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EOG Resources Reports Excellent Third Quarter 2021 Results; Raises Regular Dividend 82% and Declares $2.00 per Share Special Dividend

HOUSTON, Nov. 4, 2021 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported third 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

 
 

3Q 2021

 

2Q 2021

 

3Q 2020

   

GAAP

Total Revenue

4,765

 

4,139

 

2,246

   

Net Income (Loss)

1,095

 

907

 

(42)

   

Net Income (Loss) Per Share

1.88

 

1.55

 

(0.07)

   

Net Cash Provided by Operating Activities

2,196

 

1,559

 

1,214

   

Total Expenditures

962

 

1,089

 

646

   

Current and Long-Term Debt

5,117

 

5,125

 

5,721

   

Cash and Cash Equivalents

4,293

 

3,880

 

3,066

   

Debt-to-Total Capitalization

19.0

%

19.7

%

22.1

%

 
   

Non-GAAP

Adjusted Net Income

1,264

 

1,012

 

252

   

Adjusted Net Income Per Share

2.16

 

1.73

 

0.43

   

Discretionary Cash Flow

2,296

 

2,030

 

1,261

   

Cash Capital Expenditures before Acquisitions

935

 

972

 

499

   

Free Cash Flow

1,361

 

1,058

 

762

   

Net Debt

824

 

1,245

 

2,655

   

Net Debt-to-Total Capitalization

3.6

%

5.6

%

11.6

%

 

Third Quarter 2021 Highlights

  • Increased regular dividend 82% to an indicated annual rate of $3.00 per share
  • Declared special dividend of $2.00 per share
  • Updated share repurchase authorization
  • Earned adjusted net income of $1.3 billion, or $2.16 per share
  • Generated $1.4 billion of free cash flow
  • Capital expenditures near low end of guidance range driven by sustainable cost reductions
  • Oil and NGL production above high end of guidance ranges
  • Total per-unit cash operating costs below guidance midpoint

Volumes and Capital Expenditures

Wellhead Volumes

3Q 2021

3Q 2021
Guidance
Midpoint

2Q 2021

3Q 2020

Crude Oil and Condensate (MBod)

449.5

444.5

448.6

377.6

Natural Gas Liquids (MBbld)

157.9

140.0

138.5

140.1

Natural Gas (MMcfd)

1,422

1,410

1,445

1,190

Total Crude Oil Equivalent (MBoed)

844.4

819.5

828.0

716.0

 

Cash Capital Expenditures before Acquisitions ($MM)

935

1,000

972

499

From Ezra Yacob, Chief Executive Officer
"EOG delivered exceptionally strong earnings and free cash flow in the third quarter driven by our double premium investment program. We extended our track record of reliable execution with better than expected production, capital expenditures, operating costs and product prices.

"For the second time this year, we've increased our dividend rate. This quarter's 82 percent raise brings our indicated annual rate to $3.00 per share, doubling the dividend compared to last year. Our high-return investment program, first spurred by our shift to a premium investment standard in 2016 and followed by the double premium standard instituted last year, has positioned the company to step up our cash return to shareholders. The sizable increase in the regular dividend closes the gap between the prior dividend level and the significant improvement in EOG's profitability since 2016. It should also be taken as a signal of our confidence that we can continue improving in the future.

"We also continue to deliver on our other cash return priorities, with a second special dividend to be paid this year and an update to our share repurchase authorization. Share repurchases provide the opportunity to create additional value for stockholders when executed prudently and at the right time. We remain firmly committed to our long-term free cash flow priorities.

"EOG has never been in better shape. Our high-return business model is sustainable for the long term, underpinned by a deep inventory of double premium drilling locations. We also remain optimistic about the potential of new exploration plays to improve the overall quality of our inventory. Our financial and operational results, our world-class assets as well as our continued progress on exploration are a testament to the strength of EOG's underlying business, all driven by our talented employees and unique culture. We are well positioned to be one of the lowest cost and lowest emissions producers and generate superior cash returns, free cash flow growth and long-term shareholder value."

Third Quarter 2021 Financial Performance

Adjusted Earnings per Share 3Q 2021 vs 2Q 2021

Prices and Hedges
Natural gas, crude oil and NGL prices increased significantly in 3Q compared with 2Q, partially offset by an increase in cash paid for hedge settlements in 3Q of $100 million compared with 2Q.

Volumes
Total company crude oil production of 449,500 Bopd was above the high end of the guidance range due to better well productivity. Increased extraction of ethane boosted NGL production 14% higher than 2Q while contributing to slightly lower natural gas production, along with declines related to plant downtime in Trinidad. Total company equivalent volumes increased 2% compared with 2Q.

Per-Unit Costs
Per-unit cash operating costs in 3Q were 5% below the midpoint of the guidance range, primarily due to lower than forecasted lease and well and transportation costs. Compared with 2Q, per-unit cash operating costs increased 3% due to higher gathering and processing and general and administrative costs. In addition, per-unit taxes other than income increased compared with 2Q due to higher product prices.

Change in Cash 3Q 2021 vs 2Q 2021

Free Cash Flow
EOG generated discretionary cash flow (net cash provided by operating activities before exploration costs and changes in working capital) of $2.3 billion in 3Q. The company incurred $935 million of cash capital expenditures before acquisitions, resulting in $1.4 billion of free cash flow.

Capital Expenditures
Cash capital expenditures before acquisitions of $935 million were near the low end of the guidance range due to lower well costs from sustainable efficiency improvements. EOG was able to offset inflationary pressures with efficiency improvements in many areas. In particular, the application of "super-zipper" completion techniques, faster drilling times, lower-cost sand sourcing and the addition of infrastructure to procure lower-cost water all contributed to the overall cost reductions.

Third Quarter 2021 Operating Performance

Lease and Well
Per-unit LOE costs were $0.32 below the guidance mid-point due to lower water handling and compression costs. Per-unit LOE costs were $0.10 below 2Q due to overall efficiency improvements. Per- unit costs were in-line with 3Q 2020.

Transportation, Gathering and Processing
Per-unit transportation costs were below the guidance mid- point due to lower than expected NGL and oil transportation fees. Per-unit G&P costs increased from 2Q due to higher fuel prices while transportation costs were in-line with 2Q. Per-unit transportation and G&P costs increased 3% and 7%, respectively, compared with 3Q 2020 due to increased fuel prices and higher storage and terminal fees.

