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

02/24/2022

HOUSTON, Feb. 24, 2022 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported fourth quarter and full-year 2021 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors.

Key Financial Results

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



4Q 2021


3Q 2021


4Q 2020


FY 2021


FY 2020


GAAP

Total Revenue

6,044


4,765


2,965


18,642


11,032


Net Income (Loss)

1,985


1,095


337


4,664


(605)


Net Income (Loss) Per Share

3.39


1.88


0.58


7.99


(1.04)


Net Cash Provided by Operating Activities

3,166


2,196


1,121


8,791


5,008


Total Expenditures

1,137


962


1,107


4,255


4,113


Current and Long-Term Debt

5,109


5,117


5,816


5,109


5,816


Cash and Cash Equivalents

5,209


4,293


3,329


5,209


3,329


Debt-to-Total Capitalization

18.7%


19.0%


22.3%


18.7%


22.3%



Non-GAAP

Adjusted Net Income

1,806


1,264


411


5,028


850


Adjusted Net Income Per Share

3.09


2.16


0.71


8.61


1.46


Discretionary Cash Flow

3,106


2,296


1,494


9,442


5,093


Cash Capital Expenditures before Acquisitions

1,057


935


828


3,909


3,490


Free Cash Flow

2,049


1,361


666


5,533


1,603


Net Debt

(100)


824


2,487


(100)


2,487


Net Debt-to-Total Capitalization

(0.5)%


3.6%


10.9%


(0.5)%


10.9%


Fourth Quarter Highlights

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

Full Year 2021 Highlights

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

2022 Capital Plan

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

 

Fourth Quarter and Full-Year 2021 Highlights


Volumes and Capital Expenditures

Wellhead Volumes

4Q 2021

4Q 2021
Guidance
Midpoint

3Q 2021

4Q 2020

FY 2021

FY 2020

Crude Oil and Condensate (MBod)

450.6

447.0

449.5

444.8

445.0

409.2

Natural Gas Liquids (MBbld)

156.9

153.0

157.9

141.4

144.5

136.0

Natural Gas (MMcfd)

1,534

1,535

1,422

1,292

1,436

1,252

Total Crude Oil Equivalent (MBoed)

863.1

855.8

844.4

801.5

828.9

753.8


Cash Capital Expenditures before Acquisitions ($MM)

1,057

1,050

935

828

3,909

3,490

From Ezra Yacob, Chief Executive Officer

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

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

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


Fourth Quarter 2021 Financial Performance


Adjusted Earnings per Share 4Q 2021 vs 3Q 2021

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

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

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

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

Change in Cash 4Q 2021 vs 3Q 2021

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

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

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


  

Full-Year 2021 Financial Performance


Adjusted Earnings per Share 2021 vs 2020

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

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

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

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

Change in Cash 2021 vs 2020

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

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


  

Fourth Quarter 2021 Operating Performance


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

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

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

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


  

2021 Reserves and Premium Location Additions; Special Dividend


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

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

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

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


2021 ESG Performance and 2022 Capital Program


Further Improvements to Strong ESG Track Record

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

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

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

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


Fourth Quarter 2021 Results vs Guidance


(Unaudited)

Crude Oil and Condensate Volumes (MBod)

4Q 2021

4Q 2021
Guidance
Midpoint

Variance

3Q 2021

2Q 2021

1Q 2021

4Q 2020

United States

449.7

446.0

3.7

448.3

446.9

428.7

442.4

Trinidad

0.9

1.0

(0.1)

1.2

1.7

2.2

2.3

Other International

0.0

0.0

0.0

0.0

0.0

0.1

0.1

Total

450.6

447.0

3.6

449.5

448.6

431.0

444.8

Natural Gas Liquids Volumes (MBbld)

Total

156.9

153.0

3.9

157.9

138.5

124.3

141.4

Natural Gas Volumes (MMcfd)

United States

1,328

1,335

(7)

1,210

1,199

1,100

1,075

Trinidad

206

200

6

212

233

217

192

Other International

0

0

0

0

13

25

25

Total

1,534

1,535

(1)

1,422

1,445

1,342

1,292


Total Crude Oil Equivalent Volumes (MBoed)

863.1

855.8

7.3

844.4

828.0

778.9

801.5

Total MMBoe

79.4

78.7

0.7

77.7

75.3

70.1

73.7


Benchmark Price

Oil (WTI) ($/Bbl)

77.17



70.55

66.06

57.80

42.67

Natural Gas (HH) ($/Mcf)

5.83



4.01

2.83

2.69

2.65


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

United States

1.14

0.70

0.44

0.33

0.10

0.27

(0.81)

Trinidad

(10.31)

(11.00)

0.69

(10.36)

(9.80)

(8.03)

(9.76)


Natural Gas Liquids - Realizations as % of WTI

52.4%

55.0%

(2.6%)

53.5%

44.1%

48.5%

41.1%


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

United States

0.57

1.10

(0.53)

0.49

0.16

2.83

(0.36)

Natural Gas Realizations ($/Mcf)

Trinidad

3.48

3.45

0.03

3.39

3.37

3.38

3.57


Total Expenditures (GAAP) ($MM)

1,137



962

1,089

1,067

1,107

Capital Expenditures (non-GAAP) ($MM)

1,057

1,050

7

935

972

945

828


Operating Unit Costs ($/Boe)

Lease and Well

4.09

3.75

0.34

3.48

3.58

3.85

3.54

Transportation Costs

2.87

2.95

(0.08)

2.82

2.84

2.88

2.64

Gathering and Processing

1.85

1.90

(0.05)

1.87

1.70

1.98

1.62

General and Administrative

1.75

1.55

0.20

1.83

1.59

1.57

1.54

Cash Operating Costs

10.56

10.15

0.41

10.00

9.71

10.28

9.34

Depreciation, Depletion and Amortization

11.46

11.70

(0.24)

11.93

12.13

12.84

11.81


Expenses ($MM)

Exploration and Dry Hole

85

43

42

48

49

44

40

Impairment (GAAP)

206



82

44

44

143

Impairment (excluding certain impairments (non-GAAP))

206

120

86

69

43

43

57

Capitalized Interest

9

8

1

8

8

8

7

Net Interest

38

45

(7)

48

45

47

53


Taxes Other Than Income (% of Wellhead Revenue)

6.8%

7.0%

(0.2%)

6.8%

6.9%

6.7%

5.1%

Income Taxes

Effective Rate

20.5%

23.5%

(3.0%)

23.4%

19.3%

23.2%

21.1%

Deferred Ratio

23%

13%

11%

(33%)

(45%)

(18%)

60%

 


  

First Quarter and Full-Year 2022 Guidance2 



(Unaudited)


See "Endnotes" below for related discussion and definitions.

