HOUSTON, Nov. 6, 2019 /PRNewswire/ -- 

  • Exceeded Crude Oil Production Target Range and Raised Full-Year 2019 U.S. Crude Oil Growth Target from 14 to 15 Percent
  • Capital Expenditures Near Low End of Target Range
  • Generated Significant Net Cash From Operating Activities and Free Cash Flow
  • Reduced YTD Well Costs 5 Percent
  • Per-Unit Lease and Well and DD&A Expense Rates Below Low End of Target Ranges
  • Added 1,700 Net Premium Locations to Inventory Now Totaling 10,500 Locations and Representing Over 14 Years of Drilling Inventory
  • New Delaware Basin Wolfcamp M and Third Bone Spring Plays Add 1.6 BnBoe Net Resource Potential

EOG Resources, Inc. (EOG) today reported third quarter 2019 net income of $615 million, or $1.06 per share, compared with third quarter 2018 net income of $1.2 billion, or $2.05 per share. Net cash provided by operating activities for the third quarter 2019 was $2.1 billion.

Adjusted non-GAAP net income for the third quarter 2019 was $654 million, or $1.13 per share, compared with adjusted non-GAAP net income of $1.0 billion, or $1.75 per share, for the same prior year period. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.

Third Quarter 2019 Operating Review
Total crude oil volumes of 464,100 barrels of oil per day (Bopd) in the third quarter 2019 increased 12 percent compared to the same prior year period and were above the high end of the target range. Natural gas liquids (NGLs) and natural gas volumes each grew 11 percent. EOG incurred total expenditures of $1.6 billion in the third quarter. Cash capital expenditures before acquisitions of $1.5 billion were near the low end of the target range. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.

EOG continued to lower operating costs during the third quarter 2019. Per-unit transportation costs declined nine percent compared to the same prior-year period, depreciation, depletion and amortization expenses fell seven percent year-over-year, and lease and well expenses declined three percent year-over-year.

EOG generated $2.0 billion of discretionary cash flow in the third quarter 2019. After considering cash capital expenditures before acquisitions of $1.5 billion and dividend payments of $166 million, EOG generated free cash flow during the third quarter 2019 of $337 million. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures. 

"EOG's operating performance has never been better. The company generated outstanding financial results in the third quarter driven by improvements in every area," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "We reduced operating expenses, grew volumes at double-digit rates while lowering well costs and generated substantial free cash flow. EOG has never been in a better position to sustain this success long into the future."

New Delaware Basin Plays and Premium Inventory Update
EOG expanded its lineup of premium plays in the Delaware Basin with the addition of the Wolfcamp M and the Third Bone Spring. The drilling locations in these two plays are highly economic at a flat $40 oil price and flat $2.50 natural gas price, consistent with EOG's definition of premium inventory. The company continues to deepen its technical knowledge of the Delaware Basin as it executes its development program. EOG collects significant amounts of data on each well, integrates it with existing models and incorporates analysis from numerous spacing and targeting tests.

EOG has identified an initial 855 net premium drilling locations in the Wolfcamp M, with estimated net resource potential of 1.0 billion barrels of oil equivalent across its 193,000 net acre position. The wells in this deeper section of the Wolfcamp formation produce roughly equal parts oil, NGLs and natural gas. Benefiting from EOG's low well costs, Wolfcamp M wells deliver strong premium economics and exceptionally low finding costs.

To define the play, EOG has gathered extensive subsurface information and has completed six Wolfcamp M wells, including two during 2019. The Green Drake 16 Fed Com #759H was completed in Lea County, NM with a treated lateral length of 7,200 feet and a 30-day initial production rate of 4,165 barrels of oil equivalent per day (Boed), or 2,145 Bopd, 1,070 barrels per day (Bpd) of NGLs and 5.7 million cubic feet per day (MMcfd) of natural gas. In Reeves County, TX, the State Correa #3H was completed with a treated lateral length of 9,900 feet and a 30-day initial production rate of 2,800 Boed, or 1,175 Bopd, 845 Bpd of NGLs and 4.7 MMcfd of natural gas.

EOG has identified an initial 615 net premium drilling locations in the Third Bone Spring, with estimated net resource potential of 585 million barrels of oil equivalent across its 200,000 net acre position. EOG's early focus in the Delaware Basin has been on development of the Wolfcamp formation, which sits below the Third Bone Spring. Each of the Wolfcamp wells has drilled through the Third Bone Spring, providing significant technical data and helping to delineate multiple targets within the play.

EOG has completed over 50 Third Bone Spring wells to date, including 10 net wells in 2019. The McGregor D 5 #592H targeted the Third Bone Spring Carbonate and was completed in Loving County, TX with a treated lateral length of 9,700 feet and a 30-day initial production rate of 2,865 Boed, or 1,990 Bopd, 500 Bpd of NGLs and 2.3 MMcfd of natural gas. In Lea County, NM, the Caravan 28 State Com #601H and the Convoy 28 State Com #606H targeted the Third Bone Spring Sand and were completed with an average treated lateral length of 10,000 feet per well and average 30-day initial production rates per well of 3,985 Boed, or 2,730 Bopd, 670 Bpd of NGLs and 3.5 MMcfd of natural gas.

In total, EOG added 1,700 net premium drilling locations to its undrilled premium inventory in the third quarter 2019. Taking into account approximately 640 net wells drilled to date in 2019 and updated location counts across its portfolio, EOG's premium inventory now totals 10,500 net locations, representing more than 14 years of high-return drilling inventory.

"EOG is a returns-focused company where organic growth is driven by exploration and low-cost development. The announcement of two more premium plays in the Delaware Basin and the addition of 1,700 new net premium drilling locations demonstrate the sustainability of our unique business model," Thomas continued. "EOG continues to demonstrate its ability to generate attractive returns on capital through reinvestment in an improving inventory of premium wells across multiple plays. Our best-in-class assets prove that EOG can adapt to changing industry conditions and create significant shareholder value for years to come."

