EOG
$87.16
Eog Resources
($1.69)
(1.90%)
Earnings Details
1st Quarter March 2019
Thursday, May 2, 2019 4:41:00 PM
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Summary

Eog Resources Beats

Eog Resources (EOG) reported 1st Quarter March 2019 earnings of $1.19 per share on revenue of $4.1 billion. The consensus earnings estimate was $1.03 per share on revenue of $4.1 billion. The Earnings Whisper number was $1.05 per share. Revenue grew 10.3% 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
$1.19
Earnings Whisper
$1.05
Consensus Estimate
$1.03
Reported Revenue
$4.06 Bil
Revenue Estimate
$4.10 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

EOG Resources Reports Outstanding First Quarter 2019 Results and Raises Dividend by 31 Percent

HOUSTON, May 2, 2019 /PRNewswire/ --

  • Increased Crude Oil Production 20 Percent YOY and Exceeded Target
  • Delivered First Quarter Capital Expenditures Below Target and Reiterates Unchanged FY 2019 Target
  • Reduced Per-Unit Cash Operating Costs 8 Percent YOY and Beat Targets
  • Achieved Reductions in Well Costs and On-Track to Reach 5 Percent Reduction Goal
  • Established Significant Crude Oil Export Capacity
  • Increased Common Stock Dividend 31 Percent

EOG Resources, Inc. (EOG) today reported first quarter 2019 net income of $635 million, or $1.10 per share, compared with first quarter 2018 net income of $639 million, or $1.10 per share. Net cash from operating activities for the first quarter 2019 was $1.6 billion. Discretionary cash flow for the first quarter 2019 of $1.9 billion increased three percent compared to the first quarter 2018, despite a 13 percent drop in the average WTI NYMEX price compared to the same prior year period.

Adjusted non-GAAP net income for the first quarter 2019 was $689 million, or $1.19 per share, compared with adjusted non-GAAP net income of $689 million, or $1.19 per share, for the same prior year period. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.

First Quarter 2019 Review
EOG delivered stellar operational and financial performance in the first quarter 2019. Crude oil production volumes exceeded the target range, while capital expenditures were below the target range. Total company crude oil volumes grew 20 percent compared to the first quarter 2018, to 435,900 barrels of oil per day (Bopd). Natural gas liquids production increased 19 percent, while natural gas volumes grew 11 percent, contributing to total company production growth of 17 percent. 

Cash operating costs declined by eight percent during the first quarter 2019 on a per-unit basis compared to the same prior year period. Lower transportation, lease operating and general and administrative costs contributed to the overall cost reduction. EOG's marketing operations added to the strong first quarter financial performance, as the average price on U.S. crude oil sales was $1.21 per barrel higher than the average WTI NYMEX price. The company also achieved reductions in well costs during the first quarter 2019.

EOG generated $1.9 billion of discretionary cash flow in the first quarter 2019. The company incurred total expenditures of $2.1 billion, including $1.7 billion of cash capital expenditures before acquisitions. After considering dividend payments of $128 million, EOG generated free cash flow during the first quarter of $55 million. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.

"EOG's consistent long-term strategy of exploration-led organic growth, focus on operating and capital cost control and disciplined capital allocation is generating robust financial results. We are growing more efficiently than ever before," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "We are on track to reduce well costs five percent for the year. Combined with strong price realizations, EOG is positioned to further improve margins and returns. The tremendous first quarter results demonstrate that EOG is achieving its goal of performing with the best companies in the S&P 500."

Dividend Increase
EOG's Board of Directors declared a quarterly dividend of $0.2875 per share on the common stock, an increase of 31 percent. The dividend will be payable July 31, 2019, to holders of record as of July 17, 2019. The indicated annual rate is $1.15 per share.

"EOG's commitment to increasing cash returns to stockholders continues, as we have now increased our dividend by 72 percent during the past 14 months. This is made possible through our relentless efforts to lower costs, increase returns and fundamentally reset the business to be profitable even in a low oil price environment. We are confident our results will continue to improve, guided by our unique culture and sustainable business model," Thomas said.

Crude Oil Export Capacity
EOG has reached agreements that provide access to crude oil export capacity on the Gulf Coast. Export capacity available to EOG will increase from 100,000 Bopd in 2020 to 250,000 Bopd in 2022 and subsequent years. The company expects to sell a portion of its crude oil from its Eagle Ford and Delaware Basin plays to export markets. The new agreements complement EOG's existing pipeline and terminal tankage capacity, further increasing the reliability and diversification of its marketing operations. 

"These agreements extend control of our crude oil production to the water's edge and open significant new markets to EOG. We enhance our flexibility to capture the highest margins for our crude oil by maintaining firm capacity for our production downstream, providing access to a diverse group of potential customers in multiple end markets," commented D. Lance Terveen, Senior Vice President, Marketing. 

Operating Highlights
EOG brought on line 78 wells in the Delaware Basin during the first quarter 2019 using one less rig and completion crew than it did in the first quarter 2018 to bring on line 70 wells. This tremendous operating performance, as well as infrastructure investments such as water handling and reuse, are enabling EOG to achieve further cost reductions.

The South Texas Eagle Ford remains a foundation asset for EOG, capable of sustaining high-return growth for at least 10 years. EOG is improving capital productivity across the entire 120-mile length of its acreage position in the heart of this world class resource play. The further adoption of local sources of sand supply, increased efficiencies in completion operations and the continued development of new completion designs are contributing to lower costs with consistent well productivity. With less than 40 percent of its identified locations in the play developed, there is significant opportunity to convert additional acreage to premium status.

In the Powder River Basin Turner, EOG brought five wells to sales during the first quarter. The company also further progressed plans for infrastructure development, including crude oil and natural gas gathering pipelines and water handling systems. EOG brought on line 25 wells in the Wyoming DJ Basin Codell during the first quarter. With low well costs and a high oil mix, EOG's Codell development program realizes low finding costs and premium rates of return.

EOG brought on line four wells in the Eastern Anadarko Basin Woodford Oil Window during the first quarter. The drilling program in the first quarter was focused on further delineating the play and testing additional targets.

In the Williston Basin, EOG drilled two wells during the first quarter and deferred completions until the summer as part of its seasonal development program.

