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EOG Resources Reports Second Quarter 2010 Results
- Records 43 Percent Total Crude Oil and Condensate Production Increase Over Second Quarter 2009
- Announces Likely 65 Million Barrel Equivalent Horizontal Crude Oil Discovery in New Mexico
- Reports Two Exceptional Haynesville Wells in Texas Core Area
- On Track to Achieve 13 Percent Total Company Organic Production Growth in 2010
PRNewswire-FirstCall
HOUSTON

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FOR IMMEDIATE RELEASE: Thursday, August 5, 2010

EOG Resources, Inc. (EOG) today reported second quarter 2010 net income of $59.9 million, or $0.24 per share. This compares to a second quarter 2009 net loss of $16.7 million, or $0.07 per share.

The results for the second quarter 2010 included a $2.5 million ($1.4 million after tax, or $0.01 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 $37.0 million ($23.7 million after tax, or $0.09 per share) on the mark-to-market of financial commodity transactions. During the quarter, the net cash inflow related to financial commodity contracts was $15.9 million ($10.1 million after tax, or $0.04 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 $44.9 million, or $0.18 per share. Adjusted non-GAAP net income for the second quarter 2009 was $183.6 million, or $0.73 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

During the second quarter, total company crude oil and condensate production increased 43 percent over the same period in 2009. Production increases were greatest from the North Dakota Williston Basin where drilling and production results have proven consistent. In the Bakken Core, the Van-Hook 7-23H and Fertile 37-07H came on-line at 2,525 and 1,654 barrels of crude oil per day (Bopd), respectively. EOG has 99 and 81 percent working interest, respectively in these Mountrail County wells. EOG is drilling development prospects in the Bakken Core, Bakken Lite and Three Forks Formations with a 12-rig program.

EOG announced success from a portion of its acreage tested in the Leonard Shale, a horizontal crude oil play in southeastern New Mexico. The four vertical and seven horizontal wells that EOG has completed in this new area have production characteristics similar to the Barnett Shale Combo - crude oil with a liquids rich natural gas stream contributing to strong well economics. Initial production rates from the Lomas Rojas 26 #1H and #2H were 710 Bopd with 1.7 million cubic feet per day (MMcfd) of liquids rich natural gas and 800 Bopd with 1.5 MMcfd of liquids rich natural gas, respectively. EOG has 100 percent working interest in these two horizontal wells. Based on drilling results to date and other industry data points, EOG estimates the likely reserves on 31,000 of its 120,000 net acres in the play are approximately 65 million barrels of crude oil equivalent, net after royalty.

The Barnett Shale Combo, where EOG is operating a 14-rig drilling program, also continues to add to EOG's crude oil production profile. In Montague County, EOG reported strong results from three horizontal wells. The King #1H began production at 344 Bopd with 2.5 MMcfd of natural gas, the Olden B#1H was completed at 323 Bopd with 1.7 MMcfd of natural gas and the Alamo B#6H commenced production at 500 Bopd. EOG has 98 percent, 97 percent and 96 percent working interest in the wells, respectively. To further test the concept of horizontal drilling in an area previously designated for vertical wells, EOG completed the Richardson #3H in far western Cooke County. The well, in which EOG has a 92 percent working interest, began production at 325 Bopd and is still cleaning up after frac treatment. These Combo wells are producing at restricted rates to minimize frac sand flowback.

In the Eagle Ford horizontal crude oil shale play in South Texas, EOG also reported consistent production results. The Darlene #2H, in which EOG has 50 percent working interest, commenced production at 1,033 Bopd with 423 thousand cubic feet per day (Mcfd) of natural gas. Recently, EOG completed its first two wells in Wilson County. The Borgfeld #1H and #2H began production at 707 and 836 Bopd, respectively. EOG has 100 percent working interest in the wells. As previously reported, EOG is operating a modest five-rig drilling program while gathering and interpreting additional 3D seismic data. To date, EOG has drilled and completed 31 wells and has 25 wells awaiting completion across its 505,000 net acre position in the Eagle Ford trend's mature crude oil window. Toward year-end, EOG plans to ramp up drilling activity to a 12-rig program and operate an average of 14 rigs during 2011.