Financial Review
EOG further strengthened its financial position during the third quarter 2019. At September 30, 2019, EOG's total debt outstanding was $5.2 billion for a debt-to-total capitalization ratio of 20 percent. Considering $1.6 billion of cash on the balance sheet at the end of the third quarter, EOG's net debt was $3.6 billion for a net debt-to-total capitalization ratio of 15 percent. For a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

Third Quarter 2019 Results Webcast
Thursday, November 7, 2019, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG 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

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.  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 economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects;
  • ­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;
  • ­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 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;
  • ­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;
  • ­physical, electronic and cybersecurity breaches; and
  • ­the other factors described under ITEM 1A, Risk Factors, on pages 13 through 22 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 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, 2018, 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


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018













Operating Revenues and Other

$

4,303.5


$

4,781.6


$

13,059.7


$

12,700.9

Net Income 

$

615.1


$

1,191.0


$

2,098.4


$

2,526.3

Net Income Per Share 












        Basic

$

1.06


$

2.06


$

3.63


$

4.38

        Diluted

$

1.06


$

2.05


$

3.61


$

4.35

Average Number of Common Shares












        Basic


577.8



577.3



577.5



576.4

        Diluted


581.3



581.6



581.2



580.4

























Summary Income Statements

(Unaudited; in thousands, except per share data)














Three Months Ended


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018

Operating Revenues and Other








        Crude Oil and Condensate

$

2,418,989


$

2,655,278


$

7,148,258


$

7,134,114

        Natural Gas Liquids


164,736



353,704



569,748



861,473

        Natural Gas


269,625



311,713



874,489



912,324

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


85,902



(52,081)



242,622



(297,735)

        Gathering, Processing and Marketing


1,334,450



1,360,992



4,121,490



3,899,250

        Gains (Losses) on Asset Dispositions, Net


(523)



115,944



3,650



94,658

        Other, Net


30,276



36,074



99,470



96,779

               Total


4,303,455



4,781,624



13,059,727



12,700,863

Operating Expenses












        Lease and Well


348,883



321,568



1,032,455



936,236

        Transportation Costs


199,365



196,027



549,988



550,781

        Gathering and Processing Costs


127,549



114,063



351,487



324,577

        Exploration Costs


34,540



32,823



103,386



115,137

        Dry Hole Costs


24,138



358



28,001



5,260

        Impairments 


105,275



44,617



289,761



160,934

        Marketing Costs


1,343,293



1,326,974



4,114,265



3,853,827

        Depreciation, Depletion and Amortization


953,597



918,180



2,790,496



2,515,445

        General and Administrative


135,758



111,284



364,210



310,065

        Taxes Other Than Income


203,098



209,043



600,418



582,395

               Total


3,475,496



3,274,937



10,224,467



9,354,657













Operating Income 


827,959



1,506,687



2,835,260



3,346,206













Other Income (Expense), Net


9,118



3,308



23,233



(4,516)













Income Before Interest Expense and Income Taxes


837,077



1,509,995



2,858,493



3,341,690













Interest Expense, Net


39,620



63,632



144,434



189,032













Income Before Income Taxes


797,457



1,446,363



2,714,059



3,152,658













Income Tax Provision 


182,335



255,411



615,670



626,386













Net Income 

$

615,122


$

1,190,952


$

2,098,389


$

2,526,272













Dividends Declared per Common Share

$

0.2875


$

0.2200


$

0.7950


$

0.5900

 

EOG RESOURCES, INC.

Operating Highlights

(Unaudited)


















Three Months Ended




Nine Months Ended




September 30,




September 30,




2019


2018


% Change


2019


2018


% Change

Wellhead Volumes and Prices








Crude Oil and Condensate Volumes (MBbld) (A)








      United States


463.2



409.2


13%



451.2



382.9


18%

      Trinidad


0.8



0.8


0%



0.7



0.8


-13%

      Other International (B)


0.1



5.0


-98%



0.1



4.1


-98%

            Total


464.1



415.0


12%



452.0



387.8


17%

















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
















      United States

$

56.67


$

69.53


-18%


$

57.95


$

67.35


-14%

      Trinidad


48.36



61.71


-22%



47.26



58.91


-20%

      Other International (B)


59.87



72.81


-18%



58.43



71.83


-19%

            Composite


56.66



69.55


-19%



57.93



67.38


-14%

















Natural Gas Liquids Volumes (MBbld) (A)
















      United States


141.3



127.8


11%



130.8



113.9


15%

      Other International (B)


-



-





-



-



            Total


141.3



127.8


11%



130.8



113.9


15%

















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
















      United States

$

12.67


$

30.09


-58%


$

15.96


$

27.71


-42%

      Other International (B)


-



-





-



-



            Composite


12.67



30.09


-58%



15.96



27.71


-42%

















Natural Gas Volumes (MMcfd) (A)
















      United States


1,079



948


14%



1,043



905


15%

      Trinidad


260



260


0%



267



278


-4%

      Other International (B)


34



28


21%



36



31


16%

            Total


1,373



1,236


11%



1,346



1,214


11%

















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
















      United States

$

1.97


$

2.67


-26%


$

2.23


$

2.66


-16%

      Trinidad


2.52



2.88


-12%



2.71



2.91


-7%

      Other International (B)


4.25



3.83


11%



4.29



4.10


5%

            Composite


2.13



2.74


-22%



2.38



2.75


-14%

















Crude Oil Equivalent Volumes (MBoed) (D)
















      United States 


784.3



695.0


13%



755.8



647.6


17%

      Trinidad


44.1



44.1


0%



45.1



47.2


-4%

      Other International (B)


5.8



9.7


-40%



6.2



9.2


-33%

            Total


834.2



748.8


11%



807.1



704.0


15%

















Total MMBoe (D)


76.7



68.9


11%



220.3



192.2


15%


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

(B) Other International includes EOG's United Kingdom, China and Canada operations.  The United Kingdom operations were sold in the fourth quarter of 2018.