 

1Q 2022
Guidance Range


FY 2022
Guidance Range

2021
Actual

2020

Actual

Crude Oil and Condensate Volumes (MBod)










United States

442.0

-

452.0


454.5

-

466.5

443.4

408.1

Trinidad

0.7

-

0.9


0.4

-

0.6

1.5

1.0

Other International

0.0

-

0.0


0.0

-

0.0

0.1

0.1

Total

442.7

-

452.9


454.9

-

467.1

445.0

409.2

Natural Gas Liquids Volumes (MBbld)










Total

182.0

-

192.0


170.0

-

210.0

144.5

136.0

Natural Gas Volumes (MMcfd)










United States

1,200

-

1,270


1,240

-

1,340

1,210

1,040

Trinidad

185

-

215


160

-

200

217

180

Other International

0

-

0


0

-

0

9

32

Total

1,385

-

1,485


1,400

-

1,540

1,436

1,252

Crude Oil Equivalent Volumes (MBoed)










United States

824.0

-

855.7


831.2

-

899.8

789.6

717.5

Trinidad

31.5

-

36.7


27.1

-

33.9

37.7

30.9

Other International

0.0

-

0.0


0.0

-

0.0

1.6

5.4

Total

855.5

-

892.4


858.3

-

933.7

828.9

753.8











Benchmark Price










Oil (WTI) ($/Bbl)








67.96

39.40

Natural Gas (HH) ($/Mcf)








3.85

2.08











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



United States

0.50

-

2.50


0.50

-

2.50

0.58

(0.75)

Trinidad

(12.00)

-

(10.00)


(11.00)

-

(9.00)

(11.70)

(9.20)

Natural Gas Liquids - Realizations as % of WTI










Total

37%

-

47%


34%

-

49%

50.5%

34.0%

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



United States

0.15

-

1.65


(0.30)

-

1.70

1.03

(0.47)

Natural Gas Realizations ($/Mcf)










Trinidad

3.10

-

3.60


2.90

-

3.90

3.40

2.57











Total Expenditures (GAAP) ($MM)








4,255

4,113

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

1,000

-

1,200


4,300

-

4,700

3,909

3,490











Operating Unit Costs ($/Boe)










Lease and Well

3.60

-

4.20


3.45

-

4.05

3.75

3.85

Transportation Costs

2.65

-

3.05


2.60

-

3.10

2.85

2.66

Gathering and Processing

1.75

-

1.95


1.65

-

1.95

1.85

1.66

General and Administrative

1.60

-

1.70


1.65

-

1.75

1.69

1.75

Cash Operating Costs

9.60

-

10.90


9.35

-

10.85

10.14

9.92

Depreciation, Depletion and Amortization

10.50

-

11.00


10.15

-

11.15

12.07

12.32











Expenses ($MM)










Exploration and Dry Hole

40

-

50


150

-

190

225

159

Impairment (GAAP)








376

2,100

Impairment (excluding certain impairments (non-GAAP))

60

-

100


300

-

340

361

232

Capitalized Interest

5

-

10


30

-

40

33

31

Net Interest

40

-

45


165

-

175

178

205











Taxes Other Than Income (% of Wellhead Revenue)

6.5%

-

8.5%


7.0%

-

8.0%

6.8%

6.6%

Income Taxes










Effective Rate

20%

-

25%


20%

-

25%

21.4%

18.2%

Current Tax (Benefit) / Expense ($MM)

440

-

540


1,700

-

2,100

1,393

(61)

 


    

Fourth Quarter and Full-Year 2021 Results Webcast
Friday, February 25, 2022, 9:00 a.m. Central time (10:00 a.m. Eastern time) Webcast will be available on EOG's website for one year. http://investors.eogresources.com/Investors

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

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

Media and Investor Contact
Kimberly Ehmer 713–571–4676

Endnotes

1)

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



2)

The forecast items for the first quarter and full year 2022 set forth above for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of the accompanying press release. EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. This forecast, which should be read in conjunction with the accompanying press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.



3)

EOG bases United States and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.



4)

EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.



5)

The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs, Non-Cash Exchanges and Transactions and certain exploration costs incurred as operating expenses.