In the Haynesville, EOG drilled two wells that may be among the industry's most prolific to date in the entire play. Due to pipeline constraints, the 30-day average restricted flow rates from the Crane #26-1H and Murray #1H were 27 and 25 MMcfd of natural gas at 7,800 and 8,100 psi flowing pressure, respectively. The wells had initial production rates of 32 and 30 MMcfd at 9,700 and 9,200 psi flowing pressure, respectively. EOG has 96 percent working interest in these Texas core area wells. Extending the boundary of the sweet spot further east into San Augustine County, Texas, the Walters #1H was completed with a restricted initial production rate of 21 MMcfd of natural gas. EOG has 49 percent working interest in this well. EOG confirmed success from the Bossier Formation in DeSoto Parish, Louisiana with the Red River 5#3H. EOG has a 100 percent working interest in the well, which began production at over 15 MMcfd of natural gas.

In the Niobrara Formation in Colorado, EOG is operating a four-rig exploratory drilling program currently concentrating on 100,000 of its 400,000 total net acre position. During the second quarter, EOG drilled and completed the Critter Creek #02-03H and Critter Creek #04-09H, which are producing at managed restricted rates of 570 and 600 Bopd, respectively. EOG has 100 percent working interest in these wells.

"For the first time in EOG's history, during the second quarter total revenues generated from crude oil, condensate and natural gas liquids production exceeded those from natural gas. This mix is in-line with EOG's target to organically evolve toward a predominantly liquids weighted portfolio in North America by 2011 to 2012," said Mark G. Papa, Chairman and Chief Executive Officer.

Capital Structure

At June 30, 2010, EOG's total debt was $3,734 million for a debt-to-total capitalization ratio of 27 percent. Taking into account cash on the balance sheet of $650 million, at the end of the quarter EOG's net debt was $3,084 million and the net debt-to-total capitalization ratio was 23 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).)

As EOG continues to pursue its extensive organic high rate-of-return horizontal crude oil and liquids rich investment opportunities, it is making incremental capital expenditures for crude oil related facilities and infrastructure. To maximize long-term project economics on crude oil developments such as the Eagle Ford, EOG is raising its 2010 capital expenditure program by $500 million from previous estimates. The increase will be offset by a greater amount of acreage sales than previously anticipated.

"We plan to sell certain non-core North American producing natural gas assets, as well as acreage in both natural gas and liquids plays, to execute the drilling and development of our suite of outstanding horizontal oil drilling opportunities. The cash generated will partially fund our capex program in 2010 and 2011," Mr. Papa said. "In addition, we are focused on maintaining a strong balance sheet, while on track to deliver 13 percent total company organic production growth this year."

Conference Call Scheduled for August 6, 2010

EOG's second 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 Friday, August 6, 2010. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through August 20, 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
                                               June 30,
                                               --------
                                           2010                2009
                                           ----                ----

  Net Operating Revenues               $1,358.0              $861.0
                                       ========              ======
  Net Income (Loss)                       $59.9              $(16.7)
                                          =====              ======
  Net Income (Loss) Per Share
    Basic                                 $0.24              $(0.07)
                                          =====              ======
    Diluted                               $0.24              $(0.07)
                                          =====              ======
  Average Number of Shares Outstanding
    Basic                                 250.8               248.2
                                          =====               =====
    Diluted                               254.5               248.2
                                          =====               =====


                                           Six Months Ended
                                               June 30,
                                               --------
                                           2010                 2009
                                           ----                 ----

  Net Operating Revenues               $2,728.7             $2,019.2
                                       ========             ========
  Net Income (Loss)                      $177.9               $142.0
                                         ======               ======
  Net Income (Loss) Per Share
    Basic                                 $0.71                $0.57
                                          =====                =====
    Diluted                               $0.70                $0.57
                                          =====                =====
  Average Number of Shares Outstanding
    Basic                                 250.6                248.1
                                          =====                =====
    Diluted                               254.2                250.5
                                          =====                =====



