EOG Resources Reports Outstanding Third Quarter 2019 Results; Announces Two New Delaware Basin Plays and Adds 1,700 Net Premium Locations

Company Release - 11/6/2019 4:15 PM ET

HOUSTON, Nov. 6, 2019 /PRNewswire/ -- 

  • Exceeded Crude Oil Production Target Range and Raised Full-Year 2019 U.S. Crude Oil Growth Target from 14 to 15 Percent
  • Capital Expenditures Near Low End of Target Range
  • Generated Significant Net Cash From Operating Activities and Free Cash Flow
  • Reduced YTD Well Costs 5 Percent
  • Per-Unit Lease and Well and DD&A Expense Rates Below Low End of Target Ranges
  • Added 1,700 Net Premium Locations to Inventory Now Totaling 10,500 Locations and Representing Over 14 Years of Drilling Inventory
  • New Delaware Basin Wolfcamp M and Third Bone Spring Plays Add 1.6 BnBoe Net Resource Potential

EOG Resources, Inc. (EOG) today reported third quarter 2019 net income of $615 million, or $1.06 per share, compared with third quarter 2018 net income of $1.2 billion, or $2.05 per share. Net cash provided by operating activities for the third quarter 2019 was $2.1 billion.

Adjusted non-GAAP net income for the third quarter 2019 was $654 million, or $1.13 per share, compared with adjusted non-GAAP net income of $1.0 billion, or $1.75 per share, for the same prior year period. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.

Third Quarter 2019 Operating Review
Total crude oil volumes of 464,100 barrels of oil per day (Bopd) in the third quarter 2019 increased 12 percent compared to the same prior year period and were above the high end of the target range. Natural gas liquids (NGLs) and natural gas volumes each grew 11 percent. EOG incurred total expenditures of $1.6 billion in the third quarter. Cash capital expenditures before acquisitions of $1.5 billion were near the low end of the target range. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.

EOG continued to lower operating costs during the third quarter 2019. Per-unit transportation costs declined nine percent compared to the same prior-year period, depreciation, depletion and amortization expenses fell seven percent year-over-year, and lease and well expenses declined three percent year-over-year.

EOG generated $2.0 billion of discretionary cash flow in the third quarter 2019. After considering cash capital expenditures before acquisitions of $1.5 billion and dividend payments of $166 million, EOG generated free cash flow during the third quarter 2019 of $337 million. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures. 

"EOG's operating performance has never been better. The company generated outstanding financial results in the third quarter driven by improvements in every area," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "We reduced operating expenses, grew volumes at double-digit rates while lowering well costs and generated substantial free cash flow. EOG has never been in a better position to sustain this success long into the future."

New Delaware Basin Plays and Premium Inventory Update
EOG expanded its lineup of premium plays in the Delaware Basin with the addition of the Wolfcamp M and the Third Bone Spring. The drilling locations in these two plays are highly economic at a flat $40 oil price and flat $2.50 natural gas price, consistent with EOG's definition of premium inventory. The company continues to deepen its technical knowledge of the Delaware Basin as it executes its development program. EOG collects significant amounts of data on each well, integrates it with existing models and incorporates analysis from numerous spacing and targeting tests.

EOG has identified an initial 855 net premium drilling locations in the Wolfcamp M, with estimated net resource potential of 1.0 billion barrels of oil equivalent across its 193,000 net acre position. The wells in this deeper section of the Wolfcamp formation produce roughly equal parts oil, NGLs and natural gas. Benefiting from EOG's low well costs, Wolfcamp M wells deliver strong premium economics and exceptionally low finding costs.

To define the play, EOG has gathered extensive subsurface information and has completed six Wolfcamp M wells, including two during 2019. The Green Drake 16 Fed Com #759H was completed in Lea County, NM with a treated lateral length of 7,200 feet and a 30-day initial production rate of 4,165 barrels of oil equivalent per day (Boed), or 2,145 Bopd, 1,070 barrels per day (Bpd) of NGLs and 5.7 million cubic feet per day (MMcfd) of natural gas. In Reeves County, TX, the State Correa #3H was completed with a treated lateral length of 9,900 feet and a 30-day initial production rate of 2,800 Boed, or 1,175 Bopd, 845 Bpd of NGLs and 4.7 MMcfd of natural gas.

