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EOG Resources Reports Second Quarter 2021 Results

HOUSTON, Aug. 4, 2021 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported second quarter 2021 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors .

Key Financial Results

In millions of USD, except per-share and ratio data

 
   

2Q 2021

 

1Q 2021

 

2Q 2020

 

GAAP

Total Revenue

4,139

 

3,694

 

1,103

 

Net Income (Loss)

907

 

677

 

(910)

 

Net Income (Loss) Per Share

1.55

 

1.16

 

(1.57)

 

Net Cash Provided by Operating Activities

1,559

 

1,870

 

88

 

Total Expenditures

1,089

 

1,067

 

534

 

Current and Long-Term Debt

5,125

 

5,133

 

5,724

 

Cash and Cash Equivalents

3,880

 

3,388

 

2,417

 

Debt-to-Total Capitalization

19.7

%

19.8

%

21.9

%

 

Non- GAAP

Adjusted Net Income (Loss)

1,012

 

946

 

(131)

 

Adjusted Net Income (Loss) Per Share

1.73

 

1.62

 

(0.23)

 

Discretionary Cash Flow

2,030

 

2,010

 

672

 

Cash Capital Expenditures before Acquisitions

972

 

945

 

478

 

Free Cash Flow

1,058

 

1,065

 

194

 

Net Debt

1,245

 

1,745

 

3,307

 

Net Debt-to-Total Capitalization

5.6

%

7.8

%

14.0

%

Second Quarter 2021 Highlights

  • Earned adjusted net income of $1.0 billion, or $1.73 per share
  • Generated over $1.0 billion of free cash flow
  • Capital expenditures below low end of guidance range driven by sustainable cost reductions
  • Increased full-year well cost reduction target to 7% from 5%
  • Oil production above high end of guidance range
  • Total per-unit cash operating costs 3% below guidance midpoint
  • Achieved strong ESG performance in 2020 driven by technology and innovation, positioning EOG ahead of pace to meet near-term ESG targets

Volumes and Capital Expenditures

Wellhead Volumes

2Q 2021

2Q 2021
Guidance
Midpoint

1Q 2021

2Q 2020

Crude Oil and Condensate (MBod)

448.6

443.0

431.0

331.1

Natural Gas Liquids (MBbld)

138.5

132.5

124.3

101.2

Natural Gas (MMcfd)

1,445

1,386

1,342

1,147

Total Crude Oil Equivalent (MBoed)

828.0

806.5

778.9

623.4

 

Cash Capital Expenditures before Acquisitions ($MM)

972

1,100

945

478

 

From William R. "Bill" Thomas, Chairman and Chief Executive Officer
"EOG is consistently delivering strong results. Our talented employees, supported by our unique culture, have risen to meet the double-premium investment standard in every aspect of the business. Outstanding operating execution, strong well productivity and lower well costs resulted in higher production and lower capital expenditures compared with our plan. We further lowered operating costs while our differentiated marketing strategy captured premium product prices.

"As a result, we generated a second consecutive quarter of record-level free cash flow. Our longstanding free cash flow priorities remain intact. We have already committed to return $1.5 billion of cash to shareholders in 2021 through regular and special dividends, including $820 million paid on July 30. Returning cash to shareholders remains a priority as we generate additional free cash flow during the second half of the year.

"EOG's industry-leading execution extends to our environmental performance, where we are driving meaningful reductions in GHG and methane emissions intensity. We have almost completely eliminated routine flaring and continue to increase the percentage of recycled water used in our operations. Our entrepreneurial culture fosters new technology and innovations to further enhance our performance. Our successful closed-loop gas capture pilot is being expanded to additional locations. And we recently initiated a carbon capture and storage pilot project. Our goal remains to be among the lowest cost, highest return and lowest emissions producers and to play a significant role in the long-term future of energy.

"Our outstanding second quarter results are a testament to EOG's special culture. EOG has never been in better shape and we are getting even better. With the momentum we are building from the shift to double premium, I am confident the company will continue to make significant improvements in the years ahead."
  

Second Quarter 2021 Financial Performance

 


 

 

Adjusted Earnings per Share 2Q 2021 vs 1Q 2021

Prices and Hedges
Overall crude oil equivalent prices increased slightly in 2Q, with higher crude oil and NGL prices partially offset by lower natural gas prices.

Cash paid for hedge settlements increased to $193 million in 2Q compared with payments of $30 million in 1Q.

Volumes
Total company crude oil production of 448,600 Bopd was above the high end of the guidance range and 4% more than 1Q, which was impacted by adverse weather. NGL production was 11% higher and natural gas production was 8% higher, contributing to an overall 6% increase in total company equivalent volumes.

Per-Unit Costs
Total per-unit cash operating costs in 2Q were 3% below the midpoint of the guidance range, and lower compared with 1Q, due to reductions in lease and well costs from compression savings and gathering and processing costs from lower fuel and power rates.

Change in Cash 2Q 2021 vs 1Q 2021

Free Cash Flow
EOG generated discretionary cash flow (net cash provided by operating activities before exploration costs and changes in working capital) of $2.03 billion in 2Q. The company incurred $972 million of cash capital expenditures before acquisitions, resulting in $1.06 billion of free cash flow.

Capital Expenditures
Cash capital expenditures before acquisitions of $972 million were below the low end of the guidance range due to lower well costs from sustainable efficiency improvements. Faster drilling times, more efficient completion operations and lower-cost sand and water sourcing contributed to lower overall well costs. As a result, EOG has increased its full-year well cost reduction target to 7% from 5%.

 

Second Quarter 2021 Operating Performance

 


 

  

Lease and Well
Per-unit LOE costs were $0.22 below the 2Q 2021 guidance midpoint, primarily due to lower costs for compression, water handling and lease upkeep.

Transportation, Gathering and Processing
Per-unit transportation costs in 2Q were similar to 1Q and within the guidance range. Gathering and processing costs on a per-unit basis declined 14% compared with 1Q, driven by declines in fuel and power prices from elevated winter levels.

General and Administrative
G&A costs on a per-unit basis were in-line with 1Q 2021 and within the guidance range.

Depreciation, Depletion and Amortization
Per-unit DD&A costs in 2Q were below the target and down 6% compared with 1Q due to the addition of reserves from new wells at lower finding costs.
 

Second Quarter 2021 Results vs Guidance

 


 

 

Crude Oil and Condensate Volumes (MBod)

2Q 2021

2Q 2021
Guidance
Midpoint

Variance

1Q 2021

4Q 2020

3Q 2020

2Q 2020

United States

446.9

441.0

5.9

428.7

442.4

376.6

330.9

Trinidad

1.7

1.9

(0.2)

2.2

2.3

1.0

0.1

Other International

0.0

0.1

(0.1)

0.1

0.1

0.0

0.1

Total

448.6

443.0

5.6

431.0

444.8

377.6

331.1

Natural Gas Liquids Volumes (MBbld)

Total

138.5

132.5

6.0

124.3

141.4

140.1

101.2

Natural Gas Volumes (MMcfd)

United States

1,199

1,160

39

1,100

1,075

1,008

939

Trinidad

233

210

23

217

192

151

174

Other International

13

16

(3)

25

25

31

34

Total

1,445

1,386

59

1,342

1,292

1,190

1,147

 

Total Crude Oil Equivalent Volumes (MBoed)

828.0

806.6

21.4

778.9

801.5

716.0

623.4

Total MMBoe

75.3

73.4

1.9

70.1

73.7

65.9

56.7

 

Benchmark Price

Oil (WTI) ($/Bbl)

66.06

   

57.80

42.67

40.94

27.85

Natural Gas (HH) ($/Mcf)

2.83

   

2.69

2.65

1.94

1.73

 

Crude Oil and Condensate - above (below) WTI ($/Bbl)

United States

0.10

0.25

(0.15)

0.27

(0.81)

(0.75)

(7.45)

Trinidad

(9.80)

(11.50)

1.70

(8.03)

(9.76)

(15.53)

(27.25)

Other International

(10.50)

(8.50)

(2.00)

(19.19)

(6.77)

(15.65)

20.93

 

Natural Gas Liquids - Realizations as % of WTI

44.1%

40.0%

4.1%

48.5%

41.1%

35.0%

36.6%

 

Natural Gas - above (below) NYMEX Henry Hub ($/Mcf)

United States

0.16

(0.20)

0.36

2.83

(0.36)

(0.45)

(0.62)

Natural Gas Realizations ($/Mcf)

Trinidad

3.37

3.35

0.02

3.38

3.57

2.35

2.13

Other International

5.69

5.65

0.04

5.66

5.47

4.73

4.36

 

Total Expenditures (GAAP) ($MM)

1,089

   

1,067

1,107

646

534

Capital Expenditures (non-GAAP) ($MM)

972

1,100

(128)

945

828

499

478

 

Operating Unit Costs ($/Boe)

Lease and Well

3.58

3.80

(0.22)

3.85

3.54

3.45

4.32

Transportation Costs

2.84

2.80

0.04

2.88

2.64

2.74

2.67

General and Administrative

1.59

1.55

0.04

1.57

1.54

1.89

2.32

Gathering and Processing

1.70

1.85

(0.15)

1.98

1.62

1.74

1.71

Cash Operating Costs

9.71

10.00

(0.29)

10.28

9.34

9.82

11.02

Depreciation, Depletion and Amortization

12.13

12.30

(0.17)

12.84

11.81

12.49

12.46

 

Expenses ($MM)

Exploration and Dry Hole

49

45

4

44

40

51

27

Impairment (GAAP)

44

   

44

143

79

305

Impairment (excluding certain impairments (non-GAAP))

43

70

(27)

43

57

52

66

Capitalized Interest

8

8

0

8

7

7

8

Net Interest

45

48

(3)

47

53

53

54

 

Taxes Other Than Income (% of Wellhead Revenue)

6.9%

7.0%

(0.1%)

6.7%

5.1%

7.2%

9.4%

Income Taxes

Effective Rate

19.3%

22.5%

(3.2%)

23.2%

21.1%

19.2%

20.6%

Deferred Ratio

(45%)

8%

(53%)

(18%)

60%

330%

107%

 

Third Quarter and Full-Year 2021 Guidance1

 


 

 

(Unaudited)

See "Endnotes" below for related discussion and definitions.

