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EOG Resources Reports Fourth Quarter and Full-Year 2021 Results; Announces 2022 Capital Program; Declares $1.00 per Share Special Dividend

HOUSTON, Feb. 24, 2022 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported fourth quarter and full-year 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

   

4Q 2021

 

3Q 2021

 

4Q 2020

 

FY 2021

 

FY 2020

 

GAAP

Total Revenue

6,044

 

4,765

 

2,965

 

18,642

 

11,032

 

Net Income (Loss)

1,985

 

1,095

 

337

 

4,664

 

(605)

 

Net Income (Loss) Per Share

3.39

 

1.88

 

0.58

 

7.99

 

(1.04)

 

Net Cash Provided by Operating Activities

3,166

 

2,196

 

1,121

 

8,791

 

5,008

 

Total Expenditures

1,137

 

962

 

1,107

 

4,255

 

4,113

 

Current and Long-Term Debt

5,109

 

5,117

 

5,816

 

5,109

 

5,816

 

Cash and Cash Equivalents

5,209

 

4,293

 

3,329

 

5,209

 

3,329

 

Debt-to-Total Capitalization

18.7%

 

19.0%

 

22.3%

 

18.7%

 

22.3%

 
 

Non-GAAP

Adjusted Net Income

1,806

 

1,264

 

411

 

5,028

 

850

 

Adjusted Net Income Per Share

3.09

 

2.16

 

0.71

 

8.61

 

1.46

 

Discretionary Cash Flow

3,106

 

2,296

 

1,494

 

9,442

 

5,093

 

Cash Capital Expenditures before Acquisitions

1,057

 

935

 

828

 

3,909

 

3,490

 

Free Cash Flow

2,049

 

1,361

 

666

 

5,533

 

1,603

 

Net Debt

(100)

 

824

 

2,487

 

(100)

 

2,487

 

Net Debt-to-Total Capitalization

(0.5)%

 

3.6%

 

10.9%

 

(0.5)%

 

10.9%

 

Fourth Quarter Highlights

  • Record quarterly adjusted net income of $1.8 billion, or $3.09 per share, and $2.0 billion of free cash flow
  • Capital expenditures in-line with guidance while oil production above guidance mid-point
  • Declared regular dividend of $0.75 per share and special dividend of $1.00 per share

Full Year 2021 Highlights

  • Record annual adjusted net income of $5.0 billion, or $8.61 per share
  • Generated record $5.5 billion of free cash flow
  • Reduced well costs 7%
  • Identified 700 new net double premium locations, replacing 170% of double premium wells drilled in 2021
  • Replaced more than two times 2021 production at $5.81 per Boe finding and development cost
  • Achieved significant improvements in methane emissions, water and safety performance

2022 Capital Plan

 

  • Capital plan of $4.3 to $4.7 billion returns oil production to pre-pandemic levels, maintains flat well costs, lowers per-unit cash costs and funds investments to further improve the business
  • Cash from operations before working capital funds capital plan at $32 WTI

 

 

Fourth Quarter and Full-Year 2021 Highlights

 

 


 

 

Volumes and Capital Expenditures

Wellhead Volumes

4Q 2021

4Q 2021
Guidance
Midpoint

3Q 2021

4Q 2020

FY 2021

FY 2020

Crude Oil and Condensate (MBod)

450.6

447.0

449.5

444.8

445.0

409.2

Natural Gas Liquids (MBbld)

156.9

153.0

157.9

141.4

144.5

136.0

Natural Gas (MMcfd)

1,534

1,535

1,422

1,292

1,436

1,252

Total Crude Oil Equivalent (MBoed)

863.1

855.8

844.4

801.5

828.9

753.8

 

Cash Capital Expenditures before Acquisitions ($MM)

1,057

1,050

935

828

3,909

3,490

From Ezra Yacob, Chief Executive Officer

"The outstanding fourth quarter results cap off a tremendous year for EOG – record earnings, record free cash flow, and return of cash that places EOG among the leaders in our industry and across the broader market. Reflecting these results, we are continuing to deliver on our long-standing free cash flow priorities with another $1.00 per share special dividend while further strengthening the balance sheet. Strong returns due to our premium investment standard and levered by our high-performance culture drove the results.
Double-premium, the latest increase to our investment standard that we formalized at the start of 2021, is just beginning to flow through to our bottom-line financial performance. The best is yet to come.

"The strong fourth quarter performance was also a hallmark of our consistent operational execution, as we once again delivered on our production and capital targets. Exploration efforts continued to move forward, as we progressed multiple domestic oil prospects that stand to further improve the quality of our large inventory of future drilling locations. We applied technology and innovation towards continuing improvements in our ESG performance during 2021, including methane emissions, water and safety. We are aiming to do even better this year.

"Looking to 2022, our disciplined capital plan reflects an oil market that is in position to rebalance during the year. It is focused on investments in high-return double premium wells along with exploration and infrastructure projects to further improve the business. Combined with our low cost structure and an improved commodity price environment, EOG is positioned to once again generate significant free cash flow. We remain firmly committed to our long-standing free cash flow and cash return priorities. EOG has never been better positioned to generate significant long-term shareholder value."

 


 

 

Fourth Quarter 2021 Financial Performance

 

 


 

 

Adjusted Earnings per Share 4Q 2021 vs 3Q 2021

Prices and Hedges
Natural gas, crude oil and NGL prices increased in 4Q compared with 3Q. In addition, cash paid for hedge settlements declined by $171 million in 4Q compared with 3Q.

Production Volumes
Total company equivalent volumes increased 2% compared with 3Q. Crude oil production of 450,600 Bopd was above the mid-point of the guidance range due to better well productivity. NGL production declined slightly compared with 3Q due to decreased extraction of ethane. Natural gas production increased 8% compared with 3Q, primarily due to EOG's Dorado dry gas play in south Texas.

Per-Unit Costs
Increased impairment and dry hole costs primarily related to drilling in Oman were the largest contributors to the per-unit cost increase in 4Q. Lease and well costs also contributed to the overall cost increase. These were partially offset by reductions in DD&A and G&A costs.

Other
A lower effective income tax rate was the primary contributor to the increase in earnings from this category.

Change in Cash 4Q 2021 vs 3Q 2021

Free Cash Flow
EOG generated discretionary cash flow (net cash provided by operating activities before exploration costs and changes in working capital) of $3.1 billion in 4Q. The company incurred $1.1 billion of capital expenditures, resulting in $2.0 billion of free cash flow.

Capital Expenditures
Capital expenditures of $1.1 billion were in-line with the mid-point of the guidance range. EOG has continued to be successful offsetting inflationary price pressures with additional efficiencies and other operating improvements.

Dividends
EOG paid $0.2 billion of regular dividends and $1.2 billion of special dividends in 4Q

 


 

  

Full-Year 2021 Financial Performance

 

 


 

 

Adjusted Earnings per Share 2021 vs 2020

Prices and Hedges
Crude oil prices increased by 77% in 2021 compared with 2020, while prices for NGLs and natural gas more than doubled. Higher prices along with increased production volumes generated a wellhead revenue increase of $8.1 billion, or 111%, in 2021 compared with 2020. This was partially offset by an increase in cash paid for hedge settlements of $1.7 billion from 2020 to 2021.

Production Volumes
Total company equivalent production increased 10% in 2021 compared with 2020, when EOG shut in certain wells in response to low crude oil prices. Crude oil volumes in 2021 were 445,000 Bopd, 9% higher than 2020 and consistent with EOG's plan to maintain production at 4Q 2020 levels. NGL volumes increased 6% while natural gas volumes increased 15%.

Per-Unit Costs
Impairments, transportation and G&P costs increased in 2021 compared with 2020, mostly offset by reductions in DD&A, LOE and G&A costs.

Other
Per-unit taxes other than income increased by $1.73 per Boe in 2021 compared with 2020, due to increased product prices, and was the largest contributor to the reduction in earnings from this category.

Change in Cash 2021 vs 2020

Free Cash Flow
EOG generated discretionary cash flow (net cash provided by operating activities before exploration costs and changes in working capital) of $9.4 billion in 2021. The company incurred $3.9 billion of capital expenditures, resulting in $5.5 billion of free cash flow.

Dividend and Debt
EOG doubled its regular dividend rate during 2021, from $1.50 per share at year-end 2020 to $3.00 per share by year-end 2021. In addition, EOG paid $3.00 per share in special dividends during 2021. Altogether, EOG returned $2.7 billion to shareholders in 2021. Also, EOG repaid with cash on hand the $750 million principal amount of notes that matured in February 2021.

 


 

  

Fourth Quarter 2021 Operating Performance

 

 


 

 

Lease and Well
Per-unit LOE costs were above the guidance mid- point and prior periods due to higher costs for fuel, lease maintenance and remediation.

Transportation, Gathering and Processing
Per-unit transportation and G&P costs in 4Q were slightly below the guidance midpoints and in-line with 3Q. Costs increased compared with the prior year period primarily due to higher fuel costs.

Depreciation, Depletion and Amortization
The addition of reserves from new wells at lower finding costs, driven by EOG's double-premium drilling program, continues to lower DD&A costs. Per-unit DD&A costs were below the guidance midpoint and declined 4% and 3% compared with 3Q 2021 and 4Q 2020, respectively.