Glossary


Acq

Acquisitions

ATROR

After-tax rate of return

Bbl

Barrel

Bn

Billion

Boe

Barrels of oil equivalent

Bopd

Barrels of oil per day

CAGR

Compound annual growth rate

Capex

Capital expenditures

CFO

Cash flow provided by operating activities before changes in working capital

CO2e

Carbon dioxide equivalent

DCF

Discretionary cash flow

DD&A

Depreciation, Depletion and Amortization

Disc

Discoveries

Divest

Divestitures

EPS

Earnings per share

Ext

Extensions

G&A

General and administrative expense

G&P

Gathering and processing expense

GHG

Greenhouse gas

HH

Henry Hub

LOE

Lease operating expense, or lease and well expense

MBbld

Thousand barrels of liquids per day

MBod

Thousand barrels of oil per day

MBoe

Thousand barrels of oil equivalent

MBoed

Thousand barrels of oil equivalent per day

Mcf

Thousand cubic feet of natural gas

MMBoe

Million barrels of oil equivalent

MMcfd

Million cubic feet of natural gas per day

NGLs

Natural gas liquids

OTP

Other than price

NYMEX

U.S. New York Mercantile Exchange

QoQ

Quarter over quarter

Trans

Transportation expense

USD

United States dollar

WTI

West Texas Intermediate

YoY

Year over year

$MM

Million United States dollars

$/Bbl

U.S. Dollars per barrel

$/Boe

U.S. Dollars per barrel of oil equivalent

$/Mcf

U.S. Dollars per thousand cubic feet

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

  • the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities;
  • the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
  • the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion, operating and capital costs related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
  • the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas;
  • security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;
  • the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, and export facilities;
  • the availability, cost, terms and timing of issuance or execution of mineral licenses and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses and leases;
  • the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
  • the impact of climate change-related policies and initiatives at the corporate and/or investor community levels and other potential developments related to climate change, such as (but not limited to) changes in consumer and industrial/commercial behavior, preferences and attitudes with respect to the generation and consumption of energy; increased availability of, and increased consumer and industrial/commercial demand for, competing energy sources (including alternative energy sources); technological advances with respect to the generation, transmission, storage and consumption of energy; alternative fuel requirements; energy conservation measures; decreased demand for, and availability of, services and facilities related to the exploration for, and production of, crude oil, NGLs and natural gas; and negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, crude oil, NGLs and natural gas;
  • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and drilling, completing and operating costs with respect to such properties;
  • the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with
  • applicable laws and regulations;
  • competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties;
  • the availability and cost of, and competition in the oil and gas exploration and production industry for, employees and other personnel, facilities, equipment, materials (such as water and tubulars) and services;
  • the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
  • weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression, storage, transportation, and export facilities;
  • the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
  • EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
  • the extent to which EOG is successful in its completion of planned asset dispositions;
  • the extent and effect of any hedging activities engaged in by EOG;
  • the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
  • the duration and economic and financial impact of epidemics, pandemics or other public health issues, including the COVID-19 pandemic;
  • geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
  • the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
  • acts of war and terrorism and responses to these acts; and
  • the other factors described under ITEM 1A, Risk Factors of this Annual Report on Form 10-K and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

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

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG's Annual Report on  Form 10–K for the fiscal year ended December 31, 2021, available from EOG at P.O. Box 4362, Houston, Texas 77210–4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1–800–SEC–0330 or from the SEC's website at www.sec.gov. In addition, reconciliation and calculation schedules for non–GAAP financial measures can be found on the EOG website at www.eogresources.com.

Income Statements


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






4Q 2021


3Q 2021


4Q 2020


FY 2021


FY 2020

Operating Revenues and Other









Crude Oil and Condensate

3,246


2,929


1,711


11,125


5,786

Natural Gas Liquids

583


548


229


1,812


668

Natural Gas

847


568


302


2,444


837

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

136


(494)


70


(1,152)


1,145

Gathering, Processing and Marketing

1,232


1,186


643


4,288


2,583

Gains (Losses) on Asset Dispositions, Net

(29)


1


(6)


17


(47)

Other, Net

29


27


16


108


60

Total

6,044


4,765


2,965


18,642


11,032











Operating Expenses










Lease and Well

325


270


261


1,135


1,063

Transportation Costs

228


219


195


863


735

Gathering and Processing Costs

147


145


119


559


459

Exploration Costs

42


44


41


154


146

Dry Hole Costs

43


4



71


13

Impairments

206


82


143


376


2,100

Marketing Costs

1,160


1,184


621


4,173


2,698

Depreciation, Depletion and Amortization

910


927


870


3,651


3,400

General and Administrative

139


142


113


511


484

Taxes Other Than Income

316


277


114


1,047


478

Total

3,516


3,294


2,477


12,540


11,576











Operating Income (Loss)

2,528


1,471


488


6,102


(544)

Other Income (Expense), Net

9


6


(7)


9


10

Income (Loss) Before Interest Expense
     and Income Taxes

2,537


1,477


481


6,111


(534)

Interest Expense, Net

38


48


53


178


205

Income (Loss) Before Income Taxes

2,499


1,429


428


5,933


(739)

Income Tax Provision (Benefit)

514


334


91


1,269


(134)

Net Income (Loss)

1,985


1,095


337


4,664


(605)











Dividends Declared per Common Share

2.7500


0.4125


0.3750


4.9875


1.5000

Net Income (Loss) Per Share










Basic

3.42


1.88


0.58


8.03


(1.04)

Diluted

3.39


1.88


0.58


7.99


(1.04)

Average Number of Common Shares










Basic

581


581


580


581


579

Diluted

585


584


581


584


579

 

Wellhead Volumes and Prices


(Unaudited)


4Q 2021


4Q 2020


% Change


3Q 2021


FY 2021


FY 2020


% Change















Crude Oil and Condensate Volumes
     (MBbld) (A)












United States

449.7


442.4


2 %


448.3


443.4


408.1


9 %

Trinidad

0.9


2.3


-61 %


1.2


1.5


1.0


50 %

Other International (B)


0.1


-100 %



0.1


0.1


0 %

Total

450.6


444.8


1 %


449.5


445.0


409.2


9 %















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














United States

78.31


41.86


87 %


70.88


68.54


38.65


77 %

Trinidad

66.86


32.91


103 %


60.19


56.26


30.20


86 %

Other International (B)


35.90


-100 %



42.36


43.08


-2 %

Composite

78.29


41.81


87 %


70.85


68.50


38.63


77 %















Natural Gas Liquids Volumes (MBbld) (A)














United States

156.9


141.4


11 %


157.9


144.5


136.0


6 %

Total

156.9


141.4


11 %


157.9


144.5


136.0


6 %















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














United States

40.40


17.54


130 %


37.72


34.35


13.41


156 %

Composite

40.40


17.54


130 %


37.72


34.35


13.41


156 %















Natural Gas Volumes (MMcfd) (A)














United States

1,328


1,075


24 %


1,210


1,210


1,040


16 %

Trinidad

206


192


7 %


212


217


180


21 %

Other International (B)


25


-100 %



9


32


-72 %

Total

1,534


1,292


19 %


1,422


1,436


1,252


15 %















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














United States

6.40


2.29


180 %


4.50


4.88


1.61


203 %

Trinidad

3.48


3.57


-3 %


3.39


3.40


2.57


32 %

Other International (B)


5.47


-100 %



5.67


4.66


22 %

Composite

6.00


2.54


136 %


4.34


4.66


1.83


155 %















Crude Oil Equivalent Volumes (MBoed) (D)














United States

827.8


763.0


8 %


807.9


789.6


717.5


10 %

Trinidad

35.3


34.2


3 %


36.5


37.7


30.9


22 %

Other International (B)


4.3


-100 %



1.6


5.4


-70 %

Total

863.1


801.5


8 %


844.4


828.9


753.8


10 %















Total MMBoe (D)

79.4


73.7


8 %


77.7


302.5


275.9


10 %



(A)

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



(B)

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



(C)

Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Consolidated Financial Statements in EOG's Annual Report on Form 10-K for the year ended December 31, 2021).



