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EOG Resources Reports First Quarter 2010 Results
- Total Company Crude Oil Production Increased 25 Percent Year-Over-Year
- On Track to Achieve 13 Percent Total Company Production Growth in 2010
- Realizing Strong, Consistent Results from Horizontal Crude Oil Plays
PRNewswire-FirstCall
HOUSTON

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FOR IMMEDIATE RELEASE: Monday, May 3, 2010

HOUSTON - EOG Resources, Inc. (EOG) today reported first quarter 2010 net income of $118.0 million, or $0.46 per share. This compares to first quarter 2009 net income of $158.7 million, or $0.63 per share.

The results for the first quarter 2010 included a $16.6 million ($9.9 million after tax, or $0.04 per share) revision in the estimated fair value of a contingent consideration liability associated with a previously disclosed acquisition of unproved acreage and a previously disclosed non-cash net gain of $7.8 million ($5.0 million after tax, or $0.02 per share) on the mark-to-market of financial commodity transactions. During the quarter, the net cash inflow related to financial commodity contracts was $23.0 million ($14.7 million after tax, or $0.06 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 for the quarter was $117.8 million, or $0.46 per share. Adjusted non-GAAP net income for the first quarter 2009 was $132.7 million, or $0.53 per share. (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income to GAAP net income.)

Operational Highlights and Targets

Driven primarily by production growth from its North Dakota Bakken and Fort Worth Basin Barnett Combo crude oil operations, EOG reported a 25 percent increase in crude oil production compared to the first quarter 2009.

During the latter part of the first quarter, EOG began completing wells in the North Dakota Bakken following its winter drilling-only program. In the Parshall Field, the Van Hook 11-02H, in which EOG has 68 percent working interest, began production at 1,565 barrels of oil per day (Bopd). Also drilled in the Parshall Field, the Fertile 13-18H and Austin 23-32H began producing at 1,153 and 955 Bopd, respectively. EOG has 92 and 46 percent working interest in the wells, respectively. Outside of the Parshall Field in the Bakken Lite in Mountrail County, EOG drilled the Sidonia 18-14, which commenced production at 719 Bopd. EOG has 97 percent working interest in the well. EOG is operating 12 drilling rigs on its 580,000 net acre position in the North Dakota Bakken where it expects to average 32,500 barrels of oil equivalent per day (Boepd), net in 2010.

EOG completed several multi-well patterns in the Fort Worth Basin Barnett Combo using enhanced completion techniques. In Montague County, the three-well pattern of Alamo A Unit #1H, #2H and #3H was drilled on 55-acre spacing. The wells, in which EOG has 97 percent working interest, began production at a combined rate of over 900 Bopd with 2.4 million cubic feet of natural gas per day (MMcfd). Further assessing recovery efficiencies in one of the thickest parts of the formation in Cooke County, the Settle B# 1H was drilled horizontally in an area that had previously been tested with vertical wells. With an initial production rate of 1,852 Bopd and 3.7 MMcfd of liquids-rich natural gas, it is EOG's best well to date in the Barnett Combo. The successful test, in which EOG has 97 percent working interest, has set up new horizontal locations on its eastern acreage limits of Cooke County.

In the South Texas Eagle Ford where EOG holds 505,000 net acres in the mature oil window, the Harper Unit #4H was completed to sales in Karnes County. The well, the 17th that EOG has drilled across a six-county area in the play, began production at a rate of 602 Bopd with 650 thousand cubic feet per day of natural gas. EOG has 100 percent working interest in the well. To date, EOG's initial production results in the play are consistent with the average well commencing production at an approximate 800 Bopd rate. EOG is operating a six-rig drilling program in the Eagle Ford and plans to significantly increase production in 2011.

In the Mid-Continent Cleveland Play where EOG had previously drilled vertical wells, it is now developing its 60,000-acre position with horizontal drilling and enhanced completion technology at economic rates of return. Recoverable reserves per well in this play have increased by a factor of four. In Lipscomb County, the Appel 438 #5H and #6H recently began producing at 1,000 and 840 Bopd with 2.5 and 1.0 MMcfd, respectively. EOG has 100 percent working interest in the wells.

