EOG
$78.10
Eog Resources
$1.23
1.60%
Earnings Details
2nd Quarter June 2021
Wednesday, August 4, 2021 4:24:00 PM
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Summary

Eog Resources (EOG) Recent Earnings

Eog Resources (EOG) reported 2nd Quarter June 2021 earnings of $1.73 per share on revenue of $4.1 billion. The consensus earnings estimate was $1.54 per share on revenue of $3.8 billion. Revenue grew 275.1% 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
$1.73
Earnings Whisper
-
Consensus Estimate
$1.54
Reported Revenue
$4.14 Bil
Revenue Estimate
$3.84 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

EOG Resources Reports Second Quarter 2021 Results

HOUSTON, Aug. 4, 2021 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported second quarter 2021 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 and ratio data




2Q 2021


1Q 2021


2Q 2020


GAAP

Total Revenue

4,139


3,694


1,103


Net Income (Loss)

907


677


(910)


Net Income (Loss) Per Share

1.55


1.16


(1.57)


Net Cash Provided by Operating Activities

1,559


1,870


88


Total Expenditures

1,089


1,067


534


Current and Long-Term Debt

5,125


5,133


5,724


Cash and Cash Equivalents

3,880


3,388


2,417


Debt-to-Total Capitalization

19.7

%

19.8

%

21.9

%


Non- GAAP

Adjusted Net Income (Loss)

1,012


946


(131)


Adjusted Net Income (Loss) Per Share

1.73


1.62


(0.23)


Discretionary Cash Flow

2,030


2,010


672


Cash Capital Expenditures before Acquisitions

972


945


478


Free Cash Flow

1,058


1,065


194


Net Debt

1,245


1,745


3,307


Net Debt-to-Total Capitalization

5.6

%

7.8

%

14.0

%

Second Quarter 2021 Highlights

  • Earned adjusted net income of $1.0 billion, or $1.73 per share
  • Generated over $1.0 billion of free cash flow
  • Capital expenditures below low end of guidance range driven by sustainable cost reductions
  • Increased full-year well cost reduction target to 7% from 5%
  • Oil production above high end of guidance range
  • Total per-unit cash operating costs 3% below guidance midpoint
  • Achieved strong ESG performance in 2020 driven by technology and innovation, positioning EOG ahead of pace to meet near-term ESG targets

Volumes and Capital Expenditures

Wellhead Volumes

2Q 2021

2Q 2021
Guidance
Midpoint

1Q 2021

2Q 2020

Crude Oil and Condensate (MBod)

448.6

443.0

431.0

331.1

Natural Gas Liquids (MBbld)

138.5

132.5

124.3

101.2

Natural Gas (MMcfd)

1,445

1,386

1,342

1,147

Total Crude Oil Equivalent (MBoed)

828.0

806.5

778.9

623.4


Cash Capital Expenditures before Acquisitions ($MM)

972

1,100

945

478

 

From William R. "Bill" Thomas, Chairman and Chief Executive Officer
"EOG is consistently delivering strong results. Our talented employees, supported by our unique culture, have risen to meet the double-premium investment standard in every aspect of the business. Outstanding operating execution, strong well productivity and lower well costs resulted in higher production and lower capital expenditures compared with our plan. We further lowered operating costs while our differentiated marketing strategy captured premium product prices.

"As a result, we generated a second consecutive quarter of record-level free cash flow. Our longstanding free cash flow priorities remain intact. We have already committed to return $1.5 billion of cash to shareholders in 2021 through regular and special dividends, including $820 million paid on July 30. Returning cash to shareholders remains a priority as we generate additional free cash flow during the second half of the year.

"EOG's industry-leading execution extends to our environmental performance, where we are driving meaningful reductions in GHG and methane emissions intensity. We have almost completely eliminated routine flaring and continue to increase the percentage of recycled water used in our operations. Our entrepreneurial culture fosters new technology and innovations to further enhance our performance. Our successful closed-loop gas capture pilot is being expanded to additional locations. And we recently initiated a carbon capture and storage pilot project. Our goal remains to be among the lowest cost, highest return and lowest emissions producers and to play a significant role in the long-term future of energy.

"Our outstanding second quarter results are a testament to EOG's special culture. EOG has never been in better shape and we are getting even better. With the momentum we are building from the shift to double premium, I am confident the company will continue to make significant improvements in the years ahead."
  

Second Quarter 2021 Financial Performance


 

Adjusted Earnings per Share 2Q 2021 vs 1Q 2021

Prices and Hedges
Overall crude oil equivalent prices increased slightly in 2Q, with higher crude oil and NGL prices partially offset by lower natural gas prices.

Cash paid for hedge settlements increased to $193 million in 2Q compared with payments of $30 million in 1Q.

Volumes
Total company crude oil production of 448,600 Bopd was above the high end of the guidance range and 4% more than 1Q, which was impacted by adverse weather. NGL production was 11% higher and natural gas production was 8% higher, contributing to an overall 6% increase in total company equivalent volumes.

Per-Unit Costs
Total per-unit cash operating costs in 2Q were 3% below the midpoint of the guidance range, and lower compared with 1Q, due to reductions in lease and well costs from compression savings and gathering and processing costs from lower fuel and power rates.

Change in Cash 2Q 2021 vs 1Q 2021

Free Cash Flow
EOG generated discretionary cash flow (net cash provided by operating activities before exploration costs and changes in working capital) of $2.03 billion in 2Q. The company incurred $972 million of cash capital expenditures before acquisitions, resulting in $1.06 billion of free cash flow.

Capital Expenditures
Cash capital expenditures before acquisitions of $972 million were below the low end of the guidance range due to lower well costs from sustainable efficiency improvements. Faster drilling times, more efficient completion operations and lower-cost sand and water sourcing contributed to lower overall well costs. As a result, EOG has increased its full-year well cost reduction target to 7% from 5%.

 

Second Quarter 2021 Operating Performance


  

Lease and Well
Per-unit LOE costs were $0.22 below the 2Q 2021 guidance midpoint, primarily due to lower costs for compression, water handling and lease upkeep.

Transportation, Gathering and Processing
Per-unit transportation costs in 2Q were similar to 1Q and within the guidance range. Gathering and processing costs on a per-unit basis declined 14% compared with 1Q, driven by declines in fuel and power prices from elevated winter levels.

General and Administrative
G&A costs on a per-unit basis were in-line with 1Q 2021 and within the guidance range.

Depreciation, Depletion and Amortization
Per-unit DD&A costs in 2Q were below the target and down 6% compared with 1Q due to the addition of reserves from new wells at lower finding costs.

Second Quarter 2021 Results vs Guidance


 

Crude Oil and Condensate Volumes (MBod)

2Q 2021

2Q 2021
Guidance
Midpoint

Variance

1Q 2021

4Q 2020

3Q 2020

2Q 2020

United States

446.9

441.0

5.9

428.7

442.4

376.6

330.9

Trinidad

1.7

1.9

(0.2)

2.2

2.3

1.0

0.1

Other International

0.0

0.1

(0.1)

0.1

0.1

0.0

0.1

Total

448.6

443.0

5.6

431.0

444.8

377.6

331.1

Natural Gas Liquids Volumes (MBbld)

Total

138.5

132.5

6.0

124.3

141.4

140.1

101.2

Natural Gas Volumes (MMcfd)

United States

1,199

1,160

39

1,100

1,075

1,008

939

Trinidad

233

210

23

217

192

151

174

Other International

13

16

(3)

25

25

31

34

Total

1,445

1,386

59

1,342

1,292

1,190

1,147


Total Crude Oil Equivalent Volumes (MBoed)

828.0

806.6

21.4

778.9

801.5

716.0

623.4

Total MMBoe

75.3

73.4

1.9

70.1

73.7

65.9

56.7


Benchmark Price

Oil (WTI) ($/Bbl)

66.06



57.80

42.67

40.94

27.85

Natural Gas (HH) ($/Mcf)

2.83



2.69

2.65

1.94

1.73


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

United States

0.10

0.25

(0.15)

0.27

(0.81)

(0.75)

(7.45)

Trinidad

(9.80)

(11.50)

1.70

(8.03)

(9.76)

(15.53)

(27.25)

Other International

(10.50)

(8.50)

(2.00)

(19.19)

(6.77)

(15.65)

20.93


Natural Gas Liquids - Realizations as % of WTI

44.1%

40.0%

4.1%

48.5%

41.1%

35.0%

36.6%


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

United States

0.16

(0.20)

0.36

2.83

(0.36)

(0.45)

(0.62)

Natural Gas Realizations ($/Mcf)

Trinidad

3.37

3.35

0.02

3.38

3.57

2.35

2.13

Other International

5.69

5.65

0.04

5.66

5.47

4.73

4.36


Total Expenditures (GAAP) ($MM)

