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EOG Resources Reports Fourth Quarter and Full-Year 2020 Results; Raises Dividend by 10% and Announces 2021 Capital Program Focused on Improving Total Returns; Sets Goal to Achieve Zero Routine Flaring by 2025 and Ambition to Reach Net Zero Scope 1 and 2 GHG Emissions by 2040

02/25/2021

HOUSTON, Feb. 25, 2021 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported fourth quarter and full-year 2020 results. Supplemental financial tables, a related presentation and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions are available on EOG's website at http://investors.eogresources.com/investors. Such reconciliation schedules are also included herein.

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



4Q 2020


3Q 2020


4Q 2019


FY 2020


FY 2019


GAAP

Total Revenue

2,965


2,246


4,320


11,032


17,380


Net Income (Loss)

337


(43)


637


(605)


2,735


Net Income (Loss) Per Share

0.58


(0.07)


1.10


(1.04)


4.71


Net Cash Provided by Operating Activities

1,121


1,214


1,807


5,008


8,163


Total Expenditures

1,108


646


1,506


4,113


6,900


Current and Long-Term Debt

5,816


5,721


5,175


5,816


5,175


Cash and Cash Equivalents

3,329


3,066


2,028


3,329


2,028


Debt-to-Total Capitalization

22.3

%

22.1

%

19.3

%

22.3

%

19.3

%













Non- GAAP

Adjusted Net Income

411


252


787


850


2,893


Adjusted Net Income Per Share

0.71


0.43


1.35


1.46


4.98


Discretionary Cash Flow

1,494


1,261


2,111


5,093


8,122


Cash Capital Expenditures before Acquisitions

829


499


1,388


3,490


6,234


Free Cash Flow

666


762


723


1,603


1,888


Net Debt

2,487


2,655


3,147


2,487


3,147


Net Debt-to-Total Capitalization

10.9

%

11.6

%

12.7

%

10.9

%

12.7

%

From William R. "Bill" Thomas, Chairman and Chief Executive Officer

"EOG made significant improvements to its operating performance during 2020, across every area of the company. The benefits of these improvements are reflected in our fourth quarter results, and have created strong momentum as we set out to drive even better performance in 2021. I want to thank our talented employees for their ongoing dedication and focus, which drove significant progress and innovation in a challenging environment.

"We implemented countless innovations across the company in 2020 that sustainably reduced well costs and operating costs. We also made progress on a number of new exploration plays with the objective of increasing capital efficiency and returns while lowering the production decline rate. And we remained focused on strong environmental and safety performance which, together with our low cost structure, position EOG to be a significant part of the long–term energy solution."

 

 

Fourth Quarter and Full-Year 2020 Highlights


Volumes and Capital Expenditures

Wellhead Volumes

4Q 2020

4Q 2020
Guidance
Midpoint

3Q 2020

4Q 2019

FY 2020

FY 2019

Crude Oil and Condensate (MBod)

444.8

441.9

377.6

468.9

409.2

456.2

Natural Gas Liquids (MBbld)

141.4

145.0

140.1

144.0

136.0

134.1

Natural Gas (MMcfd)

1,292

1,275

1,190

1,425

1,252

1,366

Total Crude Oil Equivalent (MBoed)

801.5

799.4

716.0

850.3

753.8

818.0


Cash Capital Expenditures before Acquisitions ($MM)

829

880

499

1,388

3,490

6,234

Full–Year 2020

  • Generated $1.6 billion free cash flow at $39 average WTI oil price
  • Earned $850 million adjusted net income in 2020, or $1.46 per share
  • Reduced well costs 15% and per–unit cash operating costs 4%
  • Replaced 159% of production at $6.98 per Boe finding and development cost

Fourth Quarter 2020

  • Generated $666 million free cash flow
  • Capital expenditures 6% below guidance midpoint with oil production 1% above guidance midpoint
  • Per–unit cash operating cost 11% below guidance midpoint

2021 Plan

  • Increased common stock dividend by 10% to $1.65 indicated annual rate
  • Capital plan of $3.7 to $4.1 billion maintains oil production at 4Q 2020 rate and funds growing exploration program along with targeted cost and emissions reduction projects
  • 2021 capital plan and dividend funded with discretionary cash flow at less than $40 WTI oil price
  • Sets goal to achieve zero routine flaring by 2025 and set ambition to reach net zero scope 1 and scope 2 GHG emissions by 2040

Fourth Quarter 2020 Financial Performance


Adjusted Earnings per Share 4Q 2020 vs 3Q 2020

Price and Hedges
Higher prices for natural gas, natural gas liquids and crude oil all contributed to higher QoQ earnings. This was partially offset by a decrease in hedge settlements, to $72 million received in 4Q 2020 from $275 million received in 3Q 2020.

Volume
Total company crude oil production of 444,800 Bopd in the fourth quarter was above the guidance midpoint and increased 18% QoQ. Production increased 1% for NGLs and increased 9% for natural gas, for a 12% increase in total company equivalent volumes.

Per-Unit Costs
EOG demonstrated significant operating discipline as most per‐unit cost categories decreased QoQ. The largest contributors to cost improvements were DD&A, taxes other than income, G&A and exploration.

Other
The effective tax rate on an adjusted basis decreased 1.1% QoQ, offset by a decrease in other income.

 

Change in Cash 4Q 2020 vs 3Q 2020

Free Cash Flow
Net cash provided by operating activities, plus exploration expense and changes in working capital, yielded discretionary cash flow of $1.5 billion in 4Q 2020. EOG incurred $829 million of cash capital expenditures before acquisitions, resulting in $666 million of free cash flow.

Capital Expenditures
Cash capital expenditures before acquisitions were below the low end of the guidance range due to lower than forecast exploration and infrastructure spending.

 

Full-Year 2020 Financial Performance


Adjusted Earnings per Share 2020 vs 2019

Price and Hedges
Crude oil prices declined by 33% in 2020 compared with 2019, while prices for NGLs and natural gas declined by 16% and 23%, respectively. This was partially offset by an increase in hedge settlements, to $1.1 billion received in 2020 from $231 million received in 2019.

Volume
In response to low crude oil prices, EOG shut‐in certain wells during 2020 to defer production to future periods with higher prices, reducing 2020 crude oil volumes by 25,000 Bopd. Total company crude oil volumes in 2020 were 409,200 Bopd, 10% lower than 2019. For the year, NGL volumes increased 1% while natural gas volumes decreased 8%, contributing to 8% lower total company daily production.

Per-Unit Costs
EOG achieved significant per‐unit cost reductions during 2020, driven by sustainable efficiency improvements. Lease and well costs declined 16% on a per‐unit basis compared with 2019, to $3.85 per Boe. This was the largest contributor to the overall 4% reduction in per‐unit cash operating costs. A 2% decrease in per‐unit rates for DD&A and lower taxes other than income also contributed to the YoY cost improvement.

Other
Lower marketing margin (gathering, processing and marketing revenue less marketing costs), other revenue and other income contributed to lower adjusted EPS in 2020 vs. 2019. The effective tax rate on an adjusted basis in 2020 was similar compared with 2019.

Change in Cash 2020 vs 2019

Free Cash Flow
Net cash provided by operating activities, plus exploration expense and changes in working capital, yielded discretionary cash flow of $5.1 billion in 2020. EOG incurred $3.5 billion of cash capital expenditures before acquisitions, resulting in $1.6 billion of free cash flow.

Capital Expenditures
Cash capital expenditures before acquisitions of $3.5 billion decreased 44% from 2019.

 

Fourth Quarter 2020 Operating Performance


Lease and Well
LOE costs declined 17% compared with the prior–year period and were also $0.51 below the 4Q 2020 guidance midpoint, representing the largest contribution to the per–unit total cash cost performance compared with guidance. Lower workover and water handling costs were the largest contributors to the strong LOE performance.