General and Administrative
Per-unit G&A costs in 4Q were above the guidance midpoint and the prior year due to higher employee related costs.

 


 

  

2021 Reserves and Premium Location Additions; Special Dividend

 

 


 

 

Finding and Development Cost
Finding and development cost, excluding price revisions, declined 17% YoY in 2021 to $5.81 per Boe. Proved developed finding cost, excluding price revisions, was $7.98 per Boe in 2021. For the 34th consecutive year, internal reserves estimates were within five percent of estimates independently prepared by DeGolyer and McNaughton.

Reserve Replacement
Extensions and discoveries, net of revisions other than price, added 644 MMBoe of proved reserves in 2021. Revisions other than price reduced proved reserves primarily due to the high-grading of our future drilling plan. Proved undeveloped locations that did not meet EOG's double premium standard were replaced with fewer, more productive double-premium locations. Reserves from these high-graded proved undeveloped locations are included as part of reserve additions from extensions and discoveries. Net proved reserve additions from all sources, excluding price revisions, replaced 208% of 2021 production.

2021 Premium Location Additions
EOG identified 700 new net double-premium locations in 2021, replacing 170% of the approximately 410 net double-premium wells drilled in 2021. The new double-premium locations are spread across EOG's portfolio of high-return plays. The double-premium inventory increased to 6,000 net locations from 5,700 previously and represents more than 11 years of drilling at EOG's current pace. EOG's total premium inventory of 11,500 net undrilled locations remained unchanged in 2021.

Regular Dividend and Special Dividend
The Board of Directors today declared a dividend of $0.75 per share on EOG's common stock. The dividend will be payable April 29, 2022, to stockholders of record as of April 15, 2022. The indicated annual rate is $3.00 per share. The Board of Directors today also declared a special dividend of $1.00 per share on EOG's Common Stock. The special dividend will be payable March 29, 2022, to stockholders of record as of March 15, 2022

 


 

2021 ESG Performance and 2022 Capital Program

 

 


 

 

Further Improvements to Strong ESG Track Record

  • ~25% Reduction in Methane Emissions Percentage
  • 99.8% Wellhead Gas Capture
  • 55% of Water Sourced from Reuse
  • 10% Reduction in Total Recordable Incident Rate

2021 ESG Performance – Preliminary Results
EOG reduced its methane emissions percentage by approximately 25% during 2021. Reduced emissions associated with pneumatic controllers and lower fugitive emissions contributed to the reduction. Wellhead gas capture increased to 99.8% from 99.6% in 2020. Water sourced from reuse increased to 55% from 46% in 2020. Finally, EOG improved its safety performance in 2021, with a reduction of 10% in the total recordable incident rate compared with 2020. The company's GHG intensity rate increased slightly in 2021 due to increased compression for gas gathering. EOG remains confident in achieving its 2025 emissions goals and its ambition to reach net zero scope 1 and scope 2 emissions by 2040.

2022 Capital Program2
Total expenditures for 2022 are expected to range from $4.3 to $4.7 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, other property, plant and equipment, and excluding property acquisitions, asset retirement costs and non-cash exchanges. The capital program also excludes certain exploration costs incurred as operating expenses. The disciplined capital program is focused on high-return investment in EOG's double-premium drilling inventory and returns oil production back to pre-pandemic levels of 455,000 to 467,000 Bopd.

Approximately $3 billion of the capital program is allocated to investment in EOG's existing premium areas. The capital program also funds investment in international plays, high-potential exploration drilling across multiple prospects and investment in various cost-reduction, infrastructure and environmental projects. The total capital program can be funded from cash flow provided by operating activities before changes in working capital at a $32 WTI oil price. EOG plans to complete 570 net wells in 2022 compared with 519 net wells in 2021, including an additional 20 net wells in the Dorado natural gas play and 10 additional net wells in new high potential exploration prospects.

 


 

 

Fourth Quarter 2021 Results vs Guidance

 

(Unaudited)

Crude Oil and Condensate Volumes (MBod)

4Q 2021

4Q 2021
Guidance
Midpoint

Variance

3Q 2021

2Q 2021

1Q 2021

4Q 2020

United States

449.7

446.0

3.7

448.3

446.9

428.7

442.4

Trinidad

0.9

1.0

(0.1)

1.2

1.7

2.2

2.3

Other International

0.0

0.0

0.0

0.0

0.0

0.1

0.1

Total

450.6

447.0

3.6

449.5

448.6

431.0

444.8

Natural Gas Liquids Volumes (MBbld)

Total

156.9

153.0

3.9

157.9

138.5

124.3

141.4

Natural Gas Volumes (MMcfd)

United States

1,328

1,335

(7)

1,210

1,199

1,100

1,075

Trinidad

206

200

6

212

233

217

192

Other International

0

0

0

0

13

25

25

Total

1,534

1,535

(1)

1,422

1,445

1,342

1,292

 

Total Crude Oil Equivalent Volumes (MBoed)

863.1

855.8

7.3

844.4

828.0

778.9

801.5

Total MMBoe

79.4

78.7

0.7

77.7

75.3

70.1

73.7

 

Benchmark Price

Oil (WTI) ($/Bbl)

77.17

   

70.55

66.06

57.80

42.67

Natural Gas (HH) ($/Mcf)

5.83

   

4.01

2.83

2.69

2.65

 

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

United States

1.14

0.70

0.44

0.33

0.10

0.27

(0.81)

Trinidad

(10.31)

(11.00)

0.69

(10.36)

(9.80)

(8.03)

(9.76)

 

Natural Gas Liquids - Realizations as % of WTI

52.4%

55.0%

(2.6%)

53.5%

44.1%

48.5%

41.1%

 

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

United States

0.57

1.10

(0.53)

0.49

0.16

2.83

(0.36)

Natural Gas Realizations ($/Mcf)

Trinidad

3.48

3.45

0.03

3.39

3.37

3.38

3.57

 

Total Expenditures (GAAP) ($MM)

1,137

   

962

1,089

1,067

1,107

Capital Expenditures (non-GAAP) ($MM)

1,057

1,050

7

935

972

945

828

 

Operating Unit Costs ($/Boe)

Lease and Well

4.09

3.75

0.34

3.48

3.58

3.85

3.54

Transportation Costs

2.87

2.95

(0.08)

2.82

2.84

2.88

2.64

Gathering and Processing

1.85

1.90

(0.05)

1.87

1.70

1.98

1.62

General and Administrative

1.75

1.55

0.20

1.83

1.59

1.57

1.54

Cash Operating Costs

10.56

10.15

0.41

10.00

9.71

10.28

9.34

Depreciation, Depletion and Amortization

11.46

11.70

(0.24)

11.93

12.13

12.84

11.81

 

Expenses ($MM)

Exploration and Dry Hole

85

43

42

48

49

44

40

Impairment (GAAP)

206

   

82

44

44

143

Impairment (excluding certain impairments (non-GAAP))

206

120

86

69

43

43

57

Capitalized Interest

9

8

1

8

8

8

7

Net Interest

38

45

(7)

48

45

47

53

 

Taxes Other Than Income (% of Wellhead Revenue)

6.8%

7.0%

(0.2%)

6.8%

6.9%

6.7%

5.1%

Income Taxes

Effective Rate

20.5%

23.5%

(3.0%)

23.4%

19.3%

23.2%

21.1%

Deferred Ratio

23%

13%

11%

(33%)

(45%)

(18%)

60%

 

 


 

  

First Quarter and Full-Year 2022 Guidance2 

   

(Unaudited)

 

See "Endnotes" below for related discussion and definitions.

 

1Q 2022
Guidance Range

 

FY 2022
Guidance Range

2021
Actual

2020

Actual

Crude Oil and Condensate Volumes (MBod)

                 

United States

442.0

-

452.0

 

454.5

-

466.5

443.4

408.1

Trinidad

0.7

-

0.9

 

0.4

-

0.6

1.5

1.0

Other International

0.0

-

0.0

 

0.0

-

0.0

0.1

0.1

Total

442.7

-

452.9

 

454.9

-

467.1

445.0

409.2

Natural Gas Liquids Volumes (MBbld)

                 

Total

182.0

-

192.0

 

170.0

-

210.0

144.5

136.0

Natural Gas Volumes (MMcfd)

                 

United States

1,200

-

1,270

 

1,240

-

1,340

1,210

1,040

Trinidad

185

-

215

 

160

-

200

217

180

Other International

0

-

0

 

0

-

0

9

32

Total

1,385

-

1,485

 

1,400

-

1,540

1,436

1,252

Crude Oil Equivalent Volumes (MBoed)

                 

United States

824.0

-

855.7

 

831.2

-

899.8

789.6

717.5

Trinidad

31.5

-

36.7

 

27.1

-

33.9

37.7

30.9

Other International

0.0

-

0.0

 

0.0

-

0.0

1.6

5.4

Total

855.5

-

892.4

 

858.3

-

933.7

828.9

753.8

                   

Benchmark Price

                 

Oil (WTI) ($/Bbl)

             

67.96

39.40

Natural Gas (HH) ($/Mcf)

             

3.85

2.08

                   

Crude Oil and Condensate Differentials - above (below) WTI 3 ($/Bbl)

   

United States

0.50

-

2.50

 

0.50

-

2.50

0.58

(0.75)

Trinidad

(12.00)

-

(10.00)

 

(11.00)

-

(9.00)