(D)

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

Balance Sheets


In millions of USD, except share data (Unaudited)


December 31,


December 31,


2021


2020

Current Assets




Cash and Cash Equivalents

5,209


3,329

Accounts Receivable, Net

2,335


1,522

Inventories

584


629

Assets from Price Risk Management Activities


65

Income Taxes Receivable


23

Other

456


294

Total

8,584


5,862


Property, Plant and Equipment




Oil and Gas Properties (Successful Efforts Method)

67,644


64,793

Other Property, Plant and Equipment

4,753


4,479

Total Property, Plant and Equipment

72,397


69,272

Less:  Accumulated Depreciation, Depletion and Amortization

(43,971)


(40,673)

Total Property, Plant and Equipment, Net

28,426


28,599

Deferred Income Taxes

11


2

Other Assets

1,215


1,342

Total Assets

38,236


35,805


Current Liabilities




Accounts Payable

2,242


1,681

Accrued Taxes Payable

518


206

Dividends Payable

436


217

Liabilities from Price Risk Management Activities

269


Current Portion of Long-Term Debt

37


781

Current Portion of Operating Lease Liabilities

240


295

Other

300


280

Total

4,042


3,460





Long-Term Debt

5,072


5,035

Other Liabilities

2,193


2,149

Deferred Income Taxes

4,749


4,859

Commitments and Contingencies








Stockholders' Equity




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

206


206

Additional Paid in Capital

6,087


5,945

Accumulated Other Comprehensive Loss

(12)


(12)

Retained Earnings

15,919


14,170

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

(20)


(7)

Total Stockholders' Equity

22,180


20,302

Total Liabilities and Stockholders' Equity

38,236


35,805

Cash Flow Statements


In millions of USD (Unaudited)











4Q 2021


4Q 2020


3Q 2021


FY 2021


FY 2020

Cash Flows from Operating Activities










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










Net Income (Loss)

1,985


337


1,095


4,664


(605)

Items Not Requiring (Providing) Cash










Depreciation, Depletion and Amortization

910


870


927


3,651


3,400

Impairments

206


143


82


376


2,100

Stock-Based Compensation Expenses

35


33


51


152


146

Deferred Income Taxes

122


55


(111)


(122)


(186)

(Gains) Losses on Asset Dispositions, Net

29


6


(1)


(17)


47

Other, Net

(2)


10


2


13


12

Dry Hole Costs

43



4


71


13

Mark-to-Market Commodity Derivative Contracts










Total (Gains) Losses

(136)


(70)


494


1,152


(1,145)

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

(122)


72


(293)


(638)


1,071

Other, Net

(1)


2


7


7


1

Changes in Components of Working Capital and Other
     Assets and Liabilities










Accounts Receivable

(182)


(464)


(145)


(821)


467

Inventories

(108)


31


(6)


(13)


123

Accounts Payable

341


427


(68)


456


(795)

Accrued Taxes Payable

26


(61)


206


312


(49)

Other Assets

(81)


(90)


167


(136)


325

Other Liabilities

201


21


(260)


(116)


8

Changes in Components of Working Capital Associated
     with Investing Activities

(100)


(201)


45


(200)


75

Net Cash Provided by Operating Activities

3,166


1,121


2,196


8,791


5,008

Investing Cash Flows










Additions to Oil and Gas Properties

(949)


(785)


(846)


(3,638)


(3,244)

Additions to Other Property, Plant and Equipment

(65)


(56)


(50)


(212)


(221)

Proceeds from Sales of Assets

77


3


8


231


192

Changes in Components of Working Capital Associated
     with Investing Activities

100


201


(45)


200


(75)

Net Cash Used in Investing Activities

(837)


(637)


(933)


(3,419)


(3,348)

Financing Cash Flows










Long-Term Debt Borrowings





1,484

Long-Term Debt Repayments




(750)


(1,000)

Dividends Paid

(1,406)


(220)


(820)


(2,684)


(821)

Treasury Stock Purchased

(8)


(1)


(21)


(41)


(16)

Proceeds from Stock Options Exercised and Employee
     Stock Purchase Plan

10


8



19


16

Debt Issuance Costs





(3)

Repayment of Finance Lease Liabilities

(10)


(6)


(9)


(37)


(19)

Net Cash Used in Financing Activities

(1,414)


(219)


(850)


(3,493)


(359)

Effect of Exchange Rate Changes on Cash

1


(2)



1


Increase in Cash and Cash Equivalents

916


263


413


1,880


1,301

Cash and Cash Equivalents at Beginning of Period

4,293


3,066


3,880


3,329


2,028

Cash and Cash Equivalents at End of Period

5,209


3,329


4,293


5,209


3,329

 

Non-GAAP Financial Measures



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


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


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


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


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


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

 

Adjusted Net Income (Loss)


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
















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










4Q 2021


Before
Tax


Income
Tax
Impact


After
Tax


Diluted
Earnings
per Share









Reported Net Income (GAAP)

2,499


(514)


1,985


3.39

Adjustments:








Gains on Mark-to-Market Commodity Derivative Contracts

(136)


32


(104)


(0.17)

Net Cash Payments for Settlements of Commodity Derivative Contracts

(122)


25


(97)


(0.17)

Add: Losses on Asset Dispositions, Net

29


(7)


22


0.04

Add: Certain Impairments




Adjustments to Net Income

(229)


50


(179)


(0.30)









Adjusted Net Income (Non-GAAP)

2,270


(464)


1,806


3.09









Average Number of Common Shares (GAAP)








Basic







581

Diluted







585









Average Number of Common Shares (Non-GAAP)








Basic







581

Diluted







585









Adjusted Net Income (Loss)

(Continued)

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


4Q 2020


Before
Tax


Income
Tax
Impact


After
Tax


Diluted
Earnings
per Share









Reported Net Income (GAAP)