3Q 2021

Guidance Range

FY 2021

Guidance Range

2020

Actual

2019

Actual

Crude Oil and Condensate Volumes (MBod)

               

United States

440.0

-

447.0

437.0

-

445.0

408.1

455.5

Trinidad

0.5

-

1.5

1.0

-

1.8

1.0

0.6

Other International

0.0

-

0.0

0.0

-

0.2

0.1

0.1

Total

440.5

-

448.5

438.0

-

447.0

409.2

456.2

Natural Gas Liquids Volumes (MBbld)

               

Total

135.0

-

145.0

130.0

-

140.0

136.0

134.1

Natural Gas Volumes (MMcfd)

               

United States

1,150

-

1,250

1,150

-

1,250

1,040

1,069

Trinidad

195

-

225

200

-

230

180

260

Other International

0

-

0

5

-

15

32

37

Total

1,345

-

1,475

1,355

-

1,495

1,252

1,366

Crude Oil Equivalent Volumes (MBoed)

               

United States

766.7

-

800.3

758.7

-

793.3

717.5

767.8

Trinidad

33.0

-

39.0

34.3

-

40.1

30.9

44.0

Other International

0.0

-

0.0

0.8

-

2.7

5.4

6.2

Total

799.7

-

839.3

793.8

-

836.1

753.8

818.0

                 

Benchmark Price

               

Oil (WTI) ($/Bbl)

           

39.40

57.04

Natural Gas (HH) ($/Mcf)

           

2.08

2.62

                 

Crude Oil and Condensate Differentials - above (below) WTI 2 ($/Bbl)

United States

(0.20)

-

0.80

(0.20)

-

0.80

(0.75)

0.70

Trinidad

(8.50)

-

(6.50)

(10.50)

-

(8.50)

(9.20)

(9.88)

Natural Gas Liquids - Realizations as % of WTI

               

Total

45%

-

55%

42%

-

52%

34.0%

28.1%

Natural Gas Differentials - above (below) NYMEX Henry Hub 3 ($/Mcf)

United States

0.10

-

0.50

0.70

-

0.90

(0.47)

(0.40)

Natural Gas Realizations ($/Mcf)

               

Trinidad

3.10

-

3.60

3.10

-

3.60

2.57

2.72

                 

Total Expenditures (GAAP) ($MM)

           

4,113

6,900

Capital Expenditures 4 (non-GAAP) ($MM)

900

-

1,100

3,700

-

4,100

3,490

6,234

                 

Operating Unit Costs ($/Boe)

               

Lease and Well

3.45

-

4.15

3.40

-

4.10

3.85

4.58

Transportation Costs

2.80

-

3.20

2.75

-

3.15

2.66

2.54

General and Administrative

1.75

-

1.85

1.55

-

1.65

1.75

1.64

Gathering and Processing

1.80

-

2.00

1.75

-

1.95

1.66

1.60

Cash Operating Costs

9.80

-

11.20

9.45

-

10.85

9.92

10.36

Depreciation, Depletion and Amortization

11.70

-

12.30

11.70

-

12.70

12.32

12.56

                 

Expenses ($MM)

               

Exploration and Dry Hole

35

-

45

160

-

180

159

168

Impairment (GAAP)

           

2,100

518

Impairment (excluding certain impairments (non-GAAP))

65

-

105

255

-

295

232

243

Capitalized Interest

5

-

10

25

-

30

31

38

Net Interest

42

-

48

180

-

185

205

185

                 

Taxes Other Than Income (% of Wellhead Revenue)

6.0%

-

8.0%

6.5%

-

7.5%

6.6%

6.9%

Income Taxes

               

Effective Rate

21%

-

26%

20%

-

25%

18.2%

22.9%

Deferred Ratio

25%

-

40%

0%

-

15%

54.8%

107.4%

 

Second Quarter 2021 Results Webcast
Thursday, August 5, 2021, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG's website for one year.
https://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 and Trinidad. 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

Endnotes

 

1)

The forecast items for the third quarter and full year 2021 set forth above 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.

   

2)

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.

   

3)

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.

   

4)

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 Transactions.

 

Glossary

 

Acq

Acquisitions

ATROR

After-tax rate of return

Bbl

Barrel

Bn

Billion

Boe

Barrels of oil equivalent

Bopd

Barrels of oil per day

Capex

Capital expenditures

CO2e

Carbon dioxide equivalent

DCF

Discretionary cash flow

DD&A

Depreciation, Depletion and Amortization

Disc

Discoveries

Divest

Divestitures

EPS

Earnings per share

Ext

Extensions

G&A

General and administrative expense

G&P

Gathering and processing expense

GHG

Greenhouse gas

HH

Henry Hub

LOE

Lease operating expense, or lease and well expense

MBbld

Thousand barrels of liquids per day

MBod

Thousand barrels of oil per day

MBoe

Thousand barrels of oil equivalent

MBoed

Thousand barrels of oil equivalent per day

Mcf

Thousand cubic feet of natural gas

MMBoe

Million barrels of oil equivalent

MMcfd

Million cubic feet of natural gas per day

NGLs

Natural gas liquids

OTP

Other than price

NYMEX

U.S. New York Mercantile Exchange

QoQ

Quarter over quarter

Trans

Transportation expense

USD

United States dollar

WTI

West Texas Intermediate

YoY

Year over year

$MM

Million United States dollars

$/Bbl

U.S. Dollars per barrel

$/Boe

U.S. Dollars per barrel of oil equivalent

$/Mcf

U.S. Dollars per thousand cubic feet

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, goals, returns and rates of return, 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," "focused on," "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 and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet goals or ambitions with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, 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 production of crude oil and condensate, natural gas liquids, and natural gas;
  • 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, refining, and export 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 any changes or other actions which may result from the recent U.S. elections and change in U.S. administration and 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 affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and 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 third-party-operated crude oil and natural gas properties are operated successfully and economically;
  • competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
  • the availability and cost of employees and other personnel, facilities, equipment, materials (such as water and tubulars) and services;
  • the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
  • weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression, storage, transportation, and export 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;
  • the duration and economic and financial impact of epidemics, pandemics or other public health issues, including the COVID-19 pandemic;
  • 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, of EOG's Annual Report on Form 10‐K for the fiscal year ended December 31, 2020 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, 2020, 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.

 

Income Statements

In millions of USD, except share data (in millions) and per share data (Unaudited)

 

2Q 2021

 

1Q 2021

 

2Q 2020

 

YTD 2021

 

YTD 2020

Operating Revenues and Other

                 

Crude Oil and Condensate

2,699

   

2,251

   

615

   

4,950

   

2,680

 

Natural Gas Liquids

367

   

314

   

93

   

681

   

254

 

Natural Gas

404

   

625

   

141

   

1,029

   

351

 

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

(427)

   

(367)

   

(127)

   

(794)

   

1,079

 

Gathering, Processing and Marketing

1,022

   

848

   

362

   

1,870

   

1,401

 

Gains (Losses) on Asset Dispositions, Net

51

   

(6)

   

14

   

45

   

30

 

Other, Net

23

   

29

   

5

   

52

   

26

 

Total

4,139

   

3,694

   

1,103

   

7,833

   

5,821

 
                   

Operating Expenses

                 

Lease and Well

270

   

270

   

245

   

540

   

575

 

Transportation Costs

214

   

202

   

152

   

416

   

360

 

Gathering and Processing Costs

128

   

139

   

97

   

267

   

225

 

Exploration Costs

35

   

33

   

27

   

68

   

67

 

Dry Hole Costs

13

   

11

   

   

24

   

 

Impairments

44

   

44

   

305

   

88

   

1,878

 

Marketing Costs

991

   

838

   

444

   

1,829

   

1,554

 

Depreciation, Depletion and Amortization

914

   

900

   

707

   

1,814

   

1,707

 

General and Administrative

120

   

110

   

132

   

230

   

246

 

Taxes Other Than Income

239

   

215

   

81

   

454

   

238

 

Total

2,968

   

2,762

   

2,190

   

5,730

   

6,850

 
                   

Operating Income (Loss)

1,171

   

932

   

(1,087)

   

2,103

   

(1,029)

 

Other Income (Expense), Net

(2)

   

(4)

   

(4)

   

(6)

   

14

 

Income (Loss) Before Interest Expense
   and Income Taxes

1,169

   

928

   

(1,091)

   

2,097

   

(1,015)

 

Interest Expense, Net

45

   

47

   

54

   

92

   

99

 

Income (Loss) Before Income Taxes

1,124

   

881

   

(1,145)

   

2,005

   

(1,114)

 

Income Tax Provision (Benefit)

217

   

204

   

(235)

   

421

   

(214)

 

Net Income (Loss)

907

   

677

   

(910)

   

1,584

   

(900)

 
                   

Dividends Declared per Common Share

1.4125

   

0.4125

   

0.3750

   

1.8250

   

0.7500

 

Net Income (Loss) Per Share

                 

Basic

1.56

   

1.17

   

(1.57)

   

2.73

   

(1.55)

 

Diluted

1.55

   

1.16

   

(1.57)

   

2.72

   

(1.55)

 

Average Number of Common Shares

                 

Basic

580

   

580

   

579

   

580

   

579

 

Diluted

584

   

583

   

579

   

583

   

579

 

 

Wellhead Volumes and Prices

(Unaudited)

 

2Q 2021

 

2Q2020

 

% Change

 

1Q 2021

 

YTD 2021

 

YTD 2020

 

% Change

                           

Crude Oil and Condensate Volumes
    (MBbld) (A)

                     

United States

446.9

   

330.9

   

35

%

 

428.7

   

437.8

   

406.8

   

8

%

Trinidad

1.7

   

0.1

   

1,600

%

 

2.2

   

2.0

   

0.3

   

567

%

Other International (B)

   

0.1

   

-100

%

 

0.1

   

   

0.1

   

-100

%

Total

448.6

   

331.1

   

35

%

 

431.0

   

439.8

   

407.2

   

8

%

                           

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

                         

United States

66.16

   

20.40

   

224

%

 

58.07

   

62.22

   

36.17

   

72

%

Trinidad

56.26

   

0.60

   

9,290

%

 

49.77

   

52.57

   

27.75

   

89

%

Other International (B)

55.56

   

48.78

   

14

%

 

38.61

   

42.36

   

53.41

   

-21

%

Composite

66.12

   

20.40

   

224

%

 

58.02

   

62.18

   

36.16

   

72

%

                           

Natural Gas Liquids Volumes (MBbld) (A)

                         

United States

138.5

   

101.2

   

37

%

 

124.3

   

131.5

   

131.2

   

0

%

Total

138.5

   

101.2

   

37

%

 

124.3

   

131.5

   

131.2

   

0

%

                           

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

                         

United States

29.15

   

10.20

   

186

%

 

28.03

   

28.62

   

10.65

   

169

%

Composite

29.15

   

10.20

   

186

%

 

28.03

   

28.62

   

10.65

   

169

%

                           

Natural Gas Volumes (MMcfd) (A)

                         

United States

1,199

   

939

   

28

%

 

1,100

   

1,150

   

1,039

   

11

%

Trinidad

233

   

174

   

34

%

 

217

   

225

   

188

   

20

%

Other International (B)

13

   

34

   

-62

%

 

25

   

19

   

35

   

-46

%

Total

1,445

   

1,147

   

26

%

 

1,342

   

1,394

   

1,262

   

10

%

                           

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

                         

United States

2.99

   

1.11

   

170

%

 

5.52

   

4.19

   

1.32

   

217

%

Trinidad

3.37

   

2.13

   

58

%

 

3.38

   

3.37

   

2.15

   

57

%

Other International (B)

5.69

   

4.36

   

31

%

 

5.66

   

5.67

   

4.34

   

31

%

Composite

3.07

   

1.36

   

126

%

 

5.17

   

4.08

   

1.53

   

167

%

                           

Crude Oil Equivalent Volumes (MBoed) (D)

                         

United States

785.2

   

588.5

   

33

%

 

736.4

   

761.0

   

711.1

   

7

%

Trinidad

40.6

   

29.2

   

39

%

 

38.5

   

39.5

   

31.6

   

25

%

Other International (B)

2.2

   

5.7

   

-61

%

 

4.0

   

3.1

   

6.1

   

-49

%

Total

828.0

   

623.4

   

33

%

 

778.9

   

803.6

   

748.8

   

7

%

                           

Total MMBoe (D)

75.3

   

56.7

   

33

%

 

70.1

   

145.4

   

136.3

   

7

%

 

(A)

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

(B)

Other International includes EOG's China and Canada operations.  The China operations were sold in the second quarter of 2021.

