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EOG Resources Reports 2009 Results and Increases Dividend
- Delivers 6.5 Percent 2009 Year-Over-Year Production Growth
- Reports Consistent Operational Results in Top North American Plays
- Targets 13 Percent Total Company and 47 Percent Liquids Production Growth in 2010
- Posts 364 Percent Total Reserve Replacement at Attractive Finding Costs in 2009
- Increases Dividend on Common Stock for 11th Time in 11 Years
PRNewswire-FirstCall
HOUSTON

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FOR IMMEDIATE RELEASE: Tuesday, February 9, 2010

HOUSTON - EOG Resources, Inc. (EOG) today reported fourth quarter 2009 net income available to common stockholders of $400.4 million, or $1.58 per share. This compares to fourth quarter 2008 net income available to common stockholders of $461.5 million, or $1.84 per share. For the full year 2009, EOG reported net income available to common stockholders of $546.6 million, or $2.17 per share as compared to $2,436.5 million, or $9.72 per share, for the full year 2008.

The results for the fourth quarter 2009 included a non-cash gain on a property exchange in the Rocky Mountain area of $389.6 million ($244.2 million after tax, or $0.97 per share), a gain on sale of assets of $146.5 million ($91.8 million after tax, or $0.36 per share) related to the disposition of crude oil assets and surrounding acreage in California and a previously disclosed non-cash net gain of $25.9 million ($16.7 million after tax, or $0.07 per share) on the mark-to-market of financial commodity transactions. During the quarter, the net cash inflow related to financial commodity contracts was $290.6 million ($186.6 million after tax, or $0.74 per share). Consistent with some analysts' practice of matching realizations to settlement months, and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income available to common stockholders for the quarter was $234.3 million, or $0.92 per share. Adjusted non-GAAP net income available to common stockholders for the fourth quarter 2008 was $186.0 million, or $0.74 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 2009 was $754.5 million, or $3.00 per share, and for the full year 2008 was $1,879.1 million, or $7.50 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.)

2009 Operational Highlights

EOG delivered 6.5 percent total company production growth over 2008. Total liquids production in North America increased 30 percent, comprised of 23 percent growth in crude oil and condensate and 48 percent in natural gas liquids. In the United States, the substantial increase in total liquids production was primarily driven by ongoing exploration and development drilling in the North Dakota Bakken and Fort Worth Barnett Shale Combo Plays.

"Over the last several years, we have channeled a greater amount of EOG's capital expenditure program toward crude oil and liquids-rich opportunities. The resulting increase in our liquids volumes, which is significant, reflects EOG's progress in shifting toward a more balanced mix in our North American production portfolio," said Mark G. Papa, Chairman and Chief Executive Officer.

With a position in excess of 500,000 net acres in the North Dakota Bakken, EOG focused drilling operations on its 100,000 net acres in the Bakken Core during the first part of 2009. As crude oil pricing gradually improved over the course of the year, EOG expanded its drilling program outside of the Parshall Field to its Bakken Lite acreage. Additionally, EOG began testing its first wells in the Three Forks Formation in both the Core Parshall Field and the Bakken Lite. Initial production profiles are encouraging with recoverable reserves expected to be similar to those in the Bakken Lite.

The Van Hook 100-15H, which was drilled in Mountrail County, N.D., tested the Three Forks Formation in the Parshall Field. EOG has 30 percent working interest in the well, which began initial production at a rate of 1,390 barrels of oil per day (Bopd). Also in Mountrail County, EOG drilled two Bakken Lite wells toward the end of the year. The Ross 05-08H began initial production at 370 Bopd with estimated reserves of 350 thousand barrels of oil (Mbo). EOG has 100 percent working interest in the well. To test a longer length lateral, EOG drilled the James Hill 01-31H. The well began initial production at 650 Bopd, in-line with pre-drill expectations. EOG holds 79 percent working interest in this well. Extending the productive area of its acreage, EOG drilled a well in Williams County, 90 miles west of the Parshall Field. The Round Prairie 1-17H, in which EOG has 95 percent working interest, is producing at a stabilized rate of 450 Bopd and is expected to have a similar production profile as a Bakken Lite well.

Having recognized the need for additional crude oil takeaway capacity from the Williston Basin, EOG designed, constructed and placed in service at year-end a rail and pipeline system to transport its crude oil from the core of this prolific basin, Stanley, N.D., to a market hub, Cushing, Okla. This unique transportation solution will improve the pricing and overall economics of EOG's Bakken crude oil production. In addition, EOG's Prairie Rose Pipeline was recently placed in service, which interconnects with a mainline system that transports natural gas to a processing plant near Chicago, Ill.

In an effort to focus on its more geographically concentrated western U.S. drilling operations, EOG divested its non-core California crude oil properties during the fourth quarter.

In the Fort Worth Basin, EOG commissioned a plant in February 2009 that extracts natural gas liquids from the rich natural gas production stream of the Barnett Combo Play. This enabled EOG to move into development drilling of both vertical and horizontal wells in Montague and Cooke Counties. EOG recently completed four vertical wells in Cooke County. The Dangelmayr #5 and B#6 began initial production at rates of 700 Bopd with 450 thousand cubic feet of natural gas per day (Mcfd), and 500 Bopd with 300 Mcfd, respectively. The Fitzgerald #2 and #14 began production at initial rates of 300 Bopd with 200 Mcfd and 450 Bopd with 400 Mcfd, respectively. EOG has 100 percent working interest in the wells. In Montague County, using horizontal technology, EOG recently completed the Boyd B #1H, which began flowing to sales at 300 Bopd with 1,500 Mcfd, and the Flying V #1H, at 250 Bopd with 1,400 Mcfd. EOG has 96 and 100 percent working interest in the wells, respectively. Already realizing the benefits of its refined completion techniques and improved operational efficiencies, EOG is testing optimal well spacing on its Fort Worth Barnett Combo acreage.

In an area where EOG had previously focused on the Haynesville, EOG reported strong production results from its first Bossier natural gas test. The Sustainable Forest 5 - No. 2 Alt., drilled to a vertical depth of 11,400 feet in the Trenton prospect area in DeSoto Parish, La., began producing at 13 million cubic feet per day. EOG has 100 percent working interest in the well that is estimated to have reserves in excess of 8 billion cubic feet. EOG is currently operating five rigs in the Trenton prospect where it is drilling and developing both the Bossier and Haynesville reservoirs concurrently.

2010 Operational Plans and Targets

Carrying the momentum of a strong operational year forward into 2010, EOG continues to target 13 percent total company full year organic production growth over 2009 with a 47 percent increase in total liquids production. The liquids growth will be driven by expanded operations in the North Dakota Bakken where EOG plans to execute an active drilling program in the Bakken Core and Lite, as well as the Three Forks Formation. Also fueling the liquids growth will be an increased level of drilling activity in the Fort Worth Barnett Combo and the Waskada Field in Manitoba.

EOG's North American natural gas production is expected to increase 2 percent over 2009. Plans are to ramp up activity levels in the Haynesville, Bossier and Marcellus Shales during the second half of the year. In the Horn River Basin, EOG will operate an active drilling program in the first half of the year, with the goal of completing and turning wells to sales during the second half of 2010.