428


(91)


337


0.58

Adjustments:








Gains on Mark-to-Market Commodity Derivative Contracts

(70)


15


(55)


(0.10)

Net Cash Received from Settlements of Commodity Derivative Contracts

72


(16)


56


0.10

Add: Losses on Asset Dispositions, Net

6


(1)


5


0.01

Add: Certain Impairments

86


(18)


68


0.12

Adjustments to Net Income

94


(20)


74


0.13









Adjusted Net Income (Non-GAAP)

522


(111)


411


0.71









Average Number of Common Shares (GAAP)








Basic







580

Diluted







581









Average Number of Common Shares (Non-GAAP)








Basic







580

Diluted







581









3Q 2021


Before
Tax


Income
Tax
Impact


After
Tax


Diluted
Earnings
per Share









Reported Net Income (GAAP)

1,429


(334)


1,095


1.88

Adjustments:








Losses on Mark-to-Market Commodity Derivative Contracts

494


(108)


386


0.65

Net Cash Payments for Settlements of Commodity Derivative Contracts

(293)


64


(229)


(0.39)

Less: Gains on Asset Dispositions, Net

(1)



(1)


Add: Certain Impairments

13



13


0.02

Adjustments to Net Income

213


(44)


169


0.28









Adjusted Net Income (Non-GAAP)

1,642


(378)


1,264


2.16









Average Number of Common Shares (GAAP)








Basic







581

Diluted







584









Average Number of Common Shares (Non-GAAP)








Basic







581

Diluted







584










Adjusted Net Income (Loss)

(Continued)

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









FY 2021


Before
Tax


Income
Tax
Impact


After
Tax


Diluted
Earnings
per Share









Reported Net Income (GAAP)

5,933


(1,269)


4,664


7.99

Adjustments:








Losses on Mark-to-Market Commodity Derivative Contracts

1,152


(250)


902


1.54

Net Cash Payments for Settlements of Commodity Derivative Contracts

(638)


138


(500)


(0.86)

Less: Gains on Asset Dispositions, Net

(17)


9


(8)


(0.01)

Add: Certain Impairments

15



15


0.03

Less: Tax Benefits Related to Exiting Canada Operations


(45)


(45)


(0.08)

Adjustments to Net Income

512


(148)


364


0.62









Adjusted Net Income (Non-GAAP)

6,445


(1,417)


5,028


8.61









Average Number of Common Shares (GAAP)








Basic







581

Diluted







584









Average Number of Common Shares (Non-GAAP)








Basic







581

Diluted







584



FY 2020


Before
Tax


Income
Tax
Impact


After
Tax


Diluted
Earnings
per Share









Reported Net Loss (GAAP)

(739)


134


(605)


(1.04)

Adjustments:








Gains on Mark-to-Market Commodity Derivative Contracts

(1,145)


251


(894)


(1.55)

Net Cash Received from Settlements of Commodity Derivative Contracts

1,071


(235)


836


1.44

Add: Losses on Asset Dispositions, Net

47


(10)


37


0.06

Add: Certain Impairments

1,868


(392)


1,476


2.55

Adjustments to Net Loss

1,841


(386)


1,455


2.50









Adjusted Net Income (Non-GAAP)

1,102


(252)


850


1.46









Average Number of Common Shares (GAAP)








Basic







579

Diluted







579









Average Number of Common Shares (Non-GAAP)








Basic







579

Diluted







581

 

Adjusted Net Income Per Share

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





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



2.16





Realized Price




4Q 2021 Composite Average Wellhead Revenue per Boe

58.88



Less:  3Q 2021 Composite Average Welhead Revenue per Boe

(52.07)



Subtotal

6.81



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

79.4



Total Change in Revenue

541



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

(124)



Change in Net Income

416



Change in Diluted Earnings per Share



0.71





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




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

(122)



Less:  Income Tax Benefit (Cost)

25



After Tax - (a)

(97)



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

(293)



Less:  Income Tax Benefit (Cost)

64



After Tax - (b)

(229)



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

132



Change in Diluted Earnings per Share



0.23





Wellhead Volumes




4Q 2021 Crude Oil Equivalent Volumes (MMBoe)

79.4



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

(77.7)



Subtotal

1.7



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

28.74



Change in Revenue

49



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

(11)



Change in Net Income

38



Change in Diluted Earnings per Share



0.07






Adjusted Net Income Per Share

(Continued)

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





Operating Cost per Boe




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

27.62



Less:  3Q 2021 Taxes Other Than Income

(3.57)



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

(30.14)



Add: 4Q 2021 Taxes Other Than Income

3.98



Subtotal

(2.11)



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

79.4



Change in Before-Tax Net Income

(168)



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

39



Change in Net Income

(129)



Change in Diluted Earnings per Share



(0.22)





Other (1)



0.14





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



3.09





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

585







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

 

Adjusted Net Income Per Share

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





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



1.46





Realized Price




FY 2021 Composite Average Wellhead Revenue per Boe

50.84



Less:  FY 2020 Composite Average Wellhead Revenue per Boe

(26.42)



Subtotal

24.42



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

302.5



Total Change in Revenue

7,388



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

(1,699)



Change in Net Income

5,689



Change in Diluted Earnings per Share



9.74





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




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

(638)



Less:  Income Tax Benefit (Cost)

138



After Tax - (a)

(500)



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

1,071



Less:  Income Tax Benefit (Cost)

(235)



After Tax - (b)

836



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

(1,336)



Change in Diluted Earnings per Share



(2.29)





Wellhead Volumes




FY 2021 Crude Oil Equivalent Volumes (MMBoe)

302.5



Less:  FY 2020 Crude Oil Equivalent Volumes (MMBoe)

(275.9)



Subtotal

26.7



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

22.64



Change in Revenue

604



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

(139)



Change in Net Income

465



Change in Diluted Earnings per Share



0.80






Adjusted Net Income per Share

(Continued)

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





Operating Cost per Boe




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

26.13



Less: 3Q 2021 Taxes Other Than Income

(1.73)



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

(28.20)



Add: 4Q 2021 Taxes Other Than Income

3.46



Subtotal

(0.34)



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

302.5



Change in Before-Tax Net Income

(103)



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

24



Change in Net Income

(79)



Change in Diluted Earnings per Share



(0.14)

Other (1)



(0.96)





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



8.61





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

584







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

 

Discretionary Cash Flow and Free Cash Flow


In millions of USD (Unaudited)




















The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow (Non-GAAP).  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Exploration Costs (excluding Stock-Based Compensation Expenses), Changes in Components of Working Capital and Other Assets and Liabilities, Changes in Components of Working Capital Associated with Investing and Financing Activities and certain other adjustments to exclude non-recurring and certain other items as further described below.  EOG defines Free Cash Flow (Non-GAAP) for a given period as Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures (before acquisitions) incurred (Non-GAAP) during such period, as is illustrated below.  EOG management uses this information for comparative purposes within the industry.