(11.70)

(9.20)

Natural Gas Liquids - Realizations as % of WTI

                 

Total

37%

-

47%

 

34%

-

49%

50.5%

34.0%

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

   

United States

0.15

-

1.65

 

(0.30)

-

1.70

1.03

(0.47)

Natural Gas Realizations ($/Mcf)

                 

Trinidad

3.10

-

3.60

 

2.90

-

3.90

3.40

2.57

                   

Total Expenditures (GAAP) ($MM)

             

4,255

4,113

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

1,000

-

1,200

 

4,300

-

4,700

3,909

3,490

                   

Operating Unit Costs ($/Boe)

                 

Lease and Well

3.60

-

4.20

 

3.45

-

4.05

3.75

3.85

Transportation Costs

2.65

-

3.05

 

2.60

-

3.10

2.85

2.66

Gathering and Processing

1.75

-

1.95

 

1.65

-

1.95

1.85

1.66

General and Administrative

1.60

-

1.70

 

1.65

-

1.75

1.69

1.75

Cash Operating Costs

9.60

-

10.90

 

9.35

-

10.85

10.14

9.92

Depreciation, Depletion and Amortization

10.50

-

11.00

 

10.15

-

11.15

12.07

12.32

                   

Expenses ($MM)

                 

Exploration and Dry Hole

40

-

50

 

150

-

190

225

159

Impairment (GAAP)

             

376

2,100

Impairment (excluding certain impairments (non-GAAP))

60

-

100

 

300

-

340

361

232

Capitalized Interest

5

-

10

 

30

-

40

33

31

Net Interest

40

-

45

 

165

-

175

178

205

                   

Taxes Other Than Income (% of Wellhead Revenue)

6.5%

-

8.5%

 

7.0%

-

8.0%

6.8%

6.6%

Income Taxes

                 

Effective Rate

20%

-

25%

 

20%

-

25%

21.4%

18.2%

Current Tax (Benefit) / Expense ($MM)

440

-

540

 

1,700

-

2,100

1,393

(61)

 

 

 

 


 

    

Fourth Quarter and Full-Year 2021 Results Webcast
Friday, February 25, 2022, 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)

Includes gathering, processing and marketing revenue, other revenue, marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.

   

2)

The forecast items for the first quarter and full year 2022 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, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs, Non-Cash Exchanges and Transactions and certain exploration costs incurred as operating expenses.

 

Glossary

 

Acq

Acquisitions

ATROR

After-tax rate of return

Bbl

Barrel

Bn

Billion

Boe

Barrels of oil equivalent

Bopd

Barrels of oil per day

CAGR

Compound annual growth rate

Capex

Capital expenditures

CFO

Cash flow provided by operating activities before changes in working capital

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," "ambition," "initiative," "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 initiatives, plans, goals, ambitions or targets 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 (NGLs), 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, NGLs 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 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 climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax legislation); environmental, health and safety laws and regulations relating to 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;
  • the impact of climate change-related policies and initiatives at the corporate and/or investor community levels and other potential developments related to climate change, such as (but not limited to) changes in consumer and industrial/commercial behavior, preferences and attitudes with respect to the generation and consumption of energy; increased availability of, and increased consumer and industrial/commercial demand for, competing energy sources (including alternative energy sources); technological advances with respect to the generation, transmission, storage and consumption of energy; alternative fuel requirements; energy conservation measures; decreased demand for, and availability of, services and facilities related to the exploration for, and production of, crude oil, NGLs and natural gas; and negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, crude oil, NGLs and natural gas;
  • 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, economically and in compliance with
  • applicable laws and regulations;
  • competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties;
  • the availability and cost of, and competition in the oil and gas exploration and production industry for, 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 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 this Annual Report on Form 10-K 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, 2021, 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)

       
 

4Q 2021

 

3Q 2021

 

4Q 2020

 

FY 2021

 

FY 2020

Operating Revenues and Other

               

Crude Oil and Condensate

3,246

 

2,929

 

1,711

 

11,125

 

5,786

Natural Gas Liquids

583

 

548

 

229

 

1,812

 

668

Natural Gas

847

 

568

 

302

 

2,444

 

837

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

136

 

(494)

 

70

 

(1,152)

 

1,145

Gathering, Processing and Marketing

1,232

 

1,186

 

643

 

4,288

 

2,583

Gains (Losses) on Asset Dispositions, Net

(29)

 

1

 

(6)

 

17

 

(47)

Other, Net

29

 

27

 

16

 

108

 

60

Total

6,044

 

4,765

 

2,965

 

18,642

 

11,032

                   

Operating Expenses

                 

Lease and Well

325

 

270

 

261

 

1,135

 

1,063

Transportation Costs

228

 

219

 

195

 

863

 

735

Gathering and Processing Costs

147

 

145

 

119

 

559

 

459

Exploration Costs

42

 

44

 

41

 

154

 

146

Dry Hole Costs

43

 

4

 

 

71

 

13

Impairments

206

 

82

 

143

 

376

 

2,100

Marketing Costs

1,160

 

1,184

 

621

 

4,173

 

2,698

Depreciation, Depletion and Amortization

910

 

927

 

870

 

3,651

 

3,400

General and Administrative

139

 

142

 

113

 

511

 

484

Taxes Other Than Income

316

 

277

 

114

 

1,047

 

478

Total

3,516

 

3,294

 

2,477

 

12,540

 

11,576

                   

Operating Income (Loss)

2,528

 

1,471

 

488

 

6,102

 

(544)

Other Income (Expense), Net

9

 

6

 

(7)

 

9

 

10

Income (Loss) Before Interest Expense
     and Income Taxes

2,537

 

1,477

 

481

 

6,111

 

(534)

Interest Expense, Net

38

 

48

 

53

 

178

 

205

Income (Loss) Before Income Taxes

2,499

 

1,429

 

428

 

5,933

 

(739)

Income Tax Provision (Benefit)

514

 

334

 

91

 

1,269

 

(134)

Net Income (Loss)

1,985

 

1,095

 

337

 

4,664

 

(605)

                   

Dividends Declared per Common Share

2.7500

 

0.4125

 

0.3750

 

4.9875

 

1.5000

Net Income (Loss) Per Share

                 

Basic

3.42

 

1.88

 

0.58

 

8.03

 

(1.04)

Diluted

3.39

 

1.88

 

0.58

 

7.99

 

(1.04)

Average Number of Common Shares

                 

Basic

581

 

581

 

580

 

581

 

579

Diluted

585

 

584

 

581

 

584

 

579

 

Wellhead Volumes and Prices

 

(Unaudited)

 

4Q 2021

 

4Q 2020

 

% Change

 

3Q 2021

 

FY 2021

 

FY 2020

 

% Change

                           

Crude Oil and Condensate Volumes
     (MBbld) (A)

                     

United States

449.7

 

442.4

 

2 %

 

448.3

 

443.4

 

408.1

 

9 %

Trinidad

0.9

 

2.3

 

-61 %

 

1.2

 

1.5

 

1.0

 

50 %

Other International (B)

 

0.1

 

-100 %

 

 

0.1

 

0.1

 

0 %

Total

450.6

 

444.8

 

1 %

 

449.5

 

445.0

 

409.2

 

9 %

                           

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

                         

United States

78.31

 

41.86

 

87 %

 

70.88

 

68.54

 

38.65

 

77 %

Trinidad

66.86

 

32.91

 

103 %

 

60.19

 

56.26

 

30.20

 

86 %

Other International (B)

 

35.90

 

-100 %

 

 

42.36

 

43.08

 

-2 %

Composite

78.29

 

41.81

 

87 %

 

70.85

 

68.50

 

38.63

 

77 %

                           

Natural Gas Liquids Volumes (MBbld) (A)

                         

United States

156.9

 

141.4

 

11 %

 

157.9

 

144.5

 

136.0

 

6 %

Total

156.9

 

141.4

 

11 %

 

157.9

 

144.5

 

136.0

 

6 %

                           

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

                         

United States

40.40

 

17.54

 

130 %

 

37.72

 

34.35

 

13.41

 

156 %

Composite

40.40

 

17.54

 

130 %

 

37.72

 

34.35

 

13.41

 

156 %

                           

Natural Gas Volumes (MMcfd) (A)

                         

United States

1,328

 

1,075

 

24 %

 

1,210

 

1,210

 

1,040

 

16 %

Trinidad

206

 

192

 

7 %

 

212

 

217

 

180

 

21 %

Other International (B)

 

25

 

-100 %

 

 

9

 

32

 

-72 %

Total

1,534

 

1,292

 

19 %

 

1,422

 

1,436

 

1,252

 

15 %

                           

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

                         

United States

6.40

 

2.29

 

180 %

 

4.50

 

4.88

 

1.61

 

203 %

Trinidad

3.48

 

3.57

 

-3 %

 

3.39

 

3.40

 

2.57

 

32 %

Other International (B)

 

5.47

 

-100 %

 

 

5.67

 

4.66

 

22 %

Composite

6.00

 

2.54

 

136 %

 

4.34

 

4.66

 

1.83

 

155 %

                           

Crude Oil Equivalent Volumes (MBoed) (D)

                         

United States

827.8

 

763.0

 

8 %

 

807.9

 

789.6

 

717.5

 

10 %

Trinidad

35.3

 

34.2

 

3 %

 