Reserves

At December 31, 2009, total company proved reserves were approximately 10.8 trillion cubic feet equivalent, an increase of 2,087 billion cubic feet equivalent (Bcfe), or 24 percent higher than year-end 2008.

For the year-end 2009 reserve report, EOG applied new Securities and Exchange Commission (SEC) rules regarding the estimation of proved natural gas and crude oil reserves. In accordance with those rules, the proved undeveloped reserves (PUDs) category has been revised to allow the use of "reliable technology" to establish "reasonable certainty" of production for drilling locations beyond "one offset" for a producing well. The SEC has also imposed a five-year limit for the development of PUDs unless there is a specific reason for a longer period. Based on this definition and its applicability to large resource plays, EOG has added significant PUDs in the Haynesville, Horn River, Barnett Combo and Marcellus Shale Plays at precisely mapped locations which have been tied back to a plan that is executable within the next five years.

  In 2009:
  --  Total reserve replacement from all sources - the ratio of net reserve
      additions from drilling, acquisitions, total revisions and
      dispositions to total production - was 364 percent at a total reserve
      replacement cost of $1.18 per thousand cubic feet equivalent (Mcfe)
      based on cash exploration and development expenditures of $3,436
      million. (Please refer to the attached tables for the calculation of
      total reserve replacement and total reserve replacement cost.)
  --  In the United States, total reserve replacement from all sources was
      431 percent at a reserve replacement cost of $1.21 per Mcfe based on
      cash exploration and development expenditures of $3,037 million.
      (Please refer to the attached tables for the calculation of total
      reserve replacement and total reserve replacement cost.)
  --  During 2009, price related revisions were negative 786 Bcfe. Excluding
      the impact of price related revisions, total reserve replacement was
      464 percent at a reserve replacement cost of $0.93 per Mcfe.


For the 22nd 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 2009, D&M prepared a complete independent engineering analysis of properties containing 81 percent of EOG's proved reserves on a Bcfe basis.

Capital Structure

At December 31, 2009, EOG's total debt outstanding was $2,797 million for a debt-to-total capitalization ratio of 22 percent. Taking into account cash on the balance sheet of $686 million, at the end of the year EOG's net debt was $2,111 million and the net debt-to-total capitalization ratio was 17 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).)

"We expect our year-end net debt-to-total capital ratio of 17 percent will be among the lowest of our peer group," said Papa. "This accomplishment, coupled with our 10-year average ROCE of 18 percent, reflects EOG's long standing commitment to deliver superior stockholder returns. It is likely that EOG will be one of a few peer E&P companies to report positive GAAP net income for 2009."

(Please refer to the attached tables for the calculation of return on capital employed (ROCE) and the related reconciliations of after-tax interest expense (non-GAAP), net debt (non-GAAP), and total capitalization (non-GAAP) as used in the calculations of ROCE, to interest expense (GAAP), current and long-term debt (GAAP), and total capitalization (GAAP).)

Dividend Increase

Following an increase in the common stock dividend in 2009, EOG's Board of Directors has again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2010 to holders of record as of April 16, 2010, the quarterly dividend on the common stock will be $0.155 per share, an increase of 7 percent over the previous indicated annual rate. The indicated annual rate of $0.62 per share is the 11th increase in 11 years.

Conference Call Scheduled for February 10, 2010

EOG's fourth quarter and full year 2009 results conference call will be available via live audio webcast at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) on Wednesday, February 10, 2010. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through February 24, 2010.

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 Unites 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.

Effective January 1, 2010, the United States Securities and Exchange Commission (SEC) now permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). As noted above, statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. 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   Twelve Months Ended 
                                    December 31,         December 31,  
                                   ---------------      ---------------  
                                   2009       2008      2009       2008
                                   ----       ----      ----       ----
  Net Operating Revenues         $1,760.9   $1,633.7  $4,787.0   $7,127.1
                                 ========   ========  ========   ========
  Net Income Available                                                
   to Common Stockholders          $400.4     $461.5    $546.6   $2,436.5
                                   ======     ======    ======   ========
  Net Income Per Share Available 
   to Common Stockholders               
    Basic                           $1.60      $1.86     $2.20      $9.88
                                    =====      =====     =====      =====
    Diluted                         $1.58      $1.84     $2.17      $9.72
                                    =====      =====     =====      =====
  Average Number of Common Shares                                     
    Basic                           250.1      247.7     249.0      246.7
                                    =====      =====     =====      =====
    Diluted                         253.5      250.2     251.9      250.5
                                    =====      =====     =====      =====



                         SUMMARY INCOME STATEMENTS
                         -------------------------
              (Unaudited; in thousands, except per share data)           
                                                                         
                               Three Months Ended     Twelve Months Ended 
                                   December 31,           December 31,    
                                 ---------------        ---------------   
                                 2009       2008        2009       2008
                                 ----       ----        ----       ----
  Net Operating Revenues                                                 
    Natural Gas                $573,037   $814,733  $2,050,963 $4,452,058
    Crude Oil, Condensate                                                
     and Natural Gas Liquids    462,242    275,883   1,348,510  1,769,926
    Gains on Mark-to-Market                                              
     Commodity Derivative                                                
     Contracts                   25,927    528,844     431,757    597,911
    Gathering, Processing                                                
     and Marketing              157,437     13,628     407,116    164,535
    Gains (Losses) on                                                    
     Property Dispositions      534,926       (321)    535,436    123,473
    Other, Net                    7,293        960      13,177     19,240
                                  -----        ---      ------     ------
      Total                   1,760,862  1,633,727   4,786,959  7,127,143
                              ---------  ---------   ---------  ---------
  Operating Expenses                                                     
    Lease and Well              157,002    162,891     579,290    559,185
    Transportation Costs         77,485     70,885     283,329    274,090
    Gathering and Processing                                             
     Costs                       13,080     14,165      57,632     40,550
    Exploration Costs            40,752     48,489     169,592    193,886
    Dry Hole Costs               11,590     27,105      51,243     55,167
    Impairments                 123,911     79,268     305,832    192,859
    Marketing Costs             159,556     12,431     397,375    152,842
    Depreciation, Depletion                                              
     and Amortization           398,937    368,135   1,549,188  1,326,875
    General and                                                          
     Administrative              68,793     58,249     248,274    243,708
    Taxes Other Than Income      55,648     40,930     174,363    320,796
                                 ------     ------     -------    -------
      Total                   1,106,754    882,548   3,816,118  3,359,958
                              ---------    -------   ---------  ---------
                                                                         
  Operating Income              654,108    751,179     970,841  3,767,185
                                                                         
  Other Income (Expense), Net      (566)     2,257       2,071     31,012
                                   ----      -----       -----     ------
                                                                         
  Income Before Interest                                                 
   Expense and Income Taxes     653,542    753,436     972,912  3,798,197
                                                                         
  Interest Expense, Net          27,307     18,343     100,901     51,658
                                 ------     ------     -------     ------
                                                                         
  Income Before Income Taxes    626,235    735,093     872,011  3,746,539
                                                                         
  Income Tax Provision          225,808    273,621     325,384  1,309,620
                                -------    -------     -------  ---------
                                                                         
  Net Income                    400,427    461,472     546,627  2,436,919
                                                                         
  Preferred Stock Dividends           -          -           -        443
                                    ---        ---         ---        ---
                                                                         