4Q 2021


3Q 2021


4Q 2020


FY 2021


FY 2020











Net Cash Provided by Operating Activities (GAAP)

3,166


2,196


1,121


8,791


5,008











Adjustments:










Exploration Costs (excluding Stock-Based
     Compensation Expenses)

37


39


36


133


126

Changes in Components of Working Capital and
     Other Assets and Liabilities










Accounts Receivable

182


145


464


821


(467)

Inventories

108


6


(31)


13


(123)

Accounts Payable

(341)


68


(427)


(456)


795

Accrued Taxes Payable

(26)


(206)


61


(312)


49

Other Assets

81


(167)


90


136


(325)

Other Liabilities

(201)


260


(21)


116


(8)

Changes in Components of Working Capital
     Associated with Investing Activities

100


(45)


201


200


(75)

Other Non-Current Income Taxes - Net Receivable





113

Discretionary Cash Flow (Non-GAAP)

3,106


2,296


1,494


9,442


5,093











Discretionary Cash Flow (Non-GAAP) - Percentage
     Increase

108 %






85 %













Discretionary Cash Flow (Non-GAAP)

3,106


2,296


1,494


9,442


5,093

Less:










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

(1,057)


(935)


(828)


(3,909)


(3,490)

Free Cash Flow (Non-GAAP)

2,049


1,361


666


5,533


1,603





















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












4Q 2021


3Q 2021


4Q 2020


FY 2021


FY 2020











Total Expenditures (GAAP)

1,137


962


1,107


4,255


4,113

Less:










Asset Retirement Costs

(71)


(8)


(48)


(127)


(117)

Non-Cash Acquisition Costs of Unproved Properties

(8)


(15)


(69)


(45)


(197)

Non-Cash Finance Leases



(101)


(74)


(174)

Acquisition Costs of Proved Properties

(1)


(4)


(61)


(100)


(135)

Total Cash Capital Expenditures Before Acquisitions
     (Non-GAAP)

1,057


935


828


3,909


3,490

 

Discretionary Cash Flow and Free Cash Flow

(Continued)

In millions of USD (Unaudited)













FY 2019


FY 2018


FY 2017







Net Cash Provided by Operating Activities (GAAP)

8,163


7,769


4,265







Adjustments:






Exploration Costs (excluding Stock-Based Compensation Expenses)

113


125


122

Changes in Components of Working Capital and Other Assets and Liabilities






Accounts Receivable

92


368


392

Inventories

(90)


395


175

Accounts Payable

(169)


(439)


(324)

Accrued Taxes Payable

(40)


92


64

Other Assets

(358)


125


659

Other Liabilities

57


(11)


90

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

115


(301)


(90)

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

239


149


(513)

Discretionary Cash Flow (Non-GAAP)

8,122


8,272


4,840







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

-2 %


71 %


76 %







Discretionary Cash Flow (Non-GAAP)

8,122


8,272


4,840

Less:






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

(6,234)


(6,172)


(4,228)

Free Cash Flow (Non-GAAP)

1,888


2,100


612







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







Total Expenditures (GAAP)

6,900


6,706


4,613

Less:






Asset Retirement Costs

(186)


(70)


(56)

Non-Cash Expenditures of Other Property, Plant and Equipment

(2)


(1)


Non-Cash Acquisition Costs of Unproved Properties

(98)


(291)


(256)

Non-Cash Finance Leases


(48)


Acquisition Costs of Proved Properties

(380)


(124)


(73)

Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)

6,234


6,172


4,228







 

Discretionary Cash Flow and Free Cash Flow

(Continued)

In millions of USD (Unaudited)





















FY 2016


FY 2015


FY 2014


FY 2013


FY 2012











Net Cash Provided by Operating Activities (GAAP)

2,359


3,595


8,649


7,329


5,237











Adjustments:










Exploration Costs (excluding Stock-Based Compensation
     Expenses)

104


124


158


134


158

Changes in Components of Working Capital and Other
     Assets and Liabilities










Accounts Receivable

233


(641)


(85)


24


179

Inventories

(171)


(58)


162


(53)


157

Accounts Payable

74


1,409


(544)


(179)


17

Accrued Taxes Payable

(93)


(12)


(16)


(75)


(78)

Other Assets

41


(118)


14


110


119

Other Liabilities

16


66


(75)


20


(36)

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

156


(500)


103


51


(74)

Excess Tax Benefits from Stock-Based Compensation

30


26


99


56


67

Discretionary Cash Flow (Non-GAAP)

2,749


3,891


8,465


7,417


5,746











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

-29 %


-54 %


14 %


29 %













Discretionary Cash Flow (Non-GAAP)

2,749


3,891


8,465


7,417


5,746

Less:










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

(2,706)


(4,682)


(8,292)


(7,102)


(7,540)

Free Cash Flow (Non-GAAP)

43


(791)


173


315


(1,794)











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











Total Expenditures (GAAP)

6,554


5,216


8,632


7,361


7,754

Less:










Asset Retirement Costs

20


(53)


(196)


(134)


(127)

Non-Cash Expenditures of Other Property, Plant and
     Equipment

(17)





(66)

Non-Cash Acquisition Costs of Unproved Properties

(3,102)



(5)


(5)


(20)

Acquisition Costs of Proved Properties

(749)


(481)


(139)


(120)


(1)

Total Cash Capital Expenditures Before Acquisitions (Non-
     GAAP)

2,706


4,682


8,292


7,102


7,540

 

