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EOG Resources Reports Excellent Fourth Quarter and Full-Year 2019 Results; Announces 2020 Capital Program; Raises Dividend by 30 Percent

HOUSTON, Feb. 27, 2020 /PRNewswire/ --

  • Increased Common Stock Dividend by 30 Percent to $1.50 Indicated Annual Rate
  • Earned $2.7 Billion Net Income in 2019, or $4.71 per Share
  • Generated $8.2 Billion Net Cash from Operating Activities and Significant Free Cash Flow
  • Exceeded Fourth Quarter and Full-Year 2019 Crude Oil Production Target with Capital Expenditures Below Target
  • Lease and Well and DD&A Expense Rates Below Target in Fourth Quarter and Full-Year 2019
  • Increased Proved Reserves by 14% and Replaced 253% of 2019 Production at $8.21 per Boe Finding Cost
  • $6.3 to $6.7 Billion Capital Program Targets 10-14% Crude Oil Volume Growth in 2020
  • 2020 Capital Program and Dividend Funded with Net Cash from Operating Activities at Oil Prices Below $50

EOG Resources, Inc. (EOG) today reported fourth quarter 2019 net income of $637 million, or $1.10 per share, compared with fourth quarter 2018 net income of $893 million, or $1.54 per share. Net cash from operating activities for the fourth quarter 2019 was $1.8 billion. For the full year 2019, EOG reported net income of $2.7 billion, or $4.71 per share, compared with net income of $3.4 billion, or $5.89 per share, for the full year 2018. Net cash from operating activities for the full year 2019 was $8.2 billion.

Adjusted non-GAAP net income for the fourth quarter 2019 was $787 million, or $1.35 per share, compared with adjusted non-GAAP net income of $718 million, or $1.24 per share, for the same prior year period. Adjusted non-GAAP net income for the full year 2019 was $2.9 billion, or $4.98 per share, compared with adjusted non-GAAP net income of $3.2 billion, or $5.54 per share, for the full year 2018.

Increased crude oil production from high-return operating areas and reductions in per-unit operating costs contributed to EOG's strong fourth quarter 2019 financial results. Adjusted earnings per share, discretionary cash flow and adjusted EBITDAX increased in the fourth quarter 2019 compared with the same prior year period, demonstrating EOG's resiliency and ability to overcome declines in commodity prices. Please refer to the attached tables for definitions and the reconciliation of non-GAAP measures to GAAP measures.

Fourth Quarter and Full Year 2019 Operating Review

Capital efficiency improvements from increased well productivity and cost reductions across EOG's premium plays supported strong operating and financial performance in 2019. United States crude oil volumes grew 15 percent to 455,500 barrels of oil per day (Bopd). Total company natural gas liquids production increased 16 percent, while total company natural gas volumes grew 12 percent.

Total crude oil volumes in the fourth quarter 2019 were 468,900 Bopd, which was above the midpoint of the target range and represents an eight percent increase compared with the same prior year period. Natural gas liquids and natural gas volumes increased by 17 percent and 15 percent, respectively, during this same period. EOG incurred total expenditures of $1.5 billion in the fourth quarter. Total cash capital expenditures before acquisitions of $1.4 billion were below the low end of the target range. Please refer to the attached tables for definitions and the reconciliation of non-GAAP measures to GAAP measures.

EOG continued to lower operating costs during the fourth quarter 2019. Lease and well costs declined 13 percent, transportation costs fell five percent and depreciation, depletion and amortization (DD&A) expenses fell six percent, all on a per-unit basis compared with the same prior-year period. The company also continued to implement sustainable efficiency improvements to reduce well costs. The fourth quarter improvements brought full-year 2019 well cost reductions to seven percent, two percentage points ahead of the target.

EOG generated $2.1 billion of discretionary cash flow in the fourth quarter 2019. After considering total cash capital expenditures before acquisitions of $1.4 billion, EOG generated free cash flow during the fourth quarter 2019 of $723 million. For the full year 2019, EOG generated $8.1 billion of discretionary cash flow and incurred total cash capital expenditures before acquisitions of $6.2 billion, resulting in free cash flow of $1.9 billion. Please refer to the attached tables for definitions and the reconciliation of non-GAAP measures to GAAP measures. As is further explained in the attached reconciliation tables, EOG now defines its free cash flow for a period as its discretionary cash flow for such period less its total cash capital expenditures (before acquisitions) for such period (without regards to the dividends paid in such period).  EOG believes this definition of free cash flow is more consistent with that utilized by other companies in the industry. 

"Year after year, EOG keeps getting better, delivering record operating performance in 2019. Significant capital efficiency improvements from strong well productivity and sustainable cost reductions allowed us to deliver higher production with less capital investment than we planned at the beginning of the year," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "We did this while generating substantial free cash flow, strengthening our financial position and increasing the dividend. This was the third consecutive year since our transition to premium drilling that EOG delivered double-digit returns and production growth along with strong free cash flow."

2020 Capital Plan

The purpose of EOG's annual capital program is to generate high returns on investment and increase the company's business value. Exploration and development expenditures for 2020 are expected to range from $6.3 billion to $6.7 billion, including facilities and gathering, processing and other expenditures, and excluding acquisitions and non-cash exchanges. The disciplined capital program supports growth in crude oil production of 10 to 14 percent in 2020 and funds dividend payments with net cash from operating activities at less than $50 oil.

Due to the decline in crude oil prices, the 2020 capital plan allocates slightly less capital to growing oil production than in 2019. To continue to improve the company, the 2020 plan allocates more capital than in 2019 to fund new high-quality drilling potential and high-return infrastructure to further lower EOG's cost structure and environmental footprint. With the benefit of sustainable cost reductions and operational efficiencies, EOG expects to complete approximately 800 net wells in 2020 compared with 750 net wells in 2019. Activity will remain focused in EOG's highest rate-of-return oil assets in the Delaware Basin, Eagle Ford and Rocky Mountain Area.

"EOG's 2020 capital plan reflects continued improvement in capital efficiency, highlights the resiliency of our business model, and ensures the capital program and dividend payments can be funded at a conservative oil price. Looking to the future, our 2020 plan also invests in new high-return drilling potential and infrastructure development to lower costs and further improve the company," Thomas said. "EOG's sustainable competitive advantages already position us as one of the lowest cost oil producers in the global market and we are poised to extend our cost advantage well into the future."

Dividend Increase

The board of directors declared a dividend of $0.375 per share on EOG's Common Stock, an increase of 30 percent. The dividend will be payable April 30, 2020, to stockholders of record as of April 16, 2020. The indicated annual rate is $1.50 per share.

"EOG's high-return premium drilling program and our low cost structure allow us to continue upholding the commitment we have made to return more cash to shareholders. This latest dividend increase demonstrates the confidence we have in our ability to grow cash flow, generate high returns through our premium well strategy and improve our future inventory with high quality new drilling potential," Thomas said.

Reserves

At year-end 2019, total company net proved reserves were 3,329 million barrels of oil equivalent (MMBoe), a 14 percent increase compared with year-end 2018. Net proved reserve additions from all sources, excluding revisions due to price, replaced 253 percent of EOG's 2019 production at a finding and development cost of $8.21 per barrel of oil equivalent. Revisions due to price decreased net proved reserves by 60 MMBoe and asset divestitures decreased net proved reserves by five MMBoe. For more reserves detail and a reconciliation of non-GAAP measures to GAAP measures please refer to the attached tables.

For the 32nd consecutive year, internal reserves estimates were within five percent of estimates independently prepared by DeGolyer and MacNaughton.

Financial Review

EOG further strengthened its financial position during the fourth quarter 2019. At December 31, 2019, EOG's total debt outstanding was $5.2 billion for a debt-to-total capitalization ratio of 19 percent. Considering cash on the balance sheet at the end of the fourth quarter, EOG's net debt was $3.1 billion for a net debt-to-total capitalization ratio of 13 percent. For definitions and the reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

Fourth Quarter 2019 Results Webcast
Friday, February 28, 2020, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG's 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.  Because we provide these measures on a forward-looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures. Management believes these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry.  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 (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion, operating and capital costs related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
  • ­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;
  • ­security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;
  • ­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 drilling, completing and operating costs with respect to such properties;
  • ­the extent to which EOG's fourth-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 fourth 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; and
  • ­the other factors described under ITEM 1A, Risk Factors, on pages 13 through 23 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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, 2019, 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

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2019

 

2018

 

2019

 

2018

                       

Operating Revenues and Other

$

4,320.2

 

$

4,574.5

 

$

17,380.0

 

$

17,275.4

Net Income 

$

636.5

 

$

892.8

 

$

2,734.9

 

$

3,419.0

Net Income Per Share 

                     

        Basic

$

1.10

 

$

1.55

 

$

4.73

 

$

5.93

        Diluted

$

1.10

 

$

1.54

 

$

4.71

 

$

5.89

Average Number of Common Shares

                     

        Basic

 

578.2

   

577.0

   

577.7

   

576.6

        Diluted

 

580.8

   

580.3

   

580.8

   

580.4

                       
                       

Summary Income Statements

(Unaudited; in thousands, except per share data)

                       
 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2019

 

2018

 

2019

 

2018

Operating Revenues and Other

             

        Crude Oil and Condensate

$

2,464,274

 

$

2,383,326

 

$

9,612,532

 

$

9,517,440

        Natural Gas Liquids

 

215,070

   

266,037

   

784,818

   

1,127,510

        Natural Gas

 

309,606

   

389,213

   

1,184,095

   

1,301,537

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

 

(62,347)

   

132,095

   

180,275

   

(165,640)

        Gathering, Processing and Marketing

 

1,238,792

   

1,331,105

   

5,360,282

   

5,230,355

        Gains on Asset Dispositions, Net

 

119,963

   

79,904

   

123,613

   

174,562

        Other, Net

 

34,888

   

(7,144)

   

134,358

   

89,635

               Total

 

4,320,246

   

4,574,536

   

17,379,973

   

17,275,399

Operating Expenses

                     

        Lease and Well

 

334,538

   

346,442

   

1,366,993

   

1,282,678

        Transportation Costs

 

208,312

   

196,095

   

758,300

   

746,876

        Gathering and Processing Costs

 

127,615

   

112,396

   

479,102

   

436,973

        Exploration Costs

 

36,495

   

33,862

   

139,881

   

148,999

        Dry Hole Costs

 

-

   

145

   

28,001

   

5,405

        Impairments 

 

228,135

   

186,087

   

517,896

   

347,021

        Marketing Costs

 

1,237,259

   

1,349,416

   

5,351,524

   

5,203,243

        Depreciation, Depletion and Amortization

 

959,208

   

919,963

   

3,749,704

   

3,435,408

        General and Administrative

 

125,187

   

116,904

   

489,397

   

426,969

        Taxes Other Than Income

 

199,746

   

190,086

   

800,164

   

772,481

               Total

 

3,456,495

   

3,451,396

   

13,680,962

   

12,806,053

                       

Operating Income 

 

863,751

   

1,123,140

   

3,699,011

   

4,469,346

                       

Other Income, Net

 

8,152

   

21,220

   

31,385

   

16,704

                       

Income Before Interest Expense and Income Taxes

 

871,903

   

1,144,360

   

3,730,396

   

4,486,050

                       

Interest Expense, Net

 

40,695

   

56,020

   

185,129

   

245,052

                       

Income Before Income Taxes

 

831,208

   

1,088,340

   

3,545,267

   

4,240,998

                       

Income Tax Provision 

 

194,687

   

195,572

   

810,357

   

821,958

                       

Net Income 

$

636,521

 

$

892,768

 

$

2,734,910

 

$

3,419,040

                       

Dividends Declared per Common Share

$

0.2875

 

$

0.2200

 

$

1.0825

 

$

0.8100

 

 

 

EOG RESOURCES, INC.