General and Administrative
Per-unit G&A costs were in line with the guidance midpoint. Per-unit G&A costs were above 2Q due to seasonally higher employee related costs. Per-unit G&A costs decreased from 3Q 2020 as increased production volumes more than offset increased employee related costs.

Depreciation, Depletion and Amortization
Per-unit DD&A costs were slightly below the guidance midpoint and declined 2% and 4% compared with 2Q 2021 and 3Q 2020, respectively, due to the addition of reserves from new wells at lower finding costs.

Free Cash Flow Allocation Actions

Declared $0.75 per Share Regular Dividend – 82% Increase to $3.00 per Share Indicated Annual Rate

 


 

The Board of Directors today declared a regular dividend of $0.75 per share on EOG's Common Stock. The dividend is payable January 28, 2022 to stockholders of record as of January 14, 2022. The new dividend represents a $3.00 per share indicated annual rate, an 82% increase from the previous level. The annual cash commitment towards the dividend is $785 million higher and reflects EOG's low cost of supply, robust cash flow generation and strong balance sheet. A growing, sustainable dividend is the company's primary mode of returning cash to shareholders. EOG has a long track record of delivering against this objective as the company has never suspended or reduced its regular dividend.

$2.00 per Share Special Dividend
The Board of Directors today also declared a special dividend of $2.00 per share on EOG's Common Stock. The dividend is payable December 30, 2021 to stockholders of record as of December 15, 2021. EOG has now committed to return $2.7 billion of cash to stockholders in 2021, representing approximately 30 percent of expected 2021 discretionary cash flow.

Share Repurchase Authorization
In addition, the Board of Directors today updated EOG's share repurchase authorization to $5 billion. The updated authorization is consistent with EOG's long-standing cash flow priorities and complements existing avenues to return cash to shareholders through regular and special dividends. The repurchase authorization enables EOG to opportunistically increase per-share value for stockholders.

 


 

Third Quarter 2021 Results vs Guidance

 

 


 

 

 

(Unaudited)

 

Crude Oil and Condensate Volumes (MBod)

3Q 2021

3Q 2021
Guidance
Midpoint

Variance

2Q 2021

1Q 2021

4Q 2020

3Q 2020

 

United States

448.3

443.5

4.8

446.9

428.7

442.4

376.6

 

Trinidad

1.2

1.0

0.2

1.7

2.2

2.3

1.0

 

Other International

0.0

0.0

0.0

0.0

0.1

0.1

0.0

 

Total

449.5

444.5

5.0

448.6

431.0

444.8

377.6

 

Natural Gas Liquids Volumes (MBbld)

 

Total

157.9

140.0

17.9

138.5

124.3

141.4

140.1

 

Natural Gas Volumes (MMcfd)

 

United States

1,210

1,200

10

1,199

1,100

1,075

1,008

 

Trinidad

212

210

2

233

217

192

151

 

Other International

0

0

0

13

25

25

31

 

Total

1,422

1,410

12

1,445

1,342

1,292

1,190

 
   

Total Crude Oil Equivalent Volumes (MBoed)

844.4

819.5

24.9

828.0

778.9

801.5

716.0

 

Total MMBoe

77.7

75.4

2.3

75.3

70.1

73.7

65.9

 
   

Benchmark Price

 

Oil (WTI) ($/Bbl)

70.55

   

66.06

57.80

42.67

40.94

 

Natural Gas (HH) ($/Mcf)

4.01

   

2.83

2.69

2.65

1.94

 
   

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

 

United States

0.33

0.30

0.03

0.10

0.27

(0.81)

(0.75)

 

Trinidad

(10.36)

(7.50)

(2.86)

(9.80)

(8.03)

(9.76)

(15.53)

 
   

Natural Gas Liquids - Realizations as % of WTI

53.5%

50.0%

3.5%

44.1%

48.5%

41.1%

35.0%

 
   

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

 

United States

0.49

0.30

0.19

0.16

2.83

(0.36)

(0.45)

 

Natural Gas Realizations ($/Mcf)

 

Trinidad

3.39

3.35

0.04

3.37

3.38

3.57

2.35

 
   

Total Expenditures (GAAP) ($MM)

962

   

1,089

1,067

1,107

646

 

Capital Expenditures (non-GAAP) ($MM)

935

1,000

(65)

972

945

828

499

 
   

Operating Unit Costs ($/Boe)

 

Lease and Well

3.48

3.80

(0.32)

3.58

3.85

3.54

3.45

 

Transportation Costs

2.82

3.00

(0.18)

2.84

2.88

2.64

2.74

 

Gathering and Processing

1.87

1.90

(0.03)

1.70

1.98

1.62

1.74

 

General and Administrative

1.83

1.80

0.03

1.59

1.57

1.54

1.89

 

Cash Operating Costs

10.00

10.50

(0.50)

9.71

10.28

9.34

9.82

 

Depreciation, Depletion and Amortization

11.93

12.00

(0.07)

12.13

12.84

11.81

12.49

 
   

Expenses ($MM)

 

Exploration and Dry Hole

48

40

8

49

44

40

51

 

Impairment (GAAP)

82

   

44

44

143

79

 

Impairment (excluding certain impairments (non-GAAP))

69

85

(16)

43

43

57

52

 

Capitalized Interest

8

8

0

8

8

7

7

 

Net Interest

48

45

3

45

47

53

53

 
   

Taxes Other Than Income (% of Wellhead Revenue)

6.8%

7.0%

(0.2%)

6.9%

6.7%

5.1%

7.2%

 

Income Taxes

 

Effective Rate

23.4%

23.5%

(0.1%)

19.3%

23.2%

21.1%

19.2%

 

Deferred Ratio

(33%)

33%

(66%)

(45%)

(18%)

60%

330%

 

 

 


 

Fourth Quarter and Full-Year 2021 Guidance 2

 


 

 

(Unaudited)

 

See "Endnotes" below for related discussion and definitions.