Total Expenditures


In millions of USD (Unaudited)





























4Q 2021


4Q 2020


FY 2021


FY 2020


FY 2019


FY 2018


FY 2017















Exploration and Development Drilling

767


592


2,864


2,664


4,951


4,935


3,132

Facilities

118


99


405


347


629


625


575

Leasehold Acquisitions

21


102


215


265


276


488


427

Property Acquisitions

1


61


100


135


380


124


73

Capitalized Interest

9


7


33


31


38


24


27

Subtotal

916


861


3,617


3,442


6,274


6,196


4,234

Exploration Costs

42


41


154


146


140


149


145

Dry Hole Costs

43



71


13


28


5


5

Exploration and Development
     Expenditures

1,001


902


3,842


3,601


6,442


6,350


4,384

Asset Retirement Costs

71


48


127


117


186


70


56

Total Exploration and Development
     Expenditures

1,072


950


3,969


3,718


6,628


6,420


4,440

Other Property, Plant and Equipment

65


157


286


395


272


286


173

Total Expenditures

1,137


1,107


4,255


4,113


6,900


6,706


4,613

 

EBITDAX and Adjusted EBITDAX


In millions of USD (Unaudited)
















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










4Q 2021


4Q 2020


FY 2021


FY 2020









Net Income (Loss) (GAAP)

1,985


337


4,664


(605)









Adjustments:








Interest Expense, Net

38


53


178


205

Income Tax Provision (Benefit)

514


91


1,269


(134)

Depreciation, Depletion and Amortization

910


870


3,651


3,400

Exploration Costs

42


41


154


146

Dry Hole Costs

43



71


13

Impairments

206


143


376


2,100

EBITDAX (Non-GAAP)

3,738


1,535


10,363


5,125

(Gains) Losses on MTM Commodity Derivative Contracts

(136)


(70)


1,152


(1,145)

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

(122)


72


(638)


1,071

(Gains) Losses on Asset Dispositions, Net

29


6


(17)


47









Adjusted EBITDAX (Non-GAAP)

3,509


1,543


10,860


5,098









Definitions








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

 

Net Debt-to-Total Capitalization Ratio


In millions of USD, except ratio data (Unaudited)
















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










December 31,
2021


September 30,

2021


June 30,

2021


March 31,

2021









Total Stockholders' Equity - (a)

22,180


21,765


20,881


20,762









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

5,109


5,117


5,125


5,133

Less: Cash

(5,209)


(4,293)


(3,880)


(3,388)

Net Debt (Non-GAAP) - (c)

(100)


824


1,245


1,745









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

27,289


26,882


26,006


25,895









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

22,080


22,589


22,126


22,507









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

18.7%


19.0%


19.7%


19.8%









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

-0.5%


3.6%


5.6%


7.8%

 

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)

















December 31,

2020


September 30,

2020


June 30,

2020


March 31,

2020









Total Stockholders' Equity - (a)

20,302


20,148


20,388


21,471









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

5,816


5,721


5,724


5,222

Less: Cash

(3,329)


(3,066)


(2,417)


(2,907)

Net Debt (Non-GAAP) - (c)

2,487


2,655


3,307


2,315









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

26,118


25,869


26,112


26,693









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

22,789


22,803


23,695


23,786









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

22.3%


22.1%


21.9%


19.6%









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

10.9%


11.6%


14.0%


9.7%










Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)









December 31,
2019


September 30,
2019


June 30,

2019


March 31,

2019









Total Stockholders' Equity - (a)

21,641


21,124


20,630


19,904









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

5,175


5,177


5,179


6,081

Less: Cash

(2,028)


(1,583)


(1,160)


(1,136)

Net Debt (Non-GAAP) - (c)

3,147


3,594


4,019


4,945









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

26,816


26,301


25,809


25,985









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

24,788


24,718


24,649


24,849









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

19.3%


19.7%


20.1%


23.4%









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

12.7%


14.5%


16.3%


19.9%










Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)








December 31,

2018


September 30,

2018


June 30,

2018


March 31,

2018








Total Stockholders' Equity - (a)

19,364


18,538


17,452


16,841









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

6,083


6,435


6,435


6,435

Less: Cash

(1,556)


(1,274)


(1,008)


(816)

Net Debt (Non-GAAP) - (c)

4,527


5,161


5,427


5,619









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

25,447


24,973


23,887


23,276









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

23,891


23,699


22,879


22,460









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

23.9%


25.8%


26.9%


27.6%









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

18.9%


21.8%


23.7%


25.0%










Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)








December 31,

2017


September 30,

2017


June 30,

2017


March 31,

2017








Total Stockholders' Equity - (a)

16,283


13,922


13,902


13,928









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

6,387


6,387


6,987


6,987

Less: Cash

(834)


(846)


(1,649)


(1,547)

Net Debt (Non-GAAP) - (c)

5,553


5,541


5,338


5,440









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

22,670


20,309


20,889


20,915









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

21,836


19,463


19,240


19,368









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

28.2%


31.4%


33.4%


33.4%









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

25.4%


28.5%


27.7%


28.1%

 

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)










December 31,
2016


September 30,
2016


June 30,

2016


March 31,

2016


December 31,

2015










Total Stockholders' Equity - (a)

13,982


11,798


12,057


12,405


12,956











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

6,986


6,986


6,986


6,986


6,656

Less: Cash

(1,600)


(1,049)


(780)


(668)


(719)

Net Debt (Non-GAAP) - (c)

5,386


5,937


6,206


6,318


5,937











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

20,968


18,784


19,043


19,391


19,612











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

19,368


17,735


18,263


18,723


18,893











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

33.3%


37.2%


36.7%


36.0%


33.9%











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

27.8%


33.5%


34.0%


33.7%


31.4%

 

Proved Reserves and Reserve Replacement Data


(Unaudited)









2021 Net Proved Reserves Reconciliation Summary

United

States


Trinidad


Other

International


Total

Crude Oil and Condensate (MMBbl)








Beginning Reserves

1,513


1



1,514

Revisions

(116)




(116)

Purchases in Place

2




2

Extensions, Discoveries and Other Additions

311


1



312

Sales in Place

(2)




(2)

Production

(162)




(162)