Operating Highlights

(Unaudited)

                               
 

Three Months Ended

     

Twelve Months Ended

   
 

December 31,

     

December 31,

   
 

2019

 

2018

 

% Change

 

2019

 

2018

 

% Change

Wellhead Volumes and Prices

             

Crude Oil and Condensate Volumes (MBbld) (A)

             

      United States

 

468.3

   

430.3

 

9%

   

455.5

   

394.8

 

15%

      Trinidad

 

0.5

   

0.8

 

-38%

   

0.6

   

0.8

 

-25%

      Other International (B)

 

0.1

   

4.5

 

-98%

   

0.1

   

4.3

 

-98%

            Total

 

468.9

   

435.6

 

8%

   

456.2

   

399.9

 

14%

                               

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

                             

      United States

$

57.14

 

$

59.37

 

-4%

 

$

57.74

 

$

65.16

 

-11%

      Trinidad

 

46.73

   

51.80

 

-10%

   

47.16

   

57.26

 

-18%

      Other International (B)

 

53.76

   

70.44

 

-24%

   

57.40

   

71.45

 

-20%

            Composite

 

57.13

   

59.47

 

-4%

   

57.72

   

65.21

 

-11%

                               

Natural Gas Liquids Volumes (MBbld) (A)

                             

      United States

 

144.0

   

122.8

 

17%

   

134.1

   

116.1

 

16%

      Other International (B)

 

-

   

-

       

-

   

-

   

            Total

 

144.0

   

122.8

 

17%

   

134.1

   

116.1

 

16%

                               

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

                             

      United States

$

16.23

 

$

23.54

 

-31%

 

$

16.03

 

$

26.60

 

-40%

      Other International (B)

 

-

   

-

       

-

   

-

   

            Composite

 

16.23

   

23.54

 

-31%

   

16.03

   

26.60

 

-40%

                               

Natural Gas Volumes (MMcfd) (A)

                             

      United States

 

1,148

   

974

 

18%

   

1,069

   

923

 

16%

      Trinidad

 

242

   

230

 

5%

   

260

   

266

 

-2%

      Other International (B)

 

35

   

32

 

9%

   

37

   

30

 

23%

            Total

 

1,425

   

1,236

 

15%

   

1,366

   

1,219

 

12%

                               

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

                             

      United States

$

2.20

 

$

3.50

 

-37%

 

$

2.22

 

$

2.88

 

-23%

      Trinidad

 

2.78

   

3.03

 

-8%

   

2.72

   

2.94

 

-7%

      Other International (B)

 

4.88

   

4.02

 

22%

   

4.44

   

4.08

 

9%

            Composite

 

2.36

   

3.42

 

-31%

   

2.38

   

2.92

 

-19%

                               

Crude Oil Equivalent Volumes (MBoed) (D)

                             

      United States 

 

803.6

   

715.5

 

12%

   

767.8

   

664.7

 

16%

      Trinidad

 

40.9

   

39.0

 

5%

   

44.0

   

45.1

 

-2%

      Other International (B)

 

5.8

   

10.0

 

-42%

   

6.2

   

9.4

 

-34%

            Total

 

850.3

   

764.5

 

11%

   

818.0

   

719.2

 

14%

                               

Total MMBoe (D)

 

78.2

   

70.3

 

11%

   

298.6

   

262.5

 

14%

                               

(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 Consolidated Financial Statements in EOG's Annual Report on Form 10-K for the year ended December 31, 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)

           
 

December 31,

 

December 31,

 

2019

 

2018

ASSETS

Current Assets

         

     Cash and Cash Equivalents

$

2,027,972

 

$

1,555,634

     Accounts Receivable, Net

 

2,001,658

   

1,915,215

     Inventories

 

767,297

   

859,359

     Assets from Price Risk Management Activities

 

1,299

   

23,806

     Income Taxes Receivable

 

151,665

   

427,909

     Other

 

323,448

   

275,467

            Total

 

5,273,339

   

5,057,390

           

Property, Plant and Equipment

         

     Oil and Gas Properties (Successful Efforts Method)

 

62,830,415

   

57,330,016

     Other Property, Plant and Equipment

 

4,472,246

   

4,220,665

            Total Property, Plant and Equipment

 

67,302,661

   

61,550,681

     Less:  Accumulated Depreciation, Depletion and Amortization

 

(36,938,066)

   

(33,475,162)

            Total Property, Plant and Equipment, Net

 

30,364,595

   

28,075,519

Deferred Income Taxes

 

2,363

   

777

Other Assets

 

1,484,311

   

800,788

Total Assets

$

37,124,608

 

$

33,934,474

           

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

         

     Accounts Payable

$

2,429,127

 

$

2,239,850

     Accrued Taxes Payable

 

254,850

   

214,726

     Dividends Payable

 

166,273

   

126,971

     Liabilities from Price Risk Management Activities

 

20,194

   

-

     Current Portion of Long-Term Debt

 

1,014,524

   

913,093

     Current Portion of Operating Lease Liabilities

 

369,365

   

-

     Other

 

232,655

   

233,724

            Total

 

4,486,988

   

3,728,364

           
           

Long-Term Debt

 

4,160,919

   

5,170,169

Other Liabilities

 

1,789,884

   

1,258,355

Deferred Income Taxes

 

5,046,101

   

4,413,398

Commitments and Contingencies

         
           

Stockholders' Equity

         

     Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 
        582,213,016 Shares and 580,408,117 Shares Issued
        at December 31, 2019 and 2018, respectively

 

205,822

   

205,804

     Additional Paid in Capital

 

5,817,475

   

5,658,794

     Accumulated Other Comprehensive Loss

 

(4,652)

   

(1,358)

     Retained Earnings

 

15,648,604

   

13,543,130

     Common Stock Held in Treasury, 298,820 Shares and
        385,042 Shares at December 31, 2019 and 2018, respectively

 

(26,533)

   

(42,182)

            Total Stockholders' Equity

 

21,640,716

   

19,364,188

Total Liabilities and Stockholders' Equity

$

37,124,608

 

$

33,934,474

 

 

 

EOG RESOURCES, INC.

Summary Statements of Cash Flows

(Unaudited; in thousands)

                       
 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2019

 

2018

 

2019

 

2018

Cash Flows from Operating Activities

                     

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

                     

     Net Income

$

636,521

 

$

892,768

 

$

2,734,910

 

$

3,419,040

     Items Not Requiring (Providing) Cash

                     

            Depreciation, Depletion and Amortization

 

959,208

   

919,963

   

3,749,704

   

3,435,408

            Impairments 

 

228,135

   

186,087

   

517,896

   

347,021

            Stock-Based Compensation Expenses

 

42,415

   

39,047

   

174,738

   

155,337

            Deferred Income Taxes

 

123,082

   

212,454

   

631,658

   

894,156

            Gains on Asset Dispositions, Net

 

(119,963)

   

(79,904)

   

(123,613)

   

(174,562)

            Other, Net

 

341

   

(8,248)

   

4,496

   

7,066

     Dry Hole Costs

 

-

   

145

   

28,001

   

5,405

     Mark-to-Market Commodity Derivative Contracts

                     

            Total (Gains) Losses

 

62,347

   

(132,095)

   

(180,275)

   

165,640

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

 

91,521

   

(78,678)

   

231,229

   

(258,906)

     Other, Net

 

(253)

   

1,456

   

962

   

3,108

     Changes in Components of Working Capital and Other Assets and Liabilities

                     

            Accounts Receivable

 

(85,937)

   

185,349

   

(91,792)

   

(368,180)

            Inventories

 

34,686

   

(108,591)

   

90,284

   

(395,408)

            Accounts Payable

 

34,286

   

(98,178)

   

168,539

   

439,347

            Accrued Taxes Payable

 

(47,925)

   

(55,570)

   

40,122

   

(92,461)

            Other Assets

 

(36,572)

   

(22,101)

   

358,001

   

(125,435)

            Other Liabilities

 

(38,304)

   

25,725

   

(56,619)

   

10,949

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

 

(76,384)

   

205,599

   

(115,061)

   

301,083

Net Cash Provided by Operating Activities

 

1,807,204

   

2,085,228

   

8,163,180

   

7,768,608

                       

Investing Cash Flows

                     

     Additions to Oil and Gas Properties

 

(1,285,003)

   

(1,267,362)

   

(6,151,885)

   

(5,839,294)

     Additions to Other Property, Plant and Equipment

 

(83,291)

   

(34,797)

   

(270,641)

   

(237,181)

     Proceeds from Sales of Assets

 

104,883

   

215,864

   

140,292

   

227,446

     Other Investing Activities

 

(10,000)

   

-

   

(10,000)

   

(19,993)

     Changes in Components of Working Capital Associated with Investing Activities

 

76,384

   

(205,599)

   

115,061

   

(301,140)

Net Cash Used in Investing Activities

 

(1,197,027)

   

(1,291,894)

   

(6,177,173)

   

(6,170,162)

                       

Financing Cash Flows

                     

     Long-Term Debt Repayments

 

-

   

(350,000)

   

(900,000)

   

(350,000)

     Dividends Paid

 

(167,349)

   

(126,970)

   

(588,200)

   

(438,045)

     Treasury Stock Purchased

 

(2,914)

   

(4,898)

   

(25,152)

   

(63,456)

     Proceeds from Stock Options Exercised and Employee Stock Purchase Plan 

 

8,388

   

8,462

   

17,946

   

20,560

     Debt Issuance Costs

 

-

   

-

   

(5,016)

   

-

     Repayment of Finance Lease Obligation

 

(3,261)

   

(3,167)

   

(12,899)

   

(8,219)

     Changes in Components of Working Capital Associated with Financing Activities

 

-

   

-

   

-

   

57

Net Cash Used in Financing Activities

 

(165,136)

   

(476,573)

   

(1,513,321)

   

(839,103)

                       

Effect of Exchange Rate Changes on Cash

 

(174)

   

(35,259)

   

(348)

   

(37,937)

                       

Increase in Cash and Cash Equivalents

 

444,867

   

281,502

   

472,338

   

721,406

Cash and Cash Equivalents at Beginning of Period

 

1,583,105

   

1,274,132

   

1,555,634

   

834,228

Cash and Cash Equivalents at End of Period

$

2,027,972

 

$

1,555,634

 

$

2,027,972

 

$

1,555,634

 

 

 

EOG RESOURCES, INC.

Fourth 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

 

23

 

20

 

9,400

 

2,500

 

750

 

3.7

 

3,850

Bone Spring

 

17

 

15

 

8,000

 

1,850

 

450

 

2.3

 

2,700

Leonard

 

11

 

11

 

8,000

 

2,350

 

900

 

4.6

 

4,000

                             

South Texas Eagle Ford

 

67

 

64

 

7,400

 

1,100

 

150

 

0.6

 

1,350

                             

South Texas Austin Chalk

 

9

 

9

 

6,100

 

1,650

 

300

 

1.4

 

2,200

                             

Powder River Basin

                           

Turner / Parkman

 

7

 

6

 

8,900

 

900

 

150

 

3.5

 

1,650

Niobrara

 

1

 

1

 

8,800

 

950

 

50

 

0.7

 

1,100

                             

DJ Basin Codell / Niobrara

 

12

 

11

 

11,400

 

850

 

50

 

0.4

 

950

                             

Williston Basin Bakken/Three Forks

 

6

 

5

 

10,100

 

2,250

 

250

 

1.9

 

2,800

                             
                             

(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 twelve-month periods ended December 31, 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 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 

 

December 31, 2019

 

December 31, 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)

$   831,208

 

$(194,687)

 

$   636,521

 

$      1.10

 

$1,088,340

 

$(195,572)

 

$   892,768

 

$      1.54

Adjustments:

                             

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

62,347

 

(13,684)

 

48,663

 

0.08

 

(132,095)

 

29,096

 

(102,999)

 

(0.18)

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

91,521

 

(20,087)

 

71,434

 

0.12

 

(78,678)

 

17,330

 

(61,348)

 

(0.11)

Less:  Gains on Asset Dispositions, Net

(119,963)

 

26,342

 

(93,621)

 

(0.16)

 

(79,904)

 

13,625

 

(66,279)

 

(0.11)

Add:  Impairments

158,725

 

(34,837)

 

123,888

 

0.21

 

131,795

 

(29,031)

 

102,764

 

0.18

Less:  Tax Reform Impact

-

 

-

 

-

 

-

 

-

 

(46,684)

 

(46,684)

 

(0.08)

Adjustments to Net Income 

192,630

 

(42,266)

 

150,364

 

0.25

 

(158,882)

 

(15,664)

 

(174,546)

 

(0.30)

                               

Adjusted Net Income (Non-GAAP)

$1,023,838

 

$(236,953)

 

$   786,885

 

$      1.35

 

$   929,458

 

$(211,236)

 

$   718,222

 

$      1.24

                               

Average Number of Common Shares (GAAP)

                             

       Basic

           

578,219

             

577,035

       Diluted

           

580,849

             

580,288

                               
                               
 

Twelve Months Ended 

 

Twelve Months Ended 

 

December 31, 2019

 

December 31, 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)

$3,545,267

 

$(810,357)

 

$2,734,910

 

$      4.71

 

$4,240,998

 

$(821,958)

 

$3,419,040

 

$      5.89

Adjustments:

                             

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

(180,275)

 

39,567

 

(140,708)

 

(0.24)

 

165,640

 

(36,486)

 

129,154

 

0.22

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

231,229

 

(50,750)

 

180,479

 

0.31

 

(258,906)

 

57,029

 

(201,877)

 

(0.35)

Less:  Gains on Asset Dispositions, Net

(123,613)

 

27,252

 

(96,361)

 

(0.17)

 

(174,562)

 

37,860

 

(136,702)

 

(0.24)

Add:  Impairments

274,974

 

(60,351)

 

214,623

 

0.37

 

152,671

 

(33,629)

 

119,042

 

0.21

Less:  Tax Reform Impact

-

 

-

 

-

 

-

 

-

 

(110,335)

 

(110,335)

 

(0.19)

Adjustments to Net Income

202,315

 

(44,282)

 

158,033

 

0.27

 

(115,157)

 

(85,561)

 

(200,718)

 

(0.35)

                               

Adjusted Net Income (Non-GAAP)

$3,747,582

 

$(854,639)

 

$2,892,943

 

$      4.98

 

$4,125,841

 

$(907,519)

 

$3,218,322

 

$      5.54

                               

Average Number of Common Shares (GAAP)

                             

       Basic

           

577,670

             

576,578

       Diluted

           

580,777

             

580,441

 

 

EOG RESOURCES, INC.