(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 fiscal quarter ended September 30, 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)















September 30,


December 31,




2019


2018

ASSETS




Current Assets








     Cash and Cash Equivalents



$

1,583,105


$

1,555,634

     Accounts Receivable, Net




1,927,996



1,915,215

     Inventories




778,120



859,359

     Assets from Price Risk Management Activities




122,627



23,806

     Income Taxes Receivable




135,680



427,909

     Other




272,203



275,467

            Total




4,819,731



5,057,390









Property, Plant and Equipment








     Oil and Gas Properties (Successful Efforts Method)




61,620,033



57,330,016

     Other Property, Plant and Equipment




4,394,486



4,220,665

            Total Property, Plant and Equipment




66,014,519



61,550,681

     Less:  Accumulated Depreciation, Depletion and Amortization




(35,810,197)



(33,475,162)

            Total Property, Plant and Equipment, Net




30,204,322



28,075,519

Deferred Income Taxes




1,998



777

Other Assets




1,516,218



800,788

Total Assets



$

36,542,269


$

33,934,474









LIABILITIES AND STOCKHOLDERS' EQUITY




Current Liabilities








     Accounts Payable



$

2,395,080


$

2,239,850

     Accrued Taxes Payable




302,774



214,726

     Dividends Payable




166,215



126,971

     Current Portion of Long-Term Debt




1,014,200



913,093

     Current Portion of Operating Lease Liabilities




384,348



-

     Other




211,096



233,724

            Total




4,473,713



3,728,364

















Long-Term Debt




4,163,115



5,170,169

Other Liabilities




1,858,357



1,258,355

Deferred Income Taxes




4,922,804



4,413,398

Commitments and Contingencies
















Stockholders' Equity








     Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 
        582,066,483 Shares Issued at September 30, 2019 and 580,408,117 
        Shares Issued at December 31, 2018 




205,821



205,804

     Additional Paid in Capital




5,769,073



5,658,794

     Accumulated Other Comprehensive Loss




(3,689)



(1,358)

     Retained Earnings




15,179,381



13,543,130

     Common Stock Held in Treasury, 289,903 Shares at September 30, 2019
        and 385,042 Shares at December 31, 2018




(26,306)



(42,182)

            Total Stockholders' Equity




21,124,280



19,364,188

Total Liabilities and Stockholders' Equity



$

36,542,269


$

33,934,474

 

EOG RESOURCES, INC.

Summary Statements of Cash Flows

(Unaudited; in thousands)














Three Months Ended


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018

Cash Flows from Operating Activities












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












     Net Income

$

615,122


$

1,190,952


$

2,098,389


$

2,526,272

     Items Not Requiring (Providing) Cash












            Depreciation, Depletion and Amortization


953,597



918,180



2,790,496



2,515,445

            Impairments 


105,275



44,617



289,761



160,934

            Stock-Based Compensation Expenses


54,670



49,001



132,323



116,290

            Deferred Income Taxes


184,282



334,116



508,576



681,702

            (Gains) Losses on Asset Dispositions, Net


523



(115,944)



(3,650)



(94,658)

            Other, Net


(1,284)



1,807



4,155



15,314

     Dry Hole Costs


24,138



358



28,001



5,260

     Mark-to-Market Commodity Derivative Contracts












            Total (Gains) Losses


(85,902)



52,081



(242,622)



297,735

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


108,418



(91,894)



139,708



(180,228)

     Other, Net


(424)



1,913



1,215



1,652

     Changes in Components of Working Capital and Other Assets and Liabilities












            Accounts Receivable


63,891



(243,778)



(5,855)



(553,529)

            Inventories


66,857



(94,598)



55,598



(286,817)

            Accounts Payable


7,400



81,548



134,253



537,525

            Accrued Taxes Payable


34,767



(59,426)



88,047



(36,891)

            Other Assets


(92,814)



(40,491)



394,573



(103,334)

            Other Liabilities


39,791



38,392



(18,315)



(14,776)

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


(16,643)



122,763



(38,677)



95,484

Net Cash Provided by Operating Activities


2,061,664



2,189,597



6,355,976



5,683,380













Investing Cash Flows












     Additions to Oil and Gas Properties


(1,420,385)



(1,591,646)



(4,866,882)



(4,571,932)

     Additions to Other Property, Plant and Equipment


(70,469)



(57,526)



(187,350)



(202,384)

     Proceeds from Sales of Assets


17,767



3,306



35,409



11,582

     Other Investing Activities


-



(19,993)



-



(19,993)

     Changes in Components of Working Capital Associated with Investing Activities


16,621



(122,791)



38,677



(95,541)

Net Cash Used in Investing Activities


(1,456,466)



(1,788,650)



(4,980,146)



(4,878,268)













Financing Cash Flows












     Long-Term Debt Repayments


-



-



(900,000)



-

     Dividends Paid


(166,170)



(107,465)



(420,851)



(311,075)

     Treasury Stock Purchased


(13,835)



(26,535)



(22,238)



(58,558)

     Proceeds from Stock Options Exercised and Employee Stock Purchase Plan 


863



953



9,558



12,098

     Debt Issuance Costs


(114)



-



(5,016)



-

     Repayment of Capital Lease Obligation


(3,235)



(1,698)



(9,638)



(5,052)

     Changes in Components of Working Capital Associated with Financing Activities


22



28



-



57

Net Cash Used in Financing Activities


(182,469)



(134,717)



(1,348,185)



(362,530)













Effect of Exchange Rate Changes on Cash


(109)



(313)



(174)



(2,678)













Increase in Cash and Cash Equivalents


422,620



265,917



27,471



439,904

Cash and Cash Equivalents at Beginning of Period


1,160,485



1,008,215



1,555,634



834,228

Cash and Cash Equivalents at End of Period

$

1,583,105


$

1,274,132


$

1,583,105


$

1,274,132

 

EOG RESOURCES, INC.