1,089



1,067

1,107

646

534

Capital Expenditures (non-GAAP) ($MM)

972

1,100

(128)

945

828

499

478


Operating Unit Costs ($/Boe)

Lease and Well

3.58

3.80

(0.22)

3.85

3.54

3.45

4.32

Transportation Costs

2.84

2.80

0.04

2.88

2.64

2.74

2.67

General and Administrative

1.59

1.55

0.04

1.57

1.54

1.89

2.32

Gathering and Processing

1.70

1.85

(0.15)

1.98

1.62

1.74

1.71

Cash Operating Costs

9.71

10.00

(0.29)

10.28

9.34

9.82

11.02

Depreciation, Depletion and Amortization

12.13

12.30

(0.17)

12.84

11.81

12.49

12.46


Expenses ($MM)

Exploration and Dry Hole

49

45

4

44

40

51

27

Impairment (GAAP)

44



44

143

79

305

Impairment (excluding certain impairments (non-GAAP))

43

70

(27)

43

57

52

66

Capitalized Interest

8

8

0

8

7

7

8

Net Interest

45

48

(3)

47

53

53

54


Taxes Other Than Income (% of Wellhead Revenue)

6.9%

7.0%

(0.1%)

6.7%

5.1%

7.2%

9.4%

Income Taxes

Effective Rate

19.3%

22.5%

(3.2%)

23.2%

21.1%

19.2%

20.6%

Deferred Ratio

(45%)

8%

(53%)

(18%)

60%

330%

107%

 

Third Quarter and Full-Year 2021 Guidance1


 

(Unaudited)

See "Endnotes" below for related discussion and definitions.

3Q 2021

Guidance Range

FY 2021

Guidance Range

2020

Actual

2019

Actual

Crude Oil and Condensate Volumes (MBod)









United States

440.0

-

447.0

437.0

-

445.0

408.1

455.5

Trinidad

0.5

-

1.5

1.0

-

1.8

1.0

0.6

Other International

0.0

-

0.0

0.0

-

0.2

0.1

0.1

Total

440.5

-

448.5

438.0

-

447.0

409.2

456.2

Natural Gas Liquids Volumes (MBbld)









Total

135.0

-

145.0

130.0

-

140.0

136.0

134.1

Natural Gas Volumes (MMcfd)









United States

1,150

-

1,250

1,150

-

1,250

1,040

1,069

Trinidad

195

-

225

200

-

230

180

260

Other International

0

-

0

5

-

15

32

37

Total

1,345

-

1,475

1,355

-

1,495

1,252

1,366

Crude Oil Equivalent Volumes (MBoed)









United States

766.7

-

800.3

758.7

-

793.3

717.5

767.8

Trinidad

33.0

-

39.0

34.3

-

40.1

30.9

44.0

Other International

0.0

-

0.0

0.8

-

2.7

5.4

6.2

Total

799.7

-

839.3

793.8

-

836.1

753.8

818.0










Benchmark Price









Oil (WTI) ($/Bbl)







39.40

57.04

Natural Gas (HH) ($/Mcf)







2.08

2.62










Crude Oil and Condensate Differentials - above (below) WTI2 ($/Bbl)

United States

(0.20)

-

0.80

(0.20)

-

0.80

(0.75)

0.70

Trinidad

(8.50)

-

(6.50)

(10.50)

-

(8.50)

(9.20)

(9.88)

Natural Gas Liquids - Realizations as % of WTI









Total

45%

-

55%

42%

-

52%

34.0%

28.1%

Natural Gas Differentials - above (below) NYMEX Henry Hub3 ($/Mcf)

United States

0.10

-

0.50

0.70

-

0.90

(0.47)

(0.40)

Natural Gas Realizations ($/Mcf)









Trinidad

3.10

-

3.60

3.10

-

3.60

2.57

2.72










Total Expenditures (GAAP) ($MM)







4,113

6,900

Capital Expenditures4 (non-GAAP) ($MM)

900

-

1,100

3,700

-

4,100

3,490

6,234










Operating Unit Costs ($/Boe)









Lease and Well

3.45

-

4.15

3.40

-

4.10

3.85

4.58

Transportation Costs

2.80

-

3.20

2.75

-

3.15

2.66

2.54

General and Administrative

1.75

-

1.85

1.55

-

1.65

1.75

1.64

Gathering and Processing

1.80

-

2.00

1.75

-

1.95

1.66

1.60

Cash Operating Costs

9.80

-

11.20

9.45

-

10.85

9.92

10.36

Depreciation, Depletion and Amortization

11.70

-

12.30

11.70

-

12.70

12.32

12.56










Expenses ($MM)









Exploration and Dry Hole

35

-

45

160

-

180

159

168

Impairment (GAAP)







2,100

518

Impairment (excluding certain impairments (non-GAAP))

65

-

105

255

-

295

232

243

Capitalized Interest

5

-

10

25

-

30

31

38

Net Interest

42

-

48

180

-

185

205

185










Taxes Other Than Income (% of Wellhead Revenue)

6.0%

-

8.0%

6.5%

-

7.5%

6.6%

6.9%

Income Taxes









Effective Rate

21%

-

26%

20%

-

25%

18.2%

22.9%

Deferred Ratio

25%

-

40%

0%

-

15%

54.8%

107.4%

 

Second Quarter 2021 Results Webcast
Thursday, August 5, 2021, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG's website for one year.
https://investors.eogresources.com/Investors

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

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

Media and Investor Contact
Kimberly Ehmer 713-571-4676

Endnotes


1)

The forecast items for the third quarter and full year 2021 set forth above 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.



2)

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.



3)

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.



4)

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 Transactions.

 

Glossary


Acq

Acquisitions

ATROR

After-tax rate of return

Bbl

Barrel

Bn

Billion

Boe

Barrels of oil equivalent

Bopd

Barrels of oil per day

Capex

Capital expenditures

CO2e

Carbon dioxide equivalent

DCF

Discretionary cash flow

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

OTP

Other than price

NYMEX

U.S. New York Mercantile Exchange

QoQ

Quarter over quarter

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," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet goals or ambitions with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, or pay and/or increase dividends are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Furthermore, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow or discretionary cash flow, 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 impairments and 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, natural gas and related commodities;
  • the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
  • the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion, operating and capital costs related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
  • the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, natural gas liquids, 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, 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 any changes or other actions which may result from the recent U.S. elections and change in U.S. administration and 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 affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
  • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and drilling, completing and operating costs with respect to such properties;
  • the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully 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, transportation, and export facilities;
  • the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
  • EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and
  • to otherwise satisfy its capital expenditure requirements;
  • the extent to which EOG is successful in its completion of planned asset dispositions;
  • the extent and effect of any hedging activities engaged in by EOG;
  • the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
  • the duration and economic and financial impact of epidemics, pandemics or other public health issues, including the COVID-19 pandemic;
  • geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
  • the 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; 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, 2020 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, 2020, 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.

 

Income Statements

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


2Q 2021


1Q 2021


2Q 2020


YTD 2021


YTD 2020

Operating Revenues and Other










Crude Oil and Condensate

2,699



2,251



615



4,950



2,680


Natural Gas Liquids

367



314



93



681



254


Natural Gas

404



625



141



1,029



351


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

(427)



(367)



(127)



(794)



1,079


Gathering, Processing and Marketing

1,022



848



362



1,870



1,401


Gains (Losses) on Asset Dispositions, Net

51



(6)



14



45



30


Other, Net

23



29



5



52



26


Total

4,139



3,694



1,103



7,833



5,821












Operating Expenses










Lease and Well

270



270



245



540



575


Transportation Costs

214



202



152



416



360


Gathering and Processing Costs

128



139



97



267



225


Exploration Costs

35



33



27



68



67


Dry Hole Costs

13



11





24




Impairments

44



44



305



88



1,878


Marketing Costs

991



838



444



1,829



1,554


Depreciation, Depletion and Amortization

914



900



707



1,814



1,707


General and Administrative

120



110



132



230



246


Taxes Other Than Income

239



215



81



454



238


Total

2,968



2,762



2,190



5,730



6,850












Operating Income (Loss)

1,171



932



(1,087)



2,103



(1,029)


Other Income (Expense), Net

(2)



(4)



(4)



(6)



14


Income (Loss) Before Interest Expense
   and Income Taxes

1,169



928



(1,091)



2,097



(1,015)


Interest Expense, Net

45



47



54



92



99


Income (Loss) Before Income Taxes

1,124



881



(1,145)



2,005



(1,114)


Income Tax Provision (Benefit)

217



204



(235)



421



(214)


Net Income (Loss)

907



677



(910)



