INVESTORS
News Detail |
EOG Resources Reports Second Quarter 2022 Results, Declares $1.50 per Share Special Dividend and Reiterates Unchanged Full-Year 2022 Capital and Oil Volume Plan

HOUSTON , Aug. 4, 2022 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported second quarter 2022 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors .

Key Financial Results

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

 
   
   

2Q 2022

 

1Q 2022

 

2Q 2021

 

GAAP

Total Revenue

7,407

 

3,983

 

4,139

 

Net Income

2,238

 

390

 

907

 

Net Income Per Share

3.81

 

0.67

 

1.55

 

Net Cash Provided by Operating Activities

2,048

 

828

 

1,559

 

Total Expenditures

1,521

 

1,144

 

1,089

 

Current and Long-Term Debt

5,091

 

5,099

 

5,125

 

Cash and Cash Equivalents

3,073

 

4,009

 

3,880

 

Debt-to-Total Capitalization

18.6 %

 

19.1 %

 

19.7 %

 
 

Non-GAAP

Adjusted Net Income

1,614

 

2,346

 

1,012

 

Adjusted Net Income Per Share

2.74

 

4.00

 

1.73

 

CFO before Changes in Working Capital

2,357

 

3,372

 

2,001

 

Capital Expenditures

1,071

 

1,009

 

937

 

Free Cash Flow

1,286

 

2,363

 

1,064

 

Net Debt

2,018

 

1,090

 

1,245

 

Net Debt-to-Total Capitalization

8.3 %

 

4.8 %

 

5.6 %

 

Second Quarter 2022 Highlights

  • Declared special dividend of $1.50 per share
  • Earned adjusted net income of $1.6 billion, or $2.74 per share
  • Generated $1.3 billion of free cash flow
  • Oil, NGL and natural gas production above guidance midpoints
  • Capital expenditures below low end of guidance range
  • Total per-unit cash operating costs below guidance midpoint
  • Deployed in-house developed continuous leak detection system
Second Quarter 2022 Highlights

Volumes and Capital Expenditures

Wellhead Volumes

2Q 2022

 

2Q 2022

Guidance

Midpoint

 

1Q 2022

 

2Q 2021

Crude Oil and Condensate (MBod)

464.1

 

458.5

 

450.1

 

448.6

Natural Gas Liquids (MBbld)

201.9

 

193.0

 

190.3

 

138.5

Natural Gas (MMcfd)

1,528

 

1,465

 

1,458

 

1,445

Total Crude Oil Equivalent (MBoed)

920.7

 

895.7

 

883.3

 

828.0

 

Capital Expenditures ($MM)

1,071

 

1,200

 

1,009

 

937

From Ezra Yacob, Chief Executive Officer

"EOG delivered another quarter of outstanding operating execution. Our second quarter performance is attributable to the dedication and persistence of our employees and the power of our high-quality inventory across our multi-basin portfolio.

"We are adding reserves at lower finding costs and in turn lowering the overall cost base of the company. The Delaware Basin remains the largest area of activity in the company and is delivering exceptional returns. The Eagle Ford also continues to deliver top-tier results while operating at a steady pace. Our emerging South Texas Dorado dry gas play and Powder River Basin Mowry and Niobrara combo plays are contributing to EOG's success today while laying the groundwork for years of future high-return investment. And our robust exploration pipeline of potential new plays promises to further raise the bar on our performance.

"Our performance this year proves that we have emerged from the downturn better than ever. The company is positioned to deliver significant value to shareholders with our low cost structure and increased exposure to oil and natural gas prices with the recent reductions in our hedge position. This is supported by an industry-leading balance sheet and a regular dividend that allow EOG to deliver significant value through the cycle.

"We are well positioned to carry this momentum into 2023. We have offset a significant portion of inflation this year and are working on plans to identify further cost savings next year. We continue to advance new technology and innovative projects to further lower our environmental footprint, such as an EOG-developed continuous leak detection system that is being deployed at our Delaware Basin facilities. Throughout the year and as we begin to plan for 2023 we remain focused on disciplined capital allocation. Our long-term vision is to be among the lowest cost, highest return and lowest emissions producers, playing a significant role in the long-term future of energy."

Second Quarter 2022 Financial Performance

Adjusted Earnings per Share 2Q 2022 vs 1Q 2022

Prices and Hedges
Crude oil, NGL and natural gas prices increased significantly in 2Q compared with 1Q. Cash paid for hedge settlements in 2Q increased by $1.8 billion compared with 1Q, of which $1.3 billion related to the early termination of certain contracts.

Volumes
Total company crude oil production in 2Q of 464,100 Bopd was above the high end of the guidance range and 3% more than 1Q. NGL and natural gas production were each above the midpoint of the guidance ranges and increased 6% and 5%, respectively, compared with 1Q. Total company equivalent production increased 4% compared with 1Q.

Per-Unit Costs and Other
Cash operating costs declined to $10.12 per BOE in 2Q compared with $10.24 per BOE in 1Q. Lower lease and well cost was the most significant contributor to the reduction. A higher DD&A rate offset the reduction in cash operating costs. Lower marketing margin (gathering, processing and marketing revenue less marketing costs) and higher taxes other than income reduced earnings from other sources in 2Q compared with 1Q.

Change in Cash 2Q 2022 vs 1Q 2022

Free Cash Flow
EOG generated cash flow from operations before changes in working capital of $2.4 billion in 2Q. The company incurred $1.1 billion of cash capital expenditures, resulting in $1.3 billion of free cash flow.

Dividends and Bolt-on Acquisition
EOG paid $1.5 billion in dividends in 2Q, including $1.1 billion of special dividends. Acquisitions and divestitures in 2Q reduced cash by $0.2 billion, primarily related to a bolt-on acquisition in an exploration area and partially offset by sales of non-core assets.

Second Quarter 2022 Operating Performance

Lease and Well
Per-unit LOE costs declined $0.13 in 2Q compared with 1Q and were within the guidance range. The divestiture of legacy gas assets in the Rocky Mountain area and overall efficiency improvements in the Delaware Basin were the largest contributors to the cost reduction.

Transportation, Gathering and Processing
Per-unit transportation and G&P costs in 2Q were in-line with 1Q and slightly below the guidance midpoints.

General and Administrative
Per-unit G&A costs in 2Q were in-line with 1Q but significantly below the guidance midpoint. A transaction expected to occur in 2Q was not executed.

Depreciation, Depletion and Amortization Per-unit DD&A costs in 2Q were slightly above the guidance midpoint and increased 2% compared with 1Q. Facility additions and the divestiture of legacy gas assets contributed to the increase.

Special Dividend and Continuous Methane Monitoring

Special Dividend
The Board of Directors today declared a special dividend of $1.50 per share on EOG's common stock. The special dividend will be payable September 29, 2022, to stockholders of record as of September 15, 2022. Consistent with its past practice for the third quarter regular dividend, the Board will consider the quarterly regular dividend in September.

EOG's iSense SM Continuous Leak Detection System
EOG has been evaluating continuous methane monitoring technology for several years and initiated a pilot project using an EOG-developed system about 18 months ago, named iSenseSM. The company tested iSenseSM against other monitoring solutions in use and available in the market. The testing confirmed that iSenseSM detects methane release events consistent with other commercial systems. iSenseSM is currently deployed in the Delaware Basin covering about 60% of production. The system will be deployed across additional sites in the Delaware Basin and other operating areas over the remainder of 2022 and in 2023.

