EOG
$138.04
Eog Resources
($4.60)
(3.22%)
Earnings Details
3rd Quarter September 2022
Thursday, November 03, 2022 4:15:00 PM
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Summary

Eog Resources Misses

Eog Resources (EOG) reported 3rd Quarter September 2022 earnings of $3.71 per share on revenue of $7.6 billion. The consensus earnings estimate was $3.75 per share on revenue of $7.3 billion. The Earnings Whisper number was $4.03 per share. Revenue grew 59.3% on a year-over-year basis.

EOG Resources Inc explores for, develops, produces and markets crude oil and natural gas in the USA, Trinidad, United Kingdom, China, Argentina and, from time to time, select other international areas.

Results
Reported Earnings
$3.71
Earnings Whisper
$4.03
Consensus Estimate
$3.75
Reported Revenue
$7.59 Bil
Revenue Estimate
$7.29 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

EOG Resources Reports Third Quarter 2022 Results, Announces New Position in Utica Combo, Raises Regular Dividend 10% and Declares $1.50 per Share Special Dividend

HOUSTON, Nov. 3, 2022 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported third quarter 2022 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors.

Key Financial Results

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






3Q 2022


2Q 2022


3Q 2021



GAAP

Total Revenue

7,593


7,407


4,765



Net Income

2,854


2,238


1,095



Net Income Per Share

4.86


3.81


1.88



Net Cash Provided by Operating Activities

4,773


2,048


2,196



Total Expenditures

1,410


1,521


962



Current and Long-Term Debt

5,084


5,091


5,117



Cash and Cash Equivalents                                      

5,272

3,073

4,293



Debt-to-Total Capitalization                                        

17.6

%

18.6

%

19.0

%


Cash Operating Costs ($/Boe)                                      

10.89


10.12


10.00



General and  Administrative Costs ($/Boe)                                        

1.92


1.53


1.83





Non- GAAP

Adjusted Net Income

2,179


1,614


1,264



Adjusted Net Income Per Share

3.71


2.74


2.16



CFO before Changes in Working Capital

3,432


2,357


2,257



Capital Expenditures

1,166


1,071


891



Free Cash Flow

2,266


1,286


1,366



Net Debt

(188)


2,018


824



Net Debt-to-Total Capitalization

(0.8)

%

8.3

%

3.6

%


Cash Operating Costs ($/Boe)1

10.70


10.12


10.00



General and Administrative Costs ($/Boe)1

1.73


1.53


1.83











Third Quarter 2022 Highlights

  • Announced 395,000 net acre position in the Ohio Utica Shale
  • Declared regular quarterly dividend of $0.825 per share, a 10 percent increase and a $3.30 per share indicated annual rate
  • Declared special dividend of $1.50 per share
  • Earned adjusted net income of $2.2 billion, or $3.71 per share
  • Generated $2.3 billion of free cash flow
  • Oil, NGLs and natural gas production above guidance midpoints
  • Capital expenditures below guidance midpoint

Volumes and Capital Expenditures

 

 

 

Wellhead Volumes

 

 

3Q 2022

3Q 2022

Guidance
Midpoint

 

 

2Q 2022

 

 

3Q 2021


Crude Oil and Condensate (MBod)

465.1

461.0

464.1

449.5


Natural Gas Liquids (MBbld)

209.3

195.0

201.9

157.9


Natural Gas (MMcfd)

1,469

1,450

1,528

1,422


Total Crude Oil Equivalent (MBoed)

919.2

897.7

920.7

844.4




Capital Expenditures ($MM)

1,166

1,250

1,071

891


 

From Ezra Yacob, Chairman and Chief Executive Officer
"EOG is now operating seven significant resource basins with the addition of the Utica Combo in Ohio. Our growing multi-basin portfolio of high-return plays positions EOG for long-term sustainable value creation.

"Our multi-basin footprint reinforces several competitive advantages. It provides flexibility to allocate capital to the highest return projects across a diverse and improving inventory of future well locations. Operating in multiple basins also fosters innovation through diverse, high-performing teams creating new ideas at the field level that are then shared across our operations.

"Strong performance by our operating teams propelled third quarter production volumes and capital expenditures ahead of their targets, despite a challenging operating environment. We remain focused on applying new innovations and efficiencies to mitigate future inflationary cost pressures. We expect our multi-basin footprint, now with the addition of the Utica Combo play, will continue to lower EOG's overall cost of supply.

"EOG continues to get better. The decision to increase the regular dividend by 10 percent reflects our confidence in EOG's future. EOG is well positioned to improve returns going forward from an existing asset base of low-cost-of-supply wells, augmented by a growing roster of new emerging plays. We remain committed to returning cash through a sustainable, growing regular dividend, which is supported by our low cost structure and an impeccable balance sheet - now in a net cash positive position. EOG is in a better position than ever to deliver value for our shareholders and play a significant role in the long-term future of energy."