1,584



(900)












Dividends Declared per Common Share

1.4125



0.4125



0.3750



1.8250



0.7500


Net Income (Loss) Per Share










Basic

1.56



1.17



(1.57)



2.73



(1.55)


Diluted

1.55



1.16



(1.57)



2.72



(1.55)


Average Number of Common Shares










Basic

580



580



579



580



579


Diluted

584



583



579



583



579


 

Wellhead Volumes and Prices

(Unaudited)


2Q 2021


2Q2020


% Change


1Q 2021


YTD 2021


YTD 2020


% Change















Crude Oil and Condensate Volumes
    (MBbld) (A)












United States

446.9



330.9



35

%


428.7



437.8



406.8



8

%

Trinidad

1.7



0.1



1,600

%


2.2



2.0



0.3



567

%

Other International (B)



0.1



-100

%


0.1





0.1



-100

%

Total

448.6



331.1



35

%


431.0



439.8



407.2



8

%















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














United States

66.16



20.40



224

%


58.07



62.22



36.17



72

%

Trinidad

56.26



0.60



9,290

%


49.77



52.57



27.75



89

%

Other International (B)

55.56



48.78



14

%


38.61



42.36



53.41



-21

%

Composite

66.12



20.40



224

%


58.02



62.18



36.16



72

%















Natural Gas Liquids Volumes (MBbld) (A)














United States

138.5



101.2



37

%


124.3



131.5



131.2



0

%

Total

138.5



101.2



37

%


124.3



131.5



131.2



0

%















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














United States

29.15



10.20



186

%


28.03



28.62



10.65



169

%

Composite

29.15



10.20



186

%


28.03



28.62



10.65



169

%















Natural Gas Volumes (MMcfd) (A)














United States

1,199



939



28

%


1,100



1,150



1,039



11

%

Trinidad

233



174



34

%


217



225



188



20

%

Other International (B)

13



34



-62

%


25



19



35



-46

%

Total

1,445



1,147



26

%


1,342



1,394



1,262



10

%















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














United States

2.99



1.11



170

%


5.52



4.19



1.32



217

%

Trinidad

3.37



2.13



58

%


3.38



3.37



2.15



57

%

Other International (B)

5.69



4.36



31

%


5.66



5.67



4.34



31

%

Composite

3.07



1.36



126

%


5.17



4.08



1.53



167

%















Crude Oil Equivalent Volumes (MBoed) (D)














United States

785.2



588.5



33

%


736.4



761.0



711.1



7

%

Trinidad

40.6



29.2



39

%


38.5



39.5



31.6



25

%

Other International (B)

2.2



5.7



-61

%


4.0



3.1



6.1



-49

%

Total

828.0



623.4



33

%


778.9



803.6



748.8



7

%















Total MMBoe (D)

75.3



56.7



33

%


70.1



145.4



136.3



7

%


(A)

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

(B)

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

(C)

Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021).

(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.

 

Balance Sheets

In millions of USD, except share data (Unaudited)


June 30,


December 31,


2021


2020

Current Assets




Cash and Cash Equivalents

3,880



3,329


Accounts Receivable, Net

2,015



1,522


Inventories

516



629


Assets from Price Risk Management Activities



65


Income Taxes Receivable

11



23


Other

513



294


Total

6,935



5,862



Property, Plant and Equipment




Oil and Gas Properties (Successful Efforts Method)

66,299



64,793


Other Property, Plant and Equipment

4,635



4,479


Total Property, Plant and Equipment

70,934



69,272


Less:  Accumulated Depreciation, Depletion and Amortization

(42,275)



(40,673)


Total Property, Plant and Equipment, Net

28,659



28,599


Deferred Income Taxes

3



2


Other Assets

1,288



1,342


Total Assets

36,885



35,805



Current Liabilities




Accounts Payable

2,012



1,681


Accrued Taxes Payable

286



206


Dividends Payable

820



217


Liabilities from Price Risk Management Activities

396




Current Portion of Long-Term Debt

39



781


Current Portion of Operating Lease Liabilities

253



295


Other

196



280


Total

4,002



3,460






Long-Term Debt

5,086



5,035


Other Liabilities

2,186



2,149


Deferred Income Taxes

4,730



4,859


Commitments and Contingencies








Stockholders' Equity




Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 584,102,233
    Shares Issued at June 30, 2021 and 583,694,850 Shares Issued at December
    31, 2020

206



206


Additional Paid in Capital

6,017



5,945


Accumulated Other Comprehensive Loss

(15)



(12)


Retained Earnings

14,689



14,170


Common Stock Held in Treasury, 243,058 Shares at June 30, 2021 and 124,265
    Shares at December 31, 2020

(16)



(7)


Total Stockholders' Equity

20,881



20,302


Total Liabilities and Stockholders' Equity

36,885



35,805


 

Cash Flows Statements

In millions of USD (Unaudited)


2Q 2021


2Q 2020


1Q 2021


YTD 2021


YTD 2020

Cash Flows from Operating Activities










Reconciliation of Net Income (Loss) to Net Cash Provided
    by Operating Activities:










Net Income (Loss)

907



(910)



677



1,584



(900)


Items Not Requiring (Providing) Cash










Depreciation, Depletion and Amortization

914



707



900



1,814



1,707


Impairments

44



305



44



88



1,878


Stock-Based Compensation Expenses

31



40



35



66



80


Deferred Income Taxes

(97)



(253)



(36)



(133)



(208)


(Gains) Losses on Asset Dispositions, Net

(51)



(14)



6



(45)



(30)


Other, Net

6



9



7



13




Dry Hole Costs

13





11



24




Mark-to-Market Commodity Derivative Contracts










Total (Gains) Losses

427



127



367



794



(1,079)


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

(193)



640



(30)



(223)



724


Other, Net





1



1




Changes in Components of Working Capital and Other
    Assets and Liabilities










Accounts Receivable

(186)



469



(308)



(494)



1,191


Inventories

37



(18)



64



101



85


Accounts Payable

11



(1,619)



172



183



(1,185)


Accrued Taxes Payable

(163)



(6)



243



80



(61)


Other Assets

(119)



195



(103)



(222)



253


Other Liabilities

32



2



(89)



(57)



(64)


Changes in Components of Working Capital Associated
    with Investing Activities

(54)



414



(91)



(145)



282


Net Cash Provided by Operating Activities

1,559



88



1,870



3,429



2,673


Investing Cash Flows










Additions to Oil and Gas Properties

(968)



(424)



(875)



(1,843)



(1,990)


Additions to Other Property, Plant and Equipment

(55)



(24)



(42)



(97)



(147)


Proceeds from Sales of Assets

141



17



5



146



43


Changes in Components of Working Capital Associated
    with Investing Activities

54



(414)



91



145



(282)


Net Cash Used in Investing Activities

(828)



(845)



(821)



(1,649)



(2,376)


Financing Cash Flows










Long-Term Debt Borrowings



1,484







1,484


Long-Term Debt Repayments



(1,000)



(750)



(750)



(1,000)


Dividends Paid

(239)



(217)



(219)



(458)



(384)


Treasury Stock Purchased

(2)





(10)



(12)



(5)


Proceeds from Stock Options Exercised and Employee
    Stock Purchase Plan

9



8





9



8


Debt Issuance Costs



(3)







(3)


Repayment of Finance Lease Liabilities

(9)



(5)



(9)



(18)



(8)


Net Cash Provided by (Used in) Financing Activities

(241)



267



(988)



(1,229)



92


Effect of Exchange Rate Changes on Cash

2





(2)






Increase (Decrease)  in Cash and Cash Equivalents

492



(490)



59



551



389


Cash and Cash Equivalents at Beginning of Period

3,388



2,907



3,329



3,329



2,028


Cash and Cash Equivalents at End of Period

3,880



2,417



3,388



3,880



2,417


 

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










2Q 2021


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Income (GAAP)

1,124



(217)



907



1.55


Adjustments:








Losses on Mark-to-Market Commodity Derivative Contracts

427



(93)



334



0.58


Net Cash Payments for Settlements of Commodity Derivative Contracts

(193)



42



(151)



(0.26)


Less: Gains on Asset Dispositions, Net

(51)



17



(34)



(0.06)


Add: Certain Impairments

1





1




Less: Tax Benefits Related to Exiting Canada Operations



(45)



(45)



(0.08)


Adjustments to Net Income

184



(79)



105



0.18










Adjusted Net Income (Non-GAAP)

1,308



(296)



1,012



1.73










Average Number of Common Shares (GAAP)








Basic







580


Diluted







584










Average Number of Common Shares (Non-GAAP)








Basic







580


Diluted







584




















Adjusted Net Income (Loss)

(Continued)