As an in-house developed system, iSenseSM enables EOG to integrate the data it collects with existing operational data from EOG's other proprietary systems. This allows for the unique ability to analyze production and facility data to conduct root cause analysis, prioritize resources and dispatch repair measures. EOG expects to learn through analysis of the growing data set collected by iSenseSM how to design and build better facilities and continuously improve its infrastructure.

Second Quarter 2022 Results vs Guidance

(Unaudited) 

               

Crude Oil and Condensate Volumes (MBod)

2Q 2022

2Q 2022
Guidance
Midpoint

Variance

1Q 2022

4Q 2021

3Q 2021

2Q 2021

United States

463.5

458.0

5.5

449.4

449.7

448.3

446.9

Trinidad

0.6

0.5

0.1

0.7

0.9

1.2

1.7

Other International

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Total

464.1

458.5

5.6

450.1

450.6

449.5

448.6

Natural Gas Liquids Volumes (MBbld)

Total

201.9

193.0

8.9

190.3

156.9

157.9

138.5

Natural Gas Volumes (MMcfd)

United States

1,324

1,280

44

1,249

1,328

1,210

1,199

Trinidad

204

185

19

209

206

212

233

Other International

0

0

0

0

0

0

13

Total

1,528

1,465

63

1,458

1,534

1,422

1,445

 

Total Crude Oil Equivalent Volumes (MBoed)

920.7

895.7

25.0

883.3

863.1

844.4

828.0

Total MMBoe

83.8

81.5

2.3

79.5

79.4

77.7

75.3

 

Benchmark Price

Oil (WTI) ($/Bbl)

108.42

   

94.38

77.17

70.55

66.06

Natural Gas (HH) ($/Mcf)

7.17

   

4.91

5.83

4.01

2.83

 

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

United States

2.84

2.80

0.04

1.64

1.14

0.33

0.10

Trinidad

(10.13)

(8.50)

(1.63)

(10.56)

(10.31)

(10.36)

(9.80)

 

Natural Gas Liquids - Realizations as % of WTI

39.0 %

40.0 %

(1.0 %)

42.1 %

52.4 %

53.5 %

44.1 %

 

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

United States

0.60

0.75

(0.15)

0.90

0.57

0.49

0.16

Natural Gas Realizations ($/Mcf)

Trinidad

3.42

3.40

0.02

3.36

3.48

3.39

3.37

 

Total Expenditures (GAAP) ($MM)

1,521

   

1,144

1,137

962

1,089

Capital Expenditures (non-GAAP) ($MM)

1,071

1,200

(129)

1,009

1,015

891

937

 

Operating Unit Costs ($/Boe)

Lease and Well

3.87

3.80

0.07

4.00

4.09

3.48

3.58

Transportation Costs

2.91

2.95

(0.04)

2.87

2.87

2.82

2.84

Gathering and Processing

1.81

1.90

(0.09)

1.81

1.85

1.87

1.70

General and Administrative

1.53

1.85

(0.32)

1.56

1.75

1.83

1.59

Cash Operating Costs

10.12

10.50

(0.38)

10.24

10.56

10.00

9.71

Depreciation, Depletion and Amortization

10.87

10.80

0.07

10.65

11.46

11.93

12.13

 

Expenses ($MM)

Exploration and Dry Hole

55

40

15

48

85

48

49

Impairment (GAAP)

91

   

55

206

82

44

Impairment (excluding certain impairments (non-GAAP)) 2

55

85

(30)

55

206

69

43

Capitalized Interest

7

8

(1)

8

9

8

8

Net Interest

48

48

0

48

38

48

45

 

Taxes Other Than Income (% of Wellhead Revenue)

7.3 %

7.0 %

0.3 %

7.4 %

6.8 %

6.8 %

6.9 %

Income Taxes

Effective Rate

22.3 %

22.5 %

(0.2 %)

21.7 %

20.5 %

23.4 %

19.3 %

Current Tax (Benefit) / Expense ($MM)

745

680

65

573

393

446

313

Third Quarter and Full-Year 2022 Guidance3

(Unaudited)

 

See "Endnotes" below for related discussion and definitions.

3Q 2022
Guidance Range

FY 2022
Guidance Range

2021
Actual

2020
Actual

Crude Oil and Condensate Volumes (MBod)

               

United States

456.0

-

465.0

458.0

-

463.0

443.4

408.1

Trinidad

0.0

-

1.0

0.4

-

0.6

1.5

1.0

Other International

0.0

-

0.0

0.0

-

0.0

0.1

0.1

Total

456.0

-

466.0

458.4

-

463.6

445.0

409.2

Natural Gas Liquids Volumes (MBbld)

               

Total

180.0

-

210.0

185.0

-

205.0

144.5

136.0

Natural Gas Volumes (MMcfd)

               

United States

1,250

-

1,350

1,270

-

1,350

1,210

1,040

Trinidad

135

-

165

175

-

185

217

180

Other International

0

-

0

0

-

0

9

32

Total

1,385

-

1,515

1,445

-

1,535

1,436

1,252

Crude Oil Equivalent Volumes (MBoed)

               

United States

844.3

-

900.0

854.7

-

893.0

789.6

717.5

Trinidad

22.5

-

28.5

29.6

-

31.4

37.7

30.9

Other International

0.0

-

0.0

0.0

-

0.0

1.6

5.4

Total

866.8

-

928.5

884.3

-

924.4

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 4 ($/Bbl)

United States

3.00

-

4.00

2.40

-

2.80

0.58

(0.75)

Trinidad

(10.00)

-

(8.00)

(11.00)

-

(9.00)

(11.70)

(9.20)

Natural Gas Liquids - Realizations as % of WTI

               

Total

33.0 %

-

43.0 %

36.0 %

-

42.0 %

50.5 %

34.0 %

Natural Gas Differentials - above (below) NYMEX Henry Hub 5 ($/Mcf)

United States

0.65

-

1.05

0.85

-

1.00

1.03

(0.47)

Natural Gas Realizations 6 ($/Mcf)

               

Trinidad

7.00

-

7.60

4.00

-

4.50

3.40

2.57

                 

Total Expenditures (GAAP) ($MM)

           

4,255

4,113

Capital Expenditures 7 (non-GAAP) ($MM)

1,150

-

1,350

4,300

-

4,700

3,755

3,344

                 

Operating Unit Costs ($/Boe)

               

Lease and Well

3.50

-

4.20

3.70

-

4.00

3.75

3.85

Transportation Costs

2.70

-

3.10

2.80

-

3.00

2.85

2.66

Gathering and Processing

1.75

-

1.95

1.80

-

1.90

1.85

1.66

General and Administrative

1.90

-

2.20

1.60

-

1.80

1.69

1.75

Cash Operating Costs

9.85

-

11.45

9.90

-

10.70

10.14

9.92

Depreciation, Depletion and Amortization

10.55

-

11.15

10.65

-

10.95

12.07

12.32

                 

Expenses ($MM)

               

Exploration and Dry Hole

45

-

55

170

-

210

225

159

Impairment (GAAP)

           

376

2,100

Impairment (excluding certain impairments (non-GAAP)) 2

50

-

90

210

-

290

361

232

Capitalized Interest

5

-

10

25

-

35

33

31

Net Interest

42

-

47

180

-

190

178

205

                 

Taxes Other Than Income (% of Wellhead Revenue)

6.0 %

-

8.0 %

7.0 %

-

8.0 %

6.8 %

6.6 %

Income Taxes

               

Effective Rate

20.0 %

-

25.0 %

20.0 %

-

25.0 %

21.4 %

18.2 %

Current Tax (Benefit) / Expense ($MM)

410

-

510

2,300

-

2,500

1,393

(61)

 

Second Quarter 2022 Results Webcast
Friday, August 5, 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 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)

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 impairment 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).