 

Third Quarter 2022 Financial Performance

Adjusted Earnings per Share 3Q 2022 vs 2Q 2022

Volumes
Total company crude oil production in 3Q of 465,100 Bopd was above the midpoint of the guidance range and up less than 1% compared with 2Q. NGL production increased 4% compared with 2Q and was also above the midpoint of the guidance range. Natural gas production declined 4% compared with 2Q primarily due to plant maintenance in Trinidad, but was above the midpoint of the guidance range.

Prices and Hedges
Crude oil and NGL prices declined in 3Q compared with 2Q while natural gas prices increased. Price declines were more than offset by a $1.3 billion reduction in cash paid for hedge settlements in 3Q compared with 2Q.

Per-Unit Costs and Other
Cash operating costs increased to $10.70 per BOE in 3Q compared with $10.12 per BOE in 2Q, primarily from gathering and processing, transportation, and lease and well costs. A lower DD&A rate partially offset the increase in cash operating costs.

Change in Cash 3Q 2022 vs 2Q 2022

Free Cash Flow
EOG generated cash flow from operations before changes in working capital of $3.43 billion in 3Q. The company incurred $1.17 billion of capital expenditures, resulting in $2.26 billion of free cash flow.

Working Capital and Dividends
Changes in working capital accounted for $1.25 billion of the increase in cash during 3Q, primarily due to a reduction in collateral posted in connection with financial commodity derivative contracts. EOG paid $1.31 billion in dividends in 3Q, including $874 million of special dividends.

 

Third Quarter 2022 Operating Performance

Lease and Well
Per-unit LOE costs increased $0.09 in 3Q compared with 2Q, within the guidance range. Higher fuel and water handling costs were the primary drivers of the increase.

Transportation, Gathering and Processing
Per-unit transportation and G&P costs in 3Q were both above the guidance midpoints and above 2Q primarily due to higher fuel prices.

General and Administrative
Per-unit G&A costs in 3Q were below the guidance midpoint because a transaction expected to occur in 3Q was not executed until 4Q. Per-unit costs in 3Q were above 2Q because of seasonally higher employee-related costs.

Depreciation, Depletion and Amortization
Per-unit DD&A costs in 3Q were below the guidance midpoint and decreased $0.16 compared with 2Q. The addition of lower-cost reserves drove the decrease.

 

Regular and Special Dividends and Ohio Utica

Regular Dividend Increased 10% to $3.30 per Share Indicated Annual Rate
The Board of Directors today declared a regular dividend of $0.825 per share on EOG's common stock. The dividend will be payable January 31, 2023, to stockholders of record as of January 17, 2023. The new dividend represents an indicated annual rate of $3.30 per share, a 10% increase from the previous level. The increase reflects improvements across the company during 2022 from sustainable efficiencies and innovations, progressing new and emerging plays, and increased financial strength. EOG has never suspended or reduced its regular dividend.

$1.50 per Share Special Dividend
The Board of Directors also today declared a special dividend of $1.50 per share on EOG's common stock. The special dividend will be payable December 30, 2022, to stockholders of record as of December 15, 2022. EOG has now committed to return $5.1 billion of cash to shareholders in 2022 through regular quarterly and special dividends.

Ohio Utica Combo Play
EOG has established a new position in the Ohio Utica Combo play, accumulating 395,000 net acres. The company has also acquired about 135,000 mineral acres in the southern portion of its acreage footprint. The combined cost of entry is less than $500 million.

The company has completed four wells and operates 18 additional legacy wells across a 140-mile trend. Initial drilling results confirm EOG's reservoir model, which is enhanced by experience across its multi-basin portfolio. It is also supported by extensive geotechnical and production analysis from within the play.

EOG expects the Utica Combo to be its next large-scale premium resource play. A favorable drilling environment and the opportunity to develop the play with three-mile laterals support cost efficiencies. Combined with strong liquids production rates, EOG expects the Utica Combo to be additive to the overall quality of its premium inventory. Development of this high rate-of-return play is underway with about 20 wells projected for 2023.

 

Third Quarter 2022 Results vs Guidance

(Unaudited)
See "Endnotes" below for related discussion and definitions.

 

 

Crude Oil and Condensate Volumes (MBod)

 

 

3Q 2022

3Q 2022

Guidance
Midpoint

 

 

Variance

 

 

2Q 2022

 

 

1Q 2022

 

 

4Q 2021


 

 

3Q 2021



United States

464.6

460.5

4.1

463.5

449.4

449.7


448.3


Trinidad

0.5

0.5

0.0

0.6

0.7

0.9


1.2


Other International

0.0

0.0

0.0

0.0

0.0

0.0


0.0


Total

465.1

461.0

4.1

464.1

450.1

450.6


449.5


Natural Gas Liquids Volumes (MBbld)


Total

209.3

195.0

14.3

201.9

190.3

156.9


157.9


Natural Gas Volumes (MMcfd)


United States

1,306

1,300

6

1,324

1,249

1,328


1,210


Trinidad

163

150

13

204

209

206


212


Other International

0

0

0

0

0

0


0


Total

1,469

1,450

19

1,528

1,458

1,534


1,422




Total Crude Oil Equivalent Volumes (MBoed)

919.2

897.7

21.5

920.7

883.3

863.1


844.4


Total MMBoe

84.6

82.6

2.0

83.8

79.5

79.4


77.7




Benchmark Price


Oil (WTI) ($/Bbl)