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


                                         Three Months Ended
                                              June 30,
                                              --------
                                             2010              2009
                                             ----              ----
  Net Operating Revenues
    Natural Gas                          $553,354          $460,044
    Crude Oil, Condensate and Natural
     Gas Liquids                          560,049           287,134
    Gains on Mark-to-Market Commodity
     Derivative Contracts                  37,015            33,570
    Gathering, Processing and Marketing   195,876            77,284
    Other, Net                             11,674             3,007
                                           ------             -----
      Total                             1,357,968           861,039
                                        ---------           -------
  Operating Expenses
    Lease and Well                        160,734           134,599
    Transportation Costs                   94,345            66,011
    Gathering and Processing Costs         13,220            13,521
    Exploration Costs                      50,131            34,307
    Dry Hole Costs                         19,318            33,643
    Impairments                            80,362            47,046
    Marketing Costs                       191,213            74,050
    Depreciation, Depletion and
     Amortization                         465,343           375,592
    General and Administrative             64,737            58,760
    Taxes Other Than Income                78,064            23,492
                                           ------            ------
      Total                             1,217,467           861,021
                                        ---------           -------

  Operating Income                        140,501                18

  Other Income (Expense), Net                (545)            1,237
                                             ----             -----

  Income Before Interest Expense and
   Income Taxes                           139,956             1,255

  Interest Expense, Net                    29,897            24,811
                                           ------            ------

  Income (Loss) Before Income Taxes       110,059           (23,556)

  Income Tax Provision (Benefit)           50,187            (6,850)
                                           ------            ------

  Net Income (Loss)                       $59,872          $(16,706)
                                          =======          ========

  Dividends Declared per Common Share      $0.155            $0.145
                                           ======            ======


                                            Six Months Ended
                                                June 30,
                                                --------
                                              2010               2009
                                              ----               ----
  Net Operating Revenues
    Natural Gas                         $1,230,336         $1,027,622
    Crude Oil, Condensate and Natural
     Gas Liquids                         1,069,238            487,462
    Gains on Mark-to-Market Commodity
     Derivative Contracts                   44,818            384,953
    Gathering, Processing and Marketing    367,819            115,126
    Other, Net                              16,450              4,085
                                            ------              -----
      Total                              2,728,661          2,019,248
                                         ---------          ---------
  Operating Expenses
    Lease and Well                         326,726            280,105
    Transportation Costs                   183,056            134,873
    Gathering and Processing Costs          28,881             31,234
    Exploration Costs                      101,328             83,930
    Dry Hole Costs                          42,395             36,637
    Impairments                            149,957            112,517
    Marketing Costs                        359,977            106,003
    Depreciation, Depletion and
     Amortization                          897,249            764,921
    General and Administrative             125,160            116,706
    Taxes Other Than Income                153,529             70,892
                                           -------             ------
      Total                              2,368,258          1,737,818
                                         ---------          ---------

  Operating Income                         360,403            281,430

  Other Income (Expense), Net                2,138              2,976
                                             -----              -----

  Income Before Interest Expense and
   Income Taxes                            362,541            284,406

  Interest Expense, Net                     55,325             43,187
                                            ------             ------

  Income (Loss) Before Income Taxes        307,216            241,219

  Income Tax Provision (Benefit)           129,329             99,215
                                           -------             ------

  Net Income (Loss)                       $177,887           $142,004
                                          ========           ========

  Dividends Declared per Common Share       $0.310             $0.290
                                            ======             ======





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


                                            Three Months Ended
                                                 June 30,
                                                 --------
                                              2010           2009
                                              ----           ----
  Wellhead Volumes and Prices
  ---------------------------
  Natural Gas Volumes (MMcfd) (A)
    United States                            1,069          1,139
    Canada                                     204            225
    Trinidad                                   341            266
    Other International (B)                     15             15
                                               ---            ---
      Total                                  1,629          1,645
                                             =====          =====

  Average Natural Gas Prices
   ($/Mcf) ©
    United States                            $4.12          $3.37
    Canada                                    3.60           3.40
    Trinidad                                  2.58           1.51
    Other International (B)                   4.27           3.55
      Composite                               3.73           3.07