Financial Review
At March 31, 2019, EOG's total debt outstanding was $6.1 billion for a debt-to-total capitalization ratio of 23 percent. Considering cash on the balance sheet at the end of the first quarter, EOG's net debt was $4.9 billion for a net debt-to-total capitalization ratio of 20 percent. For a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

First Quarter 2019 Results Webcast
Friday, May 3, 2019, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG website for one year.
http://investors.eogresources.com/Investors 

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

Investor Contacts
David Streit  713-571-4902
Neel Panchal  713-571-4884
John Wagner  713-571-4404

Media and Investor Contact
Kimberly Ehmer  713-571-4676

This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production, capital expenditures, costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements.  EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "goal," "may," "will," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements.  In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness or pay and/or increase dividends are forward-looking statements.  Forward-looking statements are not guarantees of performance.  Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct.  Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control.  Furthermore, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow or discretionary cash flow, and certain related estimates regarding future performance, results and financial position.  Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates.  Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:

  • the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
  • the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
  • the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects;
  • the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production;
  • the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation and refining facilities;
  • the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses and leases;
  • the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations; climate change and other environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
  • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties;
  • the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
  • competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
  • the availability and cost of employees and other personnel, facilities, equipment, materials (such as water and tubulars) and services;
  • the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
  • weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression, storage and transportation facilities;
  • the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
  • EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
  • the extent to which EOG is successful in its completion of planned asset dispositions;
  • the extent and effect of any hedging activities engaged in by EOG;
  • the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
  • geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
  • the use of competing energy sources and the development of alternative energy sources;
  • the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
  • acts of war and terrorism and responses to these acts;
  • physical, electronic and cybersecurity breaches; and
  • the other factors described under ITEM 1A, Risk Factors, on pages 13 through 22 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

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

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves).  Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines.  Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.  In addition, reconciliation and calculation schedules for non-GAAP financial measures can be found on the EOG website at www.eogresources.com.

 

EOG RESOURCES, INC.

Financial Report

(Unaudited; in millions, except per share data)








Three Months Ended


March 31,


2019


2018







Operating Revenues and Other

$

4,058.6


$

3,681.2

Net Income 

$

635.4


$

638.6

Net Income Per Share 






        Basic

$

1.10


$

1.11

        Diluted

$

1.10


$

1.10

Average Number of Common Shares






        Basic


577.2



575.8

        Diluted


580.2



579.7













Summary Income Statements

(Unaudited; in thousands, except per share data)








Three Months Ended


March 31,


2019


2018

Operating Revenues and Other




        Crude Oil and Condensate

$

2,200,403


$

2,101,308

        Natural Gas Liquids


218,638



221,415

        Natural Gas


334,972



299,766

        Losses on Mark-to-Market Commodity
           Derivative Contracts


(20,580)



(59,771)

        Gathering, Processing and Marketing


1,285,654



1,101,822

        Losses on Asset Dispositions, Net


(3,836)



(14,969)

        Other, Net


43,391



31,591

               Total


4,058,642



3,681,162

Operating Expenses






        Lease and Well


336,291



300,064

        Transportation Costs


176,522



176,957

        Gathering and Processing Costs


111,295



101,345

        Exploration Costs


36,324



34,836

        Dry Hole Costs


94



-

        Impairments 


72,356



64,609

        Marketing Costs


1,270,057



1,106,390

        Depreciation, Depletion and Amortization


879,595



748,591

        General and Administrative


106,672



94,698

        Taxes Other Than Income


192,906



179,084

               Total


3,182,112



2,806,574







Operating Income 


876,530



874,588







Other Income, Net


5,612



727







Income Before Interest Expense and Income Taxes


882,142



875,315







Interest Expense, Net


54,906



61,956







Income Before Income Taxes


827,236



813,359







Income Tax Provision 


191,810



174,770







Net Income 

$

635,426


$

638,589







Dividends Declared per Common Share

$

0.2200


$

0.1850




EOG RESOURCES, INC.

Operating Highlights

(Unaudited)








Three Months Ended


March 31,


2019


2018

Wellhead Volumes and Prices


Crude Oil and Condensate Volumes (MBbld) (A)


      United States


435.1



359.7

      Trinidad


0.7



0.9

      Other International (B)


0.1



2.7

            Total


435.9



363.3







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






      United States

$

56.11


$

64.24

      Trinidad


43.68



54.86

      Other International (B)


60.13



71.61

            Composite


56.09



64.27







Natural Gas Liquids Volumes (MBbld) (A)






      United States


119.8



100.6

      Other International (B)


-



-

            Total


119.8



100.6







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






      United States

$

20.28


$

24.46

      Other International (B)


-



-

            Composite


20.28



24.46







Natural Gas Volumes (MMcfd) (A)






      United States


1,003



853

      Trinidad


267



293

      Other International (B)


38



30

            Total


1,308



1,176







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






      United States

$

2.77


$

2.76

      Trinidad


2.91



2.88

      Other International (B)


4.37



4.36

            Composite


2.85



2.83







Crude Oil Equivalent Volumes (MBoed) (D)






      United States 


722.0



602.5

      Trinidad


45.1



49.8

      Other International (B)


6.5



7.6

            Total


773.6



659.9







Total MMBoe (D)


69.6



59.4


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

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

(C) Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Consolidated Financial Statements in EOG's Annual Report on Form 10-K for the year ended December 31, 2018).

(D) Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, NGLs and natural gas.  Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas.  MMBoe is calculated by multiplying the MBoed amount by the number of days in the period and then dividing that amount by one thousand.

 

EOG RESOURCES, INC.