91.64



108.42

94.38

77.17


70.55


Natural Gas (HH) ($/Mcf)

8.18



7.17

4.91

5.83


4.01




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


United States

4.41

3.50

0.91

2.84

1.64

1.14


0.33


Trinidad

(6.66)

(9.00)

2.34

(10.13)

(10.56)

(10.31)


(10.36)


Natural Gas Liquids - Realizations as % of WTI


Total

39.3 %

38.0 %

1.3 %

39.0 %

42.1 %

52.4 %


53.5 %


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


United States

1.17

0.85

0.32

0.60

0.90

0.57


0.49


Natural Gas Realizations3 ($/Mcf)


Trinidad

7.45

7.30

0.15

3.42

3.36

3.48


3.39




Total Expenditures (GAAP) ($MM)

1,410



1,521

1,144

1,137


962


Capital Expenditures (non-GAAP) ($MM)

1,166

1,250

(84)

1,071

1,009

1,015


891




Operating Unit Costs ($/Boe)


Lease and Well

3.96

3.85

0.11

3.87

4.00

4.09


3.48


Transportation Costs

3.04

2.90

0.14

2.91

2.87

2.87


2.82


Gathering and Processing

1.97

1.85

0.12

1.81

1.81

1.85


1.87


General and Administrative (GAAP)

1.92



1.53

1.56

1.75


1.83


General and Administrative (non-GAAP)1

1.73

2.05

(0.32)

1.53

1.56

1.75


1.83


Cash Operating Costs (GAAP)

10.89



10.12

10.24

10.56


10.00


Cash Operating Costs (non-GAAP)

10.70

10.65

0.05

10.12

10.24

10.56


10.00


Depreciation, Depletion and Amortization

10.71

10.85

(0.14)

10.87

10.65

11.46


11.93




Expenses ($MM)


Exploration and Dry Hole

53

50

3

55

48

85


48


Impairment (GAAP)

94



91

55

206


82


Impairment (excluding certain impairments (non-GAAP))4

48

70

(22)

55

55

206


69


Capitalized Interest

11

8

3

7

8

9


8


Net Interest

41

45

(4)

48

48

38


48




TOTI (% of Wellhead Revenue) (GAAP)

5.5 %



7.3 %

7.4 %

6.8 %


6.8 %


TOTI (% of Wellhead Revenue) (non-GAAP)1

7.4 %

7.0 %

0.4 %

7.3 %

7.4 %

6.8 %


6.8 %


Income Taxes


Effective Rate

22.1 %

22.5 %

(0.4 %)

22.3 %

21.7 %

20.5 %


23.4 %


Current Tax (Benefit) / Expense ($MM)

481

460

21

745

573

393


446













Fourth Quarter and Full-Year 2022 Guidance5

(Unaudited) 
See "Endnotes" below for related discussion and definitions.



4Q 2022

Guidance Range

FY 2022

Guidance Range

2021

Actual

2020

Actual

Crude Oil and Condensate Volumes (MBod)










United States


460.4

-

468.4

459.4

-

461.4

443.4

408.1

Trinidad


0.4

-

0.8

0.5

-

0.7

1.5

1.0

Other International


0.0

-

0.0

0.0

-

0.0

0.1

0.1

Total


460.8

-

469.2

459.9

-

462.1

445.0

409.2

Natural Gas Liquids Volumes (MBbld)










Total


190.0

-

200.0

197.5

-

200.5

144.5

136.0

Natural Gas Volumes (MMcfd)










United States


1,360

-

1,440

1,300

-

1,330

1,210

1,040

Trinidad


135

-

165

175

-

185

217

180

Other International


0

-

0

0

-

0

9

32

Total


1,495

-

1,605

1,475

-

1,515

1,436

1,252

Crude Oil Equivalent Volumes (MBoed)










United States


877.1

-

908.4

873.6

-

883.6

789.6

717.5

Trinidad


22.9

-

28.3

29.7

-

31.5

37.7

30.9

Other International


0.0

-

0.0

0.0

-

0.0

1.6

5.4

Total


900.0

-

936.7

903.3

-

915.1

828.9

753.8











Benchmark Price










Oil (WTI) ($/Bbl)








67.96

39.40

Natural Gas (HH) ($/Mcf)








3.85

2.08











Crude Oil and Condensate Differentials - above (below) WTI6 ($/Bbl)

United States


2.20

-

3.20

2.81

-

3.02

0.58

(0.75)

Trinidad


(8.50)

-

(6.50)

(9.20)

-

(8.80)

(11.70)

(9.20)

Natural Gas Liquids - Realizations as % of WTI










Total


25.0 %

-

35.0 %

37.0 %

-

39.0 %

50.5 %

34.0 %

Natural Gas Differentials - above (below) NYMEX Henry Hub7 ($/Mcf)

United States


0.00

-

0.50

0.66

-

0.78

1.03

(0.47)

Natural Gas Realizations ($/Mcf)










Trinidad


3.60

-

4.10

4.37

-

4.45

3.40

2.57











Total Expenditures (GAAP) ($MM)








