HOUSTON, Aug. 1, 2019 /PRNewswire/ --
- Crude Oil Production Increased 18 Percent YOY and Exceeded
Target with Capital Expenditures Below Target
- Generated Significant Net Cash From Operating Activities and
Free Cash Flow
- Reduced Unit Cash Operating Costs 7 Percent YOY and Lowered YTD
Well Costs 4 Percent
EOG Resources, Inc. (EOG) today reported second
quarter 2019 net income of $848
million, or $1.46 per
share, compared with second quarter 2018 net income
of $697 million, or $1.20 per share. Net cash provided by
operating activities for the second quarter
2019 was $2.7 billion.
Adjusted non-GAAP net income for the second
quarter 2019 was $762 million, or $1.31 per share, compared with adjusted
non-GAAP net income of $795 million, or $1.37 per share, for the same prior year
period.
EOG generated $2.1 billion of
discretionary cash flow in the second quarter 2019, one percent
more than the same prior year period despite a 12 percent decline
in the NYMEX WTI benchmark price. Please refer to the attached
tables for the reconciliation of non-GAAP measures to GAAP
measures.
Second Quarter 2019 Operating Review
EOG
delivered excellent operational and financial results in the second
quarter 2019, extending its strong momentum from the first
quarter. The company continues to benefit from operating a
consistently-paced development program with meaningful scale across
multiple basins. Innovations in drilling, completions and
production, along with targeted infrastructure investments, are
contributing to the capital productivity improvements realized
through the second quarter.
For the second consecutive quarter, crude oil production volumes
exceeded the target range while capital expenditures were
below the target range. Second quarter 2019 total company
crude oil volumes grew 18 percent year-over-year
to 455,700 barrels of oil per day, a new company record.
Compared to the second quarter 2018, natural gas liquids (NGL)
production increased 16 percent, while natural gas
volumes grew 10 percent, contributing to total company production
growth of 16 percent.
Cash operating costs declined by seven percent during
the second quarter 2019 on a per-unit basis compared
to the same prior year period. Lower transportation and
lease and well costs contributed to the overall cost
reduction. EOG's marketing operations added to the strong second
quarter financial performance, as the average price of U.S. crude
oil sales was $1.18 per barrel higher
than the average NYMEX WTI price. Weaker NGL and natural gas
markets reduced price realizations for these products compared to
the same prior year period.
EOG generated $2.1 billion of
discretionary cash flow in the second quarter 2019 and incurred
total expenditures of $1.7 billion,
including $1.6 billion of
cash capital expenditures before acquisitions. After
considering dividend payments of $127
million, the company generated free cash
flow of $352 million during the second
quarter. Please refer to the attached tables for the
reconciliation of non-GAAP measures to GAAP measures.
"Our goal remains to be one of the best companies in any
industry in the S&P 500. EOG is positioned to generate
significant shareholder value even in lower oil price environments.
Today, EOG can generate double-digit returns, double-digit organic
growth, free cash flow and grow the dividend to a market
competitive yield. And we are poised to further improve our
financial performance going forward," said William R. "Bill"
Thomas, Chairman and Chief Executive Officer. "EOG is
committed to disciplined, environmentally responsible operational
execution. Every facet of the company is generating improved
performance each quarter, from drilling and completions to
production and marketing. To put it simply, EOG's business is
stronger than ever."
Financial Review
EOG further strengthened its
financial position during the second quarter 2019. The company
repaid a $900 million bond that
reached maturity in June 2019 with
cash on hand. At June 30, 2019, EOG's total debt
outstanding was $5.2 billion for
a debt-to-total capitalization ratio of 20
percent. Considering cash on the balance sheet at the end of
the second quarter, EOG's net debt was $4.0 billion for a net debt-to-total
capitalization ratio of 16 percent. This is down significantly from
24 percent at the end of the same prior year period. For a
reconciliation of non-GAAP measures to GAAP measures, please refer
