             3.40    9.42   3.92    8.42
    Trinidad                           1.51    3.64   1.42    3.76
    Other International (B)            3.55    9.95   4.84    9.89
      Composite                        3.07    9.31   3.39    8.34

  Crude Oil and Condensate Volumes
   (MBbld) (A)
    United States                      42.9    35.4   43.8    33.0
    Canada                              2.9     2.6    3.1     2.5
    Trinidad                            3.0     3.2    3.0     3.4
    Other International (B)             0.1       -    0.1       -
                                        ---     ---    ---     ---
      Total                            48.9    41.2   50.0    38.9
                                       ====    ====   ====    ====

  Average Crude Oil and Condensate
   Prices ($/Bbl) ©
    United States                    $52.82 $117.60 $42.85 $105.78
    Canada                            52.52  112.55  44.53  101.41
    Trinidad                          47.50  113.29  40.49   99.92
    Other International (B)           46.75  114.40  46.73   96.84
      Composite                       52.47  116.94  42.82  104.97

  Natural Gas Liquids Volumes
   (MBbld) (A)
    United States                      22.1    14.2   21.9    15.5
    Canada                              1.0     0.9    1.1     0.9
                                        ---     ---    ---     ---
      Total                            23.1    15.1   23.0    16.4
                                       ====    ====   ====    ====

  Average Natural Gas Liquids
   Prices ($/Bbl) ©
    United States                    $25.60  $63.62 $23.88  $60.19
    Canada                            25.60   66.39  25.56   61.52
      Composite                       25.60   63.78  23.96   60.26

  Natural Gas Equivalent Volumes
   (MMcfed) (D)
    United States                     1,529   1,437  1,561   1,403
    Canada                              249     236    252     236
    Trinidad                            284     236    282     244
    Other International (B)              15      12     16      15
                                         --      --     --      --
      Total                           2,077   1,921  2,111   1,898
                                      =====   =====  =====   =====

  Total Bcfe (D)                      189.0   174.8  382.1   345.4

  (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 and
       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 and condensate or natural gas liquids.



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


                                                  June 30,    December 31,
                                                    2009          2008
                                                    ----          ----

                                    ASSETS
  Current Assets
    Cash and Cash Equivalents                     $706,964      $331,311
    Accounts Receivable, Net                       570,262       722,695
    Inventories                                    243,614       187,970
    Assets from Price Risk Management
     Activities                                    606,595       779,483
    Income Taxes Receivable                         19,078        27,053
    Other                                           63,763        59,939
                                                    ------        ------
         Total                                   2,210,276     2,108,451

  Property, Plant and Equipment
    Oil and Gas Properties (Successful
     Efforts Method)                            22,292,107    20,803,629
    Other Property, Plant and Equipment          1,172,546     1,057,888
                                                 ---------     ---------
        Total Property, Plant and Equipment     23,464,653    21,861,517
    Less:  Accumulated Depreciation,
     Depletion and Amortization                 (9,018,974)   (8,204,215)
                                                ----------    ----------
        Total Property, Plant and Equipment,
         Net                                    14,445,679    13,657,302
  Other Assets                                     136,797       185,473
                                                   -------       -------
  Total Assets                                 $16,792,752   $15,951,226
                                               ===========   ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                              $720,053    $1,122,209
    Accrued Taxes Payable                           78,470        86,265
    Dividends Payable                               35,983        33,461
    Liabilities from Price Risk Management
     Activities                                     11,758         4,429
    Deferred Income Taxes                          213,413       368,231
    Current Portion of Long-Term Debt               37,000        37,000
    Other                                           92,943       113,321
                                                    ------       -------
         Total                                   1,189,620     1,764,916


  Long-Term Debt                                 2,760,000     1,860,000
  Other Liabilities                                550,339       498,291
  Deferred Income Taxes                          3,033,271     2,813,522
  Commitments and Contingencies

  Stockholders' Equity
    Common Stock, $0.01 Par, 640,000,000
      Shares Authorized and 250,528,510
      Shares Issued at June 30, 2009 and
      249,758,577 Shares Issued at December
      31, 2008                                     202,505       202,498
    Additional Paid In Capital                     395,128       323,805
    Accumulated Other Comprehensive Income         130,503        27,787
    Retained Earnings                            8,535,559     8,466,143
    Common Stock Held in Treasury, 76,279
      Shares at June 30, 2009 and 126,911
      Shares at December 31, 2008                   (4,173)       (5,736)
                                                    ------        ------
           Total Stockholders' Equity            9,259,522     9,014,497
                                                 ---------     ---------
  Total Liabilities and Stockholders' Equity   $16,792,752   $15,951,226
                                               ===========   ===========