Summary Balance Sheets

(Unaudited; in thousands, except share data)








March 31,


December 31,


2019


2018

ASSETS

Current Assets






     Cash and Cash Equivalents

$

1,135,810


$

1,555,634

     Accounts Receivable, Net


2,203,438



1,915,215

     Inventories


860,764



859,359

     Assets from Price Risk Management Activities


3,909



23,806

     Income Taxes Receivable


440,217



427,909

     Other


263,747



275,467

            Total


4,907,885



5,057,390







Property, Plant and Equipment






     Oil and Gas Properties (Successful Efforts Method)


58,691,746



57,330,016

     Other Property, Plant and Equipment


4,277,888



4,220,665

            Total Property, Plant and Equipment


62,969,634



61,550,681

     Less:  Accumulated Depreciation, Depletion and Amortization


(33,840,631)



(33,475,162)

            Total Property, Plant and Equipment, Net


29,129,003



28,075,519

Deferred Income Taxes


1,224



777

Other Assets


1,625,423



800,788

Total Assets

$

35,663,535


$

33,934,474







LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities






     Accounts Payable

$

2,452,337


$

2,239,850

     Accrued Taxes Payable


239,524



214,726

     Dividends Payable


126,979



126,971

     Liabilities from Price Risk Management Activities


746



-

     Current Portion of Long-Term Debt


914,861



913,093

     Current Portion of Operating Lease Liabilities


396,294



-

     Other


170,527



233,724

            Total


4,301,268



3,728,364













Long-Term Debt


5,166,050



5,170,169

Other Liabilities


1,772,248



1,258,355

Deferred Income Taxes


4,520,172



4,413,398

Commitments and Contingencies












Stockholders' Equity






     Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 
        580,740,395 Shares Issued at March 31, 2019 and 580,408,117
        Shares Issued at December 31, 2018 


205,807



205,804

     Additional Paid in Capital


5,695,197



5,658,794

     Accumulated Other Comprehensive Loss


(2,869)



(1,358)

     Retained Earnings


14,050,676



13,543,130

     Common Stock Held in Treasury, 425,637 Shares at March 31, 2019
        and 385,042 Shares at December 31, 2018


(45,014)



(42,182)

            Total Stockholders' Equity


19,903,797



19,364,188

Total Liabilities and Stockholders' Equity

$

35,663,535


$

33,934,474

 

EOG RESOURCES, INC.

Summary Statements of Cash Flows

(Unaudited; in thousands)








Three Months Ended


March 31,


2019


2018

Cash Flows from Operating Activities






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






     Net Income

$

635,426


$

638,589

     Items Not Requiring (Providing) Cash






            Depreciation, Depletion and Amortization


879,595



748,591

            Impairments 


72,356



64,609

            Stock-Based Compensation Expenses


39,087



35,486

            Deferred Income Taxes


106,324



171,362

            Losses on Asset Dispositions, Net


3,836



14,969

            Other, Net


2,952



2,013

     Dry Hole Costs


94



-

     Mark-to-Market Commodity Derivative Contracts






            Total Losses


20,580



59,771

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


20,846



(21,965)

     Other, Net


976



(478)

     Changes in Components of Working Capital and Other Assets and Liabilities






            Accounts Receivable


(308,996)



(109,654)

            Inventories


(18,979)



(106,799)

            Accounts Payable


194,082



53,652

            Accrued Taxes Payable


114,998



21,950

            Other Assets


(6,935)



(8,863)

            Other Liabilities


(54,092)



(29,055)

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


(94,381)



17,988

Net Cash Provided by Operating Activities


1,607,769



1,552,166







Investing Cash Flows






     Additions to Oil and Gas Properties


(1,939,473)



(1,365,111)

     Additions to Other Property, Plant and Equipment


(60,963)



(76,100)

     Proceeds from Sales of Assets


15,049



2,829

     Changes in Components of Working Capital Associated with Investing Activities


94,381



(18,045)

Net Cash Used in Investing Activities


(1,891,006)



(1,456,427)







Financing Cash Flows






     Dividends Paid


(127,546)



(97,026)

     Treasury Stock Purchased


(6,248)



(16,776)

     Proceeds from Stock Options Exercised and Employee Stock Purchase Plan 


403



1,453

     Repayment of Capital Lease Obligation


(3,190)



(1,671)

     Changes in Components of Working Capital Associated with Financing Activities


-



57

Net Cash Used in Financing Activities


(136,581)



(113,963)

Effect of Exchange Rate Changes on Cash


(6)



90

Decrease in Cash and Cash Equivalents


(419,824)



(18,134)

Cash and Cash Equivalents at Beginning of Period


1,555,634



834,228

Cash and Cash Equivalents at End of Period

$

1,135,810


$

816,094

 

EOG RESOURCES, INC.

First Quarter 2019 Well Results by Play

(Unaudited)


















Wells On Line




Initial Gross 30-Day Average Production Rate



Gross


Net


Lateral
Length
(ft)


Crude Oil and
Condensate
(Bbld) (A)


Natural Gas
Liquids
(Bbld) (A)


 Natural Gas
(MMcfd) (A)


Crude Oil
Equivalent
(Boed) (B)

Delaware Basin















Wolfcamp


61


53


7,800


1,950


400


3.8


2,950

Bone Spring


12


10


5,500


1,500


300


1.9


2,100

Leonard


5


5


7,600


1,650


650


4.3


3,000
















South Texas Eagle Ford


93


89


8,300


1,350


150


0.8


1,650
















Powder River Basin















Turner


5


4


9,800


650


650


1.0


1,450
















DJ Basin Codell


25


13


9,600


600


50


0.3


700
















Anadarko Basin Woodford Oil Window


4


3


9,700


900


100


0.6


1,100


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

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

 

EOG RESOURCES, INC.

Quantitative Reconciliation of Adjusted Net Income (Non-GAAP)

To Net Income (GAAP)

(Unaudited; in thousands, except per share data)

































The following chart adjusts the three-month periods ended March 31, 2019 and 2018 reported Net Income (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market losses from these transactions, to eliminate the net losses on asset dispositions in 2019 and 2018, to add back impairment charges related to certain of EOG's assets in 2019 and 2018 and to eliminate certain adjustments in 2018 related to the 2017 U.S. tax reform.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.


