Reconciliation of Discretionary Cash Flow 

(Unaudited; in thousands)

                             

Calculation of Free Cash Flow 

(Unaudited; in thousands)

                   

The following chart reconciles the three-month periods ended December 31, 2019 and 2018 and twelve-month periods ended December 31, 2019, 2018 and 2017 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), Other Non-Current Income Taxes - Net (Payable) Receivable, 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 defines Free Cash Flow (Non-GAAP) for a given period as Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures (before acquisitions) incurred (Non-GAAP) during such period, as is illustrated below for the three months ended December 31, 2019 and 2018 and twelve months ended December 31, 2019, 2018 and 2017.  EOG management uses this information for comparative purposes within the industry.

                             
 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2019

 

2018

 

2019

 

2018

 

2017

                             

Net Cash Provided by Operating Activities (GAAP)

$

1,807,204

 

$

2,085,228

 

$

8,163,180

 

$

7,768,608

 

$

4,265,336

                             

Adjustments:

                           

Exploration Costs (excluding Stock-Based Compensation Expenses) 

 

28,483

   

27,270

   

113,733

   

123,986

   

122,688

Other Non-Current Income Taxes - Net (Payable) Receivable

 

59,174

   

86,572

   

238,711

   

148,993

   

(513,404)

Changes in Components of Working Capital and Other Assets

                           

and Liabilities

                           

Accounts Receivable

 

85,937

   

(185,349)

   

91,792

   

368,180

   

392,131

Inventories

 

(34,686)

   

108,591

   

(90,284)

   

395,408

   

174,548

Accounts Payable

 

(34,286)

   

98,178

   

(168,539)

   

(439,347)

   

(324,192)

Accrued Taxes Payable

 

47,925

   

55,570

   

(40,122)

   

92,461

   

63,937

Other Assets

 

36,572

   

22,101

   

(358,001)

   

125,435

   

658,609

Other Liabilities

 

38,304

   

(25,725)

   

56,619

   

(10,949)

   

89,871

Changes in Components of Working Capital Associated with 

                           

Investing and Financing Activities

 

76,384

   

(205,599)

   

115,061

   

(301,083)

   

(89,992)

                             

Discretionary Cash Flow (Non-GAAP)

$

2,111,011

 

$

2,066,837

 

$

8,122,150

 

$

8,271,692

 

$

4,839,532

                             

Discretionary Cash Flow (Non-GAAP) - Percentage Increase/Decrease 

 

2%

         

-2%

   

71%

     
                             
                             

Discretionary Cash Flow (Non-GAAP)

$

2,111,011

 

$

2,066,837

 

$

8,122,150

 

$

8,271,692

   

4,839,532

Less:  

                           

Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)(a)

 

(1,388,233)

   

(1,302,999)

   

(6,234,454)

   

(6,172,950)

   

(4,228,859)

Free Cash Flow (Non-GAAP)(b)

$

722,778

 

$

763,838

 

$

1,887,696

 

$

2,098,742

 

$

610,673

                             
                             

(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the three-month periods ended December 31, 2019 and 2018 and twelve-month periods ended December 31, 2019, 2018 and 2017:

                             

Total Expenditures (GAAP)

$

1,506,061

 

$

1,504,438

 

$

6,900,450

 

$

6,706,359

 

$

4,612,746

Less:  

                           

          Asset Retirement Costs

 

(34,537)

   

(27,910)

   

(186,088)

   

(69,699)

   

(55,592)

          Non-Cash Expenditures of Other Property, Plant and Equipment

 

(1,680)

   

(547)

   

(2,266)

   

(49,484)

   

-

          Non-Cash Acquisition Costs of Unproved Properties

 

(33,317)

   

(128,719)

   

(97,704)

   

(290,542)

   

(255,711)

          Acquisition Costs of Proved Properties

 

(48,294)

   

(44,263)

   

(379,938)

   

(123,684)

   

(72,584)

Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) 

$

1,388,233

 

$

1,302,999

 

$

6,234,454

 

$

6,172,950

   

4,228,859

                             

(b) To better align the presentation of free cash flow for comparative purposes within the industry, free cash flow has been updated to exclude dividends paid (GAAP) as a reconciling item for the three-month and twelve-month periods ending December 31, 2019. The comparative prior periods have been revised for this change in presentation.

                             
                             

Maintenance Capital Expenditures

                             

The capital expenditures required to fund drilling as well as infrastructure requirements to keep oil production flat relative to 2019 across all premium oil plays.

 

 

EOG RESOURCES, INC.

Reconciliation of Discretionary Cash Flow 

(Unaudited; in thousands)

                 

Calculation of Free Cash Flow 

(Unaudited; in thousands)

                 

The following chart reconciles the twelve-month periods ended December 31, 2014, 2013 and 2012 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 defines Free Cash Flow (Non-GAAP) for a given period as Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures (before acquisitions) incurred (Non-GAAP) during such period, as is illustrated below for the twelve months ended December 31, 2014, 2013 and 2012.  EOG management uses this information for comparative purposes within the industry.

                 
 

Twelve Months Ended

 

December 31,

 

2014

 

2013

 

2012

                 

Net Cash Provided by Operating Activities (GAAP)

$

8,649,155

 

$

7,329,414

 

$

5,236,777

                 

Adjustments:

               

Exploration Costs (excluding Stock-Based Compensation Expenses) 

 

157,453

   

134,531

   

159,182

Excess Tax Benefits from Stock-Based Compensation

 

99,459

   

55,831

   

67,035

Changes in Components of Working Capital and Other Assets

               

and Liabilities

               

Accounts Receivable

 

(84,982)

   

23,613

   

178,683

Inventories

 

161,958

   

(53,402)

   

156,762

Accounts Payable

 

(543,630)

   

(178,701)

   

17,150

Accrued Taxes Payable

 

(16,486)

   

(75,142)

   

(78,094)

Other Assets

 

14,448

   

109,567

   

118,520

Other Liabilities

 

(75,420)

   

20,382

   

(36,114)

Changes in Components of Working Capital Associated with 

               

Investing and Financing Activities

 

103,414

   

51,361

   

(74,158)

                 

Discretionary Cash Flow (Non-GAAP)

$

8,465,369

 

$

7,417,454

 

$

5,745,743

                 

Discretionary Cash Flow (Non-GAAP) - Percentage Increase

 

14%

   

29%

     
                 
                 

Discretionary Cash Flow (Non-GAAP)

$

8,465,369

 

$

7,417,454

   

5,745,743

Less:  

               

Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)(a)

 

(8,292,090)

   

(7,101,791)

   

(7,539,994)

Free Cash Flow (Non-GAAP)(b)

$

173,279

 

$

315,663

 

$

(1,794,251)

                 
                 

(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the twelve-month periods ended December 31, 2014, 2013 and 2012:

                 

Total Expenditures (GAAP)

$

8,631,906

 

$

7,361,457

 

$

7,753,828

Less:  

               

          Asset Retirement Costs

 

(195,630)

   

(134,445)

   

(126,987)

          Non-Cash Expenditures of Other Property, Plant and Equipment

 

-

   

-

   

(65,791)

          Non-Cash Acquisition Costs of Unproved Properties

 

(5,085)

   

(5,007)

   

(20,317)

          Acquisition Costs of Proved Properties

 

(139,101)

   

(120,214)

   

(739)

Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) 

$

8,292,090

 

$

7,101,791

 

$

7,539,994

                 

(b) To better align the presentation of free cash flow for comparative purposes within the industry, free cash flow has been updated to exclude dividends paid (GAAP) as a reconciling item. The comparative prior periods presented herein have been revised for this change in presentation.

                 
                 

Maintenance Capital Expenditures

                 

The capital expenditures required to fund drilling as well as infrastructure requirements to keep oil production flat relative to 2019 across all premium oil plays.

 

 

EOG RESOURCES, INC.

Total Expenditures

(Unaudited; in millions)

                     
                     
   

Three Months Ended

 

Twelve Months Ended

   

December 31,

 

December 31,

   

2019

 

2018

 

2019

 

2018

 

2017

                     

Exploration and Development Drilling

 

$1,086

 

$1,092

 

$4,951

 

$4,935

 

$3,132

Facilities

 

130

 

107

 

629

 

625

 

575

Leasehold Acquisitions

 

75

 

157

 

276

 

488

 

427

Property Acquisitions

 

48

 

45

 

380

 

124

 

73

Capitalized Interest

 

10

 

6

 

38

 

24

 

27

       Subtotal

 

1,349

 

1,407

 

6,274

 

6,196

 

4,234

Exploration Costs

 

37

 

34

 

140

 

149

 

145

Dry Hole Costs

 

-

 

-

 

28

 

5

 

5

     Exploration and Development Expenditures

 

1,386

 

1,441

 

6,442

 

6,350

 

4,384

Asset Retirement Costs

 

35

 

28

 

186

 

70

 

56

     Total Exploration and Development Expenditures

 

1,421

 

1,469

 

6,628

 

6,420

 

4,440

Other Property, Plant and Equipment

 

85

 

35

 

272

 

286

 

173

     Total Expenditures

 

$1,506

 

$1,504

 

$6,900

 

$6,706

 

$4,613

 

 

EOG RESOURCES, INC.

Reconciliation of Adjusted EBITDAX

(Unaudited; in thousands)

                       

The following chart adjusts the three-month and twelve-month periods ended December 31, 2019 and 2018 reported Net Income (GAAP) to Earnings Before Interest Expense (Net), Income Taxes (Income Tax Provision), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments (EBITDAX) (Non-GAAP) and further adjusts such amount to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (MTM) (gains) losses from these transactions and to eliminate the gains on asset dispositions (Net).  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Net Income (GAAP) to add back Interest Expense (Net), Income Taxes (Income Tax Provision), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments and further adjust such amount to match 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

 

Twelve Months Ended

 

December 31,

 

December 31,

 

2019

 

2018

 

2019

 

2018

                       

Net Income (GAAP)

$

636,521

 

$

892,768

 

$

2,734,910

 

$

3,419,040

                       

Adjustments:

                     

     Interest Expense, Net

 

40,695

   

56,020

   

185,129

   

245,052

     Income Tax Provision

 

194,687

   

195,572

   

810,357

   

821,958

     Depreciation, Depletion and Amortization

 

959,208

   

919,963

   

3,749,704

   

3,435,408

     Exploration Costs

 

36,495

   

33,862

   

139,881

   

148,999

     Dry Hole Costs

 

-

   

145

   

28,001

   

5,405

     Impairments 

 

228,135

   

186,087

   

517,896

   

347,021

             EBITDAX (Non-GAAP)

 

2,095,741

   

2,284,417

   

8,165,878

   

8,422,883

     Total (Gains) Losses on MTM Commodity Derivative Contracts  

 

62,347

   

(132,095)

   

(180,275)

   

165,640

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

 

91,521

   

(78,678)

   

231,229

   

(258,906)

     Gains on Asset Dispositions, Net

 

(119,963)

   

(79,904)

   

(123,613)

   

(174,562)

                       

Adjusted EBITDAX (Non-GAAP)

$

2,129,646

 

$

1,993,740

 

$

8,093,219

 

$

8,155,055

                       

Adjusted EBITDAX (Non-GAAP) - Percentage Increase/Decrease

 

7%

         

-1%

     

 

 

EOG RESOURCES, INC.