(C)

Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021).

(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.

 

Balance Sheets

In millions of USD, except share data (Unaudited)

 

June 30,

 

December 31,

 

2021

 

2020

Current Assets

     

Cash and Cash Equivalents

3,880

   

3,329

 

Accounts Receivable, Net

2,015

   

1,522

 

Inventories

516

   

629

 

Assets from Price Risk Management Activities

   

65

 

Income Taxes Receivable

11

   

23

 

Other

513

   

294

 

Total

6,935

   

5,862

 
 

Property, Plant and Equipment

     

Oil and Gas Properties (Successful Efforts Method)

66,299

   

64,793

 

Other Property, Plant and Equipment

4,635

   

4,479

 

Total Property, Plant and Equipment

70,934

   

69,272

 

Less:  Accumulated Depreciation, Depletion and Amortization

(42,275)

   

(40,673)

 

Total Property, Plant and Equipment, Net

28,659

   

28,599

 

Deferred Income Taxes

3

   

2

 

Other Assets

1,288

   

1,342

 

Total Assets

36,885

   

35,805

 
 

Current Liabilities

     

Accounts Payable

2,012

   

1,681

 

Accrued Taxes Payable

286

   

206

 

Dividends Payable

820

   

217

 

Liabilities from Price Risk Management Activities

396

   

 

Current Portion of Long-Term Debt

39

   

781

 

Current Portion of Operating Lease Liabilities

253

   

295

 

Other

196

   

280

 

Total

4,002

   

3,460

 
       

Long-Term Debt

5,086

   

5,035

 

Other Liabilities

2,186

   

2,149

 

Deferred Income Taxes

4,730

   

4,859

 

Commitments and Contingencies

     
       

Stockholders' Equity

     

Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 584,102,233
    Shares Issued at June 30, 2021 and 583,694,850 Shares Issued at December
    31, 2020

206

   

206

 

Additional Paid in Capital

6,017

   

5,945

 

Accumulated Other Comprehensive Loss

(15)

   

(12)

 

Retained Earnings

14,689

   

14,170

 

Common Stock Held in Treasury, 243,058 Shares at June 30, 2021 and 124,265
    Shares at December 31, 2020

(16)

   

(7)

 

Total Stockholders' Equity

20,881

   

20,302

 

Total Liabilities and Stockholders' Equity

36,885

   

35,805

 

 

Cash Flows Statements

In millions of USD (Unaudited)

 

2Q 2021

 

2Q 2020

 

1Q 2021

 

YTD 2021

 

YTD 2020

Cash Flows from Operating Activities

                 

Reconciliation of Net Income (Loss) to Net Cash Provided
    by Operating Activities:

                 

Net Income (Loss)

907

   

(910)

   

677

   

1,584

   

(900)

 

Items Not Requiring (Providing) Cash

                 

Depreciation, Depletion and Amortization

914

   

707

   

900

   

1,814

   

1,707

 

Impairments

44

   

305

   

44

   

88

   

1,878

 

Stock-Based Compensation Expenses

31

   

40

   

35

   

66

   

80

 

Deferred Income Taxes

(97)

   

(253)

   

(36)

   

(133)

   

(208)

 

(Gains) Losses on Asset Dispositions, Net

(51)

   

(14)

   

6

   

(45)

   

(30)

 

Other, Net

6

   

9

   

7

   

13

   

 

Dry Hole Costs

13

   

   

11

   

24

   

 

Mark-to-Market Commodity Derivative Contracts

                 

Total (Gains) Losses

427

   

127

   

367

   

794

   

(1,079)

 

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

(193)

   

640

   

(30)

   

(223)

   

724

 

Other, Net

   

   

1

   

1

   

 

Changes in Components of Working Capital and Other
    Assets and Liabilities

                 

Accounts Receivable

(186)

   

469

   

(308)

   

(494)

   

1,191

 

Inventories

37

   

(18)

   

64

   

101

   

85

 

Accounts Payable

11

   

(1,619)

   

172

   

183

   

(1,185)

 

Accrued Taxes Payable

(163)

   

(6)

   

243

   

80

   

(61)

 

Other Assets

(119)

   

195

   

(103)

   

(222)

   

253

 

Other Liabilities

32

   

2

   

(89)

   

(57)

   

(64)

 

Changes in Components of Working Capital Associated
    with Investing Activities

(54)

   

414

   

(91)

   

(145)

   

282

 

Net Cash Provided by Operating Activities

1,559

   

88

   

1,870

   

3,429

   

2,673

 

Investing Cash Flows

                 

Additions to Oil and Gas Properties

(968)

   

(424)

   

(875)

   

(1,843)

   

(1,990)

 

Additions to Other Property, Plant and Equipment

(55)

   

(24)

   

(42)

   

(97)

   

(147)

 

Proceeds from Sales of Assets

141

   

17

   

5

   

146

   

43

 

Changes in Components of Working Capital Associated
    with Investing Activities

54

   

(414)

   

91

   

145

   

(282)

 

Net Cash Used in Investing Activities

(828)

   

(845)

   

(821)

   

(1,649)

   

(2,376)

 

Financing Cash Flows

                 

Long-Term Debt Borrowings

   

1,484

   

   

   

1,484

 

Long-Term Debt Repayments

   

(1,000)

   

(750)

   

(750)

   

(1,000)

 

Dividends Paid

(239)

   

(217)

   

(219)

   

(458)

   

(384)

 

Treasury Stock Purchased

(2)

   

   

(10)

   

(12)

   

(5)

 

Proceeds from Stock Options Exercised and Employee
    Stock Purchase Plan

9

   

8

   

   

9

   

8

 

Debt Issuance Costs

   

(3)

   

   

   

(3)

 

Repayment of Finance Lease Liabilities

(9)

   

(5)

   

(9)

   

(18)

   

(8)

 

Net Cash Provided by (Used in) Financing Activities

(241)

   

267

   

(988)

   

(1,229)

   

92

 

Effect of Exchange Rate Changes on Cash

2

   

   

(2)

   

   

 

Increase (Decrease)  in Cash and Cash Equivalents

492

   

(490)

   

59

   

551

   

389

 

Cash and Cash Equivalents at Beginning of Period

3,388

   

2,907

   

3,329

   

3,329

   

2,028

 

Cash and Cash Equivalents at End of Period

3,880

   

2,417

   

3,388

   

3,880

   

2,417

 

 

Non-GAAP Financial Measures

 

To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles in the United States of America (GAAP), EOG's quarterly earnings releases and related conference calls, accompanying investor presentation slides and presentation slides for investor conferences contain certain financial measures that are not prepared or presented in accordance with GAAP.   These non-GAAP financial measures may include, but are not limited to, Adjusted Net Income (Loss), Discretionary Cash Flow, Free Cash Flow, Adjusted EBITDAX, Net Debt and related statistics.

 

A reconciliation of each of these measures to their most directly comparable GAAP financial measure and related discussion is included in the tables on the following pages and can also be found in the "Reconciliations & Guidance" section of the "Investors" page of the EOG website at www.eogresources.com.

 

As further discussed in the tables on the following pages, EOG believes these measures may be useful to investors who follow the practice of some industry analysts who make certain adjustments to GAAP measures (for example, to exclude non-recurring items) to facilitate comparisons to others in EOG's industry, and who utilize non-GAAP measures in their calculations of certain statistics (for example, return on capital employed and return on equity) used to evaluate EOG's performance.

 

EOG believes that the non-GAAP measures presented, when viewed in combination with its financial and operating results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the company's performance. As is discussed in the tables on the following pages, EOG uses these non-GAAP measures for purposes of (i) comparing EOG's financial and operating performance with the financial and operating performance of other companies in the industry and (ii) analyzing EOG's financial and operating performance across periods.

 

The non-GAAP measures presented should not be considered in isolation, and should not be considered as a substitute for, or as an alternative to, EOG's reported Net Income (Loss), Long-Term Debt (including Current Portion of Long-Term Debt), Net Cash Provided by Operating Activities and other financial results calculated in accordance with GAAP. The non-GAAP measures presented should be read in conjunction with EOG's consolidated financial statements prepared in accordance with GAAP.

 

In addition, because not all companies use identical calculations, EOG's presentation of non-GAAP measures may not be comparable to, and may be calculated differently from, similarly titled measures disclosed by other companies, including its peer companies. EOG may also change the calculation of one or more of its non-GAAP measures from time to time – for example, to account for changes in its business and operations or to more closely conform to peer company or industry analysts' practices.

 

Adjusted Net Income (Loss)

In millions of USD, except share data (in millions) and per share data (Unaudited)

               

The following tables adjust the reported Net Income (Loss) (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions, to add back impairment charges related to certain of EOG's assets (which are generally (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets) - see "Revenues, Costs and Margins Per Barrel of Oil Equivalent" below for additional related discussion) and to make certain other adjustments to exclude non-recurring and certain other items as further described below.  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.