  Net Income Available to                                                
   Common Stockholders         $400,427   $461,472    $546,627 $2,436,476
                               ========   ========    ======== ==========
                                                                         
  Dividends Declared per                                                 
   Common Share                  $0.145     $0.135      $0.580     $0.510
                                 ======     ======      ======     ======



                                EOG RESOURCES, INC.                   
                               OPERATING HIGHLIGHTS                   
                               --------------------
                                    (Unaudited)                       
                                                            
                                  Three Months       Twelve Months   
                                      Ended              Ended
                                   December 31,       December 31,
                                   -----------        -----------
                                  2009     2008       2009     2008
                                  ----     ----       ----     ----
  Wellhead Volumes and Prices                                       
  ---------------------------                                       
  Natural Gas Volumes (MMcfd) (A)                                   
    United States                 1,075    1,231      1,134    1,162
    Canada                          225      231        224      222
    Trinidad                        294      184        273      218
    Other International (B)          13       18         14       17
                                    ---      ---        ---      ---
      Total                       1,607    1,664      1,645    1,619
                                  =====    =====      =====    =====
                                                                
  Average Natural Gas Prices     
   ($/Mcf) ©                        
    United States                 $4.21    $5.65      $3.72    $8.22
    Canada                         4.41     5.71       3.85     7.64
    Trinidad                       2.26     2.53       1.73     3.58
    Other International (B)        3.96     6.23       4.34     8.18
      Composite                    3.88     5.32       3.42     7.51
                                                                    
  Crude Oil and Condensate     
   Volumes (MBbld) (A)                  
    United States                  52.0     50.4       47.9     39.5
    Canada                          5.5      2.7        4.1      2.7
    Trinidad                        3.3      2.5        3.1      3.2
    Other International (B)         0.1      0.1        0.1      0.1
                                    ---      ---        ---      ---
      Total                        60.9     55.7       55.2     45.5
                                   ====     ====       ====     ====
                                                                    
  Average Crude Oil and         
   Condensate Prices ($/Bbl) ©               
    United States                $67.61   $46.03     $54.42   $87.68
    Canada                        68.92    45.60      57.72    89.70
    Trinidad                      63.44    47.67      50.85    92.90
    Other International (B)       63.64    84.33      53.07    99.30
      Composite                   67.50    46.12      54.46    88.18
                                                                    
  Natural Gas Liquids Volumes         
   (MBbld) (A)                         
    United States                  23.3     15.9       22.5     15.0
    Canada                          1.1      0.9        1.1      1.0
                                    ---      ---        ---      ---
      Total                        24.4     16.8       23.6     16.0
                                   ====     ====       ====     ====
                                                                
  Average Natural Gas Liquids 
   Prices ($/Bbl) ©            
    United States                $40.29   $26.45     $30.03   $53.33
    Canada                        39.31    30.08      30.49    54.77
      Composite                   40.25    26.65      30.05    53.42
                                                                    
  Natural Gas Equivalent         
   Volumes (MMcfed) (D)                       
    United States                 1,526    1,629      1,556    1,490
    Canada                          265      253        256      244
    Trinidad                        314      199        291      237
    Other International (B)          14       18         15       17
                                     --       --         --       --
      Total                       2,119    2,099      2,118    1,988
                                  =====    =====      =====    =====
                                                                
  Total Bcfe (D)                  194.9    193.1      773.0    727.6
      
  (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)             
                                                                          
                                                 December 31, December 31,
                                                      2009         2008
                                                      ----         ----
                                    ASSETS                                
  Current Assets                                                          
    Cash and Cash Equivalents                       $685,751     $331,311 
    Accounts Receivable, Net                         771,417      722,695 
    Inventories                                      261,723      187,970 
    Assets from Price Risk Management Activities      20,915      779,483 
    Income Taxes Receivable                           37,009       27,053 
    Other                                             62,726       59,939 
                                                      ------       ------ 
         Total                                     1,839,541    2,108,451 
                                                                          
  Property, Plant and Equipment                                           
    Oil and Gas Properties (Successful Efforts                            
     Method)                                      24,614,311   20,803,629 
    Other Property, Plant and Equipment            1,350,132    1,057,888 
                                                   ---------    --------- 
        Total Property, Plant and Equipment       25,964,443   21,861,517 
    Less:  Accumulated Depreciation, Depletion                            
            and Amortization                      (9,825,218)  (8,204,215)
                                                  ----------   ---------- 
        Total Property, Plant and Equipment, Net  16,139,225   13,657,302 
  Other Assets                                       139,901      185,473 
                                                     -------      ------- 
  Total Assets                                   $18,118,667  $15,951,226 
                                                 ===========  =========== 
                                                                          
                  LIABILITIES AND STOCKHOLDERS' EQUITY                 
  Current Liabilities                                                     
    Accounts Payable                                $979,139   $1,122,209 
    Accrued Taxes Payable                             92,858       86,265 
    Dividends Payable                                 36,286       33,461 
    Liabilities from Price Risk Management                                
     Activities                                       27,218        4,429 
    Deferred Income Taxes                             35,414      368,231 
    Current Portion of Long-Term Debt                 37,000       37,000 
    Other                                            137,645      113,321 
                                                     -------      ------- 
         Total                                     1,345,560    1,764,916 
                                                                          
                                                                          
  Long-Term Debt                                   2,760,000    1,860,000 
  Other Liabilities                                  632,652      498,291 
  Deferred Income Taxes                            3,382,413    2,813,522 
  Commitments and Contingencies                                           
                                                                          
  Stockholders' Equity                                                    
    Common Stock, $0.01 Par, 640,000,000 
     Shares Authorized: 252,627,177 Shares and 
     249,758,577 Shares Issued at December 31, 
     2009 and 2008, respectively                     202,526      202,498 
    Additional Paid In Capital                       596,702      323,805 
    Accumulated Other Comprehensive Income           339,720       27,787 
    Retained Earnings                              8,866,747    8,466,143 
    Common Stock Held in Treasury, 118,525 Shares 
     and 126,911 Shares at December 31, 2009 
     and 2008, respectively                           (7,653)      (5,736)
                                                      ------       ------ 
           Total Stockholders' Equity              9,998,042    9,014,497 
                                                   ---------    --------- 
  Total Liabilities and Stockholders' Equity     $18,118,667  $15,951,226 
                                                 ===========  =========== 



                             EOG RESOURCES, INC.                         
                       SUMMARY STATEMENTS OF CASH FLOWS  
                       --------------------------------
                          (Unaudited; in thousands)                      
                                                                        