to the attached tables.
Second Quarter 2019 Results Webcast
Friday, August 2, 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
and Other
|
$
|
4,697.6
|
|
$
|
4,238.1
|
|
$
|
8,756.3
|
|
$
|
7,919.2
|
Net
Income
|
$
|
847.8
|
|
$
|
696.7
|
|
$
|
1,483.3
|
|
$
|
1,335.3
|
Net Income Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.47
|
|
$
|
1.21
|
|
$
|
2.57
|
|
$
|
2.32
|
Diluted
|
$
|
1.46
|
|
$
|
1.20
|
|
$
|
2.56
|
|
$
|
2.30
|
Average Number of
Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
577.5
|
|
|
576.1
|
|
|
577.3
|
|
|
576.0
|
Diluted
|
|
580.2
|
|
|
580.4
|
|
|
580.2
|
|
|
580.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Income
Statements
|
(Unaudited; in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating Revenues
and Other
|
|
|
|
|
|
|
|
Crude Oil
and Condensate
|
$
|
2,528,866
|
|
$
|
2,377,528
|
|
$
|
4,729,269
|
|
$
|
4,478,836
|
Natural
Gas Liquids
|
|
186,374
|
|
|
286,354
|
|
|
405,012
|
|
|
507,769
|
Natural
Gas
|
|
269,892
|
|
|
300,845
|
|
|
604,864
|
|
|
600,611
|
Gains
(Losses) on Mark-to-Market Commodity Derivative
Contracts
|
|
177,300
|
|
|
(185,883)
|
|
|
156,720
|
|
|
(245,654)
|
Gathering,
Processing and Marketing
|
|
1,501,386
|
|
|
1,436,436
|
|
|
2,787,040
|
|
|
2,538,258
|
Gains
(Losses) on Asset Dispositions, Net
|
|
8,009
|
|
|
(6,317)
|
|
|
4,173
|
|
|
(21,286)
|
Other,
Net
|
|
25,803
|
|
|
29,114
|
|
|
69,194
|
|
|
60,705
|
Total
|
|
4,697,630
|
|
|
4,238,077
|
|
|
8,756,272
|
|
|
7,919,239
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Lease and
Well
|
|
347,281
|
|
|
314,604
|
|
|
683,572
|
|
|
614,668
|
Transportation Costs
|
|
174,101
|
|
|
177,797
|
|
|
350,623
|
|
|
354,754
|
Gathering
and Processing Costs
|
|
112,643
|
|
|
109,169
|
|
|
223,938
|
|
|
210,514
|
Exploration Costs
|
|
32,522
|
|
|
47,478
|
|
|
68,846
|
|
|
82,314
|
Dry Hole
Costs
|
|
3,769
|
|
|
4,902
|
|
|
3,863
|
|
|
4,902
|
Impairments
|
|
112,130
|
|
|
51,708
|
|
|
184,486
|
|
|
116,317
|
Marketing
Costs
|
|
1,500,915
|
|
|
1,420,463
|
|
|
2,770,972
|
|
|
2,526,853
|
Depreciation, Depletion and Amortization
|
|
957,304
|
|
|
848,674
|
|
|
1,836,899
|
|
|
1,597,265
|
General
and Administrative
|
|
121,780
|
|
|
104,083
|
|
|
228,452
|
|
|
198,781
|
Taxes
Other Than Income
|
|
204,414
|
|
|
194,268
|
|
|
397,320
|
|
|
373,352
|
Total
|
|
3,566,859
|
|
|
3,273,146
|
|
|
6,748,971
|
|
|
6,079,720
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
1,130,771
|
|
|
964,931
|
|
|
2,007,301
|
|
|
1,839,519
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense), Net
|
|
8,503
|
|
|
(8,551)
|
|
|
14,115
|
|
|
(7,824)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Interest Expense and Income Taxes
|
|
1,139,274
|
|
|
956,380
|
|
|
2,021,416
|
|
|
1,831,695
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense,
Net
|
|
49,908
|
|
|
63,444
|
|
|
104,814
|
|
|
125,400
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
|
1,089,366
|
|
|
892,936
|
|
|
1,916,602
|
|
|
1,706,295
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Provision
|
|
241,525
|
|
|
196,205
|
|
|
433,335
|
|
|
370,975
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
847,841
|
|
$
|
696,731
|
|
$
|
1,483,267
|
|
$
|
1,335,320
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared
per Common Share
|
$
|
0.2875
|
|
$
|
0.1850
|
|
$
|
0.5075
|
|
$
|
0.3700
|
EOG RESOURCES,
INC.
|
Operating
Highlights
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
Wellhead Volumes
and Prices
|
|
|
|
|
|
|
|
Crude Oil and
Condensate Volumes (MBbld) (A)
|
|
|
|
|
|
|
|
United
States
|
|
454.9
|
|
|
379.2
|
|
20%
|
|
|
445.1
|
|
|
369.5
|
|
20%
|
Trinidad
|
|
0.6
|
|
|
0.8
|
|
-25%
|
|
|
0.7
|
|
|
0.9
|
|
-22%
|
Other International
(B)
|
|
0.2
|
|
|
4.6
|
|
-96%
|
|
|
-
|
|
|
3.6
|
|
-100%
|
Total
|
|
455.7
|
|
|
384.6
|
|
18%
|
|
|
445.8
|
|
|
374.0
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Crude Oil and
Condensate Prices ($/Bbl) (C)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
61.01
|
|
$
|
67.91
|
|
-10%
|
|
$
|
58.63
|
|
$
|
66.13
|
|
-11%
|
Trinidad
|
|
49.56
|
|
|
60.57
|
|
-18%
|
|
|
46.62
|
|
|
57.59
|
|
-19%
|
Other International
(B)
|
|
55.07
|
|
|
70.88
|
|
-22%
|
|
|
57.78
|
|
|
71.14
|
|
-19%
|
Composite
|
|
60.99
|
|
|
67.93
|
|
-10%
|
|
|
58.61
|
|
|
66.16
|
|
-11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Liquids
Volumes (MBbld) (A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