4Q 2021
Guidance Range

FY 2021
Guidance Range

2020
Actual

2019
Actual

 

Crude Oil and Condensate Volumes (MBod)

                 

United States

442.0

-

450.0

441.5

-

443.5

408.1

455.5

 

Trinidad

0.5

-

1.5

1.4

-

1.6

1.0

0.6

 

Other International

0.0

-

0.0

0.0

-

0.0

0.1

0.1

 

Total

442.5

-

451.5

442.9

-

445.1

409.2

456.2

 

Natural Gas Liquids Volumes (MBbld)

                 

Total

148.0

-

158.0

142.3

-

144.8

136.0

134.1

 

Natural Gas Volumes (MMcfd)

                 

United States

1,285

-

1,385

1,199

-

1,225

1,040

1,069

 

Trinidad

185

-

215

212

-

219

180

260

 

Other International

0

-

0

9

-

10

32

37

 

Total

1,470

-

1,600

1,420

-

1,454

1,252

1,366

 

Crude Oil Equivalent Volumes (MBoed)

                 

United States

804.2

-

838.8

783.6

-

792.5

717.5

767.8

 

Trinidad

31.3

-

37.3

36.7

-

38.1

30.9

44.0

 

Other International

0.0

-

0.0

1.5

-

1.7

5.4

6.2

 

Total

835.5

-

876.1

821.8

-

832.3

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 3 ($/Bbl)

 

United States

0.20

-

1.20

0.30

-

0.60

(0.75)

0.70

 

Trinidad

(12.00)

-

(10.00)

(12.79)

-

(10.64)

(9.20)

(9.88)

 

Natural Gas Liquids - Realizations as % of WTI

                 

Total

50%

-

60%

50%

-

53%

34.0%

28.1%

 

Natural Gas Differentials - above (below) NYMEX Henry Hub 4 ($/Mcf)

 

United States

0.60

-

1.60

0.95

-

1.30

(0.47)

(0.40)

 

Natural Gas Realizations ($/Mcf)

                 

Trinidad

3.20

-

3.70

3.34

-

3.46

2.57

2.72

 
                   

Total Expenditures (GAAP) ($MM)

           

4,113

6,900

 

Capital Expenditures 5 (non-GAAP) ($MM)

950

-

1,150

3,800

-

4,000

3,490

6,234

 
                   

Operating Unit Costs ($/Boe)

                 

Lease and Well

3.40

-

4.10

3.57

-

3.76

3.85

4.58

 

Transportation Costs

2.75

-

3.15

2.82

-

2.93

2.66

2.54

 

Gathering and Processing

1.80

-

2.00

1.83

-

1.89

1.66

1.60

 

General and Administrative

1.50

-

1.60

1.62

-

1.65

1.75

1.64

 

Cash Operating Costs

9.45

-

10.85

9.84

-

10.23

9.92

10.36

 

Depreciation, Depletion and Amortization

11.40

-

12.00

12.06

-

12.21

12.32

12.56

 
                   

Expenses ($MM)

                 

Exploration and Dry Hole

40

-

45

180

-

185

159

168

 

Impairment (GAAP)

           

2,100

518

 

Impairment (excluding certain impairments (non-GAAP))

100

-

140

257

-

297

232

243

 

Capitalized Interest

5

-

10

29

-

34

31

38

 

Net Interest

42

-

48

182

-

188

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

5%

-

20%

(20%)

-

(5%)

54.8%

107.4%

 

 

 


 

Third Quarter 2021 Results Webcast
Friday, November 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.http://investors.eogresources.com/Investors

About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States 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 2022 dividend amount reflects the indicated annual rate of the quarterly dividend declared on November 4, 2021.

   

2)

The forecast items for the fourth 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.

   

3)

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.

   

4)

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.

   

5)

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
CAGR

Barrels of oil per day
Compound annual growth rate

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)

 
 

3Q 2021

 

2Q 2021

 

3Q 2020

 

YTD 2021

 

YTD 2020

Operating Revenues and Other

               

Crude Oil and Condensate

2,929

   

2,699

   

1,395

   

7,879

   

4,075

 

Natural Gas Liquids

548

   

367

   

185

   

1,229

   

439

 

Natural Gas

568

   

404

   

184

   

1,597

   

535

 

Gains (Losses) on Mark-to-Market

     Commodity Derivative Contracts

(494)

   

(427)

   

(4)

   

(1,288)

   

1,075

 

Gathering, Processing and Marketing

1,186

   

1,022

   

539

   

3,056

   

1,940

 

Gains (Losses) on Asset Dispositions, Net

1

   

51

   

(71)

   

46

   

(41)

 

Other, Net

27

   

23

   

18

   

79

   

44

 

Total

4,765

   

4,139

   

2,246

   

12,598

   

8,067

 
                   

Operating Expenses

                 

Lease and Well

270

   

270

   

227

   

810

   

802

 

Transportation Costs

219

   

214

   

180

   

635

   

540

 

Gathering and Processing Costs

145

   

128

   

115

   

412

   

340

 

Exploration Costs

44

   

35

   

38

   

112

   

105

 

Dry Hole Costs

4

   

13

   

13

   

28

   

13

 

Impairments

82

   

44

   

79

   

170

   

1,957

 

Marketing Costs

1,184

   

991

   

523

   

3,013

   

2,077

 

Depreciation, Depletion and Amortization

927

   

914

   

823

   

2,741

   

2,530

 

General and Administrative

142

   

120

   

125

   

372

   

371

 

Taxes Other Than Income

277

   

239

   

126

   

731

   

364

 

Total

3,294

   

2,968

   

2,249

   

9,024

   

9,099

 
                   

Operating Income (Loss)

1,471

   

1,171

   

(3)

   

3,574

   

(1,032)

 

Other Income (Expense), Net

6

   

(2)

   

3

   

   

17

 

Income (Loss) Before Interest Expense

     and Income Taxes

1,477

   

1,169

   

   

3,574

   

(1,015)

 

Interest Expense, Net

48

   

45

   

53

   

140

   

152

 

Income (Loss) Before Income Taxes

1,429

   

1,124

   

(53)

   

3,434

   

(1,167)

 

Income Tax Provision (Benefit)

334

   

217

   

(11)

   

755

   

(225)

 

Net Income (Loss)

1,095

   

907

   

(42)

   

2,679

   

(942)

 
                   

Dividends Declared per Common Share

0.4125

   

1.4125

   

0.3750

   

2.2375

   