4,255

4,113

Capital Expenditures8 (non-GAAP) ($MM)


1,250

-

1,450

4,500

-

4,700

3,755

3,344











Operating Unit Costs ($/Boe)










Lease and Well


3.75

-

4.45

3.89

-

4.07

3.75

3.85

Transportation Costs


2.70

-

3.10

2.88

-

2.98

2.85

2.66

Gathering and Processing


1.80

-

2.00

1.85

-

1.90

1.85

1.66

General and Administrative


1.70

-

1.80

1.63

-

1.66

1.69

1.75

Cash Operating Costs


9.95

-

11.35

10.25

-

10.61

10.14

9.92

Depreciation, Depletion and Amortization


10.55

-

11.15

10.70

-

10.85

12.07

12.32











Expenses ($MM)










Exploration and Dry Hole


50

-

60

205

-

215

225

159

Impairment (GAAP)








376

2,100

Impairment (excluding certain impairments (non-GAAP))4


70

-

110

228

-

268

361

232

Capitalized Interest


10

-

15

36

-

41

33

31

Net Interest


40

-

45

177

-

182

178

205











TOTI (% of Wellhead Revenue)


7.0 %

-

8.0 %

7.0 %

-

8.0 %

6.8 %

6.6 %

Income Taxes










Effective Rate


20.0 %

-

25.0 %

20.0 %

-

25.0 %

21.4 %

18.2 %

Current Tax (Benefit) / Expense ($MM)


450

-

550

2,250

-

2,350

1,393

(61)











Third Quarter 2022 Results Webcast
Friday, November 4, 2022, 9:00 a.m. Central time (10:00 a.m. Eastern time) Webcast will be available on EOG's website for one year. http://investors.eogresources.com/Investors

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

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

Media Contact
Kimberly Ehmer 713-571-4676

Endnotes

1)

Third quarter 2022 TOTI (% of Wellhead Revenue) (non-GAAP) and General and Administrative Costs (non-GAAP) exclude a state severance tax refund and related consulting fees, respectively, as reflected in the accompanying Adjusted Net Income (Loss) reconciliation schedule.

2)

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

3)

The third quarter 2022 realized natural gas price for Trinidad includes a one-time pricing adjustment of $3.37/Mcf for prior- period production following a contract amendment with the National Gas Company of Trinidad and Tobago Limited (NGC).

4)

In general, EOG excludes impairments which are (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets). EOG believes excluding these impairments from total impairment costs is appropriate and provides useful information to investors, as such impairments were caused by factors outside of EOG's control (versus, for example, impairments that are due to EOG's proved oil and gas properties  not being as productive as it originally estimated).

5)

The forecast items for the fourth quarter and full year 2022 set forth above for EOG Resources, Inc. (EOG) are based on currently 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.

6)

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.

7)

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.

8)

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

 