Reconciliation of Net Debt and Total Capitalization

Calculation of Net Debt-to-Total Capitalization Ratio 

(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.

                 
   

At

   

December 31,

   

2019

 

2018

 

2017

 

2016

                 

Total Stockholders' Equity - (a)

 

$21,641

 

$19,364

 

$16,283

 

$13,982

                 

Current and Long-Term Debt (GAAP) - (b)

 

5,175

 

6,083

 

6,387

 

6,986

Less: Cash 

 

(2,028)

 

(1,556)

 

(834)

 

(1,600)

Net Debt (Non-GAAP) - (c)

 

3,147

 

4,527

 

5,553

 

5,386

                 

Total Capitalization (GAAP) - (a) + (b)

 

$26,816

 

$25,447

 

$22,670

 

$20,968

                 

Total Capitalization (Non-GAAP) - (a) + (c)

 

$24,788

 

$23,891

 

$21,836

 

$19,368

                 

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

 

19%

 

24%

 

28%

 

33%

                 

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

 

13%

 

19%

 

25%

 

28%

 

EOG RESOURCES, INC.

Reserves Supplemental Data

(Unaudited)

                 

2019 NET PROVED RESERVES RECONCILIATION SUMMARY  

           
 

 United 

     

 Other 

     
 

 States 

 

Trinidad

 

 International 

 

 Total 

 

CRUDE OIL AND CONDENSATE (MMBbl)

               

Beginning Reserves

1,531.7

 

0.4

 

0.2

 

1,532.3

 

Revisions 

(43.0)

 

0.1

 

-

 

(42.9)

 

Purchases in Place

2.9

 

-

 

-

 

2.9

 

Extensions, Discoveries and Other Additions

370.0

 

-

 

-

 

370.0

 

Sales in Place

(1.3)

 

-

 

-

 

(1.3)

 

Production 

(166.3)

 

(0.2)

 

(0.1)

 

(166.6)

 

Ending Reserves

1,694.0

 

0.3

 

0.1

 

1,694.4

 
 

NATURAL GAS LIQUIDS (MMBbl)

               

Beginning Reserves

614.3

 

-

 

-

 

614.3

 

Revisions 

5.4

 

-

 

-

 

5.4

 

Purchases in Place

2.0

 

-

 

-

 

2.0

 

Extensions, Discoveries and Other Additions

167.8

 

-

 

-

 

167.8

 

Sales in Place

(0.9)

 

-

 

-

 

(0.9)

 

Production 

(48.9)

 

-

 

-

 

(48.9)

 

Ending Reserves

739.7

 

-

 

-

 

739.7

 
 

NATURAL GAS (Bcf) 

               

Beginning Reserves 

4,390.6

 

237.0

 

59.6

 

4,687.2

 

Revisions 

(184.4)

 

47.0

 

2.6

 

(134.8)

 

Purchases in Place

71.7

 

-

 

-

 

71.7

 

Extensions, Discoveries and Other Additions

1,175.9

 

87.5

 

9.7

 

1,273.1

 

Sales in Place

(14.5)

 

-

 

-

 

(14.5)

 

Production 

(404.5)

 

(95.4)

 

(13.1)

 

(513.0)

 

Ending Reserves

5,034.8

 

276.1

 

58.8

 

5,369.7

 
 

OIL EQUIVALENTS (MMBoe) 

               

Beginning Reserves 

2,877.8

 

39.9

 

10.1

 

2,927.8

 

Revisions 

(68.3)

 

7.9

 

0.4

 

(60.0)

 

Purchases in Place

16.8

 

-

 

-

 

16.8

 

Extensions, Discoveries and Other Additions

733.7

 

14.6

 

1.7

 

750.0

 

Sales in Place

(4.6)

 

-

 

-

 

(4.6)

 

Production 

(282.6)

 

(16.1)

 

(2.2)

 

(300.9)

 

Ending Reserves

3,272.8

 

46.3

 

10.0

 

3,329.1

 
 

 Net Proved Developed Reserves (MMBoe)  

               

      At December 31, 2018 

1,503.4

 

37.7

 

7.0

 

1,548.1

 

      At December 31, 2019 

1,684.2

 

29.9

 

7.1

 

1,721.2

 
 

2019 EXPLORATION AND DEVELOPMENT EXPENDITURES ($ Millions) 

         
 

 United 

     

 Other 

     
 

 States 

 

Trinidad

 

 International 

 

 Total 

 
 

Acquisition Cost of Unproved Properties

$   276.1

 

$       -

 

$                -

 

$   276.1

 

Exploration Costs

213.5

 

46.6

 

13.2

 

273.3

 

Development Costs

5,480.7

 

24.0

 

8.1

 

5,512.8

 

Total Drilling

5,970.3

 

70.6

 

21.3

 

6,062.2

 

Acquisition Cost of Proved Properties

379.9

 

-

 

-

 

379.9

 

Asset Retirement Costs 

181.1

 

1.0

 

4.0

 

186.1

 

Total Exploration and Development Expenditures 

6,531.3

 

71.6

 

25.3

 

6,628.2

 

Gathering, Processing and Other

269.7

 

2.4

 

0.1

 

272.2

 

Total Expenditures

6,801.0

 

74.0

 

25.4

 

6,900.4

 

Proceeds from Sales in Place

(140.3)

 

-

 

-

 

(140.3)

 

Net Expenditures

$6,660.7

 

$   74.0

 

$             25.4

 

$6,760.1

 
 

RESERVE REPLACEMENT COSTS ($ / Boe ) * 

               

All-in Total, Net of Revisions 

$     9.09

 

$   3.14

 

$           10.14

 

$     8.90

 

All-in Total, Excluding Revisions Due to Price

$     8.36

 

$   3.14

 

$           10.14

 

$     8.21

 
 

RESERVE REPLACEMENT *

               

Drilling Only

260%

 

91%

 

77%

 

249%

 

All-in Total, Net of Revisions and Dispositions  

240%

 

140%

 

95%

 

233%

 

All-in Total, Excluding Revisions Due to Price

261%

 

140%

 

95%

 

253%

 

All-in Total, Liquids

234%

 

50%

 

0%

 

233%

 
 

*   See attached reconciliation schedule for calculation methodology

 

 

EOG RESOURCES, INC.

Reconciliation of Total Exploration and Development Expenditures 

Calculation of Reserve Replacement Costs ($ / BOE)

(Unaudited; in millions, except ratio data)

                 

The following chart reconciles Total Costs Incurred in Exploration and Development Activities (GAAP) to Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) and Total Exploration and Development Expenditures (Non-GAAP), as used in the calculation of Reserve Replacement Costs per Boe.  There are numerous ways that industry participants present Reserve Replacement Costs, including "Drilling Only" and "All-In", which reflects total exploration and development expenditures divided by total net proved reserve additions from extensions and discoveries only, or from all sources.  Combined with Reserve Replacement, these statistics provide management and investors with an indication of the results of the current year capital investment program.  Reserve Replacement Cost statistics are widely recognized and reported by industry participants and are used by EOG management and other third parties for comparative purposes within the industry.  Please note that the actual cost of adding reserves will vary from the reported statistics due to timing differences in reserve bookings and capital expenditures.  Accordingly, some analysts use three or five year averages of reported statistics, while others prefer to estimate future costs.  EOG has not included future capital costs to develop proved undeveloped reserves in exploration and development expenditures.

                 

For the Twelve Months Ended December 31, 2019

               
 

 United 

     

 Other 

     
 

 States 

 

 Trinidad 

 

 International 

 

 Total 

 
                 

Total Costs Incurred in Exploration and Development Activities (GAAP)

$6,531.3

 

$     71.6

 

$             25.3

 

$6,628.2

 

Less:  Asset Retirement Costs

(181.1)

 

(1.0)

 

(4.0)

 

(186.1)

 

          Non-Cash Acquisition Costs of Unproved Properties

(97.7)

 

-

 

-

 

(97.7)

 

           Total Acquisition Cost of Proved Properties

(379.9)

 

-

 

-

 

(379.9)

 

Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) - (a) 

$5,872.6

 

$     70.6

 

$             21.3

 

$5,964.5

 
 

Total Costs Incurred in Exploration and Development Activities (GAAP)

$6,531.3

 

$     71.6

 

$             25.3

 

$6,628.2

 

Less:  Asset Retirement Costs

(181.1)

 

(1.0)

 

(4.0)

 

(186.1)

 

          Non-Cash Acquisition Costs of Unproved Properties

(97.7)

 

-

 

-

 

(97.7)

 

          Non-Cash Acquisition Costs of Proved Properties

(52.3)

 

-

 

-

 

(52.3)

 

Total Exploration and Development Expenditures (Non-GAAP) - (b) 

$6,200.2

 

$     70.6

 

$             21.3

 

$6,292.1

 
 

Total Expenditures (GAAP)

$6,801.0

 

$     74.0

 

$             25.4

 

$6,900.4

 

Less:  Asset Retirement Costs

(181.1)

 

(1.0)

 

(4.0)

 

(186.1)

 

          Non-Cash Acquisition Costs of Unproved Properties

(97.7)

 

-

 

-

 

(97.7)

 

          Non-Cash Acquisition Costs of Proved Properties

(52.3)

 

-

 

-

 

(52.3)

 

          Non-Cash Capital - Other Miscellaneous

(1.6)

 

-

 

-

 

(1.6)

 

Total Cash Expenditures (Non-GAAP) 

$6,468.3

 

$     73.0

 

$             21.4

 

$6,562.7

 
 

Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe) 

               

Revisions Due to Price - (c)

(59.7)

 

-

 

-

 

(59.7)

 

Revisions Other Than Price

(8.6)

 

7.9

 

0.4

 

(0.3)

 

Purchases in Place

16.8

 

-

 

-

 

16.8

 

Extensions, Discoveries and Other Additions - (d)

733.7

 

14.6

 

1.7

 

750.0

 

Total Proved Reserve Additions - (e) 

682.2

 

22.5

 

2.1

 

706.8

 

Sales in Place

(4.6)

 

-

 

-

 

(4.6)

 

Net Proved Reserve Additions From All Sources - (f) 

677.6

 

22.5

 

2.1

 

702.2

 
 

Production - (g) 

282.6

 

16.1

 

2.2

 

300.9

 
 

RESERVE REPLACEMENT COSTS ($ / Boe)

               

Total Drilling, Before Revisions - (a / d) 

$     8.00

 

$     4.84

 

$           12.53

 

$     7.95

 

All-in Total, Net of Revisions - (b / e)  

$     9.09

 

$     3.14

 

$           10.14

 

$     8.90

 

All-in Total, Excluding Revisions Due to Price - (b / (e - c)) 

$     8.36

 

$     3.14

 

$           10.14

 

$     8.21

 
 

RESERVE REPLACEMENT

               

Drilling Only - (d / g) 

260%

 

91%

 

77%

 

249%

 

All-in Total, Net of Revisions and Dispositions - (f / g) 

240%

 

140%

 

95%

 

233%

 

All-in Total, Excluding Revisions Due to Price - ((f - c ) / g) 

261%

 

140%

 

95%

 

253%

 
 

Net Proved Reserve Additions From All Sources - Liquids (MMBbl) 

               

Revisions

(37.6)

 

0.1

 

-

 

(37.5)

 

Purchases in Place

4.9

 

-

 

-

 

4.9

 

Extensions, Discoveries and Other Additions - (h)

537.8

 

-

 

-

 

537.8

 

Total Proved Reserve Additions 

505.1

 

0.1

 

-

 

505.2

 

Sales in Place

(2.2)

 

-

 

-

 

(2.2)

 

Net Proved Reserve Additions From All Sources - (i) 

502.9

 

0.1

 

-

 

503.0

 
 

Production - (j)   

215.2

 

0.2

 

0.1

 

215.5

 
 

RESERVE REPLACEMENT - LIQUIDS

               

Drilling Only - (h / j) 

250%

 

0%

 

0%

 

250%

 

All-in Total, Net of Revisions & Dispositions - (i / j) 

234%

 

50%

 

0%

 

233%

 
 
 
 

EOG RESOURCES, INC.