1.1250

 

Net Income (Loss) Per Share

                 

Basic

1.88

   

1.56

   

(0.07)

   

4.62

   

(1.63)

 

Diluted

1.88

   

1.55

   

(0.07)

   

4.59

   

(1.63)

 

Average Number of Common Shares

                 

Basic

581

   

580

   

579

   

580

   

579

 

Diluted

584

   

584

   

579

   

584

   

579

 

 

Wellhead Volumes and Prices

(Unaudited)

 
 

3Q 2021

 

3Q2020

 

% Change

 

2Q 2021

 

YTD 2021

 

YTD 2020

 

% Change

                           

Crude Oil and Condensate Volumes

     (MBbld) (A)

                     

United States

448.3

   

376.6

   

19

%

 

446.9

   

441.3

   

396.6

   

11

%

Trinidad

1.2

   

1.0

   

20

%

 

1.7

   

1.7

   

0.5

   

240

%

Other International (B)

   

       

   

0.1

   

0.2

   

-50

%

Total

449.5

   

377.6

   

19

%

 

448.6

   

443.1

   

397.3

   

12

%

                           

Average Crude Oil and Condensate Prices

     ($/Bbl) (C)

                         

United States

70.88

   

40.19

   

76

%

 

66.16

   

65.18

   

37.45

   

74

%

Trinidad

60.19

   

25.41

   

137

%

 

56.26

   

54.33

   

26.35

   

106

%

Other International (B)

   

25.29

   

-100

%

 

55.56

   

42.36

   

45.09

   

-6

%

Composite

70.85

   

40.15

   

76

%

 

66.12

   

65.14

   

37.44

   

74

%

                           

Natural Gas Liquids Volumes (MBbld) (A)

                         

United States

157.9

   

140.1

   

13

%

 

138.5

   

140.4

   

134.2

   

5

%

Total

157.9

   

140.1

   

13

%

 

138.5

   

140.4

   

134.2

   

5

%

                           

Average Natural Gas Liquids Prices

      ($/Bbl) (C)

                         

United States

37.72

   

14.34

   

163

%

 

29.15

   

32.07

   

11.95

   

168

%

Composite

37.72

   

14.34

   

163

%

 

29.15

   

32.07

   

11.95

   

168

%

                           

Natural Gas Volumes (MMcfd) (A)

                         

United States

1,210

   

1,008

   

20

%

 

1,199

   

1,170

   

1,029

   

14

%

Trinidad

212

   

151

   

40

%

 

233

   

221

   

175

   

26

%

Other International (B)

   

31

   

-100

%

 

13

   

12

   

34

   

-65

%

Total

1,422

   

1,190

   

19

%

 

1,445

   

1,403

   

1,238

   

13

%

                           

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

                         

United States

4.50

   

1.49

   

203

%

 

2.99

   

4.30

   

1.38

   

213

%

Trinidad

3.39

   

2.35

   

44

%

 

3.37

   

3.38

   

2.20

   

53

%

Other International (B)

   

4.73

   

-100

%

 

5.69

   

5.67

   

4.45

   

27

%

Composite

4.34

   

1.68

   

158

%

 

3.07

   

4.17

   

1.58

   

164

%

                           

Crude Oil Equivalent Volumes (MBoed) (D)

                         

United States

807.9

   

684.7

   

18

%

 

785.2

   

776.8

   

702.3

   

11

%

Trinidad

36.5

   

26.2

   

39

%

 

40.6

   

38.5

   

29.8

   

29

%

Other International (B)

   

5.1

   

-100

%

 

2.2

   

2.0

   

5.7

   

-65

%

Total

844.4

   

716.0

   

18

%

 

828.0

   

817.3

   

737.8

   

11

%

                           

Total MMBoe (D)

77.7

   

65.9

   

18

%

 

75.3

   

223.1

   

202.2

   

10

%

                             

(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 September 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)

 

September 30,

 

December 31,

 

2021

 

2020

Current Assets

     

Cash and Cash Equivalents

4,293

   

3,329

 

Accounts Receivable, Net

2,154

   

1,522

 

Inventories

521

   

629

 

Assets from Price Risk Management Activities

18

   

65

 

Income Taxes Receivable

   

23

 

Other

363

   

294

 

Total

7,349

   

5,862

 
 

Property, Plant and Equipment

     

Oil and Gas Properties (Successful Efforts Method)

67,024

   

64,793

 

Other Property, Plant and Equipment

4,694

   

4,479

 

Total Property, Plant and Equipment

71,718

   

69,272

 

Less:  Accumulated Depreciation, Depletion and Amortization

(43,173)

   

(40,673)

 

Total Property, Plant and Equipment, Net

28,545

   

28,599

 

Deferred Income Taxes

14

   

2

 

Other Assets

1,264

   

1,342

 

Total Assets

37,172

   

35,805

 
 

Current Liabilities

     

Accounts Payable

1,972

   

1,681

 

Accrued Taxes Payable

492

   

206

 

Dividends Payable

240

   

217

 

Liabilities from Price Risk Management Activities

238

   

 

Current Portion of Long-Term Debt

38

   

781

 

Current Portion of Operating Lease Liabilities

250

   

295

 

Other

254

   

280

 

Total

3,484

   

3,460

 
       

Long-Term Debt

5,079

   

5,035

 

Other Liabilities

2,214

   

2,149

 

Deferred Income Taxes

4,630

   

4,859

 

Commitments and Contingencies

     
       

Stockholders' Equity

     

Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 585,361,866
     Shares Issued at September 30, 2021 and 583,694,850 Shares Issued at 
     December 31, 2020

206

   

206

 

Additional Paid in Capital

6,058

   

5,945

 

Accumulated Other Comprehensive Loss

(13)

   

(12)

 

Retained Earnings

15,542

   

14,170

 

Common Stock Held in Treasury, 371,249 Shares at September 30, 2021 and 
     124,265 Shares at December 31, 2020

(28)

   

(7)

 

Total Stockholders' Equity

21,765

   

20,302

 

Total Liabilities and Stockholders' Equity

37,172

   

35,805

 

 

Cash Flows Statements

In millions of USD (Unaudited)

 

3Q 2021

 

3Q 2020

 

2Q 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)

1,095

   

(42)

   

907

   

2,679

   

