false0000821189 0000821189 2020-05-07 2020-05-07


 
 
 
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 7, 2020

_______________

EOG RESOURCES, INC.
(Exact name of registrant as specified in its charter)

Delaware
1-9743
47-0684736
(State or other jurisdiction
 of incorporation)
(Commission File
 Number)
(I.R.S. Employer
Identification No.)

1111 Bagby, Sky Lobby 2
Houston, Texas  77002
(Address of principal executive offices) (Zip Code)

713-651-7000
(Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
EOG
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


 
 
 
 
 




EOG RESOURCES, INC.

Item 2.02     Results of Operations and Financial Condition.

On May 7, 2020, EOG Resources, Inc. issued a press release announcing first quarter 2020 financial and operational results and second quarter and full year 2020 forecast and benchmark commodity pricing information (see Item 7.01 below).  A copy of this release is attached as Exhibit 99.1 to this filing and is incorporated herein by reference.  This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

Item 7.01     Regulation FD Disclosure.

Accompanying the press release announcing first quarter 2020 financial and operational results attached hereto as Exhibit 99.1 is second quarter and full year 2020 forecast and benchmark commodity pricing information for EOG Resources, Inc., which information is incorporated herein by reference.  This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits


104    Cover Page Interactive Data File (formatted as Inline XBRL).



2



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
EOG RESOURCES, INC.
(Registrant)
 
 
 
 
 
 
 
 
 
Date: May 7, 2020
By:
/s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and Duly Authorized Officer)


3


EXHIBIT 99.1

eoglogoa38.jpg

May 7, 2020

EOG Resources Reports First Quarter 2020 Results and Updates 2020 Plan in Response to Oil Market Downturn; Company Well-Positioned to Emerge Stronger in a Recovery
Reduced Full-Year 2020 Capital Plan by an Additional $1.0 Billion to $3.3 to $3.7 Billion, Representing a Total Reduction of 46% Compared with Original Plan
Target 2020 Well Cost Savings of 8%
Declared Unchanged Common Stock Dividend of $0.375 per Share, or $1.50 Indicated Annual Rate
First Quarter Crude Oil Production Within Target Range with Capital Expenditures 14% Below Target Midpoint
 
HOUSTON - (PR Newswire) - EOG Resources, Inc. (EOG) today reported first quarter 2020 net income of $10 million, or $0.02 per share, compared with first quarter 2019 net income of $635 million, or $1.10 per share. 
 
Adjusted non-GAAP net income for the first quarter 2020 was $318 million, or $0.55 per share, compared with adjusted non-GAAP net income of $689 million, or $1.19 per share, for the same prior year period. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.
 
First Quarter 2020 Review
EOG continued to deliver strong operational and financial performance in the first quarter 2020 while responding to rapidly changing market conditions. The company moved quickly to reduce activity and capital expenditures. EOG also elected to defer production by delaying the startup of new wells and shutting in production from existing wells. 

Crude oil production volumes in the first quarter 2020 were in line with the target range while capital expenditures were 14 percent below the target midpoint. Total company crude oil volumes of 483,300 barrels of oil per day (Bopd) grew 11 percent compared with the first quarter 2019, despite electing to delay the startup of some new wells in the quarter and the shut-in of approximately 8,000 Bopd in March. Natural gas liquids production increased 35 percent, supported by the increased recovery of ethane in natural gas processing operations. Natural gas volumes grew five percent, contributing to total company daily production growth of 13 percent.

Cash operating expenses declined by eight percent on a per-unit basis during the first quarter 2020 compared with the same prior year period. Lower per-unit lease and well and general and administrative costs contributed to the overall cost reduction.

Net cash provided by operating activities for the first quarter 2020 was $2.6 billion. EOG generated $1.7 billion of discretionary cash flow in the first quarter 2020. The company incurred total expenditures of $1.8 billion, including $1.7 billion of capital expenditures before acquisitions, non‐cash transactions and asset retirement costs. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.



“EOG is a resilient company. During the first quarter the company adjusted operations quickly to manage extreme commodity price volatility and the challenges from the COVID-19 pandemic,” said William R. “Bill” Thomas, Chairman and Chief Executive Officer. “These unprecedented market conditions have super-charged our unique culture to vigorously lower costs and generate innovative productivity gains that will make EOG a much better company as we emerge from this downturn. Our years of continuous improvement, disciplined high-return investments, free cash flow generation and focus on strengthening our balance sheet have positioned the company for sustainable success through commodity price cycles.”

Updated 2020 Capital Plan
EOG has further revised its full-year 2020 plan as a result of the significant decline and increased volatility of commodity prices. The goals of the plan are to generate high rates of return on capital investments, maintain EOG’s strong financial position and support the dividend. The revised plan retains funding for projects that support the long-term value of the company, including targeted infrastructure, exploration and environmental projects.

Exploration and development expenditures for 2020 are now expected to range from $3.3 billion to $3.7 billion, including facilities and gathering, processing and other expenditures, and excluding acquisitions, non‐cash transactions and asset retirement costs. This represents a reduction of $1.0 billion from the previous updated plan that was announced on March 16 and a reduction of $3.0 billion, or 46 percent, from the original plan at the start of the year.

EOG has moved quickly to reduce its operating activity. The company lowered its operated rig count from 36 rigs to eight rigs during the last six weeks, with an average of approximately six rigs expected for the remainder of 2020. EOG has identified over 4,500 net drilling locations - more than nine years of inventory at the 2020 activity pace - that are capable of generating strong rates of return at less than $30 WTI oil. The company plans to focus its 2020 activity on these high-return wells.

Driven by its innovative culture and decentralized organization, EOG is accelerating cost reductions and sustainable efficiency improvements across its operations. Targeted well costs are forecast to decline an average of eight percent compared with 2019 levels, including reductions of nine percent and seven percent, respectively, in EOG’s premier Delaware Basin and South Texas Eagle Ford operations.

EOG’s revised capital plan targets full-year 2020 crude oil production of approximately 390,000 Bopd, representing a decline of 15 percent compared with full-year 2019 levels. EOG currently plans to bring approximately 485 net wells onto production for the full-year 2020 compared with the original forecast of 800 net wells, with a focus on the Delaware Basin and South Texas Eagle Ford.

In order to generate higher rates of return, the company has elected to defer some of its production until oil prices recover. This includes delaying the startup of approximately 150 net new wells until the second half of 2020 and the shut-in of existing production. The net production volume associated with the shut-in of existing wells was approximately 8,000 Bopd in March, 24,000 Bopd in April and is estimated to be 125,000 Bopd in May and 100,000 Bopd in June, with an average of 40,000 Bopd for the full-year 2020.

“Our guiding principles in this environment remain consistent with EOG’s long-term strategy: to make returns-based decisions and spend within our means to protect our strong balance sheet. This is intended to preserve EOG’s business value and position the company to thrive in an upturn,” Thomas said.




“Over the last several years as we implemented our premium strategy, EOG significantly lowered its cost structure and strengthened its financial position, giving us a distinct advantage in the current environment. Our operational flexibility, favorable hedges and strong liquidity leave us well-positioned to respond to volatile market conditions. Since the end of the first quarter, we have further bolstered our liquidity by adjusting our hedge position and issuing new long-term debt to refinance bond maturities. Because we have acted decisively, we will be able to utilize these advantages as we navigate the downturn.”

“During these challenging times, our first priority is the health and safety of our employees and their families, our contractors and our communities. We are also committed to sustaining our unique culture, EOG’s most important asset. I am incredibly proud of our exceptional people, who have quickly adjusted to the new environment. Our employees are the foundation of the EOG culture. Thanks to their hard work and dedication, EOG is well-positioned to emerge even stronger in the recovery.”

Dividend
The board of directors declared a dividend of $0.375 per share on EOG’s Common Stock. The dividend will be payable July 31, 2020, to stockholders of record as of July 17, 2020. The indicated annual rate is $1.50 per share.
 
Financial Review
At March 31, 2020, EOG’s total debt outstanding was $5.2 billion for a debt-to-total capitalization ratio of 20 percent. Considering $2.9 billion of cash on the balance sheet at the end of the first quarter, EOG’s net debt was $2.3 billion for a net debt-to-total capitalization ratio of 10 percent. EOG’s liquidity is further enhanced by $2.0 billion of availability under its senior unsecured revolving credit agreement as of March 31, 2020. For a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

Subsequent to the end of the first quarter, on April 1, 2020, EOG repaid, with cash on hand, the $500 million aggregate principal amount of its 2.45% Senior Notes due 2020 that matured on that date. In addition, on April 14, 2020, EOG closed its sale of $750 million aggregate principal amount of its 4.375% Senior Notes due 2030 and $750 million aggregate principal amount of its 4.950% Senior Notes due 2050. EOG received aggregate net proceeds from the sale, after deducting underwriting discounts and estimated offering expenses, of approximately $1.48 billion.

First Quarter 2020 Results Webcast
Friday, May 8, 2020, 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




Source: EOG Resources, Inc.
Category: Earnings

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, returns, 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," "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, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness 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 crude oil and condensate, natural gas liquids, natural gas and related commodity production;
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 and refining 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 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 imposing 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 and transportation 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, on pages 13 through 23 of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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, 2019, 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.