Reconciliation of Drillbit Exploration and Development Expenditures 

Calculation of Proved Developed Reserve Replacement Costs ($ / BOE)

(Unaudited; in millions, except ratio data)

                 

The following chart reconciles Total Costs Incurred in Exploration and Development Activities (GAAP) to Drillbit Exploration and Development Expenditures  (Non-GAAP), as used in the calculation of Proved Developed Reserve Replacement Costs per Boe.  These statistics provide management and investors with an indication of the results of the current year capital investment program.  Reserve Replacement Cost statistics are widely recognized and reported by industry participants and are used by EOG management and other third parties for comparative purposes within the industry.  

                 

For the Twelve Months Ended December 31, 2019

               
             

 Total 

 

PROVED DEVELOPED RESERVE REPLACEMENT COSTS ($ / Boe)

               

Total Costs Incurred in Exploration and Development Activities (GAAP)

           

$6,628.2

 

Less:  Asset Retirement Costs

           

(186.1)

 

           Acquisition Costs of Unproved Properties

           

(276.1)

 

           Acquisition Cost of Proved Properties

           

(379.9)

 

Drillbit Exploration and Development Expenditures (Non-GAAP) - (k)

           

$5,786.1

 
 

Total Proved Reserves - Extensions, Discoveries and Other Additions (MMBoe)

           

750.0

 

Add:   Conversion of Proved Undeveloped Reserves to Proved Developed

           

302.0

 

Less:  Proved Undeveloped Extensions and Discoveries

           

(578.3)

 

Proved Developed Reserves - Extensions and Discoveries (MMBoe)

           

473.7

 
 

Total Proved Reserves - Revisions (MMBoe)

           

(60.0)

 

Less:  Proved Undeveloped Reserves - Revisions

           

49.8

 

          Proved Developed - Revisions Due to Price

           

59.7

 

Proved Developed Reserves - Revisions Other Than Price (MMBoe)

           

49.5

 
 

Proved Developed Reserves - Extensions and discoveries plus Revisions

             

   Other than Price (MMBoe) - (l)

           

523.2

 
                 

Proved Developed Reserve Replacement Costs Excluding Revisions Due to Price ($ / Boe) - (k / l)

 

$   11.06

 

 

 

EOG RESOURCES, INC.

Reconciliation of Total Exploration and Development Expenditures

For Drilling Only and Total Exploration and Development Expenditures 

Calculation of Reserve Replacement Costs ($ / BOE)

(Unaudited; in millions, except ratio data)

                         

The following chart reconciles Total Costs Incurred in Exploration and Development Activities (GAAP) to Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) and Total Exploration and Development Expenditures (Non-GAAP), as used in the calculation of Reserve Replacement Costs per Boe.  There are numerous ways that industry participants present Reserve Replacement Costs, including "Drilling Only" and "All-In", which reflect total exploration and development expenditures divided by total net proved reserve additions from extensions and discoveries only, or from all sources.  Combined with Reserve Replacement, these statistics provide management and investors with an indication of the results of the current year capital investment program.  Reserve Replacement Cost statistics are widely recognized and reported by industry participants and are used by EOG management and other third parties for comparative purposes within the industry.  Please note that the actual cost of adding reserves will vary from the reported statistics due to timing differences in reserve bookings and capital expenditures.  Accordingly, some analysts use three or five year averages of reported statistics, while others prefer to estimate future costs.  EOG has not included future capital costs to develop proved undeveloped reserves in exploration and development expenditures.

                         
   

2019

 

2018

 

2017

 

2016

 

2015

 

2014

         

Total Costs Incurred in Exploration and Development Activities (GAAP)

 

$ 6,628.2

 

$6,419.7

 

$4,439.4

 

$6,445.2

 

$4,928.3

 

$7,904.8

Less:  Asset Retirement Costs

 

(186.1)

 

(69.7)

 

(55.6)

 

19.9

 

(53.5)

 

(195.6)

          Non-Cash Acquisition Costs of Unproved Properties

 

(97.7)

 

(290.5)

 

(255.7)

 

(3,101.8)

 

-

 

-

          Acquisition Costs of Proved Properties

 

(379.9)

 

(123.7)

 

(72.6)

 

(749.0)

 

(480.6)

 

(139.1)

Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) - (a) 

 

$ 5,964.5

 

$5,935.8

 

$4,055.5

 

$2,614.3

 

$4,394.2

 

$7,570.1

                         

Total Costs Incurred in Exploration and Development Activities (GAAP)

 

$ 6,628.2

 

$6,419.7

 

$4,439.4

 

$6,445.2

 

$4,928.3

 

$7,904.8

Less:  Asset Retirement Costs

 

(186.1)

 

(69.7)

 

(55.6)

 

19.9

 

(53.5)

 

(195.6)

          Non-Cash Acquisition Costs of Unproved Properties

 

(97.7)

 

(290.5)

 

(255.7)

 

(3,101.8)

 

-

 

-

          Non-Cash Acquisition Costs of Proved Properties

 

(52.3)

 

(70.9)

 

(26.2)

 

(732.3)

 

-

 

-

Total Exploration and Development Expenditures (Non-GAAP) - (b) 

 

$ 6,292.1

 

$5,988.6

 

$4,101.9

 

$2,631.0

 

$4,874.8

 

$7,709.2

                         

Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe) 

                       

Revisions Due to Price - (c)

 

(59.7)

 

34.8

 

154.0

 

(100.7)

 

(573.8)

 

52.2

Revisions Other Than Price

 

(0.3)

 

(39.5)

 

48.0

 

252.9

 

107.2

 

48.4

Purchases in Place

 

16.8

 

11.6

 

2.3

 

42.3

 

56.2

 

14.4

Extensions, Discoveries and Other Additions - (d)

 

750.0

 

669.7

 

420.8

 

209.0

 

245.9

 

519.2

Total Proved Reserve Additions - (e) 

 

706.8

 

676.6

 

625.1

 

403.5

 

(164.5)

 

634.2

Sales in Place

 

(4.6)

 

(10.8)

 

(20.7)

 

(167.6)

 

(3.5)

 

(36.3)

Net Proved Reserve Additions From All Sources - (f) 

 

702.2

 

665.8

 

604.4

 

235.9

 

(168.0)

 

597.9

                         

Production - (g) 

 

300.9

 

265.0

 

224.4

 

207.1

 

211.2

 

219.1

                         

RESERVE REPLACEMENT COSTS ($ / Boe)

                       

Total Drilling, Before Revisions - (a / d) 

 

$    7.95

 

$    8.86

 

$    9.64

 

$  12.51

 

$  17.87

 

$  14.58

All-in Total, Net of Revisions - (b / e)  

 

$    8.90

 

$    8.85

 

$    6.56

 

$    6.52

 

$ (29.63)

 

$  12.16

All-in Total, Excluding Revisions Due to Price - (b / (e - c)) 

 

$    8.21

 

$    9.33

 

$    8.71

 

$    5.22

 

$  11.91

 

$  13.25

 

 

EOG RESOURCES, INC.

Crude Oil, NGLs and Natural Gas Financial Commodity

Derivative Contracts

                       

EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method. 

                       

Prices received by EOG for its crude oil production generally vary from NYMEX West Texas Intermediate prices due to adjustments for delivery location (basis) and other factors. EOG has entered into crude oil basis swap contracts in order to fix the differential between pricing in Midland, Texas, and Cushing, Oklahoma (Midland Differential).  Presented below is a comprehensive summary of EOG's Midland Differential basis swap contracts through February 19, 2020.  The weighted average price differential expressed in $/Bbl represents the amount of reduction to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.

                       

Midland Differential Basis Swap Contracts

                 

Weighted

                     

Average Price

                 

Volume

 

Differential

                 

(Bbld) 

 

($/Bbl) 

2019

                   

January 1, 2019 through December 31, 2019 (closed)

           

20,000

 

$           1.075

                       
                       

EOG has also entered into crude oil basis swap contracts in order to fix the differential between pricing in the U.S. Gulf Coast and Cushing, Oklahoma (Gulf Coast Differential).  Presented below is a comprehensive summary of EOG's Gulf Coast Differential basis swap contracts through February 19, 2020.  The weighted average price differential expressed in $/Bbl represents the amount of addition to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.

                       
                       

Gulf Coast Differential Basis Swap Contracts

                 

Weighted

                     

Average Price

                 

Volume

 

Differential

                 

(Bbld) 

 

($/Bbl) 

2019

                   

January 1, 2019 through December 31, 2019 (closed)

           

13,000

 

$           5.572

                       
                       

EOG has also entered into crude oil swaps to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month (Roll Differential). Presented below is a comprehensive summary of EOG's Roll Differential swap contracts through February 19, 2020. The weighted average price differential expressed in $/Bbl represents the amount of addition to delivery month prices for the notional volumes expressed in Bbld covered by the swap contracts.

                       
                       

Roll Differential Swap Contracts

                 

Weighted

                     

Average Price

                 

Volume

 

Differential

                 

(Bbld) 

 

($/Bbl) 

2020

                   

February 2020 (closed)

           

10,000

 

$             0.70

March 1, 2020 through December 31, 2020

           

10,000

 

0.70

                       
                       

Presented below is a comprehensive summary of EOG's crude oil price swap contracts through February 19, 2020, with notional volumes expressed in Bbld and prices expressed in $/Bbl.  

                       
                       

Crude Oil Price Swap Contracts

                 

Weighted

                 

Volume

 

Average Price

                 

(Bbld) 

 

($/Bbl) 

2019

                   

April 2019 (closed)

           

25,000

 

$           60.00

May 1, 2019 through December 31, 2019 (closed)

           

150,000

 

62.50

                       

2020

                   

January 2020 (closed)

           

200,000

 

$           59.33

February 1, 2020 through March 31, 2020

           

200,000

 

59.33

April 1, 2020 through June 30, 2020

           

200,000

 

59.59

July 1, 2020 through September 30, 2020

           

107,000

 

58.94

                       
                       

Presented below is a comprehensive summary of EOG's Mont Belvieu propane (non-TET) price swap contracts through February 19, 2020, with notional volumes expressed in Bbld and prices expressed in $/Bbl.

                       
                       

Mont Belvieu Propane Price Swap Contracts

                 

Weighted

                 

Volume

 

Average Price

                 

(Bbld) 

 

($/Bbl) 

2020

                   

January 2020 (closed)

           

4,000

 

$           21.34

February 2020

           

4,000

 

21.34

March 1, 2020 through December 31, 2020

           

25,000

 

17.92

                       
                       

Presented below is a comprehensive summary of EOG's natural gas price swap contracts through February 19, 2020, with notional volumes expressed in MMBtud and prices expressed in $/MMBtu.

                       
                       

Natural Gas Price Swap Contracts

                     

Weighted

                 

Volume

 

Average Price

                 

(MMBtud)

 

($/MMBtu)

2019

                   

April 1, 2019 through October 31, 2019 (closed)

           

250,000

 

$             2.90

                       
                       

EOG has also entered into natural gas collar contracts, which establish ceiling and floor prices for the sale of notional volumes of natural gas as specified in the collar contracts. The collars require that EOG pay the difference between the ceiling price and the NYMEX Henry Hub natural gas price for the contract month (Henry Hub Index Price) in the event the Henry Hub Index Price is above the ceiling price. The collars grant EOG the right to receive the difference between the floor price and the Henry Hub Index Price in the event the Henry Hub Index Price is below the floor price. Presented below is a comprehensive summary of EOG's natural gas collar contracts through February 19, 2020, with notional volumes expressed in MMBtud and prices expressed in $/MMBtu.

                       
                       

Natural Gas Collar Contracts

                 

Weighted Average Price ($/MMBtu)

             

Volume (MMBtud)

 

Ceiling Price

 

Floor Price

2020

                   

April 1, 2020 through October 31, 2020

       

250,000

 

$           2.50

 

$             2.00

                       
                       

Prices received by EOG for its natural gas production generally vary from NYMEX Henry Hub prices due to adjustments for delivery location (basis) and other factors.  EOG has entered into natural gas basis swap contracts in order to fix the differential between pricing in the Rocky Mountain area and NYMEX Henry Hub prices (Rockies Differential).  Presented below is a comprehensive summary of EOG's Rockies Differential basis swap contracts through February 19, 2020.  The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts.