"An overview of EOG's first quarter results reflect our progress in developing crude oil and natural gas liquids from our cadre of horizontal oil plays," said Mark G. Papa, Chairman and Chief Executive Officer. "With the strong liquids production growth that EOG is delivering, we are on track both to achieve our goal of total crude oil and natural gas liquids growth of 47 percent this year and further increase the liquids weighting of our production portfolio. We continue to target total company organic production growth of 13 percent for 2010."

Capital Structure

At March 31, 2010, 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 $230 million, at the end of the quarter EOG's net debt was $2,567 million and the net debt-to-total capitalization ratio was 20 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).) To maintain a strong balance sheet with a low net debt-to-total capitalization ratio, EOG's goal is to generate cash proceeds by selling select North American natural gas producing assets or considering a joint venture transaction on certain natural gas shale properties by year-end 2010.

"EOG has a multi-year, high rate-of-return, liquids-rich drilling inventory. We plan to execute our drilling program and achieve our production growth targets while maintaining a strong balance sheet, with a net debt-to-total capitalization ratio at or below 25 percent. Given our liquids-driven total company production growth targets for the next three years of 13 percent, 19 percent and 21 percent combined with current NYMEX strip prices, we expect to be in a free cash flow position in 2012," Mr. Papa said.

Conference Call Scheduled for May 4, 2010

EOG's first quarter 2010 results conference call will be available via live audio webcast at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) on Tuesday, May 4, 2010. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through May 18, 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 United States, Canada, Trinidad, the United Kingdom and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG."

This press release, including the accompanying forecast and benchmark commodity pricing information, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, 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 any of these expectations will be achieved (in full or at all) 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 and 
      market 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, and to produce reserves and achieve
      anticipated production levels from, its existing and future natural
      gas and crude oil exploration and 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;
  --  changes in government policies, laws and regulations, including
      environmental and tax laws and regulations;
  --  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 production, gathering, processing, compression and
      transportation 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;
  --  political developments around the world, including in the areas in
      which EOG operates;
  --  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;
  --  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 14
      through 19 of EOG's Annual Report on Form 10-K for the fiscal year
      ended December 31, 2009.


In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the extent of their impact on our actual results. Accordingly, 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, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances 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 press release 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, 2009, 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
                                               March 31,
                                               ---------
                                              2010                2009
                                              ----                ----
  Net Operating Revenues                  $1,370.7            $1,158.2

  Net Income                                $118.0              $158.7
                                            ======              ======
  Net Income Per Share
    Basic                                    $0.47               $0.64
                                             =====               =====
    Diluted                                  $0.46               $0.63
                                             =====               =====
  Average Number of Shares
   Outstanding
    Basic                                    250.4               248.0
                                             =====               =====
    Diluted                                  253.9               250.2
                                             =====               =====


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


                                          Three Months Ended
                                              March 31,
                                              ---------
                                              2010                2009
                                              ----                ----
  Net Operating Revenues
    Natural Gas                           $676,982            $567,578
    Crude Oil, Condensate and Natural
     Gas Liquids                           509,189             200,328
    Gains on Mark-to-Market
     Commodity Derivative Contracts          7,803             351,383
    Gathering, Processing and
     Marketing                             171,943              37,842
    Other, Net                               4,776               1,078
                                             -----               -----
      Total                              1,370,693           1,158,209
                                         ---------           ---------
  Operating Expenses
    Lease and Well                         165,992             145,506
    Transportation Costs                    88,711              68,862
    Gathering and Processing Costs          15,661              17,713
    Exploration Costs                       51,197              49,623
    Dry Hole Costs                          23,077               2,994
    Impairments                             69,595              65,471
    Marketing Costs                        168,764              31,953
    Depreciation, Depletion and
     Amortization                          431,906             389,329
    General and Administrative              60,423              57,946
    Taxes Other Than Income                 75,465              47,400
                                            ------              ------
      Total                              1,150,791             876,797
                                         ---------             -------

