UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 6, 2015

_______________

EOG RESOURCES, INC.
(Exact name of registrant as specified in its charter)


Delaware
(State or other jurisdiction
 of incorporation)
1-9743
(Commission File
 Number)
47-0684736
(I.R.S. Employer
Identification No.)

1111 Bagby, Sky Lobby 2
Houston, Texas  77002
(Address of principal executive offices) (Zip Code)

713-651-7000
(Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))











 
 
 
 
 





EOG RESOURCES, INC.

Item 2.02     Results of Operations and Financial Condition.

On August 6, 2015, EOG Resources, Inc. issued a press release announcing second quarter 2015 financial and operational results and third quarter and full year 2015 forecast and benchmark commodity pricing information (see Item 7.01 below).  A copy of this release is attached as Exhibit 99.1 to this filing and is incorporated herein by reference.  This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

Item 7.01     Regulation FD Disclosure.

Accompanying the press release announcing second quarter 2015 financial and operational results attached hereto as Exhibit 99.1 is third quarter and full year 2015 forecast and benchmark commodity pricing information for EOG Resources, Inc., which information is incorporated herein by reference.  This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

Item 9.01     Financial Statements and Exhibits.

(d)            Exhibits

99.1            Press Release of EOG Resources, Inc. dated August 6, 2015 (including the accompanying third quarter and full year 2015 forecast and benchmark commodity pricing information).


2



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
EOG RESOURCES, INC.
(Registrant)
 
 
 
 
 
 
 
 
 
Date: August 6, 2015
By:
/s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President and Chief Financial Officer
(Principal Financial Officer and Duly Authorized Officer)

3



EXHIBIT INDEX




Exhibit No.
Description
 
 
99.1
Press Release of EOG Resources, Inc. dated August 6, 2015 (including the accompanying third quarter and full year 2015 forecast and benchmark commodity pricing information).


4


EXHIBIT 99.1


EOG Resources, Inc.
 
News Release
 
For Further Information Contact:
Investors
 
Cedric W. Burgher
 
(713) 571-4658
 
David J. Streit
 
(713) 571-4902
 
Kimberly M. Ehmer
 
(713) 571-4676
 
 
 
Media
 
K Leonard
 
(713) 571-3870

EOG Resources Reports Second Quarter 2015 Results; Increases Potential Bakken Reserves to 1.0 BnBoe
Increases Returns in All Key Plays with Improved Well Productivity, Lower Costs
Maintains 2015 Total Company Oil Production Guidance; Reduces 2015 Capital Spending Guidance by $200 million
Announces New Williston Basin Resource Potential
Increases Bakken and Three Forks Net Reserve Potential by 600 MMBoe to 1.0 BnBoe
Increases Drilling Inventory to 1,540 Net Wells
Completes Record Bakken Well with Latest Advanced Completions Technology
Exceeds Second Quarter Production Forecast and Reduces Per Unit Lease Operating Costs by 17% Versus First Quarter


FOR IMMEDIATE RELEASE: Thursday, August 6, 2015

HOUSTON - EOG Resources, Inc. (EOG) today reported second quarter 2015 net income of $5.3 million, or $0.01 per share. This compares to second quarter 2014 net income of $706.4 million, or $1.29 per share.
Adjusted non-GAAP net income for the second quarter 2015 was $153.1 million, or $0.28 per share, compared to the same prior year period adjusted non-GAAP net income of $796.0 million, or $1.45 per share. Adjusted non-GAAP net income is calculated by matching realizations to settlement months and making certain other adjustments in order to exclude one-time items. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP.)
Higher cash settlements from commodity derivative contracts and lower operating expenses were offset by lower commodity price realizations, resulting in decreases in adjusted non-GAAP net income, discretionary cash flow and EBITDAX during the second quarter 2015 compared to the second quarter



2014. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.)

Operational Highlights
In the second quarter 2015, total crude oil and condensate production increased by one percent compared to the second quarter 2014, excluding production related to EOG’s Canadian operations which were divested in December 2014. On the same basis, overall total company production decreased three percent compared to the same prior year period. Total capital expenditures decreased 40 percent compared to the prior year.
In the second quarter 2015, EOG continued to improve well productivity and reduce completed well costs and operating costs. The integration of the latest high-density completion designs in combination with improved wellbore placement resulted in increased well productivity. EOG achieved significant well and operating cost reductions through operational efficiencies and service cost reductions. The combination of increased well productivity and lower costs is enabling the company to make higher returns at lower oil prices.
“EOG’s return-driven culture is responding extremely well to low oil prices, and we are excited about the company’s continued improvement,” said William R. “Bill” Thomas, Chairman and Chief Executive Officer. “The company is generating good returns in all our key assets with $50 oil. Our goal is to continue our progress and remain the industry leader in capital returns.”