Three Months Ended 


Three Months Ended 


March 31, 2019


March 31, 2018




















Income




Diluted




Income




Diluted


Before


Tax


After


Earnings


Before


Tax


After


Earnings


Tax


Impact


Tax


per Share


Tax


Impact


Tax


per Share

Reported Net Income (GAAP)

$827,236


$(191,810)


$635,426


$      1.10


$813,359


$(174,770)


$638,589


$      1.10

Adjustments:
















Losses on Mark-to-Market Commodity
     Derivative Contracts

20,580


(4,533)


16,047


0.02


59,771


(13,166)


46,605


0.08

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

20,846


(4,592)


16,254


0.03


(21,965)


4,838


(17,127)


(0.03)

Add:  Losses on Asset Dispositions

3,836


(736)


3,100


0.01


14,969


(3,324)


11,645


0.02

Add:  Impairments

23,745


(5,230)


18,515


0.03


20,876


(4,598)


16,278


0.03

Less:  Tax Reform Impact

-


-


-


-


-


(6,524)


(6,524)


(0.01)

Adjustments to Net Income 

69,007


(15,091)


53,916


0.09


73,651


(22,774)


50,877


0.09

















Adjusted Net Income (Non-GAAP)

$896,243


$(206,901)


$689,342


$      1.19


$887,010


$(197,544)


$689,466


$      1.19

















Average Number of Common Shares (GAAP)
















       Basic







577,207








575,775

       Diluted







580,222








579,726

 

EOG RESOURCES, INC.

Quantitative Reconciliation of Discretionary Cash Flow (Non-GAAP)

To Net Cash Provided By Operating Activities (GAAP)

(Unaudited; in thousands)








Calculation of Free Cash Flow (Non-GAAP)

(Unaudited; in thousands)







The following chart reconciles the three-month periods ended March 31, 2019 and 2018 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow (Non-GAAP).  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Exploration Costs (excluding Stock-Based Compensation Expenses), Other Non-Current Income Taxes - Net Receivable, Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing and Financing Activities.  EOG defines Free Cash Flow (Non-GAAP) for a given period as Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures excluding acquisitions incurred (Non-GAAP) during such period and dividends paid (GAAP) during such period, as is illustrated below for the three months ended March 31, 2019 and 2018.  EOG management uses this information for comparative purposes within the industry.










Three Months Ended



March 31,



2019


2018








Net Cash Provided by Operating Activities (GAAP)

$

1,607,769


$

1,552,166








Adjustments:







Exploration Costs (excluding Stock-Based Compensation Expenses) 



29,787



27,936

Other Non-Current Income Taxes - Net Receivable



102,918



118,921

Changes in Components of Working Capital and Other Assets







and Liabilities







Accounts Receivable



308,996



109,654

Inventories



18,979



106,799

Accounts Payable



(194,082)



(53,652)

Accrued Taxes Payable



(114,998)



(21,950)

Other Assets



6,935



8,863

Other Liabilities



54,092



29,055

Changes in Components of Working Capital Associated with 







Investing and Financing Activities



94,381



(17,988)







Discretionary Cash Flow (Non-GAAP)


$

1,914,777


$

1,859,804








Discretionary Cash Flow (Non-GAAP) - Percentage Increase



3%











Discretionary Cash Flow (Non-GAAP)


$

1,914,777


$

1,859,804

Less:  







Total Cash Expenditures Excluding Acquisitions (Non-GAAP)(a)



(1,732,476)



(1,478,097)

Dividends Paid (GAAP) 



(127,546)



(97,026)

Free Cash Flow (Non-GAAP)


$

54,755


$

284,681















(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Expenditures Excluding Acquisitions (Non-GAAP) for the three-month periods ended March 31, 2019 and 2018:








Total Expenditures (GAAP)


$

2,101,919


$

1,546,641

Less:  







          Asset Retirement Costs



(5,156)



(12,100)

          Non-Cash Expenditures of Other Property, Plant and Equipment



-



(47,635)

          Non-Cash Acquisition Costs of Unproved Properties



(43,481)



(8,809)

          Acquisition Costs of Proved Properties



(320,806)



-

Total Cash Expenditures Excluding Acquisitions (Non-GAAP) 


$

1,732,476


$

1,478,097

 

EOG RESOURCES, INC.

Quantitative Reconciliation of Adjusted Earnings Before Interest Expense, Net,

Income Taxes, Depreciation, Depletion and Amortization, Exploration Costs, 

Dry Hole Costs, Impairments and Additional Items (Adjusted EBITDAX)

 (Non-GAAP) to Net Income (GAAP)

(Unaudited; in thousands)








The following chart adjusts the three-month periods ended March 31, 2019 and 2018 reported Net Income (GAAP) to Earnings Before Interest Expense (Net), Income Taxes (Income Tax Provision), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments (EBITDAX) (Non-GAAP) and further adjusts such amount to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (MTM) losses from these transactions and to eliminate the losses on asset dispositions (Net).  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Net Income (GAAP) to add back Interest Expense (Net), Income Taxes (Income Tax Provision), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments and further adjust such amount to match realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.









Three Months Ended



March 31,



2019


2018









Net Income (GAAP)

$

635,426


$

638,589









Adjustments:







     Interest Expense, Net


54,906



61,956


     Income Tax Provision


191,810



174,770


     Depreciation, Depletion and Amortization


879,595



748,591


     Exploration Costs


36,324



34,836


     Dry Hole Costs


94



-


     Impairments 


72,356



64,609


             EBITDAX (Non-GAAP)


1,870,511



1,723,351


     Total Losses on MTM Commodity Derivative Contracts  


20,580



59,771


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


20,846



(21,965)


     Losses on Asset Dispositions, Net


3,836



14,969









Adjusted EBITDAX (Non-GAAP)

$

1,915,773


$

1,776,126









Adjusted EBITDAX (Non-GAAP) - Percentage Increase


8%





 

EOG RESOURCES, INC.

Quantitative Reconciliation of Net Debt (Non-GAAP) and Total

Capitalization (Non-GAAP) as Used in the Calculation of

The Net Debt-to-Total Capitalization Ratio (Non-GAAP) to

Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP)

(Unaudited; in millions, except ratio data)







The following chart reconciles Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation.  A portion of the cash is associated with international subsidiaries; tax considerations may impact debt paydown.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt and Total Capitalization (Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation.  EOG management uses this information for comparative purposes within the industry.