Third Quarter 2019 Well Results by Play

(Unaudited)
















Wells On Line




Initial Gross 30-Day Average Production Rate


Gross


Net


Lateral
Length (ft)


Crude Oil and
Condensate
(Bbld) (A)


Natural Gas
Liquids
(Bbld) (A)


 Natural Gas
(MMcfd) (A)


Crude Oil
Equivalent
(Boed) (B)

Delaware Basin














Wolfcamp

51


48


7,300


1,950


650


3.3


3,150

Bone Spring

24


21


5,900


1,600


350


1.9


2,300

Leonard

2


1


9,700


2,000


600


3.0


3,100















South Texas Eagle Ford

81


74


7,900


1,150


100


0.6


1,350















South Texas Austin Chalk

4


2


4,600


1,850


350


1.8


2,500















Powder River Basin














Turner / Parkman

7


6


9,800


800


200


3.3


1,550

Niobrara

1


1


10,200


1,250


250


4.0


2,200















DJ Basin Codell / Niobrara

5


4


9,700


800


50


0.4


900















Williston Basin Bakken/Three Forks

15


13


10,600


2,150


300


2.0


2,800















Anadarko Basin Woodford Oil Window

16


14


9,900


950


100


0.7


1,150


(A)  Barrels per day or million cubic feet per day, as applicable.

(B)  Barrels of oil equivalent per day; includes crude oil and condensate, natural gas liquids and natural gas.  Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or natural gas liquids to 6.0 thousand cubic feet of natural gas.

 

EOG RESOURCES, INC.

Reconciliation of Adjusted Net Income

(Unaudited; in thousands, except per share data)

































The following chart adjusts the three-month and nine-month periods ended September 30, 2019 and 2018 reported Net Income (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 in 2019 and 2018, to add back impairment charges related to certain of EOG's assets in 2019 and 2018 and to eliminate certain adjustments in 2018 related to the 2017 U.S. tax reform.  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 


September 30, 2019


September 30, 2018




















Income




Diluted




Income




Diluted


Before


Tax


After


Earnings


Before


Tax


After


Earnings


Tax


Impact


Tax


per Share


Tax


Impact


Tax


per Share

Reported Net Income (GAAP)

$   797,457


$(182,335)


$   615,122


$      1.06


$1,446,363


$(255,411)


$1,190,952


$      2.05

Adjustments:
















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

(85,902)


18,854


(67,048)


(0.12)


52,081


(11,472)


40,609


0.07

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

108,418


(23,796)


84,622


0.15


(91,894)


20,241


(71,653)


(0.12)

Add:  (Gains) Losses on Asset Dispositions, Net

523


(89)


434


-


(115,944)


28,934


(87,010)


(0.15)

Add:  Certain Impairments

27,215


(5,973)


21,242


0.04


-


-


-


-

Less:  Tax Reform Impact

-


-


-


-


-


(57,127)


(57,127)


(0.10)

Adjustments to Net Income 

50,254


(11,004)


39,250


0.07


(155,757)


(19,424)


(175,181)


(0.30)

















Adjusted Net Income (Non-GAAP)

$   847,711


$(193,339)


$   654,372


$      1.13


$1,290,606


$(274,835)


$1,015,771


$      1.75

















Average Number of Common Shares (GAAP)
















       Basic







577,839








577,254

       Diluted







581,271








581,559


































Nine Months Ended 


Nine Months Ended 


September 30, 2019


September 30, 2018




















Income




Diluted




Income




Diluted


Before


Tax


After


Earnings


Before


Tax


After


Earnings


Tax


Impact


Tax


per Share


Tax


Impact


Tax


per Share

Reported Net Income (GAAP)

$2,714,059


$(615,670)


$2,098,389


$      3.61


$3,152,658


$(626,386)


$2,526,272


$      4.35

Adjustments:
















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

(242,622)


53,251


(189,371)


(0.34)


297,735


(65,582)


232,153


0.40

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

139,708


(30,663)


109,045


0.19


(180,228)


39,699


(140,529)


(0.24)

Add:  (Gains) Losses on Asset Dispositions, Net

(3,650)


910


(2,740)


-


(94,658)


24,235


(70,423)


(0.12)

Add:  Certain Impairments

116,249


(25,514)


90,735


0.16


20,876


(4,598)


16,278


0.03

Less:  Tax Reform Impact

-


-


-


-


-


(63,651)


(63,651)


(0.11)

Adjustments to Net Income

9,685


(2,016)


7,669


0.01


43,725


(69,897)


(26,172)


(0.04)

















Adjusted Net Income (Non-GAAP)

$2,723,744


$(617,686)


$2,106,058


$      3.62


$3,196,383


$(696,283)


$2,500,100


$      4.31

















Average Number of Common Shares (GAAP)
















       Basic







577,498








576,431

       Diluted







581,190








580,442

 

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 and nine-month periods ended September 30, 2019 and 2018 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 (Payable), 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 and dividends paid (GAAP) during such period, as is illustrated below for the three months and nine months ended September 30, 2019 and 2018.  EOG management uses this information for comparative purposes within the industry.