                       
                       

Rockies Differential Basis Swap Contracts

                     

Weighted

                     

Average Price

                 

Volume

 

Differential

                 

(MMBtud)

 

($/MMBtu)

2020

                   

January 1, 2020 through February 29, 2020 (closed)

           

30,000

 

$             0.55

March 1, 2020 through December 31, 2020

           

30,000

 

0.55

                       
                       

EOG has also entered into natural gas basis swap contracts in order to fix the differential between pricing at the Houston Ship Channel (HSC) and NYMEX Henry Hub prices (HSC Differential). Presented below is a comprehensive summary of EOG's HSC Differential basis swap contracts through February 19, 2020. The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts.

                       
                       

HSC Differential Basis Swap Contracts

                     

Weighted

                     

Average Price

                 

Volume

 

Differential

                 

(MMBtud)

 

($/MMBtu)

2020

                   

January 1, 2020 through February 29, 2020 (closed)

           

60,000

 

$             0.05

March 1, 2020 through December 31, 2020

           

60,000

 

0.05

                       
                       

EOG has also entered into natural gas basis swap contracts in order to fix the differential between pricing at the Waha Hub in West Texas and NYMEX Henry Hub prices (Waha Differential). Presented below is a comprehensive summary of EOG's Waha Differential basis swap contracts through February 19, 2020. The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts.

                       
                       

Waha Differential Basis Swap Contracts

                     

Weighted

                     

Average Price

                 

Volume

 

Differential

                 

(MMBtud)

 

($/MMBtu)

2020

                   

January 1, 2020 through February 29, 2020 (closed)

           

50,000

 

$             1.40

March 1, 2020 through December 31, 2020

           

50,000

 

1.40

                       
                       

Definitions

                   

Bbld

Barrels per day

                 

$/Bbl

Dollars per barrel

                 

MMBtud      

Million British thermal units per day

                 

$/MMBtu

Dollars per million British thermal units

                 

NYMEX

U.S. New York Mercantile Exchange

                 

 

 

EOG RESOURCES, INC.

Direct After-Tax Rate of Return (ATROR)

 

The calculation of our direct after-tax rate of return (ATROR) with respect to our capital expenditure program for a particular play or well is based on the estimated recoverable reserves ("net" to EOG's interest) for all wells in such play or such well (as the case may be), the estimated net present value (NPV) of the future net cash flows from such reserves (for which we utilize certain assumptions regarding future commodity prices and operating costs) and our direct net costs incurred in drilling or acquiring (as the case may be) such wells or well (as the case may be).  As such, our direct ATROR with respect to our capital expenditures for a particular play or well cannot be calculated from our consolidated financial statements. 

 
 

Direct ATROR

Based on Cash Flow and Time Value of Money

  - Estimated future commodity prices and operating costs

  - Costs incurred to drill, complete and equip a well, including facilities

Excludes Indirect Capital

  - Gathering and Processing and other Midstream

  - Land, Seismic, Geological and Geophysical

 

Payback ~12 Months on 100% Direct ATROR Wells

First Five Years ~1/2 Estimated Ultimate Recovery Produced but ~3/4 of NPV Captured

 
 

Return on Equity / Return on Capital Employed 

Based on GAAP Accrual Accounting

Includes All Indirect Capital and Growth Capital for Infrastructure

  - Eagle Ford, Bakken, Permian Facilities

  - Gathering and Processing

Includes Legacy Gas Capital and Capital from Mature Wells

 

 

EOG RESOURCES, INC.

Reconciliation of After-Tax Net Interest Expense, Adjusted Net Income,

Net Debt and Total Capitalization

Calculations of Return on Capital Employed and Return on Equity

(Unaudited; in millions, except ratio data)

                 

The following chart reconciles Net Interest Expense (GAAP), Net Income (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Adjusted Net Income (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) and Return on Equity (ROE) calculations.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Adjusted Net Income, Net Debt and Total Capitalization (Non-GAAP) in their ROCE and ROE calculations.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

                 
   

2019

   

2018

   

2017

Return on Capital Employed (ROCE) (Non-GAAP)

               
                 

Net Interest Expense (GAAP)

$

185

 

$

245

     

Tax Benefit Imputed (based on 21%) 

 

(39)

   

(51)

     

After-Tax Net Interest Expense (Non-GAAP) - (a) 

$

146

 

$

194

     
                 

Net Income (GAAP) - (b)                                                   

$

2,735

 

$

3,419

     

Adjustments to Net Income, Net of Tax (See Accompanying Schedule)

 

158

(1)

 

(201)

(2)

   

Adjusted Net Income (Non-GAAP) - (c)   

$

2,893

 

$

3,218

     
                 

Total Stockholders' Equity - (d)   

$

21,641

 

$

19,364

 

$

16,283

                 

Average Total Stockholders' Equity * - (e)   

$

20,503

 

$

17,824

     
                 

Current and Long-Term Debt (GAAP) - (f) 

$

5,175

 

$

6,083

 

$

6,387

Less: Cash                                                       

 

(2,028)

   

(1,556)

   

(834)

Net Debt (Non-GAAP) - (g) 

$

3,147

 

$

4,527

 

$

5,553

                 

Total Capitalization (GAAP) - (d) + (f)  

$

26,816

 

$

25,447

 

$

22,670

                 

Total Capitalization (Non-GAAP) - (d) + (g) 

$

24,788

 

$

23,891

 

$

21,836

                 

Average Total Capitalization (Non-GAAP) * - (h)   

$

24,340

 

$

22,864

     
                 

ROCE (GAAP Net Income) - [(a) + (b)] / (h)       

 

11.8%

   

15.8%

     
                 

ROCE (Non-GAAP Adjusted Net Income) - [(a) + (c)] / (h)       

 

12.5%

   

14.9%

     
                 

Return on Equity (ROE)

               
                 

ROE (GAAP Net Income) - (b) / (e)

 

13.3%

   

19.2%

     
                 

ROE (Non-GAAP Adjusted Net Income) - (c) / (e)

 

14.1%

   

18.1%

     
                 

* Average for the current and immediately preceding year

               
                 
                 
                 

Adjustments to Net Income (GAAP)

               
                 
                 

(1) See below schedule for detail of adjustments to Net Income (GAAP) in 2019:

         
                 
   

Year Ended December 31, 2019

   

 Before 

   

 Income Tax  

   

 After 

   

 Tax 

   

 Impact 

   

 Tax 

Adjustments:

               

    Add:   Mark-to-Market Commodity Derivative Contracts Impact

$

51

 

$

(11)

 

$

40

    Add:   Impairments of Certain Assets

 

275

   

(60)

   

215

    Less:   Net Gains on Asset Dispositions

 

(124)

   

27

   

(97)

Total

$

202

 

$

(44)

 

$

158

                 

(2) See below schedule for detail of adjustments to Net Income (GAAP) in 2018:

         
                 
   

Year Ended December 31, 2018

   

 Before 

   

 Income Tax  

   

 After 

   

 Tax 

   

 Impact 

   

 Tax 

Adjustments:

               

    Add:   Mark-to-Market Commodity Derivative Contracts Impact

$

(93)

 

$

20

 

$

(73)

    Add:   Impairments of Certain Assets

 

153

   

(34)

   

119

    Less:   Net Gains on Asset Dispositions

 

(175)

   

38

   

(137)

    Less:  Tax Reform Impact

 

-

   

(110)

   

(110)

Total

$

(115)

 

$

(86)

 

$

(201)

 

 
 

EOG RESOURCES, INC.

Reconciliation of After-Tax Net Interest Expense, 

Net Debt and Total Capitalization 

Calculation of Return on Capital Employed 

(Unaudited; in millions, except ratio data)

                     

The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

                     
   

2017

 

2016

 

2015

 

2014

 

2013

Return on Capital Employed (ROCE) (Non-GAAP)

                   

(Calculated Using GAAP Net Income)

                   
                     

Net Interest Expense (GAAP)

$

274

$

282

$

237

$

201

$

235

Tax Benefit Imputed (based on 35%) 

 

(96)

 

(99)

 

(83)

 

(70)

 

(82)

After-Tax Net Interest Expense (Non-GAAP) - (a) 

$

178

$

183

$

154

$

131

$

153

                     

Net Income (Loss) (GAAP) - (b)                                                   

$

2,583

$

(1,097)

$

(4,525)

$

2,915

$

2,197

                     

Total Stockholders' Equity - (d)   

$

16,283

$

13,982

$

12,943

$

17,713

$

15,418

                     

Average Total Stockholders' Equity * - (e)   

$

15,133

$

13,463

$

15,328

$

16,566

$

14,352

                     

Current and Long-Term Debt (GAAP) - (f) 

$

6,387

$

6,986

$

6,655

$

5,906

$

5,909

Less: Cash                                                       

 

(834)

 

(1,600)

 

(719)

 

(2,087)

 

(1,318)

Net Debt (Non-GAAP) - (g) 

$

5,553

$

5,386

$

5,936

$

3,819

$

4,591

                     

Total Capitalization (GAAP) - (d) + (f)  

$

22,670

$

20,968

$

19,598

$

23,619

$

21,327

                     

Total Capitalization (Non-GAAP) - (d) + (g) 

$

21,836

$

19,368

$

18,879

$

21,532

$

20,009

                     

Average Total Capitalization (Non-GAAP) * - (h)   

$

20,602

$

19,124

$

20,206

$

20,771

$

19,365

                     

ROCE (GAAP Net Income) - [(a) + (b)] / (h)       

 

13.4%

 

-4.8%

 

-21.6%

 

14.7%

 

12.1%

                     

Return on Equity (ROE) (GAAP)

                   
                     

ROE (GAAP Net Income) - (b) / (e)

 

17.1%

 

-8.1%

 

-29.5%

 

17.6%

 

15.3%

                     
                     

* Average for the current and immediately preceding year

               
                     
                     
 

EOG RESOURCES, INC.

Reconciliation of After-Tax Net Interest Expense, 

Net Debt and Total Capitalization 

Calculation of Return on Capital Employed 

(Unaudited; in millions, except ratio data)

                     

The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

                     
   

2012

 

2011

 

2010

 

2009

 

2008

Return on Capital Employed (ROCE) (Non-GAAP)

                   

(Calculated Using GAAP Net Income)

                   
                     

Net Interest Expense (GAAP)

$

214

$

210

$

130

$

101

$

52

Tax Benefit Imputed (based on 35%) 

 

(75)

 

(74)

 

(46)

 

(35)

 

(18)

After-Tax Net Interest Expense (Non-GAAP) - (a) 

$

139

$

136

$

84

$

66

$

34

                     

Net Income (Loss) (GAAP) - (b)                                                   

$

570

$

1,091

$

161

$

547

$

2,437

                     

Total Stockholders' Equity - (d)   

$

13,285

$

12,641

$

10,232

$

9,998

$

9,015

                     

Average Total Stockholders' Equity * - (e)   

$

12,963

$

11,437

$

10,115

$

9,507

$

8,003

                     

Current and Long-Term Debt (GAAP) - (f) 

$

6,312

$

5,009

$

5,223

$

2,797

$

1,897

Less: Cash                                                       

 

(876)

 

(616)

 

(789)

 

(686)

 

(331)

Net Debt (Non-GAAP) - (g) 

$

5,436

$

4,393

$

4,434

$

2,111

$

1,566

                     

Total Capitalization (GAAP) - (d) + (f)  

$

19,597

$

17,650

$

15,455

$

12,795

$

10,912

                     

Total Capitalization (Non-GAAP) - (d) + (g) 

$

18,721

$

17,034

$

14,666

$

12,109

$

10,581

                     

Average Total Capitalization (Non-GAAP) * - (h)   

$

17,878

$

15,850

$

13,388

$

11,345

$

9,351

                     

ROCE (GAAP Net Income) - [(a) + (b)] / (h)       

 

4.0%

 

7.7%

 

1.8%

 

5.4%

 

26.4%

                     

Return on Equity (ROE) (GAAP)

                   
                     

ROE (GAAP Net Income) - (b) / (e)

 

4.4%

 

9.5%

 

1.6%

 

5.8%

 

30.5%

                     
                     

* Average for the current and immediately preceding year

               
                     
                     
 

EOG RESOURCES, INC.