2015 Capital Plan Update
As a result of productivity improvements and cost reductions, EOG is maintaining full year 2015 oil production guidance and reducing full year 2015 capital spending guidance by $200 million, excluding acquisitions. The company is choosing to refrain from growing oil production into an over-supplied market. EOG’s focus in 2015 is on capital efficiency to improve returns and quickly transition the company to be successful in a lower commodity price environment.

North Dakota Bakken
EOG increased its net resource potential in the Bakken and Three Forks plays in the second quarter 2015 from approximately 400 million barrels of oil equivalent (MMBoe) to 1.0 billion barrels of oil equivalent (BnBoe) and grew total net drillable locations from 580 to 1,540. Successful down-spacing and advances in completion technology have generated excellent well results and led to the expanded resource potential. As a result, EOG has decades of high-return drilling potential ready to be developed.



“Our team’s outstanding technical and operational advances have enabled us to more than double prior estimates for our position in the Bakken and Three Forks,” said Thomas. “EOG’s Bakken and Three Forks assets along with the company’s Eagle Ford and Delaware Basin positions continue to grow in both size and quality. With these premier assets, EOG is uniquely positioned for high-return growth in a low oil price environment.”
In the second quarter 2015, the company continued to make well productivity gains. EOG completed an industry record Bakken well using enhanced high-density completion techniques. The Riverview 102-32H came on line producing 3,395 barrels of oil per day (Bopd) and 6.0 million cubic feet per day (MMcfd) of rich natural gas.

South Texas Eagle Ford
EOG continued to realize strong rates of return and capital efficiencies in the Eagle Ford, EOG’s largest play. High-density completions, enhanced wellbore targeting and lower completed well costs are dramatically improving EOG’s results across the entire Eagle Ford oil window.
During the second quarter 2015 in the eastern Eagle Ford in Gonzales County, the Otto Unit 3H and 9H, a two-well pattern, had average initial production rates per well of 4,405 Bopd, 515 barrels per day (Bpd) of NGLs and 3.4 MMcfd of natural gas. Also in Gonzales County, the Lefevre Unit 17H - 19H (three-well pattern) had average initial production rates per well of 4,150 Bopd, 405 Bpd of NGLs and 2.7 MMcfd of natural gas.
In McMullen County in the western Eagle Ford, EOG completed the Naylor Jones Unit 11 1H and 2H two-well pattern, which had average initial production rates per well of 3,150 Bopd, 170 Bpd of NGLs and 1.1 MMcfd of natural gas.

Delaware Basin
In the Delaware Basin, EOG continued to actively test and develop its positions in the Leonard, the Second Bone Spring Sand and the upper Wolfcamp, as well as significantly reduce completed well costs and operating costs.
In the Leonard, EOG completed the Gem 36 State Com #1H in Lea County, N.M., which had initial production rates of 2,200 Bopd, 460 Bpd of NGLs and 2.6 MMcfd of natural gas.
In the Second Bone Spring Sand, EOG completed several wells with excellent results. In Lea County, N.M., EOG completed the Dragon 36 State #501H and #502H in a two-well pattern, which had average initial production rates per well of 1,415 Bopd, 115 Bpd of NGLs and 0.9 MMcfd of natural gas. Also in Lea County, N.M., EOG completed the Frazier 34 State Com #501H with an initial flow rate of 1,705 Bopd, 145 Bpd of NGLs and 1.1 MMcfd of natural gas.



In the Wolfcamp in Lea County, N.M., EOG completed the Hearns 27 State Com #703H, which had an initial production rate of 2,830 Bopd, 170 Bpd of NGLs and 1.1 MMcfd of natural gas.

Hedging Activity
For the period August 1 through December 31, 2015, EOG has crude oil financial price swap contracts in place for 10,000 Bopd at a weighted average price of $89.98 per barrel.
For the period September 1 through December 31, 2015, EOG has natural gas financial price swap contracts in place for 175,000 million British thermal units per day at a weighted average price of $4.51 per million British thermal units, excluding unexercised options. (For a comprehensive summary of crude oil and natural gas derivative contracts, please refer to the attached tables.)