               
 

2Q 2021

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Income (GAAP)

1,124

   

(217)

   

907

   

1.55

 

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

427

   

(93)

   

334

   

0.58

 

Net Cash Payments for Settlements of Commodity Derivative Contracts

(193)

   

42

   

(151)

   

(0.26)

 

Less: Gains on Asset Dispositions, Net

(51)

   

17

   

(34)

   

(0.06)

 

Add: Certain Impairments

1

   

   

1

   

 

Less: Tax Benefits Related to Exiting Canada Operations

   

(45)

   

(45)

   

(0.08)

 

Adjustments to Net Income

184

   

(79)

   

105

   

0.18

 
               

Adjusted Net Income (Non-GAAP)

1,308

   

(296)

   

1,012

   

1.73

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

580

 

Diluted

           

584

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

580

 

Diluted

           

584

 
                 
                 

Adjusted Net Income (Loss)

(Continued)

In millions of USD, except share data (in millions) and per share data (Unaudited)

 

2Q 2020

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Loss (GAAP)

(1,145)

   

235

   

(910)

   

(1.57)

 

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

127

   

(29)

   

98

   

0.17

 

Net Cash Received from Settlements of Commodity Derivative Contracts

640

   

(141)

   

499

   

0.86

 

Less: Gains on Asset Dispositions, Net

(14)

   

4

   

(10)

   

(0.02)

 

Add: Certain Impairments

239

   

(47)

   

192

   

0.33

 

Adjustments to Net Loss

992

   

(213)

   

779

   

1.34

 
               

Adjusted Net Loss (Non-GAAP)

(153)

   

22

   

(131)

   

(0.23)

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

579

 

Diluted

           

579

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

579

 

Diluted

           

579

 
                 
                 

Adjusted Net Income (Loss)

(Continued)

In millions of USD, except share data (in millions) and per share data (Unaudited)

 

1Q 2021

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Income (GAAP)

881

   

(204)

   

677

   

1.16

 

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

367

   

(81)

   

286

   

0.49

 

Net Cash Payments for Settlements of Commodity Derivative Contracts

(30)

   

7

   

(23)

   

(0.04)

 

Add: Losses on Asset Dispositions, Net

6

   

(1)

   

5

   

0.01

 

Add: Certain Impairments

1

   

   

1

   

 

Adjustments to Net Income

344

   

(75)

   

269

   

0.46

 
               

Adjusted Net Income (Non-GAAP)

1,225

   

(279)

   

946

   

1.62

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

580

 

Diluted

           

583

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

580

 

Diluted

           

583

 
                 
                 

Adjusted Net Income (Loss)

(Continued)

In millions of USD, except share data (in millions) and per share data (Unaudited)

 

YTD 2021

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Income (GAAP)

2,005

   

(421)

   

1,584

   

2.72

 

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

794

   

(174)

   

620

   

1.07

 

Net Cash Payments for Settlements of Commodity Derivative Contracts

(223)

   

49

   

(174)

   

(0.30)

 

Less: Gains on Asset Dispositions, Net

(45)

   

16

   

(29)

   

(0.05)

 

Add: Certain Impairments

2

   

   

2

   

 

Less: Tax Benefits Related to Exiting Canada Operations

   

(45)

   

(45)

   

(0.08)

 

Adjustments to Net Income

528

   

(154)

   

374

   

0.64

 
               

Adjusted Net Income (Non-GAAP)

2,533

   

(575)

   

1,958

   

3.36

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

580

 

Diluted

           

583

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

580

 

Diluted

           

583

 
                 
                 

Adjusted Net Income (Loss)

(Continued)

In millions of USD, except share data (in millions) and per share data (Unaudited)

             
 

YTD 2020

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Loss (GAAP)

(1,114)

   

214

   

(900)

   

(1.55)

 

Adjustments:

             

Gains on Mark-to-Market Commodity Derivative Contracts

(1,079)

   

236

   

(843)

   

(1.47)

 

Net Cash Received from Settlements of Commodity Derivative Contracts

724

   

(159)

   

565

   

0.98

 

Less: Gains on Asset Dispositions, Net

(30)

   

7

   

(23)

   

(0.04)

 

Add: Certain Impairments

1,755

   

(367)

   

1,388

   

2.40

 

Adjustments to Net Loss

1,370

   

(283)

   

1,087

   

1.87

 
               

Adjusted Net Income (Non-GAAP)

256

   

(69)

   

187

   

0.32

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

579

 

Diluted

           

579

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

579

 

Diluted

           

580

 

 

Adjusted Net Income Per Share

In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)

         

1Q 2021 Adjusted Net Income per Share (Non-GAAP)

   

1.62

 
       

Realized Price

     

2Q 2021 Composite Average Wellhead Revenue per Boe

46.07

     

Less:  1Q 2021 Composite Average Welhead Revenue per Boe

(45.49)

     

Subtotal

0.58

     

Multiplied by: 2Q 2021 Crude Oil Equivalent Volumes (MMBoe)

75.3

     

Total Change in Revenue

44

     

Less: Income Tax Benefit (Cost) Imputed (based on 23%)

(10)

     

Change in Net Income

34

     

Change in Diluted Earnings per Share

   

0.06

 
       

Net Cash Received (Paid) from Settlements of Commodity Derivative Contracts

     

2Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative
    Contracts

(193)

     

Less:  Income Tax Benefit (Cost)

42

     

After Tax - (a)

(151)

     

1Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative Contracts

(30)

     

Less:  Income Tax Benefit (Cost)

7

     

After Tax - (b)

(23)

     

Change in Net Income - (a) - (b)

(128)

     

Change in Diluted Earnings per Share

   

(0.22)

 
       

Wellhead Volumes

     

2Q 2021 Crude Oil Equivalent Volumes (MMBoe)

75.3

     

Less:  1Q 2021 Crude Oil Equivalent Volumes (MMBoe)

(70.1)

     

Subtotal

5.2

     

Multiplied by:  2Q 2021 Composite Average Margin per Boe (Including Total
   
Exploration Costs) (Non-GAAP) (refer to "Revenues, Costs and Margins Per Barrel
    of Oil Equivalent" schedule)

19.25

     

Change in Revenue

101

     

Less:  Income Tax Benefit (Cost) Imputed (based on 23%)

(23)

     

Change in Net Income

78

     

Change in Diluted Earnings per Share

   

0.13

 
       

Operating Cost per Boe

     

1Q 2021 Total Operating Cost per Boe (including Total Exploration Costs) (Non-
    GAAP) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
    schedule)

28.11

     

Less:  2Q 2021 Total Operating Cost per Boe (including Total Exploration Costs)
    (Non-GAAP) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
    schedule)

(26.82)

     

Subtotal

1.29

     

Multiplied by:  2Q 2021 Crude Oil Equivalent Volumes (MMBoe)

75.3

     

Change in Before-Tax Net Income

97

     

Less:  Income Tax Benefit (Cost) Imputed (based on 23%)

(22)

     

Change in Net Income

75

     

Change in Diluted Earnings per Share

   

0.13

 
       

Other Items

   

0.01

 
       

2Q 2021 Adjusted Net Income per Share (Non-GAAP)

   

1.73

 
       

2Q 2021 Average Number of Common Shares (Non-GAAP) - Diluted

584

     

 

Discretionary Cash Flow and Free Cash Flow

In millions of USD (Unaudited)

                 
                   

The following tables reconcile 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), Changes in Components of Working Capital and Other Assets and Liabilities, Changes in Components of Working Capital Associated with Investing and Financing Activities and certain other adjustments to exclude non-recurring and certain other items as further described below.  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.  EOG management uses this information for comparative purposes within the industry.

                   
 

2Q 2021

 

1Q 2021

 

2Q 2020

 

YTD 2021

 

YTD 2020

                   

Net Cash Provided by Operating Activities (GAAP)

1,559

   

1,870

   

88

   

3,429

   

2,673

 
                   

Adjustments:

                 

Exploration Costs (excluding Stock-Based
    Compensation Expenses)

29

   

28

   

21

   

57

   

53

 

Changes in Components of Working Capital and
    Other Assets and Liabilities

                 

Accounts Receivable

186

   

308

   

(469)

   

494

   

(1,191)

 

Inventories

(37)

   

(64)

   

18

   

(101)

   

(85)

 

Accounts Payable

(11)

   

(172)

   

1,619

   

(183)

   

1,185

 

Accrued Taxes Payable

163

   

(243)

   

6

   

(80)

   

61

 

Other Assets

119

   

103

   

(195)

   

222

   

(253)

 

Other Liabilities

(32)

   

89

   

(2)

   

57

   

64

 

Changes in Components of Working Capital
    Associated with Investing Activities

54

   

91

   

(414)

   

145

   

(282)

 

Other Non-Current Income Taxes - Net Receivable

   

   

   

   

113

 

Discretionary Cash Flow (Non-GAAP)

2,030

   

2,010

   

672

   

4,040

   

2,338

 
                   

Discretionary Cash Flow (Non-GAAP) - Percentage Increase

202

%

         

73

%

   
                   

Discretionary Cash Flow (Non-GAAP)

2,030

   

2,010

   

672

   

4,040

   

2,338

 

Less:

                 

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

(972)

   

(945)

   

(478)

   

(1,917)

   

(2,163)

 

Free Cash Flow (Non-GAAP)

1,058

   

1,065

   

194

   

2,123

   

175

 
                   
                   

(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP):

                   
 

2Q 2021

 

1Q 2021

 

2Q 2020

 

YTD 2021

 

YTD 2020

                   

Total Expenditures (GAAP)

1,089

   

1,067

   

534

   

2,156

   

2,360

 

Less:

                 

Asset Retirement Costs

(31)

   

(17)

   

(5)

   

(48)

   

(25)

 

Non-Cash Expenditures of Other Property, Plant and
    Equipment

   

   

   

   

 

Non-Cash Acquisition Costs of Unproved Properties

   

(22)

   

(24)

   

(22)

   

(48)

 

Non-Cash Finance Leases

   

(74)

   

(24)

   

(74)

   

(73)

 

Acquisition Costs of Proved Properties

(86)

   

(9)

   

(3)

   

(95)

   

(51)

 

Total Cash Capital Expenditures Before Acquisitions

    (Non-GAAP)

972

   

945

   

478

   

1,917

   

2,163

 

 

Discretionary Cash Flow and Free Cash Flow

(Continued)

In millions of USD (Unaudited)

             
               
 

FY 2020

 

FY 2019

 

FY 2018

 

FY 2017

               

Net Cash Provided by Operating Activities (GAAP)

5,008

   

8,163

   

7,769

   

4,265

 
               

Adjustments:

             

Exploration Costs (excluding Stock-Based Compensation Expenses)

126

   

113

   

125

   

122

 

Changes in Components of Working Capital and Other Assets and
    Liabilities

             

Accounts Receivable

(467)

   

92

   

368

   

392

 

Inventories

(123)

   

(90)

   

395

   

175

 

Accounts Payable

795

   

(169)

   

(439)

   

(324)

 

Accrued Taxes Payable

49

   

(40)

   

92

   

64

 

Other Assets

(325)

   

(358)

   

125

   

659

 

Other Liabilities

(8)

   

57

   

(11)

   

90

 

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

(75)

   

115

   

(301)

   

(90)

 

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

113

   

239

   

149

   

(513)

 

Discretionary Cash Flow (Non-GAAP)

5,093

   

8,122

   

8,272

   

4,840

 
               

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

-37

%

 

-2

%

 

71

%

 

76

%

               

Discretionary Cash Flow (Non-GAAP)

5,093

   

8,122

   

8,272

   

4,840

 

Less:

             

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

(3,490)

   

(6,234)

   

(6,172)

   

(4,228)

 

Free Cash Flow (Non-GAAP)

1,603

   

1,888

   

2,100

   

612

 
               

(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP):

               

Total Expenditures (GAAP)

4,113

   

6,900

   

6,706

   

4,613

 

Less:

             

Asset Retirement Costs

(117)

   

(186)

   

(70)

   

(56)

 

Non-Cash Expenditures of Other Property, Plant and Equipment

   

(2)

   

(1)

   

 

Non-Cash Acquisition Costs of Unproved Properties

(197)

   

(98)

   

(291)

   

(256)

 

Non-Cash Finance Leases

(174)

   

   

(48)

   

 

Acquisition Costs of Proved Properties

(135)