(942)

 

Items Not Requiring (Providing) Cash

                 

Depreciation, Depletion and Amortization

927

   

823

   

914

   

2,741

   

2,530

 

Impairments

82

   

79

   

44

   

170

   

1,957

 

Stock-Based Compensation Expenses

51

   

33

   

31

   

117

   

113

 

Deferred Income Taxes

(111)

   

(33)

   

(97)

   

(244)

   

(241)

 

(Gains) Losses on Asset Dispositions, Net

(1)

   

71

   

(51)

   

(46)

   

41

 

Other, Net

2

   

2

   

6

   

15

   

2

 

Dry Hole Costs

4

   

13

   

13

   

28

   

13

 

Mark-to-Market Commodity Derivative Contracts

                 

Total (Gains) Losses

494

   

4

   

427

   

1,288

   

(1,075)

 

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

(293)

   

275

   

(193)

   

(516)

   

999

 

Other, Net

7

   

(1)

   

   

8

   

(1)

 

Changes in Components of Working Capital and Other
     Assets and Liabilities

                 

Accounts Receivable

(145)

   

(260)

   

(186)

   

(639)

   

931

 

Inventories

(6)

   

7

   

37

   

95

   

92

 

Accounts Payable

(68)

   

(37)

   

11

   

115

   

(1,222)

 

Accrued Taxes Payable

206

   

73

   

(163)

   

286

   

12

 

Other Assets

167

   

162

   

(119)

   

(55)

   

415

 

Other Liabilities

(260)

   

51

   

32

   

(317)

   

(13)

 

Changes in Components of Working Capital Associated
     with Investing Activities

45

   

(6)

   

(54)

   

(100)

   

276

 

Net Cash Provided by Operating Activities

2,196

   

1,214

   

1,559

   

5,625

   

3,887

 

Investing Cash Flows

                 

Additions to Oil and Gas Properties

(846)

   

(469)

   

(968)

   

(2,689)

   

(2,459)

 

Additions to Other Property, Plant and Equipment

(50)

   

(18)

   

(55)

   

(147)

   

(165)

 

Proceeds from Sales of Assets

8

   

146

   

141

   

154

   

189

 

Changes in Components of Working Capital Associated 
     with Investing Activities

(45)

   

6

   

54

   

100

   

(276)

 

Net Cash Used in Investing Activities

(933)

   

(335)

   

(828)

   

(2,582)

   

(2,711)

 

Financing Cash Flows

                 

Long-Term Debt Borrowings

   

   

   

   

1,484

 

Long-Term Debt Repayments

   

   

   

(750)

   

(1,000)

 

Dividends Paid

(820)

   

(217)

   

(239)

   

(1,278)

   

(601)

 

Treasury Stock Purchased

(21)

   

(10)

   

(2)

   

(33)

   

(15)

 

Proceeds from Stock Options Exercised and Employee 
     Stock Purchase Plan

   

   

9

   

9

   

8

 

Debt Issuance Costs

   

   

   

   

(3)

 

Repayment of Finance Lease Liabilities

(9)

   

(5)

   

(9)

   

(27)

   

(13)

 

Net Cash Used in Financing Activities

(850)

   

(232)

   

(241)

   

(2,079)

   

(140)

 

Effect of Exchange Rate Changes on Cash

   

2

   

2

   

   

2

 

Increase in Cash and Cash Equivalents

413

   

649

   

492

   

964

   

1,038

 

Cash and Cash Equivalents at Beginning of Period

3,880

   

2,417

   

3,388

   

3,329

   

2,028

 

Cash and Cash Equivalents at End of Period

4,293

   

3,066

   

3,880

   

4,293

   

3,066

 

 

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.

               
 

3Q 2021

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Income (GAAP)

1,429

   

(334)

   

1,095

   

1.88

 

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

494

   

(108)

   

386

   

0.65

 

Net Cash Payments for Settlements of Commodity Derivative Contracts

(293)

   

64

   

(229)

   

(0.39)

 

Less: Gains on Asset Dispositions, Net

(1)

   

   

(1)

   

 

Add: Certain Impairments

13

   

   

13

   

0.02

 

Adjustments to Net Income

213

   

(44)

   

169

   

0.28

 
               

Adjusted Net Income (Non-GAAP)

1,642

   

(378)

   

1,264

   

2.16

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

581

 

Diluted

           

584

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

581

 

Diluted

           

584

 
                 
                 

Adjusted Net Income (Loss)

(Continued)

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

 

3Q 2020

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Loss (GAAP)

(53)

   

11

   

(42)

   

(0.07)

 

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

4

   

   

4

   

0.01

 

Net Cash Received from Settlements of Commodity Derivative Contracts

275

   

(60)

   

215

   

0.37

 

Add: Losses on Asset Dispositions, Net

71

   

(16)

   

55

   

0.09

 

Add: Certain Impairments

27

   

(7)

   

20

   

0.03

 

Adjustments to Net Loss

377

   

(83)

   

294

   

0.50

 
               

Adjusted Net Income (Non-GAAP)

324

   

(72)

   

252

   

0.43

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

579

 

Diluted

           

579

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

579

 

Diluted

           

581

 
                 
                 

Adjusted Net Income (Loss)

(Continued)

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

 

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)

 

YTD 2021

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Income (GAAP)

3,434

   

(755)

   

2,679

   

4.59

 

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

1,288

   

(282)

   

1,006

   

1.72

 

Net Cash Payments for Settlements of Commodity Derivative Contracts

(516)

   

113

   

(403)

   

(0.69)

 

Less: Gains on Asset Dispositions, Net

(46)

   

16

   

(30)

   

(0.05)

 

Add: Certain Impairments

15

   

   

15

   

0.03

 

Less: Tax Benefits Related to Exiting Canada Operations

   

(45)

   

(45)

   

(0.08)

 

Adjustments to Net Income

741

   

(198)

   

543

   

0.93

 
               

Adjusted Net Income (Non-GAAP)

4,175

   

(953)

   

3,222

   

5.52

 
               

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)

 

YTD 2020

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Loss (GAAP)

(1,167)

   

225

   

(942)

   

(1.63)

 

Adjustments:

             

Gains on Mark-to-Market Commodity Derivative Contracts

(1,075)

   

236

   

(839)

