0000821189false00008211892021-08-042021-08-04


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): August 4, 2021

_______________

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 August 4, 2021, EOG Resources, Inc. issued a press release announcing second quarter 2021 financial and operational results and third quarter and full year 2021 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 second quarter 2021 financial and operational results attached hereto as Exhibit 99.1 is third quarter and full year 2021 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: August 4, 2021 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

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Table of Contents
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Second Quarter 2021
Supplemental Financial and Operating Data Page
Income Statements
Wellhead Volumes and Prices
Balance Sheets
Cash Flows Statements
Non-GAAP Financial Measures
Adjusted Net Income (Loss)
Adjusted Net Income Per Share
Discretionary Cash Flow and Free Cash Flow
Total Expenditures
EBITDAX and Adjusted EBITDAX
Net Debt-to-Total Capitalization Ratio
Reserve Replacement Cost Data
Financial Commodity Derivative Contracts
Direct After-Tax Rate of Return
ROCE & ROE
Revenues, Costs and Margins Per Barrel of Oil Equivalent






Income Statements
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In millions of USD, except share data (in millions) and per share data (Unaudited)
2Q 2021 1Q 2021 2Q 2020 YTD 2021 YTD 2020
Operating Revenues and Other
Crude Oil and Condensate 2,699  2,251  615  4,950  2,680 
Natural Gas Liquids 367  314  93  681  254 
Natural Gas 404  625  141  1,029  351 
Gains (Losses) on Mark-to-Market Commodity Derivative Contracts (427) (367) (127) (794) 1,079 
Gathering, Processing and Marketing 1,022  848  362  1,870  1,401 
Gains (Losses) on Asset Dispositions, Net 51  (6) 14  45  30 
Other, Net 23  29  52  26 
Total 4,139  3,694  1,103  7,833  5,821 
Operating Expenses
Lease and Well 270  270  245  540  575 
Transportation Costs 214  202  152  416  360 
Gathering and Processing Costs 128  139  97  267  225 
Exploration Costs 35  33  27  68  67 
Dry Hole Costs 13  11  —  24  — 
Impairments 44  44  305  88  1,878 
Marketing Costs 991  838  444  1,829  1,554 
Depreciation, Depletion and Amortization 914  900  707  1,814  1,707 
General and Administrative 120  110  132  230  246 
Taxes Other Than Income 239  215  81  454  238 
Total 2,968  2,762  2,190  5,730  6,850 
Operating Income (Loss) 1,171  932  (1,087) 2,103  (1,029)
Other Income (Expense), Net (2) (4) (4) (6) 14 
Income (Loss) Before Interest Expense and Income Taxes 1,169  928  (1,091) 2,097  (1,015)
Interest Expense, Net 45  47  54  92  99 
Income (Loss) Before Income Taxes 1,124  881  (1,145) 2,005  (1,114)
Income Tax Provision (Benefit) 217  204  (235) 421  (214)
Net Income (Loss) 907  677  (910) 1,584  (900)
Dividends Declared per Common Share 1.4125  0.4125  0.3750  1.8250  0.7500 
Net Income (Loss) Per Share
Basic 1.56  1.17  (1.57) 2.73  (1.55)
Diluted 1.55  1.16  (1.57) 2.72  (1.55)
Average Number of Common Shares
Basic 580  580  579  580  579 
Diluted 584  583  579  583  579 
12