   

(380)

   

(124)

   

(73)

 

Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)

3,490

   

6,234

   

6,172

   

4,228

 

 

Discretionary Cash Flow and Free Cash Flow

(Continued)

In millions of USD (Unaudited)

                 
                   
 

FY 2016

 

FY 2015

 

FY 2014

 

FY 2013

 

FY 2012

                   

Net Cash Provided by Operating Activities (GAAP)

2,359

   

3,595

   

8,649

   

7,329

   

5,237

 
                   

Adjustments:

                 

Exploration Costs (excluding Stock-Based Compensation
    Expenses)

104

   

124

   

158

   

134

   

158

 

Changes in Components of Working Capital and Other
    Assets and Liabilities

                 

Accounts Receivable

233

   

(641)

   

(85)

   

24

   

179

 

Inventories

(171)

   

(58)

   

162

   

(53)

   

157

 

Accounts Payable

74

   

1,409

   

(544)

   

(179)

   

17

 

Accrued Taxes Payable

(93)

   

(12)

   

(16)

   

(75)

   

(78)

 

Other Assets

41

   

(118)

   

14

   

110

   

119

 

Other Liabilities

16

   

66

   

(75)

   

20

   

(36)

 

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

156

   

(500)

   

103

   

51

   

(74)

 

Excess Tax Benefits from Stock-Based Compensation

30

   

26

   

99

   

56

   

67

 

Discretionary Cash Flow (Non-GAAP)

2,749

   

3,891

   

8,465

   

7,417

   

5,746

 
                   

Discretionary Cash Flow (Non-GAAP) - Percentage Increase

    (Decrease)

-29

%

 

-54

%

 

14

%

 

29

%

   
                   

Discretionary Cash Flow (Non-GAAP)

2,749

   

3,891

   

8,465

   

7,417

   

5,746

 

Less:

                 

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

(2,706)

   

(4,682)

   

(8,292)

   

(7,102)

   

(7,540)

 

Free Cash Flow (Non-GAAP)

43

   

(791)

   

173

   

315

   

(1,794)

 
                   

(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP):

                   

Total Expenditures (GAAP)

6,554

   

5,216

   

8,632

   

7,361

   

7,754

 

Less:

                 

Asset Retirement Costs

20

   

(53)

   

(196)

   

(134)

   

(127)

 

Non-Cash Expenditures of Other Property, Plant and
    Equipment

(17)

   

   

   

   

(66)

 

Non-Cash Acquisition Costs of Unproved Properties

(3,102)

   

   

(5)

   

(5)

   

(20)

 

Acquisition Costs of Proved Properties

(749)

   

(481)

   

(139)

   

(120)

   

(1)

 

Total Cash Capital Expenditures Before Acquisitions (Non-

    GAAP)

2,706

   

4,682

   

8,292

   

7,102

   

7,540

 

 

Total Expenditures

In millions of USD (Unaudited)

                     
                       
 

2Q 2021

 

2Q 2020

 

FY 2020

 

FY 2019

 

FY 2018

 

FY 2017

                       

Exploration and Development Drilling

711

   

381

   

2,664

   

4,951

   

4,935

   

3,132

 

Facilities

105

   

31

   

347

   

629

   

625

   

575

 

Leasehold Acquisitions

46

   

30

   

265

   

276

   

488

   

427

 

Property Acquisitions

86

   

3

   

135

   

380

   

124

   

73

 

Capitalized Interest

7

   

8

   

31

   

38

   

24

   

27

 

Subtotal

955

   

453

   

3,442

   

6,274

   

6,196

   

4,234

 

Exploration Costs

35

   

27

   

146

   

140

   

149

   

145

 

Dry Hole Costs

13

   

   

13

   

28

   

5

   

5

 

Exploration and Development Expenditures

1,003

   

480

   

3,601

   

6,442

   

6,350

   

4,384

 

Asset Retirement Costs

31

   

5

   

117

   

186

   

70

   

56

 

Total Exploration and Development Expenditures

1,034

   

485

   

3,718

   

6,628

   

6,420

   

4,440

 

Other Property, Plant and Equipment

55

   

49

   

395

   

272

   

286

   

173

 

Total Expenditures

1,089

   

534

   

4,113

   

6,900

   

6,706

   

4,613

 

 

EBITDAX and Adjusted EBITDAX

In millions of USD (Unaudited)

           
             

The following table adjusts the reported Net Income (Loss) (GAAP) to Earnings Before Interest Expense, Net, Income Taxes (Income Tax Provision (Benefit)), 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) Losses 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 (Loss) (GAAP) to add back Interest Expense (Net), Income Taxes (Income Tax Provision (Benefit)), 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.

             
 

2Q 2021

 

2Q 2020

 

YTD 2021

 

YTD 2020

             

Net Income (Loss) (GAAP)

907

 

(910)

   

1,584

   

(900)

 
             

Adjustments:

           

Interest Expense, Net

45

 

54

   

92

   

99

 

Income Tax Provision (Benefit)

217

 

(235)

   

421

   

(214)

 

Depreciation, Depletion and Amortization

914

 

707

   

1,814

   

1,707

 

Exploration Costs

35

 

27

   

68

   

67

 

Dry Hole Costs

13

 

   

24

   

 

Impairments

44

 

305

   

88

   

1,878

 

EBITDAX (Non-GAAP)

2,175

 

(52)

   

4,091

   

2,637

 

(Gains) Losses on MTM Commodity Derivative Contracts

427

 

127

   

794

   

(1,079)

 

Net Cash Received from (Payments for) Settlements of Commodity

    Derivative Contracts

(193)

 

640

   

(223)

   

724

 

Gains on Asset Dispositions, Net

(51)

 

(14)

   

(45)

   

(30)

 
             

Adjusted EBITDAX (Non-GAAP)

2,358

 

701

   

4,617

   

2,252

 
             

Adjusted EBITDAX (Non-GAAP) - Percentage Increase

236

%

   

105

%

   
             

Definitions

           

EBITDAX - Earnings Before Interest Expense, Net; Income Tax Provision (Benefit); Depreciation, Depletion and Amortization; Exploration Costs; Dry Hole Costs; and Impairments

 

Net Debt-to-Total Capitalization Ratio

In millions of USD, except ratio data (Unaudited)

     
       

The following tables reconcile Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation.  A portion of the cash is associated with international subsidiaries; tax considerations may impact debt paydown.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt and Total Capitalization (Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation.  EOG management uses this information for comparative purposes within the industry.

       
 

June 30,

2021

 

March 31,

2021

       

Total Stockholders' Equity - (a)

20,881

   

20,762

 
       

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

5,125

   

5,133

 

Less: Cash

(3,880)

   

(3,388)

 

Net Debt (Non-GAAP) - (c)

1,245

   

1,745

 
       

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

26,006

   

25,895

 
       

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

22,126

   

22,507

 
       

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

19.7

%

 

19.8

%

       

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

5.6

%

 

7.8

%

 

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)

             
               
 

December 31,

2020

 

September 30,

2020

 

June 30,

2020

 

March 31,

2020

               

Total Stockholders' Equity - (a)

20,302

   

20,148

   

20,388

   

21,471

 
               

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

5,816

   

5,721

   

5,724

   

5,222

 

Less: Cash

(3,329)

   

(3,066)

   

(2,417)

   

(2,907)

 

Net Debt (Non-GAAP) - (c)

2,487

   

2,655

   

3,307

   

2,315

 
               

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

26,118

   

25,869

   

26,112

   

26,693

 
               

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

22,789

   

22,803

   

23,695

   

23,786

 
               

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

22.3

%

 

22.1

%

 

21.9

%

 

19.6

%

               

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

10.9

%

 

11.6

%

 

14.0

%

 

9.7

%

                       
                       

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)

             
 

December 31,

2019

 

September 30,

2019

 

June 30,

2019

 

March 31,

2019

               

Total Stockholders' Equity - (a)

21,641

   

21,124

   

20,630

   

19,904

 
               

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

5,175

   

5,177

   

5,179

   

6,081

 

Less: Cash

(2,028)

   

(1,583)

   

(1,160)

   

(1,136)

 

Net Debt (Non-GAAP) - (c)

3,147

   

3,594

   

4,019

   

4,945

 
               

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

26,816

   

26,301

   

25,809

   

25,985

 
               

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

24,788

   

24,718

   

24,649

   

24,849

 
               

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

19.3

%

 

19.7

%

 

20.1

%

 

23.4

%

               

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

12.7

%

 

14.5

%

 

16.3

%

 

19.9

%

                       
                       

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)

           
 

December 31,

2018

 

September 30,

2018

 

June 30,

2018

 

March 31,

2018

               

Total Stockholders' Equity - (a)

19,364

   

18,538

   

17,452

   

16,841

 
               

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

6,083

   

6,435

   

6,435

   

6,435

 

Less: Cash

(1,556)

   

(1,274)

   

(1,008)

   

(816)

 

Net Debt (Non-GAAP) - (c)

4,527

   

5,161

   

5,427

   

5,619

 
               

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

25,447

   

24,973

   

23,887

   

23,276

 
               

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

23,891

   

23,699

   

22,879

   

22,460

 
               

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

23.9

%

 

25.8

%

 

26.9

%

 

27.6

%

               

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

18.9

%

 

21.8

%

 

23.7

%

 

25.0

%

                       
                       

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)

           
 

December 31,

2017

 

September 30,

2017

 

June 30,

2017

 

March 31,

2017

               

Total Stockholders' Equity - (a)

16,283

   

13,922

   

13,902

   

13,928

 
               

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

6,387

   

6,387

   

6,987

   

6,987

 

Less: Cash

(834)

   

(846)

   

(1,649)

   

(1,547)

 

Net Debt (Non-GAAP) - (c)

5,553

   

5,541

   

5,338

   

5,440

 
               

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

22,670

   

20,309

   

20,889

   

20,915

 
               

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

21,836

   

19,463

   

19,240

   

19,368

 
               

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

28.2

%

 

31.4

%

 

33.4

%

 

33.4

%

               

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

25.4

%

 

28.5

%

 

27.7

%

 

28.1

%

 

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)

               
 

December 31,

2016

 

September 30,

2016

 

June 30,

2016

 

March 31,

2016

 

December 31,

2015

                   

Total Stockholders' Equity - (a)

13,982

   

11,798

   

12,057

   

12,405

   

12,943

 
                   

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

6,986

   

6,986

   

6,986

   

6,986

   

6,660

 

Less: Cash

(1,600)

   

(1,049)

   

(780)

   

(668)

   

(719)

 

Net Debt (Non-GAAP) - (c)

5,386

   

5,937

   

6,206

   

6,318

   

5,941

 
                   

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

20,968

   

18,784

   

19,043

   

19,391

   

19,603

 
                   

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

19,368

   

17,735

   

18,263

   

18,723

   

18,884

 
                   

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

33.3

%

 

37.2

%

 

36.7

%

 

36.0

%

 

34.0

%

                   

Net Debt-to-Total Capitalization (Non-GAAP) - (c) /

    [(a) + (c)]

27.8

%

 

33.5

%

 

34.0

%

 

33.7

%

 

31.5

%

 

Reserve Replacement Cost Data

In millions of USD, except reserves and ratio data (Unaudited)

           
                           

The following table 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 (and the non-GAAP measures used in calculating such statistics) provide management and investors with an indication of the results of the current year capital investment program.  Reserve Replacement Cost statistics (and the non-GAAP measures used in calculating such 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.