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


2Q 2020


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Loss (GAAP)

(1,145)



235



(910)



(1.57)


Adjustments:








Losses on Mark-to-Market Commodity Derivative Contracts

127



(29)



98



0.17


Net Cash Received from Settlements of Commodity Derivative Contracts

640



(141)



499



0.86


Less: Gains on Asset Dispositions, Net

(14)



4



(10)



(0.02)


Add: Certain Impairments

239



(47)



192



0.33


Adjustments to Net Loss

992



(213)



779



1.34










Adjusted Net Loss (Non-GAAP)

(153)



22



(131)



(0.23)










Average Number of Common Shares (GAAP)








Basic







579


Diluted







579










Average Number of Common Shares (Non-GAAP)








Basic







579


Diluted







579




















Adjusted Net Income (Loss)

(Continued)

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


1Q 2021


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Income (GAAP)

881



(204)



677



1.16


Adjustments:








Losses on Mark-to-Market Commodity Derivative Contracts

367



(81)



286



0.49


Net Cash Payments for Settlements of Commodity Derivative Contracts

(30)



7



(23)



(0.04)


Add: Losses on Asset Dispositions, Net

6



(1)



5



0.01


Add: Certain Impairments

1





1




Adjustments to Net Income

344



(75)



269



0.46










Adjusted Net Income (Non-GAAP)

1,225



(279)



946



1.62










Average Number of Common Shares (GAAP)








Basic







580


Diluted







583










Average Number of Common Shares (Non-GAAP)








Basic







580


Diluted







583




















Adjusted Net Income (Loss)

(Continued)

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


YTD 2021


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Income (GAAP)

2,005



(421)



1,584



2.72


Adjustments:








Losses on Mark-to-Market Commodity Derivative Contracts

794



(174)



620



1.07


Net Cash Payments for Settlements of Commodity Derivative Contracts

(223)



49



(174)



(0.30)


Less: Gains on Asset Dispositions, Net

(45)



16



(29)



(0.05)


Add: Certain Impairments

2





2




Less: Tax Benefits Related to Exiting Canada Operations



(45)



(45)



(0.08)


Adjustments to Net Income

528



(154)



374



0.64










Adjusted Net Income (Non-GAAP)

2,533



(575)



1,958



3.36










Average Number of Common Shares (GAAP)








Basic







580


Diluted







583










Average Number of Common Shares (Non-GAAP)








Basic







580


Diluted







583




















Adjusted Net Income (Loss)

(Continued)

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









YTD 2020


Before

Tax


Income Tax

Impact


After

Tax


Diluted

Earnings

per Share









Reported Net Loss (GAAP)

(1,114)



214



(900)



(1.55)


Adjustments:








Gains on Mark-to-Market Commodity Derivative Contracts

(1,079)



236



(843)



(1.47)


Net Cash Received from Settlements of Commodity Derivative Contracts

724



(159)



565



0.98


Less: Gains on Asset Dispositions, Net

(30)



7



(23)



(0.04)


Add: Certain Impairments

1,755



(367)



1,388



2.40


Adjustments to Net Loss

1,370



(283)



1,087



1.87










Adjusted Net Income (Non-GAAP)

256



(69)



187



0.32










Average Number of Common Shares (GAAP)








Basic







579


Diluted







579










Average Number of Common Shares (Non-GAAP)








Basic







579


Diluted







580


 

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)






1Q 2021 Adjusted Net Income per Share (Non-GAAP)



1.62






Realized Price




2Q 2021 Composite Average Wellhead Revenue per Boe

46.07




Less:  1Q 2021 Composite Average Welhead Revenue per Boe

(45.49)




Subtotal

0.58




Multiplied by: 2Q 2021 Crude Oil Equivalent Volumes (MMBoe)

75.3




Total Change in Revenue

44




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

(10)




Change in Net Income

34




Change in Diluted Earnings per Share



0.06






Net Cash Received (Paid) from Settlements of Commodity Derivative Contracts




2Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative
    Contracts

(193)




Less:  Income Tax Benefit (Cost)

42




After Tax - (a)

(151)




1Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative Contracts

(30)




Less:  Income Tax Benefit (Cost)

7




After Tax - (b)

(23)




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

(128)




Change in Diluted Earnings per Share



(0.22)






Wellhead Volumes




2Q 2021 Crude Oil Equivalent Volumes (MMBoe)

75.3




Less:  1Q 2021 Crude Oil Equivalent Volumes (MMBoe)

(70.1)




Subtotal

5.2




Multiplied by:  2Q 2021 Composite Average Margin per Boe (Including Total
   
Exploration Costs) (Non-GAAP) (refer to "Revenues, Costs and Margins Per Barrel
    of Oil Equivalent" schedule)

19.25




Change in Revenue

101




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

(23)




Change in Net Income

78




Change in Diluted Earnings per Share



0.13






Operating Cost per Boe




1Q 2021 Total Operating Cost per Boe (including Total Exploration Costs) (Non-
    GAAP) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
    schedule)

28.11




Less:  2Q 2021 Total Operating Cost per Boe (including Total Exploration Costs)
    (Non-GAAP) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
    schedule)

(26.82)




Subtotal

1.29




Multiplied by:  2Q 2021 Crude Oil Equivalent Volumes (MMBoe)

75.3




Change in Before-Tax Net Income

97




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

(22)




Change in Net Income

75




Change in Diluted Earnings per Share



0.13






Other Items



0.01






2Q 2021 Adjusted Net Income per Share (Non-GAAP)



1.73






2Q 2021 Average Number of Common Shares (Non-GAAP) - Diluted

584




 

Discretionary Cash Flow and Free Cash Flow

In millions of USD (Unaudited)




















The following tables reconcile 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), 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 Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures (before acquisitions) incurred (Non-GAAP) during such period, as is illustrated below.  EOG management uses this information for comparative purposes within the industry.












2Q 2021


1Q 2021


2Q 2020


YTD 2021


YTD 2020











Net Cash Provided by Operating Activities (GAAP)

1,559



1,870



88



3,429



2,673












Adjustments:










Exploration Costs (excluding Stock-Based
    Compensation Expenses)

29



28



21



57



53


Changes in Components of Working Capital and
    Other Assets and Liabilities










Accounts Receivable

186



308



(469)



494



(1,191)


Inventories

(37)



(64)



18



(101)



(85)


Accounts Payable

(11)



(172)



1,619



(183)



1,185


Accrued Taxes Payable

163



(243)



6



(80)



61


Other Assets

119



103



(195)



222



(253)


Other Liabilities

(32)



89



(2)



57



64


Changes in Components of Working Capital
    Associated with Investing Activities

54



91



(414)



145



(282)


Other Non-Current Income Taxes - Net Receivable









113


Discretionary Cash Flow (Non-GAAP)

2,030



2,010



672



4,040



2,338












Discretionary Cash Flow (Non-GAAP) - Percentage Increase

202

%






73

%













Discretionary Cash Flow (Non-GAAP)

2,030



2,010



672



4,040



2,338


Less:










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

(972)



(945)



(478)



(1,917)



(2,163)


Free Cash Flow (Non-GAAP)

1,058



1,065



194



2,123



175






















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












2Q 2021


1Q 2021


2Q 2020


YTD 2021


YTD 2020











Total Expenditures (GAAP)

1,089



1,067



534



2,156



2,360


Less:










Asset Retirement Costs

(31)



(17)



(5)



(48)



(25)


Non-Cash Expenditures of Other Property, Plant and
    Equipment










Non-Cash Acquisition Costs of Unproved Properties



(22)



(24)



(22)



(48)


Non-Cash Finance Leases



(74)



(24)



(74)



(73)


Acquisition Costs of Proved Properties

(86)



(9)



(3)



(95)



(51)


Total Cash Capital Expenditures Before Acquisitions

    (Non-GAAP)

972



945



478



1,917



2,163


 

Discretionary Cash Flow and Free Cash Flow

(Continued)

In millions of USD (Unaudited)

















FY 2020


FY 2019


FY 2018


FY 2017









Net Cash Provided by Operating Activities (GAAP)

5,008



8,163



7,769



4,265










Adjustments:








Exploration Costs (excluding Stock-Based Compensation Expenses)

126



113



125



122


Changes in Components of Working Capital and Other Assets and
    Liabilities








Accounts Receivable

(467)



92



368



392


Inventories

(123)



(90)



395



175


Accounts Payable

795



(169)



(439)



(324)


Accrued Taxes Payable

49



(40)



92



64


Other Assets

(325)



(358)



125



659


Other Liabilities

(8)



57



(11)



90


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

(75)



115



(301)



(90)


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

113



239



149



(513)


Discretionary Cash Flow (Non-GAAP)