EOG has identified an initial 615 net premium drilling locations in the Third Bone Spring, with estimated net resource potential of 585 million barrels of oil equivalent across its 200,000 net acre position. EOG's early focus in the Delaware Basin has been on development of the Wolfcamp formation, which sits below the Third Bone Spring. Each of the Wolfcamp wells has drilled through the Third Bone Spring, providing significant technical data and helping to delineate multiple targets within the play.

EOG has completed over 50 Third Bone Spring wells to date, including 10 net wells in 2019. The McGregor D 5 #592H targeted the Third Bone Spring Carbonate and was completed in Loving County, TX with a treated lateral length of 9,700 feet and a 30-day initial production rate of 2,865 Boed, or 1,990 Bopd, 500 Bpd of NGLs and 2.3 MMcfd of natural gas. In Lea County, NM, the Caravan 28 State Com #601H and the Convoy 28 State Com #606H targeted the Third Bone Spring Sand and were completed with an average treated lateral length of 10,000 feet per well and average 30-day initial production rates per well of 3,985 Boed, or 2,730 Bopd, 670 Bpd of NGLs and 3.5 MMcfd of natural gas.

In total, EOG added 1,700 net premium drilling locations to its undrilled premium inventory in the third quarter 2019. Taking into account approximately 640 net wells drilled to date in 2019 and updated location counts across its portfolio, EOG's premium inventory now totals 10,500 net locations, representing more than 14 years of high-return drilling inventory.

"EOG is a returns-focused company where organic growth is driven by exploration and low-cost development. The announcement of two more premium plays in the Delaware Basin and the addition of 1,700 new net premium drilling locations demonstrate the sustainability of our unique business model," Thomas continued. "EOG continues to demonstrate its ability to generate attractive returns on capital through reinvestment in an improving inventory of premium wells across multiple plays. Our best-in-class assets prove that EOG can adapt to changing industry conditions and create significant shareholder value for years to come."

Financial Review
EOG further strengthened its financial position during the third quarter 2019. At September 30, 2019, EOG's total debt outstanding was $5.2 billion for a debt-to-total capitalization ratio of 20 percent. Considering $1.6 billion of cash on the balance sheet at the end of the third quarter, EOG's net debt was $3.6 billion for a net debt-to-total capitalization ratio of 15 percent. For a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

Third Quarter 2019 Results Webcast
Thursday, November 7, 2019, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG website for one year.
http://investors.eogresources.com/Investors

About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States, Trinidad, and China. To learn more visit www.eogresources.com.

Investor Contacts
David Streit  713-571-4902
Neel Panchal  713-571-4884

Media and Investor Contact
Kimberly Ehmer  713-571-4676

This press release may include 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, capital expenditures, costs and asset sales, statements regarding future commodity prices 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," "aims," "goal," "may," "will," "should" 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, generate returns, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness or pay and/or increase dividends 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, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control.  Furthermore, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow or discretionary cash flow, and certain related estimates regarding future performance, results and financial position.  Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates.  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, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
  • ­the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
  • ­the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects;
  • ­the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production;
  • ­the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation and refining 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, and EOG's ability to retain mineral licenses and leases;
  • ­the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations; climate change and other environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
  • ­EOG's ability to effectively integrate acquired crude oil and natural gas 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;
  • ­the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
  • ­competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
  • ­the availability and cost of employees and other personnel, facilities, equipment, materials (such as water and tubulars) and services;
  • ­the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
  • ­weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression, storage 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, and to otherwise satisfy its capital expenditure requirements;
  • ­the extent to which EOG is successful in its completion of planned asset dispositions;
  • ­the extent and effect of any hedging activities engaged in by EOG;
  • ­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;
  • ­geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
  • ­the use of competing energy sources and the development of alternative energy sources;
  • ­the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
  • ­acts of war and terrorism and responses to these acts;
  • ­physical, electronic and cybersecurity breaches; and
  • ­the other factors described under ITEM 1A, Risk Factors, on pages 13 through 22 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

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 duration or 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.

The United States Securities and Exchange Commission (SEC) 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).  Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources 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, 2018, 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.  In addition, reconciliation and calculation schedules for non-GAAP financial measures can be found on the EOG website at www.eogresources.com.