131.1
|
|
|
112.9
|
|
16%
|
|
|
125.4
|
|
|
106.8
|
|
17%
|
Other International
(B)
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
Total
|
|
131.1
|
|
|
112.9
|
|
16%
|
|
|
125.4
|
|
|
106.8
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Natural Gas
Liquids Prices ($/Bbl) (C)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
15.63
|
|
$
|
27.86
|
|
-44%
|
|
$
|
17.84
|
|
$
|
26.27
|
|
-32%
|
Other International
(B)
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
Composite
|
|
15.63
|
|
|
27.86
|
|
-44%
|
|
|
17.84
|
|
|
26.27
|
|
-32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Volumes
(MMcfd) (A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
1,047
|
|
|
914
|
|
15%
|
|
|
1,025
|
|
|
884
|
|
16%
|
Trinidad
|
|
273
|
|
|
282
|
|
-3%
|
|
|
270
|
|
|
288
|
|
-6%
|
Other International
(B)
|
|
36
|
|
|
32
|
|
13%
|
|
|
37
|
|
|
30
|
|
23%
|
Total
|
|
1,356
|
|
|
1,228
|
|
10%
|
|
|
1,332
|
|
|
1,202
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Natural Gas
Prices ($/Mcf) (C)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
1.98
|
|
$
|
2.56
|
|
-22%
|
|
$
|
2.37
|
|
$
|
2.65
|
|
-11%
|
Trinidad
|
|
2.69
|
|
|
2.98
|
|
-10%
|
|
|
2.80
|
|
|
2.93
|
|
-4%
|
Other International
(B)
|
|
4.25
|
|
|
4.10
|
|
4%
|
|
|
4.31
|
|
|
4.22
|
|
2%
|
Composite
|
|
2.19
|
|
|
2.69
|
|
-19%
|
|
|
2.51
|
|
|
2.76
|
|
-9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil Equivalent
Volumes (MBoed) (D)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
760.4
|
|
|
644.4
|
|
18%
|
|
|
741.3
|
|
|
623.6
|
|
19%
|
Trinidad
|
|
46.1
|
|
|
47.8
|
|
-4%
|
|
|
45.6
|
|
|
48.8
|
|
-7%
|
Other International
(B)
|
|
6.3
|
|
|
10.0
|
|
-37%
|
|
|
6.4
|
|
|
8.8
|
|
-27%
|
Total
|
|
812.8
|
|
|
702.2
|
|
16%
|
|
|
793.3
|
|
|
681.2
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total MMBoe
(D)
|
|
74.0
|
|
|
63.9
|
|
16%
|
|
|
143.6
|
|
|
123.3
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 June 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)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2019
|
|
2018
|
ASSETS
|
Current
Assets
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
1,160,485
|
|
$
|
1,555,634
|
Accounts Receivable,
Net
|
|
2,001,953
|
|
|
1,915,215
|
Inventories
|
|
853,128
|
|
|
859,359
|
Assets from Price Risk
Management Activities
|
|
134,951
|
|
|
23,806
|
Income Taxes
Receivable
|
|
121,364
|
|
|
427,909
|
Other
|
|
223,640
|
|
|
275,467
|
Total
|
|
4,495,521
|
|
|
5,057,390
|
|
|
|
|
|
|
Property, Plant
and Equipment
|
|
|
|
|
|
Oil and Gas Properties
(Successful Efforts Method)
|
|
60,214,151
|
|
|
57,330,016
|
Other Property, Plant and
Equipment
|
|
4,328,675
|
|
|
4,220,665
|
Total Property, Plant and Equipment
|
|
64,542,826
|
|
|
61,550,681
|
Less: Accumulated
Depreciation, Depletion and Amortization
|
|
(34,818,395)
|
|
|
(33,475,162)
|
Total Property, Plant and Equipment, Net
|
|
29,724,431
|
|
|
28,075,519
|
Deferred Income
Taxes
|
|
1,489
|
|
|
777
|
Other
Assets
|
|
1,530,060
|
|
|
800,788
|
Total
Assets
|
$
|
35,751,501
|
|
$
|
33,934,474
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
Current
Liabilities
|
|
|
|
|
|
Accounts Payable
|
$
|
2,387,403
|
|
$
|
2,239,850
|
Accrued Taxes
Payable
|
|
268,837
|
|
|
214,726
|
Dividends Payable
|
|
165,999
|
|
|
126,971
|
Current Portion of Long-Term
Debt
|
|
1,013,876
|
|
|
913,093
|
Current Portion of Operating
Lease Liabilities
|
|
396,547
|
|
|
-
|
Other
|
|
181,395
|
|
|
233,724
|
Total
|
|
4,414,057
|
|
|
3,728,364
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term
Debt
|
|
4,165,284
|
|
|
5,170,169
|
Other
Liabilities
|
|
1,803,475
|
|
|
1,258,355
|
Deferred Income
Taxes
|
|
4,738,409
|
|
|
4,413,398
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common Stock, $0.01 Par,
1,280,000,000 Shares Authorized and
580,931,822 Shares Issued at June 30, 2019 and
580,408,117
Shares
Issued at December 31, 2018
|
|
205,809
|
|
|
205,804
|
Additional Paid in
Capital
|
|
5,729,318
|
|
|
5,658,794
|
Accumulated Other
Comprehensive Loss
|
|
(4,528)
|
|
|
(1,358)
|
Retained Earnings
|
|
14,731,609
|
|
|
13,543,130
|
Common Stock Held in
Treasury, 305,941 Shares at June 30, 2019
and 385,042 Shares at December 31, 2018
|
|
(31,932)
|
|
|
(42,182)
|
Total Stockholders' Equity
|
|
20,630,276
|
|
|
19,364,188
|
Total Liabilities
and Stockholders' Equity
|
$
|
35,751,501
|
|
$
|
33,934,474
|
|
|
|
|
|
|
EOG RESOURCES,
INC.