   

3)

The forecast items for the third 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.

   

4)

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.

   

5)

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.

   

6)

The third quarter 2022 realized natural gas price for Trinidad includes a one-time pricing adjustment of approximately $3.50/Mcf for prior-period production following a contract amendment with the National Gas Company of Trinidad and Tobago Limited (NGC).

   

7)

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 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

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 and cash flow from operations before changes in working capital, 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 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, sand 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 EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 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 schedules and definitions for non‐GAAP financial measures can be found on the EOG website at www.eogresources.com.

Income Statements

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

 

2Q 2022

 

1Q 2022

 

2Q 2021

 

YTD 2022

 

YTD 2021

Operating Revenues and Other

                 

Crude Oil and Condensate

4,699

 

3,889

 

2,699

 

8,588

 

4,950

Natural Gas Liquids

777

 

681

 

367

 

1,458

 

681

Natural Gas

1,000

 

716

 

404

 

1,716

 

1,029

Losses on Mark-to-Market Financial
     Commodity Derivative Contracts

(1,377)

 

(2,820)

 

(427)

 

(4,197)

 

(794)

Gathering, Processing and Marketing

2,169

 

1,469

 

1,022

 

3,638

 

1,870

Gains on Asset Dispositions, Net

97

 

25

 

51

 

122

 

45

Other, Net

42

 

23

 

23

 

65

 

52

Total

7,407

 

3,983

 

4,139

 

11,390

 

7,833

                   

Operating Expenses

                 

Lease and Well

324

 

318

 

270

 

642

 

540

Transportation Costs

244

 

228

 

214

 

472

 

416

Gathering and Processing Costs

152

 

144

 

128

 

296

 

267

Exploration Costs

35

 

45

 

35

 

80

 

68

Dry Hole Costs

20

 

3

 

13

 

23

 

24

Impairments

91

 

55

 

44

 

146

 

88

Marketing Costs

2,127

 

1,283

 

991

 

3,410

 

1,829

Depreciation, Depletion and Amortization

911

 

847

 

914

 

1,758

 

1,814

General and Administrative

128

 

124

 

120

 

252

 

230

Taxes Other Than Income

472

 

390

 

239

 

862

 

454

Total

4,504

 

3,437

 

2,968

 

7,941

 

5,730

                   

Operating Income

2,903

 

546

 

1,171

 

3,449

 

2,103

Other Income (Expense), Net

27

 

(1)

 

(2)

 

26

 

(6)

Income Before Interest Expense and Income
     Taxes

2,930

 

545

 

1,169

 

3,475

 

2,097

Interest Expense, Net

48

 

48

 

45

 

96

 

92

Income Before Income Taxes

2,882

 

497

 

1,124

 

3,379

 

2,005

Income Tax Provision

644

 

107

 

217

 

751

 

421

Net Income

2,238

 

390

 

907

 

2,628

 

1,584

                   

Dividends Declared per Common Share

2.5500

 

1.7500

 

1.4125

 

4.3000

 

1.8250

Net Income Per Share

                 

Basic

3.84

 

0.67

 

1.56

 

4.52

 

2.73

Diluted

3.81

 

0.67

 

1.55

 

4.48

 

2.72

Average Number of Common Shares

                 

Basic

583

 

582

 

580

 

582

 

580

Diluted

588

 

586

 

584

 

587

 

583

Wellhead Volumes and Prices

(Unaudited)

 

2Q 2022

 

2Q 2021

 

% Change

 

1Q 2022

 

YTD 2022

 

YTD 2021

 

% Change

                           

Crude Oil and Condensate Volumes
     (MBbld) (A)

                     

United States

463.5

 

446.9

 

4 %

 

449.4

 

456.5

 

437.8

 

4 %

Trinidad

0.6

 

1.7

 

-65 %

 

0.7

 

0.7

 

2.0

 

-65 %

Other International (B)

 

     

 

 

   

Total

464.1

 

448.6

 

3 %

 

450.1

 

457.2

 

439.8

 

4 %

                           

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

                         

United States

$ 111.26

 

66.16

 

68 %

 

$    96.02

 

$   103.80

 

$      62.22

 

67 %

Trinidad

98.29

 

56.26

 

75 %

 

83.82

 

90.33

 

52.57

 

72 %

Other International (B)

 

55.56

 

-100 %

 

 

 

42.36

 

-100 %

Composite

111.25

 

66.12

 

68 %

 

96.00

 

103.78

 

62.18

 

67 %

     

58.02

                   

Natural Gas Liquids Volumes (MBbld) (A)

                         

United States

201.9

 

138.5

 

46 %

 

190.3

 

196.1

 

131.5

 

49 %

Total

201.9

 

138.5

 

46 %

 

190.3

 

196.1

 

131.5

 

49 %

                           

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

                         

United States

$  42.28

 

$  29.15

 

45 %

 

$    39.77

 

$      41.07

 

$      28.62

 

43 %

Composite

42.28

 

29.15

 

45 %

 

39.77

 

41.07

 

28.62

 

43 %

                           

Natural Gas Volumes (MMcfd) (A)

                         

United States

1,324

 

1,199

 

10 %

 

1,249

 

1,287

 

1,150

 

12 %

Trinidad

204

 

233

 

-12 %

 

209

 

206

 

225

 

-8 %

Other International (B)

 

13

 

-100 %

 

 

 

19

 

-100 %

Total

1,528

 

1,445

 

6 %

 

1,458

 

1,493

 

1,394

 

7 %

                           

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

                         

United States

$     7.77

 

$     2.99

 

160 %

 

$       5.81

 

$        6.83

 

$        4.19

 

63 %

Trinidad

3.42

 

3.37

 

2 %

 

3.36

 

3.39

 

3.37

 

0 %

Other International (B)

 

5.69

 

-100 %

 

 

 

5.67

 

-100 %

Composite

7.19

 

3.07

 

134 %

 

5.46

 

6.35

 

4.08

 

56 %

                           

Crude Oil Equivalent Volumes (MBoed) (D)

                         

United States

886.1

 

785.2

 

13 %

 

847.8

 

867.1

 

761.0

 

14 %

Trinidad

34.6

 

40.6

 

-15 %

 

35.5

 

35.0

 

39.5

 

-11 %

Other International (B)

 

2.2

 

-100 %

 

 

 

3.1

 

-100 %

Total

920.7

 

828.0

 

11 %

 

883.3

 

902.1

 

803.6

 

12 %

                           

Total MMBoe (D)

83.8

 

75.3

 

11 %

 

79.5

 

163.3

 

145.4

 

12 %

   

(A)

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

(B) 

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

(C)

Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022).

(D)

Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, NGLs and natural gas.  Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas.  MMBoe is calculated by multiplying the MBoed amount by the number of days in the period and then dividing that amount by one thousand.