EOG RESOURCES, INC.

Financial Report

(Unaudited; in millions, except per share data)














Three Months Ended


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018













Operating Revenues and Other

$

4,303.5


$

4,781.6


$

13,059.7


$

12,700.9

Net Income 

$

615.1


$

1,191.0


$

2,098.4


$

2,526.3

Net Income Per Share 












        Basic

$

1.06


$

2.06


$

3.63


$

4.38

        Diluted

$

1.06


$

2.05


$

3.61


$

4.35

Average Number of Common Shares












        Basic


577.8



577.3



577.5



576.4

        Diluted


581.3



581.6



581.2



580.4

























Summary Income Statements

(Unaudited; in thousands, except per share data)














Three Months Ended


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018

Operating Revenues and Other








        Crude Oil and Condensate

$

2,418,989


$

2,655,278


$

7,148,258


$

7,134,114

        Natural Gas Liquids


164,736



353,704



569,748



861,473

        Natural Gas


269,625



311,713



874,489



912,324

        Gains (Losses) on Mark-to-Market Commodity
           Derivative Contracts


85,902



(52,081)



242,622



(297,735)

        Gathering, Processing and Marketing


1,334,450



1,360,992



4,121,490



3,899,250

        Gains (Losses) on Asset Dispositions, Net


(523)



115,944



3,650



94,658

        Other, Net


30,276



36,074



99,470



96,779

               Total


4,303,455



4,781,624



13,059,727



12,700,863

Operating Expenses












        Lease and Well


348,883



321,568



1,032,455



936,236

        Transportation Costs


199,365



196,027



549,988



550,781

        Gathering and Processing Costs


127,549



114,063



351,487



324,577

        Exploration Costs


34,540



32,823



103,386



115,137

        Dry Hole Costs


24,138



358



28,001



5,260

        Impairments 


105,275



44,617



289,761



160,934

        Marketing Costs


1,343,293



1,326,974



4,114,265



3,853,827

        Depreciation, Depletion and Amortization


953,597



918,180



2,790,496



2,515,445

        General and Administrative


135,758



111,284



364,210



310,065

        Taxes Other Than Income


203,098



209,043



600,418



582,395

               Total


3,475,496



3,274,937



10,224,467



9,354,657













Operating Income 


827,959



1,506,687



2,835,260



3,346,206













Other Income (Expense), Net


9,118



3,308



23,233



(4,516)













Income Before Interest Expense and Income Taxes


837,077



1,509,995



2,858,493



3,341,690













Interest Expense, Net


39,620



63,632



144,434



189,032













Income Before Income Taxes


797,457



1,446,363



2,714,059



3,152,658













Income Tax Provision 


182,335



255,411



615,670



626,386













Net Income 

$

615,122


$

1,190,952


$

2,098,389


$

2,526,272













Dividends Declared per Common Share

$

0.2875


$

0.2200


$

0.7950


$

0.5900

 

EOG RESOURCES, INC.

Operating Highlights

(Unaudited)


















Three Months Ended




Nine Months Ended




September 30,




September 30,




2019


2018


% Change


2019


2018


% Change

Wellhead Volumes and Prices








Crude Oil and Condensate Volumes (MBbld) (A)








      United States


463.2



409.2


13%



451.2



382.9


18%

      Trinidad


0.8



0.8


0%



0.7



0.8


-13%

      Other International (B)


0.1



5.0


-98%



0.1



4.1


-98%

            Total


464.1



415.0


12%



452.0



387.8


17%

















Average Crude Oil and Condensate Prices ($/Bbl) (C)
















      United States

$

56.67


$

69.53


-18%


$

57.95


$

67.35


-14%

      Trinidad


48.36



61.71


-22%



47.26



58.91


-20%

      Other International (B)


59.87



72.81


-18%



58.43



71.83


-19%

            Composite


56.66



69.55


-19%



57.93



67.38


-14%

















Natural Gas Liquids Volumes (MBbld) (A)
















      United States


141.3



127.8


11%



130.8



113.9


15%

      Other International (B)


-



-





-



-



            Total


141.3



127.8


11%



130.8



113.9


15%

















Average Natural Gas Liquids Prices ($/Bbl) (C)
















      United States

$

12.67


$

30.09


-58%


$

15.96


$

27.71


-42%

      Other International (B)