EOG RESOURCES, INC.
Financial Report
(Unaudited; in millions, except per share data)
 
 
Three Months Ended
 
March 31,
 
2020
 
2019
 
 
 
 
Operating Revenues and Other
$
4,717.7

 
$
4,058.6

Net Income
$
9.8

 
$
635.4

Net Income Per Share
 
 
 
Basic
$
0.02

 
$
1.10

Diluted
$
0.02

 
$
1.10

Average Number of Common Shares
 
 
 
Basic
578.5

 
577.2

Diluted
580.3

 
580.2

 
 
 
 
Summary Income Statements
(Unaudited; in thousands, except per share data)
 
 
Three Months Ended
 
March 31,
 
2020
 
2019
Operating Revenues and Other
 
 
Crude Oil and Condensate
$
2,065,498

 
$
2,200,403

Natural Gas Liquids
160,535

 
218,638

Natural Gas
209,764

 
334,972

Gains (Losses) on Mark-to-Market Commodity Derivative Contracts
1,205,773

 
(20,580
)
Gathering, Processing and Marketing
1,038,646

 
1,285,654

Gains (Losses) on Asset Dispositions, Net
16,460

 
(3,836
)
Other, Net
21,016

 
43,391

Total
4,717,692

 
4,058,642

Operating Expenses
 
 
 
Lease and Well
329,659

 
336,291

Transportation Costs
208,296

 
176,522

Gathering and Processing Costs
128,482

 
111,295

Exploration Costs
39,677

 
36,324

Dry Hole Costs
372

 
94

Impairments
1,572,935

 
72,356

Marketing Costs
1,108,993

 
1,270,057

Depreciation, Depletion and Amortization
1,000,060

 
879,595

General and Administrative
114,273

 
106,672

Taxes Other Than Income
157,360

 
192,906

Total
4,660,107

 
3,182,112

 
 
 
 
Operating Income
57,585

 
876,530

 
 
 
 
Other Income, Net
18,108

 
5,612

 
 
 
 
Income Before Interest Expense and Income Taxes
75,693

 
882,142

 
 
 
 
Interest Expense, Net
44,690

 
54,906

 
 
 
 
Income Before Income Taxes
31,003

 
827,236

 
 
 
 
Income Tax Provision
21,190

 
191,810

 
 
 
 
Net Income
$
9,813

 
$
635,426

 
 
 
 
Dividends Declared per Common Share
$
0.3750

 
$
0.2200

 
 
 
 
 
 
 
 





EOG RESOURCES, INC.
Operating Highlights
(Unaudited)
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
% Change
Wellhead Volumes and Prices
 
 
 
 
 
Crude Oil and Condensate Volumes (MBbld) (A)
 
 
 
United States
482.7

 
435.1

 
11
 %
Trinidad
0.5

 
0.7

 
-29
 %
Other International (B)
0.1

 
0.1

 
0
 %
Total
483.3

 
435.9

 
11
 %
 
 
 
 
 
 
Average Crude Oil and Condensate Prices
($/Bbl) (C)
 
 
 
 
 
United States
$
46.97

 
$
56.11

 
-16
 %
Trinidad
34.93

 
43.68

 
-20
 %
Other International (B)
57.51

 
60.13

 
-4
 %
Composite
46.96

 
56.09

 
-16
 %
 
 
 
 
 
 
Natural Gas Liquids Volumes (MBbld) (A)
 
 
 
 
 
United States
161.3

 
119.8

 
35
 %
Other International (B)

 

 
 
Total
161.3

 
119.8

 
35
 %
 
 
 
 
 
 
Average Natural Gas Liquids Prices ($/Bbl) (C)
 
 
 
 
 
United States
$
10.94

 
$
20.28

 
-46
 %
Other International (B)

 

 
 
Composite
10.94

 
20.28

 
-46
 %
 
 
 
 
 
 
Natural Gas Volumes (MMcfd) (A)
 
 
 
 
 
United States
1,139

 
1,003

 
14
 %
Trinidad
201

 
267

 
-25
 %
Other International (B)
38

 
38

 
0
 %
Total
1,378

 
1,308

 
5
 %
 
 
 
 
 
 
Average Natural Gas Prices ($/Mcf) (C)
 
 
 
 
 
United States
$
1.50

 
$
2.77

 
-46
 %
Trinidad
2.17

 
2.91

 
-26
 %
Other International (B)
4.32

 
4.37

 
-1
 %
Composite
1.67

 
2.85

 
-41
 %
 
 
 
 
 
 
Crude Oil Equivalent Volumes (MBoed) (D)
 
 
 
 
 
United States
833.8

 
722.0

 
15
 %
Trinidad
34.0

 
45.1

 
-25
 %
Other International (B)
6.3

 
6.5

 
-3
 %
Total
874.1

 
773.6

 
13
 %
 
 
 
 
 
 
Total MMBoe (D)
79.5

 
69.6

 
14
 %

(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, 2019).
(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.






EOG RESOURCES, INC.
Summary Balance Sheets
(Unaudited; in thousands, except share data)
 
 
March 31,
 
December 31,
 
2020
 
2019
ASSETS
Current Assets
 
 
 
Cash and Cash Equivalents
$
2,906,852

 
$
2,027,972

Accounts Receivable, Net
1,449,637

 
2,001,658

Inventories
662,398

 
767,297

Assets from Price Risk Management Activities
932,928

 
1,299

Income Taxes Receivable
309,328

 
151,665

Other
229,906

 
323,448

Total
6,491,049

 
5,273,339

 
Property, Plant and Equipment
 
 
 
Oil and Gas Properties (Successful Efforts Method)
64,046,355

 
62,830,415

Other Property, Plant and Equipment
4,648,834

 
4,472,246

Total Property, Plant and Equipment
68,695,189

 
67,302,661

Less: Accumulated Depreciation, Depletion and Amortization
(39,001,135
)
 
(36,938,066
)
Total Property, Plant and Equipment, Net
29,694,054

 
30,364,595

Deferred Income Taxes
2,558

 
2,363

Other Assets
1,446,423

 
1,484,311

Total Assets
$
37,634,084

 
$
37,124,608

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 
 
 
Accounts Payable
$
2,892,320

 
$
2,429,127

Accrued Taxes Payable
200,240

 
254,850

Dividends Payable
216,933

 
166,273

Liabilities from Price Risk Management Activities

 
20,194

Current Portion of Long-Term Debt
519,017

 
1,014,524

Current Portion of Operating Lease Liabilities
322,367

 
369,365

Other
154,134

 
232,655

Total
4,305,011

 
4,486,988

 
 
 
 
 
 
 
 
Long-Term Debt
4,703,152

 
4,160,919

Other Liabilities
2,064,175

 
1,789,884

Deferred Income Taxes
5,091,071

 
5,046,101

Commitments and Contingencies
 
 
 
 
 
 
 
Stockholders' Equity
 
 
 
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 582,356,329 Shares Issued at March 31, 2020 and 582,213,016 Shares Issued at December 31, 2019
205,824

 
205,822

Additional Paid in Capital
5,852,821

 
5,817,475

Accumulated Other Comprehensive Loss
(3,305
)
 
(4,652
)
Retained Earnings
15,440,142

 
15,648,604

Common Stock Held in Treasury, 319,162 Shares at March 31, 2020 and 298,820 Shares at December 31, 2019
(24,807
)
 
(26,533
)
Total Stockholders' Equity
21,470,675

 
21,640,716

Total Liabilities and Stockholders' Equity
$
37,634,084

 
$
37,124,608








EOG RESOURCES, INC.
Summary Statements of Cash Flows
(Unaudited; in thousands)
 
Three Months Ended
 
March 31,
 
2020
 
2019
Cash Flows from Operating Activities
 
 
 
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
 
 
 
Net Income
$
9,813

 
$
635,426

Items Not Requiring (Providing) Cash
 
 
 
Depreciation, Depletion and Amortization
1,000,060

 
879,595

Impairments
1,572,935

 
72,356

Stock-Based Compensation Expenses
40,072

 
39,087

Deferred Income Taxes
44,774

 
106,324

(Gains) Losses on Asset Dispositions, Net
(16,460
)
 
3,836

Other, Net
(8,815
)
 
2,952

Dry Hole Costs
372

 
94

Mark-to-Market Commodity Derivative Contracts
 
 
 
Total (Gains) Losses
(1,205,773
)
 
20,580

Net Cash Received from Settlements of Commodity Derivative Contracts
84,373

 
20,846

Other, Net
(355
)
 
976

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
Accounts Receivable
722,163

 
(308,996
)
Inventories
102,670

 
(18,979
)
Accounts Payable
433,558

 
194,082

Accrued Taxes Payable
(54,605
)
 
114,998

Other Assets
58,296

 
(6,935
)
Other Liabilities
(66,078
)
 
(54,092
)
Changes in Components of Working Capital Associated with Investing Activities
(132,082
)
 
(94,381
)
Net Cash Provided by Operating Activities
2,584,918

 
1,607,769

 
 
 
 
Investing Cash Flows
 
 
 
Additions to Oil and Gas Properties
(1,566,051
)
 
(1,939,473
)
Additions to Other Property, Plant and Equipment
(122,775
)
 
(60,963
)
Proceeds from Sales of Assets
25,801

 
15,049

Changes in Components of Working Capital Associated with Investing Activities
132,082

 
94,381

Net Cash Used in Investing Activities
(1,530,943
)
 
(1,891,006
)
 
 
 
 
Financing Cash Flows
 
 
 
Dividends Paid
(167,058
)
 
(127,546
)
Treasury Stock Purchased
(4,655
)
 
(6,248
)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan
66

 
403

Repayment of Finance Lease Liabilities
(3,621
)
 
(3,190
)
Net Cash Used in Financing Activities
(175,268
)
 
(136,581
)
 
 
 
 
Effect of Exchange Rate Changes on Cash
173

 
(6
)
 
 
 
 
Increase (Decrease) in Cash and Cash Equivalents
878,880

 
(419,824
)
Cash and Cash Equivalents at Beginning of Period
2,027,972

 
1,555,634

Cash and Cash Equivalents at End of Period
$
2,906,852

 
$
1,135,810






EOG RESOURCES, INC.
Reconciliation of Adjusted Net Income
(Unaudited; in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following chart adjusts the three-month periods ended March 31, 2020 and 2019 reported Net Income (GAAP) to reflect actual net cash received from 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 in 2020 and 2019 and to add back impairment charges related to certain of EOG's assets in 2020 and 2019. 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.
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2020
 
March 31, 2019
 
 
 
 
 
 
 
 
 
 
Before Tax
 
Income Tax Impact
 
After
Tax
 
Diluted Earnings per Share
 
Before Tax
 
Income Tax Impact
 
After
Tax
 
Diluted Earnings per Share
Reported Net Income (GAAP)
$
31,003

 
$
(21,190
)
 
$
9,813

 
$
0.02

 
$
827,236

 
$
(191,810
)
 
$
635,426

 
$
1.10

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) Losses on Mark-to-Market Commodity Derivative Contracts
(1,205,773
)
 
264,643

 
(941,130
)
 
(1.62
)
 
20,580

 
(4,533
)
 
16,047

 
0.02

Net Cash Received from Settlements of Commodity Derivative Contracts
84,373

 
(18,518
)
 
65,855

 
0.11

 
20,846

 
(4,592
)
 
16,254

 
0.03

Add: (Gains) Losses on Asset Dispositions, Net
(16,460
)
 
3,613

 
(12,847
)
 
(0.02
)
 
3,836

 
(736
)
 
3,100

 
0.01

Add: Impairments
1,516,316

 
(319,973
)
 
1,196,343

 
2.06

 
23,745

 
(5,230
)
 
18,515

 
0.03

Adjustments to Net Income
378,456

 
(70,235
)
 
308,221

 
0.53

 
69,007

 
(15,091
)
 
53,916

 
0.09

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP)
$
409,459

 
$
(91,425
)
 
$
318,034

 
$
0.55

 
$
896,243

 
$
(206,901
)
 
$
689,342

 
$
1.19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
578,462

 
 
 
 
 
 
 
577,207

Diluted
 
 
 
 
 
 
580,283

 
 
 
 
 
 
 
580,222









EOG RESOURCES, INC.
Reconciliation of Discretionary Cash Flow
(Unaudited; in thousands)

Calculation of Free Cash Flow
(Unaudited; in thousands)
 
 
 
 
The following chart reconciles the three-month periods ended March 31, 2020 and 2019 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), Other Non-Current Income Taxes - Net Receivable, Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing Activities. 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 for the three months ended March 31, 2020 and 2019. EOG management uses this information for comparative purposes within the industry.
 