Balance Sheets

In millions of USD, except share data (Unaudited)

 

June 30,

 

December 31,

 

2022

 

2021

Current Assets

     

Cash and Cash Equivalents

3,073

 

5,209

Accounts Receivable, Net

3,735

 

2,335

Inventories

739

 

584

Assets from Price Risk Management Activities

1

 

Other

605

 

456

Total

8,153

 

8,584

 

Property, Plant and Equipment

     

Oil and Gas Properties (Successful Efforts Method)

66,098

 

67,644

Other Property, Plant and Equipment

4,862

 

4,753

Total Property, Plant and Equipment

70,960

 

72,397

Less:  Accumulated Depreciation, Depletion and Amortization

(42,113)

 

(43,971)

Total Property, Plant and Equipment, Net

28,847

 

28,426

Deferred Income Taxes

12

 

11

Other Assets

1,127

 

1,215

Total Assets

38,139

 

38,236

 

Current Liabilities

     

Accounts Payable

2,896

 

2,242

Accrued Taxes Payable

594

 

518

Dividends Payable

437

 

436

Liabilities from Price Risk Management Activities

79

 

269

Current Portion of Long-Term Debt

1,282

 

37

Current Portion of Operating Lease Liabilities

216

 

240

Other

264

 

300

Total

5,768

 

4,042

       

Long-Term Debt

3,809

 

5,072

Other Liabilities

2,067

 

2,193

Deferred Income Taxes

4,183

 

4,749

Commitments and Contingencies

     
       

Stockholders' Equity

     

Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 586,391,670
Shares Issued at June 30, 2022 and 585,521,512 Shares Issued at December
31, 2021

206

 

206

Additional Paid in Capital

6,128

 

6,087

Accumulated Other Comprehensive Loss

(12)

 

(12)

Retained Earnings

16,028

 

15,919

Common Stock Held in Treasury, 344,705 Shares at June 30, 2022 and 257,268
Shares at December 31, 2021

(38)

 

(20)

Total Stockholders' Equity

22,312

 

22,180

Total Liabilities and Stockholders' Equity

38,139

 

38,236

 

Cash Flows Statements

In millions of USD (Unaudited)

 

2Q 2022

 

2Q 2021

 

1Q 2022

 

YTD 2022

 

YTD 2021

Cash Flows from Operating Activities

                 

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

                 

Net Income

2,238

 

907

 

390

 

2,628

 

1,584

Items Not Requiring (Providing) Cash

                 

Depreciation, Depletion and Amortization

911

 

914

 

847

 

1,758

 

1,814

Impairments

91

 

44

 

55

 

146

 

88

Stock-Based Compensation Expenses

30

 

31

 

35

 

65

 

66

Deferred Income Taxes

(102)

 

(97)

 

(465)

 

(567)

 

(133)

Gains on Asset Dispositions, Net

(97)

 

(51)

 

(25)

 

(122)

 

(45)

Other, Net

(16)

 

6

 

6

 

(10)

 

13

Dry Hole Costs

20

 

13

 

3

 

23

 

24

Mark-to-Market Financial Commodity Derivative
Contracts Total Losses

1,377

 

427

 

2,820

 

4,197

 

794

Net Cash Payments for Settlements of Financial
     Commodity Derivative Contracts

(2,114)

 

(193)

 

(296)

 

(2,410)

 

(223)

Other, Net

19

 

 

2

 

21

 

1

Changes in Components of Working Capital and Other
      Assets and Liabilities

                 

Accounts Receivable

(522)

 

(186)

 

(878)

 

(1,400)

 

(494)

Inventories

(157)

 

37

 

(14)

 

(171)

 

101

Accounts Payable

259

 

11

 

130

 

389

 

183

Accrued Taxes Payable

(536)

 

(163)

 

613

 

77

 

80

Other Assets

71

 

(119)

 

(213)

 

(142)

 

(222)

Other Liabilities

433

 

32

 

(2,250)

 

(1,817)

 

(57)

Changes in Components of Working Capital Associated
     with Investing Activities

143

 

(54)

 

68

 

211

 

(145)

Net Cash Provided by Operating Activities

2,048

 

1,559

 

828

 

2,876

 

3,429

Investing Cash Flows

                 

Additions to Oil and Gas Properties

(1,349)

 

(968)

 

(939)

 

(2,288)

 

(1,843)

Additions to Other Property, Plant and Equipment

(75)

 

(55)

 

(70)

 

(145)

 

(97)

Proceeds from Sales of Assets

110

 

141

 

121

 

231

 

146

Other Investing Activities

(30)

 

 

 

(30)

 

Changes in Components of Working Capital Associated
     with Investing Activities

(143)

 

54

 

(68)

 

(211)

 

145

Net Cash Used in Investing Activities

(1,487)

 

(828)

 

(956)

 

(2,443)

 

(1,649)

Financing Cash Flows

                 

Long-Term Debt Repayments

 

 

 

 

(750)

Dividends Paid

(1,486)

 

(239)

 

(1,023)

 

(2,509)

 

(458)

Treasury Stock Purchased

(15)

 

(2)

 

(43)

 

(58)

 

(12)

Proceeds from Stock Options Exercised and Employee
     Stock Purchase Plan

13

 

9

 

4

 

17

 

9

Repayment of Finance Lease Liabilities

(9)

 

(9)

 

(10)

 

(19)

 

(18)

Net Cash Used in Financing Activities

(1,497)

 

(241)

 

(1,072)

 

(2,569)

 

(1,229)

Effect of Exchange Rate Changes on Cash

 

2

 

 

 

Increase (Decrease)  in Cash and Cash Equivalents

(936)

 

492

 

(1,200)

 

(2,136)

 

551

Cash and Cash Equivalents at Beginning of Period

4,009

 

3,388

 

5,209

 

5,209

 

3,329

Cash and Cash Equivalents at End of Period

3,073

 

3,880

 

4,009

 

3,073

 

3,880

  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), Cash Flow from Operations Before Working Capital, 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 financial commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions, to add back impairment charges related to certain of EOG's assets (which are generally (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets) - see "Revenues, Costs and Margins Per Barrel of Oil Equivalent" below for additional related discussion) and to make certain other adjustments to exclude non-recurring and certain other items as further described below.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

               
 

2Q 2022

 

Before
Tax

 

Income Tax
Impact

 

After
Tax

 

Diluted
Earnings
per Share

               

Reported Net Income (GAAP)

2,882

 

(644)

 

2,238

 

3.81

Adjustments:

             

Losses on Mark-to-Market Financial Commodity Derivative Contracts

1,377

 

(299)

 

1,078

 

1.82

Net Cash Payments for Settlements of Financial Commodity Derivative
     Contracts (1)

(2,114)

 

459

 

(1,655)

 

(2.81)

Less: Gains on Asset Dispositions, Net

(97)

 

21

 

(76)

 

(0.13)

Add: Certain Impairments

36

 

(7)

 

29

 

0.05

Adjustments to Net Income

(798)

 

174

 

(624)

 

(1.07)

               

Adjusted Net Income (Non-GAAP)

2,084

 

(470)

 

1,614

 

2.74

               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

583

Diluted

           

588

               
   

(1)

Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss)  (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period.  For the second quarter of 2022, such amount was $2,114 million, of which $1,328 million was related to the early termination of certain contracts.  See "Financial Commodity Derivative Contracts" below for further discussion.