At


At


March 31,


December 31,


2019


2018







Total Stockholders' Equity - (a)

$

19,904


$

19,364







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


6,081



6,083

Less: Cash 


(1,136)



(1,556)

Net Debt (Non-GAAP) - (c)


4,945



4,527







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

$

25,985


$

25,447







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

$

24,849


$

23,891







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


23%



24%







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


20%



19%

 

EOG RESOURCES, INC.

Crude Oil and Natural Gas Financial Commodity

Derivative Contracts













EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method.  Prices received by EOG for its crude oil production generally vary from NYMEX West Texas Intermediate prices due to adjustments for delivery location (basis) and other factors.  EOG has entered into crude oil basis swap contracts in order to fix the differential between pricing in Midland, Texas, and Cushing, Oklahoma (Midland Differential).  Presented below is a comprehensive summary of EOG's Midland Differential basis swap contracts through April 26, 2019.  The weighted average price differential expressed in $/Bbl represents the amount of reduction to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.

























Midland Differential Basis Swap Contracts










Weighted












Average Price










Volume


Differential










(Bbld) 


($/Bbl) 

2019











January 1, 2019 through May 31, 2019 (closed)







20,000


$           1.075

June 1, 2019 through December 31, 2019 







20,000


1.075

























EOG has also entered into crude oil basis swap contracts in order to fix the differential between pricing in the U.S. Gulf Coast and Cushing, Oklahoma (Gulf Coast Differential).  Presented below is a comprehensive summary of EOG's Gulf Coast Differential basis swap contracts through April 26, 2019.  The weighted average price differential expressed in $/Bbl represents the amount of addition to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.

























Gulf Coast Differential Basis Swap Contracts










Weighted












Average Price










Volume


Differential










(Bbld) 


($/Bbl) 

2019











January 1, 2019 through May 31, 2019 (closed) 







13,000


$           5.572

June 1, 2019 through December 31, 2019 







13,000


5.572

























Presented below is a comprehensive summary of EOG's crude oil price swap contracts through April 26, 2019, with notional volumes expressed in Bbld and prices expressed in $/Bbl.  

























Crude Oil Price Swap Contracts










Weighted










Volume


Average Price










(Bbld) 


($/Bbl) 

2019











April 2019








25,000


$           60.00

May 1, 2019 through December 31, 2019







150,000


62.50

























Presented below is a comprehensive summary of EOG's natural gas price swap contracts through April 26, 2019, with notional volumes expressed in MMBtud and prices expressed in $/MMBtu.

























Natural Gas Price Swap Contracts












Weighted










Volume


Average Price










(MMBtud)


($/MMBtu)

2019











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







250,000


$             2.90

June 1, 2019 through October 31, 2019 







250,000


2.90

























Definitions











Bbld

Barrels per day










$/Bbl

Dollars per barrel










MMBtud      

Million British thermal units per day










$/MMBtu

Dollars per million British thermal units










NYMEX

U.S. New York Mercantile Exchange










 

EOG RESOURCES, INC.

Direct After-Tax Rate of Return (ATROR)


The calculation of our direct after-tax rate of return (ATROR) with respect to our capital expenditure program for a particular play or well is based on the estimated recoverable reserves ("net" to EOG's interest) for all wells in such play or such well (as the case may be), the estimated net present value (NPV) of the future net cash flows from such reserves (for which we utilize certain assumptions regarding future commodity prices and operating costs) and our direct net costs incurred in drilling or acquiring (as the case may be) such wells or well (as the case may be).  As such, our direct ATROR with respect to our capital expenditures for a particular play or well cannot be calculated from our consolidated financial statements. 



Direct ATROR

Based on Cash Flow and Time Value of Money

  - Estimated future commodity prices and operating costs

  - Costs incurred to drill, complete and equip a well, including facilities

Excludes Indirect Capital

  - Gathering and Processing and other Midstream

  - Land, Seismic, Geological and Geophysical


Payback ~12 Months on 100% Direct ATROR Wells

First Five Years ~1/2 Estimated Ultimate Recovery Produced but ~3/4 of NPV Captured



Return on Equity / Return on Capital Employed 

Based on GAAP Accrual Accounting

Includes All Indirect Capital and Growth Capital for Infrastructure

  - Eagle Ford, Bakken, Permian Facilities

  - Gathering and Processing

Includes Legacy Gas Capital and Capital from Mature Wells

 

EOG RESOURCES, INC.

Quantitative Reconciliation of After-Tax Net Interest Expense (Non-GAAP), Adjusted Net Income (Non-GAAP),

Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP) as Used in the Calculations of Return on Capital

Employed (Non-GAAP) and Return on Equity (Non-GAAP) to Net Interest Expense (GAAP), Net Income

(GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP), Respectively

(Unaudited; in millions, except ratio data)










The following chart reconciles Net Interest Expense (GAAP), Net Income (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Adjusted Net Income (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) and Return on Equity (ROE) calculations.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Adjusted Net Income, Net Debt and Total Capitalization (Non-GAAP) in their ROCE and ROE calculations.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.












2018



2017




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


















Net Interest Expense (GAAP)

$

245







Tax Benefit Imputed (based on 21%) 


(51)







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

$

194
















Net Income (GAAP) - (b)                                                   

$

3,419







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


(201)

(1)






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

$

3,218
















Total Stockholders' Equity - (d)   

$

19,364


$

16,283













Average Total Stockholders' Equity * - (e)   

$

17,824
















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

$

6,083


$

6,387




Less: Cash                                                       


(1,556)



(834)




Net Debt (Non-GAAP) - (g) 

$

4,527


$

5,553













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

$

25,447


$

22,670













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

$

23,891


$

21,836













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

$

22,864
















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


15.8%
















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


14.9%
















Return on Equity (ROE)


















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


19.2%
















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


18.1%
















* Average for the current and immediately preceding year



















Adjustments to Net Income (GAAP)



























(1) See below schedule for detail of adjustments to Net Income (GAAP) in 2018:












Year Ended December 31, 2018



 Before 



 Income Tax  



 After 



 Tax 



 Impact 



 Tax 

Adjustments:









    Add:   Mark-to-Market Commodity Derivative Contracts Impact

$

(93)


$

20


$

(73)

    Add:   Impairments of Certain Assets


153



(34)



119

    Less:   Net Gains on Asset Dispositions


(175)



38



(137)

    Less:  Tax Reform Impact


-



(110)



(110)

Total

$

(115)


$

(86)


$

(201)

 

EOG RESOURCES, INC.