General and Administrative
EOG maintained its staffing and salary levels during 2020, with a focus on protecting its unique culture and organizational effectiveness. Reductions in certain employee-related costs were the primary contributors to lower per-unit G&A costs.

Transportation, Gathering and Processing
Increased production volumes from the return of shut–in wells and the startup of new wells contributed to the per–unit cost reductions in 4Q 2020 compared with 3Q 2020.

Depreciation, Depletion and Amortization
The addition of new wells with lower finding costs and positive revisions from lower production costs contributed to the overall reduction in per–unit DD&A costs.

 

2020 Reserves and Dividend Increase


Finding and Development Cost

  • Finding and development cost, excluding price revisions, declined 15% YoY in 2020 to $6.98 per Boe.
  • Proved developed finding cost, excluding price revisions, declined 33% compared with 2019 to $7.41 per Boe.
  • Total drilling finding and development cost, excluding revisions, fell by 27% to $5.79 per Boe.
  • For the 33rd consecutive year, internal reserves estimates were within five percent of estimates independently prepared by DeGolyer and McNaughton.

2020 Reserve Replacement

  • Net proved reserve additions from all sources, excluding price revisions, replaced 159% of 2020 production. Extensions and discoveries were the largest contributor to the additions
  • Reduction in the number of wells in our future development plan, partially offset by lower forecast production costs, drove other than price (OTP) revision.

Sustainable, Growing Dividend Since 1999

  • The Board of Directors declared a dividend of $0.4125 per share on EOG's Common Stock.
  • The new dividend represents a 10% increase from the prior level and a cumulative increase of 146% since 2017.
  • The dividend is payable April 30, 2021 to stockholders of record as of April 16, 2021.
  • The indicated annual rate is $1.65.

 

2021 Capital Plan


Low Breakeven Unhedged Oil Price with Significant Free Cash Flow Leverage

  • Capital plan of $3.7 to $4.1 billion and dividend funded at less than $40 WTI oil price, before considering cash received or paid for settlements of commodity derivative contracts
  • Plan maintains 2021 crude oil volumes of 434,000 to 446,000 Bopd, approximately flat with 4Q 2020
  • No plans to increase capital expenditures or grow production volumes during 2021, even in higher commodity price environment
  • Focused on double–premium potential locations – minimum 60% ATROR at flat $40 WTI and $2.50 HH
  • Complete approximately 500 net wells in 2021 focused on Delaware Basin, Eagle Ford and Powder River Basin
  • Accelerating leasing and testing of numerous high–impact exploration projects
  • Capital plan also funds international plays and environmental projects

Additional Comments from Bill Thomas
"The 2021 capital plan is consistent with the strategy we have followed over the last year of not growing production in an oversupplied market. We are focused on increasing returns, generating free cash flow and maintaining our productive capacity while the oil market rebalances. In addition, we continue to invest in infrastructure to support reliable, safe, low-cost and low-emissions operations. With the improvements we have made in our operations and the size and quality of our premium inventory, we can now focus our capital allocation on the top half of our premium inventory – wells that are double–premium or better. Using double-premium investment metrics will make a step-change improvement in EOG's future performance.

"We continue to press forward in our exploration efforts and are allocating more capital in 2021 to test high–impact oil plays and lease acreage. While much of the industry is scaling back or abandoning exploration, we are confident that our pipeline of new high–return plays can significantly increase the long–term value of EOG and we are pursuing them aggressively.

"The increase in the regular dividend reflects the significant progress EOG has made in the past 12 months. We have lowered operating costs and well costs, in turn reducing the breakeven oil price needed to maintain our production. It also demonstrates the confidence we have in the resiliency of our business. We will evaluate all options to maximize total shareholder return as cash becomes available."

 

Committed to ESG Performance


EOG Sustainability Ambitions

  • Endorsed World Bank Zero Routine Flaring by 2030 Initiative with goal to achieve that standard by 2025
  • Set goal to capture 99.8% of wellhead gas in 2021 compared with 99.6% in 2020
  • Expanding first–of–its–kind closed–loop gas capture project in partnership with New Mexico Oil Conservation Division to minimize flaring caused by downstream market interruptions
  • Set ambition to reach net zero scope 1 and scope 2 GHG emissions3 by 2040
  • EOG believes achieving our net zero ambition helps support the broader framework of the Paris Agreement

Additional Comments from Bill Thomas
"I'm very proud of our employees for their efforts to deliver significant improvements in EOG's safety and environmental results the past several years. It is a strong testament to EOG's culture and only happens when everyone is focused and working together.

"We are moving aggressively to continue to improve our strong record of environmental performance. We are aiming to capture 99.8% of wellhead gas in 2021 and our goal is to eliminate routine flaring by 2025. We also keep raising the bar on water management, procuring more of our water from reuse sources every year. These efforts both reduce our environmental footprint and lower our costs.

"In the long run, our environmental ambitions are as bold as the rest of our operations. We have made significant progress the past several years, applying innovation and technology through our decentralized culture to reduce our emissions intensity. This progress, along with our ambition to reduce scope 1 and scope 2 GHG emissions to net zero by 2040, motivates us to pursue further innovations for the future. EOG is focused on being among the lowest cost, highest return and lowest emissions producers, playing a significant role in the long–term future of energy."

 

Fourth Quarter 2020 Results vs Guidance


Crude Oil and Condensate (MBod)

4Q 2020


 

4Q 2020
Guidance
Midpoint


Variance


3Q 2020


2Q 2020


1Q 2020


4Q 2019

US

442.4


440.0


2.4


376.6


330.9


482.7


468.3

Trinidad

2.3


1.8


0.5


1.0


0.1


0.5


0.5

Other Intl

0.1


0.1


0.0


0.0


0.1


0.1


0.1

Total

444.8


441.9


2.9


377.6


331.1


483.3


468.9

NGLs (MBbld)







Total

141.4


145.0


(3.6)


140.1


101.2


161.3


144.0

Natural Gas (MMcfd)







US

1,075


1,070


5


1,008


939


1,139


1,148

Trinidad

192


180


12


151


174


201


242

Other Intl

25


25


0


31


34


38


35

Total

1,292


1,275


17


1,190


1,147


1,378


1,425








Total Crude Oil Equivalent Volumes (MBoed)

801.5


799.4


2.1


716.0


623.4


874.1


850.3

Total MMBoe

73.7


73.5


0.2


65.9


56.7


79.5


78.2








Capital Expenditures ($MM)

829


880


(51)


499


478


1,685


1,388








Benchmark Price







Oil (WTI) ($/Bbl)

42.67






40.94


27.85


46.08


56.96

Natural Gas (HH) ($/Mcf)

2.65






1.94


1.73


1.98


2.49








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














US

(0.81)


(0.85)


0.04


(0.75)


(7.45)


0.89


0.18

Trinidad

(9.76)


(13.40)


3.64


(15.53)


(27.25)


(11.15)


(10.23)

Other Intl

(6.77)


(5.00)


(1.76)


(15.65)


20.93


11.43


($3.20)








NGLs - Realizations (% of WTI)

41.1%


40.0%


1.1%


35.0%


36.6%


23.7%


28.5%








Nat Gas ($/Mcf) - above (below) HH














US

(0.36)


(0.40)


0.04


(0.45)


(0.62)


(0.48)


(0.29)

Natural Gas Realizations ($/Mcf)














Trinidad

3.57


3.40


0.17


2.35


2.13


2.17


2.78

Other Intl

5.47


4.60


0.87


4.73


4.36


4.32


4.88








Unit Costs ($/Boe)