|
Summary Statements
of Cash Flows
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
847,841
|
|
$
|
696,731
|
|
$
|
1,483,267
|
|
$
|
1,335,320
|
Items Not Requiring
(Providing) Cash
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, Depletion and Amortization
|
|
957,304
|
|
|
848,674
|
|
|
1,836,899
|
|
|
1,597,265
|
Impairments
|
|
112,130
|
|
|
51,708
|
|
|
184,486
|
|
|
116,317
|
Stock-Based Compensation Expenses
|
|
38,566
|
|
|
31,803
|
|
|
77,653
|
|
|
67,289
|
Deferred Income Taxes
|
|
217,970
|
|
|
176,224
|
|
|
324,294
|
|
|
347,586
|
(Gains) Losses on Asset Dispositions, Net
|
|
(8,009)
|
|
|
6,317
|
|
|
(4,173)
|
|
|
21,286
|
Other, Net
|
|
2,487
|
|
|
11,494
|
|
|
5,439
|
|
|
13,507
|
Dry Hole Costs
|
|
3,769
|
|
|
4,902
|
|
|
3,863
|
|
|
4,902
|
Mark-to-Market Commodity
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
|
|
Total (Gains) Losses
|
|
(177,300)
|
|
|
185,883
|
|
|
(156,720)
|
|
|
245,654
|
Net Cash Received from (Payments for) Settlements of
Commodity
Derivative
Contracts
|
|
10,444
|
|
|
(66,369)
|
|
|
31,290
|
|
|
(88,334)
|
Other, Net
|
|
663
|
|
|
217
|
|
|
1,639
|
|
|
(261)
|
Changes in Components of
Working Capital and Other Assets and Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Receivable
|
|
239,250
|
|
|
(200,097)
|
|
|
(69,746)
|
|
|
(309,751)
|
Inventories
|
|
7,720
|
|
|
(85,420)
|
|
|
(11,259)
|
|
|
(192,219)
|
Accounts Payable
|
|
(67,229)
|
|
|
402,325
|
|
|
126,853
|
|
|
455,977
|
Accrued Taxes Payable
|
|
(61,718)
|
|
|
585
|
|
|
53,280
|
|
|
22,535
|
Other Assets
|
|
494,322
|
|
|
(53,980)
|
|
|
487,387
|
|
|
(62,843)
|
Other Liabilities
|
|
(4,014)
|
|
|
(24,113)
|
|
|
(58,106)
|
|
|
(53,168)
|
Changes in Components of
Working Capital Associated with Investing and
Financing
Activities
|
|
72,347
|
|
|
(45,267)
|
|
|
(22,034)
|
|
|
(27,279)
|
Net Cash Provided
by Operating Activities
|
|
2,686,543
|
|
|
1,941,617
|
|
|
4,294,312
|
|
|
3,493,783
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
|
Additions to Oil and Gas
Properties
|
|
(1,507,024)
|
|
|
(1,615,175)
|
|
|
(3,446,497)
|
|
|
(2,980,286)
|
Additions to Other Property,
Plant and Equipment
|
|
(55,918)
|
|
|
(68,758)
|
|
|
(116,881)
|
|
|
(144,858)
|
Proceeds from Sales of
Assets
|
|
2,593
|
|
|
5,447
|
|
|
17,642
|
|
|
8,276
|
Changes in Components of
Working Capital Associated with Investing Activities
|
|
(72,325)
|
|
|
45,295
|
|
|
22,056
|
|
|
27,250
|
Net Cash Used in
Investing Activities
|
|
(1,632,674)
|
|
|
(1,633,191)
|
|
|
(3,523,680)
|
|
|
(3,089,618)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Debt
Repayments
|
|
(900,000)
|
|
|
-
|
|
|
(900,000)
|
|
|
-
|
Dividends Paid
|
|
(127,135)
|
|
|
(106,584)
|
|
|
(254,681)
|
|
|
(203,610)
|
Treasury Stock
Purchased
|
|
(2,155)
|
|
|
(15,247)
|
|
|
(8,403)
|
|
|
(32,023)
|
Proceeds from Stock Options
Exercised and Employee Stock Purchase Plan
|
|
8,292
|
|
|
9,692
|
|
|
8,695
|
|
|
11,145
|
Debt Issuance
Costs
|
|
(4,902)
|
|
|
-
|
|
|
(4,902)
|
|
|
-
|
Repayment of Capital Lease
Obligation
|
|
(3,213)
|
|
|
(1,683)
|
|
|
(6,403)
|
|
|
(3,354)
|
Changes in Components of
Working Capital Associated with Financing Activities
|
|
(22)
|
|
|
(28)
|
|
|
(22)
|
|
|
29
|
Net Cash Used in
Financing Activities
|
|
(1,029,135)
|
|
|
(113,850)
|
|
|
(1,165,716)
|
|
|
(227,813)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash
|
|
(59)
|
|
|
(2,455)
|
|
|
(65)
|
|
|
(2,365)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(Decrease) in Cash and Cash Equivalents
|
|
24,675
|
|
|
192,121
|
|
|
(395,149)
|
|
|
173,987
|
Cash and Cash
Equivalents at Beginning of Period
|
|
1,135,810
|
|
|
816,094
|
|
|
1,555,634
|
|
|
834,228
|
Cash and Cash
Equivalents at End of Period
|
$
|
1,160,485
|
|
$
|
1,008,215
|
|
$
|
1,160,485
|
|
$
|
1,008,215
|
EOG RESOURCES,
INC.
|
Second 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
|
|
63
|
|
57
|
|
6,500
|
|
1,950
|
|
450
|
|
2.9
|
|
2,900
|
Bone
Spring
|
|
5
|
|
5
|
|
5,200
|
|
1,300
|
|
300
|
|
1.6
|
|
1,850
|
Leonard
|
|
3
|
|
3
|
|
4,700
|
|
1,200
|
|
600
|
|
3.1
|
|
2,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Texas Eagle
Ford
|
|
86
|
|
78
|
|
7,300
|
|
1,100
|
|
150
|
|
0.6
|
|
1,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Texas Austin
Chalk
|
|
6
|
|
4
|
|
4,300
|
|
1,450
|
|
250
|
|
1.0
|
|
1,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Powder River
Basin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turner
|
|
6
|
|
5
|
|
8,400
|
|
700
|
|
150
|
|
2.7
|
|
1,300
|
Mowry
|
|
2
|
|
1
|
|
9,500
|
|
700
|
|
250
|
|
6.0
|
|
1,950
|
Niobrara
|
|
5
|
|
3
|
|
9,800
|
|
1,000
|
|
100
|
|
2.1
|
|
1,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DJ Basin
Codell
|
|
18
|
|
12
|
|
11,400
|
|
800
|
|
50
|
|
0.3
|
|
900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anadarko Basin
Woodford Oil Window
|
|
11
|
|
9
|
|
9,500
|
|
650
|
|
50
|
|
0.5
|
|
800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 six-month periods ended June 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
|
|
June 30,
2019
|
|
June 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)
|
$
1,089,366
|
|
$
(241,525)
|
|
$
847,841
|
|
$
1.46
|
|
$
892,936
|
|
$
(196,205)
|
|
$
696,731
|
|
$
1.20
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) Losses on
Mark-to-Market Commodity Derivative Contracts
|
(177,300)
|
|
38,930
|
|
(138,370)
|
|
(0.24)
|
|
185,883
|
|
(40,944)
|
|
144,939
|
|
0.25
|
Net Cash Received
from (Payments for Settlements of Commodity
Derivative Contracts)
|