                                                   Twelve Months Ended  
                                                       December 31,     
                                                     ----------------     
                                                     2009        2008
                                                     ----        ----
  Cash Flows from Operating Activities                                   
  Reconciliation of Net Income to Net 
   Cash Provided by Operating         
   Activities:                                                           
    Net Income                                      $546,627  $2,436,919 
    Items Not Requiring (Providing) Cash                                 
      Depreciation, Depletion and Amortization     1,549,188   1,326,875 
      Impairments                                    305,832     192,859 
      Stock-Based Compensation Expenses               95,180      97,493 
      Deferred Income Taxes                          174,392   1,133,630 
      Gains on Property Dispositions                (535,436)   (123,473)
      Other, Net                                       6,761     (14,919)
    Dry Hole Costs                                    51,243      55,167 
    Mark-to-Market Commodity Derivative Contracts                        
      Total Gains                                   (431,757)   (597,911)
      Realized Gains (Losses)                      1,277,584    (136,625)
    Excess Tax Benefits from Stock-Based                                 
     Compensation                                    (76,134)     (6,446)
    Other, Net                                        18,862      13,229 
    Changes in Components of Working Capital and 
     Other Assets and Liabilities              
      Accounts Receivable                            (47,818)     95,165 
      Inventories                                    (50,146)    (92,049)
      Accounts Payable                              (153,565)     30,253 
      Accrued Taxes Payable                           90,929      72,467 
      Other Assets                                    (5,515)    (10,715)
      Other Liabilities                              (12,305)      9,061 
    Changes in Components of Working Capital 
     Associated with Investing and Financing 
     Activities                                      118,517     152,269 
                                                     -------     ------- 
  Net Cash Provided by Operating Activities        2,922,439   4,633,249 
                                                                         
  Investing Cash Flows                                                   
    Additions to Oil and Gas Properties           (3,176,783) (4,718,860)
    Additions to Other Property, Plant and                               
     Equipment                                      (326,226)   (476,611)
    Proceeds from Sales of Assets                    212,000     383,559 
    Changes in Components of Working Capital 
     Associated with Investing Activities           (118,221)   (152,374)
    Other, Net                                        (5,321)     (2,232)
                                                      ------      ------ 
  Net Cash Used in Investing Activities           (3,414,551) (4,966,518)
                                                                         
  Financing Cash Flows                                                   
    Long-Term Debt Borrowings                        900,000     750,000 
    Long-Term Debt Repayments                              -     (38,000)
    Dividends Paid                                  (142,260)   (115,204)
    Redemption of Preferred Stock                          -      (5,395)
    Excess Tax Benefits from Stock-Based                                 
     Compensation                                     76,134       6,446 
    Treasury Stock Purchased                         (10,986)    (17,834)
    Proceeds from Stock Options Exercised and                            
     Employee Stock Purchase Plan                     20,465      72,572 
    Debt Issuance Costs                               (8,895)     (7,585)
    Other, Net                                          (296)        105 
                                                        ----         --- 
  Net Cash Provided by Financing Activities          834,162     645,105 
                                                                         
  Effect of Exchange Rate Changes on Cash             12,390     (34,756)
                                                      ------     ------- 
                                                                         
  Increase in Cash and Cash Equivalents              354,440     277,080 
  Cash and Cash Equivalents at Beginning of                              
   Period                                            331,311      54,231 
                                                     -------      ------ 
  Cash and Cash Equivalents at End of Period        $685,751    $331,311 
                                                    ========    ======== 



                             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, 2009 and 2008 reported Net Income Available to Common 
  Stockholders (GAAP) to reflect actual net cash realized from financial 
  commodity price transactions by eliminating the unrealized mark-to-market 
  (gains) losses from these transactions, to eliminate the gain on a
  property exchange in the Rocky Mountain area and the gain on the sale of 
  EOG's California assets in the fourth quarter of 2009 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    Twelve Months Ended 
                                 December 31,          December 31,     
                                --------------       ----------------     
                                2009      2008       2009        2008
                                ----      ----       ----        ----
  Reported Net Income                                                  
   Available to Common                                                 
   Stockholders (GAAP)       $400,427  $461,472   $546,627  $2,436,476 
                                                                       
  Mark-to-Market (MTM) 
   Commodity Derivative 
   Contracts Impact           
    Total Gains               (25,927) (528,844)  (431,757)   (597,911)
    Realized Gains (Losses)   290,604   100,701  1,277,584    (136,625)
                              -------   -------  ---------    -------- 
       Subtotal               264,677  (428,143)   845,827    (734,536)
                              -------  --------    -------    -------- 
                                                                       
    After Tax MTM Impact      169,976  (275,510)   543,946    (472,674)
                              -------  --------    -------    -------- 
                                                                       
  Less:  Gain on Property                                              
   Exchange, Net of 
   Tax                       (244,248)        -   (244,248)          - 
  Less:  Gain on Sale of                                               
   California Assets, 
   Net of Tax                 (91,822)        -    (91,822)          - 
  Less:  Gain on Sale of                                               
   Appalachian Assets, 
   Net of Tax                       -         -          -     (84,748)
                                  ---       ---        ---     ------- 
                                                                       
  Adjusted Net Income                                                  
   Available to Common                                                 
   Stockholders (Non-GAAP)   $234,333  $185,962   $754,503  $1,879,054 
                             ========  ========   ========  ========== 
                                                                       
  Net Income Per Share 
   Available to Common 
   Stockholders (GAAP)         
    Basic                       $1.60     $1.86      $2.20       $9.88 
                                =====     =====      =====       ===== 
    Diluted                     $1.58     $1.84      $2.17       $9.72 
                                =====     =====      =====       ===== 
                                                                       
  Adjusted Net Income Per 
   Share Available to 
   Common Stockholders (Non- 
   GAAP)                                                               
    Basic                       $0.94     $0.75      $3.03       $7.62 
                                =====     =====      =====       ===== 
    Diluted                     $0.92     $0.74      $3.00       $7.50 
                                =====     =====      =====       ===== 
                                                                       
  Average Number of 
   Common Shares                                      
    Basic                     250,127   247,672    248,996     246,662 
                              =======   =======    =======     ======= 
    Diluted                   253,493   250,162    251,884     250,542 
                              =======   =======    =======     ======= 



                              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, 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), Excess Tax Benefits from Stock-Based Compensation, 
  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 Ended      Twelve Months Ended 
                                    December 31,           December 31,  
                                  ---------------        ----------------  
                                  2009       2008        2009        2008
                                  ----       ----        ----        ----
  Net Cash Provided by                                                      
   Operating Activities (GAAP) $828,763  $1,033,563  $2,922,439  $4,633,249 
                                                                            
  Adjustments                                                               
    Exploration Costs                                                       
     (excluding Stock-Based                                                 
     Compensation Expenses)      35,432      43,448     149,076     175,357 
    Excess Tax Benefits from                                                
     Stock-Based Compensation    42,082     (63,378)     76,134       6,446 
    Changes in Components of 
     Working Capital and Other 
     Assets and Liabilities   
      Accounts Receivable       166,917    (315,112)     47,818     (95,165)
      Inventories                26,554      46,695      50,146      92,049 
      Accounts Payable         (208,133)    191,196     153,565     (30,253)
      Accrued Taxes Payable     (74,832)    133,104     (90,929)    (72,467)
      Other Assets                1,260      (8,041)      5,515      10,715 
      Other Liabilities          21,662     (12,458)     12,305      (9,061)
    Changes in Components of 
     Working Capital Associated                     
     with Investing and                                                    
     Financing Activities        28,580    (137,880)   (118,517)   (152,269)
    Preferred Stock Dividends         -           -           -        (443)
                                    ---         ---         ---        ---- 
                                                                            
  Discretionary Cash Flow                                                   
   Available to Common                                                      
   Stockholders (Non-GAAP)     $868,285    $911,137  $3,207,552  $4,558,158 
                               ========    ========  ==========  ========== 