Three Months Ended


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018













Net Cash Provided by Operating Activities (GAAP)

$

2,061,664


$

2,189,597


$

6,355,976


$

5,683,380













Adjustments:












Exploration Costs (excluding Stock-Based Compensation Expenses) 


29,374



27,032



85,250



96,716

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


33,855



(129,941)



179,537



62,421

Changes in Components of Working Capital and Other Assets












and Liabilities












Accounts Receivable


(63,891)



243,778



5,855



553,529

Inventories


(66,857)



94,598



(55,598)



286,817

Accounts Payable


(7,400)



(81,548)



(134,253)



(537,525)

Accrued Taxes Payable


(34,767)



59,426



(88,047)



36,891

Other Assets


92,814



40,491



(394,573)



103,334

Other Liabilities


(39,791)



(38,392)



18,315



14,776

Changes in Components of Working Capital Associated with 












Investing and Financing Activities


16,643



(122,763)



38,677



(95,484)













Discretionary Cash Flow (Non-GAAP)

$

2,021,644


$

2,282,278


$

6,011,139


$

6,204,855













Discretionary Cash Flow (Non-GAAP) - Percentage Decrease 


-11%






-3%




























Discretionary Cash Flow (Non-GAAP)

$

2,021,644


$

2,282,278


$

6,011,139


$

6,204,855

Less:  












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


(1,518,019)



(1,671,922)



(4,846,221)



(4,869,951)

Dividends Paid (GAAP) 


(166,170)



(107,465)



(420,851)



(311,075)

Free Cash Flow (Non-GAAP)

$

337,455


$

502,891


$

744,067


$

1,023,829

























(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Expenditures Excluding Acquisitions (Non-GAAP) for the three-months and nine-month periods ended September 30, 2019 and 2018:













Total Expenditures (GAAP)

$

1,629,343


$

1,828,348


$

5,394,389


$

5,201,921

Less:  












          Asset Retirement Costs


(90,970)



(10,834)



(151,551)



(41,789)

          Non-Cash Expenditures of Other Property, Plant and Equipment


-



(1,257)



(586)



(48,937)

          Non-Cash Acquisition Costs of Unproved Properties


(10,666)



(101,821)



(64,387)



(161,823)

          Acquisition Costs of Proved Properties


(9,688)



(42,514)



(331,644)



(79,421)

Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) 

$

1,518,019


$

1,671,922


$

4,846,221


$

4,869,951




EOG RESOURCES, INC.

Total Expenditures

(Unaudited; in millions)



Three Months Ended


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018









Exploration and Development Drilling

$1,173


$1,340


$3,865


$3,843

Facilities

161


178


499


518

Leasehold Acquisitions

56


159


201


331

Property Acquisitions

10


42


332


79

Capitalized Interest

10


7


28


18

       Subtotal

1,410


1,726


4,925


4,789

Exploration Costs

34


33


103


115

Dry Hole Costs

24


-


28


5

     Exploration and Development Expenditures

1,468


1,759


5,056


4,909

Asset Retirement Costs

91


11


151


42

     Total Exploration and Development Expenditures

1,559


1,770


5,207


4,951

Other Property, Plant and Equipment

70


58


187


251

     Total Expenditures

$1,629


$1,828


$5,394


$5,202




EOG RESOURCES, INC.

Reconciliation of Adjusted EBITDAX

(Unaudited; in thousands)













The following chart adjusts the three-month and nine-month periods ended September 30, 2019 and 2018 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 (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 (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


Nine Months Ended


September 30,


September 30,


2019


2018


2019


2018













Net Income (GAAP)

$

615,122


$

1,190,952


$

2,098,389


$

2,526,272













Adjustments:












     Interest Expense, Net


39,620



63,632



144,434



189,032

     Income Tax Provision


182,335



255,411



615,670



626,386

     Depreciation, Depletion and Amortization


953,597



918,180



2,790,496



2,515,445

     Exploration Costs


34,540



32,823



103,386



115,137

     Dry Hole Costs


24,138



358



28,001



5,260

     Impairments 


105,275



44,617



289,761



160,934

             EBITDAX (Non-GAAP)


1,954,627



2,505,973



6,070,137



6,138,466

     Total (Gains) Losses on MTM Commodity Derivative Contracts  


(85,902)



52,081



(242,622)



297,735

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


108,418



(91,894)



139,708



(180,228)

     (Gains) Losses on Asset Dispositions, Net


523



(115,944)



(3,650)



(94,658)













Adjusted EBITDAX (Non-GAAP)

$

1,977,666


$

2,350,216


$

5,963,573


$

6,161,315













Adjusted EBITDAX (Non-GAAP) - Percentage Decrease


-16%






-3%




 

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


At


At


September 30,


December 31,


September 30,


2019


2018


2018










Total Stockholders' Equity - (a)

$

21,124


$

19,364


$

18,538










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


5,177



6,083



6,435

Less: Cash 


(1,583)



(1,556)



(1,274)

Net Debt (Non-GAAP) - (c)


3,594



4,527



5,161










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

$

26,301


$

25,447


$

24,973










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

$

24,718


$

23,891


$

23,699










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


20%



24%



26%










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


15%



19%



22%

 

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.