                           
 

2020

 

2019

 

2018

 

2017

 

2016

 

2015

 

2014

                           

Total Costs Incurred in Exploration and

    Development Activities (GAAP)

3,718

   

6,628

   

6,420

   

4,440

   

6,445

   

4,928

   

7,905

 

Less:  Asset Retirement Costs

(117)

   

(186)

   

(70)

   

(56)

   

20

   

(53)

   

(196)

 

Non-Cash Acquisition Costs of
    Unproved Properties

(197)

   

(98)

   

(291)

   

(256)

   

(3,102)

   

   

 

Acquisition Costs of Proved
    Properties

(135)

   

(380)

   

(124)

   

(73)

   

(749)

   

(481)

   

(139)

 

Total Exploration and Development

    Expenditures for Drilling Only (Non-

    GAAP) - (a)

3,269

   

5,964

   

5,935

   

4,055

   

2,614

   

4,394

   

7,570

 
                           

Total Costs Incurred in Exploration and

    Development Activities (GAAP)

3,718

   

6,628

   

6,420

   

4,440

   

6,445

   

4,928

   

7,905

 

Less:  Asset Retirement Costs

(117)

   

(186)

   

(70)

   

(56)

   

20

   

(53)

   

(196)

 

Non-Cash Acquisition Costs of
    Unproved Properties

(197)

   

(98)

   

(291)

   

(256)

   

(3,102)

   

   

 

Non-Cash Acquisition Costs of
    Proved Properties

(15)

   

(52)

   

(71)

   

(26)

   

(732)

   

   

 

Total Exploration and Development

    Expenditures (Non-GAAP) - (b)

3,389

   

6,292

   

5,988

   

4,102

   

2,631

   

4,875

   

7,709

 
                           

Net Proved Reserve Additions From All

    Sources - Oil Equivalents (MMBoe)

                         

Revisions Due to Price - (c)

(278)

   

(60)

   

35

   

154

   

(101)

   

(574)

   

52

 

Revisions Other Than Price

(89)

   

   

(40)

   

48

   

253

   

107

   

49

 

Purchases in Place

10

   

17

   

12

   

2

   

42

   

56

   

14

 

Extensions, Discoveries and Other

    Additions - (d)

564

   

750

   

670

   

421

   

209

   

246

   

519

 

Total Proved Reserve Additions - (e)

207

   

707

   

677

   

625

   

403

   

(165)

   

634

 

Sales in Place

(31)

   

(5)

   

(11)

   

(21)

   

(168)

   

(4)

   

(36)

 

Net Proved Reserve Additions From All

Sources

176

   

702

   

666

   

604

   

235

   

(169)

   

598

 
                           

Production

285

   

301

   

265

   

224

   

206

   

210

   

220

 
                           
 

2020

 

2019

 

2018

 

2017

 

2016

 

2015

 

2014

Reserve Replacement Costs ($ / Boe)

                         

Total Drilling, Before Revisions - (a / d)

5.79

   

7.95

   

8.86

   

9.64

   

12.51

   

17.87

   

14.58

 

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

16.32

   

8.90

   

8.85

   

6.56

   

6.52

   

(29.63)

   

12.16

 

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

6.98

   

8.21

   

9.33

   

8.71

   

5.22

   

11.91

   

13.25

 

 

Definitions

 

$/Boe

U.S. Dollars per barrel of oil equivalent

MMBoe

Million barrels of oil equivalent

 

Financial Commodity Derivative Contracts

 

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

 

Presented below is a comprehensive summary of EOG's financial commodity derivative contracts as of July 30, 2021.

 

Crude Oil Financial Price Swap Contracts

       

Contracts Sold

Period

 

Settlement Index

 

Volume

(MBbld)

 

Weighted Average Price

($/Bbl)

January 2021 (closed)

 

NYMEX WTI

 

151

   

$

50.06

 

February - March 2021 (closed)

 

NYMEX WTI

 

201

   

51.29

 

April - June 2021 (closed)

 

NYMEX WTI

 

150

   

51.68

 

July 2021 (closed)

 

NYMEX WTI

 

150

   

52.71

 

August - September 2021

 

NYMEX WTI

 

150

   

52.71

 

January - March 2022

 

NYMEX WTI

 

140

   

65.58

 

April - June 2022

 

NYMEX WTI

 

140

   

65.62

 

July - September 2022

 

NYMEX WTI

 

100

   

64.98

 

October - December 2022

 

NYMEX WTI

 

40

   

63.71

 
                 
                 

Crude Oil Basis Swap Contracts

       

Contracts Sold

Period

 

Settlement Index

 

Volume

(MBbld)

 

Weighted Average Price

Differential

($/Bbl)

February 2021 (closed)

 

NYMEX WTI Roll Differential (1)

 

30

   

$

0.11

 

March - August 2021 (closed)

 

NYMEX WTI Roll Differential (1)

 

125

   

0.17

 

September - December 2021

 

NYMEX WTI Roll Differential (1)

 

125

   

0.17

 

January - December 2022

 

NYMEX WTI Roll Differential (1)

 

125

   

0.15

 
                 

(1)   This settlement index is used to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month.

                 
                 

NGL Financial Price Swap Contracts

       

Contracts Sold

Period

 

Settlement Index

 

Volume

(MBbld)

 

Weighted Average Price

($/Bbl)

January - July 2021 (closed)

 

Mont Belvieu Propane (non-Tet)

 

15

   

$

29.44

 

August - December 2021

 

Mont Belvieu Propane (non-Tet)

 

15

   

29.44

 

 

Natural Gas Financial Price Swap Contracts

       

Contracts Sold

 

Contracts Purchased

Period

 

Settlement Index

 

Volume

(MMBtud in

thousands)

 

Weighted

Average Price

($/MMBtu)

 

Volume

(MMBtud in

thousands)

 

Weighted

Average Price

($/MMBtu)

January - March 2021 (closed)

 

NYMEX Henry Hub

 

500

   

$

2.99

   

500

   

$

2.43

 

April - August 2021 (closed)

 

NYMEX Henry Hub

 

500

   

2.99

   

570

   

2.81

 

September 2021

 

NYMEX Henry Hub

 

500

   

2.99

   

570

   

2.81

 

October - December 2021

 

NYMEX Henry Hub

 

500

   

2.99

   

500

   

2.83

 

January - December 2022

    (closed) (1)

 

NYMEX Henry Hub

 

20

   

2.75

   

   

 

January - December 2022

 

NYMEX Henry Hub

 

100

   

2.93

   

   

 

January - December 2023

 

NYMEX Henry Hub

 

100

   

2.93

   

   

 

January - December 2024

 

NYMEX Henry Hub

 

100

   

2.93

   

   

 

January - December 2025

 

NYMEX Henry Hub

 

100

   

2.93

   

   

 

April - August 2021 (closed)

 

JKM

 

70

   

6.65

   

   

 

September 2021

 

JKM

 

70

   

6.65

   

   

 
   

(1)

In January 2021, EOG executed the early termination provision granting EOG the right to terminate all of its 2022 natural gas price swap contracts which were open at that time.  EOG received net cash of $0.6 million for the settlement of these contracts.

 

Glossary:

 

$/Bbl

Dollars per barrel

$/MMBtu

Dollars per million British Thermal Units

Bbl

Barrel

EOG

EOG Resources, Inc.

JKM

Japan Korea Marker

MBbld

Thousand barrels per day

MMBtu

Million British Thermal Units

MMBtud

Million British Thermal Units per day

NGL

Natural Gas Liquids

NYMEX

New York Mercantile Exchange

WTI

West Texas Intermediate

 

Direct After-Tax Rate of Return

   

The calculation of EOG's direct after-tax rate of return (ATROR) with respect to EOG's 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 EOG's direct net costs incurred in drilling or acquiring (as the case may be) such wells or well (as the case may be).  As such, EOG's 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 wellsite  facilities and flowback

 

Excludes Indirect Capital

 

  - Gathering and Processing and other Midstream

 

  - Land, Seismic, Geological and Geophysical

 

  - Offsite Production Facilities

 
   

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 and Powder River Basin Facilities

 

  - Gathering and Processing

 

Includes Legacy Gas Capital and Capital from Mature Wells

 

 

ROCE & ROE

In millions of USD, except ratio data (Unaudited)

                     
                       

The following tables reconcile Interest Expense, Net (GAAP), Net Income (Loss) (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.

                       
 

Trailing 12

Months

2Q 2021

 

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

                       

Interest Expense, Net (GAAP)

198

   

45

   

47

   

53

   

53

     

Tax Benefit Imputed (based on 21%)

(41)

   

(9)

   

(10)

   

(11)

   

(11)

     

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

157

   

36

   

37

   

42

   

42

     
                       

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

1,879

   

907

   

677

   

337

   

(42)

     

Adjustments to Net Income (Loss), Net of Tax (See

    Below Detail) (1)

742

   

105

   

269

   

74

   

294

     

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

2,621

   

1,012

   

946

   

411

   

252

     
                       

Total Stockholders' Equity - (d)

20,881

   

20,881

   

20,762

   

20,302

   

20,148

   

20,388

 
                       

Average Total Stockholders' Equity * - (e)

20,635

                     
                       

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

5,125

   

5,125

   

5,133

   

5,816

   

5,721

   

5,724

 

Less:  Cash

(3,880)

   

(3,880)

   

(3,388)

   

(3,329)

   

(3,066)

   

(2,417)

 

Net Debt (Non-GAAP) - (g)

1,245

   

1,245

   

1,745

   

2,487

   

2,655

   

3,307

 
                       

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

26,006

   

26,006

   

25,895

   

26,118

   

25,869

   

26,112

 
                       

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

22,126

   

22,126

   

22,507

   

22,789

   

22,803

   

23,695

 
                       

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

22,911

                     
                       

Return on Capital Employed (ROCE)

                     

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

8.9

%

                   

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

12.1

%

                   
                       

Return on Equity (ROE)

                     

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

9.1

%

                   

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

12.7

%

                   
                       

* Average for the beginning and ending trailing 12 month period.