Capital Structure
At June 30, 2015, EOG’s total debt outstanding was $6.4 billion for a debt-to-total capitalization ratio of 27 percent. Taking into account cash on the balance sheet of $1.4 billion at June 30, EOG’s net debt was $5.0 billion for a net debt-to-total capitalization ratio of 22 percent. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP.)

Conference Call August 7, 2015
EOG’s second quarter 2015 results conference call will be available via live audio webcast at 9 a.m. Central time (10 a.m. Eastern time) on Friday, August 7, 2015. To listen, log on to www.eogresources.com. The webcast will be archived on EOG’s website through August 21, 2015.

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs, 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," "goal," "may," "will," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, generate income or cash flows or pay 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. 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, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and optimize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects;
the extent to which EOG is successful in its efforts to market its crude oil, natural gas and related commodity production;
the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, transportation and refining facilities;
the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses and leases;
the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations; environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural



gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties;
the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
competition in the oil and gas exploration and production industry for 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 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 and transportation facilities;
the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
the extent 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;
political conditions and developments around the world (such as political instability and armed conflict), including in the areas in which EOG operates;
the use of competing energy sources and the development of alternative energy sources;
the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
acts of war and terrorism and responses to these acts;
physical, electronic and cyber security breaches; and
the other factors described under ITEM 1A, Risk Factors, on pages 13 through 20 of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, 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 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 estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves and/or other estimated reserves 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, 2014, available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov. In addition, reconciliation and calculation schedules for non-GAAP financial measures can be found on the EOG website at www.eogresources.com.
 
###





EOG RESOURCES, INC.
Financial Report
(Unaudited; in millions, except per share data)
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Revenues
$
2,469.7

 
$
4,187.6

 
$
4,788.2

 
$
8,271.2

Net Income (Loss)
$
5.3

 
$
706.4

 
$
(164.5
)
 
$
1,367.3

Net Income (Loss) Per Share
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.01

 
$
1.30

 
$
(0.30
)
 
$
2.52

Diluted
$
0.01

 
$
1.29

 
$
(0.30
)
 
$
2.49

Average Number of Common Shares
 
 
 
 
 
 
 
 
 
 
 
Basic
   
545.5

 
 
543.1

 
 
545.2

 
 
542.7

Diluted
 
549.7

 
 
548.7

 
 
545.2

 
 
548.0

 
 
 
 
 
 
 
 
 
 
 
 
Summary Income Statements
(Unaudited; in thousands, except per share data)
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Net Operating Revenues
 
 
 
 
 
 
 
Crude Oil and Condensate
$
1,452,756

 
 $
2,618,975

 
$
2,713,000

 
$
5,016,077

Natural Gas Liquids
 
103,930

 
 
247,973

 
 
215,920

 
 
494,208

Natural Gas
 
274,038

 
 
509,091

 
 
561,820

 
 
1,065,784

Gains (Losses) on Mark-to-Market Commodity Derivative Contracts
 
(48,493
)
 
 
(229,270
)
 
 
27,715

 
 
(385,006
)
Gathering, Processing and Marketing
 
678,356

 
 
1,027,795

 
 
1,248,626

 
 
2,043,206

Gains (Losses) on Asset Dispositions, Net
 
(5,564
)
 
 
3,856

 
 
(3,957
)
 
 
15,354

Other, Net
 
14,678

 
 
9,136

 
 
25,115

 
 
21,604

Total
 
2,469,701

 
 
4,187,556

 
 
4,788,239

 
 
8,271,227

Operating Expenses
 
 
 
 
 
 
 
 
 
 
 
Lease and Well
 
289,664

 
 
346,458

 
 
651,145

 
 
667,292

Transportation Costs
 
209,833

 
 
240,579

 
 
438,145

 
 
483,816

Gathering and Processing Costs
 
34,997

 
 
32,470

 
 
71,006

 
 
66,394

Exploration Costs
 
43,755

 
 
42,208

 
 
83,204

 
 
90,266

Dry Hole Costs
 
(551
)
 
 
5,558

 
 
14,119

 
 
13,906

Impairments
 
68,519

 
 
39,035

 
 
137,955

 
 
152,396

Marketing Costs
 
670,169

 
 
1,043,515

 
 
1,308,831

 
 
2,049,819

Depreciation, Depletion and Amortization
 
909,227

 
 