  Crude Oil and Condensate Volumes
   (MBbld) (A)
    United States                             57.6           42.9
    Canada                                     6.6            2.9
    Trinidad                                   5.4            3.0
    Other International (B)                    0.1            0.1
                                               ---            ---
      Total                                   69.7           48.9
                                              ====           ====

  Average Crude Oil and Condensate
   Prices ($/Bbl) ©
    United States                           $73.18         $52.82
    Canada                                   71.63          52.52
    Trinidad                                 68.90          47.50
    Other International (B)                  73.21          46.75
      Composite                              72.69          52.47

  Natural Gas Liquids Volumes
   (MBbld) (A)
    United States                             27.5           22.1
    Canada                                     0.9            1.0
                                               ---            ---
      Total                                   28.4           23.1
                                              ====           ====

  Average Natural Gas Liquids
   Prices ($/Bbl) ©
    United States                           $40.31         $25.60
    Canada                                   42.55          25.60
      Composite                              40.38          25.60

  Natural Gas Equivalent Volumes
   (MMcfed) (D)
    United States                            1,579          1,529
    Canada                                     249            249
    Trinidad                                   373            284
    Other International (B)                     16             15
                                               ---            ---
      Total                                  2,217          2,077
                                             =====          =====

  Total Bcfe (D)                             201.8          189.0


                                             Six Months Ended
                                                 June 30,
                                                 --------
                                              2010           2009
                                              ----           ----
  Wellhead Volumes and Prices
  ---------------------------
  Natural Gas Volumes (MMcfd) (A)
    United States                            1,055          1,167
    Canada                                     208            227
    Trinidad                                   346            264
    Other International (B)                     16             15
                                               ---            ---
      Total                                  1,625          1,673
                                             =====          =====

  Average Natural Gas Prices
   ($/Mcf) ©
    United States                            $4.67          $3.72
    Canada                                    4.42           3.92
    Trinidad                                  2.54           1.42
    Other International (B)                   4.27           4.84
      Composite                               4.18           3.39

  Crude Oil and Condensate Volumes
   (MBbld) (A)
    United States                             55.9           43.8
    Canada                                     6.2            3.1
    Trinidad                                   4.6            3.0
    Other International (B)                    0.1            0.1
                                               ---            ---
      Total                                   66.8           50.0
                                              ====           ====

  Average Crude Oil and Condensate
   Prices ($/Bbl) ©
    United States                           $73.23         $42.85
    Canada                                   72.39          44.53
    Trinidad                                 67.89          40.49
    Other International (B)                  72.18          46.73
      Composite                              72.77          42.82

  Natural Gas Liquids Volumes
   (MBbld) (A)
    United States                             25.6           21.9
    Canada                                     0.9            1.1
                                               ---            ---
      Total                                   26.5           23.0
                                              ====           ====

  Average Natural Gas Liquids
   Prices ($/Bbl) ©
    United States                           $43.23         $23.88
    Canada                                   44.09          25.56
      Composite                              43.25          23.96

  Natural Gas Equivalent Volumes
   (MMcfed) (D)
    United States                            1,545          1,561
    Canada                                     250            252
    Trinidad                                   374            282
    Other International (B)                     16             16
                                               ---            ---
      Total                                  2,185          2,111
                                             =====          =====

  Total Bcfe (D)                             395.4          382.1


  (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.
  Excludes the impact of financial commodity derivative instruments.
  (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)



                                                June 30,     December 31,
                                                       2010          2009
                                                       ----          ----

    ASSETS
  Current Assets
    Cash and Cash Equivalents                      $650,114      $685,751
    Accounts Receivable, Net                        810,145       771,417
    Inventories                                     306,563       261,723
    Assets from Price Risk Management
     Activities                                    18,671        20,915
    Income Taxes Receivable                        30,684        37,009
    Deferred Income Taxes                           1,169             -
    Other                                          98,797        62,726
                                                   ------        ------
         Total                                  1,916,143     1,839,541