Adjusted Net Income (Loss)
(Continued)

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

 

1Q 2022

 

Before
Tax

 

Income Tax
Impact

 

After
Tax

 

Diluted
Earnings
per Share

               

Reported Net Income (GAAP)

497

 

(107)

 

390

 

0.67

Adjustments:

             

Losses on Mark-to-Market Financial Commodity Derivative Contracts

2,820

 

(612)

 

2,208

 

3.76

Net Cash Payments for Settlements of Financial Commodity Derivative
      Contracts

(296)

 

64

 

(232)

 

(0.40)

Less: Gains on Asset Dispositions, Net

(25)

 

5

 

(20)

 

(0.03)

Adjustments to Net Income

2,499

 

(543)

 

1,956

 

3.33

               

Adjusted Net Income (Non-GAAP)

2,996

 

(650)

 

2,346

 

4.00

               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

582

Diluted

           

586

 

 

2Q 2021

 

Before
Tax

 

Income Tax
Impact

 

After
Tax

 

Diluted
Earnings
per Share

               

Reported Net Income (GAAP)

1,124

 

(217)

 

907

 

1.55

Adjustments:

             

Losses on Mark-to-Market Financial Commodity Derivative Contracts

427

 

(93)

 

334

 

0.58

Net Cash Payments for Settlements of Financial Commodity Derivative
     Contracts

(193)

 

42

 

(151)

 

(0.26)

Less: Gains on Asset Dispositions, Net

(51)

 

17

 

(34)

 

(0.06)

Add: Certain Impairments

1

 

 

1

 

Less: Tax Benefits Related to Exiting Canada Operations

 

(45)

 

(45)

 

(0.08)

Adjustments to Net Income

184

 

(79)

 

105

 

0.18

               

Adjusted Net Income (Non-GAAP)

1,308

 

(296)

 

1,012

 

1.73

               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

580

Diluted

           

584

 

 

 

YTD 2022

 

Before
Tax

 

Income Tax
Impact

 

After
Tax

 

Diluted
Earnings
per Share

               

Reported Net Income (GAAP)

3,379

 

(751)

 

2,628

 

4.48

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

4,197

 

(911)

 

3,286

 

5.59

Net Cash Payments for Settlements of Financial Commodity
     Derivative Contracts (1)

(2,410)

 

523

 

(1,887)

 

(3.21)

Less: Gains on Asset Dispositions, Net

(122)

 

26

 

(96)

 

(0.16)

Add: Certain Impairments

36

 

(7)

 

29

 

0.05

Adjustments to Net Income

1,701

 

(369)

 

1,332

 

2.27

               

Adjusted Net Income (Non-GAAP)

5,080

 

(1,120)

 

3,960

 

6.75

               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

582

Diluted

           

587

               
   

(1)

Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period.  For the first six months of 2022, such amount was $2,410 million, of which $1,328 million was related to the early termination of certain contracts.  See "Financial Commodity Derivative Contracts" below for further discussion.

 

 

YTD 2021

 

Before
Tax

 

Income Tax
Impact

 

After
Tax

 

Diluted
Earnings
per Share

               

Reported Net Income (GAAP)

2,005

 

(421)

 

1,584

 

2.72

Adjustments:

             

Losses on Mark-to-Market Commodity Derivative Contracts

794

 

(174)

 

620

 

1.07

Net Cash Payments from Settlements of Commodity Derivative Contracts

(223)

 

49

 

(174)

 

(0.30)

Less: Gains on Asset Dispositions, Net

(45)

 

16

 

(29)

 

(0.05)

Add: Certain Impairments

2

 

 

2

 

Less: Tax Benefits Related to Exiting Canada Operations

 

(45)

 

(45)

 

(0.08)

Adjustments to Net Income

528

 

(154)

 

374

 

0.64

               

Adjusted Net Income (Non-GAAP)

2,533

 

(575)

 

1,958

 

3.36

               

Average Number of Common Shares (Non-GAAP)

             

Basic

           

580

Diluted

           

583

 

Adjusted Net Income Per Share 

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

       

1Q 2022 Adjusted Net Income per Share (Non-GAAP)

   

4.00

       

Realized Price

     

2Q 2022 Composite Average Wellhead Revenue per Boe

77.29

   

Less:  1Q 2022 Composite Average Welhead Revenue per Boe

(66.50)

   

Subtotal

10.79

   

Multiplied by: 2Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.8

   

Total Change in Revenue

904

   

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

(208)

   

Change in Net Income

696

   

Change in Diluted Earnings per Share

   

1.18

       

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

2Q 2022 Net Cash Received from (Payments for) Settlement of Financial
     Commodity Derivative Contracts

(2,114)

   

Less:  Income Tax Benefit (Provision)

459

   

After Tax - (a)

(1,655)

   

1Q 2022 Net Cash Received from (Payments for) Settlement of Financial
     Commodity Derivative Contracts

(296)

   

Less:  Income Tax Benefit (Provision)

64

   

After Tax - (b)

(232)

   

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

(1,423)

   

Change in Diluted Earnings per Share

   

(2.42)

       

Wellhead Volumes

     

2Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.8

   

Less:  1Q 2022 Crude Oil Equivalent Volumes (MMBoe)

(79.5)

   

Subtotal

4.3

   

Multiplied by:  2Q 2022 Composite Average Margin per Boe (Non-GAAP) (Including
     Total Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil
     Equivalent" schedule)

48.79

   

Change in Revenue

209

   

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

(48)

   

Change in Net Income

161

   

Change in Diluted Earnings per Share

   

0.27

       
             

Operating Cost per Boe

           

1Q 2022 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration
     Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
     schedule)

27.70

         

Less:  1Q 2022 Taxes Other Than Income

(4.91)

         

Less:  2Q 2022 Total Operating Cost per Boe (Non-GAAP) (including Total
     Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil
     Equivalent" schedule)

(28.50)

         

Add: 2Q 2022 Taxes Other Than Income

5.63

         

Subtotal

(0.08)

         

Multiplied by:  2Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.8

         

Change in Before-Tax Net Income

(7)

         

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

2

         

Change in Net Income

(5)

         

Change in Diluted Earnings per Share

   

(0.01)

     
             

Other (1)

   

(0.28)

     
             

2Q 2022 Adjusted Net Income per Share (Non-GAAP)

   

2.74

     
             

2Q 2022 Average Number of Common Shares (Non-GAAP) - Diluted

588

         
             
 

(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.

 

Cash Flow from Operations and Free Cash Flow 

In millions of USD (Unaudited)

                   

The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Cash Flow from Operations Before Working Capital (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 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 Cash Flow from Operations Before Working Capital (Non-GAAP) (see below reconciliation) for such period less the total capital expenditures (Non-GAAP) during such period, as is illustrated below. EOG management uses this information for comparative purposes within the industry.  To further the comparability of EOG's financial results with those of EOG's peer companies and other companies in the industry, EOG now utilizes Cash Flow from Operations Before Working Capital (Non-GAAP), instead of Discretionary Cash Flow (Non-GAAP), in calculating its Free Cash Flow (Non-GAAP).  Accordingly, Free Cash Flow (Non-GAAP) for the three-month and six-month periods ended June 30, 2022 have been calculated on such basis, and the calculations of Free Cash Flow (Non-GAAP) for each of the prior periods shown have been revised and conformed.