Reconciliation of After-Tax Net Interest Expense, 

Net Debt and Total Capitalization 

Calculation of Return on Capital Employed 

(Unaudited; in millions, except ratio data)

                     

The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

                     
   

2007

 

2006

 

2005

 

2004

 

2003

Return on Capital Employed (ROCE) (Non-GAAP)

                   

(Calculated Using GAAP Net Income)

                   
                     

Net Interest Expense (GAAP)

$

47

$

43

$

63

$

63

$

59

Tax Benefit Imputed (based on 35%) 

 

(16)

 

(15)

 

(22)

 

(22)

 

(21)

After-Tax Net Interest Expense (Non-GAAP) - (a) 

$

31

$

28

$

41

$

41

$

38

                     

Net Income (Loss) (GAAP) - (b)                                                   

$

1,090

$

1,300

$

1,260

$

625

$

430

                     

Total Stockholders' Equity - (d)   

$

6,990

$

5,600

$

4,316

$

2,945

$

2,223

                     

Average Total Stockholders' Equity * - (e)   

$

6,295

$

4,958

$

3,631

$

2,584

$

1,948

                     

Current and Long-Term Debt (GAAP) - (f) 

$

1,185

$

733

$

985

$

1,078

$

1,109

Less: Cash                                                       

 

(54)

 

(218)

 

(644)

 

(21)

 

(4)

Net Debt (Non-GAAP) - (g) 

$

1,131

$

515

$

341

$

1,057

$

1,105

                     

Total Capitalization (GAAP) - (d) + (f)  

$

8,175

$

6,333

$

5,301

$

4,023

$

3,332

                     

Total Capitalization (Non-GAAP) - (d) + (g) 

$

8,121

$

6,115

$

4,657

$

4,002

$

3,328

                     

Average Total Capitalization (Non-GAAP) * - (h)   

$

7,118

$

5,386

$

4,330

$

3,665

$

3,068

                     

ROCE (GAAP Net Income) - [(a) + (b)] / (h)       

 

15.7%

 

24.7%

 

30.0%

 

18.2%

 

15.3%

                     

Return on Equity (ROE) (GAAP)

                   
                     

ROE (GAAP Net Income) - (b) / (e)

 

17.3%

 

26.2%

 

34.7%

 

24.2%

 

22.1%

                     
                     

* Average for the current and immediately preceding year

               
                     
                     
 

EOG RESOURCES, INC.

Reconciliation of After-Tax Net Interest Expense, 

Net Debt and Total Capitalization 

Calculation of Return on Capital Employed 

(Unaudited; in millions, except ratio data)

                     

The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

                     
   

2002

 

2001

 

2000

 

1999

 

1998

Return on Capital Employed (ROCE) (Non-GAAP)

                   

(Calculated Using GAAP Net Income)

                   
                     

Net Interest Expense (GAAP)

$

60

$

45

$

61

$

62

   

Tax Benefit Imputed (based on 35%) 

 

(21)

 

(16)

 

(21)

 

(22)

   

After-Tax Net Interest Expense (Non-GAAP) - (a) 

$

39

$

29

$

40

$

40

   
                     

Net Income (Loss) (GAAP) - (b)                                                   

$

87

$

399

$

397

$

569

   
                     

Total Stockholders' Equity - (d)   

$

1,672

$

1,643

$

1,381

$

1,130

$

1,280

                     

Average Total Stockholders' Equity * - (e)   

$

1,658

$

1,512

$

1,256

$

1,205

   
                     

Current and Long-Term Debt (GAAP) - (f) 

$

1,145

$

856

$

859

$

990

$

1,143

Less: Cash                                                       

 

(10)

 

(3)

 

(20)

 

(25)

 

(6)

Net Debt (Non-GAAP) - (g) 

$

1,135

$

853

$

839

$

965

$

1,137

                     

Total Capitalization (GAAP) - (d) + (f)  

$

2,817

$

2,499

$

2,240

$

2,120

$

2,423

                     

Total Capitalization (Non-GAAP) - (d) + (g) 

$

2,807

$

2,496

$

2,220

$

2,095

$

2,417

                     

Average Total Capitalization (Non-GAAP) * - (h)   

$

2,652

$

2,358

$

2,158

$

2,256

   
                     

ROCE (GAAP Net Income) - [(a) + (b)] / (h)       

 

4.8%

 

18.2%

 

20.2%

 

27.0%

   
                     

Return on Equity (ROE) (GAAP)

                   
                     

ROE (GAAP Net Income) - (b) / (e)

 

5.2%

 

26.4%

 

31.6%

 

47.2%

   
                     
                     

* Average for the current and immediately preceding year

               

 

 

 

EOG RESOURCES, INC.

Cash Operating Expenses per Barrel of Oil Equivalent (Boe)

(Unaudited; in thousands, except per Boe amounts)

                           
                           
   

Year Ended

 
   

December 31,

 
   

2019

 

2018

 

2017

 

2016

 

2015

 

2014

 
                           

Cash Operating Expenses (GAAP)*

                         

Lease and Well

 

$  1,366,993

 

$  1,282,678

 

$  1,044,847

 

$    927,452

 

$  1,182,282

 

$  1,416,413

 

Transportation Costs

 

758,300

 

746,876

 

740,352

 

764,106

 

849,319

 

972,176

 

General and Administrative

 

489,397

 

426,969

 

434,467

 

394,815

 

366,594

 

402,010

 

     Cash Operating Expenses

 

2,614,690

 

2,456,523

 

2,219,666

 

2,086,373

 

2,398,195

 

2,790,599

 

Less:  Legal Settlement - Early Leasehold Termination

 

-

 

-

 

(10,202)

 

-

 

(19,355)

 

-

 

Less:  Voluntary Retirement Expense

 

-

 

-

 

-

 

(42,054)

 

-

 

-

 

Less:  Acquisition Costs - Yates Transaction

 

-

 

-

 

-

 

(5,100)

 

-

 

-

 

Less:  Joint Venture Transaction Costs

 

-

 

-

 

(3,056)

 

-

 

-

 

-

 

Less:  Joint Interest Billings Deemed Uncollectible

 

-

 

-

 

(4,528)

 

-

 

-

 

-

 

     Adjusted Cash Operating Expenses (Non-GAAP) - (a)

 

$  2,614,690

 

$  2,456,523

 

$  2,201,880

 

$  2,039,219

 

$  2,378,840

 

$  2,790,599

 
                           

Volume - Thousand Barrels of Oil Equivalent - (b)

 

298,565

 

262,516

 

222,251

 

204,929

 

208,862

 

217,073

 
                           

Adjusted Cash Operating Expenses Per Boe (Non-GAAP) - (a) / (b)

$          8.76

(c)

$          9.36

(d)

$          9.91

(e)

$          9.95

(f)

$        11.39

(g)

$        12.86

(h)

                           

Adjusted Cash Operating Expenses Per Boe (Non-GAAP) -
   Percentage Decrease

                         

2019 compared to 2018 - [(c) - (d)] / (d)       

 

-6%

                     

2019 compared to 2017 - [(c) - (e)] / (e)       

 

-12%

                     

2019 compared to 2016 - [(c) - (f)] / (f)       

 

-12%

                     

2019 compared to 2015 - [(c) - (g)] / (g)       

 

-23%

                     

2019 compared to 2014 - [(c) - (h)] / (h)       

 

-32%

                     
                           
                           

* Includes stock compensation expense and other non-cash items.

                         

 

 

EOG RESOURCES, INC.

Cost per Barrel of Oil Equivalent (Boe)

(Unaudited; in thousands, except per Boe amounts)

                 
                 
   

Three Months Ended

   

March 31,

 

June 30,

 

September 30,

 

December 31,

   

2019

 

2019

 

2019

 

2019

                 

Volume - Thousand Barrels of Oil Equivalent - (a)

 

69,623

 

73,964

 

76,748

 

78,231

                 

     Crude Oil and Condensate

 

$    2,200,403

 

$    2,528,866

 

$     2,418,989

 

$    2,464,274

     Natural Gas Liquids

 

218,638

 

186,374

 

164,736

 

215,070

     Natural Gas

 

334,972

 

269,892

 

269,625

 

309,606

Total Wellhead Revenues - (b)

 

$    2,754,013

 

$    2,985,132

 

$     2,853,350

 

$    2,988,950

                 

Operating Costs

               

     Lease and Well

 

$      336,291

 

$      347,281

 

$        348,883

 

$       334,538

     Transportation Costs

 

176,522

 

174,101

 

199,365

 

208,312

     Gathering and Processing Costs

 

111,295

 

112,643

 

127,549

 

127,615

     General and Administrative

 

106,672

 

121,780

 

135,758

 

125,187

     Taxes Other Than Income

 

192,906

 

204,414

 

203,098

 

199,746

     Interest Expense, Net

 

54,906

 

49,908

 

39,620

 

40,695

Total Cash Operating Cost (excluding DD&A and Total
  Exploration Costs) - (c)

 

$      978,592

 

$    1,010,127

 

$     1,054,273

 

$    1,036,093

                 

     Depreciation, Depletion and Amortization (DD&A)

 

879,595

 

957,304

 

953,597

 

959,208

Total Operating Cost (excluding Total Exploration Costs) - (d)

 

$    1,858,187

 

$    1,967,431

 

$     2,007,870

 

$    1,995,301

                 

     Exploration Costs

 

$        36,324

 

$        32,522

 

$          34,540

 

$         36,495

     Dry Hole Costs

 

94

 

3,769

 

24,138

 

-

     Impairments

 

72,356

 

112,130

 

105,275

 

228,135

     Total Exploration Costs 

 

108,774

 

148,421

 

163,953

 

264,630

          Less:  Impairments (Non-GAAP)

 

(23,745)

 

(65,289)

 

(27,215)

 

(158,725)

     Total Exploration Costs (Non-GAAP)

 

$        85,029

 

$        83,132

 

$        136,738

 

$       105,905

                 

Total Operating Cost (Non-GAAP) (including Total
  Exploration Costs) - (e)

 

$    1,943,216

 

$    2,050,563

 

$     2,144,608

 

$    2,101,206

                 

Composite Average Wellhead Revenue per Boe - (b) / (a)

 

$          39.56

 

$          40.36

 

$            37.18

 

$          38.21

                 

Total Cash Operating Cost per Boe (excluding DD&A 
  and Total Exploration Costs) - (c) / (a)

 

$          14.06

 

$          13.65

 

$            13.75

 

$          13.24

                 

Composite Average Margin per Boe (excluding DD&A
   and Total Exploration Costs) - [(b) / (a) - (c) / (a)]

 

$          25.50

 

$          26.71

 

$            23.43

 

$          24.97

                 

Total Operating Cost per Boe (excluding Total
  Exploration Costs) - (d) / (a)

 

$          26.69

 

$          26.59

 

$            26.18

 

$          25.50

                 

Composite Average  Margin per Boe (excluding Total
   Exploration Costs) - [(b) / (a) - (d) / (a)]

 

$          12.87

 

$          13.77

 

$            11.00

 

$          12.71

                 

Total Operating Cost per Boe (Non-GAAP) (including
  Total Exploration Costs) - (e) / (a)

 

$          27.91

 

$          27.72

 

$            27.97

 

$          26.85

                 

Composite Average Margin per Boe (Non-GAAP)
  (including Total Exploration Costs) - [(b) / (a) - (e) / (a)]

 

$          11.65

 

$          12.64

 

$             9.21

 

$          11.36

                 
                 
     

EOG RESOURCES, INC.

