EOG
$108.38
Eog Resources
$2.89
2.74%
Earnings Details
Quarter December 2022
Thursday, February 23, 2023 4:15:00 PM
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Summary

Eog Resources Beats

Eog Resources (EOG) reported Quarter December 2022 earnings of $3.30 per share on revenue of $6.7 billion. The consensus earnings estimate was $3.31 per share on revenue of $6.4 billion. The Earnings Whisper number was $3.29 per share. Revenue grew 11.2% 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
$3.30
Earnings Whisper
$3.29
Consensus Estimate
$3.31
Reported Revenue
$6.72 Bil
Revenue Estimate
$6.39 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

EOG Resources Reports Fourth Quarter and Full-Year 2022 Results; Announces 2023 Capital Plan

HOUSTON, Feb. 23, 2023 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported fourth quarter and full-year 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





4Q 2022


3Q 2022


4Q 2021


FY 2022


FY 2021


GAAP

Total Revenue


6,719


7,593


6,044


25,702


18,642


Net Income


2,277


2,854


1,985


7,759


4,664


Net Income Per Share


3.87


4.86


3.39


13.22


7.99


Net Cash Provided by Operating Activities


3,444


4,773


3,166


11,093


8,791


Total Expenditures


1,535


1,410


1,137


5,610


4,255


Current and Long-Term Debt


5,078


5,084


5,109


5,078


5,109


Cash and Cash Equivalents


5,972

5,272

5,209

5,972

5,209


Debt-to-Total Capitalization


17.0

%

17.6

%

18.7

%

17.0

%

18.7

%

Cash Operating Costs ($/Boe)


10.82


10.89


10.56


10.52


10.14


General and Administrative Costs ($/Boe)


1.87


1.92


1.75


1.72


1.69



Non- GAAP

Adjusted Net Income


1,941


2,179


1,806


8,080


5,028


Adjusted Net Income Per Share


3.30


3.71


3.09


13.76


8.61


CFO before Changes in Working Capital


3,091


3,432


3,069


12,252


9,309


Capital Expenditures


1,361


1,166


1,015


4,607


3,755


Free Cash Flow


1,730


2,266


2,054


7,645


5,554


Net Debt


(894)


(188)


(100)


(894)


(100)


Net Debt-to-Total Capitalization


(3.7)

%

(0.8)

%

(0.5)

%

(3.7)

%

(0.5)

%

Cash Operating Costs ($/Boe)1


10.82


10.70


10.56


10.47


10.14


General and Administrative Costs ($/Boe)1


1.87


1.73


1.75


1.67


1.69


 

Fourth Quarter Highlights

  • Earned adjusted net income of $1.9 billion, or $3.30 per share
  • Generated $1.7 billion of free cash flow
  • Declared regular quarterly dividend of $0.825 per share and special dividend of $1.00 per share
  • Oil production above guidance midpoint with capital expenditures within 1% of guidance midpoint

Full Year 2022 Highlights and 2023 Capital Plan

  • Generated $7.6 billion free cash flow and returned $5.1 billion to shareholders
  • Offset most inflation to deliver total production above original plan for capex 2% above original plan
  • Replaced 244% of 2022 production at finding and development cost of $5.13 per Boe
  • Reduced GHG intensity and methane percentage to achieve 2025 targets
  • Announced $6.0 billion capital plan to grow oil production 3% and total production 9%

 

Fourth Quarter and Full-Year 2022 Highlights

Volumes and Capital Expenditures

Wellhead Volumes

4Q 2022


4Q 2022 
Guidance
Midpoint


3Q 2022


4Q 2021


FY 2022


FY 2021

Crude Oil and Condensate (MBod)

465.6


465.0


465.1


450.6


461.3


445.0

Natural Gas Liquids (MBbld)

189.0


195.0


209.3


156.9


197.7


144.5

Natural Gas (MMcfd)

1,527


1,550


1,469


1,534


1,495


1,436

Total Crude Oil Equivalent (MBoed)

909.1


918.4


919.2


863.1


908.2


828.9


Cash Capital Expenditures before Acquisitions ($MM)

1,361


1,350


1,166


1,015


4,607


3,755

 

From Ezra Yacob, Chairman and Chief Executive Officer

"EOG's 2022 results benefited from our growing portfolio of high-return plays. In a challenging inflationary environment, we leveraged the flexibility provided by our multi-basin plays and decentralized structure to deliver exceptional performance that was within two percent of our original plan for volumes and capital expenditures. Credit goes to the innovative and entrepreneurial teams working collaboratively across our multi-basin portfolio.

"Our commitment to decentralized exploration resulted in the addition of a new premium play – the Ohio Utica Combo – and advancements in our other emerging plays, South Texas Dorado and Southern Powder River Basin. We also progressed several exploration prospects.

"We reduced our GHG intensity and methane emissions percentage, achieving our 2025 targets. We also deployed a new continuous leak detection system called iSenseSM and recently began operations at our first carbon capture and storage site.

"EOG's financial performance was equally strong, highlighted by record net income and returns on capital. We returned $5.1 billion to shareholders, representing 67% of free cash flow, well above our minimum 60% commitment. The strong price environment in 2022 also allowed us to improve our financial position, reducing net debt by $794 million.

"EOG is in a better position than ever to play a significant role in the long-term future of energy and deliver value for our shareholders. And we continue to get better - our 2023 plan positions us to continue to lower our cost structure. 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."

 

Fourth Quarter 2022 Financial Performance

Earnings per Share 4Q 2022 vs 3Q 2022

Prices

  • Crude oil, NGL and natural gas prices declined in 4Q compared with 3Q

Volumes

  • Total 4Q oil production of 465,600 Bopd was above the midpoint of the guidance range and up 500 Bopd from 3Q
  • NGL production decreased 10% from 3Q and increased 20% from the prior year period, primarily driven by changes in the amount of ethane extraction
  • Natural gas production increased 4% from 3Q
  • Total company equivalent production declined 1% from 3Q

Per-Unit Costs

  • DD&A, transportation and gathering and processing costs decreased in 4Q compared with 3Q, partially offset by higher lease and well expenses (LOE)

Hedges

  • Lower commodity prices in 4Q were partially offset by increased earnings related to hedging

Change in Cash 4Q 2022 vs 3Q 2022

Free Cash Flow

  • Cash flow from operations before changes in working capital was $3.1 billion in 4Q
  • EOG incurred $1.4 billion of capital expenditures
  • This resulted in $1.7 billion of free cash flow

Working Capital and Dividends

  • Changes in working capital accounted for $0.3 billion of the increase in cash during 4Q
  • EOG paid $1.3 billion in dividends in 4Q, including $876 million of special dividends

 

Full-Year 2022 Financial Performance

Earnings per Share 2022 vs 2021

Prices

  • Crude oil prices increased 42%
  • Natural gas prices increased 49%
  • Prices for NGLs increased 7%

Volumes

  • Crude oil volumes increased 4% to 461,300 Bopd
  • NGL volumes increased 37%, supported by increased extraction of ethane
  • Natural gas production increased 4%
  • Total company equivalent production increased 10%

Per-Unit Costs

  • DD&A costs decreased in 2022, partially offset by higher lease and well expenses (LOE)

Hedges

  • Higher commodity prices in 2022 were partially offset by lower earnings related to hedging

Change in Cash 2022 vs 2021

Free Cash Flow

  • Cash flow from operations before changes in working capital was $12.2 billion in 2022
  • EOG incurred $4.6 billion of capital expenditures
  • This resulted in $7.6 billion of free cash flow

Dividends

  • EOG paid $3.00 per share in regular dividends and $5.80 per share in special dividends during 2022
  • EOG returned a total of $5.1 billion in 2022, representing 67% of free cash flow

 

Fourth Quarter 2022 Operating Performance

Lease and Well
Per-unit LOE costs increased $0.27 in 4Q compared with 3Q and were within the guidance range. Higher well maintenance and water handling costs were the primary drivers of the increase.