                   
 

2Q 2022

 

1Q 2022

 

4Q 2021

 

3Q 2021

 

2Q 2021

                   

Net Cash Provided by Operating Activities (GAAP)

2,048

 

828

 

3,166

 

2,196

 

1,559

                   

Adjustments:

                 

Changes in Components of Working Capital and
     Other Assets and Liabilities

                 

Accounts Receivable

522

 

878

 

182

 

145

 

186

Inventories

157

 

14

 

108

 

6

 

(37)

Accounts Payable

(259)

 

(130)

 

(341)

 

68

 

(11)

Accrued Taxes Payable

536

 

(613)

 

(26)

 

(206)

 

163

Other Assets

(71)

 

213

 

81

 

(167)

 

119

Other Liabilities

(433)

 

2,250

 

(201)

 

260

 

(32)

Changes in Components of Working Capital
     Associated with Investing Activities

(143)

 

(68)

 

100

 

(45)

 

54

Cash Flow from Operations Before Working Capital
     (Non-GAAP)

2,357

 

3,372

 

3,069

 

2,257

 

2,001

                   

Cash Flow from Operations Before Working Capital
     (Non-GAAP)

2,357

 

3,372

 

3,069

 

2,257

 

2,001

Less:

                 

Total Capital Expenditures (Non-GAAP) (a)

(1,071)

 

(1,009)

 

(1,015)

 

(891)

 

(937)

Free Cash Flow (Non-GAAP)

1,286

 

2,363

 

2,054

 

1,366

 

1,064

                   

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

                   
 

2Q 2022

 

1Q 2022

 

4Q 2021

 

3Q 2021

 

2Q 2021

                   

Total Expenditures (GAAP)

1,521

 

1,144

 

1,137

 

962

 

1,089

Less:

                 

Asset Retirement Costs

(43)

 

(27)

 

(71)

 

(8)

 

(31)

Non-Cash Acquisition Costs of Unproved
     Properties

(21)

 

(58)

 

(8)

 

(15)

 

Non-Cash Finance Leases

 

 

 

 

Acquisition Costs of Proved Properties

(351)

 

(5)

 

(1)

 

(4)

 

(86)

Exploration Costs

(35)

 

(45)

 

(42)

 

(44)

 

(35)

Total Capital Expenditures (Non-GAAP)

1,071

 

1,009

 

1,015

 

891

 

937

Cash Flow from Operations and Free Cash Flow
(Continued)

In millions of USD (Unaudited)

                   
             

YTD 2022

 

YTD 2021

                   

Net Cash Provided by Operating Activities (GAAP)

           

2,876

 

3,429

                   

Adjustments:

                 

Changes in Components of Working Capital and Other Assets and Liabilities

           

Accounts Receivable

           

1,400

 

494

Inventories

           

171

 

(101)

Accounts Payable

           

(389)

 

(183)

Accrued Taxes Payable

           

(77)

 

(80)

Other Assets

           

142

 

222

Other Liabilities

           

1,817

 

57

Changes in Components of Working Capital Associated with Investing Activities

     

(211)

 

145

Cash Flow from Operations Before Working Capital (Non-GAAP)

     

5,729

 

3,983

                   

Cash Flow from Operations Before Working Capital (Non-GAAP)

     

5,729

 

3,983

Less:

                 

Total Capital Expenditures (Non-GAAP) (a)

           

(2,080)

 

(1,849)

Free Cash Flow (Non-GAAP)

           

3,649

 

2,134

                   

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

                   
             

YTD 2022

 

YTD 2021

                   

Total Expenditures (GAAP)

           

2,665

 

2,156

Less:

                 

Asset Retirement Costs

           

(70)

 

(48)

Non-Cash Acquisition Costs of Unproved Properties

     

(79)

 

(22)

Non-Cash Finance Leases

           

 

(74)

Acquisition Costs of Proved Properties

           

(356)

 

(95)

Exploration Costs

           

(80)

 

(68)

Total Capital Expenditures (Non-GAAP)

           

2,080

 

1,849

Cash Flow from Operations and Free Cash Flow
(Continued)

In millions of USD (Unaudited)

           
 

FY 2021

 

FY 2020

 

FY 2019

           

Net Cash Provided by Operating Activities (GAAP)

8,791

 

5,008

 

8,163

           

Adjustments:

         

Changes in Components of Working Capital and Other Assets and Liabilities

         

Accounts Receivable

821

 

(467)

 

92

Inventories

13

 

(123)

 

(90)

Accounts Payable

(456)

 

795

 

(169)

Accrued Taxes Payable

(312)

 

49

 

(40)

Other Assets

136

 

(325)

 

(358)

Other Liabilities

116

 

(8)

 

57

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

200

 

(75)

 

115

Other Non-Current Income Taxes - Net Receivable

 

113

 

239

Cash Flow from Operations Before Working Capital (Non-GAAP)

9,309

 

4,967

 

8,009

           

Cash Flow from Operations Before Working Capital (Non-GAAP)

9,309

 

4,967

 

8,009

Less:

         

Total Capital Expenditures (Non-GAAP) (a)

(3,755)

 

(3,344)

 

(6,094)

Free Cash Flow (Non-GAAP)

5,554

 

1,623

 

1,915

           

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

           

Total Expenditures (GAAP)

4,255

 

4,113

 

6,900

Less:

         

Asset Retirement Costs

(127)

 

(117)

 

(186)

Non-Cash Expenditures of Other Property, Plant and Equipment

 

 

(2)

Non-Cash Acquisition Costs of Unproved Properties

(45)

 

(197)

 

(98)

Non-Cash Finance Leases

(74)

 

(174)

 

Acquisition Costs of Proved Properties

(100)

 

(135)

 

(380)

Exploration Costs

(154)

 

(146)

 

(140)

Total Capital Expenditures (Non-GAAP)

3,755

 

3,344

 

6,094

           

Cash Flow from Operations and Free Cash Flow
(Continued)

In millions of USD (Unaudited)

           
 

FY 2018

 

FY 2017

 

FY 2016

           

Net Cash Provided by Operating Activities (GAAP)

7,769

 

4,265

 

2,359

           

Adjustments:

         

Changes in Components of Working Capital and Other Assets and Liabilities

         

Accounts Receivable

368

 

392

 

233

Inventories

395

 

175

 

(171)

Accounts Payable

(439)

 

(324)

 

74

Accrued Taxes Payable

92

 

64

 

(93)

Other Assets

125

 

659

 

41

Other Liabilities

(11)

 

90

 

16

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

(301)

 

(90)

 

156

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

149

 

(513)

 

Excess Tax Benefits from Stock-Based Compensation

 

 

30

Cash Flow from Operations Before Working Capital (Non-GAAP)

8,147

 

4,718

 

2,645

           

Cash Flow from Operations Before Working Capital (Non-GAAP)

8,147

 

4,718

 

2,645

Less:

         

Total Capital Expenditures (Non-GAAP) (a)

(6,023)

 

(4,083)

 

(2,581)

Free Cash Flow (Non-GAAP)

2,124

 

635

 

64

           

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

           

Total Expenditures (GAAP)

6,706

 

4,613

 

6,554

Less:

         

Asset Retirement Costs

(70)

 

(56)

 

20

Non-Cash Expenditures of Other Property, Plant and Equipment

(1)

 

 

(17)

Non-Cash Acquisition Costs of Unproved Properties

(291)

 

(256)

 

(3,102)

Non-Cash Finance Leases

(48)

 

 

Acquisition Costs of Proved Properties

(124)

 

(73)

 

(749)

Exploration Costs

(149)

 

(145)

 

(125)

Total Capital Expenditures (Non-GAAP)

6,023

 

4,083

 

2,581

           

Total Expenditures

In millions of USD (Unaudited)

                           
 

2Q
2022

 

1Q
2022

 

4Q
2021

 

3Q
2021

 

2Q
2021

 