Wellhead Volumes and Prices
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(Unaudited)
2Q 2021 2Q2020 % Change 1Q 2021 YTD 2021 YTD 2020 % Change
Crude Oil and Condensate Volumes (MBbld) (A)
United States 446.9  330.9  35  % 428.7  437.8  406.8  %
Trinidad 1.7  0.1  1,600  % 2.2  2.0  0.3  567  %
Other International (B)
—  0.1  -100  % 0.1  —  0.1  -100  %
Total 448.6  331.1  35  % 431.0  439.8  407.2  8  %
Average Crude Oil and Condensate Prices ($/Bbl) (C)
United States 66.16  20.40  224  % 58.07  62.22  36.17  72  %
Trinidad 56.26  0.60  9,290  % 49.77  52.57  27.75  89  %
Other International (B)
55.56  48.78  14  % 38.61  42.36  53.41  -21  %
Composite 66.12  20.40  224  % 58.02  62.18  36.16  72  %
Natural Gas Liquids Volumes (MBbld) (A)
United States 138.5  101.2  37  % 124.3  131.5  131.2  %
Total 138.5  101.2  37  % 124.3  131.5  131.2  0  %
Average Natural Gas Liquids Prices ($/Bbl) (C)
United States 29.15  10.20  186  % 28.03  28.62  10.65  169  %
Composite 29.15  10.20  186  % 28.03  28.62  10.65  169  %
Natural Gas Volumes (MMcfd) (A)
United States 1,199  939  28  % 1,100  1,150  1,039  11  %
Trinidad 233  174  34  % 217  225  188  20  %
Other International (B)
13  34  -62  % 25  19  35  -46  %
Total 1,445  1,147  26  % 1,342  1,394  1,262  10  %
Average Natural Gas Prices ($/Mcf) (C)
United States 2.99  1.11  170  % 5.52  4.19  1.32  217  %
Trinidad 3.37  2.13  58  % 3.38  3.37  2.15  57  %
Other International (B)
5.69  4.36  31  % 5.66  5.67  4.34  31  %
Composite 3.07  1.36  126  % 5.17  4.08  1.53  167  %
Crude Oil Equivalent Volumes (MBoed) (D)
United States 785.2  588.5  33  % 736.4  761.0  711.1  %
Trinidad 40.6  29.2  39  % 38.5  39.5  31.6  25  %
Other International (B)
2.2  5.7  -61  % 4.0  3.1  6.1  -49  %
Total 828.0  623.4  33  % 778.9  803.6  748.8  7  %
Total MMBoe (D)
75.3  56.7  33  % 70.1  145.4  136.3  7  %
(A) Thousand barrels per day or million cubic feet per day, as applicable.
(B) Other International includes EOG's China and Canada operations. The China operations were sold in the second quarter of 2021.
(C) Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021).
(D) Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, NGLs and natural gas. Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas. MMBoe is calculated by multiplying the MBoed amount by the number of days in the period and then dividing that amount by one thousand.
13


Balance Sheets
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In millions of USD, except share data (Unaudited)
June 30, December 31,
2021 2020
Current Assets
Cash and Cash Equivalents 3,880  3,329 
Accounts Receivable, Net 2,015  1,522 
Inventories 516  629 
Assets from Price Risk Management Activities —  65 
Income Taxes Receivable 11  23 
Other 513  294 
Total 6,935  5,862 
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method) 66,299  64,793 
Other Property, Plant and Equipment 4,635  4,479 
Total Property, Plant and Equipment 70,934  69,272 
Less: Accumulated Depreciation, Depletion and Amortization (42,275) (40,673)
Total Property, Plant and Equipment, Net 28,659  28,599 
Deferred Income Taxes 3  2 
Other Assets 1,288  1,342 
Total Assets 36,885  35,805 
Current Liabilities
Accounts Payable 2,012  1,681 
Accrued Taxes Payable 286  206 
Dividends Payable 820  217 
Liabilities from Price Risk Management Activities 396  — 
Current Portion of Long-Term Debt 39  781 
Current Portion of Operating Lease Liabilities 253  295 
Other 196  280 
Total 4,002  3,460 
Long-Term Debt 5,086  5,035 
Other Liabilities 2,186  2,149 
Deferred Income Taxes 4,730  4,859 
Commitments and Contingencies
Stockholders' Equity
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 584,102,233 Shares Issued at June 30, 2021 and 583,694,850 Shares Issued at December 31, 2020 206  206 
Additional Paid in Capital 6,017  5,945 
Accumulated Other Comprehensive Loss (15) (12)
Retained Earnings 14,689  14,170 
Common Stock Held in Treasury, 243,058 Shares at June 30, 2021 and 124,265 Shares at December 31, 2020 (16) (7)
Total Stockholders' Equity 20,881  20,302 
Total Liabilities and Stockholders' Equity 36,885  35,805 