   

(1.45)

 

Net Cash Received from Settlements of Commodity Derivative Contracts

999

   

(219)

   

780

   

1.35

 

Add: Losses on Asset Dispositions, Net

41

   

(9)

   

32

   

0.06

 

Add: Certain Impairments

1,782

   

(374)

   

1,408

   

2.43

 

Adjustments to Net Loss

1,747

   

(366)

   

1,381

   

2.39

 
               

Adjusted Net Income (Non-GAAP)

580

   

(141)

   

439

   

0.76

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

579

 

Diluted

           

579

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

579

 

Diluted

           

580

 
                 
                 

Adjusted Net Income (Loss)

(Continued)

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

             
 

FY 2020

 

Before

Tax

 

Income Tax

Impact

 

After

Tax

 

Diluted

Earnings

per Share

               

Reported Net Loss (GAAP)

(739)

   

134

   

(605)

   

(1.04)

 

Adjustments:

             

Gains on Mark-to-Market Commodity Derivative Contracts

(1,145)

   

251

   

(894)

   

(1.55)

 

Net Cash Received from Settlements of Commodity Derivative Contracts

1,071

   

(235)

   

836

   

1.44

 

Add: Losses on Asset Dispositions, Net

47

   

(10)

   

37

   

0.06

 

Add: Certain Impairments

1,868

   

(392)

   

1,476

   

2.55

 

Adjustments to Net Loss

1,841

   

(386)

   

1,455

   

2.50

 
               

Adjusted Net Income (Non-GAAP)

1,102

   

(252)

   

850

   

1.46

 
               

Average Number of Common Shares (GAAP)

             

Basic

           

579

 

Diluted

           

579

 
               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

579

 

Diluted

           

581

 

 

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)

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

   

1.73

 
       

Realized Price

     

3Q 2021 Composite Average Wellhead Revenue per Boe

52.07

     

Less:  2Q 2021 Composite Average Welhead Revenue per Boe

(46.07)

     

Subtotal

6.00

     

Multiplied by: 3Q 2021 Crude Oil Equivalent Volumes (MMBoe)

77.7

     

Total Change in Revenue

466

     

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

(107)

     

Change in Net Income

359

     

Change in Diluted Earnings per Share

   

0.61

 
       

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

     

3Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative 
     Contracts

(293)

     

Less:  Income Tax Benefit (Cost)

64

     

After Tax - (a)

(229)

     

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

(193)

     

Less:  Income Tax Benefit (Cost)

42

     

After Tax - (b)

(151)

     

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

(78)

     

Change in Diluted Earnings per Share

   

(0.13)

 
       

Wellhead Volumes

     

3Q 2021 Crude Oil Equivalent Volumes (MMBoe)

77.7

     

Less:  2Q 2021 Crude Oil Equivalent Volumes (MMBoe)

(75.3)

     

Subtotal

2.3

     

Multiplied by:  3Q 2021 Composite Average Margin per Boe (Including Total
     Exploration Costs) (Non-GAAP) (refer to "Revenues, Costs and Margins Per Barrel of 
     Oil Equivalent" schedule)

24.45

     

Change in Revenue

57

     

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

(13)

     

Change in Net Income

44

     

Change in Diluted Earnings per Share

   

0.08

 
       

Operating Cost per Boe

     

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

     

Less:  3Q 2021 Total Operating Cost per Boe (including Total Exploration Costs) (Non-
     GAAP) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" 
     schedule)

(27.62)

     

Subtotal

(0.8)

     

Multiplied by:  3Q 2021 Crude Oil Equivalent Volumes (MMBoe)

77.7

     

Change in Before-Tax Net Income

(62)

     

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

14

     

Change in Net Income

(48)

     

Change in Diluted Earnings per Share

   

(0.08)

 
       

Other Items

   

(0.05)

 
       

3Q 2021 Adjusted Net Income per Share (Non-GAAP)

   

2.16

 

3Q 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.

                   
 

3Q 2021

 

2Q 2021

 

3Q 2020

 

YTD 2021

 

YTD 2020

                   

Net Cash Provided by Operating Activities (GAAP)

2,196

   

1,559

   

1,214

   

5,625

   

3,887

 
                   

Adjustments:

                 

Exploration Costs (excluding Stock-Based
     Compensation Expenses)

39

   

29

   

37

   

96

   

90

 

Changes in Components of Working Capital and
     Other Assets and Liabilities

                 

Accounts Receivable

145

   

186

   

260

   

639

   

(931)

 

Inventories

6

   

(37)

   

(7)

   

(95)

   

(92)

 

Accounts Payable

68

   

(11)

   

37

   

(115)

   

1,222

 

Accrued Taxes Payable

(206)

   

163

   

(73)

   

(286)

   

(12)

 

Other Assets

(167)

   

119

   

(162)

   

55

   

(415)

 

Other Liabilities

260

   

(32)

   

(51)

   

317

   

13

 

Changes in Components of Working Capital
     Associated with Investing Activities

(45)

   

54

   

6

   

100

   

(276)

 

Other Non-Current Income Taxes - Net Receivable

   

   

   

   

113

 

Discretionary Cash Flow (Non-GAAP)

2,296

   

2,030

   

1,261

   

6,336

   

3,599

 
                   

Discretionary Cash Flow (Non-GAAP) – Percentage

     Increase

82

%

         

76

%

   
                   

Discretionary Cash Flow (Non-GAAP)

2,296

   

2,030

   

1,261

   

6,336

   

3,599

 

Less:

                 

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

(935)

   

(972)

   

(499)

   

(2,852)

   

(2,662)

 

Free Cash Flow (Non-GAAP)

1,361

   

1,058

   

762

   

3,484

   

937

 
                   
                   

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

                   
 

3Q 2021

 

2Q 2021

 

3Q 2020

 

YTD 2021

 

YTD 2020

                   

Total Expenditures (GAAP)

962

   

1,089

   

646

   

3,118

   

3,006

 

Less:

                 

Asset Retirement Costs

(8)

   

(31)

   

(44)

   

(56)

   

(69)

 

Non-Cash Expenditures of Other Property, Plant and
     Equipment

   

   

   

   

 

Non-Cash Acquisition Costs of Unproved Properties

(15)

   

   

(80)

   

(37)

   