Quantitative Reconciliation of After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total

Capitalization (Non-GAAP) as Used in the Calculation of Return on Capital Employed (Non-GAAP) to Net Interest

Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP), Respectively

(Unaudited; in millions, except ratio data)












The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.














2017


2016


2015


2014


2013

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











(Calculated Using GAAP Net Income)






















Net Interest Expense (GAAP)

$

274

$

282

$

237

$

201

$

235

Tax Benefit Imputed (based on 35%) 


(96)


(99)


(83)


(70)


(82)

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

$

178

$

183

$

154

$

131

$

153












Net Income (Loss) (GAAP) - (b)                                                   

$

2,583

$

(1,097)

$

(4,525)

$

2,915

$

2,197












Total Stockholders' Equity - (d)   

$

16,283

$

13,982

$

12,943

$

17,713

$

15,418












Average Total Stockholders' Equity * - (e)   

$

15,133

$

13,463

$

15,328

$

16,566

$

14,352












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

$

6,387

$

6,986

$

6,655

$

5,906

$

5,909

Less: Cash                                                       


(834)


(1,600)


(719)


(2,087)


(1,318)

Net Debt (Non-GAAP) - (g) 

$

5,553

$

5,386

$

5,936

$

3,819

$

4,591












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

$

22,670

$

20,968

$

19,598

$

23,619

$

21,327












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

$

21,836

$

19,368

$

18,879

$

21,532

$

20,009












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

$

20,602

$

19,124

$

20,206

$

20,771

$

19,365












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


13.4%


-4.8%


-21.6%


14.7%


12.1%












Return on Equity (ROE) (GAAP)






















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


17.1%


-8.1%


-29.5%


17.6%


15.3%













* Average for the current and immediately preceding year























EOG RESOURCES, INC.

Quantitative Reconciliation of After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total

Capitalization (Non-GAAP) as Used in the Calculation of Return on Capital Employed (Non-GAAP) to Net Interest

Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP), Respectively

(Unaudited; in millions, except ratio data)












The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.














2012


2011


2010


2009


2008

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











(Calculated Using GAAP Net Income)






















Net Interest Expense (GAAP)

$

214

$

210

$

130

$

101

$

52

Tax Benefit Imputed (based on 35%) 


(75)


(74)


(46)


(35)


(18)

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

$

139

$

136

$

84

$

66

$

34












Net Income (Loss) (GAAP) - (b)                                                   

$

570

$

1,091

$

161

$

547

$

2,437












Total Stockholders' Equity - (d)   

$

13,285

$

12,641

$

10,232

$

9,998

$

9,015












Average Total Stockholders' Equity * - (e)   

$

12,963

$

11,437

$

10,115

$

9,507

$

8,003












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

$

6,312

$

5,009

$

5,223

$

2,797

$

1,897

Less: Cash                                                       


(876)


(616)


(789)


(686)


(331)

Net Debt (Non-GAAP) - (g) 

$

5,436

$

4,393

$

4,434

$

2,111

$

1,566












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

$

19,597

$

17,650

$

15,455

$

12,795

$

10,912












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

$

18,721

$

17,034

$

14,666

$

12,109

$

10,581












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

$

17,878

$

15,850

$

13,388

$

11,345

$

9,351












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


4.0%


7.7%


1.8%


5.4%


26.4%












Return on Equity (ROE) (GAAP)






















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


4.4%


9.5%


1.6%


5.8%


30.5%























* Average for the current and immediately preceding year























EOG RESOURCES, INC.

Quantitative Reconciliation of After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total

Capitalization (Non-GAAP) as Used in the Calculation of Return on Capital Employed (Non-GAAP) to Net Interest

Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP), Respectively

(Unaudited; in millions, except ratio data)












The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.














2007


2006


2005


2004


2003

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











(Calculated Using GAAP Net Income)






















Net Interest Expense (GAAP)

$

47

$

43

$

63

$

63

$

59

Tax Benefit Imputed (based on 35%) 


(16)


(15)


(22)


(22)


(21)

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

$

31

$

28

$

41

$

41

$

38












Net Income (Loss) (GAAP) - (b)                                                   

$

1,090

$

1,300

$

1,260

$

625

$

430












Total Stockholders' Equity - (d)   

$

6,990

$

5,600

$

4,316

$

2,945

$

2,223












Average Total Stockholders' Equity * - (e)   

$

6,295

$

4,958

$

3,631

$

2,584

$

1,948












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

$

1,185

$

733

$

985

$

1,078

$

1,109

Less: Cash                                                       


(54)


(218)


(644)


(21)


(4)

Net Debt (Non-GAAP) - (g) 

$

1,131

$

515

$

341

$

1,057

$

1,105












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

$

8,175

$

6,333

$

5,301

$

4,023

$

3,332












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

$

8,121

$

6,115

$

4,657

$

4,002

$

3,328












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

$

7,118

$

5,386

$

4,330

$

3,665

$

3,068












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


15.7%


24.7%


30.0%


18.2%


15.3%












Return on Equity (ROE) (GAAP)






















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


17.3%


26.2%


34.7%


24.2%


22.1%























* Average for the current and immediately preceding year























EOG RESOURCES, INC.

Quantitative Reconciliation of After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total

Capitalization (Non-GAAP) as Used in the Calculation of Return on Capital Employed (Non-GAAP) to Net Interest

Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP), Respectively

(Unaudited; in millions, except ratio data)












The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-GAAP) calculation.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.