-



-





-



-



            Composite


12.67



30.09


-58%



15.96



27.71


-42%

















Natural Gas Volumes (MMcfd) (A)
















      United States


1,079



948


14%



1,043



905


15%

      Trinidad


260



260


0%



267



278


-4%

      Other International (B)


34



28


21%



36



31


16%

            Total


1,373



1,236


11%



1,346



1,214


11%

















Average Natural Gas Prices ($/Mcf) (C)
















      United States

$

1.97


$

2.67


-26%


$

2.23


$

2.66


-16%

      Trinidad


2.52



2.88


-12%



2.71



2.91


-7%

      Other International (B)


4.25



3.83


11%



4.29



4.10


5%

            Composite


2.13



2.74


-22%



2.38



2.75


-14%

















Crude Oil Equivalent Volumes (MBoed) (D)
















      United States 


784.3



695.0


13%



755.8



647.6


17%

      Trinidad


44.1



44.1


0%



45.1



47.2


-4%

      Other International (B)


5.8



9.7


-40%



6.2



9.2


-33%

            Total


834.2



748.8


11%



807.1



704.0


15%

















Total MMBoe (D)


76.7



68.9


11%



220.3



192.2


15%


(A) Thousand barrels per day or million cubic feet per day, as applicable.

(B) Other International includes EOG's United Kingdom, China and Canada operations.  The United Kingdom operations were sold in the fourth quarter of 2018.

(C) Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2019).

(D) Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, NGLs and natural gas.  Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas.  MMBoe is calculated by multiplying the MBoed 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)















September 30,


December 31,




2019


2018

ASSETS




Current Assets








     Cash and Cash Equivalents



$

1,583,105


$

1,555,634

     Accounts Receivable, Net




1,927,996



1,915,215

     Inventories




778,120



859,359

     Assets from Price Risk Management Activities




122,627



23,806

     Income Taxes Receivable




135,680



427,909

     Other




272,203



275,467

            Total




4,819,731



5,057,390









Property, Plant and Equipment








     Oil and Gas Properties (Successful Efforts Method)




61,620,033



57,330,016

     Other Property, Plant and Equipment




4,394,486



4,220,665

            Total Property, Plant and Equipment




66,014,519



61,550,681

     Less:  Accumulated Depreciation, Depletion and Amortization




(35,810,197)



(33,475,162)

            Total Property, Plant and Equipment, Net




30,204,322



28,075,519

Deferred Income Taxes




1,998



777

Other Assets




1,516,218



800,788

Total Assets



$

36,542,269


$

33,934,474









LIABILITIES AND STOCKHOLDERS' EQUITY




Current Liabilities








     Accounts Payable



$

2,395,080


$

2,239,850

     Accrued Taxes Payable




302,774



214,726

     Dividends Payable




166,215



126,971

     Current Portion of Long-Term Debt




1,014,200



913,093

     Current Portion of Operating Lease Liabilities




384,348



-

     Other




211,096



233,724

            Total




4,473,713



3,728,364

















Long-Term Debt




4,163,115



5,170,169

Other Liabilities




1,858,357



1,258,355

Deferred Income Taxes




4,922,804



4,413,398

Commitments and Contingencies
















Stockholders' Equity








     Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 
        582,066,483 Shares Issued at September 30, 2019 and 580,408,117 
        Shares Issued at December 31, 2018 




205,821



205,804

     Additional Paid in Capital




5,769,073



5,658,794

     Accumulated Other Comprehensive Loss




(3,689)



(1,358)

     Retained Earnings




15,179,381



13,543,130

     Common Stock Held in Treasury, 289,903 Shares at September 30, 2019
        and 385,042 Shares at December 31, 2018




(26,306)



(42,182)

            Total Stockholders' Equity




21,124,280



19,364,188

Total Liabilities and Stockholders' Equity



$

36,542,269


$

33,934,474

 

EOG RESOURCES, INC.