36.5

 

37.7

 

30.9

 

22 %

Other International (B)

 

4.3

 

-100 %

 

 

1.6

 

5.4

 

-70 %

Total

863.1

 

801.5

 

8 %

 

844.4

 

828.9

 

753.8

 

10 %

                           

Total MMBoe (D)

79.4

 

73.7

 

8 %

 

77.7

 

302.5

 

275.9

 

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

 

December 31,

 

December 31,

 

2021

 

2020

Current Assets

     

Cash and Cash Equivalents

5,209

 

3,329

Accounts Receivable, Net

2,335

 

1,522

Inventories

584

 

629

Assets from Price Risk Management Activities

 

65

Income Taxes Receivable

 

23

Other

456

 

294

Total

8,584

 

5,862

 

Property, Plant and Equipment

     

Oil and Gas Properties (Successful Efforts Method)

67,644

 

64,793

Other Property, Plant and Equipment

4,753

 

4,479

Total Property, Plant and Equipment

72,397

 

69,272

Less:  Accumulated Depreciation, Depletion and Amortization

(43,971)

 

(40,673)

Total Property, Plant and Equipment, Net

28,426

 

28,599

Deferred Income Taxes

11

 

2

Other Assets

1,215

 

1,342

Total Assets

38,236

 

35,805

 

Current Liabilities

     

Accounts Payable

2,242

 

1,681

Accrued Taxes Payable

518

 

206

Dividends Payable

436

 

217

Liabilities from Price Risk Management Activities

269

 

Current Portion of Long-Term Debt

37

 

781

Current Portion of Operating Lease Liabilities

240

 

295

Other

300

 

280

Total

4,042

 

3,460

       

Long-Term Debt

5,072

 

5,035

Other Liabilities

2,193

 

2,149

Deferred Income Taxes

4,749

 

4,859

Commitments and Contingencies

     
       

Stockholders' Equity

     

Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 585,521,512
     Shares and 583,694,850 Shares Issued at December 31, 2021 and 2020,
     respectively

206

 

206

Additional Paid in Capital

6,087

 

5,945

Accumulated Other Comprehensive Loss

(12)

 

(12)

Retained Earnings

15,919

 

14,170

Common Stock Held in Treasury, 257,268 Shares and 124,265 Shares at
     December 31, 2021 and 2020, respectively

(20)

 

(7)

Total Stockholders' Equity

22,180

 

20,302

Total Liabilities and Stockholders' Equity

38,236

 

35,805

Cash Flow Statements

 

In millions of USD (Unaudited)

                 
 

4Q 2021

 

4Q 2020

 

3Q 2021

 

FY 2021

 

FY 2020

Cash Flows from Operating Activities

                 

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

                 

Net Income (Loss)

1,985

 

337

 

1,095

 

4,664

 

(605)

Items Not Requiring (Providing) Cash

                 

Depreciation, Depletion and Amortization

910

 

870

 

927

 

3,651

 

3,400

Impairments

206

 

143

 

82

 

376

 

2,100

Stock-Based Compensation Expenses

35

 

33

 

51

 

152

 

146

Deferred Income Taxes

122

 

55

 

(111)

 

(122)

 

(186)

(Gains) Losses on Asset Dispositions, Net

29

 

6

 

(1)

 

(17)

 

47

Other, Net

(2)

 

10

 

2

 

13

 

12

Dry Hole Costs

43

 

 

4

 

71

 

13

Mark-to-Market Commodity Derivative Contracts

                 

Total (Gains) Losses

(136)

 

(70)

 

494

 

1,152

 

(1,145)

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

(122)

 

72

 

(293)

 

(638)

 

1,071

Other, Net

(1)

 

2

 

7

 

7

 

1

Changes in Components of Working Capital and Other
     Assets and Liabilities

                 

Accounts Receivable

(182)

 

(464)

 

(145)

 

(821)

 

467

Inventories

(108)

 

31

 

(6)

 

(13)

 

123

Accounts Payable

341

 

427

 

(68)

 

456

 

(795)

Accrued Taxes Payable

26

 

(61)

 

206

 

312

 

(49)

Other Assets

(81)

 

(90)

 

167

 

(136)

 

325

Other Liabilities

201

 

21

 

(260)

 

(116)

 

8

Changes in Components of Working Capital Associated
     with Investing Activities

(100)

 

(201)

 

45

 

(200)

 

75

Net Cash Provided by Operating Activities

3,166

 

1,121

 

2,196

 

8,791

 

5,008

Investing Cash Flows

                 

Additions to Oil and Gas Properties

(949)

 

(785)

 

(846)

 

(3,638)

 

(3,244)

Additions to Other Property, Plant and Equipment

(65)

 

(56)

 

(50)

 

(212)

 

(221)

Proceeds from Sales of Assets

77

 

3

 

8

 

231

 

192

Changes in Components of Working Capital Associated
     with Investing Activities

100

 

201

 

(45)

 

200

 

(75)

Net Cash Used in Investing Activities

(837)

 

(637)

 

(933)

 

(3,419)

 

(3,348)

Financing Cash Flows

                 

Long-Term Debt Borrowings

 

 

 

 

1,484

Long-Term Debt Repayments

 

 

 

(750)

 

(1,000)

Dividends Paid

(1,406)

 

(220)

 

(820)

 

(2,684)

 

(821)

Treasury Stock Purchased

(8)

 

(1)

 

(21)

 

(41)

 

(16)

Proceeds from Stock Options Exercised and Employee
     Stock Purchase Plan

10

 

8

 

 

19

 

16

Debt Issuance Costs

 

 

 

 

(3)

Repayment of Finance Lease Liabilities

(10)

 

(6)

 

(9)

 

(37)

 

(19)

Net Cash Used in Financing Activities

(1,414)

 

(219)

 

(850)

 

(3,493)

 

(359)

Effect of Exchange Rate Changes on Cash

1

 

(2)

 

 

1

 

Increase in Cash and Cash Equivalents

916

 

263

 

413

 

1,880

 

1,301

Cash and Cash Equivalents at Beginning of Period

4,293

 

3,066

 

3,880

 

3,329

 

2,028

Cash and Cash Equivalents at End of Period

5,209

 

3,329

 

4,293

 

5,209

 

3,329

 

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.

               
 

4Q 2021

 

Before
Tax

 

Income
Tax
Impact

 

After
Tax

 

Diluted
Earnings
per Share

               

Reported Net Income (GAAP)

2,499

 

(514)

 

1,985

 

3.39

Adjustments:

             

Gains on Mark-to-Market Commodity Derivative Contracts

(136)

 

32

 

(104)

 

(0.17)

Net Cash Payments for Settlements of Commodity Derivative Contracts

(122)

 

25

 

(97)

 

(0.17)

Add: Losses on Asset Dispositions, Net

29

 

(7)

 

22

 

0.04

Add: Certain Impairments

 

 

 

Adjustments to Net Income

(229)

 

50

 

(179)

 

(0.30)

               

Adjusted Net Income (Non-GAAP)

2,270

 

(464)

 

1,806

 

3.09

               

Average Number of Common Shares (GAAP)

             

Basic

           

581

Diluted

           

585

               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

581

Diluted

           

585

             
 

Adjusted Net Income (Loss)

(Continued)

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

 

4Q 2020

 

Before
Tax

 

Income
Tax
Impact

 

After
Tax

 

Diluted
Earnings
per Share

               

Reported Net Income (GAAP)

428

 

(91)

 

337

 

0.58

Adjustments:

             

Gains on Mark-to-Market Commodity Derivative Contracts

(70)

 

15

 

(55)

 

(0.10)

Net Cash Received from Settlements of Commodity Derivative Contracts

72

 

(16)

 

56

 

0.10

Add: Losses on Asset Dispositions, Net

6

 

(1)

 

5

 

0.01

Add: Certain Impairments

86

 

(18)

 

68

 

0.12

Adjustments to Net Income

94

 

(20)

 

74

 

0.13

               

Adjusted Net Income (Non-GAAP)

522

 

(111)

 

411

 

0.71

               

Average Number of Common Shares (GAAP)

             

Basic

           

580

Diluted

           

581

               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

580

Diluted

           

581

             
 

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)

             
 

FY 2021

 

Before
Tax

 

Income
Tax
Impact

 

After
Tax

 

Diluted
Earnings
per Share

               

Reported Net Income (GAAP)

5,933

 

(1,269)

 

4,664

 

7.99

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

1,152

 

(250)

 

902

 

1.54

Net Cash Payments for Settlements of Commodity Derivative Contracts

(638)

 

138

 

(500)

 

(0.86)

Less: Gains on Asset Dispositions, Net

(17)

 

9

 

(8)

 

(0.01)

Add: Certain Impairments

15

 

 

15

 

0.03

Less: Tax Benefits Related to Exiting Canada Operations

 

(45)

 

(45)

 

(0.08)

Adjustments to Net Income

512

 

(148)

 

364

 

0.62

               

Adjusted Net Income (Non-GAAP)

6,445

 

(1,417)

 

5,028

 

8.61

               

Average Number of Common Shares (GAAP)

             

Basic

           

581

Diluted

           

584

               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

581

Diluted

           

584

 
 

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)

       

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

   

2.16

       

Realized Price

     

4Q 2021 Composite Average Wellhead Revenue per Boe

58.88

   