10,444
|
|
(2,276)
|
|
8,168
|
|
0.01
|
|
(66,369)
|
|
14,619
|
|
(51,750)
|
|
(0.09)
|
Add: (Gains)
Losses on Asset Dispositions
|
(8,009)
|
|
1,734
|
|
(6,275)
|
|
(0.01)
|
|
6,317
|
|
(1,375)
|
|
4,942
|
|
0.01
|
Add:
Impairments
|
65,289
|
|
(14,311)
|
|
50,978
|
|
0.09
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjustments to Net
Income
|
(109,576)
|
|
24,077
|
|
(85,499)
|
|
(0.15)
|
|
125,831
|
|
(27,700)
|
|
98,131
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (Non-GAAP)
|
$
979,790
|
|
$
(217,448)
|
|
$
762,342
|
|
$
1.31
|
|
$
1,018,767
|
|
$
(223,905)
|
|
$
794,862
|
|
$
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
577,460
|
|
|
|
|
|
|
|
576,135
|
Diluted
|
|
|
|
|
|
|
580,247
|
|
|
|
|
|
|
|
580,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2019
|
|
June 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)
|
$
1,916,602
|
|
$
(433,335)
|
|
$
1,483,267
|
|
$
2.56
|
|
$
1,706,295
|
|
$
(370,975)
|
|
$
1,335,320
|
|
$
2.30
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains) Losses on
Mark-to-Market Commodity Derivative Contracts
|
(156,720)
|
|
34,397
|
|
(122,323)
|
|
(0.21)
|
|
245,654
|
|
(54,110)
|
|
191,544
|
|
0.33
|
Net Cash Received
from (Payments for Settlements of Commodity Derivative
Contracts)
|
31,290
|
|
(6,868)
|
|
24,422
|
|
0.04
|
|
(88,334)
|
|
19,457
|
|
(68,877)
|
|
(0.12)
|
Add: (Gains)
Losses on Asset Dispositions
|
(4,173)
|
|
998
|
|
(3,175)
|
|
(0.01)
|
|
21,286
|
|
(4,699)
|
|
16,587
|
|
0.03
|
Add:
Impairments
|
89,034
|
|
(19,541)
|
|
69,493
|
|
0.12
|
|
20,876
|
|
(4,598)
|
|
16,278
|
|
0.03
|
Less: Tax
Reform Impact
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,524)
|
|
(6,524)
|
|
(0.01)
|
Adjustments to Net
Income
|
(40,569)
|
|
8,986
|
|
(31,583)
|
|
(0.06)
|
|
199,482
|
|
(50,474)
|
|
149,008
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (Non-GAAP)
|
$
1,876,033
|
|
$
(424,349)
|
|
$
1,451,684
|
|
$
2.50
|
|
$
1,905,777
|
|
$
(421,449)
|
|
$
1,484,328
|
|
$
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Number of
Common Shares (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
577,333
|
|
|
|
|
|
|
|
575,953
|
Diluted
|
|
|
|
|
|
|
580,204
|
|
|
|
|
|
|
|
580,007
|
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 six-month periods ended June 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, 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 (excluding
acquisitions) incurred (Non-GAAP) during such period and dividends
paid (GAAP) during such period, as is illustrated below for the
three months and six months ended June 30, 2019 and 2018. EOG
management uses this information for comparative purposes within
the industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities (GAAP)
|
$
|
2,686,543
|
|
$
|
1,941,617
|
|
$
|
4,294,312
|
|
$
|
3,493,783
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Exploration Costs
(excluding Stock-Based Compensation Expenses)
|
|
26,089
|
|
|
41,748
|
|
|
55,876
|
|
|
69,684
|
Other Non-Current
Income Taxes - Net Receivable
|
|
42,764
|
|
|
73,441
|
|
|
145,682
|
|
|
192,362
|
Changes in Components
of Working Capital and Other Assets
|
|
|
|
|
|
|
|
|
|
|
|
and
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Receivable
|
|
(239,250)
|
|
|
200,097
|
|
|
69,746
|
|
|
309,751
|
Inventories
|
|
(7,720)
|
|
|
85,420
|
|
|
11,259
|
|
|
192,219
|
Accounts
Payable
|
|
67,229
|
|
|
(402,325)
|
|
|
(126,853)
|
|
|
(455,977)
|
Accrued Taxes
Payable
|
|
61,718
|
|
|
(585)
|
|
|
(53,280)
|
|
|
(22,535)
|
Other
Assets
|
|
(494,322)
|
|
|
53,980
|
|
|
(487,387)
|
|
|
62,843
|
Other
Liabilities
|
|
4,014
|
|
|
24,113
|
|
|
58,106
|
|
|
53,168
|
Changes in Components
of Working Capital Associated with
|
|
|
|
|
|
|
|
|
|
|
|
Investing and
Financing Activities
|
|
(72,347)
|
|
|
45,267
|
|
|
22,034
|
|
|
27,279
|
|
|
|
|
|
|
|
Discretionary Cash
Flow (Non-GAAP)
|
$
|
2,074,718
|
|
$
|
2,062,773
|
|
$
|
3,989,495
|
|
$
|
3,922,577
|
|
|
|
|
|
|
|
|
|
|
|
|
Discretionary Cash
Flow (Non-GAAP) - Percentage Increase
|
|
1%
|
|
|
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discretionary Cash
Flow (Non-GAAP)
|
$
|
2,074,718
|
|
$
|
2,062,773
|
|
$
|
3,989,495
|
|
$
|
3,922,577
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash
Expenditures Excluding Acquisitions
(Non-GAAP)(a)
|
|
(1,595,726)
|
|
|
(1,720,198)
|
|
|
(3,328,202)
|
|
|
(3,198,028)
|
Dividends Paid
(GAAP)
|
|
(127,135)
|
|
|
(106,584)
|
|
|
(254,681)
|
|
|
(203,610)
|
Free Cash Flow
(Non-GAAP)
|
$
|
351,857
|
|
$
|
235,991
|
|
$
|
406,612
|
|
$
|
520,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See below
reconciliation of Total Expenditures (GAAP) to Total Cash
Expenditures Excluding Acquisitions (Non-GAAP) for the three-month
and six-month periods ended June 30, 2019 and 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenditures
(GAAP)
|
$
|
1,663,127
|
|
$
|
1,826,932
|
|
$
|
3,765,046
|
|
$
|
3,373,573
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Asset Retirement Costs
|
|
(55,425)
|
|
|
(18,856)
|
|
|
(60,581)
|
|
|
(30,956)
|
Non-Cash Expenditures of Other Property, Plant and
Equipment
|
|
(586)
|
|
|
(45)
|
|
|
(586)
|
|
|
(47,680)
|
Non-Cash Acquisition Costs of Unproved Properties
|
|
(10,240)
|
|
|
(51,193)
|
|
|
(53,721)
|
|
|
(60,002)
|
Acquisition Costs of Proved Properties
|
|
(1,150)
|
|
|
(36,640)
|
|
|
(321,956)
|
|
|
(36,907)
|
Total Cash
Expenditures Excluding Acquisitions (Non-GAAP)
|
$
|
1,595,726
|
|
$
|
1,720,198
|
|
$
|
3,328,202
|
|
$
|
3,198,028
|
EOG RESOURCES,
INC.