Summary Statements of Cash Flows

(Unaudited; in thousands)














Three Months Ended


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018

Cash Flows from Operating Activities












Reconciliation of Net Income to Net Cash Provided by Operating Activities:












     Net Income

$

615,122


$

1,190,952


$

2,098,389


$

2,526,272

     Items Not Requiring (Providing) Cash












            Depreciation, Depletion and Amortization


953,597



918,180



2,790,496



2,515,445

            Impairments 


105,275



44,617



289,761



160,934

            Stock-Based Compensation Expenses


54,670



49,001



132,323



116,290

            Deferred Income Taxes


184,282



334,116



508,576



681,702

            (Gains) Losses on Asset Dispositions, Net


523



(115,944)



(3,650)



(94,658)

            Other, Net


(1,284)



1,807



4,155



15,314

     Dry Hole Costs


24,138



358



28,001



5,260

     Mark-to-Market Commodity Derivative Contracts












            Total (Gains) Losses


(85,902)



52,081



(242,622)



297,735

            Net Cash Received from (Payments for) Settlements of Commodity
              Derivative Contracts 


108,418



(91,894)



139,708



(180,228)

     Other, Net


(424)



1,913



1,215



1,652

     Changes in Components of Working Capital and Other Assets and Liabilities












            Accounts Receivable


63,891



(243,778)



(5,855)



(553,529)

            Inventories


66,857



(94,598)



55,598



(286,817)

            Accounts Payable


7,400



81,548



134,253



537,525

            Accrued Taxes Payable


34,767



(59,426)



88,047



(36,891)

            Other Assets


(92,814)



(40,491)



394,573



(103,334)

            Other Liabilities


39,791



38,392



(18,315)



(14,776)

     Changes in Components of Working Capital Associated with Investing and
        Financing Activities


(16,643)



122,763



(38,677)



95,484

Net Cash Provided by Operating Activities


2,061,664



2,189,597



6,355,976



5,683,380













Investing Cash Flows












     Additions to Oil and Gas Properties


(1,420,385)



(1,591,646)



(4,866,882)



(4,571,932)

     Additions to Other Property, Plant and Equipment


(70,469)



(57,526)



(187,350)



(202,384)

     Proceeds from Sales of Assets


17,767



3,306



35,409



11,582

     Other Investing Activities


-



(19,993)



-



(19,993)

     Changes in Components of Working Capital Associated with Investing Activities


16,621



(122,791)



38,677



(95,541)

Net Cash Used in Investing Activities


(1,456,466)



(1,788,650)



(4,980,146)



(4,878,268)













Financing Cash Flows












     Long-Term Debt Repayments


-



-



(900,000)



-

     Dividends Paid


(166,170)



(107,465)



(420,851)



(311,075)

     Treasury Stock Purchased


(13,835)



(26,535)



(22,238)



(58,558)

     Proceeds from Stock Options Exercised and Employee Stock Purchase Plan 


863



953



9,558



12,098

     Debt Issuance Costs


(114)



-



(5,016)



-

     Repayment of Capital Lease Obligation


(3,235)



(1,698)



(9,638)



(5,052)

     Changes in Components of Working Capital Associated with Financing Activities


22



28



-



57

Net Cash Used in Financing Activities


(182,469)



(134,717)



(1,348,185)



(362,530)













Effect of Exchange Rate Changes on Cash


(109)



(313)



(174)



(2,678)













Increase in Cash and Cash Equivalents


422,620



265,917



27,471



439,904

Cash and Cash Equivalents at Beginning of Period


1,160,485



1,008,215



1,555,634



834,228

Cash and Cash Equivalents at End of Period

$

1,583,105


$

1,274,132


$

1,583,105


$

1,274,132

 

EOG RESOURCES, INC.

Third Quarter 2019 Well Results by Play

(Unaudited)
















Wells On Line




Initial Gross 30-Day Average Production Rate


Gross


Net


Lateral
Length (ft)


Crude Oil and
Condensate
(Bbld) (A)


Natural Gas
Liquids
(Bbld) (A)


 Natural Gas
(MMcfd) (A)


Crude Oil
Equivalent
(Boed) (B)

Delaware Basin














Wolfcamp

51


48


7,300


1,950


650


3.3


3,150

Bone Spring

24


21


5,900


1,600


350


1.9


2,300

Leonard

2


1


9,700


2,000


600


3.0


3,100















South Texas Eagle Ford

81


74


7,900


1,150


100


0.6


1,350















South Texas Austin Chalk

4


2


4,600


1,850


350


1.8


2,500















Powder River Basin














Turner / Parkman

7


6


9,800


800


200


3.3


1,550

Niobrara

1


1


10,200


1,250


250


4.0


2,200















DJ Basin Codell / Niobrara

5


4


9,700


800


50


0.4


900















Williston Basin Bakken/Three Forks

15


13


10,600


2,150


300


2.0


2,800















Anadarko Basin Woodford Oil Window

16


14


9,900


950


100


0.7


1,150


(A)  Barrels per day or million cubic feet per day, as applicable.