996,602

 
 
1,822,015

 
 
1,943,093

General and Administrative
 
82,324

 
 
90,932

 
 
166,621

 
 
173,794

Taxes Other Than Income
 
122,138

 
 
205,469

 
 
228,567

 
 
401,442

Total
 
2,430,075

 
 
3,042,826

 
 
4,921,608

 
 
6,042,218

 
Operating Income (Loss)
 
39,626

 
 
1,144,730

 
 
(133,369
)
 
 
2,229,009

 
Other Income (Expense), Net
 
9,380

 
 
7,950

 
 
(611
)
 
 
4,612

 
Income (Loss) Before Interest Expense and Income Taxes
 
49,006

 
 
1,152,680

 
 
(133,980
)
 
 
2,233,621

 
Interest Expense, Net
 
60,484

 
 
51,867

 
 
113,829

 
 
102,019

 
Income (Loss) Before Income Taxes
 
(11,478
)
 
 
1,100,813

 
 
(247,809
)
 
 
2,131,602

 
Income Tax Provision (Benefit)
 
(16,746
)
 
 
394,460

 
 
(83,329
)
 
 
764,321

 
Net Income (Loss)
$
5,268

 
 $
706,353

 
$
(164,480
)
 
$
1,367,281

 
Dividends Declared per Common Share
$
0.1675

 
$
0.1250

 
$
0.3350

 
$
0.2500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





EOG RESOURCES, INC.
Operating Highlights
(Unaudited)
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Wellhead Volumes and Prices
 
 
 
Crude Oil and Condensate Volumes (MBbld) (A)
 
 
 
United States
 
276.5

 
 
274.6

 
 
287.5

 
 
266.4

Trinidad
 
0.7

 
 
1.0

 
 
0.9

 
 
1.0

Other International (B)
 
0.3

 
 
5.7

 
 
0.2

 
 
6.5

Total
 
277.5

 
 
281.3

 
 
288.6

 
 
273.9

 
Average Crude Oil and Condensate Prices ($/Bbl) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
57.47

 
$
102.66

 
$
51.91

 
$
101.66

Trinidad
 
49.53

 
 
94.25

 
 
44.03

 
 
92.09

Other International (B)
 
62.40

 
 
94.61

 
 
56.67

 
 
92.01

Composite
 
57.45

 
 
102.47

 
 
51.89

 
 
101.40

 
Natural Gas Liquids Volumes (MBbld) (A)
 
 
 
 
 
 
 
 
 
 
 
United States
 
73.4

 
 
78.5

 
 
75.4

 
 
74.7

Other International (B)
 
0.1

 
 
0.7

 
 
0.1

 
 
0.7

Total
 
73.5

 
 
79.2

 
 
75.5

 
 
75.4

 
Average Natural Gas Liquids Prices ($/Bbl) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
15.55

 
$
34.35

 
$
15.83

 
$
36.12

Other International (B)
 
7.81

 
 
40.90

 
 
5.80

 
 
44.15

Composite
 
15.54

 
 
34.41

 
 
15.82

 
 
36.20

 
Natural Gas Volumes (MMcfd) (A)
 
 
 
 
 
 
 
 
 
 
 
United States
 
891

 
 
925

 
 
898

 
 
910

Trinidad
 
334

 
 
380

 
 
336

 
 
384

Other International (B)
 
32

 
 
78

 
 
31

 
 
74

Total
 
1,257

 
 
1,383

 
 
1,265

 
 
1,368

 
Average Natural Gas Prices ($/Mcf) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
2.11

 
$
4.14

 
$
2.19

 
$
4.54

Trinidad
 
3.05

 
 
3.69

 
 
3.07

 
 
3.66

Other International (B)
 
3.49

 
 
4.68

 
 
3.39

 
 
4.75

Composite
 
2.40

 
 
4.04

 
 
2.45

 
 
4.31

 
Crude Oil Equivalent Volumes (MBoed) (D)
 
 
 
 
 
 
 
 
 
 
 
United States
 
498.3

 
 
507.2

 
 
512.6

 
 
492.7

Trinidad
 
56.5

 
 
64.5

 
 
56.8

 
 
65.0

Other International (B)
 
5.7

 
 
19.3

 
 
5.5

 
 
19.6

Total
 
560.5

 
 
591.0

 
 
574.9

 
 
577.3

 
Total MMBoe (D)
 
51.0

 
 
53.8

 
 
104.1

 
 
104.5


(A)
Thousand barrels per day or million cubic feet per day, as applicable.
(B)
Other International includes EOG's Canada, United Kingdom, China and Argentina operations.
(C)
Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments.
(D)
Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, natural gas liquids and natural gas. Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or natural gas liquids to 6.0 thousand cubic feet of natural gas. MMBoe is calculated by multiplying the MBoed amount by the number of days in the period and then dividing that amount by one thousand.