               
                 
                 
                 

(1) Detail of adjustments to Net Income (Loss) (GAAP):

                   
             

Before

Tax

 

Income

Tax Impact

 

After

Tax

Q2 2021

                     

Adjustments:

                     

Add:  Mark-to-Market Commodity Derivative
    Contracts Impact

           

234

   

(51)

   

183

 

Add:  Impairments of Certain Assets

           

1

   

   

1

 

Less:  Net Gains on Asset Dispositions

           

(51)

   

17

   

(34)

 

Less: Tax Benefits Related to Exiting Canada
    Operations

           

   

(45)

   

(45)

 

Total

           

184

   

(79)

   

105

 
                       

Q1 2021

                     

Adjustments:

                     

Add:  Mark-to-Market Commodity Derivative
    Contracts Impact

           

337

   

(74)

   

263

 

Add:  Impairments of Certain Assets

           

1

   

   

1

 

Add:  Net Losses on Asset Dispositions

           

6

   

(1)

   

5

 

Total

           

344

   

(75)

   

269

 
                       

Q4 2020

                     

Adjustments:

                     

Add:  Mark-to-Market Commodity Derivative
    Contracts Impact

           

2

   

(1)

   

1

 

Add:  Impairments of Certain Assets

           

86

   

(18)

   

68

 

Add:  Net Losses on Asset Dispositions

           

6

   

(1)

   

5

 

Total

           

94

   

(20)

   

74

 
                       

Q3 2020

                     

Adjustments:

                     

Add:  Mark-to-Market Commodity Derivative     Contracts Impact

           

279

   

(60)

   

219

 

Add:  Impairments of Certain Assets

           

27

   

(7)

   

20

 

Add:  Net Losses on Asset Dispositions

           

71

   

(16)

   

55

 

Total

           

377

   

(83)

   

294

 

 

ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)

             
               
 

2020

 

2019

 

2018

 

2017

               

Interest Expense, Net (GAAP)

205

   

185

   

245

     

Tax Benefit Imputed (based on 21%)

(43)

   

(39)

   

(51)

     

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

162

   

146

   

194

     
               

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

(605)

   

2,735

   

3,419

     

Adjustments to Net Income (Loss), Net of Tax (See Below Detail) (1)

1,455

   

158

   

(201)

     

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

850

   

2,893

   

3,218

     
               

Total Stockholders' Equity - (d)

20,302

   

21,641

   

19,364

   

16,283

 
               

Average Total Stockholders' Equity * - (e)

20,972

   

20,503

   

17,824

     
               

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

5,816

   

5,175

   

6,083

   

6,387

 

Less:  Cash

(3,329)

   

(2,028)

   

(1,556)

   

(834)

 

Net Debt (Non-GAAP) - (g)

2,487

   

3,147

   

4,527

   

5,553

 
               

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

26,118

   

26,816

   

25,447

   

22,670

 
               

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

22,789

   

24,788

   

23,891

   

21,836

 
               

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

23,789

   

24,340

   

22,864

     
               

Return on Capital Employed (ROCE)

             

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

(1.9)

%

 

11.8

%

 

15.8

%

   

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

4.3

%

 

12.5

%

 

14.9

%

   
               

Return on Equity (ROE)

             

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

(2.9)

%

 

13.3

%

 

19.2

%

   

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

4.1

%

 

14.1

%

 

18.1

%

   
               

* Average for the current and immediately preceding year

             
               

(1) Detail of adjustments to Net Income (Loss) (GAAP):

             
     

Before

Tax

 

Income Tax

Impact

 

After

Tax

Year Ended December 31, 2020

             

Adjustments:

             

Add:  Mark-to-Market Commodity Derivative Contracts Impact

   

(74)

   

16

   

(58)

 

Add:  Impairments of Certain Assets

   

1,868

   

(392)

   

1,476

 

Add:  Net Losses on Asset Dispositions

   

47

   

(10)

   

37

 

Total

   

1,841

   

(386)

   

1,455

 
               

Year Ended December 31, 2019

             

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

 
               

Year Ended December 31, 2018

             

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)

 

 

ROCE & ROE

In millions of USD, except ratio data (Unaudited)

                 
                   

The following tables reconcile Interest Expense, Net (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) 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, 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

                   

Interest Expense, Net (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

 
                   

Return on Capital Employed (ROCE)

                 

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

13.4

%

 

-4.8

%

 

-21.6

%

 

14.7

%

 

12.1

%

                   

Return on Equity (ROE)

                 

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

17.1

%

 

-8.1

%

 

-29.5

%

 

17.6

%

 

15.3

%

                   

* Average for the current and immediately preceding year

                 
                   
                   

ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)

                 
 
 

2012

 

2011

 

2010

 

2009

 

2008

                   

Interest Expense, Net (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 (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

 
                   

Return on Capital Employed (ROCE)

                 

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

4.0

%

 

7.7

%

 

1.8

%

 

5.4

%

 

26.4

%

                   

Return on Equity (ROE)

                 

GAAP Net Income - (b) / (e)

4.4

%

 

9.5

%

 

1.6

%

 

5.8

%

 

30.5

%

                   

* Average for the current and immediately preceding year

                 
                   
                   

ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)

                 
                   
 

2007

 

2006

 

2005

 

2004

 

2003

                   

Interest Expense, Net (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 (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

 
                   

Return on Capital Employed (ROCE)

                 

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

15.7

%

 

24.7

%

 

30.0

%

 

18.2

%

 

15.3

%

                   

Return on Equity (ROE)

                 

GAAP Net Income - (b) / (e)

17.3

%

 

26.2

%

 

34.7

%

 

24.2

%

 

22.1

%

                   

* Average for the current and immediately preceding year

                 
                   
                   

ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)

                 
 
 

2002

 

2001

 

2000

 

1999

 

1998

                   

Interest Expense, Net (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 (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

     
                   

Return on Capital Employed (ROCE)

                 

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

4.8

%

 

18.2

%

 

20.2

%

 

27.0

%

   
                   

Return on Equity (ROE)

                 

GAAP Net Income - (b) / (e)

5.2

%

 

26.4

%

 

31.6

%

 

47.2

%

   
                   

* Average for the current and immediately preceding year

                 

 

Revenues, Costs and Margins Per Barrel of Oil Equivalent

In millions of USD, except Boe and per Boe amounts (Unaudited)

                   

EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who review certain components and/or groups of components of revenues, costs and/or margin per barrel of oil equivalent (Boe). Certain of these components are adjusted for non-recurring and certain other items, as further discussed below.

 

EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

                   
 

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

                   

Volume - Million Barrels of Oil Equivalent - (a)

75.3

   

70.1

   

73.7

   

65.9

   

56.7

 
                   

Total Operating Revenues and Other (b)

4,139

   

3,694

   

2,965

   

2,246

   

1,103

 

Total Operating Expenses (c)

2,968

   

2,762

   

2,477

   

2,249

   

2,190

 

Operating Income (Loss) (d)

1,171

   

932

   

488

   

(3)

   

(1,087)

 
                   

Wellhead Revenues

                 

Crude Oil and Condensate

2,699

   

2,251

   

1,711

   

1,395

   

615

 

Natural Gas Liquids

367

   

314

   

229

   

185

   

93

 

Natural Gas

404

   

625

   

302

   

184

   

141

 

Total Wellhead Revenues - (e)

3,470

   

3,190

   

2,242

   

1,764

   

849

 
                   

Operating Costs

                 

Lease and Well

270

   

270

   

261

   

227

   

245

 

Transportation Costs

214

   

202

   

195

   

180

   

152

 

Gathering and Processing Costs

128

   

139

   

119

   

115

   

97

 

General and Administrative

120

   

110

   

113

   

125

   

132

 

Taxes Other Than Income

239

   

215

   

114

   

126

   

81

 

Interest Expense, Net

45

   

47

   

53

   

53

   

54

 

Total Operating Cost (excluding DD&A and Total Exploration

    Costs) (f)

1,016

   

983

   

855

   

826

   

761

 
                   

Depreciation, Depletion and Amortization (DD&A)

914

   

900

   

870

   

823

   

707

 
                   

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

1,930

   

1,883

   

1,725

   

1,649

   

1,468

 
                   

Exploration Costs

35

   

33

   

41

   

38

   

27

 

Dry Hole Costs

13

   

11

   

   

13

   

 

Impairments

44

   

44

   

143

   

79

   

305

 

Total Exploration Costs (GAAP)

92

   

88

   

184

   

130

   

332

 

Less:  Certain Impairments (1)

(1)

   

(1)

   

(86)

   

(27)

   

(239)

 

Total Exploration Costs (Non-GAAP)

91

   

87

   

98

   

103

   

93

 
                   

Total Operating Cost (including Total Exploration Costs

    (GAAP)) - (h)

2,022

   

1,971

   

1,909

   

1,779

   

1,800

 

Total Operating Cost (including Total Exploration Costs

    (Non-GAAP)) - (i)

2,021

   

1,970

   

1,823

   

1,752

   

1,561

 
                   

Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (GAAP))

1,448

   

1,219

   

333

   

(15)

   

(951)

 

Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (Non-GAAP))

1,449

   

1,220

   

419

   

12

   

(712)

 
                             
                             

Revenues, Costs and Margins Per Barrel of Oil Equivalent (Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)

                 
                   
 

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

 

2Q 2020

                   

Per Barrel of Oil Equivalent (Boe) Calculations (GAAP)

                 
                   

Composite Average Operating Revenues and Other per Boe

    - (b) / (a)

54.97

   

52.70

   

40.23

   

34.08

   

19.45

 

Composite Average Operating Expenses per Boe - (c) / (a)

39.42

   

39.40

   

33.61

   

34.13

   

38.62

 

Composite Average Operating Income (Loss) per Boe

    - (d) / (a)

15.55

   

13.30

   

6.62

   

(0.05)

   

(19.17)

 
                   

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

46.07

   

45.49

   

30.39

   

26.77

   

14.99

 
                   

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

13.48

   

14.02

   

11.60

   

12.56

   

13.40

 
                   

Composite Average Margin per Boe (excluding DD&A and

    Total Exploration Costs) - [(e) / (a) - (f) / (a)]

32.59

   

31.47

   

18.79

   

14.21

   

1.59

 
                   

Total Operating Cost per Boe (excluding Total Exploration

     Costs) - (g) / (a)

25.61

   

26.86

   

23.41

   

25.05

   

25.86

 
                   

Composite Average Margin per Boe (excluding Total

    Exploration Costs) - [(e) / (a) - (g) / (a)]

20.46

   

18.63

   

6.98

   

1.72

   

(10.87)

 
                   

Total Operating Cost per Boe (including Total Exploration

    Costs) - (h) / (a)

26.85

   

28.12

   

25.90

   

27.00

   

31.75

 
                   

Composite Average Margin per Boe (including Total

    Exploration Costs) - [(e) / (a) - (h) / (a)]

19.22

   

17.37

   

4.49

   

(0.23)

   

(16.76)

 
                   

Per Barrel of Oil Equivalent (Boe) Calculations (Non-GAAP)

                 
                   

Total Operating Cost per Boe (including Total Exploration

     Costs) - (i) / (a)

26.82

   

28.11

   

24.72

   

26.62

   

27.51

 
                   

Composite Average Margin per Boe (including Total

     Exploration Costs) - [(e) / (a) - (i) / (a)]

19.25

   

17.38

   

5.67

   

0.15

   

(12.52)

 
   

(1)

In general, EOG excludes impairments which are (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets). EOG believes excluding these impairments from total exploration costs is appropriate and provides useful information to investors, as such impairments were caused by factors outside of EOG's control (versus, for example, impairments that are due to EOG's proved oil and gas properties not being as productive as it originally estimated).