  Property, Plant and Equipment
    Oil and Gas Properties (Successful
     Efforts Method)                           26,647,238    24,614,311
    Other Property, Plant and Equipment         1,490,111     1,350,132
        Total Property, Plant and Equipment    28,137,349    25,964,443
    Less:  Accumulated Depreciation,
     Depletion and Amortization               (10,713,031)   (9,825,218)
                                              -----------    ----------
        Total Property, Plant and Equipment,
         Net                                   17,424,318    16,139,225
  Other Assets                                    125,222       139,901
  Total Assets                                $19,465,683   $18,118,667


    LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Accounts Payable                           $1,255,657      $979,139
    Accrued Taxes Payable                          90,051        92,858
    Dividends Payable                              38,853        36,286
    Liabilities from Price Risk Management
     Activities                                    42,207        27,218
    Deferred Income Taxes                           9,889        35,414
    Current Portion of Long-Term Debt                   -        37,000
    Other                                         121,480       137,645
                                                  -------       -------
         Total                                  1,558,137     1,345,560


  Long-Term Debt                                3,734,067     2,760,000
  Other Liabilities                               618,743       632,652
  Deferred Income Taxes                         3,423,717     3,382,413
  Commitments and Contingencies

  Stockholders' Equity
    Common Stock, $0.01 Par, 640,000,000
     Shares Authorized and
        253,517,235 Shares Issued at June 30,
         2010 and
        252,627,177 Shares Issued at December
         31, 2009                                 202,535       202,526
    Additional Paid In Capital                    656,529       596,702
    Accumulated Other Comprehensive Income        314,631       339,720
    Retained Earnings                           8,966,181     8,866,747
    Common Stock Held in Treasury, 122,265
     Shares at June 30, 2010
        and 118,525 Shares at December 31,
         2009                                      (8,857)       (7,653)
                                                   ------        ------
              Total Stockholders' Equity       10,131,019     9,998,042

  Total Liabilities and Stockholders'
   Equity                                     $19,465,683   $18,118,667





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

                                            Six Months Ended
                                                June 30,
                                                --------
                                                 2010              2009
                                                 ----              ----
  Cash Flows from Operating Activities
  Reconciliation of Net Income to Net
   Cash Provided by Operating
   Activities:
    Net Income                               $177,887          $142,004
    Items Not Requiring (Providing) Cash
      Depreciation, Depletion and
       Amortization                           897,249           764,921
      Impairments                             149,957           112,517
      Stock-Based Compensation Expenses        44,953            48,479
      Deferred Income Taxes                    24,493            62,161
      Other, Net                               (8,884)            1,689
    Dry Hole Costs                             42,395            36,637
    Mark-to-Market Commodity Derivative
     Contracts
      Total Gains                             (44,818)         (384,953)
      Realized Gains                           38,827           655,740
    Excess Tax Benefits from Stock-Based
     Compensation                                   -           (21,874)
    Other, Net                                  8,454             6,865
    Changes in Components of Working
     Capital and Other Assets and
     Liabilities
      Accounts Receivable                     (39,275)          149,021
      Inventories                             (67,363)          (22,151)
      Accounts Payable                        254,878          (414,823)
      Accrued Taxes Payable                    (6,011)            4,131
      Other Assets                            (24,499)           (7,487)
      Other Liabilities                       (10,930)          (24,842)
    Changes in Components of Working
     Capital Associated with Investing and
     Financing Activities                    (135,973)          169,183
                                             --------           -------
  Net Cash Provided by Operating
   Activities                               1,301,340         1,277,218

  Investing Cash Flows
    Additions to Oil and Gas Properties    (2,288,270)       (1,433,591)
    Additions to Other Property, Plant and
     Equipment                               (115,661)         (151,845)
    Proceeds from Sales of Assets              41,939               828
    Changes in Components of Working
     Capital Associated with Investing
     Activities                               135,693          (169,101)
    Other, Net                                 (4,157)            1,384
                                               ------             -----
  Net Cash Used in Investing Activities    (2,230,456)       (1,752,325)