Transportation, Gathering and Processing
Per-unit transportation and G&P costs declined in 4Q and were below the guidance midpoints, primarily due to lower fuel prices.

General and Administrative
Per-unit G&A costs in 4Q were above the guidance range and prior quarter because of higher employee-related expenses.

Depreciation, Depletion and Amortization
Per-unit DD&A costs in 4Q decreased $0.21 compared with 3Q and were below the guidance range. The addition of lower-cost reserves in the Delaware Basin drove most of the decrease.

 

2022 Reserves; Regular and Special Dividend

Finding and Development Cost
Finding and development cost, excluding price revisions, decreased 8% in 2022 to $5.13 per Boe. Proved developed finding cost, excluding price revisions, was $6.62 per Boe in 2022. For the 35th consecutive year, internal reserves estimates were within five percent of estimates independently prepared by DeGolyer and McNaughton.

Reserve Replacement
Total proved reserves increased 13% in 2022. Extensions and discoveries added 560 MMBoe of proved reserves in 2022. Revisions other than price increased proved reserves by 325 MMBoe. Net proved reserve additions from all sources, excluding price revisions, replaced 244% of 2022 total production and 279% of liquids production.

Regular Dividend and Special Dividend
The Board of Directors today declared a dividend of $0.825 per share on EOG's common stock. The dividend will be payable April 28, 2023, to stockholders of record as of April 14, 2023. The indicated annual rate is $3.30 per share. The Board of Directors today also declared a special dividend of $1.00 per share on EOG's Common Stock. The special dividend will be payable March 30, 2023, to stockholders of record as of March 16, 2023.

 

2022 ESG Performance3 – Approximate Preliminary Results
EOG reduced its Scope 1 GHG intensity rate by 4% and its methane emissions percentage by 17% during 2022 to meet the company's 2025 targets. Wellhead gas capture increased to 99.9% from 99.8% in 2021. Water sourced from reuse increased to 58% from 55% in 2021.

2023 Capital Program
Total expenditures for 2023 are expected to range from $5.8 to $6.2 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, other property, plant and equipment, and excluding property acquisitions, asset retirement costs and non-cash exchanges. The capital program also excludes certain exploration costs incurred as operating expenses.

The disciplined capital program is allocated across EOG's high-return, multi-basin drilling portfolio. It is anchored by steady development in the Delaware Basin, with increased activity focused on the Eagle Ford and on EOG's emerging premium plays - the Powder River Basin, South Texas Dorado and Ohio Utica Shale.

About $4.4 billion of the capital program is allocated to EOG's existing and emerging premium areas. The capital program also funds investment in international plays, high-potential exploration and environmental and infrastructure projects.

Fourth Quarter 2022 Results vs Guidance 

(Unaudited) 

See "Endnotes" below for related discussion and definitions. 








Crude Oil and Condensate Volumes (MBod)

4Q 2022

4Q 2022
Guidance
Midpoint

Variance

3Q 2022

2Q 2022

 1Q 2022

4Q 2021

United States

465.1

464.4

0.7

464.6

463.5

449.4

449.7

Trinidad

0.5

0.6

(0.1)

0.5

0.6

0.7

0.9

Other International

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Total

465.6

465.0

0.6

465.1

464.1

450.1

450.6

Natural Gas Liquids Volumes (MBbld)

Total

189.0

195.0

(6.0)

209.3

201.9

190.3

156.9

Natural Gas Volumes (MMcfd)

United States

1,378

1,400

(22)

1,306

1,324

1,249

1,328

Trinidad

149

150

(1)

163

204

209

206

Other International

0

0

0

0

0

0

0

Total

1,527

1,550

(23)

1,469

1,528

1,458

1,534


Total Crude Oil Equivalent Volumes (MBoed)

909.1

918.4

(9.3)

919.2

920.7

883.3

863.1

Total MMBoe

83.6

84.5

(0.9)

84.6

83.8

79.5

79.4


Benchmark Price

Oil (WTI) ($/Bbl)

82.63



91.64

108.42

94.38

77.17

Natural Gas (HH) ($/Mcf)

6.27



8.18

7.17

4.91

5.83


Crude Oil and Condensate - above (below) WTI8 ($/Bbl)

United States

3.05

2.70

0.35

4.41

2.84

1.64

1.14

Trinidad

(7.42)

(7.50)

0.08

(6.66)

(10.13)

(10.56)

(10.31)

Natural Gas Liquids - Realizations as % of WTI

Total

34.6 %

30.0 %

4.6 %

39.3 %

39.0 %

42.1 %

52.4 %

Natural Gas - above (below) NYMEX Henry Hub9 ($/Mcf)

United States

(0.15)

0.25

(0.40)

1.17

0.60

0.90

0.57

Natural Gas Realizations6 ($/Mcf)

Trinidad

3.97

3.85

0.12

7.45

3.42

3.36

3.48


Total Expenditures (GAAP) ($MM)

1,535



1,410

1,521

1,144

1,137

Capital Expenditures (non-GAAP) ($MM)

1,361

1,350

11

1,166

1,071

1,009

1,015


Operating Unit Costs ($/Boe)

Lease and Well

4.23

4.10

0.13

3.96

3.87

4.00

4.09

Transportation Costs

2.83

2.90

(0.07)

3.04

2.91

2.87

2.87

Gathering and Processing

1.89

1.90

(0.01)

1.97

1.81

1.81

1.85

General and Administrative (GAAP)

1.87

1.75

0.12

1.92

1.53

1.56

1.75

General and Administrative (non-GAAP)1

1.87

1.75

0.12

1.73

1.53

1.56

1.75

Cash Operating Costs (GAAP)

10.82

10.65

0.17

10.89

10.12

10.24

10.56

Cash Operating Costs (non-GAAP)

10.82

10.65

0.17

10.70

10.12

10.24

10.56

Depreciation, Depletion and Amortization

10.50

10.85

(0.35)

10.71

10.87

10.65

11.46


Expenses ($MM)

Exploration and Dry Hole

48

55

(7)

53

55

48

85

Impairment (GAAP)

142



94

91

55

206

Impairment (excluding certain impairments (non-GAAP))7

111

90

21

48

55

55

206

Capitalized Interest

11

13

(2)

11

7

8

9

Net Interest

42

43

(1)

41

48

48

38


TOTI (% of Wellhead Revenue) (GAAP)

7.8 %

7.5 %

0.3 %

5.5 %

7.3 %

7.4 %

6.8 %

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

7.8 %

7.5 %

0.3 %

7.4 %

7.3 %

7.4 %

6.8 %

Income Taxes

Effective Rate

20.4 %

22.5 %

(2.1 %)

22.1 %

22.3 %

21.7 %

20.5 %

Current Tax (Benefit) / Expense ($MM)

409

500

(91)

481

745

573

393

 

First Quarter and Full-Year 2023 Guidance4

(Unaudited) 

See "Endnotes" below for related discussion and definitions.