2002


2001


2000


1999


1998

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











(Calculated Using GAAP Net Income)






















Net Interest Expense (GAAP)

$

60

$

45

$

61

$

62



Tax Benefit Imputed (based on 35%) 


(21)


(16)


(21)


(22)



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

$

39

$

29

$

40

$

40














Net Income (Loss) (GAAP) - (b)                                                   

$

87

$

399

$

397

$

569














Total Stockholders' Equity - (d)   

$

1,672

$

1,643

$

1,381

$

1,130

$

1,280












Average Total Stockholders' Equity * - (e)   

$

1,658

$

1,512

$

1,256

$

1,205














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

$

1,145

$

856

$

859

$

990

$

1,143

Less: Cash                                                       


(10)


(3)


(20)


(25)


(6)

Net Debt (Non-GAAP) - (g) 

$

1,135

$

853

$

839

$

965

$

1,137












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

$

2,817

$

2,499

$

2,240

$

2,120

$

2,423












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

$

2,807

$

2,496

$

2,220

$

2,095

$

2,417












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

$

2,652

$

2,358

$

2,158

$

2,256














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


4.8%


18.2%


20.2%


27.0%














Return on Equity (ROE) (GAAP)






















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


5.2%


26.4%


31.6%


47.2%

























* Average for the current and immediately preceding year

 

EOG RESOURCES, INC.

Cash Operating Expenses per Barrel of Oil Equivalent (Boe)

(Unaudited; in thousands, except per Boe amounts)







































1st Quarter










2019


2018




















Cash Operating Expenses (GAAP)*












Lease and Well


$    336,291


$    300,064








Transportation Costs


176,522


176,957








General and Administrative


106,672


94,698








     Cash Operating Expenses 


619,485


571,719








Less:  Non-GAAP Adjustments


-


-








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


$    619,485


$    571,719




















Volume - Thousand Barrels of Oil Equivalent - (b)


69,623


59,394




















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


$          8.90

(c)

$          9.63

(d)



















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












1Q19 compared to 1Q18 - [(c) - (d)] / (d)       


-8%


































* Includes stock compensation expense and other non-cash items.


























EOG RESOURCES, INC.

Cash Operating Expenses per Barrel of Oil Equivalent (Boe)

(Unaudited; in thousands, except per Boe amounts)







































Year Ended




December 31,




2018


2017


2016


2015


2014














Cash Operating Expenses (GAAP)*












Lease and Well


$  1,282,678


$  1,044,847


$    927,452


$  1,182,282


$  1,416,413


Transportation Costs


746,876


740,352


764,106


849,319


972,176


General and Administrative


426,969


434,467


394,815


366,594


402,010


     Cash Operating Expenses


2,456,523


2,219,666


2,086,373


2,398,195


2,790,599


Less:  Legal Settlement - Early Leasehold Termination


-


(10,202)


-


(19,355)


-


Less:  Voluntary Retirement Expense


-


-


(42,054)


-


-


Less:  Acquisition Costs - Yates Transaction


-


-


(5,100)


-


-


Less:  Joint Venture Transaction Costs


-


(3,056)


-


-


-


Less:  Joint Interest Billings Deemed Uncollectible


-


(4,528)


-


-


-


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


$  2,456,523


$  2,201,880


$  2,039,219


$  2,378,840


$  2,790,599














Volume - Thousand Barrels of Oil Equivalent - (b)


262,516


222,251


204,929


208,862


217,073














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


$          9.36

(c)

$          9.91

(d)

$          9.95

(e)

$        11.39

(f)

$        12.86

(g)













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












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


-6%










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


-6%










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


-18%










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


-27%


































* Includes stock compensation expense and other non-cash items.


 

EOG RESOURCES, INC.

Cost per Barrel of Oil Equivalent (Boe)

(Unaudited; in thousands, except per Boe amounts)

























Three Months Ended











March 31,











2019




















Volume - Thousand Barrels of Oil Equivalent - (a)


69,623




















     Crude Oil and Condensate


$               2,200,403









     Natural Gas Liquids


218,638









     Natural Gas


334,972









Total Wellhead Revenues - (b)


$               2,754,013




















Operating Costs











     Lease and Well


$                  336,291









     Transportation Costs


176,522









     Gathering and Processing Costs


111,295









     General and Administrative


106,672









     Taxes Other Than Income


192,906









     Interest Expense, Net


54,906









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


$                  978,592




















     Depreciation, Depletion and Amortization (DD&A)


879,595









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


$               1,858,187




















     Exploration Costs


$                    36,324









     Dry Hole Costs


94









     Impairments


72,356









     Total Exploration Costs 


108,774









          Less:  Impairments (Non-GAAP)


(23,745)









     Total Exploration Costs (Non-GAAP)


$                    85,029




















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


$               1,943,216




















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


$                     39.56




















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


$                     14.06




















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


$                     25.50




















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


$                     26.69




















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


$                     12.87




















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


$                     27.91




















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


$                     11.65































EOG RESOURCES, INC.

Cost per Barrel of Oil Equivalent (Boe)

(Unaudited; in thousands, except per Boe amounts)

























Year Ended



December 31,



2018


2017


2016


2015


2014












Volume - Thousand Barrels of Oil Equivalent - (a)


262,516


222,251


204,929


208,862


217,073












     Crude Oil and Condensate


$               9,517,440


$  6,256,396


$  4,317,341


$  4,934,562


$    9,742,480

     Natural Gas Liquids


1,127,510


729,561


437,250


407,658


934,051

     Natural Gas


1,301,537


921,934


742,152


1,061,038


1,916,386

Total Wellhead Revenues - (b)


$             11,946,487


$  7,907,891


$  5,496,743


$  6,403,258


$  12,592,917












Operating Costs











     Lease and Well


$               1,282,678


$  1,044,847


$    927,452


$  1,182,282


$    1,416,413

     Transportation Costs


746,876


740,352


764,106


849,319


972,176

     Gathering and Processing Costs


436,973


148,775


122,901


146,156


145,800












     General and Administrative


426,969


434,467


394,815


366,594


402,010

          Less:  Voluntary Retirement Expense


-


-


(42,054)


-


-

          Less:  Acquisition Costs


-


-


(5,100)


-


-

          Less:  Legal Settlement - Early Leasehold Termination


-


(10,202)


-


(19,355)


-

          Less:  Joint Venture Transaction Costs


-


(3,056)


-


-


-

          Less:  Joint Interest Billings Deemed Uncollectible


-


(4,528)


-


-


-

     General and Administrative (Non-GAAP)


426,969


416,681


347,661


347,239


402,010












     Taxes Other Than Income


772,481


544,662


349,710


421,744


757,564

     Interest Expense, Net


245,052


274,372


281,681


237,393


201,458

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


$               3,911,029


$  3,169,689


$  2,793,511


$  3,184,133


$    3,895,421












     Depreciation, Depletion and Amortization (DD&A)