Glossary


Acq

Acquisitions

ATROR

After-tax rate of return

Bbl

Barrel

Bn

Billion

Boe

Barrels of oil equivalent

Bopd

Barrels of oil per day

CAGR

Compound annual growth rate

Capex

Capital expenditures

CFO

Cash flow provided by operating activities before changes in working capital

CO2e

Carbon dioxide equivalent

DD&A

Depreciation, Depletion and Amortization

Disc

Discoveries

Divest

Divestitures

EPS

Earnings per share

Ext

Extensions

G&A

General and administrative expense

G&P

Gathering and processing expense

GHG

Greenhouse gas

HH

Henry Hub

LOE

Lease operating expense, or lease and well expense

MBbld

Thousand barrels of liquids per day

MBod

Thousand barrels of oil per day

MBoe

Thousand barrels of oil equivalent

MBoed

Thousand barrels of oil equivalent per day

Mcf

Thousand cubic feet of natural gas

MMBoe

Million barrels of oil equivalent

MMcfd

Million cubic feet of natural gas per day

NGLs

Natural gas liquids

NYMEX

U.S. New York Mercantile Exchange

OTP

Other than price

QoQ

Quarter over quarter

TOTI

Taxes other than income

Trans

Transportation expense

USD

United States dollar

WTI

West Texas Intermediate

YoY

Year over year

$MM

Million United States dollars

$/Bbl

U.S. Dollars per barrel

$/Boe

U.S. Dollars per barrel of oil equivalent

$/Mcf

U.S. Dollars per thousand cubic feet

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

  • the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities;
  • the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
  • the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion, operating and capital costs related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
  • the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas;
  • security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;
  • the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, and export facilities;
  • the availability, cost, terms and timing of issuance or execution of mineral licenses and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses and leases;
  • the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax legislation); environmental, health and safety laws and regulations relating to disposal of produced water,  drilling  fluids  and other wastes, hydraulic  fracturing  and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
  • the impact of climate change-related policies and initiatives at the corporate  and/or  investor community levels and other potential developments related to climate change, such as (but not limited to) changes in consumer and industrial/commercial behavior,  preferences  and attitudes with respect to the generation and consumption of energy; increased availability of, and increased consumer and industrial/commercial  demand for, competing energy sources (including alternative energy sources); technological advances with respect to the generation, transmission, storage and consumption of energy; alternative fuel requirements; energy conservation measures; decreased demand for, and availability of, services and facilities related to the exploration for, and production of, crude oil, NGLs and natural gas; and negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, crude oil, NGLs and natural gas;
  • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and drilling, completing and operating costs with respect to such properties;
  • the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations;
  • competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties;
  • the availability and cost of, and competition in the oil and gas exploration and production industry for, employees and other personnel, facilities, equipment, materials (such as water, sand and tubulars) and services;
  • the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
  • weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG  or third parties) of production, gathering, processing, refining, compression, storage, transportation, and export facilities;
  • the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
  • EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
  • the extent to which EOG is successful in its completion of planned asset dispositions;
  • the extent and effect of any hedging activities engaged in by EOG;
  • the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
  • the duration and economic and financial impact of epidemics, pandemics or other public health issues, including the COVID-19 pandemic;
  • geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
  • the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
  • acts of war and terrorism and responses to these acts; and
  • the other factors described under ITEM 1A, Risk Factors of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

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

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

 

Income Statements

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

3Q 2022

2Q 2022

3Q 2021

YTD 2022

YTD 2021


Operating Revenues and Other






Crude Oil and Condensate

4,109

4,699

2,929

12,697

7,879


Natural Gas Liquids

693

777

548

2,151

1,229


Natural Gas

1,235

1,000

568

2,951

1,597


Losses on Mark-to-Market Financial







Commodity Derivative Contracts

(18)

(1,377)

(494)

(4,215)

(1,288)


Gathering, Processing and Marketing

1,561

2,169

1,186

5,199

3,056


Gains (Losses) on Asset Dispositions, Net

(21)

97

1

101

46


Other, Net

34

42

27

99

79


Total

7,593

7,407

4,765

18,983

12,598









Operating Expenses







Lease and Well

335

324

270

977

810


Transportation Costs

257

244

219

729

635


Gathering and Processing Costs

167

152

145

463

412


Exploration Costs

35

35

44

115

112


Dry Hole Costs

18

20

4

41

28


Impairments

94

91

82

240

170


Marketing Costs

1,621

2,127

1,184

5,031

3,013


Depreciation, Depletion and Amortization

906

911

927

2,664

2,741


General and Administrative

162

128

142

414

372


Taxes Other Than Income

334

472

277

1,196

731


Total

3,929

4,504

3,294

11,870

9,024









Operating Income

3,664

2,903

1,471

7,113

3,574


Other Income, Net

40

27

6

66


Income Before Interest Expense and Income







Taxes

3,704

2,930

1,477

7,179

3,574


Interest Expense, Net

41

48

48

137

140


Income Before Income Taxes

3,663

2,882

1,429

7,042

3,434


Income Tax Provision

809

644

334

1,560

755


Net Income

2,854

2,238

1,095

5,482

2,679









Dividends Declared per Common Share

2.2500

2.5500

0.4125

6.5500

2.2375


Net Income Per Share







Basic

4.90

3.84

1.88

9.40

4.62


Diluted

4.86

3.81

1.88

9.34

4.59


Average Number of Common Shares







Basic

583

583

581

583

580


Diluted

587

588

584

587

584









 

Wellhead Volumes and Prices 

(Unaudited)









Crude Oil and Condensate Volumes
      (MBbld) (A)

3Q 2022 

3Q 2021

% Change

2Q 2022  

YTD 2022

YTD 2021

% Change

United States

464.6

448.3

4 %

463.5

459.2

441.3

4 %

Trinidad

0.5

1.2

-58 %

0.6

0.7

1.7

-59 %

Other International (B)


0.1

-100 %

Total

465.1

449.5

3 %

464.1

459.9

443.1

4 %

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








United States

$ 96.05

$ 70.88

36 %

$ 111.26

$ 101.16

$      65.18

55 %

Trinidad

84.98

60.19

41 %

98.29

88.84

54.33

64 %

Other International (B)


42.36

-100 %

Composite

96.04

70.85

36 %

111.25

101.14

65.14

55 %

Natural Gas Liquids Volumes (MBbld) (A)

United States

209.3

157.9

33 %

201.9

200.6

140.4

43 %

Total

209.3

157.9

33 %

201.9

200.6

140.4

43 %

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

United States

$ 36.02

$ 37.72

-4 %

$ 42.28

$      39.29

$      32.07

23 %

Composite

36.02

37.72

-4 %

42.28

39.29

32.07

23 %

Natural Gas Volumes (MMcfd) (A)








United States

1,306

1,210

8 %

1,324

1,293

1,170

11 %

Trinidad

163

212

-23 %

204

192

221

-13 %

Other International (B)


12

-100 %

Total

1,469

1,422

3 %

1,528

1,485

1,403

6 %

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

United States

$     9.35


$     4.50

108 %

$       7.77

$        7.68


$        4.30

79 %

Trinidad

7.45

(E)

3.39

120 %

3.42

4.55

(E)

3.38

35 %

Other International (B)




5.67

-100 %

Composite

9.14


4.34

111 %

7.19

7.28


4.17

75 %

Crude Oil Equivalent Volumes (MBoed) (D)

United States

891.6

807.9

10 %

886.1

875.3

776.8

13 %

Trinidad

27.6

36.5

-24 %

34.6

32.6

38.5

-15 %

Other International (B)


2.0

-100 %

Total

919.2

844.4

9 %

920.7

907.9

817.3

11 %









Total MMBoe (D)

84.6

77.7

9 %

83.8

247.8

223.1

11 %





(A)

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

(B)

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

(C)

Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022).