Less:  3Q 2021 Composite Average Welhead Revenue per Boe

(52.07)

   

Subtotal

6.81

   

Multiplied by: 4Q 2021 Crude Oil Equivalent Volumes (MMBoe)

79.4

   

Total Change in Revenue

541

   

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

(124)

   

Change in Net Income

416

   

Change in Diluted Earnings per Share

   

0.71

       

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

     

4Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative
     Contracts

(122)

   

Less:  Income Tax Benefit (Cost)

25

   

After Tax - (a)

(97)

   

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

(293)

   

Less:  Income Tax Benefit (Cost)

64

   

After Tax - (b)

(229)

   

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

132

   

Change in Diluted Earnings per Share

   

0.23

       

Wellhead Volumes

     

4Q 2021 Crude Oil Equivalent Volumes (MMBoe)

79.4

   

Less:  3Q 2021 Crude Oil Equivalent Volumes (MMBoe)

(77.7)

   

Subtotal

1.7

   

Multiplied by:  4Q 2021 Composite Average Margin per Boe (Non-GAAP) (Including
     Total Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil
     Equivalent" schedule)

28.74

   

Change in Revenue

49

   

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

(11)

   

Change in Net Income

38

   

Change in Diluted Earnings per Share

   

0.07

       
 

Adjusted Net Income Per Share

(Continued)

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

       

Operating Cost per Boe

     

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

27.62

   

Less:  3Q 2021 Taxes Other Than Income

(3.57)

   

Less:  4Q 2021 Total Operating Cost per Boe (Non-GAAP) (including Total
     Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil
     Equivalent" schedule)

(30.14)

   

Add: 4Q 2021 Taxes Other Than Income

3.98

   

Subtotal

(2.11)

   

Multiplied by:  4Q 2021 Crude Oil Equivalent Volumes (MMBoe)

79.4

   

Change in Before-Tax Net Income

(168)

   

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

39

   

Change in Net Income

(129)

   

Change in Diluted Earnings per Share

   

(0.22)

       

Other (1)

   

0.14

       

4Q 2021 Adjusted Net Income per Share (Non-GAAP)

   

3.09

       

4Q 2021 Average Number of Common Shares (Non-GAAP) - Diluted

585

   
       

(1) Includes gathering, processing and marketing revenue, other revenue, marketing costs, taxes other than income, other income (expense), interest expense and the effect of changes in the effective income tax rate.

 

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)

       

FY 2020 Adjusted Net Income per Share (Non-GAAP)

   

1.46

       

Realized Price

     

FY 2021 Composite Average Wellhead Revenue per Boe

50.84

   

Less:  FY 2020 Composite Average Wellhead Revenue per Boe

(26.42)

   

Subtotal

24.42

   

Multiplied by: FY 2021 Crude Oil Equivalent Volumes (MMBoe)

302.5

   

Total Change in Revenue

7,388

   

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

(1,699)

   

Change in Net Income

5,689

   

Change in Diluted Earnings per Share

   

9.74

       

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

     

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

(638)

   

Less:  Income Tax Benefit (Cost)

138

   

After Tax - (a)

(500)

   

FY 2020 Net Cash Received (Paid) from Settlement of Commodity Derivative
     Contracts

1,071

   

Less:  Income Tax Benefit (Cost)

(235)

   

After Tax - (b)

836

   

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

(1,336)

   

Change in Diluted Earnings per Share

   

(2.29)

       

Wellhead Volumes

     

FY 2021 Crude Oil Equivalent Volumes (MMBoe)

302.5

   

Less:  FY 2020 Crude Oil Equivalent Volumes (MMBoe)

(275.9)

   

Subtotal

26.7

   

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

22.64

   

Change in Revenue

604

   

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

(139)

   

Change in Net Income

465

   

Change in Diluted Earnings per Share

   

0.80

       
 

Adjusted Net Income per Share

(Continued)

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

       

Operating Cost per Boe

     

FY 2020 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration
     Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
     schedule)

26.13

   

Less: 3Q 2021 Taxes Other Than Income

(1.73)

   

Less:  FY 2021 Total Operating Cost per Boe (Non-GAAP) (including Total
     Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)

(28.20)

   

Add: 4Q 2021 Taxes Other Than Income

3.46

   

Subtotal

(0.34)

   

Multiplied by:  FY 2021 Crude Oil Equivalent Volumes (MMBoe)

302.5

   

Change in Before-Tax Net Income

(103)

   

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

24

   

Change in Net Income

(79)

   

Change in Diluted Earnings per Share

   

(0.14)

Other (1)

   

(0.96)

       

FY 2021 Adjusted Net Income per Share (Non-GAAP)

   

8.61

       

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

584

   
       

(1) Includes gathering, processing and marketing revenue, other revenue, marketing costs, taxes other than income, other income (expense), interest expense and the effect of changes in the effective income tax rate.

 

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.

                   
 

4Q 2021

 

3Q 2021

 

4Q 2020

 

FY 2021

 

FY 2020

                   

Net Cash Provided by Operating Activities (GAAP)

3,166

 

2,196

 

1,121

 

8,791

 

5,008

                   

Adjustments:

                 

Exploration Costs (excluding Stock-Based
     Compensation Expenses)

37

 

39

 

36

 

133

 

126

Changes in Components of Working Capital and
     Other Assets and Liabilities

                 

Accounts Receivable

182

 

145

 

464

 

821

 

(467)

Inventories

108

 

6

 

(31)

 

13

 

(123)

Accounts Payable

(341)

 

68

 

(427)

 

(456)

 

795

Accrued Taxes Payable

(26)

 

(206)

 

61

 

(312)

 

49

Other Assets

81

 

(167)

 

90

 

136

 

(325)

Other Liabilities

(201)

 

260

 

(21)

 

116

 

(8)

Changes in Components of Working Capital
     Associated with Investing Activities

100

 

(45)

 

201

 

200

 

(75)

Other Non-Current Income Taxes - Net Receivable

 

 

 

 

113

Discretionary Cash Flow (Non-GAAP)

3,106

 

2,296

 

1,494

 

9,442

 

5,093

                   

Discretionary Cash Flow (Non-GAAP) - Percentage
     Increase

108 %

         

85 %

   
                   

Discretionary Cash Flow (Non-GAAP)

3,106

 

2,296

 

1,494

 

9,442

 

5,093

Less:

                 

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

(1,057)

 

(935)

 

(828)

 

(3,909)

 

(3,490)

Free Cash Flow (Non-GAAP)

2,049

 

1,361

 

666

 

5,533

 

1,603

                   
                   

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

                   
 

4Q 2021

 

3Q 2021

 

4Q 2020

 

FY 2021

 

FY 2020

                   

Total Expenditures (GAAP)

1,137

 

962

 

1,107

 

4,255

 

4,113

Less:

                 

Asset Retirement Costs

(71)

 

(8)

 

(48)

 

(127)

 

(117)

Non-Cash Acquisition Costs of Unproved Properties

(8)

 

(15)

 

(69)

 

(45)

 

(197)

Non-Cash Finance Leases

 

 

(101)

 

(74)

 

(174)

Acquisition Costs of Proved Properties

(1)

 

(4)

 

(61)

 

(100)

 

(135)

Total Cash Capital Expenditures Before Acquisitions
     (Non-GAAP)

1,057

 

935

 

828

 

3,909

 

3,490

 

Discretionary Cash Flow and Free Cash Flow

(Continued)

In millions of USD (Unaudited)

         
           
 

FY 2019

 

FY 2018

 

FY 2017

           

Net Cash Provided by Operating Activities (GAAP)

8,163

 

7,769

 

4,265

           

Adjustments:

         

Exploration Costs (excluding Stock-Based Compensation Expenses)

113

 

125

 

122

Changes in Components of Working Capital and Other Assets and Liabilities

         

Accounts Receivable

92

 

368

 

392

Inventories

(90)

 

395

 

175

Accounts Payable

(169)

 

(439)

 

(324)

Accrued Taxes Payable

(40)

 

92

 

64

Other Assets

(358)

 

125

 

659

Other Liabilities

57

 

(11)

 

90

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

115

 

(301)

 

(90)

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

239

 

149

 

(513)

Discretionary Cash Flow (Non-GAAP)

8,122

 

8,272

 

4,840

           

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

-2 %

 

71 %

 

76 %

           

Discretionary Cash Flow (Non-GAAP)

8,122

 

8,272

 

4,840

Less:

         

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

(6,234)

 

(6,172)

 

(4,228)

Free Cash Flow (Non-GAAP)

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)

6,900

 

6,706

 

4,613

Less:

         

Asset Retirement Costs

(186)

 

(70)

 

(56)

Non-Cash Expenditures of Other Property, Plant and Equipment

(2)

 

(1)

 

Non-Cash Acquisition Costs of Unproved Properties

(98)

 

(291)

 

(256)

Non-Cash Finance Leases

 

(48)

 

Acquisition Costs of Proved Properties

(380)

 

(124)

 

(73)

Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)

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)

                         
                           
 

4Q 2021

 

4Q 2020

 

FY 2021

 

FY 2020

 

FY 2019

 

FY 2018

 

FY 2017

                           

Exploration and Development Drilling

767

 

592

 

2,864

 

2,664

 

4,951

 

4,935

 

3,132

Facilities

118

 

99

 

405

 

347

 

629

 

625

 

575

Leasehold Acquisitions

21

 

102

 

215

 

265

 

276

 

488

 

427

Property Acquisitions

1

 

61

 

100

 

135

 

380

 

124

 

73

Capitalized Interest

9

 

7

 

33

 

31

 

38

 

24

 

27

Subtotal

916

 

861

 

3,617

 

3,442

 

6,274

 

6,196

 

4,234

Exploration Costs

42

 

41

 

154

 

146

 

140

 

149

 

145

Dry Hole Costs

43

 

 

71

 

13

 

28

 

5

 

5

Exploration and Development
     Expenditures

1,001

 

902

 

3,842

 

3,601

 

6,442

 

6,350

 

4,384

Asset Retirement Costs

71

 

48

 

127

 

117

 

186

 

70

 

56

Total Exploration and Development
     Expenditures

1,072

 

950

 

3,969

 

3,718

 

6,628

 

6,420

 

4,440

Other Property, Plant and Equipment

65

 

157

 

286

 

395

 

272

 

286

 

173

Total Expenditures

1,137

 

1,107

 

4,255

 

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.