YTD
2022

 

YTD
2021

                           

Exploration and Development Drilling

866

 

813

 

767

 

653

 

711

 

1,679

 

1,444

Facilities

90

 

109

 

118

 

100

 

105

 

199

 

187

Leasehold Acquisitions

34

 

64

 

21

 

90

 

46

 

98

 

104

Property Acquisitions

351

 

5

 

1

 

4

 

86

 

356

 

95

Capitalized Interest

7

 

8

 

9

 

9

 

7

 

15

 

15

Subtotal

1,348

 

999

 

916

 

856

 

955

 

2,347

 

1,845

Exploration Costs

35

 

45

 

42

 

44

 

35

 

80

 

68

Dry Hole Costs

20

 

3

 

43

 

4

 

13

 

23

 

24

Exploration and Development
     Expenditures

1,403

 

1,047

 

1,001

 

904

 

1,003

 

2,450

 

1,937

Asset Retirement Costs

43

 

27

 

71

 

8

 

31

 

70

 

48

Total Exploration and Development
     Expenditures

1,446

 

1,074

 

1,072

 

912

 

1,034

 

2,520

 

1,985

Other Property, Plant and Equipment

75

 

70

 

65

 

50

 

55

 

145

 

171

Total Expenditures

1,521

 

1,144

 

1,137

 

962

 

1,089

 

2,665

 

2,156

Total Expenditures
(Continued)

In millions of USD (Unaudited)

                       
 

FY 2021

 

FY 2020

 

FY 2019

 

FY 2018

 

FY 2017

 

FY 2016

                       

Exploration and Development Drilling

2,864

 

2,664

 

4,951

 

4,935

 

3,132

 

1,957

Facilities

405

 

347

 

629

 

625

 

575

 

375

Leasehold Acquisitions

215

 

265

 

276

 

488

 

427

 

3,217

Property Acquisitions

100

 

135

 

380

 

124

 

73

 

749

Capitalized Interest

33

 

31

 

38

 

24

 

27

 

31

Subtotal

3,617

 

3,442

 

6,274

 

6,196

 

4,234

 

6,329

Exploration Costs

154

 

146

 

140

 

149

 

145

 

125

Dry Hole Costs

71

 

13

 

28

 

5

 

5

 

11

Exploration and Development Expenditures

3,842

 

3,601

 

6,442

 

6,350

 

4,384

 

6,465

Asset Retirement Costs

127

 

117

 

186

 

70

 

56

 

(20)

Total Exploration and Development Expenditures

3,969

 

3,718

 

6,628

 

6,420

 

4,440

 

6,445

Other Property, Plant and Equipment

286

 

395

 

272

 

286

 

173

 

109

Total Expenditures

4,255

 

4,113

 

6,900

 

6,706

 

4,613

 

6,554

 

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 Financial Commodity Derivative Contracts by eliminating the unrealized Mark-to-Market (MTM) (Gains) Losses from these transactions and to eliminate the (Gains) Losses on Asset Dispositions (Net).  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Net Income (Loss) (GAAP) to add back Interest Expense, Net, Income Taxes (Income Tax Provision (Benefit)), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments and further adjust such amount to match realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

         
 

2Q 2022

2Q 2021

YTD 2022

YTD 2021

         

Net Income (GAAP)

2,238

907

2,628

1,584

         

Adjustments:

       

Interest Expense, Net

48

45

96

92

Income Tax Provision

644

217

751

421

Depreciation, Depletion and Amortization

911

914

1,758

1,814

Exploration Costs

35

35

80

68

Dry Hole Costs

20

13

23

24

Impairments

91

44

146

88

EBITDAX (Non-GAAP)

3,987

2,175

5,482

4,091

Losses on MTM Financial Commodity Derivative Contracts

1,377

427

4,197

794

Net Cash Payments for Settlements of Commodity Derivative Contracts

(2,114)

(193)

(2,410)

(223)

Gains on Asset Dispositions, Net

(97)

(51)

(122)

(45)

         

Adjusted EBITDAX (Non-GAAP)

3,153

2,358

7,147

4,617

         

Definitions

       

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

 Net Debt-to-Total Capitalization Ratio

In millions of USD, except ratio data (Unaudited)

       

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

       
 

June 30,

2022

 

March 31,

2022

       

Total Stockholders' Equity - (a)

22,312

 

21,540

       

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

5,091

 

5,099

Less: Cash

(3,073)

 

(4,009)

Net Debt (Non-GAAP) - (c)

2,018

 

1,090

       

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

27,403

 

26,639

       

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

24,330

 

22,630

       

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

18.6 %

 

19.1 %

       

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

8.3 %

 

4.8 %

Net Debt-to-Total Capitalization Ratio
(Continued)

In millions of USD, except ratio data (Unaudited)

               
 

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

 

12,943

                   

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

 

19,599

                   

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

19,368

 

17,735

 

18,263

 

18,723

 

18,880

                   

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

33.3 %

 

37.2 %

 

36.7 %

 

36.0 %

 

34.0 %

                   

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

27.8 %

 

33.5 %

 

34.0 %

 

33.7 %

 

31.4 %

 

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 period from January 1, 2022 to July 29, 2022 (closed) and outstanding as of July 29, 2022. 

Crude Oil Financial Price Swap Contracts

       

Contracts Sold

 

Contracts Purchased

Period

 

Settlement Index

 

Volume

(MBbld)

 

Weighted
Average Price

($/Bbl)

 

Volume
(MBbld)

 

Weighted
Average Price
($/Bbl)

January  - March 2022 (closed)

 

NYMEX WTI

 

140

 

$             65.58

 

 

$                   —

April  - June 2022 (closed)

 

NYMEX WTI

 

140

 

65.62

 

 

July 2022 (closed)

 

NYMEX WTI

 

140

 

65.59

 

 

August - September 2022

 

NYMEX WTI

 

140

 

65.59

 

 

October - December 2022 (closed) (1)

 

NYMEX WTI

 

53

 

66.11

 

 

October - December 2022

 

NYMEX WTI

 

87

 

65.41

 

87

 

88.85

January - February 2023 (closed) (1)

 

NYMEX WTI

 

7

 

69.51

 

 

January - February 2023

 

NYMEX WTI

 

143

 

67.84

 

6

 

102.26

March 2023 (closed) (1)

 

NYMEX WTI

 

37

 

67.35

 

 

March 2023

 

NYMEX WTI

 

113

 

68.11

 

6

 

102.26

April - May 2023 (closed) (1)

 

NYMEX WTI

 

29

 

68.28

 

 

April - May 2023

 

NYMEX WTI

 

91

 

67.63

 

2

 

98.15

June 2023 (closed) (1)

 

NYMEX WTI

 

118

 

67.77

 

 

June 2023

 

NYMEX WTI

 

2

 

69.10

 

2

 

98.15

July - September 2023 (closed) (1)

 

NYMEX WTI

 

100

 

70.15

 

 

October - December 2023 (closed) (1)

 

NYMEX WTI

 

69

 

69.41

 

 

   

(1)

In the second quarter of 2022, EOG executed the early termination provision granting EOG the right to terminate certain of its October 2022 - December 2023 crude oil financial price swap contracts which were open at that time.  EOG paid net cash of $593 million for the settlement of these contracts.