|
Reconciliation of
Adjusted EBITDAX
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
The following chart
adjusts the three-month and six-month periods ended June 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
847,841
|
|
$
|
696,731
|
|
$
|
1,483,267
|
|
$
|
1,335,320
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense,
Net
|
|
49,908
|
|
|
63,444
|
|
|
104,814
|
|
|
125,400
|
Income Tax
Provision
|
|
241,525
|
|
|
196,205
|
|
|
433,335
|
|
|
370,975
|
Depreciation, Depletion and
Amortization
|
|
957,304
|
|
|
848,674
|
|
|
1,836,899
|
|
|
1,597,265
|
Exploration Costs
|
|
32,522
|
|
|
47,478
|
|
|
68,846
|
|
|
82,314
|
Dry Hole Costs
|
|
3,769
|
|
|
4,902
|
|
|
3,863
|
|
|
4,902
|
Impairments
|
|
112,130
|
|
|
51,708
|
|
|
184,486
|
|
|
116,317
|
EBITDAX (Non-GAAP)
|
|
2,244,999
|
|
|
1,909,142
|
|
|
4,115,510
|
|
|
3,632,493
|
Total (Gains) Losses on MTM
Commodity Derivative Contracts
|
|
(177,300)
|
|
|
185,883
|
|
|
(156,720)
|
|
|
245,654
|
Net Cash Received from
(Payments for) Settlements of Commodity
Derivative
Contracts
|
|
10,444
|
|
|
(66,369)
|
|
|
31,290
|
|
|
(88,334)
|
(Gains) Losses on Asset
Dispositions, Net
|
|
(8,009)
|
|
|
6,317
|
|
|
(4,173)
|
|
|
21,286
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX
(Non-GAAP)
|
$
|
2,070,134
|
|
$
|
2,034,973
|
|
$
|
3,985,907
|
|
$
|
3,811,099
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX
(Non-GAAP) - Percentage Increase
|
|
2%
|
|
|
|
|
|
5%
|
|
|
|
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
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity - (a)
|
$
|
20,630
|
|
$
|
19,364
|
|
$
|
17,452
|
|
|
|
|
|
|
|
|
|
Current and Long-Term
Debt (GAAP) - (b)
|
|
5,179
|
|
|
6,083
|
|
|
6,435
|
Less:
Cash
|
|
(1,160)
|
|
|
(1,556)
|
|
|
(1,008)
|
Net Debt (Non-GAAP) -
(c)
|
|
4,019
|
|
|
4,527
|
|
|
5,427
|
|
|
|
|
|
|
|
|
|
Total Capitalization
(GAAP) - (a) + (b)
|
$
|
25,809
|
|
$
|
25,447
|
|
$
|
23,887
|
|
|
|
|
|
|
|
|
|
Total Capitalization
(Non-GAAP) - (a) + (c)
|
$
|
24,649
|
|
$
|
23,891
|
|
$
|
22,879
|
|
|
|
|
|
|
|
|
|
Debt-to-Total
Capitalization (GAAP) - (b) / [(a) + (b)]
|
|
20%
|
|
|
24%
|
|
|
27%
|
|
|
|
|
|
|
|
|
|
Net Debt-to-Total
Capitalization (Non-GAAP) - (c) / [(a) + (c)]
|
|
16%
|
|
|
19%
|
|
|
24%
|
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 July 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 August 31, 2019 (closed)
|
20,000
|
|
$
1.075
|
September 1, 2019
through December 31, 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 July 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 August 31, 2019 (closed)
|
13,000
|
|
$
5.572
|
September 1, 2019
through December 31, 2019
|
13,000
|
|
5.572
|
|
|
|
|
|
|
|
|
|
|
Presented below is a
comprehensive summary of EOG's crude oil price swap contracts
through July 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
June 30, 2019 (closed)
|
150,000
|
|
62.50
|
July 1, 2019 through
December 31, 2019
|
150,000
|
|
62.50
|
|
|
|
|
|
|
|
|
|
|
Presented below is a
comprehensive summary of EOG's natural gas price swap contracts
through July 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
August 31, 2019 (closed)
|
250,000
|
|
$
2.90
|
September 1, 2019
through October 31, 2019
|
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
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Operating
Expenses (GAAP)*
|
|
|
|
|
|
|
|
|
|
|
|
Lease and
Well
|
|
$
347,281
|
|
$
314,604
|
|
$
683,572
|
|
$
614,668
|
|
|
|
Transportation
Costs
|
|
174,101
|
|
177,797
|
|
350,623
|
|
354,754
|
|
|
|
General and
Administrative
|
|
121,780
|
|
104,083
|
|
228,452
|
|
198,781
|
|
|
|
Cash Operating
Expenses
|
|
643,162
|
|
596,484
|
|
1,262,647
|
|
1,168,203
|
|
|
|
Less: Non-GAAP
Adjustments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Adjusted Cash Operating
Expenses (Non-GAAP) - (a)
|
|
$
643,162
|
|
$
596,484
|
|
$
1,262,647
|
|
$
1,168,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume - Thousand