               
 

4Q 2021

 

4Q 2020

 

FY 2021

 

FY 2020

               

Net Income (Loss) (GAAP)

1,985

 

337

 

4,664

 

(605)

               

Adjustments:

             

Interest Expense, Net

38

 

53

 

178

 

205

Income Tax Provision (Benefit)

514

 

91

 

1,269

 

(134)

Depreciation, Depletion and Amortization

910

 

870

 

3,651

 

3,400

Exploration Costs

42

 

41

 

154

 

146

Dry Hole Costs

43

 

 

71

 

13

Impairments

206

 

143

 

376

 

2,100

EBITDAX (Non-GAAP)

3,738

 

1,535

 

10,363

 

5,125

(Gains) Losses on MTM Commodity Derivative Contracts

(136)

 

(70)

 

1,152

 

(1,145)

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

(122)

 

72

 

(638)

 

1,071

(Gains) Losses on Asset Dispositions, Net

29

 

6

 

(17)

 

47

               

Adjusted EBITDAX (Non-GAAP)

3,509

 

1,543

 

10,860

 

5,098

               

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.

               
 

December 31,
2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

               

Total Stockholders' Equity - (a)

22,180

 

21,765

 

20,881

 

20,762

               

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

5,109

 

5,117

 

5,125

 

5,133

Less: Cash

(5,209)

 

(4,293)

 

(3,880)

 

(3,388)

Net Debt (Non-GAAP) - (c)

(100)

 

824

 

1,245

 

1,745

               

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

27,289

 

26,882

 

26,006

 

25,895

               

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

22,080

 

22,589

 

22,126

 

22,507

               

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

18.7%

 

19.0%

 

19.7%

 

19.8%

               

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

-0.5%

 

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

 

12,956

                   

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

6,986

 

6,986

 

6,986

 

6,986

 

6,656

Less: Cash

(1,600)

 

(1,049)

 

(780)

 

(668)

 

(719)

Net Debt (Non-GAAP) - (c)

5,386

 

5,937

 

6,206

 

6,318

 

5,937

                   

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

20,968

 

18,784

 

19,043

 

19,391

 

19,612

                   

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

19,368

 

17,735

 

18,263

 

18,723

 

18,893

                   

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

33.3%

 

37.2%

 

36.7%

 

36.0%

 

33.9%

                   

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

27.8%

 

33.5%

 

34.0%

 

33.7%

 

31.4%

 

Proved Reserves and Reserve Replacement Data

 

(Unaudited)

               

2021 Net Proved Reserves Reconciliation Summary

United

States

 

Trinidad

 

Other

International

 

Total

Crude Oil and Condensate (MMBbl)

             

Beginning Reserves

1,513

 

1

 

 

1,514

Revisions

(116)

 

 

 

(116)

Purchases in Place

2

 

 

 

2

Extensions, Discoveries and Other Additions

311

 

1

 

 

312

Sales in Place

(2)

 

 

 

(2)

Production

(162)

 

 

 

(162)

Ending Reserves

1,546

 

2

 

 

1,548

               

Natural Gas Liquids (MMBbl)

             

Beginning Reserves

813

 

 

 

813

Revisions

(128)

 

 

 

(128)

Purchases in Place

3

 

 

 

3

Extensions, Discoveries and Other Additions

194

 

 

 

194

Sales in Place

 

 

 

Production

(53)

 

 

 

(53)

Ending Reserves

829

 

 

 

829

               

Natural Gas (Bcf)

             

Beginning Reserves

5,043

 

269

 

48

 

5,360

Revisions

754

 

26

 

3

 

783

Purchases in Place

23

 

 

 

23

Extensions, Discoveries and Other Additions

2,574

 

100

 

 

2,674

Sales in Place

(4)

 

 

(48)

 

(52)

Production

(483)

 

(80)

 

(3)

 

(566)

Ending Reserves

7,907

 

315

 

 

8,222

               

Oil Equivalents (MMBoe)

             

Beginning Reserves

3,166

 

46

 

8

 

3,220

Revisions

(118)

 

4

 

 

(114)

Purchases in Place

9

 

 

 

9

Extensions, Discoveries and Other Additions

934

 

18

 

 

952

Sales in Place

(3)

 

 

(8)

 

(11)

Production

(295)

 

(14)

 

 

(309)

Ending Reserves

3,693

 

54

 

 

3,747

               

Net Proved Developed Reserves (MMBoe)

             

At December 31, 2020

1,614

 

30

 

5

 

1,649

At December 31, 2021

1,926

 

22

 

 

1,948

               

2021 Exploration and Development Expenditures ($ Millions)

               

Acquisition Cost of Unproved Properties

207

 

 

8

 

215

Exploration Costs

296

 

7

 

51

 

354

Development Costs

3,120

 

53

 

 

3,173

Total Drilling

3,623

 

60

 

59

 

3,742

Acquisition Cost of Proved Properties

100

 

 

 

100

Asset Retirement Costs

86

 

24

 

17

 

127

Total Exploration and Development Expenditures

3,809

 

84

 

76

 

3,969

Gathering, Processing and Other

283

 

 

3

 

286

Total Expenditures

4,092

 

84

 

79

 

4,255

Proceeds from Sales in Place

(102)

 

 

(129)

 

(231)

Net Expenditures

3,990

 

84

 

(50)

 

4,024

               

Reserve Replacement Costs ($ / Boe) *

             

All-in Total, Net of Revisions

4.45

 

2.73

 

 

4.48

All-in Total, Excluding Revisions Due to Price

5.82

 

2.73

 

 

5.81

               

Reserve Replacement *

             

Drilling Only

317 %

 

129 %

 

0 %

 

308 %

All-in Total, Net of Revisions and Dispositions 

279 %

 

157 %

 

0 %

 

271 %

All-in Total, Excluding Revisions Due to Price

213 %

 

157 %

 

0 %

 

208 %

All-in Total, Liquids

123 %

 

0 %

 

0 %

 

123 %

               

*   See following reconciliation schedule for calculation methodology

Reserve Replacement Cost Data

 

(Unaudited; in millions, except ratio data)

 

For the Twelve Months Ended December 31, 2021

United

States

 

Trinidad

 

Other

International

 

Total

               

Total Costs Incurred in Exploration and Development Activities (GAAP)

3,809

 

84

 

76

 

3,969

Less:   Asset Retirement Costs

(86)

 

(24)

 

(17)

 

(127)

Non-Cash Acquisition Costs of Unproved Properties

(45)

 

 

 

(45)

Total Acquisition Costs of Proved Properties

(100)

 

 

 

(100)

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

3,578

 

60

 

59

 

3,697

               

Total Costs Incurred in Exploration and Development Activities (GAAP)

3,809

 

84

 

76

 

3,969

Less:   Asset Retirement Costs

(86)

 

(24)

 

(17)

 

(127)

Non-Cash Acquisition Costs of Unproved Properties

(45)

 

 

 

(45)

Non-Cash Acquisition Costs of Proved Properties

(5)

 

 

 

(5)

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

3,673

 

60

 

59

 

3,792

               

Total Expenditures (GAAP)

4,092

 

84

 

79

 

4,255

Less:   Asset Retirement Costs

(86)

 

(24)

 

(17)

 

(127)

Non-Cash Acquisition Costs of Unproved Properties

(45)

 

 

 

(45)

Non-Cash Acquisition Costs of Proved Properties

(5)

 

 

 

(5)

Non-Cash Capital - Other Miscellaneous

(74)

 

 

 

(74)

Total Cash Expenditures (Non-GAAP)

3,882

 

60

 

62

 

4,004

               

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

             

Revisions Due to Price - (c)

194

 

 

 

194

Revisions Other Than Price

(312)

 

4

 

 

(308)

Purchases in Place

9

 

 

 

9

Extensions, Discoveries and Other Additions - (d)

934

 

18

 

 

952

Total Proved Reserve Additions - (e)

825

 

22

 

 

847

Sales in Place

(3)

 

 

(8)

 

(11)

Net Proved Reserve Additions From All Sources - (f)

822

 

22

 

(8)

 

836

               

Production - (g)

295

 

14

 

 

309

               

Reserve Replacement Costs ($ / Boe)

             

Total Drilling, Before Revisions - (a / d)

3.83

 

3.33

 

 