  Financing Cash Flows
    Long-Term Debt Borrowings                 991,395           900,000
    Long-Term Debt Repayments                 (37,000)                -
    Dividends Paid                            (75,179)          (69,516)
    Excess Tax Benefits from Stock-Based
     Compensation                                   -            21,874
    Treasury Stock Purchased                   (7,307)           (6,125)
    Proceeds from Stock Options Exercised
     and Employee Stock Purchase Plan          21,023             8,026
    Debt Issuance Costs                        (1,194)           (8,741)
    Other, Net                                    280               (82)
                                                  ---               ---
  Net Cash Provided by Financing
   Activities                                 892,018           845,436

  Effect of Exchange Rate Changes on
   Cash                                         1,461             5,324
                                                -----             -----

  (Decrease) Increase in Cash and Cash
   Equivalents                                (35,637)          375,653
  Cash and Cash Equivalents at Beginning
   of Period                                  685,751           331,311
                                              -------           -------
  Cash and Cash Equivalents at End of
   Period                                    $650,114          $706,964
                                             ========          ========






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


  The following chart adjusts three-month and six-month periods ended
  June 30, 2010 and 2009 reported Net Income (Loss) (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
                                                 June 30,
                                                 --------
                                               2010              2009
                                               ----               ---

  Reported Net Income (Loss) (GAAP)         $59,872          $(16,706)

  Mark-to-Market (MTM) Commodity Derivative
   Contracts Impact
    Total Gains                             (37,015)          (33,570)
    Realized Gains                           15,867           344,776
       Subtotal                             (21,148)          311,206
                                            -------           -------

    After-Tax MTM Impact                    (13,540)          200,261
                                            -------           -------

  Less:  Change in Fair Value of Contingent
   Consideration Liability, Net of Tax       (1,421)                -
                                             ------               ---

  Adjusted Net Income (Non-GAAP)            $44,911          $183,555
                                            =======          ========

  Net Income (Loss) Per Share (GAAP)
    Basic                                     $0.24            $(0.07)
                                              =====            ======
    Diluted                                   $0.24            $(0.07)
                                              =====            ======

  Adjusted Net Income Per Share (Non-GAAP)
    Basic                                     $0.18             $0.74
                                              =====             =====
    Diluted                                   $0.18             $0.73
                                              =====             =====

  Average Number of Shares (GAAP)
    Basic                                   250,825           248,207
                                            =======           =======
    Diluted                                 254,503           248,207
                                            =======           =======

  Average Number of Shares (Non-GAAP)
    Basic                                   250,825           248,207
                                            =======           =======
    Diluted                                 254,503           250,703
                                            =======           =======


                                              Six Months Ended
                                                  June 30,
                                                  --------
                                                2010               2009
                                                ----                ---

  Reported Net Income (Loss) (GAAP)         $177,887           $142,004

  Mark-to-Market (MTM) Commodity Derivative
   Contracts Impact
    Total Gains                              (44,818)          (384,953)
    Realized Gains                            38,827            655,740
       Subtotal                               (5,991)           270,787
                                              ------            -------

    After-Tax MTM Impact                      (3,836)           174,251
                                              ------            -------

  Less:  Change in Fair Value of Contingent
   Consideration Liability, Net of Tax       (11,354)                 -
                                             -------                ---

  Adjusted Net Income (Non-GAAP)            $162,697           $316,255
                                            ========           ========

  Net Income (Loss) Per Share (GAAP)
    Basic                                      $0.71              $0.57
                                               =====              =====
    Diluted                                    $0.70              $0.57
                                               =====              =====

  Adjusted Net Income Per Share (Non-GAAP)
    Basic                                      $0.65              $1.27
                                               =====              =====
    Diluted                                    $0.64              $1.26
                                               =====              =====

  Average Number of Shares (GAAP)
    Basic                                    250,596            248,095
                                             =======            =======
    Diluted                                  254,206            250,499
                                             =======            =======

  Average Number of Shares (Non-GAAP)
    Basic                                    250,596            248,095
                                             =======            =======
    Diluted                                  254,206            250,499
                                             =======            =======