1Q 2023

Guidance Range

1Q 2023
Midpoint

FY 2023

Guidance Range

FY 2023

Midpoint

2022

Actual

2021

Actual

2020

Actual

Crude Oil and Condensate Volumes (MBod)












United States

449.0

-

459.0

454.0

468.5

-

478.5

473.5

460.7

443.4

408.1

Trinidad

0.4

-

0.6

0.5

0.2

-

0.4

0.3

0.6

1.5

1.0

Other International

0.0

-

0.0

0.0

0.0

-

0.0

0.0

0.0

0.1

0.1

Total

449.4

-

459.6

454.5

468.7

-

478.9

473.8

461.3

445.0

409.2

Natural Gas Liquids Volumes (MBbld)












Total

199.0

-

209.0

204.0

197.0

-

247.0

222.0

197.7

144.5

136.0

Natural Gas Volumes (MMcfd)












United States

1,390

-

1,460

1,425

1,545

-

1,645

1,595

1,315

1,210

1,040

Trinidad

135

-

165

150

125

-

165

145

180

217

180

Other International

0

-

0

0

0

-

0

0

0

9

32

Total

1,525

-

1,625

1,575

1,670

-

1,810

1,740

1,495

1,436

1,252

Crude Oil Equivalent Volumes (MBoed)












United States

879.7

-

911.3

895.5

923.0

-

999.7

961.4

877.5

789.6

717.5

Trinidad

22.9

-

28.1

25.5

21.0

-

27.9

24.5

30.7

37.7

30.9

Other International

0.0

-

0.0

0.0

0.0

-

0.0

0.0

0.0

1.6

5.4

Total

902.6

-

939.4

921.0

944.0

-

1,027.6

985.9

908.2

828.9

753.8













Benchmark Price












Oil (WTI) ($/Bbl)









94.23

67.96

39.40

Natural Gas (HH) ($/Mcf)









6.64

3.85

2.08













Crude Oil and Condensate - above (below) WTI8 ($/Bbl)












United States

0.00

-

1.00

0.50

0.00

-

2.00

1.00

2.99

0.58

(0.75)

Trinidad

(9.00)

-

(7.00)

(8.00)

(9.00)

-

(7.00)

(8.00)

(8.07)

(11.70)

(9.20)

Natural Gas Liquids - Realizations as % of WTI












Total

27.0 %

-

37.0 %

32.0 %

27.0 %

-

39.0 %

33.0 %

39.0 %

50.5 %

34.0 %

Natural Gas - above (below) NYMEX Henry Hub9 ($/Mcf)












United States

0.00

-

0.40

0.20

(0.80)

-

1.20

0.20

0.63

1.03

(0.47)

Natural Gas Realizations6 ($/Mcf)












Trinidad

3.00

-

4.00

3.50

3.25

-

4.25

3.75

4.43

3.40

2.57













Total Expenditures (GAAP) ($MM)









5,610

4,255

4,113

Capital Expenditures5 (non-GAAP) ($MM)

1,500

-

1,700

1,600

5,800

-

6,200

6,000

4,607

3,755

3,344













Operating Unit Costs ($/Boe)












Lease and Well

4.10

-

4.70

4.40

3.85

-

4.50

4.18

4.02

3.75

3.85

Transportation Costs

2.80

-

3.20

3.00

2.70

-

3.10

2.90

2.91

2.85

2.66

Gathering and Processing

1.80

-

2.00

1.90

1.72

-

2.02

1.87

1.87

1.85

1.66

General and Administrative (GAAP)

1.60

-

2.00

1.80

1.65

-

1.75

1.70

1.72

1.69

1.75

General and Administrative (non-GAAP)1









1.67

1.69

1.75

Cash Operating Costs (GAAP)

10.30

-

11.90

11.10

9.92

-

11.37

10.65

10.52

10.14

9.92

Cash Operating Costs (non-GAAP)









10.47

10.14

9.92

Depreciation, Depletion and Amortization

9.40

-

10.60

10.00

9.50

-

10.50

10.00

10.69

12.07

12.32













Expenses ($MM)












Exploration and Dry Hole

45

-

85

65

170

-

230

200

204

225

159

Impairment (GAAP)









382

376

2,100

Impairment (excluding certain impairments (non-GAAP))7

50

-

150

100

200

-

360

280

269

361

232

Capitalized Interest

8

-

12

10

37

-

41

39

36

33

31

Net Interest

39

-

43

41

138

-

142

140

179

178

205













TOTI (% of Wellhead Revenue) (GAAP)

7.5 %

-

9.5 %

8.5 %

7.0 %

-

9.0 %

8.0 %

7.0 %

6.8 %

6.6 %

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









7.5 %

6.8 %

6.6 %

Income Taxes












Effective Rate

19.0 %

-

24.0 %

21.5 %

19.0 %

-

24.0 %

21.5 %

21.7 %

21.4 %

18.2 %

Current Tax (Benefit) / Expense ($MM)

310

-

410

360

1,200

-

1,600

1,400

2,208

1,393

(61)

 

Fourth Quarter 2022 Results Webcast
Friday, February 24, 2023, 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
Shelby O'Connor 713-571-4560

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, gains (losses) on asset dispositions, other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.

3)

The data utilized in calculating these metrics is subject to certain reporting rules, regulatory reviews, definitions, calculation methodologies, adjustments and other factors. These metrics are subject to change, if updated data or other information becomes available. Any updates to these metrics will be set forth in materials posted to the Sustainability section of the EOG website. 2022 metrics remain subject to final verification. Comparisons relative to prior year end reflect rounding.

4)

The forecast items for the first quarter and full year 2023 set forth above for EOG are based on currently available information and expectations as of the date of this 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 this press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.

5)

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.

6)

The third quarter and full-year 2022 realized natural gas price for Trinidad includes a one-time pricing adjustment of $3.37/Mcf and $0.76/Mcf, respectively, for prior-period production following a contract amendment with the National Gas Company of Trinidad and Tobago Limited (NGC).

7)

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).

8)

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.

9)

EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the NYMEX Last Day Settle price for each of the applicable months.

 

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 financial or 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 drilling, completion and 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 such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. 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 and operating costs and capital expenditures 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 success of EOG's cost-mitigation initiatives and actions in offsetting the impact of inflationary pressures on EOG's operating costs and capital expenditures;
  • 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 and emissions-related 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, NGLs and natural gas; laws and regulations with respect to financial 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 and emissions-related legislation; 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;
  • continuing political and social concerns relating to climate change and the greater potential for shareholder activism, governmental inquiries and enforcement actions and litigation and the resulting expenses and potential disruption to EOG's day-to-day operations;
  • the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other ESG-related initiatives and achieve its related targets and initiatives;
  • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures 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, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel 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;
  • 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, 2022 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, 2022, 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)






4Q 2022


3Q 2022


4Q 2021


FY 2022


FY 2021

Operating Revenues and Other










Crude Oil and Condensate

3,670


4,109


3,246


16,367


11,125

Natural Gas Liquids

497


693


583


2,648


1,812

Natural Gas

830


1,235


847


3,781


2,444

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

233


(18)


136


(3,982)


(1,152)

Gathering, Processing and Marketing

1,497


1,561


1,232


6,696


4,288

Gains (Losses) on Asset Dispositions, Net

(27)