3.88

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

4.45

 

2.73

 

 

4.48

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

5.82

 

2.73

 

 

5.81

               

Reserve Replacement

             

Drilling Only - (d / g)

317 %

 

129 %

 

0 %

 

308 %

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

279 %

 

157 %

 

0 %

 

271 %

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

213 %

 

157 %

 

0 %

 

208 %

               

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

             

Revisions

(244)

 

 

 

(244)

Purchases in Place

5

 

 

 

5

Extensions, Discoveries and Other Additions - (h)

505

 

1

 

 

506

Total Proved Reserve Additions

266

 

1

 

 

267

Sales in Place

(2)

 

 

 

(2)

Net Proved Reserve Additions From All Sources - (i)

264

 

1

 

 

265

               

Production - (j)

215

 

 

 

215

               

Reserve Replacement - Liquids

             

Drilling Only - (h / j)

235 %

 

0 %

 

0 %

 

235 %

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

123 %

 

0 %

 

0 %

 

123 %

 

Reserve Replacement Cost Data

 

(Unaudited; in millions, except ratio data)

 
   

For the Twelve Months Ended December 31, 2021

 
   

Proved Developed Reserve Replacement Costs ($ / Boe)

Total

Total Costs Incurred in Exploration and Development Activities (GAAP)

3,969

Less:   Asset Retirement Costs

(127)

Acquisition Costs of Unproved Properties

(215)

Acquisition Costs of Proved Properties

(100)

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

3,527

   

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

952

Add:  Conversion of Proved Undeveloped Reserves to Proved Developed

243

Less:  Proved Undeveloped Extensions and Discoveries

(779)

Proved Developed Reserves - Extensions and Discoveries (MMBoe)

416

   

Total Proved Reserves - Revisions (MMBoe)

(114)

Less:  Proved Undeveloped Reserves - Revisions

305

Proved Developed - Revisions Due to Price

(165)

Proved Developed Reserves - Revisions Other Than Price (MMBoe)

26

   

Proved Developed Reserves - Extensions and Discoveries Plus Revisions Other Than Price (MMBoe) - (l)

442

   

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

7.98

 

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.

               
 

2021

 

2020

 

2019

 

2018

               

Total Costs Incurred in Exploration and Development Activities (GAAP)

3,969

 

3,718

 

6,628

 

6,420

Less:  Asset Retirement Costs

(127)

 

(117)

 

(186)

 

(70)

Non-Cash Acquisition Costs of Unproved Properties

(45)

 

(197)

 

(98)

 

(291)

Acquisition Costs of Proved Properties

(100)

 

(135)

 

(380)

 

(124)

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

3,697

 

3,269

 

5,964

 

5,935

               

Total Costs Incurred in Exploration and Development Activities (GAAP)

3,969

 

3,718

 

6,628

 

6,420

Less:  Asset Retirement Costs

(127)

 

(117)

 

(186)

 

(70)

Non-Cash Acquisition Costs of Unproved Properties

(45)

 

(197)

 

(98)

 

(291)

Non-Cash Acquisition Costs of Proved Properties

(5)

 

(15)

 

(52)

 

(71)

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

3,792

 

3,389

 

6,292

 

5,988

               

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

             

Revisions Due to Price - (c)

194

 

(278)

 

(60)

 

35

Revisions Other Than Price

(308)

 

(89)

 

 

(40)

Purchases in Place

9

 

10

 

17

 

12

Extensions, Discoveries and Other Additions - (d)

952

 

564

 

750

 

670

Total Proved Reserve Additions - (e)

847

 

207

 

707

 

677

Sales in Place

(11)

 

(31)

 

(5)

 

(11)

Net Proved Reserve Additions From All Sources

836

 

176

 

702

 

666

               

Production

309

 

285

 

301

 

265

               

Reserve Replacement Costs ($ / Boe)

             

Total Drilling, Before Revisions - (a / d)

3.88

 

5.79

 

7.95

 

8.86

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

4.48

 

16.32

 

8.90

 

8.85

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

5.81

 

6.98

 

8.21

 

9.33

 

Reserve Replacement Cost Data

(Continued)

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

           
               
 

2017

 

2016

 

2015

 

2014

               

Total Costs Incurred in Exploration and Development Activities (GAAP)

4,440

 

6,445

 

4,928

 

7,905

Less:  Asset Retirement Costs

(56)

 

20

 

(53)

 

(196)

Non-Cash Acquisition Costs of Unproved Properties

(256)

 

(3,102)

 

 

Acquisition Costs of Proved Properties

(73)

 

(749)

 

(481)

 

(139)

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

4,055

 

2,614

 

4,394

 

7,570

               

Total Costs Incurred in Exploration and Development Activities (GAAP)

4,440

 

6,445

 

4,928

 

7,905

Less:  Asset Retirement Costs

(56)

 

20

 

(53)

 

(196)

Non-Cash Acquisition Costs of Unproved Properties

(256)

 

(3,102)

 

 

Non-Cash Acquisition Costs of Proved Properties

(26)

 

(732)

 

 

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

4,102

 

2,631

 

4,875

 

7,709

               

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

             

Revisions Due to Price - (c)

154

 

(101)

 

(574)

 

52

Revisions Other Than Price

48

 

253

 

107

 

49

Purchases in Place

2

 

42

 

56

 

14

Extensions, Discoveries and Other Additions - (d)

421

 

209

 

246

 

519

Total Proved Reserve Additions - (e)

625

 

403

 

(165)

 

634

Sales in Place

(21)

 

(168)

 

(4)

 

(36)

Net Proved Reserve Additions From All Sources

604

 

235

 

(169)

 

598

               

Production

224

 

206

 

210

 

220

               

Reserve Replacement Costs ($ / Boe)

             

Total Drilling, Before Revisions - (a / d)

9.64

 

12.51

 

17.87

 

14.58

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

6.56

 

6.52

 

(29.63)

 

12.16

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

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 settled during the year ended December 31, 2021, (closed) and remaining for 2022 and thereafter as of February 18, 2022. 

 

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 2022 (closed)

 

NYMEX WTI

 

140

 

65.58

February - 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

 

100

 

70.15

October - December 2023

 

NYMEX WTI

 

69

 

69.41

 

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 - December 2021 (closed)

 

NYMEX WTI Roll Differential (1)

 

125

 

0.17

January - February 2022 (closed)

 

NYMEX WTI Roll Differential (1)

 

125

 

0.15

March - 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 - December 2021 (closed)

 

Mont Belvieu Propane (non-Tet)

 

15

 

$                                  29.44

 

Financial Commodity Derivative Contracts

(Continued)

 

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 - December 2021
     (closed)

 

NYMEX Henry Hub

 

500

 

2.99

 

500

 

2.83

January - December 2022
     (closed) (1)

 

NYMEX Henry Hub

 

20

 

2.75

 

 

January - February 2022
     (closed)

 

NYMEX Henry Hub

 

725

 

3.57

 

 

March - 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 - February 2022
     (closed)

 

NYMEX Henry Hub HSC Differential (1)

 

210

 

$                                   (0.01)

March - December 2022

 

NYMEX Henry Hub HSC Differential (1)

 

210

 

(0.01)

January - December 2023

 

NYMEX Henry Hub HSC Differential (1)

 

135

 

(0.01)

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.

 

Financial Commodity Derivative Contracts

(Continued)

 

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.

                   
 

2021

 

2020

 

2019

 

2018

 

2017

                   

Interest Expense, Net (GAAP)

178

 

205

 

185

 

245

   

Tax Benefit Imputed (based on 21%)

(37)

 

(43)

 

(39)

 

(51)

   

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

141

 

162

 

146

 

194

   
                   

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

4,664

 

(605)

 

2,735

 

3,419

   

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

364

 

1,455

 

158

 

(201)

   

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

5,028

 

850

 

2,893

 

3,218

   
                   

Total Stockholders' Equity - (d)

22,180

 

20,302

 

21,641

 

19,364

 

16,283

                   

Average Total Stockholders' Equity * - (e)

21,241

 

20,972

 

20,503

 

17,824

   
                   

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

5,109

 

5,816

 

5,175

 

6,083

 

6,387

Less:  Cash

(5,209)

 

(3,329)

 

(2,028)

 

(1,556)

 

(834)

Net Debt (Non-GAAP) - (g)

(100)

 

2,487

 

3,147

 

4,527

 

5,553

                   

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

27,289

 

26,118

 

26,816

 

25,447

 

22,670

                   

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

22,080

 

22,789

 

24,788

 

23,891

 

21,836

                   

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

22,435

 

23,789

 

24,340

 

22,864

   
                   

Return on Capital Employed (ROCE)

                 

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

21.4%

 

-1.9%

 

11.8%

 

15.8%

   

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

23.0%

 

4.3%

 

12.5%

 

14.9%

   
                   

Return on Equity (ROE)

                 

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

22.0%

 

-2.9%

 

13.3%

 

19.2%

   

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

23.7%

 

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, 2021

                 

Adjustments:

                 

Add:  Mark-to-Market Commodity Derivative Contracts Impact

       

514

 

(112)

 

402

Add:  Certain Impairments

       

15

 

 

15

Less:  Gains on Asset Dispositions, Net

       

(17)

 

9

 

(8)

Less:  Tax Benefits Related to Exiting Canada Operations

       

 

(45)

 

(45)

Total

       

512

 

(148)

 

364

                   

Year Ended December 31, 2020

                 

Adjustments:

                 

Add:  Mark-to-Market Commodity Derivative Contracts Impact

       

(74)

 

16

 

(58)

Add:  Certain Impairments

       

1,868

 

(392)

 

1,476

Add:  Losses on Asset Dispositions, Net

       

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:  Certain Impairments

       

275

 

(60)

 

215

Less:  Gains on Asset Dispositions, Net

       

(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:  Certain Impairments

       

153

 

(34)

 

119

Less:  Gains on Asset Dispositions, Net

       

(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.