                               EOG RESOURCES, INC.                    
             FIRST QUARTER AND FULL YEAR 2010 FORECAST AND BENCHMARK
             -------------------------------------------------------  
                               COMMODITY PRICING                     
                               -----------------
                                                              
       (a)  First Quarter and Full Year 2010 Forecast

  The forecast items for the first quarter and full year 2010 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)
                                               1Q 2010     Full Year 2010 
                                           --------------  --------------
  Daily Production                                            
    Natural Gas (MMcfd)                                       
          United States                   1,040  -  1,070   1,160  -  1,190
          Canada                            202  -    222     200  -    230
          Trinidad                          290  -    310     285  -    300
          Other International                10  -     15      12  -     16
          Total                           1,542  -  1,617   1,657  -  1,736
                                                                        
    Crude Oil and Condensate (MBbld)                                 
          United States                    48.0  -   54.0    62.0  -   85.0
          Canada                            5.0  -    6.0     7.0  -    9.0
          Trinidad                          2.7  -    3.2     3.0  -    5.0
          Total                            55.7  -   63.2    72.0  -   99.0
                                                                        
    Natural Gas Liquids (MBbld)                                         
          United States                    22.0  -   28.0    25.0  -   34.0
          Canada                            0.7  -    0.9     0.5  -    0.9
          Total                            22.7  -   28.9    25.5  -   34.9
                                                                          
    Natural Gas Equivalent Volumes (MMcfed)                               
          United States                   1,460  -  1,562   1,682  -  1,904
          Canada                            236  -    264     245  -    289
          Trinidad                          306  -    329     303  -    330
          Other International                10  -     15      12  -     16
          Total                           2,012  -  2,170   2,242  -  2,539
                                            
  Operating Costs                      
    Unit Costs ($/Mcfe)                                               
          Lease and Well                  $0.81  -  $0.85   $0.75  -  $0.80 
          Transportation Costs            $0.42  -  $0.46   $0.39  -  $0.42 
          Depreciation, Depletion                                     
           and Amortization               $2.20  -  $2.30   $2.16  -  $2.30 
                                                                      
  Expenses ($MM)                                                      
    Exploration, Dry Hole and                                        
     Impairment                          $130.0  - $175.0  $525.0  - $675.0 
    General and Administrative            $60.0  -  $68.0  $260.0  - $290.0 
    Gathering and Processing              $14.0  -  $18.0   $50.0  -  $70.0 
    Capitalized Interest                  $17.0  -  $21.0   $60.0  -  $85.0 
    Net Interest                          $24.0  -  $29.0  $110.0  - $130.0 
                                                                      
  Taxes Other Than Income (% of                                       
   Revenue)                                 5.5% -    6.5%    5.5% -    6.5%
                                                                      
  Income Taxes                                                        
    Effective Rate                           35% -     45%     35% -     45%
    Current Taxes ($MM)                     $50  -    $60    $205  -   $225 
                                                                        
  Pricing - (Refer to Benchmark 
   Commodity Pricing in text)              
    Natural Gas ($/Mcf)                                                 
      Differentials (include the 
       effect of physical contracts)        
          United States - below                                       
           NYMEX Henry Hub                $0.02  -  $0.30   $0.05  -  $0.30 
          Canada - below NYMEX                                        
           Henry Hub                      $0.30  -  $0.60   $0.25  -  $0.55 
                                                                      
      Realizations                                                    
          Trinidad                        $1.60  -  $2.60   $1.60  -  $2.60 
          Other International             $3.00  -  $5.00   $3.00  -  $5.00 
                                                                      
    Crude Oil and Condensate ($/Bbl)                                  
      Differentials                                                   
          United States - below WTI       $3.00  -  $8.00   $3.00  -  $6.00 
          Canada - below WTI              $6.50  -  $8.50   $5.00  -  $8.00 
          Trinidad - below WTI            $9.00  - $12.50   $8.65  - $12.65 
                                                                        
  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                               



                              EOG RESOURCES, INC.                           
                          RESERVES SUPPLEMENTAL DATA                        
                          --------------------------
                                  (Unaudited)                               
                                                                            
  2009 NET PROVED RESERVES 
   RECONCILIATION SUMMARY                           
                             United                   North                 
  NATURAL GAS (Bcf)          States      Canada      America      Trinidad  
                           ----------  ----------  -----------  ------------
                                                                            
  Beginning Reserves         4,889.0     1,237.2      6,126.2       1,198.1 
  Revisions                   (378.0)     (447.2)      (825.2)       (104.9)
  Purchases in place           450.8           -        450.8             - 
  Extensions,                                                               
   discoveries and other                                                    
   additions                 1,925.0       846.5      2,771.5             - 
  Sales in place              (114.4)       (5.1)      (119.5)            - 
  Production                  (422.3)      (81.9)      (504.2)       (107.4)
                              ------       -----       ------        ------ 
                                                                            
  Ending Reserves            6,350.1     1,549.5      7,899.6         985.8 
                             =======     =======      =======         ===== 
                                                                            
  CRUDE OIL & CONDENSATE 
   (MMBbls)                                           
  Beginning Reserves           133.4         7.5        140.9           8.3 
  Revisions                      4.4        (0.2)         4.2          (1.8)
  Purchases in place            15.7           -         15.7             - 
  Extensions,                                                               
   discoveries and other                                                    
   additions                    58.2        19.8         78.0             - 
  Sales in place                (5.8)          -         (5.8)            - 
  Production                   (17.5)       (1.5)       (19.0)         (1.1)
                               -----        ----        -----          ---- 
                                                                            
  Ending Reserves              188.4        25.6        214.0           5.4 
                               =====        ====        =====           === 
                                                                            
  NATURAL GAS LIQUIDS 
   (MMBbls)                                              
  Beginning Reserves            72.5         3.3         75.8             - 
  Revisions                      6.1        (0.9)         5.2             - 
  Purchases in place             5.8           -          5.8             - 
  Extensions,                                                               
   discoveries and other                                                    
   additions                    18.5           -         18.5             - 
  Sales in place                (3.2)          -         (3.2)            - 
  Production                    (8.2)       (0.4)        (8.6)            - 
                                ----        ----         ----           --- 
                                                                            
  Ending Reserves               91.5         2.0         93.5             - 
                                ====         ===         ====           === 
                                                                            
  NATURAL GAS EQUIVALENTS  
   (Bcfe)                                            
  Beginning Reserves         6,124.0     1,302.0      7,426.0       1,248.1 
  Revisions                   (314.9)     (453.8)      (768.7)       (115.5)
  Purchases in place           579.6           -        579.6             - 
  Extensions,                                                               
   discoveries and other                                                    
   additions                 2,385.8       965.3      3,351.1             - 
  Sales in place              (168.2)       (5.4)      (173.6)            - 
  Production                  (576.6)      (93.2)      (669.8)       (114.1)
                              ------       -----       ------        ------ 
                                                                            
  Ending Reserves            8,029.7     1,714.9      9,744.6       1,018.5 
                             =======     =======      =======       ======= 

  Net Proved Developed 
   Reserves (Bcfe)                                    
    At December 31, 2008     4,502.3     1,166.2      5,668.5         929.6 
    At December 31, 2009     4,466.0       745.9      5,211.9         633.3 
                                                                           
                                                                            