(21)


(29)


74


17

Other, Net

19


34


29


118


108

Total

6,719


7,593


6,044


25,702


18,642











Operating Expenses










Lease and Well

354


335


325


1,331


1,135

Transportation Costs

237


257


228


966


863

Gathering and Processing Costs

158


167


147


621


559

Exploration Costs

44


35


42


159


154

Dry Hole Costs

4


18


43


45


71

Impairments

142


94


206


382


376

Marketing Costs

1,504


1,621


1,160


6,535


4,173

Depreciation, Depletion and Amortization

878


906


910


3,542


3,651

General and Administrative

156


162


139


570


511

Taxes Other Than Income

389


334


316


1,585


1,047

Total

3,866


3,929


3,516


15,736


12,540











Operating Income

2,853


3,664


2,528


9,966


6,102

Other Income, Net

48


40


9


114


9

Income Before Interest Expense and Income
   Taxes

2,901


3,704


2,537


10,080


6,111

Interest Expense, Net

42


41


38


179


178

Income Before Income Taxes

2,859


3,663


2,499


9,901


5,933

Income Tax Provision

582


809


514


2,142


1,269

Net Income

2,277


2,854


1,985


7,759


4,664











Dividends Declared per Common Share

2.3250


2.2500


2.7500


8.8750


4.9875

Net Income Per Share










Basic

3.90


4.90


3.42


13.31


8.03

Diluted

3.87


4.86


3.39


13.22


7.99

Average Number of Common Shares










Basic

584


583


581


583


581

Diluted

588


587


585


587


584

 

Wellhead Volumes and Prices

(Unaudited)




4Q 2022


4Q 2021


% Change


3Q 2022


FY 2022


FY 2021


% Change















Crude Oil and Condensate Volumes
   (MBbld) (A)












United States

465.1


449.7


3 %


464.6


460.7


443.4


4 %

Trinidad

0.5


0.9


-44 %


0.5


0.6


1.5


-60 %

Other International (B)







0.1


-100 %

Total

465.6


450.6


3 %


465.1


461.3


445.0


4 %















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














United States

$  85.68


$  78.31


9 %


$    96.05


$      97.22


$      68.54


42 %

Trinidad

75.21


66.86


12 %


84.98


86.16


56.26


53 %

Other International (B)







42.36


-100 %

Composite

85.67


78.29


9 %


96.04


97.21


68.50


42 %















Natural Gas Liquids Volumes (MBbld) (A)














United States

189.0


156.9


20 %


209.3


197.7


144.5


37 %

Total

189.0


156.9


20 %


209.3


197.7


144.5


37 %















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














United States

$  28.55


$  40.40


-29 %


$    36.02


$      36.70


$      34.35


7 %

Composite

28.55


40.40


-29 %


36.02


36.70


34.35


7 %















Natural Gas Volumes (MMcfd) (A)














United States

1,378


1,328


4 %


1,306


1,315


1,210


9 %

Trinidad

149


206


-28 %


163


180


217


-17 %

Other International (B)







9


-100 %

Total

1,527


1,534


0 %


1,469


1,495


1,436


4 %















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














United States

$     6.12


$     6.40


-4 %


$       9.35


$        7.27


$        4.88


49 %

Trinidad

3.97


3.48


14 %


7.45

(E)

4.43

(E)

3.40


30 %

Other International (B)







5.67


-100 %

Composite

5.91


6.00


-2 %


9.14


6.93


4.66


49 %















Crude Oil Equivalent Volumes (MBoed)
   (D)














United States

883.8


827.8


7 %


891.6


877.5


789.6


11 %

Trinidad

25.3


35.3


-28 %


27.6


30.7


37.7


-19 %

Other International (B)







1.6


-100 %

Total

909.1


863.1


5 %


919.2


908.2


828.9


10 %















Total MMBoe (D)

83.6


79.4


5 %


84.6


331.5


302.5


10 %

















(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 Consolidated Financial Statements in EOG's Annual Report on Form 10-K for the year ended December 31, 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 $0.76 per Mcf ($0.37 per Mcf and $0.09 per Mcf of EOG's composite wellhead natural gas
price) for the three months ended September 30, 2022 and the twelve months ended December 31, 2022, 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)


December 31,


December 31,


2022


2021

Current Assets




Cash and Cash Equivalents

5,972


5,209

Accounts Receivable, Net

2,774


2,335

Inventories

1,058


584

Income Taxes Receivable

97


Other

574


456

Total

10,475


8,584


Property, Plant and Equipment




Oil and Gas Properties (Successful Efforts Method)

67,322


67,644

Other Property, Plant and Equipment

4,786


4,753

Total Property, Plant and Equipment

72,108


72,397

Less:  Accumulated Depreciation, Depletion and Amortization

(42,679)


(43,971)

Total Property, Plant and Equipment, Net

29,429


28,426

Deferred Income Taxes

33


11

Other Assets

1,434


1,215

Total Assets

41,371


38,236


Current Liabilities




Accounts Payable

2,532


2,242

Accrued Taxes Payable

405


518

Dividends Payable

482


436

Liabilities from Price Risk Management Activities

169


269

Current Portion of Long-Term Debt

1,283


37

Current Portion of Operating Lease Liabilities

296


240

Other

346


300

Total

5,513


4,042





Long-Term Debt

3,795


5,072

Other Liabilities

2,574


2,193

Deferred Income Taxes

4,710


4,749

Commitments and Contingencies








Stockholders' Equity




Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 588,396,757
    Shares and 585,521,512 Shares Issued at December 31, 2022 and 2021,
    respectively

206


206

Additional Paid in Capital

6,187


6,087

Accumulated Other Comprehensive Loss

(8)


(12)

Retained Earnings

18,472


15,919

Common Stock Held in Treasury, 700,281 Shares and 257,268 Shares at
    December 31, 2022 and 2021, respectively

(78)


(20)

Total Stockholders' Equity

24,779


22,180

Total Liabilities and Stockholders' Equity

41,371


38,236

 

Cash Flows Statements

In millions of USD (Unaudited)











4Q 2022


3Q 2022


4Q 2021


FY 2022


FY 2021

Cash Flows from Operating Activities










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










Net Income

2,277


2,854


1,985


7,759


4,664

Items Not Requiring (Providing) Cash










Depreciation, Depletion and Amortization

878


906


910


3,542


3,651

Impairments

142


94


206


382


376

Stock-Based Compensation Expenses

34


34


35


133


152

Deferred Income Taxes

179


327


122


(61)


(122)

(Gains) Losses  on Asset Dispositions, Net

27


21


29


(74)


(17)

Other, Net

15


(5)


(2)



13

Dry Hole Costs

4


18


43


45


71

Mark-to-Market Financial Commodity Derivative
Contracts (Gains) Losses, Net

(233)


18


(136)


3,982


1,152

Net Cash Payments for Settlements of Financial
   Commodity Derivative Contracts

(244)


(847)


(122)


(3,501)


(638)

Other, Net

12


12


(1)


45


7

Changes in Components of Working Capital and Other
   Assets and Liabilities










Accounts Receivable

661


392


(182)


(347)


(821)

Inventories

(223)


(140)


(108)


(534)


(13)

Accounts Payable

(211)


(88)


341


90


456

Accrued Taxes Payable

(137)


(53)


26


(113)


312

Other Assets

(93)