14


Cash Flows Statements
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In millions of USD (Unaudited)
2Q 2021 2Q 2020 1Q 2021 YTD 2021 YTD 2020
Cash Flows from Operating Activities
Reconciliation of Net Income (Loss) to Net Cash Provided by Operating Activities:
Net Income (Loss) 907  (910) 677  1,584  (900)
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization 914  707  900  1,814  1,707 
Impairments 44  305  44  88  1,878 
Stock-Based Compensation Expenses 31  40  35  66  80 
Deferred Income Taxes (97) (253) (36) (133) (208)
(Gains) Losses on Asset Dispositions, Net (51) (14) (45) (30)
Other, Net 13  — 
Dry Hole Costs 13  —  11  24  — 
Mark-to-Market Commodity Derivative Contracts
Total (Gains) Losses 427  127  367  794  (1,079)
Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts (193) 640  (30) (223) 724 
Other, Net —  —  — 
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable (186) 469  (308) (494) 1,191 
Inventories 37  (18) 64  101  85 
Accounts Payable 11  (1,619) 172  183  (1,185)
Accrued Taxes Payable (163) (6) 243  80  (61)
Other Assets (119) 195  (103) (222) 253 
Other Liabilities 32  (89) (57) (64)
Changes in Components of Working Capital Associated with Investing Activities (54) 414  (91) (145) 282 
Net Cash Provided by Operating Activities 1,559  88  1,870  3,429  2,673 
Investing Cash Flows
Additions to Oil and Gas Properties (968) (424) (875) (1,843) (1,990)
Additions to Other Property, Plant and Equipment (55) (24) (42) (97) (147)
Proceeds from Sales of Assets 141  17  146  43 
Changes in Components of Working Capital Associated with Investing Activities 54  (414) 91  145  (282)
Net Cash Used in Investing Activities (828) (845) (821) (1,649) (2,376)
Financing Cash Flows
Long-Term Debt Borrowings —  1,484  —  —  1,484 
Long-Term Debt Repayments —  (1,000) (750) (750) (1,000)
Dividends Paid (239) (217) (219) (458) (384)
Treasury Stock Purchased (2) —  (10) (12) (5)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan — 
Debt Issuance Costs —  (3) —  —  (3)
Repayment of Finance Lease Liabilities (9) (5) (9) (18) (8)
Net Cash Provided by (Used in) Financing Activities (241) 267  (988) (1,229) 92 
Effect of Exchange Rate Changes on Cash 2    (2)    
Increase (Decrease) in Cash and Cash Equivalents 492  (490) 59  551  389 
Cash and Cash Equivalents at Beginning of Period 3,388  2,907  3,329  3,329  2,028 
Cash and Cash Equivalents at End of Period 3,880  2,417  3,388  3,880  2,417 
15


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

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

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

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

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

In addition, because not all companies use identical calculations, EOG’s presentation of non-GAAP measures may not be comparable to, and may be calculated differently from, similarly titled measures disclosed by other companies, including its peer companies. EOG may also change the calculation of one or more of its non-GAAP measures from time to time – for example, to account for changes in its business and operations or to more closely conform to peer company or industry analysts’ practices.
16


Adjusted Net Income (Loss)
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In millions of USD, except share data (in millions) and per share data (Unaudited)
The following tables adjust the reported Net Income (Loss) (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions, to add back impairment charges related to certain of EOG's assets (which are generally (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets) - see "Revenues, Costs and Margins Per Barrel of Oil Equivalent" below for additional related discussion) and to make certain other adjustments to exclude non-recurring and certain other items as further described below. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
2Q 2021
Before
Tax
Income Tax Impact After
Tax
Diluted Earnings per Share
Reported Net Income (GAAP) 1,124  (217) 907  1.55 
Adjustments:
Losses on Mark-to-Market Commodity Derivative Contracts 427  (93) 334  0.58 
Net Cash Payments for Settlements of Commodity Derivative Contracts (193) 42  (151) (0.26)
Less: Gains on Asset Dispositions, Net (51) 17  (34) (0.06)
Add: Certain Impairments —  — 
Less: Tax Benefits Related to Exiting Canada Operations —  (45) (45) (0.08)
Adjustments to Net Income 184  (79) 105  0.18 
Adjusted Net Income (Non-GAAP) 1,308  (296) 1,012  1.73 
Average Number of Common Shares (GAAP)
Basic 580 
Diluted 584 
Average Number of Common Shares (Non-GAAP)
Basic 580 
Diluted 584 