Barrels of Oil Equivalent - (b)
|
|
73,964
|
|
63,898
|
|
143,587
|
|
123,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Cash
Operating Expenses Per Boe (Non-GAAP) - (a) / (b)
|
|
$
8.70
|
(c)
|
$
9.33
|
(d)
|
$
8.79
|
(e)
|
$
9.48
|
(f)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Cash
Operating Expenses Per Boe (Non-GAAP) -
Percentage
Decrease
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019 compared to Three Months Ended June 30, 2018 - [(c) -
(d)] / (d)
|
|
-7%
|
|
|
|
|
|
|
|
|
|
Six Months Ended June
30, 2019 compared to Six Months Ended
June 30, 2018 - [(e)
- (f)] / (f)
|
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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,
|
|
June
30,
|
|
|
|
|
|
|
2019
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume - Thousand
Barrels of Oil Equivalent - (a)
|
|
69,623
|
|
73,964
|
|
143,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil and
Condensate
|
|
$
2,200,403
|
|
$
2,528,866
|
|
$
4,729,269
|
|
|
|
|
Natural Gas
Liquids
|
|
218,638
|
|
186,374
|
|
405,012
|
|
|
|
|
Natural Gas
|
|
334,972
|
|
269,892
|
|
604,864
|
|
|
|
|
Total Wellhead
Revenues - (b)
|
|
$
2,754,013
|
|
$
2,985,132
|
|
$
5,739,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Costs
|
|
|
|
|
|
|
|
|
|
|
Lease and Well
|
|
$
336,291
|
|
$
347,281
|
|
$
683,572
|
|
|
|
|
Transportation
Costs
|
|
176,522
|
|
174,101
|
|
350,623
|
|
|
|
|
Gathering and Processing
Costs
|
|
111,295
|
|
112,643
|
|
223,938
|
|
|
|
|
General and
Administrative
|
|
106,672
|
|
121,780
|
|
228,452
|
|
|
|
|
Taxes Other Than
Income
|
|
192,906
|
|
204,414
|
|
397,320
|
|
|
|
|
Interest Expense,
Net
|
|
54,906
|
|
49,908
|
|
104,814
|
|
|
|
|
Total Cash
Operating Cost (excluding DD&A and
Total
Exploration Costs) - (c)
|
|
$
978,592
|
|
$
1,010,127
|
|
$
1,988,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, Depletion and
Amortization (DD&A)
|
|
879,595
|
|
957,304
|
|
1,836,899
|
|
|
|
|
Total Operating
Cost (excluding Total Exploration Costs) - (d)
|
|
$
1,858,187
|
|
$
1,967,431
|
|
$
3,825,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration Costs
|
|
$
36,324
|
|
$
32,522
|
|
$
68,846
|
|
|
|
|
Dry Hole Costs
|
|
94
|
|
3,769
|
|
3,863
|
|
|
|
|
Impairments
|
|
72,356
|
|
112,130
|
|
184,486
|
|
|
|
|
Total Exploration
Costs
|
|
108,774
|
|
148,421
|
|
257,195
|
|
|
|
|
Less: Impairments (Non-GAAP)
|
|
(23,745)
|
|
(65,289)
|
|
(89,034)
|
|
|
|
|
Total Exploration Costs
(Non-GAAP)
|
|
$
85,029
|
|
$
83,132
|
|
$
168,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Cost (Non-GAAP) (including Total
Exploration Costs) -
(e)
|
|
$
1,943,216
|
|
$
2,050,563
|
|
$
3,993,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Average
Wellhead Revenue per Boe - (b) / (a)
|
|
$
39.56
|
|
$
40.36
|
|
$
39.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash
Operating Cost per Boe (excluding DD&A
and
Total Exploration Costs) - (c) / (a)
|
|
$
14.06
|
|
$
13.65
|
|
$
13.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Average
Margin per Boe (excluding DD&A
and
Total Exploration Costs) - [(b) / (a) - (c) / (a)]
|
|
$
25.50
|
|
$
26.71
|
|
$
26.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Cost per Boe (excluding Total Exploration
Costs) - (d) / (a)
|
|
$
26.69
|
|
$
26.59
|
|
$
26.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite
Average Margin per Boe (excluding Total
Exploration
Costs) - [(b) / (a) - (d) / (a)]
|
|
$
12.87
|
|
$
13.77
|
|
$
13.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Cost per Boe (Non-GAAP) (including
Total
Exploration Costs) - (e) / (a)
|
|
$
27.91
|
|
$
27.72
|
|
$
27.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composite Average
Margin per Boe (Non-GAAP)
(including
Total Exploration Costs) - [(b) / (a) - (e) / (a)]
|
|
$
11.65
|
|
$
12.64
|
|
$
12.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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: 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.