Lease and Well

3.54


4.05


(0.51)


3.45


4.32


4.14


4.28

Transportation Costs

2.64


2.75


(0.11)


2.74


2.67


2.62


2.66

General and Administrative

1.54


1.85


(0.31)


1.89


2.32


1.44


1.60

Gathering and Processing

1.62


1.80


(0.18)


1.74


1.71


1.62


1.63

Cash Operating Costs

9.34


10.45


(1.11)


9.82


11.02


9.82


10.17

DD&A

11.81


12.45


(0.64)


12.49


12.46


12.57


12.26








Expenses ($MM)







Exploration and Dry Hole

40


50


(10)


51


27


40


36

Impairment (GAAP)

142






79


305


1,573


228

Impairment (excluding certain impairments (non-GAAP))

56


125


(69)


52


66


57


69

Capitalized Interest

7


8


(1)


7


8


9


10

Net Interest

53


54


(1)


53


54


45


41








Taxes Other Than Income (% of Wellhead Revenue)

5.1%


7.0%


-1.9%


7.2%


9.4%


6.5%


6.7%

Income Taxes







Effective Rate

21.1%


22.5%


-1.3%


19.2%


20.6%


68.4%


23.4%

Current Tax (Benefit) / Expense ($MM)

36


30


6


23


17


(136)


12

 

First Quarter and Full-Year 2021 Guidance











1Q 2021 Guidance Range


FY 2021 Guidance Range


2020 Act


2019 Act

Crude Oil and Condensate (MBod)












US

418.0

-

428.0


433.0

-

444.0


408.1


455.5

Trinidad

1.6

-

2.4


1.0

-

1.8


1.0


0.6

Other Intl

0.0

-

0.2


0.0

-

0.2


0.1


0.1

Total

419.6

-

430.6


434.0

-

446.0


409.2


456.2

NGLs (MBbld)












Total

125.0

-

135.0


130.0

-

170.0


136.0


134.1

Natural Gas (MMcfd)












US

1,095

-

1,155


1,100

-

1,200


1,040


1,069

Trinidad

200

-

230


180

-

220


180


260

Other Intl

15

-

25


15

-

25


32


37

Total

1,310

-

1,410


1,295

-

1,445


1,252


1,366













Total Crude Oil Equivalent Volumes (MBoed)

762.9

-

800.6


779.8

-

856.9


753.8


818.0

Total MMBoe

68.7

-

72.1


284.6

-

312.8


275.9


298.6













Benchmark Price












Oil (WTI) ($/Bbl)









39.40


57.04

Natural Gas (HH) ($/Mcf)









2.08


2.62













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












US

(0.80)

-

1.20


(0.55)

-

1.45


(0.75)


0.70

Trinidad

(11.50)

-

(9.50)


(12.40)

-

(10.40)


(9.20)


(9.88)

Other Intl

(21.00)

-

(15.00)


(19.20)

-

(17.20)


3.68


0.36













NGLs - Realizations (% of WTI)












Total

43%

-

55%


38%

-

50%


34.0%


28.1%













Nat Gas ($/Mcf) - above (below) HH












US

1.75

-

4.25


(0.25)

-

1.25


(0.47)


(0.40)

Natural Gas Realizations ($/Mcf)












Trinidad

3.10

-

3.60


3.10

-

3.60


2.57


2.72

Other Intl

5.45

-

5.95


5.20

-

6.20


4.66


4.44













Capital Expenditures ($MM)

900

-

1,100


3,700

-

4,100


3,490


6,234













Unit Costs ($/Boe)












Lease and Well

3.60

-

4.30


3.50

-

4.20


3.85


4.58

Transport Costs

2.60

-

3.00


2.65

-

3.05


2.66


2.54

General and Administrative

1.60

-

1.70


1.50

-

1.60


1.75


1.64

Gathering and Processing

1.75

-

1.85


1.65

-

1.85


1.66


1.60

Cash Operating Costs

9.55

-

10.85


9.30

-

10.70


9.92


10.36

Total DD&A

12.60

-

13.10


11.70

-

12.70


12.32


12.56













Expenses ($MM)












Exploration and Dry Hole

35

-

45


140

-

180


159


168

Impairment (GAAP)









2,100


518

Impairment (excluding certain impairments (non-GAAP))

45

-

95


255

-

295


232


243

Capitalized Interest

5

-

10


25

-

30


31


38

Net Interest

45

-

50


180

-

185


205


185













Taxes Other (% of Wellhead Revenue)

6.0%

-

8.0%


6.5%

-

7.5%


6.6%


6.9%

Income Taxes












Effective Rate

21%

-

26%


21%

-

26%


18.2%


22.9%

Deferred Ratio

(5%)

-

5%


0%

-

15%


54.8%


107.4%

Fourth Quarter 2020 Results Webcast
Friday, February 26, 2021, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG's website for one year.
http://investors.eogresources.com/Investors

About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States, Trinidad, and China. To learn more visit www.eogresources.com.

Investor Contacts
David Streit 713–571–4902
Neel Panchal 713–571–4884

Media and Investor Contact
Kimberly Ehmer 713–571–4676

Category: Earnings

Endnotes

  1. Metric tons of gross operated GHG emissions (Scope 1), on a CO2e basis, per Mboe of total gross operated U.S. production.
  2. Mcf of gross operated methane emissions (Scope 1) per Mcf of total gross operated U.S. natural gas production.
  3. Total gross operated Scope 1 and 2 GHG emissions on a CO2e basis.

 

Glossary


Acq

Acquisitions

ATROR

After-tax rate of return

Bbl

Barrel

Bn

Billion

Boe

Barrels of oil equivalent

Bopd

Barrels of oil per day

Capex

Capital expenditures

CO2e

Carbon dioxide equivalent

DCF

Discretionary cash flow

DD&A

Depreciation, Depletion and Amortization

Disc

Discoveries

Divest

Divestitures

$MM

Million United States dollars

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

QoQ

Quarter over quarter

Trans

Transportation expense

USD

United States dollar

WTI

West Texas Intermediate

YoY

Year over year

This press release may include forward–looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward–looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward–looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet goals or ambitions with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, or pay and/or increase dividends are forward–looking statements. Forward–looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward–looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG's forward–looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Furthermore, this press release and any accompanying disclosures may include or reference certain forward–looking, non–GAAP financial measures, such as free cash flow or discretionary cash flow, and certain related estimates regarding future performance, results and financial position. Because we provide these measures on a forward–looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward–looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward–looking, non–GAAP financial measures to the respective most directly comparable forward–looking GAAP financial measures. Management believes these forward–looking, non–GAAP measures may be a useful   tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward–looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward–looking statements include, among others:

  • the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
  • the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
  • the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion, operating and capital costs related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
  • the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, natural gas liquids, and natural gas;
  • security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;
  • the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, and export facilities;
  • the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses and leases;
  • the impact of, and changes in, government policies, laws and regulations, including any changes or other actions which may result from the recent U.S. elections and change in U.S. administration and including tax laws and regulations; climate change and other environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
  • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and drilling, completing and operating costs with respect to such properties;
  • the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
  • competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
  • the availability and cost of employees and other personnel, facilities, equipment, materials (such as water and tubulars) and services;
  • the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
  • weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression, storage, transportation, and export facilities;
  • the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
  • EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and
  • to otherwise satisfy its capital expenditure requirements;
  • the extent to which EOG is successful in its completion of planned asset dispositions;
  • the extent and effect of any hedging activities engaged in by EOG;
  • the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
  • the duration and economic and financial impact of epidemics, pandemics or other public health issues, including the COVID-19 pandemic;
  • geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
  • the use of competing energy sources and the development of alternative energy sources;
  • the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
  • acts of war and terrorism and responses to these acts; and
  • the other factors described under ITEM 1A, Risk Factors, of EOG's Annual Report on Form 10–K for the fiscal year ended December 31, 2020 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10–Q or Current Reports on Form 8–K.