                   
 

4Q 2021

 

3Q 2021

 

2Q 2021

 

1Q 2021

 

4Q 2020

                   

Volume - Million Barrels of Oil Equivalent - (a)

79.4

 

77.7

 

75.3

 

70.1

 

73.7

                   

Total Operating Revenues and Other (b)

6,044

 

4,765

 

4,139

 

3,694

 

2,965

Total Operating Expenses (c)

3,516

 

3,294

 

2,968

 

2,762

 

2,477

Operating Income (Loss) (d)

2,528

 

1,471

 

1,171

 

932

 

488

                   

Wellhead Revenues

                 

Crude Oil and Condensate

3,246

 

2,929

 

2,699

 

2,251

 

1,711

Natural Gas Liquids

583

 

548

 

367

 

314

 

229

Natural Gas

847

 

568

 

404

 

625

 

302

Total Wellhead Revenues - (e)

4,676

 

4,045

 

3,470

 

3,190

 

2,242

                   

Operating Costs

                 

Lease and Well

325

 

270

 

270

 

270

 

261

Transportation Costs

228

 

219

 

214

 

202

 

195

Gathering and Processing Costs

147

 

145

 

128

 

139

 

119

General and Administrative

139

 

142

 

120

 

110

 

113

Taxes Other Than Income

316

 

277

 

239

 

215

 

114

Interest Expense, Net

38

 

48

 

45

 

47

 

53

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

1,193

 

1,101

 

1,016

 

983

 

855

                   

Depreciation, Depletion and Amortization (DD&A)

910

 

927

 

914

 

900

 

870

                   

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

2,103

 

2,028

 

1,930

 

1,883

 

1,725

                   

Exploration Costs

42

 

44

 

35

 

33

 

41

Dry Hole Costs

43

 

4

 

13

 

11

 

Impairments

206

 

82

 

44

 

44

 

143

Total Exploration Costs (GAAP)

291

 

130

 

92

 

88

 

184

Less:  Certain Impairments (1)

 

(13)

 

(1)

 

(1)

 

(86)

Total Exploration Costs (Non-GAAP)

291

 

117

 

91

 

87

 

98

                   

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

2,394

 

2,158

 

2,022

 

1,971

 

1,909

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

2,394

 

2,145

 

2,021

 

1,970

 

1,823

                   

Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (GAAP))

2,282

 

1,887

 

1,448

 

1,219

 

333

Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (Non-GAAP))

2,282

 

1,900

 

1,449

 

1,220

 

419

 

Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

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

                 
                   
 

4Q 2021

 

3Q 2021

 

2Q 2021

 

1Q 2021

 

4Q 2020

                   

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

                 
                   

Composite Average Operating Revenues and Other per Boe

    - (b) / (a)

76.12

 

61.33

 

54.97

 

52.70

 

40.23

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

44.28

 

42.40

 

39.42

 

39.40

 

33.61

Composite Average Operating Income (Loss) per Boe

    - (d) / (a)

31.84

 

18.93

 

15.55

 

13.30

 

6.62

                   

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

58.88

 

52.07

 

46.07

 

45.49

 

30.39

                   

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

15.02

 

14.19

 

13.48

 

14.02

 

11.60

                   

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

43.86

 

37.88

 

32.59

 

31.47

 

18.79

                   

Total Operating Cost per Boe (excluding Total Exploration

     Costs) - (g) / (a)

26.48

 

26.12

 

25.61

 

26.86

 

23.41

                   

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

32.40

 

25.95

 

20.46

 

18.63

 

6.98

                   

Total Operating Cost per Boe (including Total Exploration

    Costs) - (h) / (a)

30.15

 

27.79

 

26.85

 

28.12

 

25.90

                   

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

28.73

 

24.28

 

19.22

 

17.37

 

4.49

                   

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

                 
                   

Total Operating Cost per Boe (including Total Exploration

     Costs) - (i) / (a)

30.14

 

27.62

 

26.85

 

28.11

 

24.72

                   

Composite Average Margin per Boe (including Total

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

28.74

 

24.45

 

19.25

 

17.38

 

5.67

                   

 

(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)

                   
 

2021

 

2020

 

2019

 

2018

 

2017

                   

Volume - Million Barrels of Oil Equivalent - (a)

302.5

 

275.9

 

298.6

 

262.5

 

222.3

                   

Total Operating Revenues and Other (b)

18,642

 

11,032

 

17,380

 

17,275

 

11,208

Total Operating Expenses (c)

12,540

 

11,576

 

13,681

 

12,806

 

10,282

Operating Income (Loss) (d)

6,102

 

(544)

 

3,699

 

4,469

 

926

                   

Wellhead Revenues

                 

Crude Oil and Condensate

11,125

 

5,786

 

9,613

 

9,517

 

6,256

Natural Gas Liquids

1,812

 

668

 

785

 

1,128

 

730

Natural Gas

2,444

 

837

 

1,184

 

1,302

 

922

Total Wellhead Revenues - (e)

15,381

 

7,291

 

11,582

 

11,947

 

7,908

                   

Operating Costs

                 

Lease and Well

1,135

 

1,063

 

1,367

 

1,283

 

1,045

Transportation Costs

863

 

735

 

758

 

747

 

740

Gathering and Processing Costs

559

 

459

 

479

 

437

 

149

General and Administrative (GAAP)

511

 

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)

511

 

484

 

489

 

427

 

416

Taxes Other Than Income

1,047

 

478

 

800

 

772

 

545

Interest Expense, Net

178

 

205

 

185

 

245

 

274

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

4,293

 

3,424

 

4,078

 

3,911

 

3,187

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

4,293

 

3,424

 

4,078

 

3,911

 

3,169

                   

Depreciation, Depletion and Amortization (DD&A)

3,651

 

3,400

 

3,750

 

3,435

 

3,409

                   

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

7,944

 

6,824

 

7,828

 

7,346

 

6,596

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

7,944

 

6,824

 

7,828

 

7,346

 

6,578

                   

Exploration Costs

154

 

146

 

140

 

149

 

145

Dry Hole Costs

71

 

13

 

28

 

5

 

5

Impairments

376

 

2,100

 

518

 

347

 

479

Total Exploration Costs (GAAP)

601

601

2,259

 

686

 

501

 

629

Less:  Certain Impairments (2)

(15)

 

(1,868)

 

(275)

 

(153)

 

(261)

Total Exploration Costs (Non-GAAP)

586

 

391

 

411

 

348

 

368

                   

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

8,545

 

9,083

 

8,514

 

7,847

 

7,225

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

8,530

 

7,215

 

8,239

 

7,694

 

6,946

                   

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

6,836

 

(1,792)

 

3,068

 

4,100

 

683

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

6,851

 

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)

                 
 

2021

 

2020

 

2019

 

2018

 

2017

                   

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

                 
                   

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

61.63

 

39.99

 

58.20

 

65.81

 

50.42

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

41.46

 

41.96

 

45.81

 

48.79

 

46.25

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

20.17

 

(1.97)

 

12.39

 

17.02

 

4.17

                   

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

50.84

 

26.42

 

38.79

 

45.51

 

35.58

                   

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

14.19

 

12.39

 

13.66

 

14.90

 

14.34

                   

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

36.65

 

14.03

 

25.13

 

30.61

 

21.24

                   

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

26.26

 

24.71

 

26.22

 

27.99

 

29.67

                   

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

24.58

 

1.71

 

12.57

 

17.52

 

5.91

                   

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

28.25

 

32.92

 

28.51

 

29.89

 

32.50

                   

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

22.59

 

(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)

14.19

 

12.39

 

13.66

 

14.90

 

14.25

                   

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

36.65

 

14.03

 

25.13

 

30.61

 

21.33

                   

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

26.26

 

24.71

 

26.22

 

27.99

 

29.59

                   

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

24.58

 

1.71

 

12.57

 

17.52

 

5.99

                   

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

28.20

 

26.13

 

27.60

 

29.32

 

31.24

                   

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

22.64

 

0.29

 

11.19

 

16.19

 

4.34

                   

 

(1)

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

   

(2)

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

 

 

Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

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

             
   

2016

 

2015

 

2014

             

Volume - Million Barrels of Oil Equivalent - (a)

 

205.0

 

208.9

 

217.1

             

Total Operating Revenues and Other (b)

 

7,651

 

8,757

 

18,035

Total Operating Expenses (c)

 

8,876

 

15,443

 

12,793

Operating Income (Loss) (d)

 

(1,225)

 

(6,686)

 

5,242

             

Wellhead Revenues

           

Crude Oil and Condensate

 

4,317

 

4,935

 

9,742

Natural Gas Liquids

 

437

 

408

 

934

Natural Gas

 

742

 

1,061

 

1,916

Total Wellhead Revenues - (e)