17


Adjusted Net Income (Loss)
(Continued)
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In millions of USD, except share data (in millions) and per share data (Unaudited)
2Q 2020
Before
Tax
Income Tax Impact After
Tax
Diluted Earnings per Share
Reported Net Loss (GAAP) (1,145) 235  (910) (1.57)
Adjustments:
Losses on Mark-to-Market Commodity Derivative Contracts 127  (29) 98  0.17 
Net Cash Received from Settlements of Commodity Derivative Contracts 640  (141) 499  0.86 
Less: Gains on Asset Dispositions, Net (14) (10) (0.02)
Add: Certain Impairments 239  (47) 192  0.33 
Adjustments to Net Loss 992  (213) 779  1.34 
Adjusted Net Loss (Non-GAAP) (153) 22  (131) (0.23)
Average Number of Common Shares (GAAP)
Basic 579 
Diluted 579 
Average Number of Common Shares (Non-GAAP)
Basic 579 
Diluted 579 

18



Adjusted Net Income (Loss)
(Continued)
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In millions of USD, except share data (in millions) and per share data (Unaudited)
1Q 2021
Before
Tax
Income Tax Impact After
Tax
Diluted Earnings per Share
Reported Net Income (GAAP) 881  (204) 677  1.16 
Adjustments:
Losses on Mark-to-Market Commodity Derivative Contracts 367  (81) 286  0.49 
Net Cash Payments for Settlements of Commodity Derivative Contracts (30) (23) (0.04)
Add: Losses on Asset Dispositions, Net (1) 0.01 
Add: Certain Impairments —  — 
Adjustments to Net Income 344  (75) 269  0.46 
Adjusted Net Income (Non-GAAP) 1,225  (279) 946  1.62 
Average Number of Common Shares (GAAP)
Basic 580 
Diluted 583 
Average Number of Common Shares (Non-GAAP)
Basic 580 
Diluted 583 


19



Adjusted Net Income (Loss)
(Continued)
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In millions of USD, except share data (in millions) and per share data (Unaudited)
YTD 2021
Before
Tax
Income Tax Impact After
Tax
Diluted Earnings per Share
Reported Net Income (GAAP) 2,005  (421) 1,584  2.72 
Adjustments:
Losses on Mark-to-Market Commodity Derivative Contracts 794  (174) 620  1.07 
Net Cash Payments for Settlements of Commodity Derivative Contracts (223) 49  (174) (0.30)
Less: Gains on Asset Dispositions, Net (45) 16  (29) (0.05)
Add: Certain Impairments —  — 
Less: Tax Benefits Related to Exiting Canada Operations —  (45) (45) (0.08)
Adjustments to Net Income 528  (154) 374  0.64 
Adjusted Net Income (Non-GAAP) 2,533  (575) 1,958  3.36 
Average Number of Common Shares (GAAP)
Basic 580 
Diluted 583 
Average Number of Common Shares (Non-GAAP)
Basic 580 
Diluted 583 


20


Adjusted Net Income (Loss)
(Continued)
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In millions of USD, except share data (in millions) and per share data (Unaudited)
YTD 2020
Before
Tax
Income Tax Impact After
Tax
Diluted Earnings per Share
Reported Net Loss (GAAP) (1,114) 214  (900) (1.55)
Adjustments:
Gains on Mark-to-Market Commodity Derivative Contracts (1,079) 236  (843) (1.47)
Net Cash Received from Settlements of Commodity Derivative Contracts 724  (159) 565  0.98 
Less: Gains on Asset Dispositions, Net (30) (23) (0.04)
Add: Certain Impairments 1,755  (367) 1,388  2.40 
Adjustments to Net Loss 1,370  (283) 1,087  1.87 
Adjusted Net Income (Non-GAAP) 256  (69) 187  0.32 
Average Number of Common Shares (GAAP)
Basic 579 
Diluted 579 
Average Number of Common Shares (Non-GAAP)
Basic 579 
Diluted 580 
21