5,093



8,122



8,272



4,840










Discretionary Cash Flow (Non-GAAP) - Percentage Increase (Decrease)

-37

%


-2

%


71

%


76

%









Discretionary Cash Flow (Non-GAAP)

5,093



8,122



8,272



4,840


Less:








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

(3,490)



(6,234)



(6,172)



(4,228)


Free Cash Flow (Non-GAAP)

1,603



1,888



2,100



612










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









Total Expenditures (GAAP)

4,113



6,900



6,706



4,613


Less:








Asset Retirement Costs

(117)



(186)



(70)



(56)


Non-Cash Expenditures of Other Property, Plant and Equipment



(2)



(1)




Non-Cash Acquisition Costs of Unproved Properties

(197)



(98)



(291)



(256)


Non-Cash Finance Leases

(174)





(48)




Acquisition Costs of Proved Properties

(135)



(380)



(124)



(73)


Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)

3,490



6,234



6,172



4,228


 

Discretionary Cash Flow and Free Cash Flow

(Continued)

In millions of USD (Unaudited)





















FY 2016


FY 2015


FY 2014


FY 2013


FY 2012











Net Cash Provided by Operating Activities (GAAP)

2,359



3,595



8,649



7,329



5,237












Adjustments:










Exploration Costs (excluding Stock-Based Compensation
    Expenses)

104



124



158



134



158


Changes in Components of Working Capital and Other
    Assets and Liabilities










Accounts Receivable

233



(641)



(85)



24



179


Inventories

(171)



(58)



162



(53)



157


Accounts Payable

74



1,409



(544)



(179)



17


Accrued Taxes Payable

(93)



(12)



(16)



(75)



(78)


Other Assets

41



(118)



14



110



119


Other Liabilities

16



66



(75)



20



(36)


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

156



(500)



103



51



(74)


Excess Tax Benefits from Stock-Based Compensation

30



26



99



56



67


Discretionary Cash Flow (Non-GAAP)

2,749



3,891



8,465



7,417



5,746












Discretionary Cash Flow (Non-GAAP) - Percentage Increase

    (Decrease)

-29

%


-54

%


14

%


29

%













Discretionary Cash Flow (Non-GAAP)

2,749



3,891



8,465



7,417



5,746


Less:










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

(2,706)



(4,682)



(8,292)



(7,102)



(7,540)


Free Cash Flow (Non-GAAP)

43



(791)



173



315



(1,794)












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











Total Expenditures (GAAP)

6,554



5,216



8,632



7,361



7,754


Less:










Asset Retirement Costs

20



(53)



(196)



(134)



(127)


Non-Cash Expenditures of Other Property, Plant and
    Equipment

(17)









(66)


Non-Cash Acquisition Costs of Unproved Properties

(3,102)





(5)



(5)



(20)


Acquisition Costs of Proved Properties

(749)



(481)



(139)



(120)



(1)


Total Cash Capital Expenditures Before Acquisitions (Non-

    GAAP)

2,706



4,682



8,292



7,102



7,540


 

Total Expenditures

In millions of USD (Unaudited)

























2Q 2021


2Q 2020


FY 2020


FY 2019


FY 2018


FY 2017













Exploration and Development Drilling

711



381



2,664



4,951



4,935



3,132


Facilities

105



31



347



629



625



575


Leasehold Acquisitions

46



30



265



276



488



427


Property Acquisitions

86



3



135



380



124



73


Capitalized Interest

7



8



31



38



24



27


Subtotal

955



453



3,442



6,274



6,196



4,234


Exploration Costs

35



27



146



140



149



145


Dry Hole Costs

13





13



28



5



5


Exploration and Development Expenditures

1,003



480



3,601



6,442



6,350



4,384


Asset Retirement Costs

31



5



117



186



70



56


Total Exploration and Development Expenditures

1,034



485



3,718



6,628



6,420



4,440


Other Property, Plant and Equipment

55



49



395



272



286



173


Total Expenditures

1,089



534



4,113



6,900



6,706



4,613


 

EBITDAX and Adjusted EBITDAX

In millions of USD (Unaudited)














The following table adjusts the reported Net Income (Loss) (GAAP) to Earnings Before Interest Expense, Net, Income Taxes (Income Tax Provision (Benefit)), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments (EBITDAX) (Non-GAAP) and further adjusts such amount to reflect actual Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts by eliminating the unrealized Mark-to-Market (MTM) (Gains) Losses from these transactions and to eliminate the (Gains) Losses on Asset Dispositions (Net).  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Net Income (Loss) (GAAP) to add back Interest Expense (Net), Income Taxes (Income Tax Provision (Benefit)), 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.









2Q 2021


2Q 2020


YTD 2021


YTD 2020








Net Income (Loss) (GAAP)

907


(910)



1,584



(900)









Adjustments:







Interest Expense, Net

45


54



92



99


Income Tax Provision (Benefit)

217


(235)



421



(214)


Depreciation, Depletion and Amortization

914


707



1,814



1,707


Exploration Costs

35


27



68



67


Dry Hole Costs

13




24




Impairments

44


305



88



1,878


EBITDAX (Non-GAAP)

2,175


(52)



4,091



2,637


(Gains) Losses on MTM Commodity Derivative Contracts

427


127



794



(1,079)


Net Cash Received from (Payments for) Settlements of Commodity

    Derivative Contracts

(193)


640



(223)



724


Gains on Asset Dispositions, Net

(51)


(14)



(45)



(30)









Adjusted EBITDAX (Non-GAAP)

2,358


701



4,617



2,252









Adjusted EBITDAX (Non-GAAP) - Percentage Increase

236

%



105

%










Definitions







EBITDAX - Earnings Before Interest Expense, Net; Income Tax Provision (Benefit); Depreciation, Depletion and Amortization; Exploration Costs; Dry Hole Costs; and Impairments

 

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.






June 30,

2021


March 31,

2021





Total Stockholders' Equity - (a)

20,881



20,762






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

5,125



5,133


Less: Cash

(3,880)



(3,388)


Net Debt (Non-GAAP) - (c)

1,245



1,745






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

26,006



25,895






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

22,126



22,507






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

19.7

%


19.8

%





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

5.6

%


7.8

%

 

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)

















December 31,

2020


September 30,

2020


June 30,

2020


March 31,

2020









Total Stockholders' Equity - (a)

20,302



20,148



20,388



21,471










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

5,816



5,721



5,724



5,222


Less: Cash

(3,329)



(3,066)



(2,417)



(2,907)


Net Debt (Non-GAAP) - (c)

2,487



2,655



3,307



2,315










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

26,118



25,869



26,112



26,693










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

22,789



22,803



23,695



23,786










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

22.3

%


22.1

%


21.9

%


19.6

%









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

10.9

%


11.6

%


14.0

%


9.7

%

























Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)









December 31,

2019


September 30,

2019


June 30,

2019


March 31,

2019









Total Stockholders' Equity - (a)

21,641



21,124



20,630



19,904










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

5,175



5,177



5,179



6,081


Less: Cash

(2,028)



(1,583)



(1,160)



(1,136)


Net Debt (Non-GAAP) - (c)

3,147



3,594



4,019



4,945










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

26,816



26,301



25,809



25,985










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

24,788



24,718



24,649



24,849










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

19.3

%


19.7

%


20.1

%


23.4

%









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

12.7

%


14.5

%


16.3

%


19.9

%

























Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)








December 31,

2018


September 30,

2018


June 30,

2018


March 31,

2018









Total Stockholders' Equity - (a)

19,364



18,538



17,452



16,841










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

6,083



6,435



6,435



6,435


Less: Cash

(1,556)



(1,274)



(1,008)



(816)


Net Debt (Non-GAAP) - (c)

4,527



5,161



5,427



5,619










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

25,447



24,973



23,887



23,276










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

23,891



23,699



22,879



22,460










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

23.9

%


25.8

%


26.9

%


27.6

%









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

18.9

%


21.8

%


23.7

%


25.0

%

























Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)








December 31,

2017


September 30,

2017


June 30,

2017


March 31,

2017









Total Stockholders' Equity - (a)

16,283



13,922



13,902



13,928










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

6,387



6,387



6,987



6,987


Less: Cash

(834)



(846)



(1,649)



(1,547)


Net Debt (Non-GAAP) - (c)

5,553



5,541



5,338



5,440










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

22,670



20,309



20,889



20,915










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

21,836



19,463



19,240



19,368










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

28.2

%


31.4

%


33.4

%


33.4

%









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

25.4

%


28.5

%


27.7

%


28.1

%

 

Net Debt-to-Total Capitalization Ratio

(Continued)

In millions of USD, except ratio data (Unaudited)










December 31,

2016


September 30,

2016


June 30,

2016


March 31,

2016


December 31,

2015











Total Stockholders' Equity - (a)

13,982



11,798



12,057



12,405



12,943












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

6,986



6,986



6,986



6,986



6,660


Less: Cash

(1,600)



(1,049)



(780)



(668)



(719)


Net Debt (Non-GAAP) - (c)

5,386



5,937



6,206



6,318



5,941












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

20,968



18,784



19,043



19,391



19,603












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

19,368



17,735



18,263



18,723



18,884












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

33.3

%


37.2

%


36.7

%


36.0

%


34.0

%











Net Debt-to-Total Capitalization (Non-GAAP) - (c) /

    [(a) + (c)]

27.8

%


33.5

%


34.0

%


33.7

%


31.5

%

 

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.
