                                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 and six-month periods
  ended June 30, 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
                                                   June 30,
                                                   --------
                                                  2010               2009
                                                  ----               ----

  Net Cash Provided by Operating
   Activities (GAAP)                          $681,053           $671,379

  Adjustments
    Exploration Costs (excluding Stock-
     Based Compensation Expenses)               44,820             29,359
    Excess Tax Benefits from Stock-Based
     Compensation                                    -             17,186
    Changes in Components of Working Capital
     and Other Assets and Liabilities
      Accounts Receivable                      (56,495)             7,905
      Inventories                               14,051               (745)
      Accounts Payable                        (107,246)            62,201
      Accrued Taxes Payable                      2,221             15,035
      Other Assets                              11,005              8,917
      Other Liabilities                          5,376              6,772
    Changes in Components of Working Capital
     Associated
      with Investing and Financing Activities   61,381            (30,585)
                                                ------            -------

  Discretionary Cash Flow (Non-GAAP)          $656,166           $787,424
                                              ========           ========


                                                Six Months Ended
                                                    June 30,
                                                    --------
                                               2010                    2009
                                               ----                    ----

  Net Cash Provided by Operating
   Activities (GAAP)                     $1,301,340              $1,277,218

  Adjustments
    Exploration Costs (excluding Stock-
     Based Compensation Expenses)            90,503                  73,830
    Excess Tax Benefits from Stock-Based
     Compensation                                 -                  21,874
    Changes in Components of Working
     Capital and Other Assets and
     Liabilities
      Accounts Receivable                    39,275                (149,021)
      Inventories                            67,363                  22,151
      Accounts Payable                     (254,878)                414,823
      Accrued Taxes Payable                   6,011                  (4,131)
      Other Assets                           24,499                   7,487
      Other Liabilities                      10,930                  24,842
    Changes in Components of Working
     Capital Associated
      with Investing and Financing
       Activities                           135,973                (169,183)
                                            -------                --------

  Discretionary Cash Flow (Non-GAAP)     $1,421,016              $1,519,890
                                         ==========              ==========






                           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.



                                                               June 30,
                                                                  2010
                                                                  ----

    Total Stockholders' Equity - (a)                             $10,131
                                                                 -------

    Current and Long-Term Debt - (b)                               3,734
    Less: Cash                                                      (650)
                                                                    ----
    Net Debt (Non-GAAP) - (c)                                      3,084
                                                                   -----

    Total Capitalization (GAAP) - (a) + (b)                      $13,865
                                                                 =======

    Total Capitalization (Non-GAAP) - (a) + (c)                  $13,215
                                                                 =======

    Debt-to-Total Capitalization (GAAP) - (b) /((a)
     + (b))                                                           27%
                                                                     ===

    Net Debt-to-Total Capitalization (Non-GAAP) -
     (c) /((a) + (c))                                                 23%
                                                                     ===



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

       (a)  Third Quarter and Full Year 2010 Forecast

  The forecast items for the third 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)
                                                       3Q 2010
  Daily Production
    Natural Gas Volumes (MMcfd)
      United States                             1,225    -       1,275
      Canada                                      195    -         205
      Trinidad                                    300    -         335
      Other International                          14    -          18
        Total                                   1,734    -       1,833

    Crude Oil and Condensate Volumes (MBbld)
      United States                              57.0    -        75.0
      Canada                                      8.0    -        10.0
      Trinidad                                    4.0    -         6.0
        Total                                    69.0    -        91.0

    Natural Gas Liquids Volumes (MBbld)
      United States                              28.0    -        34.5
      Canada                                      0.6    -         0.9
        Total                                    28.6    -        35.4

    Natural Gas Equivalent Volumes (MMcfed)
      United States                             1,735    -       1,932
      Canada                                      247    -         270
      Trinidad                                    324    -         371
      Other International                          14    -          18
        Total                                   2,320    -       2,591

  Operating Costs
    Unit Costs ($/Mcfe)
      Lease and Well                            $0.77    -       $0.81
      Transportation Costs                      $0.45    -       $0.50
      Depreciation, Depletion and Amortization  $2.37    -       $2.48