2018


2017


2016


2015


2014






Total Costs Incurred in Exploration and Development Activities (GAAP)

$6,419.7


$4,439.4


$ 6,445.2


$4,928.3


$7,904.8

Less:  Asset Retirement Costs

(69.7)


(55.6)


19.9


(53.5)


(195.6)

          Non-Cash Acquisition Costs of Unproved Properties

(290.5)


(255.7)


(3,101.8)


-


-

          Acquisition Costs of Proved Properties

(123.7)


(72.6)


(749.0)


(480.6)


(139.1)

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

$5,935.8


$4,055.5


$ 2,614.3


$4,394.2


$7,570.1











Total Costs Incurred in Exploration and Development Activities (GAAP)

$6,419.7


$4,439.4


$ 6,445.2


$4,928.3


$7,904.8

Less:  Asset Retirement Costs

(69.7)


(55.6)


19.9


(53.5)


(195.6)

          Non-Cash Acquisition Costs of Unproved Properties

(290.5)


(255.7)


(3,101.8)


-


-

          Non-Cash Acquisition Costs of Proved Properties

(70.9)


(26.2)


(732.3)


-


-

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

$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)

34.8


154.0


(100.7)


(573.8)


52.2

Revisions Other Than Price

(39.5)


48.0


252.9


107.2


48.4

Purchases in Place

11.6


2.3


42.3


56.2


14.4

Extensions, Discoveries and Other Additions (d)

669.7


420.8


209.0


245.9


519.2

Total Proved Reserve Additions (e) 

676.6


625.1


403.5


(164.5)


634.2

Sales in Place

(10.8)


(20.7)


(167.6)


(3.5)


(36.3)

Net Proved Reserve Additions From All Sources (f) 

665.8


604.4


235.9


(168.0)


597.9











Production (g) 

265.0


224.4


207.1


211.2


219.1











RESERVE REPLACEMENT COSTS ($ / Boe)










Total Drilling, Before Revisions (a / d) 

$    8.86


$    9.64


$   12.51


$  17.87


$  14.58

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

$    8.85


$    6.56


$     6.52


$(29.63)


$  12.16

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

$    9.33


$    8.71


$     5.22


$  11.91


$  13.25

 

EOG RESOURCES, INC.

Crude Oil 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 West Texas Intermediate 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 pricing in Midland, Texas, and Cushing, Oklahoma (Midland Differential).  Presented below is a comprehensive summary of EOG's Midland Differential basis swap contracts through October 29, 2019.  The weighted average price differential expressed in $/Bbl represents the amount of reduction to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.









Midland Differential Basis Swap Contracts




Weighted




Average Price


Volume


Differential


(Bbld) 


($/Bbl) 

2019




January 1, 2019 through November 30, 2019 (closed)

20,000


$           1.075

December 2019 

20,000


1.075









EOG has also entered into crude oil basis swap contracts in order to fix the differential between pricing in the U.S. Gulf Coast and Cushing, Oklahoma (Gulf Coast Differential).  Presented below is a comprehensive summary of EOG's Gulf Coast Differential basis swap contracts through October 29, 2019.  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.









Gulf Coast Differential Basis Swap Contracts




Weighted




Average Price


Volume


Differential


(Bbld) 


($/Bbl) 

2019




January 1, 2019 through November 30, 2019 (closed)

13,000


$           5.572

December 2019 

13,000


5.572









Presented below is a comprehensive summary of EOG's crude oil price swap contracts through October 29, 2019, with notional volumes expressed in Bbld and prices expressed in $/Bbl.  









Crude Oil Price Swap Contracts




Weighted


Volume


Average Price


(Bbld) 


($/Bbl) 

2019




April 2019 (closed)

25,000


$           60.00

May 1, 2019 through September 30, 2019 (closed)

150,000


62.50

October 1, 2019 through December 31, 2019

150,000


62.50









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 October 29, 2019.  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




Weighted




Average Price


Volume


Differential


(MMBtud)


($/MMBtu)

2020




January 1, 2020 through December 31, 2020

30,000


$           0.549









Presented below is a comprehensive summary of EOG's natural gas price swap contracts through October 29, 2019, with notional volumes expressed in MMBtud and prices expressed in $/MMBtu.









Natural Gas Price Swap Contracts




Weighted


Volume


Average Price


(MMBtud)


($/MMBtu)

2019




April 1, 2019 through October 31, 2019 (closed)

250,000


$             2.90



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

 

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.












2018



2017




Return on Capital Employed (ROCE) (Non-GAAP)


















Net Interest Expense (GAAP)

$

245







Tax Benefit Imputed (based on 21%) 


(51)







After-Tax Net Interest Expense (Non-GAAP) - (a) 

$

194
















Net Income (GAAP) - (b)                                                   

$

3,419







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


(201)

(1)






Adjusted Net Income (Non-GAAP) - (c)   

$

3,218
















Total Stockholders' Equity - (d)   

$

19,364


$

16,283













Average Total Stockholders' Equity * - (e)   

$

17,824
















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

$

6,083


$

6,387




Less: Cash                                                       


(1,556)



(834)




Net Debt (Non-GAAP) - (g) 

$

4,527


$

5,553













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

$

25,447


$

22,670













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

$

23,891


$

21,836













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

$

22,864
















ROCE (GAAP Net Income) - [(a) + (b)] / (h)       


15.8%
















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


14.9%
















Return on Equity (ROE)


















ROE (GAAP Net Income) - (b) / (e)


19.2%
















ROE (Non-GAAP Adjusted Net Income) - (c) / (e)


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 2018:












Year Ended December 31, 2018



 Before 



 Income Tax  



 After 



 Tax 



 Impact 



 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 Barrel of Oil Equivalent (Boe)

(Unaudited; in thousands, except per Boe amounts)



























Three Months Ended


Nine Months Ended






September 30,


September 30,






2019


2018


2019


2018
















Cash Operating Expenses (GAAP)*












Lease and Well


$   348,883


$   321,568


$1,032,455


$   936,236




Transportation Costs


199,365


196,027


549,988


550,781




General and Administrative


135,758


111,284


364,210


310,065




     Cash Operating Expenses 


684,006


628,879


1,946,653


1,797,082




Less:  Non-GAAP Adjustments


-


-


-


-




     Adjusted Cash Operating Expenses (Non-GAAP) - (a)


$   684,006


$   628,879


$1,946,653


$1,797,082
















Volume - Thousand Barrels of Oil Equivalent - (b)


76,748


68,890


220,334


192,182
















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


$        8.92

(c)