2020


2019


2018


2017


2016


2015


2014















Total Costs Incurred in Exploration and

    Development Activities (GAAP)

3,718



6,628



6,420



4,440



6,445



4,928



7,905


Less:  Asset Retirement Costs

(117)



(186)



(70)



(56)



20



(53)



(196)


Non-Cash Acquisition Costs of
    Unproved Properties

(197)



(98)



(291)



(256)



(3,102)






Acquisition Costs of Proved
    Properties

(135)



(380)



(124)



(73)



(749)



(481)



(139)


Total Exploration and Development

    Expenditures for Drilling Only (Non-

    GAAP) - (a)

3,269



5,964



5,935



4,055



2,614



4,394



7,570
















Total Costs Incurred in Exploration and

    Development Activities (GAAP)

3,718



6,628



6,420



4,440



6,445



4,928



7,905


Less:  Asset Retirement Costs

(117)



(186)



(70)



(56)



20



(53)



(196)


Non-Cash Acquisition Costs of
    Unproved Properties

(197)



(98)



(291)



(256)



(3,102)






Non-Cash Acquisition Costs of
    Proved Properties

(15)



(52)



(71)



(26)



(732)






Total Exploration and Development

    Expenditures (Non-GAAP) - (b)

3,389



6,292



5,988



4,102



2,631



4,875



7,709
















Net Proved Reserve Additions From All

    Sources - Oil Equivalents (MMBoe)














Revisions Due to Price - (c)

(278)



(60)



35



154



(101)



(574)



52


Revisions Other Than Price

(89)





(40)



48



253



107



49


Purchases in Place

10



17



12



2



42



56



14


Extensions, Discoveries and Other

    Additions - (d)

564



750



670



421



209



246



519


Total Proved Reserve Additions - (e)

207



707



677



625



403



(165)



634


Sales in Place

(31)



(5)



(11)



(21)



(168)



(4)



(36)


Net Proved Reserve Additions From All

Sources

176



702



666



604



235



(169)



598
















Production

285



301



265



224



206



210



220

















2020


2019


2018


2017


2016


2015


2014

Reserve Replacement Costs ($ / Boe)














Total Drilling, Before Revisions - (a / d)

5.79



7.95



8.86



9.64



12.51



17.87



14.58


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

16.32



8.90



8.85



6.56



6.52



(29.63)



12.16


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

6.98



8.21



9.33



8.71



5.22



11.91



13.25


 

Definitions


$/Boe

U.S. Dollars per barrel of oil equivalent

MMBoe

Million barrels of oil equivalent

 

Financial Commodity Derivative Contracts


EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method.


Presented below is a comprehensive summary of EOG's financial commodity derivative contracts as of July 30, 2021.


Crude Oil Financial Price Swap Contracts





Contracts Sold

Period


Settlement Index


Volume

(MBbld)


Weighted Average Price

($/Bbl)

January 2021 (closed)


NYMEX WTI


151



$

50.06


February - March 2021 (closed)


NYMEX WTI


201



51.29


April - June 2021 (closed)


NYMEX WTI


150



51.68


July 2021 (closed)


NYMEX WTI


150



52.71


August - September 2021


NYMEX WTI


150



52.71


January - March 2022


NYMEX WTI


140



65.58


April - June 2022


NYMEX WTI


140



65.62


July - September 2022


NYMEX WTI


100



64.98


October - December 2022


NYMEX WTI


40



63.71




















Crude Oil Basis Swap Contracts





Contracts Sold

Period


Settlement Index


Volume

(MBbld)


Weighted Average Price

Differential

($/Bbl)

February 2021 (closed)


NYMEX WTI Roll Differential (1)


30



$

0.11


March - August 2021 (closed)


NYMEX WTI Roll Differential (1)


125



0.17


September - December 2021


NYMEX WTI Roll Differential (1)


125



0.17


January - December 2022


NYMEX WTI Roll Differential (1)


125



0.15











(1)   This settlement index is used to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month.



















NGL Financial Price Swap Contracts





Contracts Sold

Period


Settlement Index


Volume

(MBbld)


Weighted Average Price

($/Bbl)

January - July 2021 (closed)


Mont Belvieu Propane (non-Tet)


15



$

29.44


August - December 2021


Mont Belvieu Propane (non-Tet)


15



29.44


 

Natural Gas Financial Price Swap Contracts





Contracts Sold


Contracts Purchased

Period


Settlement Index


Volume

(MMBtud in

thousands)


Weighted

Average Price

($/MMBtu)


Volume

(MMBtud in

thousands)


Weighted

Average Price

($/MMBtu)

January - March 2021 (closed)


NYMEX Henry Hub


500



$

2.99



500



$

2.43


April - August 2021 (closed)


NYMEX Henry Hub


500



2.99



570



2.81


September 2021


NYMEX Henry Hub


500



2.99



570



2.81


October - December 2021


NYMEX Henry Hub


500



2.99



500



2.83


January - December 2022

    (closed) (1)


NYMEX Henry Hub


20



2.75






January - December 2022


NYMEX Henry Hub


100



2.93






January - December 2023


NYMEX Henry Hub


100



2.93






January - December 2024


NYMEX Henry Hub


100



2.93






January - December 2025


NYMEX Henry Hub


100



2.93






April - August 2021 (closed)


JKM


70



6.65






September 2021


JKM


70



6.65








(1)

In January 2021, EOG executed the early termination provision granting EOG the right to terminate all of its 2022 natural gas price swap contracts which were open at that time.  EOG received net cash of $0.6 million for the settlement of these contracts.

 

Glossary:


$/Bbl

Dollars per barrel

$/MMBtu

Dollars per million British Thermal Units

Bbl

Barrel

EOG

EOG Resources, Inc.

JKM

Japan Korea Marker

MBbld

Thousand barrels per day

MMBtu

Million British Thermal Units

MMBtud

Million British Thermal Units per day

NGL

Natural Gas Liquids

NYMEX

New York Mercantile Exchange

WTI

West Texas Intermediate

 

Direct After-Tax Rate of Return



The calculation of EOG's direct after-tax rate of return (ATROR) with respect to EOG's 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 EOG's direct net costs incurred in drilling or acquiring (as the case may be) such wells or well (as the case may be).  As such, EOG's 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 wellsite  facilities and flowback


Excludes Indirect Capital


  - Gathering and Processing and other Midstream


  - Land, Seismic, Geological and Geophysical


  - Offsite Production Facilities




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 and Powder River Basin Facilities


  - Gathering and Processing


Includes Legacy Gas Capital and Capital from Mature Wells


 

ROCE & ROE

In millions of USD, except ratio data (Unaudited)
























The following tables reconcile Interest Expense, Net (GAAP), Net Income (Loss) (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.














Trailing 12

Months

2Q 2021


2Q 2021


1Q 2021


4Q 2020


3Q 2020


2Q 2020













Interest Expense, Net (GAAP)

198



45



47



53



53




Tax Benefit Imputed (based on 21%)

(41)



(9)



(10)



(11)



(11)




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

157



36



37



42



42
















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

1,879



907



677



337



(42)




Adjustments to Net Income (Loss), Net of Tax (See

    Below Detail) (1)

742



105



269



74



294




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

2,621



1,012



946



411



252
















Total Stockholders' Equity - (d)

20,881



20,881



20,762



20,302



20,148



20,388














Average Total Stockholders' Equity * - (e)

20,635
























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

5,125



5,125



5,133



5,816



5,721



5,724


Less:  Cash

(3,880)



(3,880)



(3,388)



(3,329)



(3,066)



(2,417)


Net Debt (Non-GAAP) - (g)

1,245



1,245



1,745



2,487



2,655



3,307














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

26,006



26,006



25,895



26,118



25,869



26,112














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

22,126



22,126



22,507



22,789



22,803



23,695














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

22,911
























Return on Capital Employed (ROCE)












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

8.9

%











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

12.1

%























Return on Equity (ROE)












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

9.1

%











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

12.7

%























* Average for the beginning and ending trailing 12 month period.




