3,435,408


3,409,387


3,553,417


3,313,644


3,997,041

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


$               7,346,437


$  6,579,076


$  6,346,928


$  6,497,777


$    7,892,462












     Exploration Costs


$                  148,999


$    145,342


$    124,953


$    149,494


$      184,388

     Dry Hole Costs


5,405


4,609


10,657


14,746


48,490

     Impairments


347,021


479,240


620,267


6,613,546


743,575

     Total Exploration Costs 


501,425


629,191


755,877


6,777,786


976,453

          Less:  Impairments (Non-GAAP)


(152,671)


(261,452)


(320,617)


(6,307,593)


(824,312)

     Total Exploration Costs (Non-GAAP)


$                  348,754


$    367,739


$    435,260


$    470,193


$      152,141












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


$               7,695,191


$  6,946,815


$  6,782,188


$  6,967,970


$    8,044,603












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


$                     45.51


$        35.58


$        26.82


$        30.66


$          58.01












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


$                     14.90


$        14.25


$        13.64


$        15.25


$          17.95












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


$                     30.61


$        21.33


$        13.18


$        15.41


$          40.06












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


$                     27.99


$        29.59


$        30.98


$        31.11


$          36.38












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


$                     17.52


$          5.99


$         (4.16)


$         (0.45)


$          21.63












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


$                     29.32


$        31.24


$        33.10


$        33.36


$          37.08












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


$                     16.19


$          4.34


$         (6.28)


$         (2.70)


$          20.93

 

EOG RESOURCES, INC.

Second Quarter and Full Year 2019 Forecast and Benchmark Commodity Pricing













     (a)  Second Quarter and Full Year 2019 Forecast













The forecast items for the second quarter and full year 2019 set forth below for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of the accompanying press release.  EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.  This forecast, which should be read in conjunction with the accompanying press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.













     (b)  Capital Expenditures













The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Exploration Costs, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs and any Non-Cash Exchanges.













     (c)  Benchmark Commodity Pricing













EOG bases United States and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.













EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.



















Estimated Ranges












(Unaudited)








2Q 2019



Full Year 2019

Daily Sales Volumes












     Crude Oil and Condensate Volumes (MBbld)












          United States


446.5

-


454.1



442.6

-


458.2

          Trinidad


0.5

-


0.7



0.4

-


0.6

          Other International


0.0

-


0.2



0.0

-


0.2

               Total


447.0

-


455.0



443.0

-


459.0













     Natural Gas Liquids Volumes (MBbld)












               Total


122.0

-


132.0



120.0

-


140.0













     Natural Gas Volumes (MMcfd)












          United States


1,025

-


1,075



1,030

-


1,130

          Trinidad


245

-


275



250

-


290

          Other International


30

-


40



30

-


40

               Total


1,300

-


1,390



1,310

-


1,460













     Crude Oil Equivalent Volumes (MBoed)  












          United States


739.3

-


765.3



734.3

-


786.5

          Trinidad


41.3

-


46.5



42.1

-


48.9

          Other International


5.0

-


6.9



5.0

-


6.9

               Total


785.6

-


818.7



781.4

-


842.3

























Capital Expenditures ($MM)

$

1,600

-

$

1,800


$

6,100

-

$

6,500



















Estimated Ranges












(Unaudited)







2Q 2019



Full Year 2019

Operating Costs












     Unit Costs ($/Boe)












          Lease and Well

$

4.65

-

$

5.05


$

4.50

-

$

5.30

          Transportation Costs

$

2.30

-

$

2.80


$

2.50

-

$

3.00

          Depreciation, Depletion and Amortization

$

12.75

-

$

13.25


$

12.25

-

$

13.25













Expenses ($MM)












     Exploration and Dry Hole

$

30

-

$

40


$

155

-

$

195

     Impairment

$

55

-

$

65


$

190

-

$

230

     General and Administrative

$

110

-

$

120


$

450

-

$

490

     Gathering and Processing 

$

110

-

$

120


$

440

-

$

480

     Capitalized Interest

$

7

-

$

9


$

30

-

$

35

     Net Interest

$

50

-

$

52


$

185

-

$

195













Taxes Other Than Income (% of Wellhead Revenue)


7.0%

-


7.4%



7.0%

-


7.4%













Income Taxes












     Effective Rate 


21%

-


26%



21%

-


26%

     Current Tax (Benefit) / Expense ($MM)

$

-

-

$

40


$

(10)

-

$

30













Pricing - (Refer to Benchmark Commodity Pricing in text)












     Crude Oil and Condensate ($/Bbl)












          Differentials












               United States - above (below) WTI

$

0.50

-

$

1.50


$

(0.50)

-

$

1.50

               Trinidad - above (below) WTI

$

(11.00)

-

$

(9.00)


$

(11.00)

-

$

(9.00)

               Other International - above (below) WTI

$

(9.00)

-

$

(5.00)


$

(1.00)

-

$

1.00













     Natural Gas Liquids












          Realizations as % of WTI


32%

-


40%



32%

-


40%













     Natural Gas ($/Mcf)












          Differentials












               United States - above (below) NYMEX Henry Hub

$

(0.60)

-

$

(0.20)


$

(0.80)

-

$

(0.20)













          Realizations












               Trinidad

$

2.60

-

$

3.00


$

2.50

-

$

3.20

               Other International

$

4.20

-

$

4.70


$

4.00

-

$

5.00













Definitions












$/Bbl         U.S. Dollars per barrel












$/Boe        U.S. Dollars per barrel of oil equivalent












$/Mcf         U.S. Dollars per thousand cubic feet












$MM          U.S. Dollars in millions












MBbld       Thousand barrels per day












MBoed      Thousand barrels of oil equivalent per day












MMcfd       Million cubic feet per day












NYMEX     U.S. New York Mercantile Exchange












WTI           West Texas Intermediate












 

Cision View original content:http://www.prnewswire.com/news-releases/eog-resources-reports-outstanding-first-quarter-2019-results-and-raises-dividend-by-31-percent-300843203.html

SOURCE EOG Resources, Inc.