EOG RESOURCES, INC.
Summary Balance Sheets
(Unaudited; in thousands, except share data)
 
 
June 30,
 
December 31,
 
2015
 
2014
ASSETS
Current Assets
 
 
 
 
 
Cash and Cash Equivalents
$
1,367,395

 
$
2,087,213

Accounts Receivable, Net
 
1,304,848

 
 
1,779,311

Inventories
 
661,162

 
 
706,597

Assets from Price Risk Management Activities
 
106,821

 
 
465,128

Income Taxes Receivable
 
48,448

 
 
71,621

Deferred Income Taxes
 
39,613

 
 
19,618

Other
 
209,431

 
 
286,533

Total
 
3,737,718

 
 
5,416,021

 
Property, Plant and Equipment
 
 
 
 
 
Oil and Gas Properties (Successful Efforts Method)
 
48,936,092

 
 
46,503,532

Other Property, Plant and Equipment
 
3,840,210

 
 
3,750,958

Total Property, Plant and Equipment
 
52,776,302

 
 
50,254,490

Less: Accumulated Depreciation, Depletion and Amortization
 
(22,801,124
)
 
 
(21,081,846
)
Total Property, Plant and Equipment, Net
 
29,975,178

 
 
29,172,644

Other Assets
 
171,200

 
 
174,022

Total Assets
$
33,884,096

 
$
34,762,687

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 
 
 
 
 
Accounts Payable
$
1,864,483

 
$
2,860,548

Accrued Taxes Payable
 
164,366

 
 
140,098

Dividends Payable
 
91,500

 
 
91,594

Deferred Income Taxes
 

 
 
110,743

Current Portion of Long-Term Debt
 
6,579

 
 
6,579

Other
 
150,653

 
 
174,746

Total
 
2,277,581

 
 
3,384,308

 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt
 
6,393,885

 
 
5,903,354

Other Liabilities
 
986,758

 
 
939,497

Deferred Income Taxes
 
6,798,629

 
 
6,822,946

Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity
 
 
 
 
 
Common Stock, $0.01 Par, 640,000,000 Shares Authorized and 549,401,647 Shares Issued at June 30, 2015 and 549,028,374 Shares Issued at December 31, 2014
 
205,496

 
 
205,492

Additional Paid in Capital
 
2,857,588

 
 
2,837,150

Accumulated Other Comprehensive Loss
 
(28,003
)
 
 
(23,056
)
Retained Earnings
 
14,414,926

 
 
14,763,098

Common Stock Held in Treasury, 256,101 Shares at June 30, 2015 and 733,517 Shares at December 31, 2014
 
(22,764
)
 
 
(70,102
)
Total Stockholders' Equity
 
17,427,243

 
 
17,712,582

Total Liabilities and Stockholders' Equity
$
33,884,096

 
$
34,762,687

 
 
 
 
 
 
 
 
 
 
 
 







EOG RESOURCES, INC.
Summary Statements of Cash Flows
(Unaudited; in thousands)
 
Six Months Ended
 
June 30,
 
2015
 
2014
Cash Flows from Operating Activities
 
 
 
 
 
Reconciliation of Net Income (Loss) to Net Cash Provided by Operating Activities:
 
 
 
 
 
Net Income (Loss)
$
(164,480
)
 
$
1,367,281

Items Not Requiring (Providing) Cash
 
 
 
 
 
Depreciation, Depletion and Amortization
 
1,822,015

 
 
1,943,093

Impairments
 
137,955

 
 
152,396

Stock-Based Compensation Expenses
 
61,650

 
 
65,144

Deferred Income Taxes
 
(154,803
)
 
 
479,109

(Gains) Losses on Asset Dispositions, Net
 
3,957

 
 
(15,354
)
Other, Net
 
6,787

 
 
984

Dry Hole Costs
 
14,119

 
 
13,906

Mark-to-Market Commodity Derivative Contracts
 
 
 
 
 
Total (Gains) Losses
 
(27,715
)
 