 
Three Months Ended
 
March 31,
 
2020
 
2019
 
 
 
 
Net Cash Provided by Operating Activities (GAAP)
$
2,584,918

 
$
1,607,769

 
 
 
 
Adjustments:
 
 
 
Exploration Costs (excluding Stock-Based Compensation Expenses)
32,482

 
29,787

Other Non-Current Income Taxes - Net Receivable
112,704

 
102,918

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
Accounts Receivable
(722,163
)
 
308,996

Inventories
(102,670
)
 
18,979

Accounts Payable
(433,558
)
 
(194,082
)
Accrued Taxes Payable
54,605

 
(114,998
)
Other Assets
(58,296
)
 
6,935

Other Liabilities
66,078

 
54,092

Changes in Components of Working Capital Associated with Investing Activities
132,082

 
94,381

 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
1,666,182

 
$
1,914,777

 
 
 
 
Discretionary Cash Flow (Non-GAAP) - Percentage Decrease
-13
 %
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
1,666,182

 
$
1,914,777

Less:
 
 
 
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(1,684,720
)
 
(1,732,476
)
Free Cash Flow (Non-GAAP) (b)
$
(18,538
)
 
$
182,301

 
 
 
 





(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the three-month periods ended March 31, 2020 and 2019:
 
 
 
 
Total Expenditures (GAAP)
$
1,825,778

 
$
2,101,919

Less:
 
 
 
Asset Retirement Costs
(19,608
)
 
(5,156
)
Non-Cash Expenditures of Other Property, Plant and Equipment

 

Non-Cash Acquisition Costs of Unproved Properties
(24,488
)
 
(43,481
)
Non-Cash Finance Leases
(48,958
)
 

Acquisition Costs of Proved Properties
(48,004
)
 
(320,806
)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)
$
1,684,720

 
$
1,732,476

 
 
 
 
(b) To better align the presentation of free cash flow for comparative purposes within the industry, free cash flow has been updated to exclude dividends paid (GAAP) as a reconciling item for the three-month period ending March 31, 2020. The comparative prior period has been revised for this change in 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 anticipated 4Q 2020 U.S. oil production.






EOG RESOURCES, INC.
Reconciliation of Discretionary Cash Flow
(Unaudited; in thousands)

Calculation of Free Cash Flow
(Unaudited; in thousands)
 
 
 
 
 
 
The following chart reconciles the twelve-month periods ended December 31, 2019, 2018 and 2017 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), Other Non-Current Income Taxes - Net (Payable) Receivable, Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing and Financing Activities. 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 for the twelve months ended December 31, 2019, 2018 and 2017. EOG management uses this information for comparative purposes within the industry.
 
 
 
 
Twelve Months Ended
 
December 31,
 
2019
 
2018
 
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
%
 
 
 
 
 
 
 
 
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, 2019, 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 has been updated to exclude dividends paid (GAAP) as a reconciling item for the twelve-month period ending December 31, 2019. Comparative prior periods presented herein have been revised for this change in presentation.







EOG RESOURCES, INC.
Reconciliation of Discretionary Cash Flow
(Unaudited; in thousands)

Calculation of Free Cash Flow
(Unaudited; in thousands)
 
 
 
 
 
 
The following chart reconciles the twelve-month periods ended December 31, 2014, 2013 and 2012 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), Excess Tax Benefits from Stock-Based Conmpensation, Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing and Financing Activities. 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 for the twelve months ended December 31, 2014, 2013 and 2012. EOG management uses this information for comparative purposes within the industry.
 
 
 
 
Twelve Months Ended
 
December 31,
 
2014
 
2013
 
2012
 
 
 
 
 
 
Net Cash Provided by Operating Activities (GAAP)
$
8,649,155

 
$
7,329,414

 
$
5,236,777

 
 
 
 
 
 
Adjustments:
 
 
 
 
 
Exploration Costs (excluding Stock-Based Compensation Expenses)
157,453

 
134,531

 
159,182

Excess Tax Benefits from Stock-Based Compensation
99,459

 
55,831

 
67,035

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
Accounts Receivable
(84,982
)
 
23,613

 
178,683

Inventories
161,958

 
(53,402
)
 
156,762

Accounts Payable
(543,630
)
 
(178,701
)
 
17,150

Accrued Taxes Payable
(16,486
)
 
(75,142
)
 
(78,094
)
Other Assets
14,448

 
109,567

 
118,520

Other Liabilities
(75,420
)
 
20,382

 
(36,114
)
Changes in Components of Working Capital Associated with Investing and Financing Activities
103,414

 
51,361

 
(74,158
)
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
8,465,369

 
$
7,417,454

 
$
5,745,743

 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP) - Percentage Increase
14
%
 
29
%
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
8,465,369

 
$
7,417,454

 
$
5,745,743

Less:
 
 
 
 
 
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(8,292,090
)
 
(7,101,791
)
 
(7,539,994
)
Free Cash Flow (Non-GAAP) (b)
$
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, 2014, 2013 and 2012:
 
 
 
 
 
 
Total Expenditures (GAAP)
$
8,631,906

 
$
7,361,457

 
$
7,753,828

Less:
 
 
 
 
 
Asset Retirement Costs
(195,630
)
 
(134,445
)
 
(126,987
)
Non-Cash Expenditures of Other Property, Plant and Equipment

 

 
(65,791
)
Non-Cash Acquisition Costs of Unproved Properties
(5,085
)
 
(5,007
)
 
(20,317
)
Acquisition Costs of Proved Properties
(139,101
)
 
(120,214
)
 
(739
)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)
$
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, free cash flow has been updated to exclude dividends paid (GAAP) as a reconciling item. Comparative prior periods presented herein have been revised for this change in presentation.







EOG RESOURCES, INC.
Total Expenditures
(Unaudited; in millions)
 
 
 
 
Three Months Ended
 
Twelve Months Ended
 
March 31,
 
December 31,
 
2020
 
2019
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Exploration and Development Drilling
$
1,313

 
$
1,402

 
$
4,951

 
$
4,935

 
$
3,132

Facilities
179

 
164

 
629

 
625

 
575

Leasehold Acquisitions
45

 
107

 
276

 
488

 
427

Property Acquisitions
48

 
321

 
380

 
124

 
73

Capitalized Interest
9

 
7

 
38

 
24

 
27

Subtotal
1,594

 
2,001

 
6,274

 
6,196

 
4,234

Exploration Costs
40

 
36

 
140

 
149

 
145

Dry Hole Costs

 

 
28

 
5

 
5

Exploration and Development Expenditures
1,634

 
2,037

 
6,442

 
6,350

 
4,384

Asset Retirement Costs
20

 
4

 
186

 
70

 
56

Total Exploration and Development Expenditures
1,654

 
2,041

 
6,628

 
6,420

 
4,440

Other Property, Plant and Equipment
172

 
61

 
272

 
286

 
173

Total Expenditures
$
1,826

 
$
2,102

 
$
6,900

 
$
6,706

 
$
4,613







EOG RESOURCES, INC.
Reconciliation of Adjusted EBITDAX
(Unaudited; in thousands)
 
 
 
 
The following chart adjusts the three-month periods ended March 31, 2020 and 2019 reported Net Income (GAAP) to Earnings Before Interest Expense (Net), Income Taxes (Income Tax Provision), 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 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 (GAAP) to add back Interest Expense (Net), Income Taxes (Income Tax Provision), 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.
 
 
 
 
 
Three Months Ended
 
March 31,
 
2020
 
2019
 
 
 
 
Net Income (GAAP)
$
9,813

 
$
635,426

 
 
 
 
Adjustments:
 
 
 
Interest Expense, Net
44,690

 
54,906

Income Tax Provision
21,190

 
191,810

Depreciation, Depletion and Amortization
1,000,060

 
879,595

Exploration Costs
39,677

 
36,324

Dry Hole Costs
372

 
94

Impairments
1,572,935

 
72,356

EBITDAX (Non-GAAP)
2,688,737

 
1,870,511

Total (Gains) Losses on MTM Commodity Derivative Contracts
(1,205,773
)
 
20,580

Net Cash Received from Settlements of Commodity Derivative Contracts
84,373

 
20,846

(Gains) Losses on Asset Dispositions, Net
(16,460
)
 
3,836

 
 
 
 
Adjusted EBITDAX (Non-GAAP)
$
1,550,877

 
$
1,915,773

 
 
 
 
Adjusted EBITDAX (Non-GAAP) - Percentage Decrease
-19
 %
 
 






EOG RESOURCES, INC.
Reconciliation of Net Debt and Total Capitalization
Calculation of Net Debt-to-Total Capitalization Ratio
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
 
 
The following chart reconciles 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.
 
 
 
 
 
 
 
 
 
 
At
March 31,
2020
 
At
December 31,
2019
 
At
September 30,
2019
 
At
June 30,
2019
 
At
March 31,
2019
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity - (a)
$
21,471

 
$
21,641

 
$
21,124

 
$
20,630

 
$
19,904

 
 
 
 
 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (b)
5,222

 
5,175

 
5,177

 
5,179

 
6,081

Less: Cash
(2,907
)
 
(2,028
)
 
(1,583
)
 
(1,160
)
 
(1,136
)
Net Debt (Non-GAAP) - (c)
2,315

 
3,147

 
3,594

 
4,019

 
4,945

 
 
 
 
 
 
 
 
 
 
Total Capitalization (GAAP) - (a) + (b)
$
26,693

 
$
26,816

 
$
26,301

 
$
25,809

 
$
25,985

 
 
 
 
 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (a) + (c)
$
23,786

 
$
24,788

 
$
24,718

 
$
24,649

 
$
24,849

 
 
 
 
 
 
 
 
 
 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]
20
%
 
19
%
 
20
%
 
20
%
 
23
%
 
 
 
 
 
 
 
 
 
 
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
10
%
 
13
%
 
15
%
 
16
%
 
20
%






EOG RESOURCES, INC.
Reconciliation of Net Debt and Total Capitalization
Calculation of Net Debt-to-Total Capitalization Ratio
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
The following chart reconciles 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.
 
 
 
 
 
 
 
 
At
December 31,
2018
 
At
September 30,
2018
 
At
June 30,
2018
 
At
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)]
24
%
 
26
%
 
27
%
 
28
%
 
 
 
 
 
 
 
 
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
19
%
 
22
%
 
24
%
 
25
%






EOG RESOURCES, INC.
Reconciliation of Net Debt and Total Capitalization
Calculation of Net Debt-to-Total Capitalization Ratio
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
The following chart reconciles 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.
 