In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG's Annual Report on  Form 10–K for the fiscal year ended December 31, 2020, available from EOG at P.O. Box 4362, Houston, Texas 77210–4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1–800–SEC–0330 or from the SEC's website at www.sec.gov. In addition, reconciliation and calculation schedules for non–GAAP financial measures can be found on the EOG website at www.eogresources.com.

Income Statements


In thousands of USD, except per share data (Unaudited)


4Q 2020


3Q 2020


4Q 2019


FY 2020


FY 2019

Operating Revenues and Other





Crude Oil and Condensate

1,710,862



1,394,622



2,464,274



5,785,609



9,612,532


Natural Gas Liquids

228,299



184,771



215,070



667,514



784,818


Natural Gas

301,883



183,790



309,606



837,133



1,184,095


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

69,304



(3,978)



(62,347)



1,144,737



180,275


Gathering, Processing and Marketing

642,597



538,955



1,238,792



2,582,984



5,360,282


Gains (Losses) on Asset Dispositions, Net

(5,600)



(70,976)



119,963



(46,883)



123,613


Other, Net

18,153



18,300



34,888



60,954



134,358


Total

2,965,498



2,245,484



4,320,246



11,032,048



17,379,973












Operating Expenses










Lease and Well

260,896



227,473



334,538



1,063,374



1,366,993


Transportation Costs

194,708



180,257



208,312



734,989



758,300


Gathering and Processing Costs

119,172



114,790



127,615



459,211



479,102


Exploration Costs

40,415



38,413



36,495



145,788



139,881


Dry Hole Costs

20



12,604





13,083



28,001


Impairments

142,440



78,990



228,135



2,099,780



517,896


Marketing Costs

622,941



521,351



1,237,259



2,697,729



5,351,524


Depreciation, Depletion and Amortization

870,564



823,050



959,208



3,400,353



3,749,704


General and Administrative

113,235



124,460



125,187



483,823



489,397


Taxes Other Than Income

113,445



126,810



199,746



477,934



800,164


Total

2,477,836



2,248,198



3,456,495



11,576,064



13,680,962












Operating Income (Loss)

487,662



(2,714)



863,751



(544,016)



3,699,011


Other Income (Expense), Net

(6,781)



3,401



8,152



10,228



31,385


Income (Loss) Before Interest Expense
       
and Income Taxes

480,881



687



871,903



(533,788)



3,730,396


Interest Expense, Net

53,121



53,242



40,695



205,266



185,129


Income (Loss) Before Income Taxes

427,760



(52,555)



831,208



(739,054)



3,545,267


Income Tax Provision (Benefit)

90,294



(10,088)



194,687



(134,482)



810,357


Net Income (Loss)

337,466



(42,467)



636,521



(604,572)



2,734,910












Dividends Declared per Common Share

0.3750



0.3750



0.2875



1.5000



1.0825


Net Income (Loss) Per Share










Basic

0.58



(0.07)



1.10



(1.04)



4.73


Diluted

0.58



(0.07)



1.10



(1.04)



4.71


Average Number of Common Shares










Basic

579,624



579,055



578,219



578,949



577,670


Diluted

580,885



579,055



580,849



578,949



580,777


 

Wellhead Volumes and Prices


(Unaudited)


4Q 2020


4Q 2019


% Change


3Q 2020


FY 2020


FY 2019


% Change















Crude Oil and Condensate Volumes (MBbld) (A)












United States

442.4



468.3



-6

%


376.6



408.1



455.5



-10

%

Trinidad

2.3



0.5



360

%


1.0



1.0



0.6



67

%

Other International (B)

0.1



0.1



0

%




0.1



0.1



0

%

Total

444.8



468.9



-5

%


377.6



409.2



456.2



-10

%















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














United States

41.86



57.14



-27

%


40.19



38.65



57.74



-33

%

Trinidad

32.91



46.43



-30

%


25.41



30.20



47.16



-36

%

Other International (B)

35.90



53.76



-33

%


25.29



43.08



57.40



-25

%

Composite

41.81



57.13



-27

%


40.15



38.63



57.72



-33

%















Natural Gas Liquids Volumes (MBbld) (A)














United States

141.4



144.0



-2

%


140.1



136.0



134.1



1

%

Other International (B)














Total

141.4



144.0



-2

%


140.1



136.0



134.1



1

%















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














United States

17.54



16.23



8

%


14.34



13.41



16.03



-16

%

Other International (B)














Composite

17.54



16.23



8

%


14.34



13.41



16.03



-16

%















Natural Gas Volumes (MMcfd) (A)














United States

1,075



1,148



-6

%


1,008



1,040



1,069



-3

%

Trinidad

192



242



-21

%


151



180



260



-31

%

Other International (B)

25



35



-29

%


31



32



37



-14

%

Total

1,292



1,425



-9

%


1,190



1,252



1,366



-8

%















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














United States

2.29



2.20



4

%


1.49



1.61



2.22



-27

%

Trinidad

3.57



2.78



28

%


2.35



2.57



2.72



-6

%

Other International (B)

5.47



4.88



12

%


4.73



4.66



4.44



5

%

Composite

2.54



2.36



8

%


1.68



1.83



2.38



-23

%















Crude Oil Equivalent Volumes (MBoed) (D)














United States

763.0



803.6



-5

%


684.7



717.5



767.8



-7

%

Trinidad

34.2



40.9



-16

%


26.2



30.9



44.0



-30

%

Other International (B)

4.3



5.8



-26

%


5.1



5.4



6.2



-13

%

Total

801.5



850.3



-6

%


716.0



753.8



818.0



-8

%















Total MMBoe (D)

73.7



78.2



-6

%


65.9



275.9



298.6



-8

%

















(A)

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

(B)

Other International includes EOG's China and Canada operations.

(C)

Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Consolidated Financial Statements in EOG's Annual Report on Form 10-K for the year ended December 31, 2020).

(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 thousands of USD, except share data (Unaudited)


December 31,


December 31,


2020


2019

Current Assets




Cash and Cash Equivalents

3,328,928



2,027,972


Accounts Receivable, Net

1,522,256



2,001,658


Inventories

629,401



767,297


Assets from Price Risk Management Activities

64,559



1,299


Income Taxes Receivable

23,037



151,665


Other

293,987



323,448


Total

5,862,168



5,273,339



Property, Plant and Equipment




Oil and Gas Properties (Successful Efforts Method)

64,792,798



62,830,415


Other Property, Plant and Equipment

4,478,976



4,472,246


Total Property, Plant and Equipment

69,271,774



67,302,661


Less:  Accumulated Depreciation, Depletion and Amortization

(40,673,147)



(36,938,066)


Total Property, Plant and Equipment, Net

28,598,627



30,364,595


Deferred Income Taxes

2,127



2,363


Other Assets

1,341,679



1,484,311


Total Assets

35,804,601



37,124,608



Current Liabilities




Accounts Payable

1,681,193



2,429,127


Accrued Taxes Payable

205,754



254,850


Dividends Payable

217,419



166,273


Liabilities from Price Risk Management Activities



20,194


Current Portion of Long-Term Debt

781,054



1,014,524


Current Portion of Operating Lease Liabilities

295,089



369,365


Other

279,595



232,655


Total

3,460,104



4,486,988






Long-Term Debt

5,035,351



4,160,919


Other Liabilities

2,147,932



1,789,884


Deferred Income Taxes

4,859,327



5,046,101


Commitments and Contingencies








Stockholders' Equity




Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 583,694,850
Shares and 582,213,016 Shares Issued at December 31, 2020 and 2019,
respectively