(129)


(81)


(364)


(136)

Other Liabilities

282


1,269


201


(266)


(116)

Changes in Components of Working Capital Associated
   with Investing Activities

74


90


(100)


375


(200)

Net Cash Provided by Operating Activities

3,444


4,773


3,166


11,093


8,791

Investing Cash Flows










Additions to Oil and Gas Properties

(1,229)


(1,102)


(949)


(4,619)


(3,638)

Additions to Other Property, Plant and Equipment

(133)


(103)


(65)


(381)


(212)

Proceeds from Sales of Assets

39


79


77


349


231

Other Investing Activities




(30)


Changes in Components of Working Capital Associated
   with Investing Activities

(74)


(90)


100


(375)


200

Net Cash Used in Investing Activities

(1,397)


(1,216)


(837)


(5,056)


(3,419)

Financing Cash Flows










Long-Term Debt Repayments





(750)

Dividends Paid

(1,327)


(1,312)


(1,406)


(5,148)


(2,684)

Treasury Stock Purchased

(23)


(37)


(8)


(118)


(41)

Proceeds from Stock Options Exercised and Employee
   Stock Purchase Plan

11



10


28


19

Repayment of Finance Lease Liabilities

(8)


(8)


(10)


(35)


(37)

Net Cash Used in Financing Activities

(1,347)


(1,357)


(1,414)


(5,273)


(3,493)

Effect of Exchange Rate Changes on Cash


(1)


1


(1)


1

Increase  in Cash and Cash Equivalents

700


2,199


916


763


1,880

Cash and Cash Equivalents at Beginning of Period

5,272


3,073


4,293


5,209


3,329

Cash and Cash Equivalents at End of Period

5,972


5,272


5,209


5,972


5,209

 

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), 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.










4Q 2022


Before
Tax


Income Tax
Impact


After
Tax


Diluted
Earnings per
Share









Reported Net Income (GAAP)

2,859


(582)


2,277


3.87

Adjustments:








Gains on Mark-to-Market Financial Commodity Derivative Contracts,
   Net

(233)


57


(176)


(0.31)

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

(244)


48


(196)


(0.33)

Less: Losses on Asset Dispositions, Net

27


(6)


21


0.04

Add: Certain Impairments

31


(16)


15


0.03

Adjustments to Net Income

(419)


83


(336)


(0.57)









Adjusted Net Income (Non-GAAP)

2,440


(499)


1,941


3.30









Average Number of Common Shares (Non-GAAP)








Basic







584

Diluted







588











(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 three months ended December 31,
2022, such amount was $244 million

 

Adjusted Net Income (Loss)

(Continued)

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









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,
   Net

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 three months ended September 30, 2022, such amount was $847 million, of which $63 million was related to the early termination of certain contracts.


 



4Q 2021


Before
Tax


Income Tax
Impact


After
Tax


Diluted
Earnings per
Share









Reported Net Income (GAAP)

2,499


(514)


1,985


3.39

Adjustments:








Gains on Mark-to-Market Financial Commodity Derivative Contracts,
   Net

(136)


32


(104)


(0.17)

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

(122)


25


(97)


(0.17)

Add: Losses on Asset Dispositions, Net

29


(7)


22


0.04

Add: Certain Impairments




Adjustments to Net Income

(229)


50


(179)


(0.30)









Adjusted Net Income (Non-GAAP)

2,270


(464)


1,806


3.09









Average Number of Common Shares (Non-GAAP)








Basic







581

Diluted







585



(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 three months ended December 31, 2021, such amount was $122 million.



 

Adjusted Net Income (Loss)

(Continued)

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


FY 2022


Before
Tax


Income Tax
Impact


After
Tax


Diluted
Earnings per
Share









Reported Net Income (GAAP)

9,901


(2,142)


7,759


13.22

Adjustments:








Losses on Mark-to-Market Financial Commodity Derivative Contracts,
   Net

3,982


(858)


3,124


5.32

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

(3,501)


755


(2,746)


(4.68)

Less: Gains on Asset Dispositions, Net

(74)


17


(57)


(0.10)

Add: Certain Impairments

113


(31)


82


0.14

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

414


(93)


321


0.54









Adjusted Net Income (Non-GAAP)

10,315


(2,235)


8,080


13.76









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 twelve months ended December 31, 2022, such amount was $3,501 million, of which $1,391 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)


FY 2021


Before
Tax


Income Tax
Impact


After
Tax


Diluted
Earnings per
Share









Reported Net Income (GAAP)

5,933


(1,269)


4,664


7.99

Adjustments:








Losses on Mark-to-Market Financial Commodity Derivative Contracts,
Net

1,152


(250)


902


1.54

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

(638)


138


(500)


(0.86)

Less: Gains on Asset Dispositions, Net

(17)


9


(8)


(0.01)

Add: Certain Impairments

15



15


0.03

Less: Tax Benefits Related to Exiting Canada Operations


(45)


(45)


(0.08)

Adjustments to Net Income

512


(148)


364


0.62









Adjusted Net Income (Non-GAAP)

6,445


(1,417)


5,028


8.61









Average Number of Common Shares (Non-GAAP)








Basic







581

Diluted







584



(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 twelve months ended December 31, 2021, such amount was $638 million.

 

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)





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



3.71





Realized Price




4Q 2022 Composite Average Wellhead Revenue per Boe

59.74



Less:  3Q 2022 Composite Average Wellhead Revenue per Boe

(71.40)



Subtotal

(11.66)



Multiplied by: 4Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.6



Total Change in Revenue

(975)



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

224



Change in Net Income

(751)



Change in Diluted Earnings per Share



(1.28)





Wellhead Volumes




4Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.6



Less:  3Q 2022 Crude Oil Equivalent Volumes (MMBoe)

(84.6)



Subtotal

(1.0)



Multiplied by:  4Q 2022 Composite Average Margin per Boe (Non-GAAP) (Including Total
   Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
   schedule)

31.37



Change in Revenue

(31)



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

7



Change in Net Income

(24)



Change in Diluted Earnings per Share



(0.04)





Certain Operating Costs per Boe




3Q 2022 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe (refer to "Revenues,
   Costs and Margins Per Barrel of Oil Equivalent" schedule)

21.41



Less:  4Q 2022 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe (refer to
   "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)

(21.32)



Subtotal

0.09



Multiplied by:  4Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.6



Change in Before-Tax Net Income

8



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

(2)



Change in Net Income

6



Change in Diluted Earnings per Share



0.01


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



4Q 2022 Net Cash Received from (Payments for) Settlement of Financial Commodity Derivative
   Contracts

(244)



Less:  Income Tax Benefit (Provision)

48



After Tax - (a)

(196)



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

(847)



Less:  Income Tax Benefit (Provision)

184



After Tax - (b)

(663)



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

467



Change in Diluted Earnings per Share



0.79





Other (1)



0.11





4Q 2022 Adjusted Net Income per Share (Non-GAAP)



3.30





4Q 2022 Average Number of Common Shares (Non-GAAP) - Diluted

588









(1)

Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions, other revenue, exploration, dry hole,
impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in
the effective income tax rate.