 
 
 
 
 
 
 
At
December 31,
2017
 
At
September 30,
2017
 
At
June 30,
2017
 
At
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
%
 
31
%
 
33
%
 
33
%
 
 
 
 
 
 
 
 
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
25
%
 
28
%
 
28
%
 
28
%






EOG RESOURCES, INC.
Reconciliation of Net Debt and Total Capitalization
Calculation of Net Debt-to-Total Capitalization Ratio
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
 
 
The following chart reconciles 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.
 
 
 
 
 
 
 
 
 
 
At
December 31, 2016
 
At
September 30, 2016
 
At
June 30,
2016
 
At
March 31,
2016
 
At
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
%
 
37
%
 
37
%
 
36
%
 
34
%
 
 
 
 
 
 
 
 
 
 
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
28
%
 
33
%
 
34
%
 
34
%
 
31
%






EOG RESOURCES, INC.
Reconciliation of Total Exploration and Development Expenditures
For Drilling Only and Total Exploration and Development Expenditures
Calculation of Reserve Replacement Costs ($ / BOE)
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
 
 
The following chart reconciles Total Costs Incurred in Exploration and Development Activities (GAAP) to Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) and Total Exploration and Development Expenditures (Non-GAAP), as used in the calculation of Reserve Replacement Costs per Boe. There are numerous ways that industry participants present Reserve Replacement Costs, including “Drilling Only” and “All-In”, which reflect total exploration and development expenditures divided by total net proved reserve additions from extensions and discoveries only, or from all sources. Combined with Reserve Replacement, these statistics provide management and investors with an indication of the results of the current year capital investment program. Reserve Replacement Cost statistics are widely recognized and reported by industry participants and are used by EOG management and other third parties for comparative purposes within the industry. Please note that the actual cost of adding reserves will vary from the reported statistics due to timing differences in reserve bookings and capital expenditures. Accordingly, some analysts use three or five year averages of reported statistics, while others prefer to estimate future costs. EOG has not included future capital costs to develop proved undeveloped reserves in exploration and development expenditures.
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
 
2017
 
2016
 
2015
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Total Costs Incurred in Exploration and Development Activities (GAAP)
$
6,628.2

 
$
6,419.7

 
$
4,439.4

 
$
6,445.2

 
$
4,928.3

 
$
7,904.8

Less: Asset Retirement Costs
(186.1
)
 
(69.7
)
 
(55.6
)
 
19.9

 
(53.5
)
 
(195.6
)
Non-Cash Acquisition Costs of Unproved Properties
(97.7
)
 
(290.5
)
 
(255.7
)
 
(3,101.8
)
 

 

Acquisition Costs of Proved Properties
(379.9
)
 
(123.7
)
 
(72.6
)
 
(749.0
)
 
(480.6
)
 
(139.1
)
Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) - (a)
$
5,964.5

 
$
5,935.8

 
$
4,055.5

 
$
2,614.3

 
$
4,394.2

 
$
7,570.1

 
 
 
 
 
 
 
 
 
 
 
 
Total Costs Incurred in Exploration and Development Activities (GAAP)
$
6,628.2

 
$
6,419.7

 
$
4,439.4

 
$
6,445.2

 
$
4,928.3

 
$
7,904.8

Less: Asset Retirement Costs
(186.1
)
 
(69.7
)
 
(55.6
)
 
19.9

 
(53.5
)
 
(195.6
)
Non-Cash Acquisition Costs of Unproved Properties
(97.7
)
 
(290.5
)
 
(255.7
)
 
(3,101.8
)
 

 

Non-Cash Acquisition Costs of Proved Properties
(52.3
)
 
(70.9
)
 
(26.2
)
 
(732.3
)
 

 

Total Exploration and Development Expenditures (Non-GAAP) - (b)
$
6,292.1

 
$
5,988.6

 
$
4,101.9

 
$
2,631.0

 
$
4,874.8

 
$
7,709.2

 
 
 
 
 
 
 
 
 
 
 
 
Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe)
 
 
 
 
 
 
 
 
 
 
 
Revisions Due to Price - (c)
(59.7
)
 
34.8

 
154.0

 
(100.7
)
 
(573.8
)
 
52.2

Revisions Other Than Price
(0.3
)
 
(39.5
)
 
48.0

 
252.9

 
107.2

 
48.4

Purchases in Place
16.8

 
11.6

 
2.3

 
42.3

 
56.2

 
14.4

Extensions, Discoveries and Other Additions - (d)
750.0

 
669.7

 
420.8

 
209.0

 
245.9

 
519.2

Total Proved Reserve Additions - (e)
706.8

 
676.6

 
625.1

 
403.5

 
(164.5
)
 
634.2

Sales in Place
(4.6
)
 
(10.8
)
 
(20.7
)
 
(167.6
)
 
(3.5
)
 
(36.3
)
Net Proved Reserve Additions From All Sources
702.2

 
665.8

 
604.4

 
235.9

 
(168.0
)
 
597.9

 
 
 
 
 
 
 
 
 
 
 
 
Production
300.9

 
265.0

 
224.4

 
207.1

 
211.2

 
219.1

 
 
 
 
 
 
 
 
 
 
 
 
RESERVE REPLACEMENT COSTS ($ / Boe)
 
 
 
 
 
 
 
 
 
 
 
Total Drilling, Before Revisions - (a / d)
$
7.95

 
$
8.86

 
$
9.64

 
$
12.51

 
$
17.87

 
$
14.58

All-in Total, Net of Revisions - (b / e)
$
8.90

 
$
8.85

 
$
6.56

 
$
6.52

 
$
(29.63
)
 
$
12.16

All-in Total, Excluding Revisions Due to Price -
(b / ( e - c))
$
8.21

 
$
9.33

 
$
8.71

 
$
5.22

 
$
11.91

 
$
13.25







EOG RESOURCES, INC.
Crude Oil, NGLs and Natural Gas Financial Commodity
Derivative Contracts

EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method.

Prices received by EOG for its crude oil production generally vary from NYMEX WTI prices due to adjustments for delivery location (basis) and other factors. EOG has entered into crude oil basis swap contracts in order to fix the differential between Intercontinental Exchange (ICE) Brent pricing and pricing in Cushing, Oklahoma (ICE Brent Differential). Presented below is a comprehensive summary of EOG's ICE Brent Differential basis swap contracts through May 5, 2020. The weighted average price differential expressed in $/Bbl represents the amount of addition to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.

 
ICE Brent Differential Basis Swap Contracts
 
 
 
Volume (Bbld)
 
Weighted Average Price Differential
($/Bbl)
 
 
 
2020
 
 
 
 
 
May 2020
 
10,000

 
$
4.92


EOG has also entered into crude oil basis swap contracts in order to fix the differential between pricing in Houston, Texas, and Cushing, Oklahoma (Houston Differential). Presented below is a comprehensive summary of EOG's Houston Differential basis swap contracts through May 5, 2020. The weighted average price differential expressed in $/Bbl represents the amount of addition to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.

 
Houston Differential Basis Swap Contracts
 
 
 
Volume (Bbld)
 
Weighted Average Price Differential
($/Bbl)
 
 
 
2020
 
 
 
 
 
May 2020 (closed)
 
10,000

 
$
1.55


EOG has also entered into crude oil swaps to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month (Roll Differential). Presented below is a comprehensive summary of EOG's Roll Differential swap contracts through May 5, 2020. The weighted average price differential expressed in $/Bbl represents the amount of net addition (reduction) to delivery month prices for the notional volumes expressed in Bbld covered by the swap contracts.

 
Roll Differential Swap Contracts
 
 
 
Volume (Bbld)
 
Weighted Average Price Differential
($/Bbl)
 
 
 
2020
 
 
 
 
 
February 1, 2020 through May 31, 2020 (closed)
 
10,000

 
$
0.70

 
June 2020
 
10,000

 
0.70

 
July 1, 2020 through September 30, 2020
 
110,000

 
(1.16
)
 
October 1, 2020 through December 31, 2020
 
93,000

 
(1.16
)

In May 2020, EOG entered into crude oil Roll Differential contracts for the period from October 1, 2020 through December 31, 2020, with notional volumes of 17,000 Bbld at a weighted average price differential of $(1.01) per Bbl. These contracts partially offset certain outstanding Roll Differential contracts for the same time period with notional volumes of 17,000 Bbld at a weighted average price differential of $(1.16) per Bbl. EOG expects to pay net cash of $0.2 million for the settlement of these contracts. The offsetting contracts were excluded from the above table.





Presented below is a comprehensive summary of EOG's crude oil NYMEX WTI price swap contracts through May 5, 2020, with notional volumes expressed in Bbld and prices expressed in $/Bbl.

 
Crude Oil NYMEX WTI Price Swap Contracts
 
 
 
Volume (Bbld)
 
Weighted Average Price ($/Bbl)
 
 
 
2020
 
 
 
 
 
January 1, 2020 through March 31, 2020 (closed)
 
200,000

 
$
59.33

 
April 2020 (closed)
 
265,000

 
51.36

 
May 1, 2020 through June 30, 2020
 
265,000

 
51.36

 
July 2020
 
254,000

 
42.36

 
August 1, 2020 through September 30, 2020
 
154,000

 
50.42


In April and May 2020, EOG entered into crude oil NYMEX WTI price swap contracts for the period from October 1, 2020 through December 31, 2020, with notional volumes of 47,000 Bbld at a weighted average price of $30.04 per Bbl. These contracts offset the remaining NYMEX WTI price swap contracts for the same time period with notional volumes of 47,000 Bbld at a weighted average price of $31.00 per Bbl. EOG expects to receive net cash of $4.1 million for the settlement of these contracts. The offsetting contracts were excluded from the above table.

Presented below is a comprehensive summary of EOG's crude oil ICE Brent price swap contracts through May 5, 2020, with notional volumes expressed in Bbld and prices expressed in $/Bbl.

 
Crude Oil ICE Brent Price Swap Contracts
 
 
 
Volume (Bbld)
 
Weighted Average Price ($/Bbl)
 
 
 
2020
 
 
 
 
 
April 2020 (closed)
 
75,000

 
$
25.66

 
May 2020
 
35,000

 
26.53


Presented below is a comprehensive summary of EOG's Mont Belvieu propane (non-TET) financial price swap contracts (Mont Belvieu Propane Price Swap Contracts) through May 5, 2020, with notional volumes expressed in Bbld and prices expressed in $/Bbl.