  Operating Income                         219,902             281,412

  Other Income, Net                          2,683               1,739
                                             -----               -----

  Income Before Interest Expense and
   Income Taxes                            222,585             283,151

  Interest Expense, Net                     25,428              18,376
                                            ------              ------

  Income Before Income Taxes               197,157             264,775

  Income Tax Provision                      79,142             106,065
                                            ------             -------

  Net Income                              $118,015            $158,710
                                          ========            ========

  Dividends Declared per Common
   Share                                    $0.155              $0.145



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

                                            Three Months Ended
                                                March 31,
                                                ---------
                                              2010           2009
                                              ----           ----
  Wellhead Volumes and Prices
  ---------------------------
  Natural Gas Volumes (MMcfd) (A)
    United States                            1,043          1,193
    Canada                                     211            230
    Trinidad                                   351            263
    Other International (B)                     16             16
                                               ---            ---
      Total                                  1,621          1,702
                                             =====          =====

  Average Natural Gas Prices ($/Mcf)
   ©
    United States                            $5.24          $4.06
    Canada                                    5.22           4.43
    Trinidad                                  2.51           1.32
    Other International (B)                   4.28           6.03
      Composite                               4.64           3.71

  Crude Oil and Condensate Volumes
   (MBbld) (A)
    United States                             54.1           44.9
    Canada                                     5.8            3.2
    Trinidad                                   3.8            3.0
    Other International (B)                    0.1            0.1
                                               ---            ---
      Total                                   63.8           51.2
                                              ====           ====

  Average Crude Oil and Condensate
   Prices ($/Bbl) ©
    United States                           $73.29         $33.24
    Canada                                   73.27          37.11
    Trinidad                                 66.45          33.45
    Other International (B)                  71.37          46.71
      Composite                              72.87          33.51

  Natural Gas Liquids Volumes (MBbld)
   (A)
    United States                             23.7           21.7
    Canada                                     0.9            1.1
                                               ---            ---
      Total                                   24.6           22.8
                                              ====           ====

  Average Natural Gas Liquids Prices
   ($/Bbl) ©
    United States                           $46.64         $22.12
    Canada                                   45.78          25.52
      Composite                              46.61          22.29

  Natural Gas Equivalent Volumes
   (MMcfed) (D)
    United States                            1,509          1,593
    Canada                                     251            255
    Trinidad                                   374            281
    Other International (B)                     17             17
                                               ---            ---
      Total                                  2,151          2,146
                                             =====          =====

  Total Bcfe (D)                             193.6          193.1

  (A)  Million cubic feet per day or thousand barrels per day, as
  applicable.
  (B)  Other International includes EOG's United Kingdom and 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.
  Bcfe is calculated by multiplying the MMcfed amount by the number of
  days in the period and then dividing that amount by one thousand.



   

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

                                                March 31,    December 31,
                                                  2010           2009
                                                  ----           ----

    ASSETS
  Current Assets
    Cash and Cash Equivalents                   $230,084      $685,751
    Accounts Receivable, Net                     869,042       771,417
    Inventories                                  313,067       261,723
    Assets from Price Risk
     Management Activities                         9,644        20,915
    Income Taxes Receivable                       42,230        37,009
    Deferred Income Taxes                          5,133             -
    Other                                         76,657        62,726
                                                  ------        ------
         Total                                 1,545,857     1,839,541

  Property, Plant and
   Equipment
    Oil and Gas Properties
     (Successful Efforts
     Method)                                  25,725,200    24,614,311
    Other Property, Plant and
     Equipment                                 1,417,663     1,350,132
        Total Property, Plant and
         Equipment                            27,142,863    25,964,443
    Less:  Accumulated
     Depreciation, Depletion
     and Amortization                        (10,325,928)   (9,825,218)
                                             -----------    ----------
        Total Property, Plant and
         Equipment, Net                       16,816,935    16,139,225
  Other Assets                                   146,276       139,901
  Total Assets                               $18,509,068   $18,118,667


    LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                          $1,134,286      $979,139
    Accrued Taxes Payable                         90,182        92,858
    Dividends Payable                             38,765        36,286
    Liabilities from Price Risk
     Management Activities                        40,340        27,218
    Deferred Income Taxes                         20,652        35,414
    Current Portion of Long-
     Term Debt                                    37,000        37,000
    Other                                        131,784       137,645
         Total                                 1,493,009     1,345,560


  Long-Term Debt                               2,760,000     2,760,000
  Other Liabilities                              635,239       632,652
  Deferred Income Taxes                        3,455,903     3,382,413
  Commitments and
   Contingencies

  Stockholders' Equity
    Common Stock, $0.01 Par,
     640,000,000 Shares
     Authorized:
       253,120,631 Shares Issued
        at March 31, 2010 and
          252,627,177 Shares Issued
           at December 31, 2009                  202,531       202,526
    Additional Paid In Capital                   620,367       596,702
    Accumulated Other
     Comprehensive Income                        405,234       339,720
    Retained Earnings                          8,945,648     8,866,747
    Common Stock Held in Treasury, 118,897
     Shares at March 31, 2010
        and 118,525 Shares at
         December 31, 2009                        (8,863)       (7,653)
                                                  ------        ------
            Total Stockholders' Equity        10,164,917     9,998,042
                                              ----------     ---------
  Total Liabilities and
   Stockholders' Equity                      $18,509,068   $18,118,667


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

                                            Three Months Ended
                                                March 31,
                                                ---------
                                                2010                 2009
                                                ----                 ----
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net
   Cash Provided by Operating
   Activities:
    Net Income                              $118,015             $158,710
    Items Not Requiring (Providing) Cash
      Depreciation, Depletion and
       Amortization                          431,906              389,329
      Impairments                             69,595               65,471
      Stock-Based Compensation Expenses       22,494               26,407
      Deferred Income Taxes                   36,695               83,215
      Other, Net                                (277)                (652)
    Dry Hole Costs                            23,077                2,994
    Mark-to-Market Commodity Derivative
     Contracts
      Total Gains                             (7,803)            (351,383)
      Realized Gains                          22,960              310,964
    Excess Tax Benefits from Stock-Based
     Compensation                                  -               (4,688)
    Other, Net                                 2,505                2,940
    Changes in Components of Working
     Capital and Other Assets and
     Liabilities
      Accounts Receivable                    (95,770)             156,926
      Inventories                            (53,312)             (22,896)
      Accounts Payable                       147,632             (352,622)
      Accrued Taxes Payable                   (3,790)              19,166
      Other Assets                           (13,494)               1,430
      Other Liabilities                       (5,554)             (18,070)

    Changes in Components of Working
     Capital Associated with Investing
     and Financing Activities                (74,592)             138,598
                                             -------              -------
  Net Cash Provided by Operating
   Activities                                620,287              605,839

  Investing Cash Flows
    Additions to Oil and Gas Properties   (1,063,390)            (822,583)
    Additions to Other Property, Plant
     and Equipment                           (61,483)             (65,013)
    Proceeds from Sales of Assets              3,766                  447

    Changes in Components of Working
     Capital Associated with Investing
     Activities                               74,322             (138,532)
    Other, Net                                 7,107                  554
                                               -----                  ---
  Net Cash Used in Investing Activities   (1,039,678)          (1,025,127)

  Financing Cash Flows
    Net Commercial Paper and Uncommitted
     Credit Facility Borrowings                    -              208,100
    Dividends Paid                           (36,289)             (33,491)
    Excess Tax Benefits from Stock-Based
     Compensation                                  -                4,688
    Treasury Stock Purchased                  (5,347)              (4,904)
    Proceeds from Stock Options Exercised      5,277                1,152
    Other, Net                                   270                  (66)
                                                 ---                  ---
  Net Cash (Used in) Provided by
   Financing Activities                      (36,089)             175,479

  Effect of Exchange Rate Changes on
   Cash                                         (187)              (2,288)
                                                ----               ------