 

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)





FY 2021 Adjusted Net Income per Share (Non-GAAP)



8.61





Realized Price




FY 2022 Composite Average Wellhead Revenue per Boe

68.77



Less:  FY 2021 Composite Average Wellhead Revenue per Boe

(50.84)



Subtotal

17.93



Multiplied by: FY 2022 Crude Oil Equivalent Volumes (MMBoe)

331.5



Total Change in Revenue

5,944



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

(1,367)



Change in Net Income

4,577



Change in Diluted Earnings per Share



7.80





Wellhead Volumes




FY 2022 Crude Oil Equivalent Volumes (MMBoe)

331.5



Less:  FY 2021 Crude Oil Equivalent Volumes (MMBoe)

(302.5)



Subtotal

29.0



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

40.51



Change in Revenue

1,175



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

(270)



Change in Net Income

905



Change in Diluted Earnings per Share



1.54





Certain Operating Costs per Boe




FY 2021 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe (refer to "Revenues,
   Costs and Margins Per Barrel of Oil Equivalent" schedule)

22.21



Less:  FY 2022 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe (refer to
   "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)

(21.16)



Subtotal

1.05



Multiplied by:  FY 2022 Crude Oil Equivalent Volumes (MMBoe)

331.5



Change in Before-Tax Net Income

348



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

(80)



Change in Net Income

268



Change in Diluted Earnings per Share



0.46









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



FY 2022 Net Cash Received from (Payments for) Settlement of Financial Commodity Derivative
   Contracts

(3,501)



Less:  Income Tax Benefit (Provision)

755



After Tax - (a)

(2,746)



FY 2021 Net Cash Received from (Payments for) Settlement of Financial Commodity Derivative
   Contracts

(638)



Less:  Income Tax Benefit (Provision)

138



After Tax - (b)

(500)



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

(2,246)



Change in Diluted Earnings per Share



(3.83)





Other (1)



(0.82)





FY 2022 Adjusted Net Income per Share (Non-GAAP)



13.76





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

587









(1)

Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions, other revenue, exploration, dry hole,
impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in
the effective income tax rate.

 

Net Income per Share

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





3Q 2022 Net Income per Share (GAAP)



4.86





Realized Price




4Q 2022 Composite Average Wellhead Revenue per Boe

59.74



Less:  3Q 2022 Composite Average Wellhead Revenue per Boe

(71.40)



Subtotal

(11.66)



Multiplied by: 4Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.6



Total Change in Revenue

(975)



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

224



Change in Net Income

(751)



Change in Diluted Earnings per Share



(1.28)





Wellhead Volumes




4Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.6



Less:  3Q 2022 Crude Oil Equivalent Volumes (MMBoe)

(84.6)



Subtotal

(1.0)



Multiplied by:  4Q 2022 Composite Average Margin per Boe (Non-GAAP)
   (Including Total Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil
   Equivalent" schedule)

31.37



Change in Revenue

(31)



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

7



Change in Net Income

(24)



Change in Diluted Earnings per Share



(0.04)





Certain Operating Costs per Boe




3Q 2022 Total Cash Operating Costs (GAAP) and Total DD&A per Boe (refer to "Revenues, Costs
   and Margins Per Barrel of Oil Equivalent" schedule)

21.60



Less:  4Q 2022 Total Cash Operating Costs (GAAP) and Total DD&A per Boe (refer to "Revenues,
   Costs and Margins Per Barrel of Oil Equivalent" schedule)

(21.32)



Subtotal

0.28



Multiplied by:  4Q 2022 Crude Oil Equivalent Volumes (MMBoe)

83.6



Change in Before-Tax Net Income

23



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

(5)



Change in Net Income

18



Change in Diluted Earnings per Share



0.03





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



4Q 2022 Net Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts

233



Less:  3Q 2022 Net (Gains) Losses on Mark-to-Market Financial Commodity Derivative Contracts

18



Subtotal

251



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

(58)



Change in Net Income

193



Change in Diluted Earnings per Share



0.33





Other (1)



(0.03)





4Q 2022 Net Income per Share (GAAP)



3.87





4Q 2022 Average Number of Common Shares (GAAP) - Diluted

588









(1)

Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions, other revenue, exploration, dry hole,
impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in
the effective income tax rate. 

 

Net Income per Share

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





FY 2021 Net Income per Share (GAAP)



7.99





Realized Price




FY 2022 Composite Average Wellhead Revenue per Boe

68.77



Less:  FY 2021 Composite Average Wellhead Revenue per Boe

(50.84)



Subtotal

17.93



Multiplied by: FY 2022 Crude Oil Equivalent Volumes (MMBoe)

331.5



Total Change in Revenue

5,944



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

(1,367)



Change in Net Income

4,577



Change in Diluted Earnings per Share



7.80





Wellhead Volumes




FY 2022 Crude Oil Equivalent Volumes (MMBoe)

331.5



Less:  FY 2021 Crude Oil Equivalent Volumes (MMBoe)

(302.5)



Subtotal

29.0



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

40.51



Change in Revenue

1,175



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

(270)



Change in Net Income

905



Change in Diluted Earnings per Share



1.54





Certain Operating Costs per Boe




FY 2021 Total Cash Operating Costs (GAAP) and Total DD&A per Boe (refer to "Revenues, Costs
   and Margins Per Barrel of Oil Equivalent" schedule)

22.21



Less:  FY 2022 Total Cash Operating Costs (GAAP) and Total DD&A per Boe (refer to "Revenues,
   Costs and Margins Per Barrel of Oil Equivalent" schedule)

(21.21)



Subtotal

1.00



Multiplied by:  FY 2022 Crude Oil Equivalent Volumes (MMBoe)

331.5



Change in Before-Tax Net Income

332



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

(76)



Change in Net Income

256



Change in Diluted Earnings per Share



0.44





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



FY 2022 Net Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts

(3,982)



Less:  FY 2021 Net (Gains) Losses on Mark-to-Market Financial Commodity Derivative Contracts

1,152



Subtotal

(2,830)



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

651



Change in Net Income

(2,179)



Change in Diluted Earnings per Share



(3.71)





Other (1)



(0.84)





FY 2022 Net Income per Share (GAAP)



13.22





FY 2022 Average Number of Common Shares (GAAP) - Diluted

587









(1)

Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions, other revenue, exploration, dry hole,
impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact 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 fourth, third, second and first quarter of 2022 and twelve-month period ended December 31 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.












4Q 2022


3Q 2022


2Q 2022


1Q 2022


4Q 2021











Net Cash Provided by Operating Activities (GAAP)

3,444


4,773


2,048


828


3,166











Adjustments:










Changes in Components of Working Capital and Other Assets and Liabilities










Accounts Receivable

(661)


(392)


522


878


182

Inventories

223


140


157


14


108

Accounts Payable

211


88


(259)


(130)


(341)

Accrued Taxes Payable

137


53


536


(613)


(26)

Other Assets

93


129


(71)


213


81

Other Liabilities

(282)


(1,269)


(433)


2,250


(201)

Changes in Components of Working Capital Associated with Investing Activities

(74)


(90)


(143)


(68)


100

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

3,091


3,432


2,357


3,372


3,069











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

3,091


3,432


2,357


3,372


3,069

Less:










Total Capital Expenditures (Non-GAAP) (a)

(1,361)


(1,166)


(1,071)


(1,009)


(1,015)

Free Cash Flow (Non-GAAP)

1,730


2,266


1,286


2,363


2,054











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












4Q 2022


3Q 2022


2Q 2022


1Q 2022


4Q 2021











Total Expenditures (GAAP)

1,535


1,410


1,521


1,144


1,137

Less:










Asset Retirement Costs

(89)


(139)


(43)


(27)


(71)

Non-Cash Acquisition Costs of Unproved Properties

(20)


(28)


(21)


(58)


(8)

Acquisition Costs of Proved Properties

(21)


(42)


(351)


(5)


(1)

Exploration Costs

(44)


(35)


(35)


(45)


(42)

Total Capital Expenditures (Non-GAAP)

1,361


1,166


1,071


1,009


1,015


















FY 2022


FY 2021











Net Cash Provided by Operating Activities (GAAP)







11,093


8,791











Adjustments:










Changes in Components of Working Capital and Other Assets and Liabilities







Accounts Receivable







347


821

Inventories







534


13

Accounts Payable







(90)


(456)

Accrued Taxes Payable







113


(312)

Other Assets







364


136

Other Liabilities







266


116

Changes in Components of Working Capital Associated with Investing Activities




(375)


200

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




12,252


9,309











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




12,252


9,309

Less:










Total Capital Expenditures (Non-GAAP) (a)







(4,607)


(3,755)

Free Cash Flow (Non-GAAP)







7,645


5,554











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


















FY 2022


FY 2021











Total Expenditures (GAAP)







5,610


4,255

Less:










Asset Retirement Costs







(298)


(127)

Non-Cash Acquisition Costs of Unproved Properties




(127)


(45)

Non-Cash Finance Leases








(74)

Acquisition Costs of Proved Properties







(419)


(100)

Exploration Costs







(159)


(154)

Total Capital Expenditures (Non-GAAP)







4,607


3,755

 

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 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.












December 31,
2022


September 30
2022


June 30,
2022


March 31,
2022


December 31,
2021











Total Stockholders' Equity - (a)

24,779


23,849


22,312


21,540


22,180











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

5,078


5,084


5,091


5,099


5,109

Less: Cash

(5,972)


(5,272)


(3,073)


(4,009)


(5,209)

Net Debt (Non-GAAP) - (c)

(894)


(188)


2,018


1,090


(100)











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

29,857


28,933


27,403


26,639


27,289











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

23,885


23,661


24,330


22,630


22,080











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

17.0 %


17.6 %


18.6 %


19.1 %


18.7 %











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

-3.7 %


-0.8 %


8.3 %


4.8 %


-0.5 %

 

Proved Reserves and Reserve Replacement Data

(Unaudited)









2022 Net Proved Reserves Reconciliation Summary

United

States


Trinidad


Other

International


Total

Crude Oil and Condensate (MMBbl)








Beginning Reserves

1,546


2



1,548

Revisions

120




120

Purchases in Place

7




7

Extensions, Discoveries and Other Additions

175




175

Sales in Place

(21)




(21)

Production

(168)




(168)

Ending Reserves

1,659


2



1,661









Natural Gas Liquids (MMBbl)








Beginning Reserves

829




829

Revisions

258




258

Purchases in Place

4




4

Extensions, Discoveries and Other Additions

140




140

Sales in Place

(14)




(14)

Production

(72)




(72)

Ending Reserves

1,145




1,145









Natural Gas (Bcf)








Beginning Reserves

7,907


315



8,222

Revisions

(271)


18



(253)

Purchases in Place

32




32

Extensions, Discoveries and Other Additions

1,414


51



1,465

Sales in Place

(316)




(316)

Production

(493)


(66)



(559)

Ending Reserves

8,273


318



8,591









Oil Equivalents (MMBoe)








Beginning Reserves

3,693


54



3,747

Revisions

333


3



336

Purchases in Place

16




16

Extensions, Discoveries and Other Additions

551


9



560

Sales in Place

(88)




(88)

Production

(322)


(11)



(333)

Ending Reserves

4,183


55



4,238









Net Proved Developed Reserves (MMBoe)








At December 31, 2021

1,926


22



1,948

At December 31, 2022

2,162


23



2,185









2022 Exploration and Development Expenditures ($ Millions)









Acquisition Cost of Unproved Properties

186




186

Exploration Costs

263


84


17


364

Development Costs

3,898


64



3,962

Total Drilling

4,347


148


17


4,512

Acquisition Cost of Proved Properties

419




419

Asset Retirement Costs

208


81


9


298

Total Exploration and Development Expenditures

4,974


229


26


5,229

Gathering, Processing and Other

381


1


(1)


381

Total Expenditures

5,355


230


25


5,610

Proceeds from Sales in Place

(349)




(349)

Net Expenditures

5,006


230


25


5,261









Reserve Replacement Costs ($ / Boe) *








All-in Total, Net of Revisions

4.96


11.92



5.06

All-in Total, Excluding Revisions Due to Price

5.03


11.92



5.13









Reserve Replacement *








Drilling Only

171 %


82 %


0 %


168 %

All-in Total, Net of Revisions and Dispositions 

252 %


109 %


0 %


247 %

All-in Total, Excluding Revisions Due to Price

249 %


109 %


0 %


244 %

All-in Total, Liquids

279 %


0 %


0 %


279 %









*   See following reconciliation schedule for calculation methodology

 

Reserve Replacement Cost Data

(Unaudited; in millions, except ratio data)









For the Twelve Months Ended December 31, 2022

United

States


Trinidad


Other

International


Total









Total Costs Incurred in Exploration and Development Activities (GAAP)

4,974


229


26


5,229

Less:   Asset Retirement Costs

(208)


(81)


(9)


(298)

Non-Cash Acquisition Costs of Unproved Properties

(127)




(127)

Total Acquisition Costs of Proved Properties

(419)




(419)

Exploration Expenses

(145)


(5)


(9)


(159)

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

4,075


143


8


4,226









Total Costs Incurred in Exploration and Development Activities (GAAP)

4,974


229


26


5,229

Less:   Asset Retirement Costs

(208)


(81)


(9)


(298)

Non-Cash Acquisition Costs of Unproved Properties

(127)




(127)

Non-Cash Acquisition Costs of Proved Properties

(26)




(26)

Exploration Expenses

(145)


(5)


(9)


(159)

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

4,468


143


8


4,619









Total Expenditures (GAAP)

5,355


230


25


5,610

Less:   Asset Retirement Costs

(208)


(81)


(9)


(298)

Non-Cash Acquisition Costs of Unproved Properties

(127)




(127)

Non-Cash Acquisition Costs of Proved Properties

(26)




(26)

Exploration Expenses

(145)


(5)


(9)


(159)

Total Cash Expenditures (Non-GAAP)

4,849


144


7


5,000









Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe)








Revisions Due to Price - (c)

11




11

Revisions Other Than Price

322


3



325

Purchases in Place

16




16

Extensions, Discoveries and Other Additions - (d)

551


9



560

Total Proved Reserve Additions - (e)

900


12



912

Sales in Place

(88)




(88)

Net Proved Reserve Additions From All Sources - (f)

812


12



824









Production - (g)

322


11



333









Reserve Replacement Costs ($ / Boe)








Total Drilling, Before Revisions - (a / d)

7.40


15.89



7.55

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

4.96


11.92



5.06

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

5.03


11.92



5.13









Reserve Replacement








Drilling Only - (d / g)

171 %


82 %


0 %


168 %

All-in Total, Net of Revisions and Dispositions - (f / g)

252 %


109 %


0 %


247 %

All-in Total, Excluding Revisions Due to Price - ((f - c) / g)