(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.

(E)

Includes revenue adjustment of $3.37 per Mcf and $0.96 per Mcf ($0.37 per Mcf and $0.12 per Mcf of EOG's composite wellhead natural gas price) for the quarter and year-to-date, respectively, related to a price adjustment per a provision of the natural gas sales contract with NGC amended in July 2022 for natural gas sales during the period from September 2020 through June 2022.



 

Balance Sheets

In millions of USD, except share data (Unaudited)









September 30,


December 31,




2022


2021


Current Assets






Cash and Cash Equivalents


5,272


5,209


Accounts Receivable, Net


3,343


2,335


Inventories


872


584


Income Taxes Receivable


93



Other


621


456


Total


10,201


8,584


Property, Plant and Equipment






Oil and Gas Properties (Successful Efforts Method)


67,065


67,644


Other Property, Plant and Equipment


4,659


4,753


Total Property, Plant and Equipment


71,724


72,397


Less: Accumulated Depreciation, Depletion and Amortization


(42,623)


(43,971)


Total Property, Plant and Equipment, Net


29,101


28,426


Deferred Income Taxes


18


11


Other Assets


1,167


1,215


Total Assets


40,487


38,236








Current Liabilities






Accounts Payable


2,718


2,242


Accrued Taxes Payable


542


518


Dividends Payable


437


436


Liabilities from Price Risk Management Activities


243


269


Current Portion of Long-Term Debt


1,282


37


Current Portion of Operating Lease Liabilities


235


240


Other


289


300


Total


5,746


4,042








Long-Term Debt


3,802


5,072


Other Liabilities


2,573


2,193


Deferred Income Taxes


4,517


4,749


Commitments and Contingencies












Stockholders' Equity






Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 587,891,710
        Shares Issued at September 30, 2022 and 585,521,512 Shares Issued at






                 December 31, 2021


206


206


Additional Paid in Capital


6,155


6,087


Accumulated Other Comprehensive Loss


(6)


(12)


Retained Earnings


17,563


15,919


Common Stock Held in Treasury, 646,861 Shares at September 30, 2022 and






257,268 Shares at December 31, 2021


(69)


(20)


Total Stockholders' Equity


23,849


22,180


Total Liabilities and Stockholders' Equity


40,487


38,236


 

Cash Flows Statements 

In millions of USD (Unaudited)










3Q 2022 

2Q 2022

3Q 2021

YTD 2022

YTD 2021


Cash Flows from Operating Activities







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







Net Income

2,854

2,238

1,095

5,482

2,679


Items Not Requiring (Providing) Cash







Depreciation, Depletion and Amortization

906

911

927

2,664

2,741


Impairments

94

91

82

240

170


Stock-Based Compensation Expenses

34

30

51

99

117


Deferred Income Taxes

327

(102)

(111)

(240)

(244)


(Gains) Losses on Asset Dispositions, Net

21

(97)

(1)

(101)

(46)


Other, Net

(5)

(16)

2

(15)

15


Dry Hole Costs

18

20

4

41

28


Mark-to-Market Financial Commodity Derivative Contracts Total Losses

18

1,377

494

4,215

1,288


Net Cash Payments for Settlements of Financial







Commodity Derivative Contracts

(847)

(2,114)

(293)

(3,257)

(516)


Other, Net

12

19

7

33

8


Changes in Components of Working Capital and Other
     Assets and Liabilities







Accounts Receivable

392

(522)

(145)

(1,008)

(639)


Inventories

(140)

(157)

(6)

(311)

95


Accounts Payable

(88)

259

(68)

301

115


Accrued Taxes Payable

(53)

(536)

206

24

286


Other Assets

(129)

71

167

(271)

(55)


Other Liabilities

1,269

433

(260)

(548)

(317)


Changes in Components of Working Capital Associated







with Investing Activities

90

143

45

301

(100)


Net Cash Provided by Operating Activities

4,773

2,048

2,196

7,649

5,625


Investing Cash Flows







Additions to Oil and Gas Properties

(1,102)

(1,349)

(846)

(3,390)

(2,689)


Additions to Other Property, Plant and Equipment

(103)

(75)

(50)

(248)

(147)


Proceeds from Sales of Assets

79

110

8

310

154


Other Investing Activities

(30)

(30)


Changes in Components of Working Capital Associated







with Investing Activities

(90)

(143)

(45)

(301)

100


Net Cash Used in Investing Activities

(1,216)

(1,487)

(933)

(3,659)

(2,582)


Financing Cash Flows







Long-Term Debt Repayments

(750)


Dividends Paid

(1,312)

(1,486)

(820)

(3,821)

(1,278)