 
Mont Belvieu Propane Price Swap Contracts
 
 
 
Volume (Bbld)
 
Weighted Average Price ($/Bbl)
 
 
 
2020
 
 
 
 
 
January 1, 2020 through February 29, 2020 (closed)
 
4,000

 
$
21.34

 
March 1, 2020 through April 30, 2020 (closed)
 
25,000

 
17.92

 
May 1, 2020 through December 31, 2020
 
7,000

 
17.92


In April and May 2020, EOG entered into Mont Belvieu Propane Price Swap Contracts for the period from May 1, 2020 through December 31, 2020, with notional volumes of 18,000 Bbld at a weighted average price of $15.68 per Bbl. These contracts partially offset certain outstanding Mont Belvieu Propane Price Swap Contracts for the same time period with notional volumes of 18,000 Bbld at a weighted average price of $17.92 per Bbl. EOG expects to receive net cash of $9.9 million for the settlement of these contracts. The offsetting contracts were excluded from the above table.    






Presented below is a comprehensive summary of EOG's natural gas price swap contracts through May 5, 2020, with notional volumes expressed in MMBtud and prices expressed in $/MMBtu.

 
Natural Gas Price Swap Contracts
 
 
 
Volume (MMBtud)
 
Weighted Average Price
 ($/MMBtu)
 
 
 
2021
 
 
 
 
 
January 1, 2021 through December 31, 2021
 
50,000

 
$
2.75


EOG has entered into natural gas collar contracts, which establish ceiling and floor prices for the sale of notional volumes of natural gas as specified in the collar contracts. The collars require that EOG pay the difference between the ceiling price and the NYMEX Henry Hub natural gas price for the contract month (Henry Hub Index Price) in the event the Henry Hub Index Price is above the ceiling price. The collars grant EOG the right to receive the difference between the floor price and the Henry Hub Index Price in the event the Henry Hub Index Price is below the floor price. On March 24, 2020, EOG executed the early termination provision granting EOG the right to terminate certain 2020 natural gas collar contracts with notional volumes of 250,000 MMBtud at a weighted average ceiling price of $2.50 per MMBtu and a weighted average floor price of $2.00 per MMBtu for the period April 1, 2020 through July 31, 2020. The net cash EOG received for settling these contracts was $7.8 million. Presented below is a comprehensive summary of EOG's natural gas collar contracts through May 5, 2020, with notional volumes expressed in MMBtud and prices expressed in $/MMBtu.

 
Natural Gas Collar Contracts
 
 
 
 
 
Weighted Average Price ($/MMBtu)
 
 
 
Volume (MMBtud)
 
Ceiling Price
 
Floor Price
 
 
 
2020
 
 
 
 
 
 
 
April 1, 2020 through July 31, 2020 (closed)
 
250,000

 
$
2.50

 
$
2.00


On April 14, 2020, EOG entered into natural gas collar contracts for the period August 1, 2020 through October 31, 2020, with notional volumes of 250,000 MMBtud at a ceiling price of $2.50 per MMBtu and a floor price of $2.00 per MMBtu. These contracts offset the remaining natural gas collar contracts for the same time period with notional volumes of 250,000 MMBtud at a ceiling price of $2.50 per MMBtu and a floor price of $2.00 per MMBtu. EOG expects to receive net cash of $1.1 million for the settlement of these contracts. The offsetting contracts were excluded from the above table.    

Prices received by EOG for its natural gas production generally vary from NYMEX Henry Hub prices due to adjustments for delivery location (basis) and other factors. EOG has entered into natural gas basis swap contracts in order to fix the differential between pricing in the Rocky Mountain area and NYMEX Henry Hub prices (Rockies Differential). Presented below is a comprehensive summary of EOG's Rockies Differential basis swap contracts through May 5, 2020. The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts.

 
Rockies Differential Basis Swap Contracts
 
 
 
Volume (MMBtud)
 
Weighted Average Price Differential
 ($/MMBtu)
 
 
 
2020
 
 
 
 
 
January 1, 2020 through May 31, 2020 (closed)
 
30,000

 
$
0.55

 
June 1, 2020 through December 31, 2020
 
30,000

 
0.55

    





EOG has also entered into natural gas basis swap contracts in order to fix the differential between pricing at the Houston Ship Channel (HSC) and NYMEX Henry Hub prices (HSC Differential). On March 27, 2020, EOG executed the early termination provision granting EOG the right to terminate certain 2020 HSC Differential basis swaps with notional volumes of 60,000 MMBtud at a weighted average price differential of $0.05 per MMBtu for the period April 1, 2020 through December 31, 2020. The net cash EOG paid for settling these contracts was $0.4 million. Presented below is a comprehensive summary of EOG's HSC Differential basis swap contracts through May 5, 2020. The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts.

 
HSC Differential Basis Swap Contracts
 
 
 
Volume (MMBtud)
 
Weighted Average Price Differential
 ($/MMBtu)
 
 
 
2020
 
 
 
 
 
January 1, 2020 through December 31, 2020 (closed)
 
60,000

 
$
0.05


EOG has also entered into natural gas basis swap contracts in order to fix the differential between pricing at the Waha Hub in West Texas and NYMEX Henry Hub prices (Waha Differential). Presented below is a comprehensive summary of EOG's Waha Differential basis swap contracts through May 5, 2020. The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts.

 
Waha Differential Basis Swap Contracts
 
 
 
Volume (MMBtud)
 
Weighted Average Price Differential
 ($/MMBtu)
 
 
 
2020
 
 
 
 
 
January 1, 2020 through April 30, 2020 (closed)
 
50,000

 
$
1.40


In April 2020, EOG entered into Waha Differential basis swap contracts for the period from May 1, 2020 through December 31, 2020, with notional volumes of 50,000 MMBtud at a weighted average price differential of $0.43 per MMBtu. These contracts offset the remaining Waha Differential basis swap contracts for the same time period with notional volumes of 50,000 MMBtud at a weighted average price differential of $1.40 MMBtu. EOG expects to pay net cash of $11.9 million for the settlement of these contracts. The offsetting contracts were excluded from the above table.


Definitions
Bbld
 
Barrels per day
$/Bbl
 
Dollars per barrel
MMBtud
 
Million British thermal units per day
$/MMBtu
 
Dollars per million British thermal units
NYMEX
 
U.S. New York Mercantile Exchange
WTI
 
West Texas Intermediate






EOG RESOURCES, INC.
Direct After-Tax Rate of Return (ATROR)
 
The calculation of our direct after-tax rate of return (ATROR) with respect to our capital expenditure program for a particular play or well is based on the estimated recoverable reserves ("net" to EOG’s interest) for all wells in such play or such well (as the case may be), the estimated net present value (NPV) of the future net cash flows from such reserves (for which we utilize certain assumptions regarding future commodity prices and operating costs) and our direct net costs incurred in drilling or acquiring (as the case may be) such wells or well (as the case may be). As such, our direct ATROR with respect to our capital expenditures for a particular play or well cannot be calculated from our consolidated financial statements.
 
Direct ATROR
Based on Cash Flow and Time Value of Money
  - Estimated future commodity prices and operating costs
  - Costs incurred to drill, complete and equip a well, including facilities
Excludes Indirect Capital
  - Gathering and Processing and other Midstream
  - Land, Seismic, Geological and Geophysical
 
Payback ~12 Months on 100% Direct ATROR Wells
First Five Years ~1/2 Estimated Ultimate Recovery Produced but ~3/4 of NPV Captured
 
 
Return on Equity / Return on Capital Employed
Based on GAAP Accrual Accounting
Includes All Indirect Capital and Growth Capital for Infrastructure
  - Eagle Ford, Bakken, Permian Facilities
  - Gathering and Processing
Includes Legacy Gas Capital and Capital from Mature Wells






EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense, Adjusted Net Income,
Net Debt and Total Capitalization
Calculations of Return on Capital Employed and Return on Equity
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
The following chart reconciles Net Interest Expense (GAAP), Net Income (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Adjusted Net Income (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) and Return on Equity (ROE) calculations. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Adjusted Net Income, Net Debt and Total Capitalization (Non-GAAP) in their ROCE and ROE calculations. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
 
2019
 
2018
 
2017
Return on Capital Employed (ROCE) (Non-GAAP)
 
 
 
 
 
Net Interest Expense (GAAP)
$
185

 
$
245

 
 
Tax Benefit Imputed (based on 21%)
(39
)
 
(51
)
 
 
After-Tax Net Interest Expense (Non-GAAP) - (a)
$
146

 
$
194

 

 
 
 
 
 
 
Net Income (GAAP) - (b)
$
2,735

 
$
3,419

 
 
Adjustments to Net Income, Net of Tax (See Accompanying Schedule)
158

(1)
(201
)
(2)
 
Adjusted Net Income (Non-GAAP) - (c)
$
2,893

 
$
3,218

 

 
 
 
 
 
 
Total Stockholders' Equity - (d)
$
21,641

 
$
19,364

 
$
16,283

 
 
 
 
 
 
Average Total Stockholders' Equity * - (e)
$
20,503

 
$
17,824

 
 
 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (f)
$
5,175

 
$
6,083

 
$
6,387

Less: Cash
(2,028
)
 
(1,556
)
 
(834
)
Net Debt (Non-GAAP) - (g)
$
3,147

 
$
4,527

 
$
5,553

 
 
 
 
 
 
Total Capitalization (GAAP) - (d) + (f)
$
26,816

 
$
25,447

 
$
22,670

 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (d) + (g)
$
24,788

 
$
23,891

 
$
21,836

 
 
 
 
 
 
Average Total Capitalization (Non-GAAP) * - (h)
$
24,340

 
$
22,864

 
 
 
 
 
 
 
 
ROCE (GAAP Net Income) - [(a) + (b)] / (h)
11.8
%
 
15.8
%
 
 
 
 
 
 
 
 
ROCE (Non-GAAP Adjusted Net Income) - [(a) + (c)] / (h)
12.5
%
 
14.9
%
 
 
 
 
 
 
 
 
Return on Equity (ROE)
 
 
 
 
 
 
 
 
 
 
 
ROE (GAAP Net Income) - (b) / (e)
13.3
%
 
19.2
%
 
 
 
 
 
 
 
 
ROE (Non-GAAP Adjusted Net Income) - (c) / (e)
14.1
%
 
18.1
%
 
 
 
 
 
 
 
 
* Average for the current and immediately preceding year
 
 
 
 
 
 






Adjustments to Net Income (GAAP)

(1) See below schedule for detail of adjustments to Net Income (GAAP) in 2019:
 
 
Year Ended December 31, 2019
 
 
Before
Tax
 
Income Tax Impact
 
After
Tax
Adjustments:
 
 
 
 
 
Add:
Mark-to-Market Commodity Derivative Contracts Impact
$
51

 
$
(11
)
 
$
40

Add:
Impairments of Certain Assets
275

 
(60
)
 