 

Revenues, Costs and Margins Per Barrel of Oil Equivalent   (Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)

               
 

2020

 

2019

 

2018

 

2017

               

Volume - Million Barrels of Oil Equivalent - (a)

275.9

   

298.6

   

262.5

   

222.3

 
               

Total Operating Revenues and Other (b)

11,032

   

17,380

   

17,275

   

11,208

 

Total Operating Expenses (c)

11,576

   

13,681

   

12,806

   

10,282

 

Operating Income (Loss) (d)

(544)

   

3,699

   

4,469

   

926

 
               

Wellhead Revenues

             

Crude Oil and Condensate

5,786

   

9,613

   

9,517

   

6,256

 

Natural Gas Liquids

668

   

785

   

1,128

   

730

 

Natural Gas

837

   

1,184

   

1,302

   

922

 

Total Wellhead Revenues - (e)

7,291

   

11,582

   

11,947

   

7,908

 
               

Operating Costs

             

Lease and Well

1,063

   

1,367

   

1,283

   

1,045

 

Transportation Costs

735

   

758

   

747

   

740

 

Gathering and Processing Costs

459

   

479

   

437

   

149

 

General and Administrative (GAAP)

484

   

489

   

427

   

434

 

Less:  Legal Settlement - Early Leasehold Termination

   

   

   

(10)

 

Less:  Joint Venture Transaction Costs

   

   

   

(3)

 

Less:  Joint Interest Billings Deemed Uncollectible

   

   

   

(5)

 

General and Administrative (Non-GAAP) (1)

484

   

489

   

427

   

416

 

Taxes Other Than Income

478

   

800

   

772

   

545

 

Interest Expense, Net

205

   

185

   

245

   

274

 

Total Operating Cost (GAAP) (excluding DD&A and Total Exploration Costs) - (f)

3,424

   

4,078

   

3,911

   

3,187

 

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

3,424

   

4,078

   

3,911

   

3,169

 
               

Depreciation, Depletion and Amortization (DD&A)

3,400

   

3,750

   

3,435

   

3,409

 
               

Total Operating Cost (GAAP) (excluding Total Exploration Costs) - (h)

6,824

   

7,828

   

7,346

   

6,596

 

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

6,824

   

7,828

   

7,346

   

6,578

 
               

Exploration Costs

146

   

140

   

149

   

145

 

Dry Hole Costs

13

   

28

   

5

   

5

 

Impairments

2,100

   

518

   

347

   

479

 

Total Exploration Costs (GAAP)

2,259

   

686

   

501

   

629

 

Less:  Certain Impairments (2)

(1,868)

   

(275)

   

(153)

   

(261)

 

Total Exploration Costs (Non-GAAP)

391

   

411

   

348

   

368

 
               

Total Operating Cost (GAAP) (including Total Exploration Costs (GAAP)) - (j)

9,083

   

8,514

   

7,847

   

7,225

 

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

7,215

   

8,239

   

7,694

   

6,946

 
               

Total Wellhead Revenues less Total Operating Cost (GAAP) (including Total

    Exploration Costs (GAAP))

(1,792)

   

3,068

   

4,100

   

683

 

Total Wellhead Revenues less Total Operating Cost (Non-GAAP) (including Total   

    Exploration Costs (Non-GAAP))

76

   

3,343

   

4,253

   

962

 
               
               

Revenues, Costs and Margins Per Barrel of Oil Equivalent   (Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)

             
 

2020

 

2019

 

2018

 

2017

               

Per Barrel of Oil Equivalent (Boe) Calculations (GAAP)

             
               

Composite Average Operating Revenues and Other per Boe - (b) / (a)

39.99

   

58.20

   

65.81

   

50.42

 

Composite Average Operating Expenses per Boe - (c) / (a)

41.96

   

45.81

   

48.79

   

46.25

 

Composite Average Operating Income (Loss) per Boe - (d) / (a)

(1.97)

   

12.39

   

17.02

   

4.17

 
               

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

26.42

   

38.79

   

45.51

   

35.58

 
               

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

12.39

   

13.66

   

14.90

   

14.34

 
               

Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) /

    (a) - (f) / (a)]

14.03

   

25.13

   

30.61

   

21.24

 
               

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

24.71

   

26.22

   

27.99

   

29.67

 
               

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

1.71

   

12.57

   

17.52

   

5.91

 
               

Total Operating Cost per Boe (including Total Exploration Costs) - (j) / (a)

32.92

   

28.51

   

29.89

   

32.50

 
               

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

(6.50)

   

10.28

   

15.62

   

3.08

 
               

Per Barrel of Oil Equivalent (Boe) Calculations (Non-GAAP)

             
               

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

12.39

   

13.66

   

14.90

   

14.25

 
               

Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) /

    (a) - (g) / (a)]

14.03

   

25.13

   

30.61

   

21.33

 
               

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

24.71

   

26.22

   

27.99

   

29.59

 
               

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

1.71

   

12.57

   

17.52

   

5.99

 
               

Total Operating Cost per Boe (including Total Exploration Costs) - (k) / (a)

26.13

   

27.60

   

29.32

   

31.24

 
               

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

0.29

   

11.19

   

16.19

   

4.34

 
   

(1)

EOG believes excluding the above-referenced items from general and administrative expense is appropriate and provides useful information to investors, as EOG views such items as non-recurring.  

(2)

In general, EOG excludes impairments which are (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets). EOG believes excluding these impairments from total exploration costs is appropriate and provides useful information to investors, as such impairments were caused by factors outside of EOG's control (versus, for example, impairments that are due to EOG's proved oil and gas properties not being as productive as it originally estimated).

 

Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)

             
   

2016

 

2015

 

2014

             

Volume - Million Barrels of Oil Equivalent - (a)

 

205.0

   

208.9

   

217.1

 
             

Total Operating Revenues and Other (b)

 

7,651

   

8,757

   

18,035

 

Total Operating Expenses (c)

 

8,876

   

15,443

   

12,793

 

Operating Income (Loss) (d)

 

(1,225)

   

(6,686)

   

5,242

 
             

Wellhead Revenues

           

Crude Oil and Condensate

 

4,317

   

4,935

   

9,742

 

Natural Gas Liquids

 

437

   

408

   

934

 

Natural Gas

 

742

   

1,061

   

1,916

 

Total Wellhead Revenues - (e)

 

5,496

   

6,404

   

12,592

 
             

Operating Costs

           

Lease and Well

 

927

   

1,182

   

1,416

 

Transportation Costs

 

764

   

849

   

972

 

Gathering and Processing Costs

 

123

   

146

   

146

 

General and Administrative (GAAP)

 

395

   

367

   

402

 

Less:  Voluntary Retirement Expense

 

(42)

   

   

 

Less: Acquisition Costs

 

(5)

   

   

 

Less:  Legal Settlement - Early Leasehold Termination

 

   

(19)

   

 

General and Administrative (Non-GAAP) (1)

 

348

   

348

   

402

 

Taxes Other Than Income

 

350

   

422

   

758

 

Interest Expense, Net

 

282

   

237

   

201

 

Total Operating Cost (GAAP) (excluding DD&A and Total Exploration Costs) - (f)

 

2,841

   

3,203

   

3,895

 

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

 

2,794

   

3,184

   

3,895

 
             

Depreciation, Depletion and Amortization (DD&A)

 

3,553

   

3,314

   

3,997

 
             

Total Operating Cost (GAAP) (excluding Total Exploration Costs) - (h)

 

6,394

   

6,517

   

7,892

 

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

 

6,347

   

6,498

   

7,892

 
             

Exploration Costs

 

125

   

149

   

184

 

Dry Hole Costs

 

11

   

15

   

48

 

Impairments

 

620

   

6,614

   

744

 

Total Exploration Costs (GAAP)

 

756

   

6,778

   

976

 

Less:  Certain Impairments (2)

 

(321)

   

(6,308)

   

(824)

 

Total Exploration Costs (Non-GAAP)

 

435

   

470

   

152

 
             

Total Operating Cost (GAAP) (including Total Exploration Costs (GAAP)) - (j)

 

7,150

   

13,295

   

8,868

 

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

 

6,782

   

6,968

   

8,044

 
             

Total Wellhead Revenues less Total Operating Cost (GAAP) (including Total

    Exploration Costs (GAAP))

 

(1,654)

   

(6,891)

   

3,724

 

Total Wellhead Revenues less Total Operating Cost (Non-GAAP) (including Total   

    Exploration Costs (Non-GAAP))

 

(1,286)

   

(564)

   

4,548

 
             
             

Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)

           
   

2016

 

2015

 

2014

             

Per Barrel of Oil Equivalent (Boe) Calculations (GAAP)

           
             

Composite Average Operating Revenues and Other per Boe - (b) / (a)

 

37.32

   

41.92

   

83.07

 

Composite Average Operating Expenses per Boe - (c) / (a)

 

43.30

   

73.93

   

58.92

 

Composite Average Operating Income (Loss) per Boe - (d) / (a)

 

(5.98)

   

(32.01)

   

24.15

 
             

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

 

26.82

   

30.66

   

58.01

 
             

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

 

13.86

   

15.33

   

17.95

 
             

Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) /

    (a) - (f) / (a)]

 

12.96

   

15.33

   

40.06

 
             

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

 

31.19

   

31.20

   

36.38

 
             

Composite Average Margin per Boe (excluding Total Exploration Costs) - [(e) / (a) - (h) /

    (a)]

 

(4.37)

   

(0.54)

   

21.63

 
             

Total Operating Cost per Boe (including Total Exploration Costs) - (j) / (a)

 

34.88

   

63.64

   

40.85

 
             

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

 

(8.06)

   

(32.98)

   

17.16

 
             

Per Barrel of Oil Equivalent (Boe) Calculations (Non-GAAP)

           
             

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

 

13.64

   

15.25

   

17.95

 
             

Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) /

    (a) - (g) / (a)]

 

13.18

   

15.41

   

40.06

 
             

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

 

30.98

   

31.11

   

36.38

 
             

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

 

(4.16)

   

(0.45)

   

21.63

 
             

Total Operating Cost per Boe (including Total Exploration Costs) - (k) / (a)

 

33.10

   

33.36

   

37.08

 
             

Composite Average Margin per Boe (including Total Exploration Costs) - [(e) / (a) - (k) /

    (a)]

 

(6.28)

   

(2.70)

   

20.93

 
   

(1)

EOG believes excluding the above-referenced items from general and administrative expense is appropriate and provides useful information to investors, as EOG views such items as non-recurring.  

(2)

In general, EOG excludes impairments which are (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets). EOG believes excluding these impairments from total exploration costs is appropriate and provides useful information to investors, as such impairments were caused by factors outside of EOG's control (versus, for example, impairments that are due to EOG's proved oil and gas properties not being as productive as it originally estimated).

 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/eog-resources-reports-second-quarter-2021-results-301348730.html

SOURCE EOG Resources, Inc.