Treasury Stock Purchased

(37)

(15)

(21)

(95)

(33)


Proceeds from Stock Options Exercised and Employee







Stock Purchase Plan

13

17

9


Repayment of Finance Lease Liabilities

(8)

(9)

(9)

(27)

(27)


Net Cash Used in Financing Activities

(1,357)

(1,497)

(850)

(3,926)

(2,079)


Effect of Exchange Rate Changes on Cash

(1)

(1)


Increase (Decrease) in Cash and Cash Equivalents

2,199

(936)

413

63

964


Cash and Cash Equivalents at Beginning of Period

3,073

4,009

3,880

5,209

3,329


Cash and Cash Equivalents at End of Period

5,272

3,073

4,293

5,272

4,293









 

Non-GAAP Financial Measures


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


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


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


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


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


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


Adjusted Net Income (Loss)

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


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

 


3Q 2022


Before
Tax


Income Tax
Impact


After
Tax


Diluted
Earnings per
Share










Reported Net Income (GAAP)

3,663


(809)


2,854


4.86

Adjustments:








Losses on Mark-to-Market Financial Commodity Derivative Contracts

18


(4)


14


0.03

Net Cash Payments for Settlements of Financial Commodity Derivative Contracts (1)

(847)


184


(663)


(1.13)

Add: Losses on Asset Dispositions, Net

21


(3)


18


0.03

Add: Certain Impairments

46


(8)


38


0.06

Less: Severance Tax Refund

(115)


25


(90)


(0.15)

Add: Severance Tax Consulting Fees

16


(3)


13


0.02

Less: Interest on Severance Tax Refund

(7)


2


(5)


(0.01)

Adjustments to Net Income

(868)


193


(675)


(1.15)









Adjusted Net Income (Non-GAAP)

2,795


(616)


2,179


3.71









Average Number of Common Shares (Non-GAAP)








Basic







583

Diluted







587



(1)

Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the third quarter of 2022, such amount was $847 million, of which $63 million was related to the early termination of certain contracts.



 

Adjusted Net Income (Loss)
(Continued)

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


2Q 2022


Before
Tax


Income Tax
Impact


After
Tax


Diluted
Earnings per
Share

















Reported Net Income (GAAP)

2,882


(644)


2,238


3.81

Adjustments:








Losses on Mark-to-Market Financial Commodity Derivative Contracts

1,377


(299)


1,078


1.82

     Net Cash Payments for Settlements of Financial Commodity
        Derivative Contracts

(2,114)


459


(1,655)


(2.81)

Less: Gains on Asset Dispositions, Net

(97)


21


(76)


(0.13)

Add: Certain Impairments

36


(7)


29


0.05

Adjustments to Net Income

(798)


174


(624)


(1.07)









Adjusted Net Income (Non-GAAP)

2,084


(470)


1,614


2.74









Average Number of Common Shares (Non-GAAP)








Basic







583

Diluted







588









 


3Q 2021


Before
Tax


Income Tax
Impact


After
Tax


Diluted
Earnings per
Share

















Reported Net Income (GAAP)

1,429


(334)


1,095


1.88

Adjustments:








Losses on Mark-to-Market Financial Commodity Derivative Contracts

494


(108)


386


0.65

Net Cash Payments for Settlements of Financial Commodity
   Derivative Contracts

(293)


64


(229)


(0.39)

Less: Gains on Asset Dispositions, Net

(1)



(1)


Add: Certain Impairments

13



13


0.02

Adjustments to Net Income

213


(44)


169


0.28









Adjusted Net Income (Non-GAAP)

1,642


(378)


1,264


2.16









Average Number of Common Shares (Non-GAAP)








Basic







581

Diluted







584









 

Adjusted Net Income Per Share

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






2Q 2022 Adjusted Net Income per Share (Non-GAAP)


2.74






Realized Price




3Q 2022 Composite Average Wellhead Revenue per Boe

71.40



Less: 2Q 2022 Composite Average Wellhead Revenue per Boe

(77.29)



Subtotal

(5.89)



Multiplied by: 3Q 2022 Crude Oil Equivalent Volumes (MMBoe)

84.6



Total Change in Revenue

(498)



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

115



Change in Net Income

(383)



Change in Diluted Earnings per Share


(0.65)






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




     3Q 2022 Net Cash Received from (Payments for) Settlement of Financial



Commodity Derivative Contracts

(847)



Less: Income Tax Benefit (Provision)

184



After Tax - (a)

(663)



2Q 2022 Net Cash Received from (Payments for) Settlement of Financial


Commodity Derivative Contracts

(2,114)



Less: Income Tax Benefit (Provision)

459



After Tax - (b)

(1,655)



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

992



Change in Diluted Earnings per Share


1.69






Wellhead Volumes




    3Q 2022 Crude Oil Equivalent Volumes (MMBoe)

84.6



 Less: 2Q 2022 Crude Oil Equivalent Volumes (MMBoe)

(83.8)



Subtotal

0.8



Multiplied by: 3Q 2022 Composite Average Margin per Boe (Non-GAAP) (Including
    Total Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil


        Equivalent" schedule)

43.00



Change in Revenue

34



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

(8)