215

Less:
Net Gains on Asset Dispositions
(124
)
 
27

 
(97
)
Total
 
$
202

 
$
(44
)
 
$
158


(2) See below schedule for detail of adjustments to Net Income (GAAP) in 2018:
 
 
Year Ended December 31, 2018
 
 
Before
Tax
 
Income Tax Impact
 
After
Tax
Adjustments:
 
 
 
 
 
Add:
Mark-to-Market Commodity Derivative Contracts Impact
$
(93
)
 
$
20

 
$
(73
)
Add:
Impairments of Certain Assets
153

 
(34
)
 
119

Less:
Net Gains on Asset Dispositions
(175
)
 
38

 
(137
)
Less:
Tax Reform Impact

 
(110
)
 
(110
)
Total
 
$
(115
)
 
$
(86
)
 
$
(201
)












EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense,
Net Debt and Total Capitalization
Calculation of Return on Capital Employed
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
 
2017
 
2016
 
2015
 
2014
 
2013
Return on Capital Employed (ROCE) (Non-GAAP) (Calculated Using GAAP Net Income)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense (GAAP)
$
274

 
$
282

 
$
237

 
$
201

 
$
235

Tax Benefit Imputed (based on 35%)
(96
)
 
(99
)
 
(83
)
 
(70
)
 
(82
)
After-Tax Net Interest Expense (Non-GAAP) - (a)
$
178

 
$
183

 
$
154

 
$
131

 
$
153

 
 
 
 
 
 
 
 
 
 
Net Income (Loss) (GAAP) - (b)
$
2,583

 
$
(1,097
)
 
$
(4,525
)
 
$
2,915

 
$
2,197

 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity - (d)
$
16,283

 
$
13,982

 
$
12,943

 
$
17,713

 
$
15,418

 
 
 
 
 
 
 
 
 
 
Average Total Stockholders' Equity* - (e)
$
15,133

 
$
13,463

 
$
15,328

 
$
16,566

 
$
14,352

 
 
 
 
 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (f)
$
6,387

 
$
6,986

 
$
6,655

 
$
5,906

 
$
5,909

Less: Cash
(834
)
 
(1,600
)
 
(719
)
 
(2,087
)
 
(1,318
)
Net Debt (Non-GAAP) - (g)
$
5,553

 
$
5,386

 
$
5,936

 
$
3,819

 
$
4,591

 
 
 
 
 
 
 
 
 
 
Total Capitalization (GAAP) - (d) + (f)
$
22,670

 
$
20,968

 
$
19,598

 
$
23,619

 
$
21,327

 
 
 
 
 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (d) + (g)
$
21,836

 
$
19,368

 
$
18,879

 
$
21,532

 
$
20,009

 
 
 
 
 
 
 
 
 
 
Average Total Capitalization (Non-GAAP)* - (h)
$
20,602

 
$
19,124

 
$
20,206

 
$
20,771

 
$
19,365

 
 
 
 
 
 
 
 
 
 
ROCE (GAAP Net Income) - [(a) + (b)] / (h)
13.4
%
 
-4.8
 %
 
-21.6
 %
 
14.7
%
 
12.1
%
 
 
 
 
 
 
 
 
 
 
Return on Equity (ROE) (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE (GAAP Net Income) - (b) / (e)
17.1
%
 
-8.1
 %
 
-29.5
 %
 
17.6
%
 
15.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Average for the current and immediately preceding year
 
 
 
 
 
 
 
 
 






EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense,
Net Debt and Total Capitalization
Calculation of Return on Capital Employed
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
 
2012
 
2011
 
2010
 
2009
 
2008
Return on Capital Employed (ROCE) (Non-GAAP) (Calculated Using GAAP Net Income)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense (GAAP)
$
214

 
$
210

 
$
130

 
$
101

 
$
52

Tax Benefit Imputed (based on 35%)
(75
)
 
(74
)
 
(46
)
 
(35
)
 
(18
)
After-Tax Net Interest Expense (Non-GAAP) - (a)
$
139

 
$
136

 
$
84

 
$
66

 
$
34

 
 
 
 
 
 
 
 
 
 
Net Income (Loss) (GAAP) - (b)
$
570

 
$
1,091

 
$
161

 
$
547

 
$
2,437

 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity - (d)
$
13,285

 
$
12,641

 
$
10,232

 
$
9,998

 
$
9,015

 
 
 
 
 
 
 
 
 
 
Average Total Stockholders' Equity* - (e)
$
12,963

 
$
11,437

 
$
10,115

 
$
9,507

 
$
8,003

 
 
 
 
 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (f)
$
6,312

 
$
5,009

 
$
5,223

 
$
2,797

 
$
1,897

Less: Cash
(876
)
 
(616
)
 
(789
)
 
(686
)
 
(331
)
Net Debt (Non-GAAP) - (g)
$
5,436

 
$
4,393

 
$
4,434

 
$
2,111

 
$
1,566

 
 
 
 
 
 
 
 
 
 
Total Capitalization (GAAP) - (d) + (f)
$
19,597

 
$
17,650

 
$
15,455

 
$
12,795

 
$
10,912

 
 
 
 
 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (d) + (g)
$
18,721

 
$
17,034

 
$
14,666

 
$
12,109

 
$
10,581

 
 
 
 
 
 
 
 
 
 
Average Total Capitalization (Non-GAAP)* - (h)
$
17,878

 
$
15,850

 
$
13,388

 
$
11,345

 
$
9,351

 
 
 
 
 
 
 
 
 
 
ROCE (GAAP Net Income) - [(a) + (b)] / (h)
4.0
%
 
7.7
%
 
1.8
%
 
5.4
%
 
26.4
%
 
 
 
 
 
 
 
 
 
 
Return on Equity (ROE) (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE (GAAP Net Income) - (b) / (e)
4.4
%
 
9.5
%
 
1.6
%
 
5.8
%
 
30.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Average for the current and immediately preceding year
 
 
 
 
 
 
 
 
 






EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense,
Net Debt and Total Capitalization
Calculation of Return on Capital Employed
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
 
2007
 
2006
 
2005
 
2004
 
2003
Return on Capital Employed (ROCE) (Non-GAAP) (Calculated Using GAAP Net Income)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense (GAAP)
$
47

 
$
43

 
$
63

 
$
63

 
$
59

Tax Benefit Imputed (based on 35%)
(16
)
 
(15
)
 
(22
)
 
(22
)
 
(21
)
After-Tax Net Interest Expense (Non-GAAP) - (a)
$
31

 
$
28

 
$
41

 
$
41

 
$
38

 
 
 
 
 
 
 
 
 
 
Net Income (Loss) (GAAP) - (b)
$
1,090

 
$
1,300

 
$
1,260

 
$
625

 
$
430

 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity - (d)
$
6,990

 
$
5,600

 
$
4,316

 
$
2,945

 
$
2,223

 
 
 
 
 
 
 
 
 
 
Average Total Stockholders' Equity* - (e)
$
6,295

 
$
4,958

 
$
3,631

 
$
2,584

 
$
1,948

 
 
 
 
 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (f)
$
1,185

 
$
733

 
$
985

 
$
1,078

 
$
1,109

Less: Cash
(54
)
 
(218
)
 
(644
)
 
(21
)
 
(4
)
Net Debt (Non-GAAP) - (g)
$
1,131

 
$
515

 
$
341

 
$
1,057

 
$
1,105

 
 
 
 
 
 
 
 
 
 
Total Capitalization (GAAP) - (d) + (f)
$
8,175

 
$
6,333

 
$
5,301

 
$
4,023

 
$
3,332

 
 
 
 
 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (d) + (g)
$
8,121

 
$
6,115

 
$
4,657

 
$
4,002

 
$
3,328

 
 
 
 
 
 
 
 
 
 
Average Total Capitalization (Non-GAAP)* - (h)
$
7,118

 
$
5,386

 
$
4,330

 
$
3,665

 
$
3,068

 
 
 
 
 
 
 
 
 
 
ROCE (GAAP Net Income) - [(a) + (b)] / (h)
15.7
%
 
24.7
%
 
30.0
%
 
18.2
%
 
15.3
%
 
 
 
 
 
 
 
 
 
 
Return on Equity (ROE) (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE (GAAP Net Income) - (b) / (e)
17.3
%
 
26.2
%
 
34.7
%
 
24.2
%
 
22.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Average for the current and immediately preceding year
 
 
 
 
 
 
 
 
 





EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense,
Net Debt and Total Capitalization
Calculation of Return on Capital Employed
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
 
 
 
 
The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
 
2002
 
2001
 
2000
 
1999
 
1998
Return on Capital Employed (ROCE) (Non-GAAP) (Calculated Using GAAP Net Income)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense (GAAP)
$
60

 
$
45

 
$
61

 
$
62

 
 
Tax Benefit Imputed (based on 35%)
(21
)
 
(16
)
 
(21
)
 
(22
)
 
 
After-Tax Net Interest Expense (Non-GAAP) - (a)
$
39

 
$
29

 
$
40

 
$
40

 

 
 
 
 
 
 
 
 
 
 
Net Income (Loss) (GAAP) - (b)
$
87

 
$
399

 
$
397

 
$
569

 
 
 
 
 
 
 
 
 
 
 
 
Total Stockholders' Equity - (d)
$
1,672

 
$
1,643

 
$
1,381

 
$
1,130

 
$
1,280

 
 
 
 
 
 
 
 
 
 
Average Total Stockholders' Equity* - (e)
$
1,658

 
$
1,512

 
$
1,256

 
$
1,205

 
 
 
 
 
 
 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (f)
$
1,145

 
$
856

 
$
859

 
$
990

 
$
1,143

Less: Cash
(10
)
 
(3
)
 
(20
)
 
(25
)
 
(6
)
Net Debt (Non-GAAP) - (g)
$
1,135

 
$
853

 
$
839

 
$
965

 
$
1,137

 
 
 
 
 
 
 
 
 
 
Total Capitalization (GAAP) - (d) + (f)
$
2,817

 
$
2,499

 
$
2,240

 
$
2,120

 
$
2,423

 
 
 
 
 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (d) + (g)
$
2,807

 
$
2,496

 
$
2,220

 
$
2,095

 
$
2,417

 
 
 
 
 
 
 
 
 
 
Average Total Capitalization (Non-GAAP)* - (h)
$
2,652

 
$
2,358

 
$
2,158

 
$
2,256

 
 
 
 
 
 
 
 
 
 
 
 
ROCE (GAAP Net Income) - [(a) + (b)] / (h)
4.8
%
 
18.2
%
 
20.2
%
 
27.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Return on Equity (ROE) (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ROE (GAAP Net Income) - (b) / (e)
5.2
%
 
26.4
%
 
31.6
%
 
47.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Average for the current and immediately preceding year
 
 
 
 
 
 
 
 
 






EOG RESOURCES, INC.
Cash Operating Expenses per Barrell of Oil Equivalent (Boe)
Unaudited; in thousands, except per Boe amounts)
 
 
 
 
 
 
 
1st Quarter
 
 
2020
 
2019
 
 
 
 
 
 
Cash Operating Expenses (GAAP)*
 
 
 
 
Lease and Well
$
329,659

 
$
336,291

 
Transportation Costs
208,296

 
176,522

 
General and Administrative
114,273

 
106,672

 
Cash Operating Expenses
652,228

 
619,485

 
Less: Non-GAAP Adjustments

 

 
Adjusted Cash Operating Expenses (Non-GAAP) - (a)
$
652,228

 
$
619,485

 
 
 
 
 
 
Volume - Thousand Barrels of Oil Equivalent - (b)
79,548

 
69,623

 
 
 
 
 
 
Adjusted Cash Operating Expenses Per Boe (Non-GAAP) - (a) / (b)
$
8.20

(c)
$
8.90

(d)
 
 
 
 
 
Adjusted Cash Operating Expenses Per Boe (Non-GAAP) - Percentage Decrease
 
 
 
 
1Q20 compared to 1Q19 - [(c) - (d)] / (d)
-8
 %
 
 
 
 
 
 
 
 
*Includes stock compensation expense and other non-cash items.
 