Adjusted Net Income Per Share
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In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
1Q 2021 Adjusted Net Income per Share (Non-GAAP) 1.62 
Realized Price
2Q 2021 Composite Average Wellhead Revenue per Boe 46.07 
Less: 1Q 2021 Composite Average Welhead Revenue per Boe (45.49)
Subtotal 0.58 
Multiplied by: 2Q 2021 Crude Oil Equivalent Volumes (MMBoe) 75.3 
Total Change in Revenue 44 
Less: Income Tax Benefit (Cost) Imputed (based on 23%) (10)
Change in Net Income 34 
Change in Diluted Earnings per Share 0.06 
Net Cash Received (Paid) from Settlements of Commodity Derivative Contracts
2Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative Contracts (193)
Less: Income Tax Benefit (Cost) 42 
After Tax - (a) (151)
1Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative Contracts (30)
Less: Income Tax Benefit (Cost)
After Tax - (b) (23)
Change in Net Income - (a) - (b) (128)
Change in Diluted Earnings per Share (0.22)
Wellhead Volumes
2Q 2021 Crude Oil Equivalent Volumes (MMBoe) 75.3 
Less: 1Q 2021 Crude Oil Equivalent Volumes (MMBoe) (70.1)
Subtotal 5.2 
Multiplied by: 2Q 2021 Composite Average Margin per Boe (Including Total
Exploration Costs) (Non-GAAP) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)
19.25 
Change in Revenue 101 
Less: Income Tax Benefit (Cost) Imputed (based on 23%) (23)
Change in Net Income 78 
Change in Diluted Earnings per Share 0.13 
Operating Cost per Boe
1Q 2021 Total Operating Cost per Boe (including Total Exploration Costs) (Non-GAAP) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule) 28.11 
Less: 2Q 2021 Total Operating Cost per Boe (including Total Exploration Costs) (Non-GAAP) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule) (26.82)
Subtotal 1.29 
Multiplied by: 2Q 2021 Crude Oil Equivalent Volumes (MMBoe) 75.3 
Change in Before-Tax Net Income 97 
Less: Income Tax Benefit (Cost) Imputed (based on 23%) (22)
Change in Net Income 75 
Change in Diluted Earnings per Share 0.13 
Other Items 0.01 
2Q 2021 Adjusted Net Income per Share (Non-GAAP) 1.73 
2Q 2021 Average Number of Common Shares (Non-GAAP) - Diluted 584 
22


Discretionary Cash Flow and Free Cash Flow
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In millions of USD (Unaudited)
The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow (Non-GAAP). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Exploration Costs (excluding Stock-Based Compensation Expenses), Changes in Components of Working Capital and Other Assets and Liabilities, Changes in Components of Working Capital Associated with Investing and Financing Activities and certain other adjustments to exclude non-recurring and certain other items as further described below. EOG defines Free Cash Flow (Non-GAAP) for a given period as Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures (before acquisitions) incurred (Non-GAAP) during such period, as is illustrated below. EOG management uses this information for comparative purposes within the industry.
2Q 2021 1Q 2021 2Q 2020 YTD 2021 YTD 2020
Net Cash Provided by Operating Activities (GAAP)
1,559  1,870  88  3,429  2,673 
Adjustments:
Exploration Costs (excluding Stock-Based Compensation Expenses)
29  28  21  57  53 
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable
186  308  (469) 494  (1,191)
Inventories
(37) (64) 18  (101) (85)
Accounts Payable
(11) (172) 1,619  (183) 1,185 
Accrued Taxes Payable
163  (243) (80) 61 
Other Assets
119  103  (195) 222  (253)
Other Liabilities
(32) 89  (2) 57  64 
Changes in Components of Working Capital Associated with Investing Activities 54  91  (414) 145  (282)
Other Non-Current Income Taxes - Net Receivable
—  —  —  —  113 
Discretionary Cash Flow (Non-GAAP) 2,030  2,010  672  4,040  2,338 
Discretionary Cash Flow (Non-GAAP) - Percentage Increase 202  % 73  %
Discretionary Cash Flow (Non-GAAP)
2,030  2,010  672  4,040  2,338 
Less:
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(972) (945) (478) (1,917) (2,163)
Free Cash Flow (Non-GAAP) 1,058  1,065  194  2,123  175 
23