(128)

 

Non-Cash Finance Leases

   

   

   

(74)

   

(73)

 

Acquisition Costs of Proved Properties

(4)

   

(86)

   

(23)

   

(99)

   

(74)

 

Total Cash Capital Expenditures Before Acquisitions

     (Non-GAAP)

935

   

972

   

499

   

2,852

   

2,662

 

 

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)

                       
 

3Q 2021

 

3Q 2020

 

FY 2020

 

FY 2019

 

FY 2018

 

FY 2017

                       

Exploration and Development Drilling

653

   

378

   

2,664

   

4,951

   

4,935

   

3,132

 

Facilities

100

   

38

   

347

   

629

   

625

   

575

 

Leasehold Acquisitions

90

   

88

   

265

   

276

   

488

   

427

 

Property Acquisitions

4

   

23

   

135

   

380

   

124

   

73

 

Capitalized Interest

9

   

7

   

31

   

38

   

24

   

27

 

Subtotal

856

   

534

   

3,442

   

6,274

   

6,196

   

4,234

 

Exploration Costs

44

   

38

   

146

   

140

   

149

   

145

 

Dry Hole Costs

4

   

13

   

13

   

28

   

5

   

5

 

Exploration and Development Expenditures

904

   

585

   

3,601

   

6,442

   

6,350

   

4,384

 

Asset Retirement Costs

8

   

44

   

117

   

186

   

70

   

56

 

Total Exploration and Development Expenditures

912

   

629

   

3,718

   

6,628

   

6,420

   

4,440

 

Other Property, Plant and Equipment

50

   

17

   

395

   

272

   

286

   

173

 

Total Expenditures

962

   

646

   

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.

             
 

3Q 2021

3Q 2020

 

YTD 2021

 

YTD 2020

             

Net Income (Loss) (GAAP)

1,095

 

(42)

   

2,679

   

(942)

 
             

Adjustments:

           

Interest Expense, Net

48

 

53

   

140

   

152

 

Income Tax Provision (Benefit)

334

 

(11)

   

755

   

(225)

 

Depreciation, Depletion and Amortization

927

 

823

   

2,741

   

2,530

 

Exploration Costs

44

 

38

   

112

   

105

 

Dry Hole Costs

4

 

13

   

28

   

13

 

Impairments

82

 

79

   

170

   

1,957

 

EBITDAX (Non-GAAP)

2,534

 

953

   

6,625

   

3,590

 

(Gains) Losses on MTM Commodity Derivative Contracts

494

 

4

   

1,288

   

(1,075)

 

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

(293)

 

275

   

(516)

   

999

 

(Gains) Losses on Asset Dispositions, Net

(1)

 

71

   

(46)

   

41

 
             

Adjusted EBITDAX (Non-GAAP)

2,734

 

1,303

   

7,351

   

3,555

 
             

Adjusted EBITDAX (Non-GAAP) - Percentage Increase

110

%

   

107

%

   
             

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.

           
 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

           

Total Stockholders' Equity - (a)

21,765

   

20,881

   

20,762

 
           

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

5,117

   

5,125

   

5,133

 

Less: Cash

(4,293)

   

(3,880)

   

(3,388)

 

Net Debt (Non-GAAP) - (c)

824

   

1,245

   

1,745

 
           

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

26,882

   

26,006

   

25,895

 
           

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

22,589

   

22,126

   

22,507

 
           

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

19.0

%

 

19.7

%

 

19.8

%

           

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

3.6

%

 

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 October 29, 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 - September 2021 (closed)

 

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

 

140

   

65.59

 

October - December 2022

 

NYMEX WTI

 

140

   

65.68

 

January - March 2023

 

NYMEX WTI

 

150

   

67.92

 

April - June 2023

 

NYMEX WTI

 

120

   

67.79

 

July - September 2023

 

NYMEX WTI

 

9

   

68.00

 

 

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 - November 2021 (closed)

 

NYMEX WTI Roll Differential (1)

 

125

   

0.17

 

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 - October 2021 (closed)

 

Mont Belvieu Propane (non-Tet)

 

15

   

$

29.44

 

November - 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 - September 2021
     (closed)

 

NYMEX Henry Hub

 

500

   

2.99

   

570

   

2.81

 

October - November 2021
     (closed)

 

NYMEX Henry Hub

 

500

   

2.99

   

500

   

2.83

 

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

 

725

   

3.57

   

   

 

January - December 2023

 

NYMEX Henry Hub

 

725

   

3.18

   

   

 

January - December 2024

 

NYMEX Henry Hub

 

725

   

3.07

   

   

 

January - December 2025

 

NYMEX Henry Hub

 

725

   

3.07

   

   

 

April - September 2021
     (closed)

 

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.

 

Natural Gas Basis Swap Contracts

       

Contracts Sold

Period

 

Settlement Index

 

Volume

(MMBtud in

thousands)

 

Weighted Average Price

($/MMBtu)

January - December 2022

 

NYMEX Henry Hub HSC Differential (1)

 

140

   

$

0.01

 

January - December 2023

 

NYMEX Henry Hub HSC Differential (1)

 

65

   

0.00

 

January - December 2024

 

NYMEX Henry Hub HSC Differential (1)

 

10

   

0.00

 

January - December 2025

 

NYMEX Henry Hub HSC Differential (1)

 

10

   

0.00

 
   

(1)

This settlement index is used to fix the differential between pricing at the Houston Ship Channel and NYMEX Henry Hub prices.

 

Glossary:

$/Bbl

Dollars per barrel

$/MMBtu

Dollars per million British Thermal Units

Bbl

Barrel

EOG

EOG Resources, Inc.

HSC

Houston Ship Channel

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.