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

                                                      Six Months Ended
                                                          June 30,
                                                          --------
                                                      2009        2008
                                                      ----        ----
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net Cash
   Provided by Operating Activities:
    Net Income                                      $142,004    $419,162
    Items Not Requiring (Providing) Cash
      Depreciation, Depletion and Amortization       764,921     612,493
      Impairments                                    112,517      81,449
      Stock-Based Compensation Expenses               48,479      44,566
      Deferred Income Taxes                           62,161     123,330
      Other, Net                                       1,689    (127,693)
    Dry Hole Costs                                    36,637      15,213
    Mark-to-Market Commodity Derivative Contracts
      Total (Gains) Losses                          (384,953)  1,312,666
      Realized Gains (Losses)                        655,740    (114,859)
    Other, Net                                         6,865       9,077
    Changes in Components of Working Capital and
     Other Assets and Liabilities
      Accounts Receivable                            149,021    (395,526)
      Inventories                                    (22,151)     (9,176)
      Accounts Payable                              (414,823)    255,495
      Accrued Taxes Payable                          (17,743)    (92,738)
      Other Assets                                    (7,487)    (61,623)
      Other Liabilities                              (24,842)     (8,440)
    Changes in Components of Working Capital
      Associated with Investing and Financing
      Activities                                     169,183        (775)
                                                     -------        ----
  Net Cash Provided by Operating Activities        1,277,218   2,062,621

  Investing Cash Flows
    Additions to Oil and Gas Properties           (1,433,591) (2,144,769)
    Additions to Other Property, Plant and
     Equipment                                      (151,845)   (196,353)
    Proceeds from Sales of Assets                        828     354,413
    Changes in Components of Working Capital
     Associated with Investing Activities           (169,101)        648
    Other, Net                                         1,384     (20,429)
                                                       -----     -------
  Net Cash Used in Investing Activities           (1,752,325) (2,006,490)

  Financing Cash Flows
    Long-Term Debt Borrowing                         900,000           -
    Long-Term Debt Repayments                              -     (38,000)
    Dividends Paid                                   (69,516)    (51,647)
    Redemption of Preferred Stock                          -      (5,395)
    Excess Tax Benefits from Stock-Based
     Compensation                                     21,874      55,552
    Treasury Stock Purchased                          (6,125)     (6,865)
    Proceeds from Stock Options Exercised and
     Employee Stock Purchase Plan                      8,026      48,509
    Debt Issuance Costs                               (8,741)          -
    Other, Net                                           (82)        127
                                                         ---         ---
  Net Cash Provided by Financing Activities          845,436       2,281

  Effect of Exchange Rate Changes on Cash              5,324      (4,542)
                                                       -----      ------

  Increase in Cash and Cash Equivalents              375,653      53,870
  Cash and Cash Equivalents at Beginning of
   Period                                            331,311      54,231
                                                     -------      ------
  Cash and Cash Equivalents at End of Period        $706,964    $108,101
                                                    ========    ========



                       EOG RESOURCES, INC.
       QUANTITATIVE RECONCILIATION OF ADJUSTED NET INCOME
       --------------------------------------------------
           AVAILABLE TO COMMON STOCKHOLDERS (Non-GAAP)
       --------------------------------------------------
  TO NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS (GAAP)
  ------------------------------------------------------------
        (Unaudited; in thousands, except per share data)


  The following chart adjusts three-month and six-month periods ended June
  30, 2009 and 2008 reported Net Income (Loss) 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 to eliminate the gain on the
  sale of EOG's Appalachian assets in the first quarter of 2008.  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.