(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP):
2Q 2021 1Q 2021 2Q 2020 YTD 2021 YTD 2020
Total Expenditures (GAAP)
1,089  1,067  534  2,156  2,360 
Less:
Asset Retirement Costs
(31) (17) (5) (48) (25)
Non-Cash Expenditures of Other Property, Plant and Equipment
—  —  —  —  — 
Non-Cash Acquisition Costs of Unproved Properties
—  (22) (24) (22) (48)
Non-Cash Finance Leases —  (74) (24) (74) (73)
Acquisition Costs of Proved Properties
(86) (9) (3) (95) (51)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)
972  945  478  1,917  2,163 

24



Discretionary Cash Flow and Free Cash Flow
(Continued)
eoglogostacked.jpg
In millions of USD (Unaudited)
FY 2020 FY 2019 FY 2018 FY 2017
Net Cash Provided by Operating Activities (GAAP)
5,008  8,163  7,769  4,265 
Adjustments:
Exploration Costs (excluding Stock-Based Compensation Expenses)
126  113  125  122 
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable
(467) 92  368  392 
Inventories
(123) (90) 395  175 
Accounts Payable
795  (169) (439) (324)
Accrued Taxes Payable
49  (40) 92  64 
Other Assets
(325) (358) 125  659 
Other Liabilities
(8) 57  (11) 90 
Changes in Components of Working Capital Associated with Investing and Financing Activities
(75) 115  (301) (90)
Other Non-Current Income Taxes - Net (Payable) Receivable
113  239  149  (513)
Discretionary Cash Flow (Non-GAAP) 5,093  8,122  8,272  4,840 
Discretionary Cash Flow (Non-GAAP) - Percentage Increase (Decrease)
-37  % -2  % 71  % 76  %
Discretionary Cash Flow (Non-GAAP)
5,093  8,122  8,272  4,840 
Less:
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(3,490) (6,234) (6,172) (4,228)
Free Cash Flow (Non-GAAP) 1,603  1,888  2,100  612 
(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP):
Total Expenditures (GAAP)
4,113  6,900  6,706  4,613 
Less:
Asset Retirement Costs
(117) (186) (70) (56)
Non-Cash Expenditures of Other Property, Plant and Equipment
—  (2) (1) — 
Non-Cash Acquisition Costs of Unproved Properties
(197) (98) (291) (256)
Non-Cash Finance Leases (174) —  (48) — 
Acquisition Costs of Proved Properties
(135) (380) (124) (73)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)
3,490  6,234  6,172  4,228 


25


Discretionary Cash Flow and Free Cash Flow
(Continued)
eoglogostacked.jpg
In millions of USD (Unaudited)
FY 2016 FY 2015 FY 2014 FY 2013 FY 2012
Net Cash Provided by Operating Activities (GAAP)
2,359  3,595  8,649  7,329  5,237 
Adjustments:
Exploration Costs (excluding Stock-Based Compensation Expenses)
104  124  158  134  158 
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable
233  (641) (85) 24  179 
Inventories
(171) (58) 162  (53) 157 
Accounts Payable
74  1,409  (544) (179) 17 
Accrued Taxes Payable
(93) (12) (16) (75) (78)
Other Assets
41  (118) 14  110  119 
Other Liabilities
16  66  (75) 20  (36)
Changes in Components of Working Capital Associated with Investing and Financing Activities
156  (500) 103  51  (74)
Excess Tax Benefits from Stock-Based Compensation
30  26  99  56  67 
Discretionary Cash Flow (Non-GAAP) 2,749  3,891  8,465  7,417  5,746 
Discretionary Cash Flow (Non-GAAP) - Percentage Increase (Decrease) -29  % -54  % 14  % 29  %
Discretionary Cash Flow (Non-GAAP)
2,749  3,891  8,465  7,417  5,746 
Less:
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(2,706) (4,682) (8,292) (7,102) (7,540)
Free Cash Flow (Non-GAAP) 43  (791) 173  315  (1,794)
(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP):
Total Expenditures (GAAP)
6,554  5,216  8,632  7,361  7,754 
Less:
Asset Retirement Costs
20  (53) (196) (134) (127)
Non-Cash Expenditures of Other Property, Plant and Equipment
(17) —  —  —  (66)
Non-Cash Acquisition Costs of Unproved Properties
(3,102) —  (5) (5) (20)
Acquisition Costs of Proved Properties
(749) (481) (139) (120) (1)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)
2,706  4,682  8,292  7,102  7,540 