Ending Reserves

1,546


2



1,548









Natural Gas Liquids (MMBbl)








Beginning Reserves

813




813

Revisions

(128)




(128)

Purchases in Place

3




3

Extensions, Discoveries and Other Additions

194




194

Sales in Place




Production

(53)




(53)

Ending Reserves

829




829









Natural Gas (Bcf)








Beginning Reserves

5,043


269


48


5,360

Revisions

754


26


3


783

Purchases in Place

23




23

Extensions, Discoveries and Other Additions

2,574


100



2,674

Sales in Place

(4)



(48)


(52)

Production

(483)


(80)


(3)


(566)

Ending Reserves

7,907


315



8,222









Oil Equivalents (MMBoe)








Beginning Reserves

3,166


46


8


3,220

Revisions

(118)


4



(114)

Purchases in Place

9




9

Extensions, Discoveries and Other Additions

934


18



952

Sales in Place

(3)



(8)


(11)

Production

(295)


(14)



(309)

Ending Reserves

3,693


54



3,747









Net Proved Developed Reserves (MMBoe)








At December 31, 2020

1,614


30


5


1,649

At December 31, 2021

1,926


22



1,948









2021 Exploration and Development Expenditures ($ Millions)









Acquisition Cost of Unproved Properties

207



8


215

Exploration Costs

296


7


51


354

Development Costs

3,120


53



3,173

Total Drilling

3,623


60


59


3,742

Acquisition Cost of Proved Properties

100




100

Asset Retirement Costs

86


24


17


127

Total Exploration and Development Expenditures

3,809


84


76


3,969

Gathering, Processing and Other

283



3


286

Total Expenditures

4,092


84


79


4,255

Proceeds from Sales in Place

(102)



(129)


(231)

Net Expenditures

3,990


84


(50)


4,024









Reserve Replacement Costs ($ / Boe) *








All-in Total, Net of Revisions

4.45


2.73



4.48

All-in Total, Excluding Revisions Due to Price

5.82


2.73



5.81









Reserve Replacement *








Drilling Only

317 %


129 %


0 %


308 %

All-in Total, Net of Revisions and Dispositions 

279 %


157 %


0 %


271 %

All-in Total, Excluding Revisions Due to Price

213 %


157 %


0 %


208 %

All-in Total, Liquids

123 %


0 %


0 %


123 %









*   See following reconciliation schedule for calculation methodology

Reserve Replacement Cost Data


(Unaudited; in millions, except ratio data)


For the Twelve Months Ended December 31, 2021

United

States


Trinidad


Other

International


Total









Total Costs Incurred in Exploration and Development Activities (GAAP)

3,809


84


76


3,969

Less:   Asset Retirement Costs

(86)


(24)


(17)


(127)

Non-Cash Acquisition Costs of Unproved Properties

(45)




(45)

Total Acquisition Costs of Proved Properties

(100)




(100)

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

3,578


60


59


3,697









Total Costs Incurred in Exploration and Development Activities (GAAP)

3,809


84


76


3,969

Less:   Asset Retirement Costs

(86)


(24)


(17)


(127)

Non-Cash Acquisition Costs of Unproved Properties

(45)




(45)

Non-Cash Acquisition Costs of Proved Properties

(5)




(5)

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

3,673


60


59


3,792









Total Expenditures (GAAP)

4,092


84


79


4,255

Less:   Asset Retirement Costs

(86)


(24)


(17)


(127)

Non-Cash Acquisition Costs of Unproved Properties

(45)




(45)

Non-Cash Acquisition Costs of Proved Properties

(5)




(5)

Non-Cash Capital - Other Miscellaneous

(74)




(74)

Total Cash Expenditures (Non-GAAP)

3,882


60


62


4,004









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








Revisions Due to Price - (c)

194




194

Revisions Other Than Price

(312)


4



(308)

Purchases in Place

9




9

Extensions, Discoveries and Other Additions - (d)

934


18



952

Total Proved Reserve Additions - (e)

825


22



847

Sales in Place

(3)



(8)


(11)

Net Proved Reserve Additions From All Sources - (f)

822


22


(8)


836









Production - (g)

295


14



309









Reserve Replacement Costs ($ / Boe)








Total Drilling, Before Revisions - (a / d)

3.83


3.33



3.88

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

4.45


2.73



4.48

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

5.82


2.73



5.81









Reserve Replacement








Drilling Only - (d / g)

317 %


129 %


0 %


308 %

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

279 %


157 %


0 %


271 %

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

213 %


157 %


0 %


208 %









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








Revisions

(244)




(244)

Purchases in Place

5




5

Extensions, Discoveries and Other Additions - (h)

505


1



506

Total Proved Reserve Additions

266


1



267

Sales in Place

(2)




(2)

Net Proved Reserve Additions From All Sources - (i)

264


1



265









Production - (j)

215




215









Reserve Replacement - Liquids








Drilling Only - (h / j)

235 %


0 %


0 %


235 %

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

123 %


0 %


0 %


123 %

 

Reserve Replacement Cost Data


(Unaudited; in millions, except ratio data)




For the Twelve Months Ended December 31, 2021




Proved Developed Reserve Replacement Costs ($ / Boe)

Total

Total Costs Incurred in Exploration and Development Activities (GAAP)

3,969

Less:   Asset Retirement Costs

(127)

Acquisition Costs of Unproved Properties

(215)

Acquisition Costs of Proved Properties

(100)

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

3,527



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

952

Add:  Conversion of Proved Undeveloped Reserves to Proved Developed

243

Less:  Proved Undeveloped Extensions and Discoveries

(779)

Proved Developed Reserves - Extensions and Discoveries (MMBoe)

416



Total Proved Reserves - Revisions (MMBoe)

(114)

Less:  Proved Undeveloped Reserves - Revisions

305

Proved Developed - Revisions Due to Price

(165)

Proved Developed Reserves - Revisions Other Than Price (MMBoe)

26



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

442



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

7.98

 

Reserve Replacement Cost Data


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















The following table reconciles Total Costs Incurred in Exploration and Development Activities (GAAP) to Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) and Total Exploration and Development Expenditures (Non-GAAP), as used in the calculation of Reserve Replacement Costs per Boe.  There are numerous ways that industry participants present Reserve Repl