   

Cost per Barrel of Oil Equivalent (Boe)

   

(Unaudited; in thousands, except per Boe amounts)

   
                 
                 
   

Year Ended

   
   

December 31,

   
   

2019

 

2018

 

2017

   
                 

Volume - Thousand Barrels of Oil Equivalent - (a)

 

298,565

 

262,516

 

222,251

   
                 

     Crude Oil and Condensate

 

$    9,612,532

 

$    9,517,440

 

$     6,256,396

   

     Natural Gas Liquids

 

784,818

 

1,127,510

 

729,561

   

     Natural Gas

 

1,184,095

 

1,301,537

 

921,934

   

Total Wellhead Revenues - (b)

 

$  11,581,445

 

$  11,946,487

 

$     7,907,891

   
                 

Operating Costs

               

     Lease and Well

 

$    1,366,993

 

$    1,282,678

 

$     1,044,847

   

     Transportation Costs

 

758,300

 

746,876

 

740,352

   

     Gathering and Processing Costs

 

479,102

 

436,973

 

148,775

   
                 

     General and Administrative

 

489,397

 

426,969

 

434,467

   

          Less:  Legal Settlement - Early Leasehold Termination

 

-

 

-

 

(10,202)

   

          Less:  Joint Venture Transaction Costs

 

-

 

-

 

(3,056)

   

          Less:  Joint Interest Billings Deemed Uncollectible

 

-

 

-

 

(4,528)

   

     General and Administrative (Non-GAAP)

 

489,397

 

426,969

 

416,681

   
                 

     Taxes Other Than Income

 

800,164

 

772,481

 

544,662

   

     Interest Expense, Net

 

185,129

 

245,052

 

274,372

   

Total Cash Operating Cost (Non-GAAP) (excluding DD&A
  and Total Exploration Costs) - (c)

 

$    4,079,085

 

$    3,911,029

 

$     3,169,689

   
                 

     Depreciation, Depletion and Amortization (DD&A)

 

3,749,704

 

3,435,408

 

3,409,387

   

Total Operating Cost (Non-GAAP) (excluding Total
  Exploration Costs) - (d)

 

$    7,828,789

 

$    7,346,437

 

$     6,579,076

   
                 

     Exploration Costs

 

$      139,881

 

$      148,999

 

$        145,342

   

     Dry Hole Costs

 

28,001

 

5,405

 

4,609

   

     Impairments

 

517,896

 

347,021

 

479,240

   

     Total Exploration Costs 

 

685,778

 

501,425

 

629,191

   

          Less:  Impairments (Non-GAAP)

 

(274,974)

 

(152,671)

 

(261,452)

   

     Total Exploration Costs (Non-GAAP)

 

$      410,804

 

$      348,754

 

$        367,739

   
                 

Total Operating Cost (Non-GAAP) (including Total
  Exploration Costs) - (e)

 

$    8,239,593

 

$    7,695,191

 

$     6,946,815

   
                 

Composite Average Wellhead Revenue per Boe - (b) / (a)

 

$          38.79

 

$          45.51

 

$            35.58

   
                 

Total Cash Operating Cost per Boe (Non-GAAP)
  (excluding DD&A and Total Exploration Costs) - (c) / (a)

 

$          13.66

 

$          14.90

 

$            14.25

   
                 

Composite Average Margin per Boe (Non-GAAP) (excluding
   DD&A and Total Exploration Costs) - [(b) / (a) - (c) / (a)]

 

$          25.13

 

$          30.61

 

$            21.33

   
                 

Total Operating Cost per Boe (Non-GAAP) (excluding
  Total Exploration Costs) - (d) / (a)

 

$          26.22

 

$          27.99

 

$            29.59

   
                 

Composite Average Margin per Boe (Non-GAAP)
   (excluding Total Exploration Costs) - [(b) / (a) - (d) / (a)]

 

$          12.57

 

$          17.52

 

$             5.99

   
                 

Total Operating Cost per Boe (Non-GAAP) (including
  Total Exploration Costs) - (e) / (a)

 

$          27.60

 

$          29.32

 

$            31.24

   
                 

Composite Average Margin per Boe (Non-GAAP)
  (including Total Exploration Costs) - [(b) / (a) - (e) / (a)]

 

$          11.19

 

$          16.19

 

$             4.34

   
                 
                 
     

EOG RESOURCES, INC.

   

Cost per Barrel of Oil Equivalent (Boe)

   

(Unaudited; in thousands, except per Boe amounts)

   
                 
                 
   

Year Ended

   
   

December 31,

   
   

2016

 

2015

 

2014

   
                 

Volume - Thousand Barrels of Oil Equivalent - (a)

 

204,929

 

208,862

 

217,073

   
                 

     Crude Oil and Condensate

 

$    4,317,341

 

$    4,934,562

 

$     9,742,480

   

     Natural Gas Liquids

 

437,250

 

407,658

 

934,051

   

     Natural Gas

 

742,152

 

1,061,038

 

1,916,386

   

Total Wellhead Revenues - (b)

 

$    5,496,743

 

$    6,403,258

 

$    12,592,917

   
                 

Operating Costs

               

     Lease and Well

 

$      927,452

 

$    1,182,282

 

$     1,416,413

   

     Transportation Costs

 

764,106

 

849,319

 

972,176

   

     Gathering and Processing Costs

 

122,901

 

146,156

 

145,800

   
                 

     General and Administrative

 

394,815

 

366,594

 

402,010

   

          Less:  Voluntary Retirement Expense

 

(42,054)

 

-

 

-

   

          Less:  Acquisition Costs

 

(5,100)

 

-

 

-

   

          Less:  Legal Settlement - Early Leasehold Termination

 

-

 

(19,355)

 

-

   

     General and Administrative (Non-GAAP)

 

347,661

 

347,239

 

402,010

   
                 

     Taxes Other Than Income

 

349,710

 

421,744

 

757,564

   

     Interest Expense, Net

 

281,681

 

237,393

 

201,458

   

Total Cash Operating Cost (Non-GAAP) (excluding DD&A
  and Total Exploration Costs) - (c)

 

$    2,793,511

 

$    3,184,133

 

$     3,895,421

   
                 

     Depreciation, Depletion and Amortization (DD&A)

 

3,553,417

 

3,313,644

 

3,997,041

   

Total Operating Cost (Non-GAAP) (excluding Total
  Exploration Costs) - (d)

 

$    6,346,928

 

$    6,497,777

 

$     7,892,462

   
                 

     Exploration Costs

 

$      124,953

 

$      149,494

 

$        184,388

   

     Dry Hole Costs

 

10,657

 

14,746

 

48,490

   

     Impairments

 

620,267

 

6,613,546

 

743,575

   

     Total Exploration Costs 

 

755,877

 

6,777,786

 

976,453

   

          Less:  Impairments (Non-GAAP)

 

(320,617)

 

(6,307,593)

 

(824,312)

   

     Total Exploration Costs (Non-GAAP)

 

$      435,260

 

$      470,193

 

$        152,141

   
                 

Total Operating Cost (Non-GAAP) (including Total
  Exploration Costs) - (e)

 

$    6,782,188

 

$    6,967,970

 

$     8,044,603

   
                 

Composite Average Wellhead Revenue per Boe - (b) / (a)

 

$          26.82

 

$          30.66

 

$            58.01

   
                 

Total Cash Operating Cost per Boe (Non-GAAP)
  (excluding DD&A and Total Exploration Costs) - (c) / (a)

 

$          13.64

 

$          15.25

 

$            17.95

   
                 

Composite Average Margin per Boe (Non-GAAP) (excluding
   DD&A and Total Exploration Costs) - [(b) / (a) - (c) / (a)]

 

$          13.18

 

$          15.41

 

$            40.06

   
                 

Total Operating Cost per Boe (Non-GAAP) (excluding
  Total Exploration Costs) - (d) / (a)

 

$          30.98

 

$          31.11

 

$            36.38

   
                 

Composite Average Margin per Boe (Non-GAAP)
   (excluding Total Exploration Costs) - [(b) / (a) - (d) / (a)]

 

$           (4.16)

 

$           (0.45)

 

$            21.63

   
                 

Total Operating Cost per Boe (Non-GAAP) (including
  Total Exploration Costs) - (e) / (a)

 

$          33.10

 

$          33.36

 

$            37.08

   
                 

Composite Average Margin per Boe (Non-GAAP)
  (including Total Exploration Costs) - [(b) / (a) - (e) / (a)]

 

$           (6.28)

 

$           (2.70)

 

$            20.93

   

 

 

EOG RESOURCES, INC.

First Quarter and Full Year 2020 Forecast and Benchmark Commodity Pricing

                       

     (a)  First Quarter and Full Year 2020 Forecast

                     
                       

The forecast items for the first quarter and full year 2020 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.  EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.  This forecast, which should be read in conjunction with the accompanying press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.

                       

     (b)  Capital Expenditures

                     
                       

The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Exploration Costs, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs and any Non-Cash Exchanges.

                       

     (c)  Benchmark Commodity Pricing

                     
                       

EOG bases United States 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.

                       

EOG bases United States 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.

                       
         

 

Estimated Ranges

       
         

 

(Unaudited)

       
   

1Q 2020

   

Full Year 2020

Daily Sales Volumes

                     

     Crude Oil and Condensate Volumes (MBbld)

                     

          United States

 

479.0

-

 

487.0

   

499.0

-

 

517.6

          Trinidad

 

0.5

-

 

0.7

   

1.0

-

 

1.2

          Other International

 

0.0

-

 

0.2

   

0.0

-

 

0.2

               Total

 

479.5

-

 

487.9

   

500.0

-

 

519.0

                       

     Natural Gas Liquids Volumes (MBbld)

                     

               Total

 

150.0

-

 

160.0

   

157.0

-

 

177.0

                       

     Natural Gas Volumes (MMcfd)

                     

          United States

 

1,090

-

 

1,150

   

1,135

-

 

1,235

          Trinidad

 

185

-

 

215

   

215

-

 

255

          Other International

 

25

-

 

35

   

25

-

 

35

               Total

 

1,300

-

 

1,400

   

1,375

-

 

1,525

                       

     Crude Oil Equivalent Volumes (MBoed)  

                     

          United States

 

810.7

-

 

838.7

   

845.2

-

 

900.4

          Trinidad

 

31.3

-

 

36.5

   

36.8

-

 

43.7

          Other International

 

4.2

-

 

6.0

   

4.2

-

 

6.0

               Total

 

846.2

-

 

881.2

   

886.2

-

 

950.1

                       
                       

Capital Expenditures ($MM)

$

1,850

-

$

2,050

 

$

6,300

-

$

6,700

                       
         

 

Estimated Ranges

       
         

 

(Unaudited)

       
 

1Q 2020

   

Full Year 2020

Operating Costs

                     

     Unit Costs ($/Boe)

                     

          Lease and Well

$

4.30

-

$

4.80

 

$

4.20

-

$

4.80

          Transportation Costs

$

2.40

-

$

2.80

 

$

2.30

-

$

2.70

          General and Administrative

$

1.55

-

$

1.65

 

$

1.55

-

$

1.65

          Gathering and Processing

$

1.70

-

$

1.80

 

$

1.60

-

$

1.80

          Depreciation, Depletion and Amortization

$

13.00

-

$

13.50

 

$

12.15

-

$

13.15

                       

Expenses ($MM)

                     

     Exploration and Dry Hole

$

40

-

$

50

 

$

145

-

$

185

     Impairment

$

80

-

$

90

 

$

325

-

$

365

     Capitalized Interest

$

9

-

$

11

 

$

37

-

$

43

     Net Interest

$

39

-

$

41

 

$

136

-

$

140

                       

Taxes Other Than Income (% of Wellhead Revenue)

 

7.0%

-

 

8.0%

   

7.0%

-

 

8.0%

                       

Income Taxes

                     

     Effective Rate 

 

21%

-

 

26%

   

21%

-

 

26%

     Current Tax (Benefit) / Expense ($MM)

$

(15)

-

$

30

 

$

5

-

$

50

                       

Pricing - (Refer to Benchmark Commodity Pricing in text)

                     

     Crude Oil and Condensate ($/Bbl)

                     

          Differentials

                     

               United States - above (below) WTI

$

(0.10)

-

$

0.90

 

$

(0.50)

-

$

1.50

               Trinidad - above (below) WTI

$

(11.00)

-

$

(9.00)

 

$

(11.50)

-

$

(9.50)

               Other International - above (below) WTI

$

0.75

-

$

4.75

 

$

(0.65)

-

$

1.35

                       

     Natural Gas Liquids

                     

          Realizations as % of WTI

 

21%

-

 

27%

   

21%

-

 

27%

                       

     Natural Gas ($/Mcf)

                     

          Differentials

                     

               United States - above (below) NYMEX Henry Hub

$

(0.70)

-

$

(0.30)

 

$

(0.90)

-

$

(0.30)

                       

          Realizations

                     

               Trinidad

$

2.40

-

$

2.80

 

$

2.50

-

$

3.20

               Other International

$

4.00

-

$

4.50

 

$

3.85

-

$

4.85

                       

Definitions

                     

$/Bbl         U.S. Dollars per barrel

                     

$/Boe        U.S. Dollars per barrel of oil equivalent

                     

$/Mcf         U.S. Dollars per thousand cubic feet

                     

$MM          U.S. Dollars in millions

                     

MBbld       Thousand barrels per day

                     

MBoed      Thousand barrels of oil equivalent per day

                     

MMcfd       Million cubic feet per day

                     

NYMEX     U.S. New York Mercantile Exchange

                     

WTI           West Texas Intermediate

                     

 

 

Cision View original content:http://www.prnewswire.com/news-releases/eog-resources-reports-excellent-fourth-quarter-and-full-year-2019-results-announces-2020-capital-program-raises-dividend-by-30-percent-301013042.html

SOURCE EOG Resources, Inc.