26


Total Expenditures
eoglogostacked.jpg
In millions of USD (Unaudited)
2Q 2021 2Q 2020 FY 2020 FY 2019 FY 2018 FY 2017
Exploration and Development Drilling 711  381  2,664  4,951  4,935  3,132 
Facilities 105  31  347  629  625  575 
Leasehold Acquisitions 46  30  265  276  488  427 
Property Acquisitions 86  135  380  124  73 
Capitalized Interest 31  38  24  27 
Subtotal 955  453  3,442  6,274  6,196  4,234 
Exploration Costs 35  27  146  140  149  145 
Dry Hole Costs 13  —  13  28 
Exploration and Development Expenditures
1,003  480  3,601  6,442  6,350  4,384 
Asset Retirement Costs 31  117  186  70  56 
Total Exploration and Development Expenditures
1,034  485  3,718  6,628  6,420  4,440 
Other Property, Plant and Equipment 55  49  395  272  286  173 
Total Expenditures 1,089  534  4,113  6,900  6,706  4,613 

27


EBITDAX and Adjusted EBITDAX
eoglogostacked.jpg
In millions of USD (Unaudited)
The following table adjusts the reported Net Income (Loss) (GAAP) to Earnings Before Interest Expense, Net, Income Taxes (Income Tax Provision (Benefit)), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments (EBITDAX) (Non-GAAP) and further adjusts such amount to reflect actual Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts by eliminating the unrealized Mark-to-Market (MTM) (Gains) Losses from these transactions and to eliminate the (Gains) Losses on Asset Dispositions (Net). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Net Income (Loss) (GAAP) to add back Interest Expense (Net), Income Taxes (Income Tax Provision (Benefit)), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments and further adjust such amount to match realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
2Q 2021 2Q 2020 YTD 2021 YTD 2020
Net Income (Loss) (GAAP) 907  (910) 1,584  (900)
Adjustments:
Interest Expense, Net 45  54  92  99 
Income Tax Provision (Benefit) 217  (235) 421  (214)
Depreciation, Depletion and Amortization 914  707  1,814  1,707 
Exploration Costs 35  27  68  67 
Dry Hole Costs 13  —  24  — 
Impairments 44  305  88  1,878 
EBITDAX (Non-GAAP) 2,175  (52) 4,091  2,637 
(Gains) Losses on MTM Commodity Derivative Contracts
427  127  794  (1,079)
Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts (193) 640  (223) 724 
Gains on Asset Dispositions, Net (51) (14) (45) (30)
Adjusted EBITDAX (Non-GAAP) 2,358  701  4,617  2,252 
Adjusted EBITDAX (Non-GAAP) - Percentage Increase 236  % 105  %
Definitions
EBITDAX - Earnings Before Interest Expense, Net; Income Tax Provision (Benefit); Depreciation, Depletion and Amortization; Exploration Costs; Dry Hole Costs; and Impairments



28


Net Debt-to-Total Capitalization Ratio
eoglogostacked.jpg
In millions of USD, except ratio data (Unaudited)
The following tables reconcile Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation. A portion of the cash is associated with international subsidiaries; tax considerations may impact debt paydown. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt and Total Capitalization (Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation. EOG management uses this information for comparative purposes within the industry.
June 30,
2021
March 31,
2021
Total Stockholders' Equity - (a) 20,881  20,762 
Current and Long-Term Debt (GAAP) - (b) 5,125  5,133 
Less: Cash (3,880) (3,388)
Net Debt (Non-GAAP) - (c) 1,245  1,745 
Total Capitalization (GAAP) - (a) + (b) 26,006  25,895 
Total Capitalization (Non-GAAP) - (a) + (c) 22,126  22,507 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]
19.7  % 19.8  %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
5.6  % 7.8  %