               
 

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

                   

Interest Expense, Net (GAAP)

       

274

   

282

   

237

 

Tax Benefit Imputed (based on 35%)

       

(96)

   

(99)

   

(83)

 

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

       

178

   

183

   

154

 
                   

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

       

2,583

   

(1,097)

   

(4,525)

 
                   

Total Stockholders' Equity - (d)

       

16,283

   

13,982

   

12,943

 
                   

Average Total Stockholders' Equity* - (e)

       

15,133

   

13,463

   

15,328

 
                   

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

       

6,387

   

6,986

   

6,655

 

Less:  Cash

       

(834)

   

(1,600)

   

(719)

 

Net Debt (Non-GAAP) - (g)

       

5,553

   

5,386

   

5,936

 
                   

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

       

22,670

   

20,968

   

19,598

 
                   

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

       

21,836

   

19,368

   

18,879

 
                   

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

       

20,602

   

19,124

   

20,206

 
                   

Return on Capital Employed (ROCE)

                 

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

       

13.4

%

 

-4.8

%

 

-21.6

%

                   

Return on Equity (ROE)

                 

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

       

17.1

%

 

-8.1

%

 

-29.5

%

                   

* Average for the current and immediately preceding year

                 

 

ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)

                   
         

2014

 

2013

 

2012

                   

Interest Expense, Net (GAAP)

       

201

   

235

   

214

 

Tax Benefit Imputed (based on 35%)

       

(70)

   

(82)

   

(75)

 

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

       

131

   

153

   

139

 
                   

Net Income (GAAP) - (b)

       

2,915

   

2,197

   

570

 
                   

Total Stockholders' Equity - (d)

       

17,713

   

15,418

   

13,285

 
                   

Average Total Stockholders' Equity* - (e)

       

16,566

   

14,352

   

12,963

 
                   

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

       

5,906

   

5,909

   

6,312

 

Less:  Cash

       

(2,087)

   

(1,318)

   

(876)

 

Net Debt (Non-GAAP) - (g)

       

3,819

   

4,591

   

5,436

 
                   

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

       

23,619

   

21,327

   

19,597

 
                   

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

       

21,532

   

20,009

   

18,721

 
                   

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

       

20,771

   

19,365

   

17,878

 
                   

Return on Capital Employed (ROCE)

                 

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

       

14.7

%

 

12.1

%

 

4.0

%

                   

Return on Equity (ROE)

                 

GAAP Net Income - (b) / (e)

       

17.6

%

 

15.3

%

 

4.4

%

                   

* 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.

                   
 

3Q 2021

 

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

                   

Volume - Million Barrels of Oil Equivalent - (a)

77.7

   

75.3

   

70.1

   

73.7

   

65.9

 
                   

Total Operating Revenues and Other (b)

4,765

   

4,139

   

3,694

   

2,965

   

2,246

 

Total Operating Expenses (c)

3,294

   

2,968

   

2,762

   

2,477

   

2,249

 

Operating Income (Loss) (d)

1,471

   

1,171

   

932

   

488

   

(3)

 
                   

Wellhead Revenues

                 

Crude Oil and Condensate

2,929

   

2,699

   

2,251

   

1,711

   

1,395

 

Natural Gas Liquids

548

   

367

   

314

   

229

   

185

 

Natural Gas

568

   

404

   

625

   

302

   

184

 

Total Wellhead Revenues - (e)

4,045

   

3,470

   

3,190

   

2,242

   

1,764

 
                   

Operating Costs

                 

Lease and Well

270

   

270

   

270

   

261

   

227

 

Transportation Costs

219

   

214

   

202

   

195

   

180

 

Gathering and Processing Costs

145

   

128

   

139

   

119

   

115

 

General and Administrative

142

   

120

   

110

   

113

   

125

 

Taxes Other Than Income

277

   

239

   

215

   

114

   

126

 

Interest Expense, Net

48

   

45

   

47

   

53

   

53

 

Total Operating Cost (excluding DD&A and Total Exploration

     Costs) (f)

1,101

   

1,016

   

983

   

855

   

826

 
                   

Depreciation, Depletion and Amortization (DD&A)

927

   

914

   

900

   

870

   

823

 
                   

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

2,028

   

1,930

   

1,883

   

1,725

   

1,649

 
                   

Exploration Costs

44

   

35

   

33

   

41

   

38

 

Dry Hole Costs

4

   

13

   

11

   

   

13

 

Impairments

82

   

44

   

44

   

143

   

79

 

Total Exploration Costs (GAAP)

130

   

92

   

88

   

184

   

130

 

Less:  Certain Impairments (1)

(13)

   

(1)

   

(1)

   

(86)

   

(27)

 

Total Exploration Costs (Non-GAAP)

117

   

91

   

87

   

98

   

103

 
                   

Total Operating Cost (including Total Exploration Costs

     (GAAP)) - (h)

2,158

   

2,022

   

1,971

   

1,909

   

1,779

 

Total Operating Cost (including Total Exploration Costs

     (Non-GAAP)) - (i)

2,145

   

2,021

   

1,970

   

1,823

   

1,752

 
                   

Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (GAAP))

1,887

   

1,448

   

1,219

   

333

   

(15)

 

Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (Non-GAAP))

1,900

   

1,449

   

1,220

   

419

   

12

 
                             
                             

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

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

                 
                   
 

3Q 2021

 

2Q 2021

 

1Q 2021

 

4Q 2020

 

3Q 2020

                   

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

                 
                   

Composite Average Operating Revenues and Other per Boe

    - (b) / (a)

61.33

   

54.97

   

52.70

   

40.23

   

34.08

 

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

42.40

   

39.42

   

39.40

   

33.61

   

34.13

 

Composite Average Operating Income (Loss) per Boe

    - (d) / (a)

18.93

   

15.55

   

13.30

   

6.62

   

(0.05)

 
                   

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

52.07

   

46.07

   

45.49

   

30.39

   

26.77

 
                   

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

14.19

   

13.48

   

14.02

   

11.60

   

12.56

 
                   

Composite Average Margin per Boe (excluding DD&A and

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

37.88

   

32.59

   

31.47

   

18.79

   

14.21

 
                   

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

26.12

   

25.61

   

26.86

   

23.41

   

25.05

 
                   

Composite Average Margin per Boe (excluding Total

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

25.95

   

20.46

   

18.63

   

6.98

   

1.72

 
                   

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

27.79

   

26.85

   

28.12

   

25.90

   

27.00

 
                   

Composite Average Margin per Boe (including Total

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

24.28

   

19.22

   

17.37

   

4.49

   

(0.23)

 
                   

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

                 
                   

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

27.62

   

26.85

   

28.11

   

24.72

   

26.62

 
                   

Composite Average Margin per Boe (including Total

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

24.45

   

19.25

   

17.38

   

5.67

   

0.15

 
                     

(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