205,837



205,822


Additional Paid in Capital

5,945,024



5,817,475


Accumulated Other Comprehensive Loss

(12,328)



(4,652)


Retained Earnings

14,169,969



15,648,604


Common Stock Held in Treasury, 124,265 Shares and 298,820 Shares
at December 31, 2020 and 2019, respectively

(6,615)



(26,533)


Total Stockholders' Equity

20,301,887



21,640,716


Total Liabilities and Stockholders' Equity

35,804,601



37,124,608


 

Cash Flows Statements


In thousands of USD (Unaudited)


4Q 2020


4Q 2019


FY 2020


FY 2019

Cash Flows from Operating Activities








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








Net Income (Loss)

337,466



636,521



(604,572)



2,734,910


Items Not Requiring (Providing) Cash








Depreciation, Depletion and Amortization

870,564



959,208



3,400,353



3,749,704


Impairments

142,440



228,135



2,099,780



517,896


Stock-Based Compensation Expenses

32,942



42,415



146,396



174,738


Deferred Income Taxes

54,613



123,082



(186,390)



631,658


(Gains) Losses on Asset Dispositions, Net

5,600



(119,963)



46,883



(123,613)


Other, Net

11,190



341



12,826



4,496


Dry Hole Costs

20





13,083



28,001


Mark-to-Market Commodity Derivative Contracts








Total (Gains) Losses

(69,304)



62,347



(1,144,737)



(180,275)


Net Cash Received from Settlements of Commodity Derivative
   Contracts

71,753



91,521



1,070,647



231,229


Other, Net

2,539



(253)



1,354



962


Changes in Components of Working Capital and Other Assets and
   Liabilities








Accounts Receivable

(464,105)



(85,937)



466,523



(91,792)


Inventories

30,633



34,686



122,647



90,284


Accounts Payable

427,206



34,286



(795,267)



168,539


Accrued Taxes Payable

(61,491)



(47,925)



(49,096)



40,122


Other Assets

(90,336)



(36,572)



324,521



358,001


Other Liabilities

20,837



(38,304)



8,098



(56,619)


Changes in Components of Working Capital Associated with
   Investing Activities

(201,329)



(76,384)



74,734



(115,061)


Net Cash Provided by Operating Activities

1,121,238



1,807,204



5,007,783



8,163,180


Investing Cash Flows








Additions to Oil and Gas Properties

(784,954)



(1,285,003)



(3,243,474)



(6,151,885)


Additions to Other Property, Plant and Equipment

(56,208)



(83,291)



(221,226)



(270,641)


Proceeds from Sales of Assets

2,985



104,883



191,928



140,292


Other Investing Activities



(10,000)





(10,000)


Changes in Components of Working Capital Associated with
   Investing Activities

201,329



76,384



(74,734)



115,061


Net Cash Used in Investing Activities

(636,848)



(1,197,027)



(3,347,506)



(6,177,173)


Financing Cash Flows








Long-Term Debt Borrowings





1,483,852




Long-Term Debt Repayments





(1,000,000)



(900,000)


Dividends Paid

(219,581)



(167,349)



(820,823)



(588,200)


Treasury Stock Purchased

(1,309)



(2,914)



(16,130)



(25,152)


Proceeds from Stock Options Exercised and Employee Stock
   Purchase Plan

7,555



8,388



16,169



17,946


Debt Issuance Costs

(14)





(2,649)



(5,016)


Repayment of Finance Lease Liabilities

(6,135)



(3,261)



(19,444)



(12,899)


Net Cash Used in Financing Activities

(219,484)



(165,136)



(359,025)



(1,513,321)


Effect of Exchange Rate Changes on Cash

(1,534)



(174)



(296)



(348)


Increase in Cash and Cash Equivalents

263,372



444,867



1,300,956



472,338


Cash and Cash Equivalents at Beginning of Period

3,065,556



1,583,105



2,027,972



1,555,634


Cash and Cash Equivalents at End of Period

3,328,928



2,027,972



3,328,928



2,027,972


 

Non-GAAP Financial Measures

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


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


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. 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), Total 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 thousands of USD, except per share data (Unaudited)









4Q 2020


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Income (GAAP)

427,760



(90,294)



337,466



0.58


Adjustments:








Gains on Mark-to-Market Commodity Derivative Contracts

(69,304)



15,211



(54,093)



(0.10)


Net Cash Received from Settlements of Commodity Derivative Contracts

71,753



(15,749)



56,004



0.10


Add: Losses on Asset Dispositions, Net

5,600



(1,248)



4,352



0.01


Add: Certain Impairments

86,451



(18,692)



67,759



0.12


Adjustments to Net Income

94,500



(20,478)



74,022



0.13










Adjusted Net Income (Non-GAAP)

522,260



(110,772)



411,488



0.71










Average Number of Common Shares (GAAP)








Basic







579,624


Diluted







580,885










Average Number of Common Shares (Non-GAAP)








Basic







579,624


Diluted







580,885



3Q 2020


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Loss (GAAP)

(52,555)



10,088



(42,467)



(0.07)


Adjustments:








Losses on Mark-to-Market Commodity Derivative Contracts

3,978



(873)



3,105



(0.01)


Net Cash Received from Settlements of Commodity Derivative Contracts

275,133



(60,386)



214,747



0.37


Add: Losses on Asset Dispositions, Net

70,976



(15,600)



55,376



0.10


Add: Certain Impairments

26,531



(5,636)



20,895



0.04


Adjustments to Net Loss

376,618



(82,495)



294,123



0.50










Adjusted Net Income (Non-GAAP)

324,063



(72,407)



251,656



0.43










Average Number of Common Shares (GAAP)








Basic







579,055


Diluted







579,055










Average Number of Common Shares (Non-GAAP)







579,055


Basic







580,609


Diluted








 

Adjusted Net Income (Loss)


In thousands of USD, except per share data (Unaudited)









4Q 2019


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Income (GAAP)

831,208



(194,687)



636,521



1.10


Adjustments:








Losses on Mark-to-Market Commodity Derivative Contracts

62,347



(13,684)



48,663



0.08


Net Cash Received from Settlements of Commodity Derivative Contracts

91,521



(20,087)



71,434



0.12


Less: Gains on Asset Dispositions, Net

(119,963)



26,342



(93,621)



(0.16)


Add: Certain Impairments

158,725



(34,837)



123,888



0.21


Adjustments to Net Income

192,630



(42,266)



150,364



0.25










Adjusted Net Income (Non-GAAP)

1,023,838



(236,953)



786,885



1.35










Average Number of Common Shares (GAAP)








Basic







578,219


Diluted







580,849










Average Number of Common Shares (Non-GAAP)







578,219


Basic







580,849


Diluted








 

Adjusted Net Income (Loss)


In thousands of USD, except per share data (Unaudited)









FY 2020


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Loss (GAAP)

(739,054)



134,482



(604,572)



(1.04)


Adjustments:








Gains on Mark-to-Market Commodity Derivative Contracts

(1,144,737)



251,247



(893,490)



(1.55)


Net Cash Received from Settlements of Commodity Derivative Contracts

1,070,647



(234,986)



835,661



1.44


Add: Losses on Asset Dispositions, Net

46,883



(10,305)



36,578



0.06


Add: Certain Impairments

1,868,465



(392,652)



1,475,813



2.55


Adjustments to Net Loss

1,841,258



(386,696)



1,454,562



2.50










Adjusted Net Income (Non-GAAP)

1,102,204



(252,214)



849,990



1.46










Average Number of Common Shares (GAAP)