29


Net Debt-to-Total Capitalization Ratio
(Continued)
eoglogostacked.jpg
In millions of USD, except ratio data (Unaudited)
December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
Total Stockholders' Equity - (a) 20,302  20,148  20,388  21,471 
Current and Long-Term Debt (GAAP) - (b) 5,816  5,721  5,724  5,222 
Less: Cash (3,329) (3,066) (2,417) (2,907)
Net Debt (Non-GAAP) - (c) 2,487  2,655  3,307  2,315 
Total Capitalization (GAAP) - (a) + (b) 26,118  25,869  26,112  26,693 
Total Capitalization (Non-GAAP) - (a) + (c) 22,789  22,803  23,695  23,786 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]
22.3  % 22.1  % 21.9  % 19.6  %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
10.9  % 11.6  % 14.0  % 9.7  %


30


Net Debt-to-Total Capitalization Ratio
(Continued)
eoglogostacked.jpg
In millions of USD, except ratio data (Unaudited)
December 31, 2019 September 30, 2019 June 30,
2019
March 31,
2019
Total Stockholders' Equity - (a) 21,641  21,124  20,630  19,904 
Current and Long-Term Debt (GAAP) - (b) 5,175  5,177  5,179  6,081 
Less: Cash (2,028) (1,583) (1,160) (1,136)
Net Debt (Non-GAAP) - (c) 3,147  3,594  4,019  4,945 
Total Capitalization (GAAP) - (a) + (b) 26,816  26,301  25,809  25,985 
Total Capitalization (Non-GAAP) - (a) + (c) 24,788  24,718  24,649  24,849 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]
19.3  % 19.7  % 20.1  % 23.4  %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
12.7  % 14.5  % 16.3  % 19.9  %


31


Net Debt-to-Total Capitalization Ratio
(Continued)
eoglogostacked.jpg
In millions of USD, except ratio data (Unaudited)
December 31,
2018
September 30,
2018
June 30,
2018
March 31,
2018
Total Stockholders' Equity - (a) 19,364  18,538  17,452  16,841 
Current and Long-Term Debt (GAAP) - (b) 6,083  6,435  6,435  6,435 
Less: Cash (1,556) (1,274) (1,008) (816)
Net Debt (Non-GAAP) - (c) 4,527  5,161  5,427  5,619 
Total Capitalization (GAAP) - (a) + (b) 25,447  24,973  23,887  23,276 
Total Capitalization (Non-GAAP) - (a) + (c) 23,891  23,699  22,879  22,460 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)] 23.9  % 25.8  % 26.9  % 27.6  %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)] 18.9  % 21.8  % 23.7  % 25.0  %

32


Net Debt-to-Total Capitalization Ratio
(Continued)
eoglogostacked.jpg
In millions of USD, except ratio data (Unaudited)
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017
Total Stockholders' Equity - (a) 16,283  13,922  13,902  13,928 
Current and Long-Term Debt (GAAP) - (b) 6,387  6,387  6,987  6,987 
Less: Cash (834) (846) (1,649) (1,547)
Net Debt (Non-GAAP) - (c) 5,553  5,541  5,338  5,440 
Total Capitalization (GAAP) - (a) + (b) 22,670  20,309  20,889  20,915 
Total Capitalization (Non-GAAP) - (a) + (c) 21,836  19,463  19,240  19,368 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)] 28.2  % 31.4  % 33.4  % 33.4  %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)] 25.4  % 28.5  % 27.7  % 28.1  %

33


Net Debt-to-Total Capitalization Ratio
(Continued)
eoglogostacked.jpg
In millions of USD, except ratio data (Unaudited)
December 31, 2016 September 30, 2016 June 30,
2016
March 31,
2016
December 31,
2015
Total Stockholders' Equity - (a) 13,982  11,798  12,057  12,405  12,943 
Current and Long-Term Debt (GAAP) - (b) 6,986  6,986  6,986  6,986  6,660 
Less: Cash (1,600) (1,049) (780) (668) (719)
Net Debt (Non-GAAP) - (c) 5,386  5,937  6,206  6,318  5,941 
Total Capitalization (GAAP) - (a) + (b) 20,968  18,784  19,043  19,391  19,603 
Total Capitalization (Non-GAAP) - (a) + (c) 19,368  17,735  18,263  18,723  18,884 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]
33.3  % 37.2  % 36.7  % 36.0  % 34.0  %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
27.8  % 33.5  % 34.0  % 33.7  % 31.5  %

34