                     Three Months Ended     Six Months Ended
                           June 30,             June 30,
                           --------             --------
                        2009      2008      2009        2008
                        ----      ----      ----        ----

  Reported Net
   Income (Loss)
   Available to
   Common
   Stockholders
   (GAAP)            $(16,706) $178,206  $142,004    $418,719

  Mark-to-Market
   (MTM) Commodity
   Derivative
   Contracts Impact
    Total (Gains)
     Losses           (33,570)  842,822  (384,953)  1,312,666
    Realized Gains
     (Losses)         344,776  (138,069)  655,740    (114,859)
                      -------  --------   -------    --------
       Subtotal       311,206   704,753   270,787   1,197,807
                      -------   -------   -------   ---------

    After Tax MTM
     Impact           200,261   453,509   174,251     770,789
                      -------   -------   -------     -------

  Less:  Gain on
   Sale of
   Appalachian
   Assets, Net of
   Tax                      -         -         -     (84,748)
                          ---       ---       ---     -------


  Adjusted Net
   Income Available
   to Common
   Stockholders
   (Non-GAAP)        $183,555  $631,715  $316,255  $1,104,760
                     ========  ========  ========  ==========

  Net Income (Loss)
   Per Share
   Available to
   Common
   Stockholders
   (GAAP)
    Basic              $(0.07)    $0.72     $0.57       $1.70
                       ======     =====     =====       =====
    Diluted            $(0.07)    $0.71     $0.57       $1.67
                       ======     =====     =====       =====

  Adjusted Net
   Income Per Share
   Available to
   Common
   Stockholders
   (Non-GAAP)
    Basic               $0.74     $2.56     $1.27       $4.49
                        =====     =====     =====       =====
    Diluted             $0.73     $2.52     $1.26       $4.41
                        =====     =====     =====       =====

  Average Number of
   Shares (GAAP)
    Basic             248,207   246,536   248,095     245,950
                      =======   =======   =======     =======
    Diluted           248,207   251,135   250,499     250,553
                      =======   =======   =======     =======

  Average Number of
   Shares (Non-GAAP)
    Basic             248,207   246,536   248,095     245,950
                      =======   =======   =======     =======
    Diluted           250,703   251,135   250,499     250,553
                      =======   =======   =======     =======



                              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 six-month periods ended
  June 30, 2009 and 2008 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.

                                  Three Months             Six Months
                                  Ended June 30,          Ended June 30,
                                 ----------------        ----------------
                                 2009        2008        2009        2008
                                 ----        ----        ----        ----
  Net Cash Provided by
   Operating Activities
   (GAAP)                      $671,379  $1,135,536  $1,277,218  $2,062,621

  Adjustments
    Exploration Costs
     (excluding Stock-Based
     Compensation Expenses)      29,359      55,168      73,830      99,091
    Changes in Components of
     Working Capital and Other
     Assets and Liabilities
      Accounts Receivable         7,905     217,842    (149,021)    395,526
      Inventories                  (745)     12,461      22,151       9,176
      Accounts Payable           62,201    (162,043)    414,823    (255,495)
      Accrued Taxes Payable      32,221      63,473      17,743      92,738
      Other Assets                8,917      59,878       7,487      61,623
      Other Liabilities           6,772     (13,725)     24,842       8,440
    Changes in Components of
     Working Capital Associated
     with Investing and
     Financing Activities       (30,585)      5,967    (169,183)        775
    Preferred Stock Dividends         -           -           -        (443)
                                    ---         ---         ---        ----

  Discretionary Cash Flow
   Available to Common
   Stockholders (Non-GAAP)     $787,424  $1,374,557  $1,519,890  $2,474,052
                               ========  ==========  ==========  ==========



                             EOG RESOURCES, INC.
          THIRD QUARTER AND FULL YEAR 2009 FORECAST AND BENCHMARK
          -------------------------------------------------------
                              COMMODITY PRICING
                              -----------------

       (a)  Third Quarter and Full Year 2009 Forecast

  The forecast items for the third quarter and full year 2009 set forth
  below for EOG Resources, Inc. (EOG) are based on current available
  information and expectations as of the date of the accompanying press
  release. This forecast replaces and supersedes any previously issued
  guidance or forecast.

       (b) Benchmark Commodity Pricing

  EOG bases United States and Canada natural gas price differentials upon
  the natural gas price at Henry Hub, Louisiana using the simple average of
  the NYMEX settlement prices for the last three trading days of the
  applicable month.

  EOG bases United States, Canada and Trinidad crude oil and condensate
  price differentials upon the West Texas Intermediate crude oil price at
  Cushing, Oklahoma using the simple average of the NYMEX settlement prices
  for each trading day within the applicable calendar month.