Basic







578,949


Diluted







578,949










Average Number of Common Shares (Non-GAAP)








Basic







578,949


Diluted







580,595



FY 2019


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Income (GAAP)

3,545,267



(810,357)



2,734,910



4.71


Adjustments:








Gains on Mark-to-Market Commodity Derivative Contracts

(180,275)



39,567



(140,708)



(0.24)


Net Cash Received from Settlements of Commodity Derivative Contracts

231,229



(50,750)



180,479



0.31


Less: Gains on Asset Dispositions, Net

(123,613)



27,252



(96,361)



(0.17)


Add: Certain Impairments

274,974



(60,351)



214,623



0.37


Adjustments to Net Income

202,315



(44,282)



158,033



0.27










Adjusted Net Income (Non-GAAP)

3,747,582



(854,639)



2,892,943



4.98










Average Number of Common Shares (GAAP)








Basic







577,670


Diluted







580,777










Average Number of Common Shares (Non-GAAP)








Basic







577,670


Diluted







580,777


 

Adjusted Net Income per Share


In thousands of USD, except share and per Boe data (Unaudited)

3Q 2020 Adjusted Net Income per Share (Non-GAAP)



0.43






Realized Price




4Q 2020 Composite Average Wellhead Revenue per Boe

30.39




Less:  3Q 2020 Composite Average Welhead Revenue per Boe

(26.77)




Subtotal

3.62




Multiplied by: 4Q 2020 Crude Oil Equivalent Volumes (MMBoe)

73.7




Total Change in Revenue

266,794




Less: Taxes Other Than Income Benefit (Cost) Imputed (based on 6.5%)

(17,342)




Net Change in Revenue

249,452




Less: Tax Benefit Imputed (based on 21%)

(52,385)




Change in Net Income

197,067




Change in Diluted Earnings per Share



0.34






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




4Q 2020 Net Cash Received from Settlement of Commodity Derivative Contracts

71,753




Less:  Income Tax Impact

(15,749)




After Tax - (a)

56,004




3Q 2020 Net Cash Received from Settlement of Commodity Derivative Contracts

275,133




Less:  Income Tax Impact

(60,386)




After Tax - (b)

214,747




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

(158,743)




Change in Diluted Earnings per Share



(0.27)






Wellhead Volumes




4Q 2020 Crude Oil Equivalent Volumes (MMBoe)

73.7




Less:  3Q 2020 Crude Oil Equivalent Volumes (MMBoe)

(65.9)




Subtotal

7.8




Times:  4Q 2020 Composite Average Margin per Boe (Non-GAAP)
   (Including Total Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent"
   schedule)

5.67




Change in Revenue

44,226




Less:  Taxes Other Than Income Benefit (Cost) Imputed (based on 6.5%)

(2,875)




Net Change in Reveue

41,351




Less:  Tax Benefit Imputed (based on 21%)

(8,684)




Change in Net Income

32,668




Change in Diluted Earnings per Share



0.06






Operating Cost per Boe




3Q 2020 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs)
   (refer to "Costs per Barrel of Oil Equivalent" schedule)

26.62




Less:  4Q 2020 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration
   Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)

(24.72)




Subtotal

1.9




Times:  4Q 2020 Crude Oil Equivalent Volumes (MMBoe)

73.7




Change in Before-Tax Net Income

140,030




Less:  Tax Benefit Imputed (based on 21%)

(29,406)




Change in Net Income

110,624




Change in Diluted Earnings per Share



0.19






Other Items



(0.04)






4Q 2020 Adjusted Net Income per Share (Non-GAAP)



0.71






4Q 2020 Average Number of Common Shares (Non-GAAP) - Diluted

580,885




 

Adjusted Net Income per Share


In thousands of USD, except share and per Boe data (Unaudited)

FY 2019 Adjusted Net Income per Share (Non-GAAP)



4.98






Realized Price




FY 2020 Composite Average Wellhead Revenue per Boe

26.42




Less:  FY 2019 Composite Average Welhead Revenue per Boe

(38.79)




Subtotal

(12.37)




Multiplied by: FY 2020 Crude Oil Equivalent volumes (MMBoe)

275.9




Total Change in Revenue

(3,412,883)




Less: Taxes Other Than Income Benefit (Cost) Imputed (based on 6.5%)

221,837




Net Change in Revenue

(3,191,046)




Less: Tax Benefit Imputed (based on 21%)

670,120




Change in Net Income

(2,520,926)




Change in Diluted Earnings per Share



(4.34)






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




FY 2020 Net Cash Received from Settlement of Commodity Derivative Contracts

1,070,647




Less:  Income Tax Impact

(234,986)




After Tax - (a)

835,661




FY 2019 Net Cash Received from Settlement of Commodity Derivative Contracts

231,229




Less:  Income Tax Impact

(50,750)




After Tax - (b)

180,479




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

655,182




Change in Diluted Earnings per Share



1.13






Wellhead Volumes




FY 2020 Crude Oil Equivalent Volumes (MMBoe)

275.9




Less:  FY 2019 Crude Oil Equivalent Volumes (MMBoe)

(298.6)




Subtotal

(22.7)




Times:  FY 2020 Composite Average Margin per Boe (Non-GAAP)
  
(Including Total Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent"
   schedule)

0.29




Change in Revenue

(6,583)




Less:  Taxes Other Than Income Benefit (Cost) Imputed (based on 6.5%)

428




Net Change in Reveue

(6,155)




Less:  Tax Benefit Imputed (based on 21%)

1,293




Change in Net Income

(4,863)




Change in Diluted Earnings per Share



(0.01)






Operating Cost per Boe




FY 2019 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs)
   (refer to "Costs per Barrel of Oil Equivalent" schedule)

27.6




Less:  FY 2020 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration
   Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)

(26.13)




Subtotal

1.47




Times:  FY 2020 Crude Oil Equivalent Volumes (MMBoe)

275.9




Change in Before-Tax Net Income

405,573




Less:  Tax Benefit Imputed (based on 21%)

(85,170)




Change in Net Income

320,403




Change in Diluted Earnings per Share



0.55






Other Items



(0.85)






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



1.46






FY 2020 Average Number of Common Shares (Non-GAAP) - Diluted

580,595




 

Discretionary Cash Flow and Free Cash Flow


In thousands of USD (Unaudited)











4Q 2020


3Q 2020


4Q 2019


FY 2020


FY 2019











Net Cash Provided by Operating Activities (GAAP)

1,121,238



1,213,553



1,807,204



5,007,783



8,163,180












Adjustments:










Exploration Costs (excluding Stock-Based Compensation
   Expenses)

34,295



37,380



28,483



124,641



113,733


Other Non-Current Income Taxes - Net Receivable





59,174



112,704



238,711


Changes in Components of Working Capital and Other
   Assets and Liabilities










Accounts Receivable

464,105



260,829



85,937



(466,523)



91,792


Inventories

(30,633)



(7,439)



(34,686)



(122,647)



(90,284)


Accounts Payable

(427,206)



37,755



(34,286)



795,267



(168,539)


Accrued Taxes Payable

61,491



(73,482)



47,925



49,096



(40,122)


Other Assets

90,336



(161,879)



36,572



(324,521)



(358,001)


Other Liabilities

(20,837)



(51,664)



38,304



(8,098)



56,619


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

201,329



6,091



76,384



(74,734)



115,061


Discretionary Cash Flow (Non-GAAP)

1,494,118



1,261,144



2,111,011



5,092,968



8,122,150












Discretionary Cash Flow (Non-GAAP) - Percentage Decrease

-29

%






-37

%













Discretionary Cash Flow (Non-GAAP)

1,494,118



1,261,144



2,111,011



5,092,968



8,122,150


Less:










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

(828,507)