Change in Net Income

26



Change in Diluted Earnings per Share


0.04






Operating Cost per Boe




    2Q 2022 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration
         Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
         schedule)

28.50



     Less: 2Q 2022 Taxes Other Than Income

(5.63)



 Less: 3Q 2022 Total Operating Cost per Boe (Non-GAAP) (including Total
     Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil
     Equivalent" schedule)

(28.40)



Add: 3Q 2022 Taxes Other Than Income (Non-GAAP)

5.31



Subtotal

(0.22)



Multiplied by: 3Q 2022 Crude Oil Equivalent Volumes (MMBoe)

84.6



Change in Before-Tax Net Income

(19)



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

4



Change in Net Income

(15)



Change in Diluted Earnings per Share


(0.03)






Other (1)


(0.08)






3Q 2022 Adjusted Net Income per Share (Non-GAAP)


3.71






3Q 2022 Average Number of Common Shares (Non-GAAP) - Diluted

587





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

 

Cash Flow from Operations and Free Cash Flow

In millions of USD (Unaudited)



The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Cash Flow from Operations Before Working Capital (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 Changes in Components of Working Capital and Other Assets and Liabilities, Changes in Components of Working Capital Associated with Investing and Financing Activities and certain other adjustments to exclude non- recurring and certain other items as further described below. EOG defines Free Cash Flow (Non-GAAP) for a given period as Cash Flow from Operations Before Working Capital (Non-GAAP) (see below reconciliation) for such period less the total capital expenditures (Non-GAAP) during such period, as is illustrated below. EOG management uses this information for comparative purposes within the industry. To further the comparability of EOG's financial results with those of EOG's peer companies and other companies in the industry, EOG now utilizes Cash Flow from Operations Before Working Capital (Non-GAAP), instead of Discretionary Cash Flow (Non- GAAP), in calculating its Free Cash Flow (Non-GAAP). Accordingly, Free Cash Flow (Non-GAAP) for the third quarter 2022, second quarter 2022 and nine-month period ended September 30, 2022 have been calculated on such basis, and the calculations of Free Cash Flow (Non-GAAP) for each of the prior periods shown have been revised and conformed.




3Q 2022


2Q 2022


3Q 2021


YTD 2022


YTD 2021











Net Cash Provided by Operating Activities (GAAP)

 

 

4,773


 

 

2,048


 

 

2,196


 

 

7,649


 

 

5,625





















Adjustments:










Changes in Components of Working Capital and
     Other Assets and Liabilities










Accounts Receivable

(392)


522


145


1,008


639

Inventories

140


157


6


311


(95)

Accounts Payable

88


(259)


68


(301)


(115)

Accrued Taxes Payable

53


536


(206)


(24)


(286)

Other Assets

129


(71)


(167)


271


55

Other Liabilities

(1,269)


(433)


260


548


317

Changes in Components of Working Capital
     Associated with Investing Activities

(90)


(143)


(45)


(301)


100

Cash Flow from Operations Before Working Capital
   (Non-GAAP)

3,432


2,357


2,257


9,161


6,240





















Cash Flow from Operations Before Working Capital
   (Non-GAAP)

3,432


2,357


2,257


9,161


6,240

Less:










Total Capital Expenditures (Non-GAAP) (a)

(1,166)


(1,071)


(891)


(3,246)


(2,740)

Free Cash Flow (Non-GAAP)

2,266


1,286


1,366


5,915


3,500











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












3Q 2022


2Q 2022


3Q 2021


YTD 2022


YTD 2021

 

Total Expenditures (GAAP)

 

1,410


 

1,521


 

962


 

4,075


 

3,118

Less:










Asset Retirement Costs

(139)


(43)


(8)


(209)


(56)

Non-Cash Acquisition Costs of Unproved










Properties

(28)


(21)


(15)


(107)


(37)

Non-Cash Finance Leases








(74)

Acquisition Costs of Proved Properties

(42)


(351)


(4)


(398)


(99)

Exploration Costs

(35)


(35)


(44)


(115)


(112)

Total Capital Expenditures (Non-GAAP)

1,166


1,071


891


3,246


2,740











 

Net Debt-to-Total Capitalization Ratio

In millions of USD, except ratio data (Unaudited)


The following tables reconcile Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation. A portion of the cash is associated with international subsidiaries; tax considerations may impact debt paydownEOG 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.



September 30,


June 30,


September 30,

2022


2022


2021







Total Stockholders' Equity - (a)

23,849


22,312


21,765

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

5,084


5,091


5,117

Less: Cash

(5,272)


(3,073)


(4,293)

Net Debt (Non-GAAP) - (c)

(188)


2,018


824

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

28,933


27,403


26,882

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

23,661


24,330


22,589

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

17.6 %


18.6 %


19.0 %

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

-0.8 %


8.3 %


3.6 %

 

Cision View original content:https://www.prnewswire.com/news-releases/eog-resources-reports-third-quarter-2022-results-announces-new-position-in-utica-combo-raises-regular-dividend-10-and-declares-1-50-per-share-special-dividend-301668311.html

SOURCE EOG Resources, Inc.