  2009 EXPLORATION AND DEVELOPMENT 
   EXPENDITURES ($ Millions)                
                             United                   North                 
                             States      Canada      America      Trinidad  
                           ----------  ----------  -----------  ------------
                                                                            
  Acquisition Cost of                                                       
   Unproved Properties        $613.0       $17.8       $630.8          $0.8 
  Exploration Costs            473.5        51.2        524.7          14.2 
  Development Costs          1,839.1       219.8      2,058.9          21.3 
                             -------       -----      -------          ---- 
                                                                            
  Total Drilling             2,925.6       288.8      3,214.4          36.3 
                                                                            
  Acquisition Cost of                                                       
   Proved Properties           111.7           -        111.7             - 
                               -----         ---        -----           --- 
                                                                            
  Total Exploration &                                                       
   Development                                                              
   Expenditures              3,037.3       288.8      3,326.1          36.3 
                                                                            
  Gathering, Processing                                                     
   and Other                   324.6         1.0        325.6           0.2 
  Asset Retirement Costs        59.8        17.8         77.6           6.1 
  Non-Cash Acquisition                                                      
   Costs                       387.9           -        387.9             - 
                               -----         ---        -----           --- 
                                                                            
  Total Expenditures         3,809.6       307.6      4,117.2          42.6 
                                                                            
  Proceeds from Sales in                                                    
   Place                      (211.1)       (0.9)      (212.0)            - 
                              ------        ----       ------           --- 
                                                                            
  Net Expenditures          $3,598.5      $306.7     $3,905.2         $42.6 
                            ========      ======     ========         ===== 
                                                                            
                                                                            
  RESERVE REPLACEMENT COSTS 
   ($ / Mcfe ) *                                   
  Total Drilling, Before                                                    
   Revisions                   $1.23       $0.30        $0.96            $- 
  All-in Total, Net of                                                      
   Revisions                   $1.21       $0.56        $1.10        $(0.31)
                                                                            
  RESERVE REPLACEMENT *                                                     
  Drilling Only                  414%       1036%         500%            - 
  All-in Total, Net of                                                      
   Revisions &                                                              
   Dispositions                  431%        543%         446%         -101%
                                                                            
                                                                            


  *  See attached reconciliation schedule for calculation methodology 


  2009 NET PROVED RESERVES 
   RECONCILIATION SUMMARY                           
                               Other       Total                            
  NATURAL GAS (Bcf)            Int'l       Int'l       Total                
                             ---------   ---------   ---------              
                                                                            
  Beginning Reserves            14.9     1,213.0      7,339.2               
  Revisions                      3.0      (101.9)      (927.1)              
  Purchases in place               -           -        450.8               
  Extensions,                                                               
   discoveries and other                                                    
   additions                       -           -      2,771.5               
  Sales in place                   -           -       (119.5)              
  Production                    (5.2)     (112.6)      (616.8)              
                                ----      ------       ------               
                                                                            
  Ending Reserves               12.7       998.5      8,898.1               
                                ====       =====      =======               
                                                                            
  CRUDE OIL & CONDENSATE  
   (MMBbls)                                           
  Beginning Reserves             0.1         8.4        149.3               
  Revisions                        -        (1.8)         2.4               
  Purchases in place               -           -         15.7               
  Extensions,                                                               
   discoveries and other                                                    
   additions                       -           -         78.0               
  Sales in place                   -           -         (5.8)              
  Production                       -        (1.1)       (20.1)              
                                 ---        ----        -----               
                                                                            
  Ending Reserves                0.1         5.5        219.5               
                                 ===         ===        =====               
                                                                            
  NATURAL GAS LIQUIDS 
   (MMBbls)                                              
  Beginning Reserves               -           -         75.8               
  Revisions                        -           -          5.2               
  Purchases in place               -           -          5.8               
  Extensions,                                                               
   discoveries and other                                                    
   additions                       -           -         18.5               
  Sales in place                   -           -         (3.2)              
  Production                       -           -         (8.6)              
                                   -           -         ----               
                                                                            
  Ending Reserves                  -           -         93.5               
                                 ===         ===         ====               
                                                                            
  NATURAL GAS EQUIVALENTS 
   (Bcfe)                                            
  Beginning Reserves            15.3     1,263.4      8,689.4               
  Revisions                      3.1      (112.4)      (881.1)              
  Purchases in place               -           -        579.6               
  Extensions,                                                               
   discoveries and other                                                    
   additions                       -           -      3,351.1               
  Sales in place                   -           -       (173.6)              
  Production                    (5.4)     (119.5)      (789.3)              
                                ----      ------       ------               
                                                                            
  Ending Reserves               13.0     1,031.5     10,776.1               
                                ====     =======     ========               
                                                                            
                                                                            
  Net Proved Developed
   Reserves (Bcfe)                                    
    At December 31, 2008        15.3       944.9      6,613.4               
    At December 31, 2009        13.0       646.3      5,858.2               


  2009 EXPLORATION AND DEVELOPMENT 
   EXPENDITURES ($ Millions)                
                               Other       Total                
                               Int'l       Int'l       Total    
                             ---------   ---------   ---------  
  Acquisition Cost of                                                       
   Unproved Properties         $(0.3)       $0.5       $631.3               
  Exploration Costs             71.9        86.1        610.8               
  Development Costs              2.0        23.3      2,082.2               
                                 ---        ----      -------               
                                                                            
  Total Drilling                73.6       109.9      3,324.3               
                                                                            
  Acquisition Cost of                                                       
   Proved Properties               -           -        111.7               
                                 ---         ---        -----               
                                                                            
  Total Exploration &                                                       
   Development                                                              
   Expenditures                 73.6       109.9      3,436.0               
                                                                            
  Gathering, Processing                                                     
   and Other                     0.4         0.6        326.2               
  Asset Retirement Costs        (0.1)        6.0         83.6               
  Non-Cash Acquisition                                                      
   Costs                           -           -        387.9               
                                 ---         ---        -----               
                                                                            
  Total Expenditures            73.9       116.5      4,233.7               
                                                                            
  Proceeds from Sales in                                                    
   Place                           -           -       (212.0)              
                                 ---         ---       ------               
                                                                            
  Net Expenditures             $73.9      $116.5     $4,021.7               
                               =====      ======     ========               
                                                                            
                                                                            
  RESERVE REPLACEMENT COSTS 
   ($ / Mcfe ) *                                   
  Total Drilling, Before                                                    
   Revisions                      $-          $-        $0.99               
  All-in Total, Net of                                                      
   Revisions                  $23.74      $(0.98)       $1.18               
                                                                            
  RESERVE REPLACEMENT *                                                     
  Drilling Only                    -           -          425%              
  All-in Total, Net of                                                      
   Revisions &                                                              
   Dispositions                   57%        -94%         364%              

  *  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 proved 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 exploration 
  and development expenditures.