(B)  Barrels of oil equivalent per day; includes crude oil and condensate, natural gas liquids and natural gas.  Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or natural gas liquids to 6.0 thousand cubic feet of natural gas.

 

EOG RESOURCES, INC.

Reconciliation of Adjusted Net Income

(Unaudited; in thousands, except per share data)

































The following chart adjusts the three-month and nine-month periods ended September 30, 2019 and 2018 reported Net Income (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions in 2019 and 2018, to add back impairment charges related to certain of EOG's assets in 2019 and 2018 and to eliminate certain adjustments in 2018 related to the 2017 U.S. tax reform.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.


















Three Months Ended 


Three Months Ended 


September 30, 2019


September 30, 2018




















Income




Diluted




Income




Diluted


Before


Tax


After


Earnings


Before


Tax


After


Earnings


Tax


Impact


Tax


per Share


Tax


Impact


Tax


per Share

Reported Net Income (GAAP)

$   797,457


$(182,335)


$   615,122


$      1.06


$1,446,363


$(255,411)


$1,190,952


$      2.05

Adjustments:
















(Gains) Losses on Mark-to-Market Commodity
     Derivative Contracts

(85,902)


18,854


(67,048)


(0.12)


52,081


(11,472)


40,609


0.07

Net Cash Received from (Payments for)
     Settlements of Commodity Derivative
     Contracts

108,418


(23,796)


84,622


0.15


(91,894)


20,241


(71,653)


(0.12)

Add:  (Gains) Losses on Asset Dispositions, Net

523


(89)


434


-


(115,944)


28,934


(87,010)


(0.15)

Add:  Certain Impairments

27,215


(5,973)


21,242


0.04


-


-


-


-

Less:  Tax Reform Impact

-


-


-


-


-


(57,127)


(57,127)


(0.10)

Adjustments to Net Income 

50,254


(11,004)


39,250


0.07


(155,757)


(19,424)


(175,181)


(0.30)

















Adjusted Net Income (Non-GAAP)

$   847,711


$(193,339)


$   654,372


$      1.13


$1,290,606


$(274,835)


$1,015,771


$      1.75

















Average Number of Common Shares (GAAP)
















       Basic







577,839








577,254

       Diluted







581,271








581,559


































Nine Months Ended 


Nine Months Ended 


September 30, 2019


September 30, 2018




















Income




Diluted




Income




Diluted


Before


Tax


After


Earnings


Before


Tax


After


Earnings


Tax


Impact


Tax


per Share


Tax


Impact


Tax


per Share

Reported Net Income (GAAP)

$2,714,059


$(615,670)


$2,098,389


$      3.61


$3,152,658


$(626,386)


$2,526,272


$      4.35

Adjustments:
















(Gains) Losses on Mark-to-Market Commodity
     Derivative Contracts

(242,622)


53,251


(189,371)


(0.34)


297,735


(65,582)


232,153


0.40

Net Cash Received from (Payments for)
     Settlements of Commodity Derivative
     Contracts

139,708


(30,663)


109,045


0.19


(180,228)


39,699


(140,529)


(0.24)

Add:  (Gains) Losses on Asset Dispositions, Net

(3,650)


910


(2,740)


-


(94,658)


24,235


(70,423)


(0.12)

Add:  Certain Impairments

116,249


(25,514)


90,735


0.16


20,876


(4,598)


16,278


0.03

Less:  Tax Reform Impact

-


-


-


-


-


(63,651)


(63,651)


(0.11)

Adjustments to Net Income

9,685


(2,016)


7,669


0.01


43,725


(69,897)


(26,172)


(0.04)

















Adjusted Net Income (Non-GAAP)

$2,723,744


$(617,686)


$2,106,058


$      3.62


$3,196,383


$(696,283)


$2,500,100


$      4.31