  Decrease in Cash and Cash Equivalents     (455,667)            (246,097)
  Cash and Cash Equivalents at
   Beginning of Period                       685,751              331,311
                                             -------              -------
  Cash and Cash Equivalents at End of
   Period                                   $230,084              $85,214
                                            ========              =======



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


  The following chart adjusts three-month periods ended March 31, 2010
  and 2009 reported Net Income (GAAP) to reflect actual net cash
  realized from financial commodity price transactions by eliminating
  the unrealized mark-to-market gains from these transactions and to
  eliminate the change in the estimated fair value of a contingent
  consideration liability related to EOG's previously disclosed
  acquisition of Haynesville and Bossier Shale unproved acreage.  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
                                                  March 31,
                                                  ---------
                                                2010               2009
                                                ----                ---

  Reported Net Income (GAAP)                $118,015           $158,710

  Mark-to-Market (MTM) Commodity Derivative
   Contracts Impact
    Total Gains                               (7,803)          (351,383)
    Realized Gains                            22,960            310,964
       Subtotal                               15,157            (40,419)
                                              ------            -------

    After Tax MTM Impact                       9,704            (26,010)
                                               -----            -------

  Less:  Change in Fair Value of Contingent
   Consideration Liability, Net of Tax        (9,933)                 -
                                              ------                ---

  Adjusted Net Income (Non-GAAP)            $117,786           $132,700
                                            ========           ========

  Net Income Per Share (GAAP)
    Basic                                      $0.47              $0.64
                                               =====              =====
    Diluted                                    $0.46              $0.63
                                               =====              =====

  Adjusted Net Income Per Share (Non-GAAP)
    Basic                                      $0.47              $0.54
                                               =====              =====
    Diluted                                    $0.46              $0.53
                                               =====              =====

  Average Number of Shares
    Basic                                    250,370            247,991
                                             =======            =======
    Diluted                                  253,869            250,204
                                             =======            =======




   
                               EOG RESOURCES, INC.
       QUANTITATIVE RECONCILIATION OF DISCRETIONARY CASH FLOW (NON-GAAP)
        -----------------------------------------------------------------
                   TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)
                   ---------------------------------------------------
                                (Unaudited; in thousands)

  The following chart reconciles three-month periods ended March 31,
  2010 and 2009 Net Cash Provided by Operating Activities (GAAP) to
  Discretionary Cash Flow (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, and
  Changes in Components of Working Capital Associated with Investing
  and Financing Activities. EOG management uses this information for
  comparative purposes within the industry.

                                                        Three Months
                                                        Ended March 31,
                                                        ---------------
                                                  2010               2009
                                                  ----               ----

  Net Cash Provided by Operating
   Activities (GAAP)                          $620,287           $605,839

  Adjustments
    Exploration Costs (excluding Stock-Based
     Compensation Expenses)                     45,683             44,471
    Excess Tax Benefits from Stock-Based
     Compensation                                    -              4,688
    Changes in Components of Working Capital
     and Other Assets and Liabilities
      Accounts Receivable                       95,770           (156,926)
      Inventories                               53,312             22,896
      Accounts Payable                        (147,632)           352,622
      Accrued Taxes Payable                      3,790            (19,166)
      Other Assets                              13,494             (1,430)
      Other Liabilities                          5,554             18,070
    Changes in Components of Working Capital
     Associated
      with Investing and Financing Activities   74,592           (138,598)


  Discretionary Cash Flow (Non-GAAP)          $764,850           $732,466



                       EOG RESOURCES, INC.
     SECOND QUARTER AND FULL YEAR 2010 FORECAST AND BENCHMARK
                         COMMODITY PRICING
     --------------------------------------------------------

       (a)  Second Quarter and Full Year 2010 Forecast

  The forecast items for the second 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)
                                2Q 2010                    Full Year 2010
                                -------                    --------------
  Daily Production
    Natural Gas
     Volumes (MMcfd)
      United States       1,095   -      1,125         1,150   -    1,190
      Canada                190   -        200           200   -      223
      Trinidad              300   -        330           280   -      315
      Other
       International         12   -         17            14   -       18
      Total               1,597   -      1,672         1,644   -    1,746