                                                   Estimated Ranges
                                                 ---------------------
                                                     (Unaudited)
                                                              Full Year
                                              3Q 2009          2009
                                              -------       ---------
  Daily Production
    Natural Gas (MMcfd)
          United States                  1,110  -  1,135   1,130  -  1,160
          Canada                           200  -    220     215  -    227
          Trinidad                         230  -    255     250  -    265
          Other International                8  -     13      12  -     15
          Total                          1,548  -  1,623   1,607  -  1,667

    Crude Oil and Condensate (MBbld)
          United States                   46.8  -   49.0    45.5  -   47.5
          Canada                           3.5  -    5.0     3.5  -    4.3
          Trinidad                         2.3  -    3.3     2.8  -    3.2
          Total                           52.6  -   57.3    51.8  -   55.0

    Natural Gas Liquids (MBbld)
          United States                   20.0  -   24.4    21.2  -   23.7
          Canada                           0.6  -    1.0     0.9  -    1.0
          Total                           20.6  -   25.4    22.1  -   24.7

    Natural Gas Equivalent Volumes
    (MMcfed)
          United States                  1,511  -  1,575   1,530  -  1,587
          Canada                           224  -    256     241  -    259
          Trinidad                         244  -    275     267  -    284
          Other International                8  -     13      12  -     15
          Total                          1,987  -  2,119   2,050  -  2,145



                                                 Estimated Ranges
                                                 ----------------
                                                    (Unaudited)
                                             3Q 2009       Full Year 2009
                                             -------       --------------
  Operating Costs
    Unit Costs ($/Mcfe)
          Lease and Well                 $0.73  -  $0.77   $0.72  -  $0.76
          Transportation Costs           $0.33  -  $0.36   $0.34  -  $0.36
          Depreciation, Depletion
           and Amortization              $2.03  -  $2.09   $2.01  -  $2.06

  Expenses ($MM)
    Exploration, Dry Hole and
     Impairment                         $125.0  - $135.0  $480.0  - $500.0
    General and Administrative           $64.0     $68.0  $240.0    $248.0
    Gathering and Processing             $13.0  -  $16.0   $58.0  -  $64.0
    Capitalized Interest                 $12.5  -  $16.0   $50.5  -  $58.0
    Net Interest                         $28.0  -  $32.0   $95.0  - $105.0

  Taxes Other Than Income
   (% of Revenue)                          7.0% -    7.5%    5.0% -    6.5%

  Income Taxes
    Effective Rate                          30% -     40%            >  35%
    Current Taxes ($MM)                     $5  -    $10     $50  -    $70

  Capital Expenditures ($MM) -
   FY 2009
    Exploration and Development,
     excluding Acquisitions                        Approximately    $2,900
    Gathering, Processing and Other                Approximately      $280
    Acquisitions                                   Approximately      $140

  Pricing - (Refer to Benchmark
   Commodity Pricing in text)
    Natural Gas ($/Mcf)
      Differentials (include the
       effect of physical contracts)
          United States - below
           NYMEX Henry Hub               $0.25 -  $0.50     $0.35 -  $0.55
          Canada - below
           NYMEX Henry Hub               $0.60 -  $1.00     $0.40 -  $0.80

      Realizations
          Trinidad                       $1.25 -  $1.60     $1.37 -  $1.57
          Other International            $3.40 -  $4.00     $4.10 -  $4.60

    Crude Oil and Condensate ($/Bbl)
      Differentials
          United States - below WTI      $8.00 - $12.00     $8.50 - $10.50
          Canada - below WTI             $4.35 -  $7.50     $4.50 -  $6.50
          Trinidad - below WTI           $8.50 - $12.50     $9.75 - $11.75

  Definitions
  -----------
    $/Bbl    U.S. Dollars per barrel
    $/Mcf    U.S. Dollars per thousand cubic feet
    $/Mcfe   U.S. Dollars per thousand cubic feet equivalent
    $MM      U.S. Dollars in millions
    MBbld    Thousand barrels per day
    MMcfd    Million cubic feet per day
    MMcfed   Million cubic feet equivalent per day
    NYMEX    New York Mercantile Exchange
    WTI      West Texas Intermediate

For Further Information Contact:

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

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

 

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