(499,305)



(1,388,233)



(3,490,148)



(6,234,454)


Free Cash Flow (Non-GAAP) (b)

665,611



761,839



722,778



1,602,820



1,887,696












(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the three-month periods ended September 30, 2020 and December 31, 2020 and 2019 and twelve-month periods ended December 31, 2020 and 2019:











Total Expenditures (GAAP)

1,107,557



645,534



1,506,061



4,113,280



6,900,450


Less:










Asset Retirement Costs

(49,109)



(42,650)



(34,537)



(117,322)



(186,088)


Non-Cash Expenditures of Other Property, Plant and Equipment

(1)





(1,680)



(61)



(2,266)


Non-Cash Acquisition Costs of Unproved Properties

(68,337)



(80,757)



(33,317)



(196,825)



(97,704)


Non-Cash Finance Leases

(100,485)







(173,762)




Acquisition Costs of Proved Properties

(61,118)



(22,822)



(48,294)



(135,162)



(379,938)


Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)

828,507



499,305



1,388,233



3,490,148



6,234,454












(b) To better align the  presentation of  free cash  flow for comparative purposes  within the industry, free cash flow  excludes dividends paid (GAAP) as a reconciling item for the three-month periods ending September 30, 2020 and December 31, 2020 and twelve-month periods ending December 31, 2020.  The comparative prior periods shown have been revised to conform to this presentation.











Maintenance Capital Expenditures










The capital expenditures required to fund drilling and infrastructure requirements to keep U.S. oil production in 2021 flat relative to 4Q 2020 U.S. oil production.

 

Discretionary Cash Flow and Free Cash Flow


In thousands of USD (Unaudited)













FY 2019


FY 2018


FY 2017







Net Cash Provided by Operating Activities (GAAP)

8,163,180



7,768,608



4,265,336








Adjustments:






Exploration Costs (excluding Stock-Based Compensation Expenses)

113,733



123,986



122,688


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

238,711



148,993



(513,404)


Changes in Components of Working Capital and Other Assets and Liabilities






Accounts Receivable

91,792



368,180



392,131


Inventories

(90,284)



395,408



174,548


Accounts Payable

(168,539)



(439,347)



(324,192)


Accrued Taxes Payable

(40,122)



92,461



63,937


Other Assets

(358,001)



125,435



658,609


Other Liabilities

56,619



(10,949)



89,871


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

115,061



(301,083)



(89,992)


Discretionary Cash Flow (Non-GAAP)

8,122,150



8,271,692



4,839,532








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

-2

%


71

%


76

%







Discretionary Cash Flow (Non-GAAP)

8,122,150



8,271,692



4,839,532


Less:






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

(6,234,454)



(6,172,950)



(4,228,859)


Free Cash Flow (Non-GAAP) (b)

1,887,696



2,098,742



610,673








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







Total Expenditures (GAAP)

6,900,450



6,706,359



4,612,746


Less:






Asset Retirement Costs

(186,088)



(69,699)



(55,592)


Non-Cash Expenditures of Other Property, Plant and Equipment

(2,266)



(49,484)




Non-Cash Acquisition Costs of Unproved Properties

(97,704)



(290,542)



(255,711)


Acquisition Costs of Proved Properties

(379,938)



(123,684)



(72,584)


Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)

6,234,454



6,172,950



4,228,859








(b) To better align the presentation of free cash flow for comparative purposes within the industry, free cash flow excludes dividends paid (GAAP) as a reconciling item for the twelve-month period ending December 31, 2019.  The comparative prior periods shown have been revised to conform to this presentation.

 

Discretionary Cash Flow and Free Cash Flow


In thousands of USD (Unaudited)





















FY 2016


FY 2015


FY 2014


FY 2013


FY 2012











Net Cash Provided by Operating Activities (GAAP)

2,359,063



3,595,165



8,649,155



7,329,414



5,236,777












Adjustments:










Exploration Costs (excluding Stock-Based
   Compensation Expenses)

104,199



124,011



157,453



134,531



159,182


Excess Tax Benefits from Stock-Based Compensation

29,357



26,058



99,459



55,831



67,035


Changes in Components of Working Capital and
   Other Assets and Liabilities










Accounts Receivable

232,799



(641,412)



(84,982)



23,613



178,683


Inventories

(170,694)



(58,450)



161,958



(53,402)



156,762


Accounts Payable

74,048



1,409,197



(543,630)



(178,701)



17,150


Accrued Taxes Payable

(92,782)



(11,798)



(16,486)



(75,142)



(78,094)


Other Assets

40,636



(118,143)



14,448



109,567



118,520


Other Liabilities

16,225



66,257



(75,420)



20,382



(36,114)


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

156,102



(499,767)



103,414



51,361



(74,158)


Discretionary Cash Flow (Non-GAAP)

2,748,953



3,891,118



8,465,369



7,417,454



5,745,743












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

-29

%


-54

%


14

%


29

%













Discretionary Cash Flow (Non-GAAP)

2,748,953



3,891,118



8,465,369



7,417,454



5,745,743


Less:










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

(2,706,397)



(4,682,326)



(8,292,090)



(7,101,791)



(7,539,994)


Free Cash Flow (Non-GAAP) (b)

42,556



(791,208)



173,279



315,663



(1,794,251)












(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the twelve-month periods ended December 31, 2016, 2015, 2014, 2013 and 2012:











Total Expenditures (GAAP)

6,554,053



5,216,413



8,631,906



7,361,457



7,753,828


Less:










Asset Retirement Costs

19,865



(53,470)



(195,630)



(134,445)



(126,987)


Non-Cash Expenditures of Other Property, Plant
   and Equipment

(16,585)









(65,791)


Non-Cash Acquisition Costs of Unproved Properties

(3,101,913)





(5,085)



(5,007)



(20,317)


Acquisition Costs of Proved Properties

(749,023)



(480,617)



(139,101)



(120,214)



(739)


Total Cash Capital Expenditures Before Acquisitions
   (Non-GAAP)

2,706,397



4,682,326



8,292,090



7,101,791



7,539,994












(b) To better align the presentation of free cash flow for comparative purposes within the industry, the presentation of free cash flow for the comparative prior periods shown has been revised to exclude dividends paid (GAAP) as a reconciling item.

 

Total Expenditures


In millions of USD (Unaudited)

























4Q 2020


4Q 2019


FY 2020


FY 2019


FY 2018


FY 2017













Exploration and Development Drilling

592



1,086



2,664



4,951



4,935



3,132


Facilities

99



130



347



629



625



575


Leasehold Acquisitions

102



75



265



276



488



427


Property Acquisitions

61



48



135



380



124



73


Capitalized Interest

7



10



31



38



24



27


Subtotal

861



1,349



3,442



6,274



6,196



4,234


Exploration Costs

41



37



146



140



149



145


Dry Hole Costs





13



28



5



5


Exploration and Development Expenditures

902



1,386



3,601



6,442



6,350



4,384


Asset Retirement Costs

48



35



117



186



70



56


Total Exploration and Development Expenditures

950



1,421



3,718



6,628



6,420



4,440


Other Property, Plant and Equipment

157



85



395



272



286



173


Total Expenditures

1,107



1,506



4,113



6,900



6,706



4,613


 

EBITDAX and Adjusted EBITDAX


In thousands of USD (Unaudited)









4Q 2020


4Q 2019


FY 2020


FY 2019









Net Income (Loss) (GAAP)

337,466



636,521



(604,572)



2,734,910










Adjustments:








Interest Expense, Net

53,121



40,695



205,266



185,129


Income Tax Provision (Benefit)

90,294



194,687



(134,482)