(1) Detail of adjustments to Net Income (Loss) (GAAP):


















Before

Tax


Income

Tax Impact


After

Tax

Q2 2021












Adjustments:












Add:  Mark-to-Market Commodity Derivative
    Contracts Impact







234



(51)



183


Add:  Impairments of Certain Assets







1





1


Less:  Net Gains on Asset Dispositions







(51)



17



(34)


Less: Tax Benefits Related to Exiting Canada
    Operations









(45)



(45)


Total







184



(79)



105














Q1 2021












Adjustments:












Add:  Mark-to-Market Commodity Derivative
    Contracts Impact







337



(74)



263


Add:  Impairments of Certain Assets







1





1


Add:  Net Losses on Asset Dispositions







6



(1)



5


Total







344



(75)



269














Q4 2020












Adjustments:












Add:  Mark-to-Market Commodity Derivative
    Contracts Impact







2



(1)



1


Add:  Impairments of Certain Assets







86



(18)



68


Add:  Net Losses on Asset Dispositions







6



(1)



5


Total







94



(20)



74














Q3 2020












Adjustments:












Add:  Mark-to-Market Commodity Derivative    Contracts Impact







279



(60)



219


Add:  Impairments of Certain Assets







27



(7)



20


Add:  Net Losses on Asset Dispositions







71



(16)



55


Total







377



(83)



294


 

ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)

















2020


2019


2018


2017









Interest Expense, Net (GAAP)

205



185



245




Tax Benefit Imputed (based on 21%)

(43)



(39)



(51)




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

162



146



194












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

(605)



2,735



3,419




Adjustments to Net Income (Loss), Net of Tax (See Below Detail) (1)

1,455



158



(201)




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

850



2,893



3,218












Total Stockholders' Equity - (d)

20,302



21,641



19,364



16,283










Average Total Stockholders' Equity * - (e)

20,972



20,503



17,824












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

5,816



5,175



6,083



6,387


Less:  Cash

(3,329)



(2,028)



(1,556)



(834)


Net Debt (Non-GAAP) - (g)

2,487



3,147



4,527



5,553










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

26,118



26,816



25,447



22,670










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

22,789



24,788



23,891



21,836










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

23,789



24,340



22,864












Return on Capital Employed (ROCE)








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

(1.9)

%


11.8

%


15.8

%



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

4.3

%


12.5

%


14.9

%











Return on Equity (ROE)








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

(2.9)

%


13.3

%


19.2

%



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

4.1

%


14.1

%


18.1

%











* Average for the current and immediately preceding year
















(1) Detail of adjustments to Net Income (Loss) (GAAP):











Before

Tax


Income Tax

Impact


After

Tax

Year Ended December 31, 2020








Adjustments:








Add:  Mark-to-Market Commodity Derivative Contracts Impact



(74)



16



(58)


Add:  Impairments of Certain Assets



1,868



(392)



1,476


Add:  Net Losses on Asset Dispositions



47



(10)



37


Total



1,841



(386)



1,455










Year Ended December 31, 2019








Adjustments:








Add:  Mark-to-Market Commodity Derivative Contracts Impact



51



(11)



40


Add:  Impairments of Certain Assets



275



(60)



215


Less:  Net Gains on Asset Dispositions



(124)



27



(97)


Total



202



(44)



158










Year Ended December 31, 2018








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)


 

ROCE & ROE

In millions of USD, except ratio data (Unaudited)




















The following tables reconcile Interest Expense, Net (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) 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, 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











Interest Expense, Net (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












Return on Capital Employed (ROCE)










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

13.4

%


-4.8

%


-21.6

%


14.7

%


12.1

%











Return on Equity (ROE)










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

17.1

%


-8.1

%


-29.5

%


17.6

%


15.3

%











* Average for the current and immediately preceding year






























ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)












2012


2011


2010


2009


2008











Interest Expense, Net (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 (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












Return on Capital Employed (ROCE)










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

4.0

%


7.7

%


1.8

%


5.4

%


26.4

%











Return on Equity (ROE)










GAAP Net Income - (b) / (e)

4.4

%


9.5

%


1.6

%


5.8

%


30.5

%











* Average for the current and immediately preceding year






























ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)





















2007


2006


2005


2004


2003











Interest Expense, Net (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 (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












Return on Capital Employed (ROCE)










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

15.7

%


24.7

%


30.0

%


18.2

%


15.3

%











Return on Equity (ROE)










GAAP Net Income - (b) / (e)

17.3

%


26.2

%


34.7

%


24.2

%


22.1

%











* Average for the current and immediately preceding year






























ROCE & ROE

(Continued)

In millions of USD, except ratio data (Unaudited)












2002


2001


2000


1999


1998











Interest Expense, Net (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 (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














Return on Capital Employed (ROCE)










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

4.8

%


18.2

%


20.2

%


27.0

%













Return on Equity (ROE)










GAAP Net Income - (b) / (e)

5.2

%


26.4

%


31.6

%


47.2

%













* Average for the current and immediately preceding year










 

Revenues, Costs and Margins Per Barrel of Oil Equivalent

In millions of USD, except Boe and per Boe amounts (Unaudited)











EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who review certain components and/or groups of components of revenues, costs and/or margin per barrel of oil equivalent (Boe). Certain of these components are adjusted for non-recurring and certain other items, as further discussed below.


EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.












2Q 2021


1Q 2021


4Q 2020


3Q 2020


2Q 2020











Volume - Million Barrels of Oil Equivalent - (a)

75.3



70.1



73.7



65.9



56.7












Total Operating Revenues and Other (b)

4,139



3,694



2,965



2,246



1,103


Total Operating Expenses (c)

2,968



2,762



2,477



2,249



2,190


Operating Income (Loss) (d)

1,171



932



488



(3)



(1,087)












Wellhead Revenues










Crude Oil and Condensate

2,699



2,251



1,711



1,395



615


Natural Gas Liquids

367



314



229



185



93


Natural Gas

404



625



302



184



141


Total Wellhead Revenues - (e)

3,470



3,190



2,242



1,764



849












Operating Costs










Lease and Well

270



270



261



227



245


Transportation Costs

214



202



195



180



152


Gathering and Processing Costs

128



139



119



115



97


General and Administrative

120



110



113



125



132


Taxes Other Than Income

239



215



114



126



81


Interest Expense, Net

45



47



53



53



54


Total Operating Cost (excluding DD&A and Total Exploration

    Costs) (f)

1,016



983



855



826



761












Depreciation, Depletion and Amortization (DD&A)

914



900



870



823



707












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

1,930



1,883



1,725



1,649



1,468












Exploration Costs

35



33



41



38



27


Dry Hole Costs

13



11





13




Impairments

44



44



143



79



305


Total Exploration Costs (GAAP)

92



88



184



130



332


Less:  Certain Impairments (1)

(1)



(1)



(86)



(27)



(239)


Total Exploration Costs (Non-GAAP)

91



87



98



103



93












Total Operating Cost (including Total Exploration Costs

    (GAAP)) - (h)

2,022



1,971



1,909



1,779



1,800


Total Operating Cost (including Total Exploration Costs

    (Non-GAAP)) - (i)

2,021



1,970



1,823



1,752



1,561












Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (GAAP))

1,448



1,219



333



(15)



(951)


Total Wellhead Revenues less Total Operating Cost

     (including Total Exploration Costs (Non-GAAP))

1,449



1,220



419



12



(712)
































Revenues, Costs and Margins Per Barrel of Oil Equivalent (Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)





















2Q 2021


1Q 2021


4Q 2020


3Q 2020


2Q 2020











Per Barrel of Oil Equivalent (Boe) Calculations (GAAP)




















Composite Average Operating Revenues and Other per Boe

    - (b) / (a)

54.97



52.70



40.23



34.08



19.45


Composite Average Operating Expenses per Boe - (c) / (a)

39.42



39.40



33.61



34.13



38.62


Composite Average Operating Income (Loss) per Boe

    - (d) / (a)

15.55



13.30



6.62



(0.05)



(19.17)












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

46.07



45.49



30.39



26.77



14.99












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

13.48



14.02



11.60



12.56



13.40












Composite Average Margin per Boe (excluding DD&A and

    Total Exploration Costs) - [(e) / (a) - (f) / (a)]

32.59



31.47



18.79



14.21



1.59












Total Operating Cost per Boe (excluding Total Exploration

     Costs) - (g) / (a)

25.61



26.86



23.41



25.05



25.86












Composite Average Margin per Boe (excluding Total

    Exploration Costs) - [(e) / (a) - (g) / (a)]

20.46



18.63



6.98



1.72



(10.87)












Total Operating Cost per Boe (including Total Exploration

    Costs) - (h) / (a)

26.85



28.12



25.90



27.00



31.75












Composite Average Margin per Boe (including Total

    Exploration Costs) - [(e) / (a) - (h) / (a)]

19.22



17.37



4.49



(0.23)



(16.76)












Per Barrel of Oil Equivalent (Boe) Calculations (Non-GAAP)




















Total Operating Cost per Boe (including Total Exploration

     Costs) - (i) / (a)

26.82



28.11



24.72



26.62



27.51












Composite Average Margin per Boe (including Total

     Exploration Costs) - [(e) / (a) - (i) / (a)]

19.25



17.38



5.67



0.15



(12.52)




(1)

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 exploration 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).