  Expenses ($MM)
    Exploration, Dry Hole and Impairment       $145.0    -      $175.0
    General and Administrative                  $73.0    -       $80.0
    Gathering and Processing                    $14.5    -       $18.5
    Capitalized Interest                        $17.6    -       $21.6
    Net Interest                                $31.0    -       $36.0

  Taxes Other Than Income (% of Revenue)          6.2%   -         6.8%

  Income Taxes
    Effective Rate                                 40%   -          55%
    Current Taxes ($MM)                           $50    -         $65

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

  Pricing -(Refer to Benchmark Commodity
   Pricing in text)
    Natural Gas ($/Mcf)
      Differentials (include the effect of
       physical contracts)
        United States -below NYMEX Henry Hub    $0.20    -       $0.40
        Canada - below NYMEX Henry Hub          $0.50    -       $0.95

      Realizations
        Trinidad                                $1.95    -       $2.55
        Other International                     $3.75    -       $5.00

    Crude Oil and Condensate ($/Bbl)
      Differentials
        United States - below WTI               $4.00    -       $5.50
        Canada - below WTI                      $5.50    -       $6.75
        Trinidad - below WTI                    $9.25    -      $12.75


                                         ESTIMATED RANGES
                                         ----------------
                                           (Unaudited)
                                                  Full Year 2010
  Daily Production
    Natural Gas Volumes (MMcfd)
      United States                            1,150    -        1,190
      Canada                                     205    -          225
      Trinidad                                   300    -          330
      Other International                         14    -           18
        Total                                  1,669    -        1,763

    Crude Oil and Condensate Volumes
     (MBbld)
      United States                             64.8    -         73.3
      Canada                                     7.0    -          9.0
      Trinidad                                   4.5    -          5.3
        Total                                   76.3    -         87.6

    Natural Gas Liquids Volumes
     (MBbld)
      United States                             25.0    -         34.5
      Canada                                     0.6    -          0.9
        Total                                   25.6    -         35.4

    Natural Gas Equivalent Volumes
     (MMcfed)
      United States                            1,689    -        1,837
      Canada                                     251    -          284
      Trinidad                                   327    -          362
      Other International                         14    -           18
        Total                                  2,281    -        2,501

  Operating Costs
    Unit Costs ($/Mcfe)
      Lease and Well                           $0.78    -        $0.81
      Transportation Costs                     $0.45    -        $0.48
      Depreciation, Depletion and
       Amortization                            $2.35    -        $2.41

  Expenses ($MM)
    Exploration, Dry Hole and
     Impairment                               $573.7    -       $623.7
    General and Administrative                $271.1    -       $284.1
    Gathering and Processing                   $58.0    -        $66.0
    Capitalized Interest                       $72.5    -        $80.5
    Net Interest                              $117.8    -       $127.3

  Taxes Other Than Income (% of
   Revenue)                                      6.4%   -          6.7%

  Income Taxes
    Effective Rate                                40%   -           50%
    Current Taxes ($MM)                         $205    -         $225

  Capital Expenditures ($MM) -FY
   2010 (Excluding Acquisitions)
    Exploration and Development,
     Excluding Facilities             Approximately            $4,820
    Exploration and Development
     Facilities                       Approximately              $350
    Gathering, Processing and Other   Approximately              $430

  Pricing -(Refer to Benchmark
   Commodity Pricing in text)
    Natural Gas ($/Mcf)
      Differentials (include the
       effect of physical contracts)
        United States -below NYMEX
         Henry Hub                             $0.10    -        $0.20
        Canada -below NYMEX Henry Hub          $0.40    -        $0.55

      Realizations
        Trinidad                               $2.20    -        $2.62
        Other International                    $4.20    -        $5.30

    Crude Oil and Condensate ($/Bbl)
      Differentials
        United States - below WTI              $4.33    -        $5.45
        Canada - below WTI                     $6.10    -        $6.90
        Trinidad - below WTI                  $10.00    -       $11.75


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

For Further Information Contact:

Investors
Maire A. Baldwin

(713) 651-6EOG (651-6364)

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

 

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