 
 
 









EOG RESOURCES, INC.
Cash Operating Expenses per Barrel of Oil Equivalent (Boe)
(Unaudited; in thousands, except per Boe amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2019
 
 
2019
 
2018
 
2017
 
2016
 
2015
 
2014
 
Cash Operating Expenses (GAAP)*
 
 
 
 
 
 
 
 
 
 
 
 
Lease and Well
$
1,366,993

 
$
1,282,678

 
$
1,044,847

 
$
927,452

 
$
1,182,282

 
$
1,416,413

 
Transportation Costs
758,300

 
746,876

 
740,352

 
764,106

 
849,319

 
972,176

 
General and Administrative
489,397

 
426,969

 
434,467

 
394,815

 
366,594

 
402,010

 
Cash Operating Expenses
2,614,690

 
2,456,523

 
2,219,666

 
2,086,373

 
2,398,195

 
2,790,599

 
Less: Legal Settlement - Early Leasehold Termination

 

 
(10,202
)
 

 
(19,355
)
 

 
Less: Voluntary Retirement Expense

 

 

 
(42,054
)
 

 

 
Less: Acquisition Costs - Yates Transaction

 

 

 
(5,100
)
 

 

 
Less: Joint Venture Transaction Costs

 

 
(3,056
)
 

 

 

 
Less: Joint Interest Billings Deemed Uncollectible

 

 
(4,528
)
 

 

 

 
Adjusted Cash Operating Expenses (Non-GAAP) - (a)
$
2,614,690

 
$
2,456,523

 
$
2,201,880

 
$
2,039,219

 
$
2,378,840

 
$
2,790,599

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Volume - Thousand Barrels of Oil Equivalent - (b)
298,565

 
262,516

 
222,251

 
204,929

 
208,862

 
217,073

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Cash Operating Expenses Per Boe (Non-GAAP) - (a) / (b)
$
8.76

(c)
$
9.36

(d)
$
9.91

(e)
$
9.95

(f)
$
11.39

(g)
$
12.86

(h)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Cash Operating Expenses Per Boe (Non-GAAP) - Percentage Decrease
 
 
 
 
 
 
 
 
 
 
 
 
2019 compared to 2018 - [(c) - (d)] / (d)
-6
 %
 
 
 
 
 
 
 
 
 
 
 
2019 compared to 2017 - [(c) - (e)] / (e)
-12
 %
 
 
 
 
 
 
 
 
 
 
 
2019 compared to 2016 - [(c) - (f)] / (f)
-12
 %
 
 
 
 
 
 
 
 
 
 
 
2019 compared to 2015 - [(c) - (g)] / (g)
-23
 %
 
 
 
 
 
 
 
 
 
 
 
2019 compared to 2014 - [(c) - (h)] / (h)
-32
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Includes stock compensation expense and other non-cash items.
 






EOG RESOURCES, INC.
Cost per Barrel of Oil Equivalent (Boe)
(Unaudited; in thousands, except per Boe amounts)
 
 
Three Months Ended
 
March 31, 2020
 
 
Volume - Thousand Barrels of Oil Equivalent - (a)
79,548

 
 
Crude Oil and Condensate
$
2,065,498

Natural Gas Liquids
160,535

Natural Gas
209,764

Total Wellhead Revenues - (b)
$
2,435,797

 
 
Operating Costs
 
Lease and Well
$
329,659

Transportation Costs
208,296

Gathering and Processing Costs
128,482

General and Administrative
114,273

Taxes Other Than Income
157,360

Interest Expense, Net
44,690

Total Cash Operating Cost (excluding DD&A and Total Exploration Costs) - (c)
$
982,760

 
 
Depreciation, Depletion and Amortization (DD&A)
1,000,060

Total Operating Cost (excluding Total Exploration Costs) - (d)
$
1,982,820

 
 
Exploration Costs
$
39,677

Dry Hole Costs
372

Impairments
1,572,935

Total Exploration Costs
1,612,984

Less: Certain Impairments (Non-GAAP)
(1,516,316
)
Total Exploration Costs (Non-GAAP)
$
96,668

 
 
Total Operating Cost (Non-GAAP) (including Total Exploration Costs) - (e)
$
2,079,488

 
 
Composite Average Wellhead Revenue per Boe - (b) / (a)
$
30.62

 
 
Total Cash Operating Cost per Boe (excluding DD&A and Total Exploration Costs) - (c) / (a)
$
12.36

 
 
Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(b) / (a) - (c) / (a)]
$
18.26

 
 
Total Operating Cost per Boe (excluding Total Exploration Costs) - (d) / (a)
$
24.93

 
 
Composite Average Margin per Boe (excluding Total Exploration Costs) - [(b) / (a) - (d) / (a)]
$
5.69

 
 
Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) - (e) / (a)
$
26.15

 
 
Composite Average Margin per Boe (Non-GAAP) (including Total Exploration Costs) - [(b) / (a) - (e) / (a)]
$
4.47






EOG RESOURCES, INC.
Cost per Barrel of Oil Equivalent (Boe)
(Unaudited; in thousands, except per Boe amounts)
 
 
Year Ended
December 31,
 
2019
 
2018
 
2017
 
 
 
 
 
 
Volume - Thousand Barrels of Oil Equivalent - (a)
298,565

 
262,516

 
222,251

 
 
 
 
 
 
Crude Oil and Condensate
$
9,612,532

 
$
9,517,440

 
$
6,256,396

Natural Gas Liquids
784,818

 
1,127,510

 
729,561

Natural Gas
1,184,095

 
1,301,537

 
921,934

Total Wellhead Revenues - (b)
$
11,581,445

 
$
11,946,487

 
$
7,907,891

 
 
 
 
 
 
Operating Costs
 
 
 
 
 
Lease and Well
$
1,366,993

 
$
1,282,678

 
$
1,044,847

Transportation Costs
758,300

 
746,876

 
740,352

Gathering and Processing Costs
479,102

 
436,973

 
148,775

 
 
 
 
 
 
General and Administrative
489,397

 
426,969

 
434,467

Less: Legal Settlement - Early Leasehold Termination

 

 
(10,202
)
Less: Joint Venture Transaction Costs

 

 
(3,056
)
Less: Joint Interest Billings Deemed Uncollectible

 

 
(4,528
)
General and Administrative (Non-GAAP)
489,397

 
426,969

 
416,681

 
 
 
 
 
 
Taxes Other Than Income
800,164

 
772,481

 
544,662

Interest Expense, Net
185,129

 
245,052

 
274,372

Total Cash Operating Cost (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (c)
$
4,079,085

 
$
3,911,029

 
$
3,169,689

 
 
 
 
 
 
Depreciation, Depletion and Amortization (DD&A)
3,749,704

 
3,435,408

 
3,409,387

Total Operating Cost (Non-GAAP) (excluding Total Exploration Costs) - (d)
$
7,828,789

 
$
7,346,437

 
$
6,579,076

 
 
 
 
 
 
Exploration Costs
$
139,881

 
$
148,999

 
$
145,342

Dry Hole Costs
28,001

 
5,405

 
4,609

Impairments
517,896

 
347,021

 
479,240

Total Exploration Costs
685,778

 
501,425

 
629,191

Less: Certain Impairments (Non-GAAP)
(274,974
)
 
(152,671
)
 
(261,452
)
Total Exploration Costs (Non-GAAP)
$
410,804

 
$
348,754

 
$
367,739

 
 
 
 
 
 
Total Operating Cost (Non-GAAP) (including Total Exploration Costs) - (e)
$
8,239,593

 
$
7,695,191

 
$
6,946,815

 
 
 
 
 
 





EOG RESOURCES, INC.
Cost per Barrel of Oil Equivalent (Boe)
(Unaudited; in thousands, except per Boe amounts)
 
 
Year Ended
December 31,
 
2019
 
2018
 
2017
 
 
 
 
 
 
Composite Average Wellhead Revenue per Boe - (b) / (a)
$
38.79

 
$
45.51

 
$
35.58

 
 
 
 
 
 
Total Cash Operating Cost per Boe (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (c) / (a)
$
13.66

 
$
14.90

 
$
14.25

 
 
 
 
 
 
Composite Average Margin per Boe (Non-GAAP) (excluding DD&A and Total Exploration Costs) - [(b) / (a) - (c) / (a)]
$
25.13

 
$
30.61

 
$
21.33

 
 
 
 
 
 
Total Operating Cost per Boe (Non-GAAP) (excluding Total Exploration Costs) -
(d) / (a)
$
26.22

 
$
27.99

 
$
29.59

 
 
 
 
 
 
Composite Average Margin per Boe (Non-GAAP) (excluding Total Exploration Costs) - [(b) / (a) - (d) / (a)]
$
12.57

 
$
17.52

 
$
5.99

 
 
 
 
 
 
Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) -
(e) / (a)
$
27.60

 
$
29.32

 
$
31.24

 
 
 
 
 
 
Composite Average Margin per Boe (Non-GAAP) (including Total Exploration Costs) - [(b) / (a) - (e) / (a)]
$
11.19

 
$
16.19

 
$
4.34







EOG RESOURCES, INC.
Cost per Barrel of Oil Equivalent (Boe)
(Unaudited; in thousands, except per Boe amounts)
 
 
Year Ended
December 31,
 
2016
 
2015
 
2014
 
 
 
 
 