                                                                           
                            United                   North                  
                            States      Canada      America       Trinidad  
                          ----------  ----------  -----------   ------------
  Total Costs Incurred in 
   Exploration and                                  
   Development                                                            
   Activities (GAAP)       $3,485.0      $306.6     $3,791.6         $42.4 
                                                                           
   Less: Asset                                                             
          Retirement Costs    (59.8)      (17.8)       (77.6)         (6.1)
         Acquisition 
          Cost of                                                   
          Proved                                                        
          Properties         (111.7)          -       (111.7)            - 
         Non-Cash 
          Acquisition                                                   
          Costs              (387.9)          -       (387.9)            - 
                             ------         ---       ------           --- 
                                                                           
  Total Exploration & 
   Development Expenditures                             
   for Drilling Only                                                      
   (Non-GAAP) (a)          $2,925.6      $288.8     $3,214.4         $36.3 
                           ========      ======     ========         ===== 
                                                                           
  Total Costs Incurred in 
   Exploration and                                  
   Development                                                            
   Activities (GAAP)       $3,485.0      $306.6     $3,791.6         $42.4 
                                                                           
   Less: Asset                                                             
          Retirement Costs    (59.8)      (17.8)       (77.6)         (6.1)
         Non-Cash 
          Acquisition                                                   
          Costs              (387.9)          -       (387.9)            - 
                             ------         ---       ------           --- 
                                                                           
  Total Exploration &                                                      
   Development                                                             
   Expenditures 
   (Non-GAAP) (1) (b)      $3,037.3      $288.8     $3,326.1         $36.3 
                           ========      ======     ========         ===== 
                                                                           
  Net Proved Reserve 
   Additions From All 
   Sources - Natural 
   Gas Equivalents (Bcfe)                                        
  Revisions due to                                                         
   price (c)                 (536.3)     (249.7)      (786.0)            - 
  Revisions other than                                                     
   price                      221.4      (204.1)        17.3        (115.5)
  Purchases in place          579.6           -        579.6             - 
  Extensions,                                                              
   discoveries and other                                                   
   additions (d)            2,385.8       965.3      3,351.1             - 
                            -------       -----      -------           --- 
                                                                           
  Total Proved Reserve                                                     
   Additions (e)            2,650.5       511.5      3,162.0        (115.5)
                                                                           
  Disposition in                                                           
   Property Exchanges (f)    (131.5)          -       (131.5)            - 
  Sales in place              (36.7)       (5.4)       (42.1)            - 
                              -----        ----        -----           --- 
                                                                           
  Net Proved Reserve                                                       
   Additions From All                                                      
   Sources (g)              2,482.3       506.1      2,988.4        (115.5)
                            =======       =====      =======        ====== 
                                                                           
  Production (h)              576.6        93.2        669.8         114.1 
                                                                           
  RESERVE REPLACEMENT 
   COSTS ($ / Mcfe)                                     
  Total Drilling,                                                          
   Before Revisions (a / d )  $1.23       $0.30        $0.96            $- 
  All-in Total, Net of                                                     
   Revisions (b / (e + f))    $1.21       $0.56        $1.10        $(0.31)
  All-in Total,                                                            
   Excluding Revisions                                                     
   Due to Price 
   (b / (e + f - c ))         $0.99       $0.38        $0.87        $(0.31)
                                                                           
  RESERVE REPLACEMENT                                                      
  Drilling Only (d / h)         414%       1036%         500%            - 
  All-in Total, Net of                                                     
   Revisions &                                                             
   Dispositions (g / h)         431%        543%         446%         -101%
  All-in Total,                                                            
   Excluding Revisions                                                     
   Due to Price 
   ((g - c) / h )               524%        811%         564%         -101%
                                                                           
  (1) Acquisition costs for certain properties in Montague and Cooke 
      counties, Texas were partially settled with EOG common stock valued at
      $89.6 million.  
                                                                           
                                                                           
                              Other       Total                   
                              Int'l       Int'l       Total       
                            ---------   ---------   ---------     
  Total Costs Incurred in 
   Exploration and                                  
   Development                                                            
   Activities (GAAP)          $73.5      $115.9     $3,907.5               
                                                                           
   Less: Asset                                                             
          Retirement Costs      0.1        (6.0)       (83.6)              
         Acquisition Cost 
          of Proved                                                        
          Properties              -           -       (111.7)              
         Non-Cash 
          Acquisition                                                   
          Costs                   -           -       (387.9)              
                                ---         ---       ------               
                                                                           
  Total Exploration & 
   Development Expenditures                             
   for Drilling Only                                                      
   (Non-GAAP) (a)             $73.6      $109.9     $3,324.3               
                              =====      ======     ========               
                                                                           
  Total Costs Incurred in 
   Exploration and                                  
   Development                                                            
   Activities (GAAP)          $73.5      $115.9     $3,907.5               
                                                                           
   Less: Asset                                                             
          Retirement Costs      0.1        (6.0)       (83.6)              
         Non-Cash 
          Acquisition                                                   
          Costs                   -           -       (387.9)              
                                ---         ---       ------               
                                                                           
  Total Exploration &                                                      
   Development                                                             
   Expenditures 
   (Non-GAAP) (1) (b)         $73.6      $109.9     $3,436.0               
                              =====      ======     ========               
                                                                           
  Net Proved Reserve 
   Additions From All 
   Sources - Natural Gas 
   Equivalents (Bcfe)                                        
   Revisions due to                                                        
   price (c)                      -           -       (786.0)              
  Revisions other than                                                     
   price                        3.1      (112.4)       (95.1)              
  Purchases in place              -           -        579.6               
  Extensions,                                                              
   discoveries and other                                                   
   additions (d)                  -           -      3,351.1               
                                ---         ---      -------               
                                                                           
  Total Proved Reserve                                                     
   Additions (e)                3.1      (112.4)     3,049.6               
                                                                           
  Disposition in                                                           
   Property Exchanges (f)         -           -       (131.5)              
  Sales in place                  -           -        (42.1)              
                                ---         ---        -----               
                                                                           
  Net Proved Reserve                                                       
   Additions From All                                                      
   Sources (g)                  3.1      (112.4)     2,876.0               
                                ===      ======      =======               
                                                                           
  Production (h)                5.4       119.5        789.3               
                                                                           
  RESERVE REPLACEMENT COSTS
   ($ / Mcfe)                                     
  Total Drilling,                                                          
   Before Revisions (a / d)       $-          $-        $0.99               
  All-in Total, Net of                                                     
   Revisions (b / (e + f))    $23.74      $(0.98)       $1.18               
  All-in Total,                                                            
   Excluding Revisions                                                     
   Due to Price 
   (b / (e + f - c ))         $23.74      $(0.98)       $0.93               
                                                                           
  RESERVE REPLACEMENT                                                      
  Drilling Only (d / h)           -           -          425%              
  All-in Total, Net of                                                     
   Revisions &                                                             
   Dispositions (g / h)          57%        -94%         364%              
  All-in Total,                                                            
   Excluding Revisions                                                     
   Due to Price 
   ((g - c) / h )                57%        -94%         464%              
                                                                           
  (1) Acquisition costs for certain properties in Montague and Cooke 
      counties, Texas were partially settled with EOG common stock valued at
      $89.6 million.  