|
Third Quarter and
Full Year 2019 Forecast and Benchmark Commodity
Pricing
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Third Quarter and
Full Year 2019 Forecast
|
|
|
|
|
|
|
|
|
|
|
|
|
The forecast items
for the third 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)
|
|
|
3Q 2019
|
|
|
Full Year
2019
|
Daily Sales
Volumes
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil and Condensate
Volumes (MBbld)
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
453.0
|
-
|
|
463.0
|
|
|
450.0
|
-
|
|
455.0
|
Trinidad
|
|
0.5
|
-
|
|
0.7
|
|
|
0.5
|
-
|
|
0.7
|
Other International
|
|
0.0
|
-
|
|
0.2
|
|
|
0.0
|
-
|
|
0.2
|
Total
|
|
453.5
|
-
|
|
463.9
|
|
|
450.5
|
-
|
|
455.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Liquids Volumes
(MBbld)
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
128.0
|
-
|
|
138.0
|
|
|
125.0
|
-
|
|
135.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Volumes
(MMcfd)
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
1,010
|
-
|
|
1,070
|
|
|
1,020
|
-
|
|
1,070
|
Trinidad
|
|
235
|
-
|
|
265
|
|
|
260
|
-
|
|
280
|
Other International
|
|
30
|
-
|
|
40
|
|
|
30
|
-
|
|
40
|
Total
|
|
1,275
|
-
|
|
1,375
|
|
|
1,310
|
-
|
|
1,390
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil Equivalent Volumes
(MBoed)
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
749.3
|
-
|
|
779.3
|
|
|
745.0
|
-
|
|
768.3
|
Trinidad
|
|
39.7
|
-
|
|
44.9
|
|
|
43.8
|
-
|
|
47.4
|
Other International
|
|
5.0
|
-
|
|
6.9
|
|
|
5.0
|
-
|
|
6.9
|
Total
|
|
794.0
|
-
|
|
831.1
|
|
|
793.8
|
-
|
|
822.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
($MM)
|
$
|
1,500
|
-
|
$
|
1,700
|
|
$
|
6,100
|
-
|
$
|
6,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Ranges
|
|
|
(Unaudited)
|
|
3Q 2019
|
|
|
Full Year
2019
|
Operating
Costs
|
|
|
|
|
|
|
|
|
|
|
|
Unit Costs
($/Boe)
|
|
|
|
|
|
|
|
|
|
|
|
Lease and Well
|
$
|
4.70
|
-
|
$
|
5.00
|
|
$
|
4.50
|
-
|
$
|
5.10
|
Transportation Costs
|
$
|
2.20
|
-
|
$
|
2.70
|
|
$
|
2.25
|
-
|
$
|
2.75
|
Depreciation, Depletion and Amortization
|
$
|
12.70
|
-
|
$
|
13.10
|
|
$
|
12.25
|
-
|
$
|
13.25
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
($MM)
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and Dry
Hole
|
$
|
45
|
-
|
$
|
55
|
|
$
|
140
|
-
|
$
|
180
|
Impairment
|
$
|
75
|
-
|
$
|
85
|
|
$
|
250
|
-
|
$
|
300
|
General and
Administrative
|
$
|
120
|
-
|
$
|
130
|
|
$
|
450
|
-
|
$
|
490
|
Gathering and
Processing
|
$
|
120
|
-
|
$
|
130
|
|
$
|
440
|
-
|
$
|
480
|
Capitalized
Interest
|
$
|
9
|
-
|
$
|
11
|
|
$
|
30
|
-
|
$
|
40
|
Net Interest
|
$
|
39
|
-
|
$
|
41
|
|
$
|
180
|
-
|
$
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes Other Than
Income (% of Wellhead Revenue)
|
|
7.0%
|
-
|
|
7.4%
|
|
|
7.0%
|
-
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
Effective
Rate
|
|
21%
|
-
|
|
26%
|
|
|
21%
|
-
|
|
26%
|
Current Tax (Benefit) /
Expense ($MM)
|
$
|
(35)
|
-
|
$
|
5
|
|
$
|
(85)
|
-
|
$
|
(45)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pricing - (Refer to
Benchmark Commodity Pricing in text)
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil and Condensate
($/Bbl)
|
|
|
|
|
|
|
|
|
|
|
|
Differentials
|
|
|
|
|
|
|
|
|
|
|
|
United States - above (below) WTI
|
$
|
0.00
|
-
|
$
|
0.60
|
|
$
|
(0.50)
|
-
|
$
|
1.50
|
Trinidad - above (below) WTI
|
$
|
(11.00)
|
-
|
$
|
(9.00)
|
|
$
|
(11.50)
|
-
|
$
|
(9.50)
|
Other International - above (below) WTI
|
$
|
0.00
|
-
|
$
|
4.00
|
|
$
|
(0.50)
|
-
|
$
|
1.50
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Liquids
|
|
|
|
|
|
|
|
|
|
|
|
Realizations as % of WTI
|
|
18%
|
-
|
|
26%
|
|
|
22%
|
-
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
($/Mcf)
|
|
|
|
|
|
|
|
|
|
|
|
Differentials
|
|
|
|
|
|
|
|
|
|
|
|
United States - above (below) NYMEX Henry Hub
|
$
|
(0.60)
|
-
|
$
|
(0.20)
|
|
$
|
(0.70)
|
-
|
$
|
(0.20)
|
|
|
|
|
|
|
|
|
|
|
|
|
Realizations
|
|
|
|
|
|
|
|
|
|
|
|
Trinidad
|
$
|
2.30
|
-
|
$
|
2.70
|
|
$
|
2.40
|
-
|
$
|
3.10
|
Other International
|
$
|
4.00
|
-
|
$
|
4.40
|
|
$
|
3.75
|
-
|
$
|
4.75
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/eog-resources-reports-outstanding-second-quarter-2019-results-generates-significant-returns-growth-and-cash-flow-at-lower-oil-prices-300895359.html
SOURCE EOG Resources, Inc.