    Crude Oil and
     Condensate
     Volumes (MBbld)
      United States        60.0   -       62.0          62.0   -     85.0
      Canada                6.0   -        7.0           7.0   -      9.0
      Trinidad              5.0   -        6.0           3.5   -      5.1
      Total                71.0   -       75.0          72.5   -     99.1

    Natural Gas
     Liquids Volumes
     (MBbld)
      United States        25.5   -       31.0          25.0   -     34.0
      Canada                0.6   -        0.9           0.5   -      0.9
      Total                26.1   -       31.9          25.5   -     34.9

    Natural Gas
     Equivalent
     Volumes
     (MMcfed)
      United States       1,608   -      1,683         1,672   -    1,904
      Canada                230   -        247           245   -      282
      Trinidad              330   -        366           301   -      346
      Other
       International         12   -         17            14   -       18
      Total               2,180   -      2,313         2,232   -    2,550


                                     ESTIMATED RANGES
                                     ----------------
                                       (Unaudited)
                              2Q 2010                Full Year 2010
                              -------                --------------
  Operating Costs
    Unit Costs
     ($/Mcfe)
      Lease and Well      $0.76   -      $0.85         $0.77   -    $0.82
      Transportation
       Costs              $0.39   -      $0.43         $0.39   -    $0.42
      Depreciation,
       Depletion and
       Amortization       $2.27   -      $2.35         $2.28   -    $2.38

  Expenses ($MM)
    Exploration, Dry
     Hole and
     Impairment          $175.0   -     $195.0        $525.0   -   $675.0
    General and
     Administrative       $62.0          $70.0        $260.0       $290.0
    Gathering and
     Processing           $14.5   -      $18.5         $53.0   -    $75.0
    Capitalized
     Interest             $17.5   -      $21.5         $62.0   -    $88.0
    Net Interest          $25.0   -      $30.0        $112.0   -   $130.0

  Taxes Other Than
   Income (% of
   Revenue)                 6.5%  -        7.5%          6.2%  -      7.0%

  Income Taxes
    Effective Rate           40%  -         50%           35%  -       45%
    Current Taxes
     ($MM)                  $50   -        $60          $185   -     $205

  Capital
   Expenditures
   ($MM) -FY 2010
   (Excluding
   Acquisitions)
    Exploration,
     Development,
     Gathering,
     Processing and
     Other                Approximately    $5,100

  Pricing -(Refer
   to Benchmark
   Commodity
   Pricing in
   text)
    Natural Gas
     ($/Mcf)
      Differentials
       (include the
       effect of
       physical
       contracts)
        United States -
         below NYMEX
         Henry Hub        $0.12   -      $0.18         $0.10   -    $0.20
        Canada -below
         NYMEX Henry Hub  $0.15   -      $0.35         $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        $4.00   -      $9.00         $3.00   -    $6.25
        Canada -below
         WTI              $6.75   -      $8.75         $5.00   -    $8.00
        Trinidad -below
         WTI              $9.25   -     $12.75         $8.65   -   $12.75

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



                       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.


                                                      March 31,
                                                           2010
                                                           ----

    Total Stockholders' Equity - (a)                    $10,165
                                                        -------

    Current and Long-Term Debt - (b)                      2,797
    Less: Cash                                             (230)
                                                           ----
    Net Debt (Non-GAAP) - (c)                             2,567
                                                          -----

    Total Capitalization (GAAP) - (a) + (b)             $12,962
                                                        =======

    Total Capitalization (Non-GAAP) - (a) + (c)         $12,732
                                                        =======

    Debt-to-Total Capitalization (GAAP) - (b) /
     [(a) + (b)]                                             22%
                                                            ===

    Net Debt-to-Total Capitalization (Non-GAAP) -
      (c) /[(a) + (c)]                                       20%
                                                            ===

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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