 

Revenues, Costs and Margins Per Barrel of Oil Equivalent   (Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)










2020


2019


2018


2017









Volume - Million Barrels of Oil Equivalent - (a)

275.9



298.6



262.5



222.3










Total Operating Revenues and Other (b)

11,032



17,380



17,275



11,208


Total Operating Expenses (c)

11,576



13,681



12,806



10,282


Operating Income (Loss) (d)

(544)



3,699



4,469



926










Wellhead Revenues








Crude Oil and Condensate

5,786



9,613



9,517



6,256


Natural Gas Liquids

668



785



1,128



730


Natural Gas

837



1,184



1,302



922


Total Wellhead Revenues - (e)

7,291



11,582



11,947



7,908










Operating Costs








Lease and Well

1,063



1,367



1,283



1,045


Transportation Costs

735



758



747



740


Gathering and Processing Costs

459



479



437



149


General and Administrative (GAAP)

484



489



427



434


Less:  Legal Settlement - Early Leasehold Termination







(10)


Less:  Joint Venture Transaction Costs







(3)


Less:  Joint Interest Billings Deemed Uncollectible







(5)


General and Administrative (Non-GAAP) (1)

484



489



427



416


Taxes Other Than Income

478



800



772



545


Interest Expense, Net

205



185



245



274


Total Operating Cost (GAAP) (excluding DD&A and Total Exploration Costs) - (f)

3,424



4,078



3,911



3,187


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

3,424



4,078



3,911



3,169










Depreciation, Depletion and Amortization (DD&A)

3,400



3,750



3,435



3,409










Total Operating Cost (GAAP) (excluding Total Exploration Costs) - (h)

6,824



7,828



7,346



6,596


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

6,824



7,828



7,346



6,578










Exploration Costs

146



140



149



145


Dry Hole Costs

13



28



5



5


Impairments

2,100



518



347



479


Total Exploration Costs (GAAP)

2,259



686



501



629


Less:  Certain Impairments (2)

(1,868)



(275)



(153)



(261)


Total Exploration Costs (Non-GAAP)

391



411



348



368










Total Operating Cost (GAAP) (including Total Exploration Costs (GAAP)) - (j)

9,083



8,514



7,847



7,225


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

7,215



8,239



7,694



6,946










Total Wellhead Revenues less Total Operating Cost (GAAP) (including Total

    Exploration Costs (GAAP))

(1,792)



3,068



4,100



683


Total Wellhead Revenues less Total Operating Cost (Non-GAAP) (including Total   

    Exploration Costs (Non-GAAP))

76



3,343



4,253



962


















Revenues, Costs and Margins Per Barrel of Oil Equivalent   (Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)









2020


2019


2018


2017









Per Barrel of Oil Equivalent (Boe) Calculations (GAAP)
















Composite Average Operating Revenues and Other per Boe - (b) / (a)

39.99



58.20



65.81



50.42


Composite Average Operating Expenses per Boe - (c) / (a)

41.96



45.81



48.79



46.25


Composite Average Operating Income (Loss) per Boe - (d) / (a)

(1.97)



12.39



17.02



4.17










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

26.42



38.79



45.51



35.58










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

12.39



13.66



14.90



14.34










Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) /

    (a) - (f) / (a)]

14.03



25.13



30.61



21.24










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

24.71



26.22



27.99



29.67










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

1.71



12.57



17.52



5.91










Total Operating Cost per Boe (including Total Exploration Costs) - (j) / (a)

32.92



28.51



29.89



32.50










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

(6.50)



10.28



15.62



3.08










Per Barrel of Oil Equivalent (Boe) Calculations (Non-GAAP)
















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

12.39



13.66



14.90



14.25










Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) /

    (a) - (g) / (a)]

14.03



25.13



30.61



21.33










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

24.71



26.22



27.99



29.59










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

1.71



12.57



17.52



5.99










Total Operating Cost per Boe (including Total Exploration Costs) - (k) / (a)

26.13



27.60



29.32



31.24










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

0.29



11.19



16.19



4.34




(1)

EOG believes excluding the above-referenced items from general and administrative expense is appropriate and provides useful information to investors, as EOG views such items as non-recurring.  

(2)

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 exploration 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).

 

Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)










2016


2015


2014








Volume - Million Barrels of Oil Equivalent - (a)


205.0



208.9



217.1









Total Operating Revenues and Other (b)


7,651



8,757



18,035


Total Operating Expenses (c)


8,876



15,443



12,793


Operating Income (Loss) (d)


(1,225)



(6,686)



5,242









Wellhead Revenues







Crude Oil and Condensate


4,317



4,935



9,742


Natural Gas Liquids


437



408



934


Natural Gas


742



1,061



1,916


Total Wellhead Revenues - (e)


5,496



6,404



12,592









Operating Costs







Lease and Well


927



1,182



1,416


Transportation Costs


764



849



972


Gathering and Processing Costs


123



146



146


General and Administrative (GAAP)


395



367



402


Less:  Voluntary Retirement Expense


(42)






Less: Acquisition Costs


(5)






Less:  Legal Settlement - Early Leasehold Termination




(19)




General and Administrative (Non-GAAP) (1)


348



348



402


Taxes Other Than Income


350



422



758


Interest Expense, Net


282



237



201


Total Operating Cost (GAAP) (excluding DD&A and Total Exploration Costs) - (f)


2,841



3,203



3,895


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


2,794



3,184



3,895









Depreciation, Depletion and Amortization (DD&A)


3,553



3,314



3,997









Total Operating Cost (GAAP) (excluding Total Exploration Costs) - (h)


6,394



6,517



7,892


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


6,347



6,498



7,892









Exploration Costs


125



149



184


Dry Hole Costs


11



15



48


Impairments


620



6,614



744


Total Exploration Costs (GAAP)


756



6,778



976


Less:  Certain Impairments (2)


(321)



(6,308)



(824)


Total Exploration Costs (Non-GAAP)


435



470



152









Total Operating Cost (GAAP) (including Total Exploration Costs (GAAP)) - (j)


7,150



13,295



8,868


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


6,782



6,968



8,044









Total Wellhead Revenues less Total Operating Cost (GAAP) (including Total

    Exploration Costs (GAAP))


(1,654)



(6,891)



3,724


Total Wellhead Revenues less Total Operating Cost (Non-GAAP) (including Total   

    Exploration Costs (Non-GAAP))


(1,286)



(564)



4,548
















Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)









2016


2015


2014








Per Barrel of Oil Equivalent (Boe) Calculations (GAAP)














Composite Average Operating Revenues and Other per Boe - (b) / (a)


37.32



41.92



83.07


Composite Average Operating Expenses per Boe - (c) / (a)


43.30



73.93



58.92


Composite Average Operating Income (Loss) per Boe - (d) / (a)


(5.98)



(32.01)



24.15









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


26.82



30.66



58.01









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


13.86



15.33



17.95









Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) /

    (a) - (f) / (a)]


12.96



15.33



40.06









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


31.19



31.20



36.38









Composite Average Margin per Boe (excluding Total Exploration Costs) - [(e) / (a) - (h) /

    (a)]


(4.37)



(0.54)



21.63









Total Operating Cost per Boe (including Total Exploration Costs) - (j) / (a)


34.88



63.64



40.85









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


(8.06)



(32.98)



17.16









Per Barrel of Oil Equivalent (Boe) Calculations (Non-GAAP)














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


13.64



15.25



17.95









Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) /

    (a) - (g) / (a)]


13.18



15.41



40.06









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


30.98



31.11



36.38









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


(4.16)



(0.45)



21.63









Total Operating Cost per Boe (including Total Exploration Costs) - (k) / (a)


33.10



33.36



37.08









Composite Average Margin per Boe (including Total Exploration Costs) - [(e) / (a) - (k) /

    (a)]


(6.28)



(2.70)



20.93




(1)

EOG believes excluding the above-referenced items from general and administrative expense is appropriate and provides useful information to investors, as EOG views such items as non-recurring.  

(2)

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 exploration 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).

 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/eog-resources-reports-second-quarter-2021-results-301348730.html

SOURCE EOG Resources, Inc.