 
Volume - Thousand Barrels of Oil Equivalent - (a)
204,929

 
208,862

 
217,073

 
 
 
 
 
 
Crude Oil and Condensate
$
4,317,341

 
$
4,934,562

 
$
9,742,480

Natural Gas Liquids
437,250

 
407,658

 
934,051

Natural Gas
742,152

 
1,061,038

 
1,916,386

Total Wellhead Revenues - (b)
$
5,496,743

 
$
6,403,258

 
$
12,592,917

 
 
 
 
 
 
Operating Costs
 
 
 
 
 
Lease and Well
$
927,452

 
$
1,182,282

 
$
1,416,413

Transportation Costs
764,106

 
849,319

 
972,176

Gathering and Processing Costs
122,901

 
146,156

 
145,800

 
 
 
 
 
 
General and Administrative
394,815

 
366,594

 
402,010

Less: Voluntary Retirement Expense
(42,054
)
 

 

Less: Acquisition Costs
(5,100
)
 

 

Less: Legal Settlement - Early Leasehold Termination

 
(19,355
)
 

General and Administrative (Non-GAAP)
347,661

 
347,239

 
402,010

 
 
 
 
 
 
Taxes Other Than Income
349,710

 
421,744

 
757,564

Interest Expense, Net
281,681

 
237,393

 
201,458

Total Cash Operating Cost (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (c)
$
2,793,511

 
$
3,184,133

 
$
3,895,421

 
 
 
 
 
 
Depreciation, Depletion and Amortization (DD&A)
3,553,417

 
3,313,644

 
3,997,041

Total Operating Cost (Non-GAAP) (excluding Total Exploration Costs) - (d)
$
6,346,928

 
$
6,497,777

 
$
7,892,462

 
 
 
 
 
 
Exploration Costs
$
124,953

 
$
149,494

 
$
184,388

Dry Hole Costs
10,657

 
14,746

 
48,490

Impairments
620,267

 
6,613,546

 
743,575

Total Exploration Costs
755,877

 
6,777,786

 
976,453

Less: Certain Impairments (Non-GAAP)
(320,617
)
 
(6,307,593
)
 
(824,312
)
Total Exploration Costs (Non-GAAP)
$
435,260

 
$
470,193

 
$
152,141

 
 
 
 
 
 
Total Operating Cost (Non-GAAP) (including Total Exploration Costs) - (e)
$
6,782,188

 
$
6,967,970

 
$
8,044,603

 
 
 
 
 
 





EOG RESOURCES, INC.
Cost per Barrel of Oil Equivalent (Boe)
(Unaudited; in thousands, except per Boe amounts)
 
 
Year Ended
December 31,
 
2016
 
2015
 
2014
 
 
 
 
 
 
Composite Average Wellhead Revenue per Boe - (b) / (a)
$
26.82

 
$
30.66

 
$
58.01

 
 
 
 
 
 
Total Cash Operating Cost per Boe (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (c) / (a)
$
13.64

 
$
15.25

 
$
17.95

 
 
 
 
 
 
Composite Average Margin per Boe (Non-GAAP) (excluding DD&A and Total Exploration Costs) - [(b) / (a) - (c) / (a)]
$
13.18

 
$
15.41

 
$
40.06

 
 
 
 
 
 
Total Operating Cost per Boe (Non-GAAP) (excluding Total Exploration Costs) -
(d) / (a)
$
30.98

 
$
31.11

 
$
36.38

 
 
 
 
 
 
Composite Average Margin per Boe (Non-GAAP) (excluding Total Exploration Costs) - [(b) / (a) - (d) / (a)]
$
(4.16
)
 
$
(0.45
)
 
$
21.63

 
 
 
 
 
 
Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) -
(e) / (a)
$
33.10

 
$
33.36

 
$
37.08

 
 
 
 
 
 
Composite Average Margin per Boe (Non-GAAP) (including Total Exploration Costs) - [(b) / (a) - (e) / (a)]
$
(6.28
)
 
$
(2.70
)
 
$
20.93







EOG RESOURCES, INC.
Second Quarter and Full Year 2020 Forecast and Benchmark Commodity Pricing
 
(a) Second Quarter and Full Year 2020 Forecast
 
The forecast items for the second quarter and full year 2020 set forth below 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.
 
(b) Capital Expenditures
 
The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Exploration Costs, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs and any Non-Cash Transactions.
 
(c) Benchmark Commodity Pricing
 
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.
 
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.
 
 
 
Estimated Ranges
(Unaudited)
 
 
2Q 2020
 
 
Full Year 2020
Daily Sales Volumes
 
 
 
 
 
 
 
 
 
 
 
Crude Oil and Condensate Volumes (MBbld)
 
 
 
 
 
 
 
 
 
 
 
United States
 
300.0

-
 
320.0

 
 
376.0

-
 
402.0

Trinidad
 
0.2

-
 
0.6

 
 
0.5

-
 
0.7

Other International
 
0.0

-
 
0.2

 
 
0.0

-
 
0.2

Total
 
300.2

-
 
320.8

 
 
376.5

-
 
402.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Liquids Volumes (MBbld)
 
 
 
 
 
 
 
 
 
 
 
Total
 
85.0

-
 
95.0

 
 
105.0

-
 
125.0

 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Volumes (MMcfd)
 
 
 
 
 
 
 
 
 
 
 
United States
 
870

-
 
930

 
 
950

-
 
1,050

Trinidad
 
160

-
 
180

 
 
170

-
 
190

Other International
 
20

-
 
30

 
 
20

-
 
30

Total
 
1,050

-
 
1,140

 
 
1,140

-
 
1,270

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Equivalent Volumes (MBoed)
 
 
 
 
 
 
 
 
 
 
 
United States
 
530.0

-
 
570.0

 
 
639.3

-
 
702.0

Trinidad
 
26.9

-
 
30.6

 
 
28.8

-
 
32.4

Other International
 
3.3

-
 
5.2

 
 
3.3

-
 
5.2

Total
 
560.2

-
 
605.8

 
 
671.4

-
 
739.6

 
Capital Expenditures ($MM)
$
600

-
$
700

 
$
3,300

-
$
3,700

 





 
Estimated Ranges
(Unaudited)
 
2Q 2020
 
Full Year 2020
Operating Costs
 
 
 
 
 
 
 
 
 
 
 
Unit Costs ($/Boe)
 
 
 
 
 
 
 
 
 
 
 
Lease and Well
$
4.65

-
$
5.15

 
$
4.20

-
$
4.80

Transportation Costs
$
3.00

-
$
3.40

 
$
2.60

-
$
3.20

Gathering and Processing
$
2.15

 
$
2.35

 
$
1.80

 
$
2.10

Depreciation, Depletion and Amortization
$
12.10

 
$
12.60

 
$
11.85

 
$
12.85

General and Administrative
$
2.40

-
$
2.50

 
$
1.90

-
$
2.10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses ($MM)
 
 
 
 
 
 
 
 
 
 
 
Exploration and Dry Hole
$
32

-
$
42

 
$
130

-
$
170

Impairment
$
75

 
$
85

 
$
300

 
$
340

Capitalized Interest
$
5

-
$
9

 
$
27

-
$
33

Net Interest
$
51

-
$
55

 
$
200

-
$
205

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxes Other Than Income (% of Wellhead Revenue)
 
9.0
%
-
 
11.0
%
 
 
7.0
%
-
 
8.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes
 
 
 
 
 
 
 
 
 
 
 
Effective Rate
 
19
%
-
 
24
%
 
 
17
%
-
 
22
%
Current Tax (Benefit) / Expense ($MM)
$
(5
)
-
$
35

 
$
(110
)
-
$
(70
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pricing - (Refer to Benchmark Commodity Pricing in text)
 
 
 
 
 
 
 
 
 
 
 
Crude Oil and Condensate ($/Bbl)
 
 
 
 
 
 
 
 
 
 
 
Differentials
 
 
 
 
 
 
 
 
 
 
 
United States - above (below) WTI
$
(7.75
)
-
$
(2.75
)
 
$
(0.40
)
-
$
1.60

Trinidad - above (below) WTI
$
(12.00
)
-
$
(10.00
)
 
$
(12.00
)
-
$
(10.00
)
Other International - above (below) WTI
$
26.50

-
$
32.50

 
$
7.00

-
$
12.00

 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Liquids
 
 
 
 
 
 
 
 
 
 
 
Realizations as % of WTI
 
38
%
-
 
48
%
 
 
30
%
-
 
36
%
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas ($/Mcf)
 
 
 
 
 
 
 
 
 
 
 
Differentials
 
 
 
 
 
 
 
 
 
 
 
United States - above (below) NYMEX Henry Hub
$
(0.85
)
-
$
(0.45
)
 
$
(0.85
)
-
$
(0.25
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realizations
 
 
 
 
 
 
 
 
 
 
 
Trinidad
$
2.90

-
$
3.50

 
$
2.60

-
$
3.30

Other International
$
5.00

-
$
5.50

 
$
4.45

-
$
5.45

 
Definitions
 
 
 
 
 
 
 
 
 
 
 
$/Bbl
 
U.S. Dollars per barrel
 
 
 
 
 
 
 
 
 
 
 
$/Boe
 
U.S. Dollars per barrel of oil equivalent
 
 
 
 
 
 
 
 
 
 
 
$/Mcf
 
U.S. Dollars per thousand cubic feet
 
 
 
 
 
 
 
 
 
 
 
$MM
 
U.S. Dollars in millions
 
 
 
 
 
 
 
 
 
 
 
MBbld
 
Thousand barrels per day
 
 
 
 
 
 
 
 
 
 
 
MBoed
 
Thousand barrels of oil equivalent per day
 
 
 
 
 
 
 
 
 
 
 
MMcfd
 
Million cubic feet per day
 
 
 
 
 
 
 
 
 
 
 
NYMEX
 
U.S. New York Mercantile Exchange
 
 
 
 
 
 
 
 
 
 
 
WTI
 
West Texas Intermediate
 
 
 
 
 
 
 
 
 
 
 




v3.20.1
DEI Document and Entity Information
May 07, 2020
Cover [Abstract]  
City Area Code 713
Local Phone Number 651-7000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000821189
Title of 12(b) Security Common Stock, par value $0.01 per share
Entity Incorporation, State or Country Code DE
Document Type 8-K
Document Period End Date May 07, 2020
Entity File Number 1-9743
Entity Tax Identification Number 47-0684736
Trading Symbol EOG
Security Exchange Name NYSE
Amendment Flag false
Entity Registrant Name EOG RESOURCES, INC.
Entity Address, Address Line One 1111 Bagby
Entity Address, Address Line Two Sky Lobby 2
Entity Address, City or Town Houston
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77002


This regulatory filing also includes additional resources:
eog8kpressrelease050720.pdf
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