Financial Commodity Derivative Contracts
(Continued)

Crude Oil Basis Swap Contracts

       

Contracts Sold

Period

 

Settlement Index

 

Volume (MBbld)

 

Weighted Average
Price Differential 
($/Bbl)

January - August 2022 (closed)

 

NYMEX WTI Roll Differential (1)

 

125

 

$                          0.15

September - 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.

 Natural Gas Financial Price Swap Contracts

       

Contracts Sold

Period

 

Settlement Index

 

Volume

(MMBtud in
thousands)

 

Weighted Average Price
($/MMBtu)

January - August 2022 (closed)

 

NYMEX Henry Hub

 

725

 

$                                    3.57

September 2022

 

NYMEX Henry Hub

 

725

 

3.57

October - December 2022 (closed) (1)

 

NYMEX Henry Hub

 

425

 

3.05

October - December 2022

 

NYMEX Henry Hub

 

300

 

4.32

January - December 2023 (closed) (1)

 

NYMEX Henry Hub

 

425

 

3.05

January - December 2023

 

NYMEX Henry Hub

 

300

 

3.36

January - December 2024

 

NYMEX Henry Hub

 

725

 

3.07

January - December 2025

 

NYMEX Henry Hub

 

725

 

3.07

   

(1)

In the second quarter of 2022, EOG executed the early termination provision granting EOG the right to terminate certain of its October 2022 - December 2023 natural gas  financial price swap contracts which were open at that time.  EOG paid net cash of $735 million for the settlement of these contracts.

 Natural Gas Basis Swap Contracts

       

Contracts Sold

Period

 

Settlement Index

 

Volume

(MMBtud in
thousands)

 

Weighted Average Price
Differential

($/MMBtu)

January - July 2022 (closed)

 

NYMEX Henry Hub HSC Differential (1)

 

210

 

$                                   (0.01)

August - 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.

 

Glossary:

$/Bbl

Dollars per barrel

$/MMBtu

Dollars per million British Thermal Units

Bbl

Barrel

EOG

EOG Resources, Inc.

HSC

Houston Ship Channel

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, Powder River Basin and Dorado 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

               

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

               

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

Less:  Cash

(5,209)

 

(3,329)

 

(2,028)

 

(1,556)

Net Debt (Non-GAAP) - (g)

(100)

 

2,487

 

3,147

 

4,527

               

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

27,289

 

26,118

 

26,816

 

25,447

               

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

22,080

 

22,789

 

24,788

 

23,891

               

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

22,435

 

23,789

 

24,340

 

22,864

               

Return on Capital Employed (ROCE)

             

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

21.4 %

 

-1.9 %

 

11.8 %

 

15.8 %

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

23.0 %

 

4.3 %

 

12.5 %

 

14.9 %

               

Return on Equity (ROE)

             

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

22.0 %

 

-2.9 %

 

13.3 %

 

19.2 %

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

23.7 %

 

4.1 %

 

14.1 %

 

18.1 %

               

* Average for the current and immediately preceding year

             
               

ROCE & ROE
(Continued)

(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 Financial 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 Financial 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 Financial 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 Financial 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)

                 

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

       

13.4 %

 

-4.8 %

 

-21.6 %

                   

Return on Equity (ROE)

                 

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

       

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

 

2011

                   

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

 

12,641

                   

Average Total Stockholders' Equity* - (e)

   

16,566

 

14,352

 

12,963

   
                   

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

   

5,906

 

5,909

 

6,312

 

5,009

Less:  Cash

   

(2,087)

 

(1,318)

 

(876)

 

(616)

Net Debt (Non-GAAP) - (g)

   

3,819

 

4,591

 

5,436

 

4,393

                   

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

   

23,619

 

21,327

 

19,597

 

17,650

                   

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

   

21,532

 

20,009

 

18,721

 

17,034

                   

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

   

20,771

 

19,365

 

17,878

   
                   

Return on Capital Employed (ROCE)

                 

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

   

14.7 %

 

12.1 %

 

4.0 %

   
                   

Return on Equity (ROE)

                 

Calculated Using GAAP Net Income - (b) / (e) (GAAP)

   

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.

                   
 

2Q 2022

 

1Q 2022

 

4Q 2021

 

3Q 2021

 

2Q 2021

                   

Volume - Million Barrels of Oil Equivalent - (a)

83.8

 

79.5

 

79.4

 

77.7

 

75.3

                   

Total Operating Revenues and Other (b)

7,407

 

3,983

 

6,044

 

4,765

 

4,139

Total Operating Expenses (c)

4,504

 

3,437

 

3,516

 

3,294

 

2,968

Operating Income (d)

2,903

 

546

 

2,528

 

1,471

 

1,171

                   

Wellhead Revenues

                 

Crude Oil and Condensate

4,699

 

3,889

 

3,246

 

2,929

 

2,699

Natural Gas Liquids

777

 

681

 

583

 

548

 

367

Natural Gas

1,000

 

716

 

847

 

568

 

404

Total Wellhead Revenues - (e)

6,476

 

5,286

 

4,676

 

4,045

 

3,470

                   

Operating Costs

                 

Lease and Well

324

 

318

 

325

 

270

 

270

Transportation Costs

244

 

228

 

228

 

219

 

214

Gathering and Processing Costs

152

 

144

 

147

 

145

 

128

General and Administrative

128

 

124

 

139

 

142

 

120

Taxes Other Than Income

472

 

390

 

316

 

277

 

239

Interest Expense, Net

48

 

48

 

38

 

48

 

45

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

1,368

 

1,252

 

1,193

 

1,101

 

1,016

                   

Depreciation, Depletion and Amortization (DD&A)

911

 

847

 

910

 

927

 

914

                   

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

2,279

 

2,099

 

2,103

 

2,028

 

1,930

                   

Exploration Costs

35

 

45

 

42

 

44

 

35

Dry Hole Costs

20

 

3

 

43

 

4

 

13

Impairments

91

 

55

 

206

 

82

 

44

Total Exploration Costs (GAAP)

146

 

103

 

291

 

130

 

92

Less:  Certain Impairments (1)

(36)

 

 

 

(13)

 

(1)

Total Exploration Costs (Non-GAAP)

110

 

103

 

291

 

117

 

91

                   

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

2,425

 

2,202

 

2,394

 

2,158

 

2,022

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

2,389

 

2,202

 

2,394

 

2,145

 

2,021

                   

Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (GAAP))

4,051

 

3,084

 

2,282

 

1,887

 

1,448

Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (Non-GAAP))

4,087

 

3,084

 

2,282

 

1,900

 

1,449

     
                   
                   

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

                 
                   

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

88.39

 

50.10

 

76.12

 

61.33

 

54.97

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

53.75

 

43.23

 

44.28

 

42.40

 

39.42

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

34.64

 

6.87

 

31.84

 

18.93

 

15.55

                   

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

77.29

 

66.50

 

58.88

 

52.07

 

46.07

                   

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

16.32

 

15.75

 

15.02

 

14.19

 

13.48

                   

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

60.97

 

50.75

 

43.86

 

37.88

 

32.59

                   

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

27.19

 

26.40

 

26.48

 

26.12

 

25.61

                   

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

50.10

 

40.10

 

32.40

 

25.95

 

20.46

                   

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

28.94

 

27.70

 

30.15

 

27.79

 

26.85

                   

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

48.35

 

38.80

 

28.73

 

24.28

 

19.22

                   

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

                 
                   

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

28.50

 

27.70

 

30.14

 

27.62

 

26.82

                   

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

48.79

 

38.80

 

28.74

 

24.45

 

19.25

                   

(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