249 %


109 %


0 %


244 %









For the Twelve Months Ended December 31, 2022

United

States


Trinidad


Other

International


Total









Net Proved Reserve Additions From All Sources - Liquids (MMBbl)








Revisions

378




378

Purchases in Place

11




11

Extensions, Discoveries and Other Additions - (h)

315




315

Total Proved Reserve Additions

704




704

Sales in Place

(35)




(35)

Net Proved Reserve Additions From All Sources - (i)

669




669









Production - (j)

240




240









Reserve Replacement - Liquids








Drilling Only - (h / j)

131 %


0 %


0 %


131 %

All-in Total, Net of Revisions and Dispositions - (i / j)

279 %


0 %


0 %


279 %

 

Reserve Replacement Cost Data

(Continued)

(Unaudited; in millions, except ratio data)




For the Twelve Months Ended December 31, 2022




Proved Developed Reserve Replacement Costs ($ / Boe)

Total

Total Costs Incurred in Exploration and Development Activities (GAAP)

5,229

Less:   Asset Retirement Costs

(298)

Acquisition Costs of Unproved Properties

(186)

Acquisition Costs of Proved Properties

(419)

Exploration Expenses

(159)

Drillbit Exploration and Development Expenditures (Non-GAAP) - (k)

4,167



Total Proved Reserves - Extensions, Discoveries and Other Additions (MMBoe)

560

Add:  Conversion of Proved Undeveloped Reserves to Proved Developed

293

Less:  Proved Undeveloped Extensions and Discoveries

(410)

Proved Developed Reserves - Extensions and Discoveries (MMBoe)

443



Total Proved Reserves - Revisions (MMBoe)

336

Less:  Proved Undeveloped Reserves - Revisions

(141)

           Proved Developed - Revisions Due to Price

(9)

Proved Developed Reserves - Revisions Other Than Price (MMBoe)

186



Proved Developed Reserves - Extensions and Discoveries Plus Revisions Other Than Price (MMBoe) - (l)

629



Proved Developed Reserve Replacement Costs Excluding Revisions Due to Price ($ / Boe) - (k / l)

6.62

 

Reserve Replacement Cost Data

In millions of USD, except reserves and ratio data (Unaudited)












The following table reconciles Total Costs Incurred in Exploration and Development Activities (GAAP) to Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) and Total Exploration and Development Expenditures (Non-GAAP), as used in the calculation of Reserve Replacement Costs per Boe.  There are numerous ways that industry participants present Reserve Replacement Costs, including "Drilling Only" and "All-In", which reflect total exploration and development expenditures divided by total net proved reserve additions from extensions and discoveries only, or from all sources.  Combined with Reserve Replacement, these statistics (and the non-GAAP measures used in calculating such statistics) provide management and investors with an indication of the results of the current year capital investment program.  Reserve Replacement Cost statistics (and the non-GAAP measures used in calculating such statistics) are widely recognized and reported by industry participants and are used by EOG management and other third parties for comparative purposes within the industry.  Please note that the actual cost of adding reserves will vary from the reported statistics due to timing differences in reserve bookings and capital expenditures.  Accordingly, some analysts use three or five year averages of reported statistics, while others prefer to estimate future costs.  EOG has not included future capital costs to develop proved undeveloped reserves in exploration and development expenditures. In addition, to further the comparability of the results of EOG's current-year capital investment program with those of EOG's peer companies and other companies in the industry, EOG now deducts Exploration Expenses, as illustrated below, in calculating Total Exploration and Development Expenditures for Drilling Only (Non-GAAP), Total Exploration and Development Expenditures (Non-GAAP), Total Cash Expenditures (Non-GAAP), Drillbit Exploration and Development Expenditures (Non-GAAP) and the related Reserve Replacement Costs metrics.  Accordingly, Total Exploration and Development Expenditures for Drilling Only (Non-GAAP), Total Exploration and Development Expenditures (Non-GAAP), Total Cash Expenditures (Non-GAAP), Drillbit Exploration and Development Expenditures (Non-GAAP) and the related Reserve Replacement Costs metrics, in each case for fiscal year 2022, have been calculated on such basis, and the calculations for each of the prior periods shown have been revised and conformed.








2022


2021


2020







Total Costs Incurred in Exploration and Development Activities (GAAP)

5,229


3,969


3,718

Less:  Asset Retirement Costs

(298)


(127)


(117)

Non-Cash Acquisition Costs of Unproved Properties

(127)


(45)


(197)

Acquisition Costs of Proved Properties

(419)


(100)


(135)

Exploration Expenses

(159)


(154)


(146)

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

4,226


3,543


3,123







Total Costs Incurred in Exploration and Development Activities (GAAP)

5,229


3,969


3,718

Less:  Asset Retirement Costs

(298)


(127)


(117)

Non-Cash Acquisition Costs of Unproved Properties

(127)


(45)


(197)

Non-Cash Acquisition Costs of Proved Properties

(26)


(5)


(15)

Exploration Expenses

(159)


(154)


(146)

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

4,619


3,638


3,243







Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe)






Revisions Due to Price - (c)

11


194


(278)

Revisions Other Than Price

325


(308)


(89)

Purchases in Place

16


9


10

Extensions, Discoveries and Other Additions - (d)

560


952


564

Total Proved Reserve Additions - (e)

912


847


207

Sales in Place

(88)


(11)


(31)

Net Proved Reserve Additions From All Sources

824


836


176







Production

333


309


285







Reserve Replacement Costs ($ / Boe)






Total Drilling, Before Revisions - (a / d)

7.55


3.72


5.54

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

5.06


4.30


15.67

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

5.13


5.57


6.69








2019


2018


2017







Total Costs Incurred in Exploration and Development Activities (GAAP)

6,628


6,420


4,440

Less:  Asset Retirement Costs

(186)


(70)


(56)

Non-Cash Acquisition Costs of Unproved Properties

(98)


(291)


(256)

Acquisition Costs of Proved Properties

(380)


(124)


(73)

Exploration Expenses

(140)


(149)


(145)

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

5,824


5,786


3,910







Total Costs Incurred in Exploration and Development Activities (GAAP)

6,628


6,420


4,440

Less:  Asset Retirement Costs

(186)


(70)


(56)

Non-Cash Acquisition Costs of Unproved Properties

(98)


(291)


(256)

Non-Cash Acquisition Costs of Proved Properties

(52)


(71)


(26)

Exploration Expenses

(140)


(149)


(145)

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

6,152


5,839


3,957







Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe)






Revisions Due to Price - (c)

(60)


35


154

Revisions Other Than Price


(40)


48

Purchases in Place

17


12


2

Extensions, Discoveries and Other Additions - (d)

750


670


421

Total Proved Reserve Additions - (e)

707


677


625

Sales in Place

(5)


(11)


(21)

Net Proved Reserve Additions From All Sources

702


666


604







Production

301


265


224







Reserve Replacement Costs ($ / Boe)






Total Drilling, Before Revisions - (a / d)

7.77


8.64


9.29

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

8.70


8.62


6.33

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

8.02


9.10


8.40

 

Definitions


$/Boe

U.S. Dollars per barrel of oil equivalent

MMBoe

Million barrels of oil equivalent

 

Cision View original content:https://www.prnewswire.com/news-releases/eog-resources-reports-fourth-quarter-and-full-year-2022-results-announces-2023-capital-plan-301754895.html

SOURCE EOG Resources, Inc.