 
385,006

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
 
561,142

 
 
(120,900
)
Excess Tax Benefits from Stock-Based Compensation
 
(16,393
)
 
 
(63,759
)
Other, Net
 
6,346

 
 
7,223

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
Accounts Receivable
 
298,183

 
 
(249,336
)
Inventories
 
37,609

 
 
(109,756
)
Accounts Payable
 
(999,644
)
 
 
347,539

Accrued Taxes Payable
 
64,124

 
 
115,668

Other Assets
 
76,114

 
 
(141,453
)
Other Liabilities
 
(48,848
)
 
 
57,101

Changes in Components of Working Capital Associated with Investing and Financing Activities
 
169,802

 
 
(31,644
)
Net Cash Provided by Operating Activities
 
1,847,920

 
 
4,202,248

 
 
 
 
 
 
Investing Cash Flows
 
 
 
 
 
Additions to Oil and Gas Properties
 
(2,611,848
)
 
 
(3,724,486
)
Additions to Other Property, Plant and Equipment
 
(201,597
)
 
 
(402,972
)
Proceeds from Sales of Assets
 
116,166

 
 
74,512

Changes in Restricted Cash
 

 
 
(91,238
)
Changes in Components of Working Capital Associated with Investing Activities
 
(169,903
)
 
 
31,620

Net Cash Used in Investing Activities
 
(2,867,182
)
 
 
(4,112,564
)
 
 
 
 
 
 
Financing Cash Flows
 
 
 
 
 
Long-Term Debt Borrowings
 
990,225

 
 
496,220

Long-Term Debt Repayments
 
(500,000
)
 
 
(500,000
)
Settlement of Foreign Currency Swap
 

 
 
(31,573
)
Dividends Paid
 
(183,130
)
 
 
(119,684
)
Excess Tax Benefits from Stock-Based Compensation
 
16,393

 
 
63,759

Treasury Stock Purchased
 
(26,362
)
 
 
(89,524
)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan
 
14,484

 
 
10,433

Debt Issuance Costs
 
(1,585
)
 
 
(895
)
Repayment of Capital Lease Obligation
 
(3,053
)
 
 
(2,958
)
Other, Net
 
101

 
 
24

Net Cash Provided by (Used in) Financing Activities
 
307,073

 
 
(174,198
)
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash
 
(7,629
)
 
 
(3,555
)
 
 
 
 
 
 
Decrease in Cash and Cash Equivalents
 
(719,818
)
 
 
(88,069
)
Cash and Cash Equivalents at Beginning of Period
 
2,087,213

 
 
1,318,209

Cash and Cash Equivalents at End of Period
$
1,367,395

 
$
1,230,140






EOG RESOURCES, INC.
Quantitative Reconciliation of Adjusted Net Income (Non-GAAP)
to Net Income (Loss) (GAAP)
(Unaudited; in thousands, except per share data)
 
 
The following chart adjusts the three-month and six-month periods ended June 30, 2015 and 2014 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 impact of the Texas margin tax rate reduction in 2015, to eliminate the net (gains) losses on asset dispositions in North America, to add back severance costs associated with EOG's North American operations in 2015 and to add back impairment charges related to certain of EOG's North American assets in 2014. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match realizations to production settlement months and make certain other adjustments to exclude non-recurring items. EOG management uses this information for comparative purposes within the industry.
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
 
Reported Net Income (Loss) (GAAP)
$
5,268

 
$
706,353

 
$
(164,480
)
 
$
1,367,281

 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Contracts Impact
 
 
 
 
 
 
 
 
 
 
 
(Gains) Losses on Mark-to-Market Commodity Derivative Contracts
 
48,493

 
 
229,270

 
 
(27,715
)
 
 
385,006

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
 
193,435

 
 
(86,867
)
 
 
561,142

 
 
(120,900
)
Subtotal
 
241,928

 
 
142,403

 
 
533,427

 
 
264,106

 
 
 
 
 
 
 
 
 
 
 
 
After-Tax MTM Impact
 
155,680

 
 
91,359

 
 
343,260

 
 
169,437

 
 
 
 
 
 
 
 
 
 
 
 
Less: Texas Margin Tax Rate Reduction
 
(19,500
)
 
 

 
 
(19,500
)
 
 

Less: Net (Gains) Losses on Asset Dispositions, Net of Tax
 
6,134

 
 
(1,663
)
 
 
5,123

 
 