                            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 (Non-GAAP) 
          -----------------------------------------------------
  TO CURRENT AND LONG-TERM DEBT (GAAP) AND TOTAL CAPITALIZATION (GAAP)
  --------------------------------------------------------------------
               (Unaudited; in millions, except ratio data)             
                                                                       
  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 and Total Capitalization 
  (Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation. 
  EOG management uses this information for comparative purposes within the 
  industry. 
                                                                       
                                                                       
                                                             December 31, 
                                                                 2009
                                                                 ----
                                                                       
    Total Stockholders' Equity - (a)                            $9,998
                                                                ------ 
                                                                       
    Current and Long-Term Debt - (b)                             2,797 
    Less: Cash                                                    (686)
                                                                  ---- 
    Net Debt (Non-GAAP) - (c)                                    2,111 
                                                                 ----- 
                                                                       
    Total Capitalization (GAAP) - (a) + (b)                    $12,795 
                                                               ======= 
                                                                       
    Total Capitalization (Non-GAAP) - (a) + (c)                $12,109 
                                                               ======= 
                                                                       
    Debt-to-Total Capitalization (GAAP) - (b) / ( (a) + (b) )       22%
                                                                   === 
                                                                       
    Net Debt-to-Total Capitalization 
    (Non-GAAP) - (c) / ( (a) + (c) )                                17%
                                                                   === 



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

  The following chart reconciles Interest Expense (GAAP), Current and Long-
  Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Interest 
  Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (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, Net Debt and Total Capitalization in their ROCE 
  calculation.  EOG management uses this information for comparative 
  purposes within the industry.



                                     1999       2000       2001      2002
                                     ----       ----       ----      ----
                                                                            
  Interest Expense                               $61.0      $45.1     $59.7 
  Tax Benefit Imputed 
   (based on 35%)                                (21.4)     (15.8)    (20.9)
                                                 -----      -----     ----- 
  After-Tax Interest Expense 
   (Non-GAAP) - (a)                              $39.6      $29.3     $38.8 
                                                 -----      -----     ----- 
                                                                            
  Net Income - (b)                              $396.9     $398.6     $87.2 
                                                ------     ------     ----- 
                                                                            
  Total Stockholders' Equity - (c) $1,129.6   $1,380.9   $1,642.7  $1,672.4 
                                   --------   --------   --------  -------- 
                                                                            
  Current and Long-Term Debt - (d)   $990.3     $859.0     $856.0  $1,145.1 
  Less: Cash                          (24.8)     (20.2)      (2.5)     (9.8)
                                      -----      -----       ----      ---- 
  Net Debt (Non-GAAP) - (e)          $965.5     $838.8     $853.5  $1,135.3 
                                     ------     ------     ------  -------- 
                                                                            
  Total Capitalization  
   (GAAP) - (c) + (d)              $2,119.9   $2,239.9   $2,498.7  $2,817.5 
                                   ========   ========   ========  ======== 
                                                                            
  Total Capitalization  
   (Non-GAAP) - (c) + (e)          $2,095.1   $2,219.7   $2,496.2  $2,807.7 
                                   ========   ========   ========  ======== 
                                                                            
  Average Total Capitalization 
   (Non-GAAP)* - (f)                          $2,157.4   $2,358.0  $2,652.0 
                                              ========   ========  ======== 
                                                                            
  Return on Capital Employed 
   (Non-GAAP) - ( (a) + (b) ) / (f)               20.2%      18.1%      4.8%
                                                  ====       ====       === 
                                                                            
  Average Return on Capital 
   Employed (Non-GAAP) 2000 - 2009                 
                                                                            
                                                                            
                                                                            
                                     2003       2004       2005      2006
                                     ----       ----       ----      ----
                                                                            
  Interest Expense                    $58.7      $63.1      $62.5     $43.2 
  Tax Benefit Imputed (based on                                             
   35%)                               (20.5)     (22.1)     (21.9)    (15.1)
                                      -----      -----      -----     ----- 
  After-Tax Interest Expense (Non-                                          
   GAAP) - (a)                        $38.2      $41.0      $40.6     $28.1 
                                      -----      -----      -----     ----- 
                                                                            
  Net Income - (b)                   $430.1     $624.9   $1,259.6  $1,299.9 
                                     ------     ------   --------  -------- 
                                                                            
  Total Stockholders' Equity - (c) $2,223.4   $2,945.4   $4,316.3  $5,599.7 
                                   --------   --------   --------  -------- 
                                                                            
  Current and Long-Term Debt - (d) $1,108.9   $1,077.6     $985.1    $733.4 
  Less: Cash                           (4.4)     (21.0)    (643.8)   (218.3)
                                       ----      -----     ------    ------ 
  Net Debt (Non-GAAP) - (e)        $1,104.5   $1,056.6     $341.3    $515.1 
                                   --------   --------     ------    ------ 
                                                                            
  Total Capitalization  
   (GAAP) - (c) + (d)              $3,332.3   $4,023.0   $5,301.4  $6,333.1 
                                   ========   ========   ========  ======== 
                                                                            
  Total Capitalization  
   (Non-GAAP) - (c) + (e)          $3,327.9   $4,002.0   $4,657.6  $6,114.8 
                                   ========   ========   ========  ======== 
                                                                            
  Average Total Capitalization                                              
   (Non-GAAP)* - (f)               $3,067.8   $3,665.0   $4,329.8  $5,386.2 
                                   ========   ========   ========  ======== 
                                                                            
                                                                            
  Return on Capital Employed 
   (Non-GAAP) - ( (a) + (b) ) / (f)    15.3%      18.2%      30.0%     24.7%
                                       ====       ====       ====      ==== 
                                                                            
  Average Return on Capital 
   Employed (Non-GAAP) 2000 - 2009                 
                                                                            
                                                                            
                                                                            
                                      2007       2008       2009          
                                      ----       ----       ----          
                                                                            
  Interest Expense                    $46.8      $51.7     $100.9           
  Tax Benefit Imputed (based on                                             
   35%)                               (16.4)     (18.1)     (35.3)          
                                      -----      -----      -----           
  After-Tax Interest Expense 
   (Non-GAAP) - (a)                   $30.4      $33.6      $65.6           
                                      -----      -----      -----           
                                                                            
  Net Income - (b)                 $1,089.9   $2,436.9     $546.6           
                                   --------   --------     ------           
                                                                            
  Total Stockholders' Equity - (c) $6,990.1   $9,014.5   $9,998.0           
                                   --------   --------   --------           
                                                                            
  Current and Long-Term Debt - (d) $1,185.0   $1,897.0   $2,797.0           
  Less: Cash                          (54.2)    (331.3)    (685.8)          
                                      -----     ------     ------           
  Net Debt (Non-GAAP) - (e)        $1,130.8   $1,565.7   $2,111.2           
                                   --------   --------   --------           
                                                                            
  Total Capitalization  
   (GAAP) - (c) + (d)              $8,175.1  $10,911.5  $12,795.0           
                                   ========  =========  =========           
                                                                            
  Total Capitalization  
   (Non-GAAP) - (c) + (e)          $8,120.9  $10,580.2  $12,109.2           
                                   ========  =========  =========           
                                                                            
  Average Total Capitalization                                              
   (Non-GAAP)* - (f)               $7,117.9   $9,350.6  $11,344.7           
                                   ========   ========  =========           
                                                                            
                                                                            
  Return on Capital Employed 
   (Non-GAAP) - ( (a) + (b) ) / (f)    15.7%      26.4%       5.4%          
                                       ====       ====        ===           
                                                                            
  Average Return on Capital 
   Employed (Non-GAAP) 2000 - 2009                           17.9%          
                                                             ====           
                                                                            
  * Average of "Total Capitalization (Non-GAAP)" for the current and 
    immediately preceding year

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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