810,357


Depreciation, Depletion and Amortization

870,564



959,208



3,400,353



3,749,704


Exploration Costs

40,415



36,495



145,788



139,881


Dry Hole Costs

20





13,083



28,001


Impairments

142,440



228,135



2,099,780



517,896


EBITDAX (Non-GAAP)

1,534,320



2,095,741



5,125,216



8,165,878


(Gains) Losses on MTM Commodity Derivative Contracts

(69,304)



62,347



(1,144,737)



(180,275)


Net Cash Received from Settlements of Commodity Derivative Contracts

71,753



91,521



1,070,647



231,229


(Gains) Losses on Asset Dispositions, Net

5,600



(119,963)



46,883



(123,613)










Adjusted EBITDAX (Non-GAAP)

1,542,369



2,129,646



5,098,009



8,093,219










Adjusted EBITDAX (Non-GAAP) - Percentage Decrease

-28

%




-37

%











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)









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


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


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


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


In millions of USD, except ratio data (Unaudited)










December 31,
2016


September 30,
2016


June 30,

2016


March 31,

2016


December 31,

2015










Total Stockholders' Equity - (a)

13,982



11,798



12,057



12,405



12,943












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

6,986



6,986



6,986



6,986



6,660


Less: Cash

(1,600)



(1,049)



(780)



(668)



(719)


Net Debt (Non-GAAP) - (c)

5,386



5,937



6,206



6,318



5,941












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

20,968



18,784



19,043



19,391



19,603












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

19,368



17,735



18,263



18,723



18,884












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

33.3

%


37.2

%


36.7

%


36.0

%


34.0

%











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

27.8

%


33.5

%


34.0

%


33.7

%


31.5

%

 

Proved Reserves and Reserve Replacement Data


(Unaudited)









2020 Net Proved Reserves Reconciliation Summary

United

States


Trinidad


Other

International


Total

Crude Oil and Condensate (MMBbl)








Beginning Reserves

1,694.0



0.3



0.1



1,694.4


Revisions

(225.4)







(225.4)


Purchases in Place

2.2







2.2


Extensions, Discoveries and Other Additions

194.7



0.9





195.6


Sales in Place

(3.2)







(3.2)


Production

(149.4)



(0.4)





(149.8)


Ending Reserves

1,512.9



0.8



0.1



1,513.8










Natural Gas Liquids (MMBbl)








Beginning Reserves

739.7







739.7


Revisions

(59.8)







(59.8)


Purchases in Place

3.8







3.8


Extensions, Discoveries and Other Additions

180.2







180.2


Sales in Place

(1.4)







(1.4)


Production

(49.8)







(49.8)


Ending Reserves

812.7







812.7










Natural Gas (Bcf)








Beginning Reserves

5,034.8



276.1



58.8



5,369.7


Revisions

(497.7)



4.8



1.6



(491.3)


Purchases in Place

26.3







26.3


Extensions, Discoveries and Other Additions

1,077.9



53.9





1,131.8


Sales in Place

(157.3)







(157.3)


Production

(441.4)



(65.9)



(11.6)



(518.9)


Ending Reserves

5,042.6



268.9



48.8



5,360.3










Oil Equivalents (MMBoe)








Beginning Reserves

3,272.8



46.3



10.0



3,329.1


Revisions

(368.1)



0.8



0.2



(367.1)


Purchases in Place

10.4







10.4


Extensions, Discoveries and Other Additions

554.6



9.8





564.4


Sales in Place

(30.8)







(30.8)


Production

(272.8)



(11.3)



(2.0)



(286.1)


Ending Reserves

3,166.1



45.6



8.2



3,219.9










Net Proved Developed Reserves (MMBoe)








At December 31, 2019

1,684.2



29.9



7.1



1,721.2


At December 31, 2020

1,614.4



29.3



5.4



1,649.1










2020 Exploration and Development Expenditures ($ Millions)









Acquisition Cost of Unproved Properties

264.8







264.8


Exploration Costs

203.4



81.2



11.4



296.0


Development Costs

2,901.0



3.9





2,904.9


Total Drilling

3,369.2



85.1



11.4



3,465.7


Acquisition Cost of Proved Properties

97.0





38.2



135.2


Asset Retirement Costs

97.2



0.2



19.9



117.3


Total Exploration and Development Expenditures

3,563.4



85.3



69.5



3,718.2


Gathering, Processing and Other

394.9



0.1



0.1



395.1


Total Expenditures

3,958.3



85.4



69.6



4,113.3


Proceeds from Sales in Place

(191.9)







(191.9)


Net Expenditures

3,766.4



85.4



69.6



3,921.4










Reserve Replacement Costs ($ / Boe) *








All-in Total, Net of Revisions

16.53



8.03



248.00



16.32


All-in Total, Excluding Revisions Due to Price

6.85



8.03



248.00



6.98










Reserve Replacement *








Drilling Only

203

%


87

%


0

%


197

%

All-in Total, Net of Revisions and Dispositions 

61

%


94

%


10

%


62

%

All-in Total, Excluding Revisions Due to Price

163

%


94

%


10

%


159

%

All-in Total, Liquids

46

%


225

%


0

%


46

%









*   See following reconciliation schedule for calculation methodology

 

Reserve Replacement Cost Data


(Unaudited; in millions, except ratio data)









For the Twelve Months Ended December 31, 2020

United

States


Trinidad


Other

International


Total









Total Costs Incurred in Exploration and Development Activities (GAAP)

3,563.4



85.3



69.5



3,718.2


Less:   Asset Retirement Costs

(97.2)



(0.2)



(19.9)



(117.3)


Non-Cash Acquisition Costs of Unproved Properties

(196.8)







(196.8)


Total Acquisition Costs of Proved Properties

(97.0)





(38.2)



(135.2)


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

3,172.4



85.1



11.4



3,268.9










Total Costs Incurred in Exploration and Development Activities (GAAP)

3,563.4



85.3



69.5



3,718.2


Less:   Asset Retirement Costs

(97.2)



(0.2)



(19.9)



(117.3)


Non-Cash Acquisition Costs of Unproved Properties

(196.8)







(196.8)


Non-Cash Acquisition Costs of Proved Properties

(14.6)







(14.6)


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

3,254.8



85.1



49.6



3,389.5










Total Expenditures (GAAP)

3,958.3



85.4



69.6



4,113.3


Less:   Asset Retirement Costs

(97.2)



(0.2)



(19.9)



(117.3)


Non-Cash Acquisition Costs of Unproved Properties

(196.8)







(196.8)


Non-Cash Acquisition Costs of Proved Properties

(14.6)







(14.6)


Non-Cash Capital - Other Miscellaneous

(173.9)







(173.9)


Total Cash Expenditures (Non-GAAP)

3,475.8



85.2



49.7



3,610.7










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








Revisions Due to Price - (c)

(278.2)







(278.2)


Revisions Other Than Price

(89.9)



0.8



0.2



(88.9)


Purchases in Place

10.4







10.4


Extensions, Discoveries and Other Additions - (d)

554.6



9.8





564.4


Total Proved Reserve Additions - (e)

196.9



10.6



0.2



207.7


Sales in Place

(30.8)







(30.8)


Net Proved Reserve Additions From All Sources - (f)

166.1



10.6



0.2



176.9










Production - (g)

272.8



11.3



2.0



286.1










Reserve Replacement Costs ($ / Boe)








Total Drilling, Before Revisions - (a / d)

5.72



8.68





5.79


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

16.53



8.03



248.00



16.32


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

6.85



8.03



248.00



6.98










Reserve Replacement








Drilling Only - (d / g)

203

%


87

%


0

%


197

%

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

61

%


94

%


10

%


62

%

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

163

%


94

%


10

%


159

%









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








Revisions

(285.2)







(285.2)


Purchases in Place

6.0