$        9.13

(d)

$        8.84

(e)

$        9.35

(f)















Adjusted Cash Operating Expenses Per Boe (Non-GAAP) -
   Percentage Decrease












Three Months Ended September 30, 2019 compared to Three Months
Ended September 30, 2018 - [(c) - (d)] / (d)       


-2%










Nine Months Ended September 30, 2019 compared to Nine Months Ended
September 30, 2018 - [(e) - (f)] / (f)       


-6%






















* 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,




2018


2017


2016


2015


2014














Cash Operating Expenses (GAAP)*












Lease and Well


$1,282,678


$1,044,847


$   927,452


$1,182,282


$1,416,413


Transportation Costs


746,876


740,352


764,106


849,319


972,176


General and Administrative


426,969


434,467


394,815


366,594


402,010


     Cash Operating Expenses


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)


$2,456,523


$2,201,880


$2,039,219


$2,378,840


$2,790,599














Volume - Thousand Barrels of Oil Equivalent - (b)


262,516


222,251


204,929


208,862


217,073














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


$        9.36

(c)

$        9.91

(d)

$        9.95

(e)

$      11.39

(f)

$      12.86

(g)













Adjusted Cash Operating Expenses Per Boe (Non-GAAP) -
   Percentage Decrease












2018 compared to 2017 - [(c) - (d)] / (d)       


-6%










2018 compared to 2016 - [(c) - (e)] / (e)       


-6%










2018 compared to 2015 - [(c) - (f)] / (f)       


-18%










2018 compared to 2014 - [(c) - (g)] / (g)       


-27%






















* 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


Year-to-Date




March 31,


June 30,


September 30,


September 30,




2019


2019


2019


2019













Volume - Thousand Barrels of Oil Equivalent - (a)

69,623


73,964


76,748


220,334













     Crude Oil and Condensate

$    2,200,403


$  2,528,866


$     2,418,989


$     7,148,258



     Natural Gas Liquids

218,638


186,374


164,736


569,748



     Natural Gas

334,972


269,892


269,625


874,489



Total Wellhead Revenues - (b)

$    2,754,013


$  2,985,132


$     2,853,350


$     8,592,495













Operating Costs










     Lease and Well

$      336,291


$    347,281


$        348,883


$     1,032,455



     Transportation Costs

176,522


174,101


199,365


549,988



     Gathering and Processing Costs

111,295


112,643


127,549


351,487



     General and Administrative

106,672


121,780


135,758


364,210



     Taxes Other Than Income

192,906


204,414


203,098


600,418



     Interest Expense, Net

54,906


49,908


39,620


144,434



Total Cash Operating Cost (excluding DD&A and Total
  Exploration Costs) - (c)

$      978,592


$  1,010,127


$     1,054,273


$     3,042,992













     Depreciation, Depletion and Amortization (DD&A)

879,595


957,304


953,597


2,790,496



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

$    1,858,187


$  1,967,431


$     2,007,870


$     5,833,488













     Exploration Costs

$        36,324


$      32,522


$          34,540


$        103,386



     Dry Hole Costs

94


3,769


24,138


28,001



     Impairments

72,356


112,130


105,275


289,761



     Total Exploration Costs 

108,774


148,421


163,953


421,148



          Less:  Certain Impairments (Non-GAAP)

(23,745)


(65,289)


(27,215)


(116,249)



     Total Exploration Costs (Non-GAAP)

$        85,029


$      83,132


$        136,738


$        304,899













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

$    1,943,216


$  2,050,563


$     2,144,608


$     6,138,387













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

$          39.56


$        40.36


$            37.18


$            39.00













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

$          14.06


$        13.65


$            13.75


$            13.83













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

$          25.50


$        26.71


$            23.43


$            25.17













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

$          26.69


$        26.59


$            26.18


$            26.50













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

$          12.87


$        13.77


$            11.00


$            12.50













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

$          27.91


$        27.72


$            27.97


$            27.88













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

$          11.65


$        12.64


$             9.21


$            11.12























EOG RESOURCES, INC.

Cost per Barrel of Oil Equivalent (Boe)

(Unaudited; in thousands, except per Boe amounts)






















Year Ended


December 31,


2018


2017


2016


2015


2014











Volume - Thousand Barrels of Oil Equivalent - (a)

262,516


222,251


204,929


208,862


217,073











     Crude Oil and Condensate

$    9,517,440


$  6,256,396


$     4,317,341


$     4,934,562


$    9,742,480

     Natural Gas Liquids

1,127,510


729,561


437,250


407,658


934,051

     Natural Gas

1,301,537


921,934


742,152


1,061,038


1,916,386

Total Wellhead Revenues - (b)

$  11,946,487


$  7,907,891


$     5,496,743


$     6,403,258


$  12,592,917











Operating Costs










     Lease and Well

$    1,282,678


$  1,044,847


$        927,452


$     1,182,282


$    1,416,413

     Transportation Costs

746,876


740,352


764,106


849,319


972,176

     Gathering and Processing Costs

436,973


148,775


122,901


146,156


145,800











     General and Administrative

426,969


434,467


394,815


366,594


402,010

          Less:  Voluntary Retirement Expense

-


-


(42,054)


-


-

          Less:  Acquisition Costs

-


-


(5,100)


-


-

          Less:  Legal Settlement - Early Leasehold Termination

-


(10,202)


-


(19,355)


-

          Less:  Joint Venture Transaction Costs

-


(3,056)


-


-


-

          Less:  Joint Interest Billings Deemed Uncollectible

-


(4,528)


-


-


-

     General and Administrative (Non-GAAP)

426,969


416,681


347,661


347,239


402,010











     Taxes Other Than Income

772,481


544,662


349,710


421,744


757,564

     Interest Expense, Net

245,052


274,372


281,681


237,393


201,458

Total Cash Operating Cost (Non-GAAP) (excluding DD&A
  and Total Exploration Costs) - (c)