(9,040
)
Add: Severance Costs, Net of Tax
 
5,473

 
 

 
 
5,473

 
 

Add: Impairments of Certain North American Assets, Net of Tax
 

 
 

 
 

 
 
36,058

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP)
$
153,055

 
$
796,049

 
$
169,876

 
$
1,563,736

 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Per Share (GAAP)
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.01

 
$
1.30

 
$
(0.30
)
 
$
2.52

Diluted
$
0.01

 
$
1.29

 
$
(0.30
)
 
$
2.49

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income Per Share (Non-GAAP)
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.28

 
$
1.47

 
$
0.31

 
$
2.88

Diluted
$
0.28

 
$
1.45

 
$
0.31

 
$
2.85

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income Per Diluted Share (Non-GAAP) - Percentage Decrease
 
-81
 %
 
 
 
 
 
-89
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (GAAP)
 
 
 
 
 
 
 
 
 
 
 
Basic
 
545,504

 
 
543,099

 
 
545,245

 
 
542,675

Diluted
 
549,683

 
 
548,676

 
 
545,245

 
 
548,046

 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (Non-GAAP)
 
 
 
 
 
 
 
 
 
 
 
Basic
 
545,504

 
 
543,099

 
 
545,245

 
 
542,675

Diluted
 
549,683

 
 
548,676

 
 
549,505

 
 
548,046







EOG RESOURCES, INC.
Quantitative Reconciliation of Discretionary Cash Flow (Non-GAAP)
to Net Cash Provided by Operating Activities (GAAP)
(Unaudited; in thousands)
 
The following chart reconciles the three-month and six-month periods ended June 30, 2015 and 2014 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), Excess Tax Benefits from Stock-Based Compensation, Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing and Financing Activities. EOG management uses this information for comparative purposes within the industry.
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
 
Net Cash Provided by Operating Activities (GAAP)
$
887,373

 
$
1,934,575

 
$
1,847,920

 
$
4,202,248

 
 
 
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Exploration Costs (excluding Stock-Based Compensation Expenses)
 
37,870

 
 
36,659

 
 
69,967

 
 
76,783

Excess Tax Benefits from Stock-Based Compensation
 
7,535

 
 
36,337

 
 
16,393

 
 
63,759

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
 
 
 
 
 
 
Accounts Receivable
 
54,917

 
 
105,019

 
 
(298,183
)
 
 
249,336

Inventories
 
(99,781
)
 
 
40,808

 
 
(37,609
)
 
 
109,756

Accounts Payable
 
321,769

 
 
14,271

 
 
999,644

 
 
(347,539
)
Accrued Taxes Payable
 
(62,019
)
 
 
24,133

 
 
(64,124
)
 
 
(115,668
)
Other Assets
 
(16,938
)
 
 
128,917

 
 
(76,114
)
 
 
141,453

Other Liabilities
 
16,993

 
 
(86,270
)
 
 
48,848

 
 
(57,101
)
Changes in Components of Working Capital Associated with Investing and Financing Activities
 
90,190

 
 
(36,639
)
 
 
(169,802
)
 
 
31,644

 
 
 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
1,237,909

 
$
2,197,810

 
$
2,336,940

 
$
4,354,671

 
 
 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP) - Percentage Decrease
 
-44
 %
 
 
 
 
 
-46
 %
 
 
 






EOG RESOURCES, INC.
Quantitative Reconciliation of Adjusted Earnings Before Interest Expense,
Income Taxes, Depreciation, Depletion and Amortization, Exploration Costs,
Dry Hole Costs, Impairments and Additional Items (Adjusted EBITDAX)
(Non-GAAP) to Income (Loss) Before Interest Expense and Income Taxes (GAAP)
(Unaudited; in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
The following chart adjusts the three-month and six-month periods ended June 30, 2015 and 2014 reported Income (Loss) Before Interest Expense and Income Taxes (GAAP) to Earnings Before Interest Expense, Income Taxes, 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 net (gains) losses on asset dispositions in North America. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Income (Loss) Before Interest Expense and Income Taxes (GAAP) to add back 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 items. EOG management uses this information for comparative purposes within the industry.
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) Before Interest Expense and Income Taxes (GAAP)
$
49,006

 
$
1,152,680

 
$
(133,980
)
 
$
2,233,621

 
 
 
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
 
909,227

 
 
996,602

 
 
1,822,015

 
 
1,943,093

Exploration Costs
 
43,755

 
 