$    3,911,029


$  3,169,689


$     2,793,511


$     3,184,133


$    3,895,421











     Depreciation, Depletion and Amortization (DD&A)

3,435,408


3,409,387


3,553,417


3,313,644


3,997,041

Total Operating Cost (Non-GAAP) (excluding Total
  Exploration Costs) - (d)

$    7,346,437


$  6,579,076


$     6,346,928


$     6,497,777


$    7,892,462











     Exploration Costs

$      148,999


$    145,342


$        124,953


$        149,494


$      184,388

     Dry Hole Costs

5,405


4,609


10,657


14,746


48,490

     Impairments

347,021


479,240


620,267


6,613,546


743,575

     Total Exploration Costs 

501,425


629,191


755,877


6,777,786


976,453

          Less:  Certain Impairments (Non-GAAP)

(152,671)


(261,452)


(320,617)


(6,307,593)


(824,312)

     Total Exploration Costs (Non-GAAP)

$      348,754


$    367,739


$        435,260


$        470,193


$      152,141











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

$    7,695,191


$  6,946,815


$     6,782,188


$     6,967,970


$    8,044,603











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

$          45.51


$        35.58


$            26.82


$            30.66


$          58.01











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

$          14.90


$        14.25


$            13.64


$            15.25


$          17.95











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

$          30.61


$        21.33


$            13.18


$            15.41


$          40.06











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

$          27.99


$        29.59


$            30.98


$            31.11


$          36.38











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

$          17.52


$          5.99


$            (4.16)


$            (0.45)


$          21.63











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

$          29.32


$        31.24


$            33.10


$            33.36


$          37.08











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

$          16.19


$          4.34


$            (6.28)


$            (2.70)


$          20.93

 

EOG RESOURCES, INC.

Fourth Quarter and Full Year 2019 Forecast and Benchmark Commodity Pricing













     (a)  Fourth Quarter and Full Year 2019 Forecast


The forecast items for the fourth quarter and full year 2019 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 Exchanges.


     (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)



4Q 2019



Full Year 2019

Daily Sales Volumes












     Crude Oil and Condensate Volumes (MBbld)












          United States


459.5

-


469.5



453.3

-


455.8

          Trinidad


0.4

-


0.6



0.6

-


0.7

          Other International


0.0

-


0.2



0.1

-


0.1

               Total


459.9

-


470.3



454.0

-


456.6













     Natural Gas Liquids Volumes (MBbld)












               Total


135.0

-


145.0



131.8

-


134.4













     Natural Gas Volumes (MMcfd)












          United States


1,085

-


1,145



1,054

-


1,069

          Trinidad


225

-


255



256

-


264

          Other International


34

-


38



36

-


37

               Total


1,344

-


1,438



1,346

-


1,370













     Crude Oil Equivalent Volumes (MBoed)  












          United States


775.3

-


805.3



760.7

-


768.3

          Trinidad


37.9

-


43.1



43.3

-


44.6

          Other International


5.7

-


6.5



6.1

-


6.3

               Total


818.9

-


854.9



810.1

-


819.2

























Capital Expenditures ($MM)

$

1,400

-

$

1,600


$

6,200

-

$

6,400














Estimated Ranges


(Unaudited)


4Q 2019



Full Year 2019

Operating Costs












     Unit Costs ($/Boe)












          Lease and Well

$

4.50

-

$

4.80


$

4.65

-

$

4.75

          Transportation Costs

$

2.55

-

$

3.05


$

2.50

-

$

2.60

          Depreciation, Depletion and Amortization

$

12.45

-

$

12.85


$

12.60

-

$

12.70













Expenses ($MM)












     Exploration and Dry Hole

$

35

-

$

45


$

165

-

$

175

     Impairment

$

95

-

$

105


$

270

-

$

280

     General and Administrative

$

110

-

$

120


$

470

-

$

490

     Gathering and Processing 

$

130

-

$

140


$

480

-

$

490

     Capitalized Interest

$

9

-

$

11


$

37

-

$

39

     Net Interest

$

39

-

$

41


$

183

-

$

185













Taxes Other Than Income (% of Wellhead Revenue)


6.9%

-


7.3%



6.8%

-


7.2%













Income Taxes












     Effective Rate 


21%

-


26%



21%

-


26%

     Current Tax (Benefit) / Expense ($MM)

$

(40)

-

$

0


$

(110)

-

$

(70)













Pricing - (Refer toBenchmark Commodity Pricingin text)












     Crude Oil and Condensate ($/Bbl)












          Differentials












               United States - above (below) WTI

$

(1.85)

-

$

0.15


$

0.15

-

$

0.65

               Trinidad - above (below) WTI

$

(11.00)

-

$

(9.00)


$

(10.00)

-

$

(9.00)

               Other International - above (below) WTI

$

(1.00)

-

$

3.00


$

0.69

-

$

2.00













     Natural Gas Liquids












          Realizations as % of WTI


20%

-


28%



26%

-


28%













     Natural Gas ($/Mcf)












          Differentials












               United States - above (below) NYMEX Henry Hub

$

(0.70)

-

$

(0.30)


$

(0.50)

-

$

(0.40)













          Realizations












               Trinidad

$

2.50

-

$

2.90


$

2.65

-

$

2.75

               Other International

$

3.80

-

$

4.20


$

4.10

-

$

4.30



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

 

Cision View original content:http://www.prnewswire.com/news-releases/eog-resources-reports-outstanding-third-quarter-2019-results-announces-two-new-delaware-basin-plays-and-adds-1-700-net-premium-locations-300953238.html

SOURCE EOG Resources, Inc.

Copyright 2019 PR Newswire

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