42,208

 
 
83,204

 
 
90,266

Dry Hole Costs
 
(551
)
 
 
5,558

 
 
14,119

 
 
13,906

Impairments
 
68,519

 
 
39,035

 
 
137,955

 
 
152,396

EBITDAX (Non-GAAP)
 
1,069,956

 
 
2,236,083

 
 
1,923,313

 
 
4,433,282

Total (Gains) Losses on MTM Commodity Derivative Contracts
 
48,493

 
 
229,270

 
 
(27,715
)
 
 
385,006

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
 
193,435

 
 
(86,867
)
 
 
561,142

 
 
(120,900
)
(Gains) Losses on Asset Dispositions, Net
 
5,564

 
 
(3,856
)
 
 
3,957

 
 
(15,354
)
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDAX (Non-GAAP)
$
1,317,448

 
$
2,374,630

 
$
2,460,697

 
$
4,682,034

 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDAX (Non-GAAP) - Percentage Decrease
 
-45
 %
 
 
 
 
 
-47
 %
 
 
 






EOG RESOURCES, INC.
Quantitative Reconciliation of Net Debt (Non-GAAP) and Total
Capitalization (Non-GAAP) as Used in the Calculation of
the Net Debt-to-Total Capitalization Ratio (Non-GAAP) to
Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP)
(Unaudited; in millions, except ratio data)
 
 
 
The following chart reconciles Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation. A portion of the cash is associated with international subsidiaries; tax considerations may impact debt paydown. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt and Total Capitalization (Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation. EOG management uses this information for comparative purposes within the industry.
 
 
 
 
At
 
At
 
June 30,
 
December 31,
 
2015
 
2014
 
 
 
Total Stockholders' Equity - (a)
$
17,427

 
$
17,713

 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (b)
 
6,400

 
 
5,910

Less: Cash
 
(1,367
)
 
 
(2,087
)
Net Debt (Non-GAAP) - (c)
 
5,033

 
 
3,823

 
 
 
 
 
 
Total Capitalization (GAAP) - (a) + (b)
$
23,827

 
$
23,623

 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (a) + (c)
$
22,460

 
$
21,536

 
 
 
 
 
 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]
 
27
%
 
 
25
%
 
 
 
 
 
 
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
 
22
%
 
 
18
%






EOG RESOURCES, INC.
Crude Oil and Natural Gas Financial
Commodity Derivative Contracts
 
Presented below is a comprehensive summary of EOG's crude oil and natural gas derivative contracts at August 6, 2015, with notional volumes expressed in Bbld and MMBtud and prices expressed in $/Bbl and $/MMBtu. EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method.
 
Crude Oil Derivative Contracts
 
Weighted
 
Volume
 
Average Price
 
(Bbld)
 
($/Bbl)
2015
 
 
 
 
 
January 1, 2015 through June 30, 2015 (closed)
47,000

 
$
91.22

July 2015 (closed)
10,000

 
89.98

August 1, 2015 through December 31, 2015
10,000

 
89.98

 
 
 
 
 
 
 
Natural Gas Derivative Contracts
 
Weighted
 
Volume
 
Average Price
 
(MMBtud)
 
($/MMBtu)
2015 (1)
 
 
 
 
 
January 1, 2015 through February 28, 2015 (closed)
235,000

 
$
4.47

March 2015 (closed)
225,000

 
4.48

April 2015 (closed)
195,000

 
4.49

May 2015 (closed)
235,000

 
4.13

June 2015 (closed)
275,000

 
3.97

July 2015 (closed)
275,000

 
3.98

August 2015 (closed)
175,000

 
4.51

September 1, 2015 through December 31, 2015
175,000

 
4.51

 
 
(1)
EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates. All such options are exercisable monthly up until the settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 175,000 MMBtud at an average price of $4.51 per MMBtu for each month during the period September 1, 2015 through December 31, 2015.

$/Bbl
 
Dollars per barrel
$/MMBtu
 
Dollars per million British thermal units
Bbld
 
Barrels per day
MMBtu
 
Million British thermal units
MMBtud
 
Million British thermal units per day





EOG RESOURCES, INC.
Direct After-Tax Rate of Return (ATROR)
 
The calculation of our direct after-tax rate of return (ATROR) with respect to our capital expenditure program for a particular play or well is based on the estimated proved reserves ("net" to EOG’s interest) for all wells in such play or such well (as the case may be), the estimated net present value (NPV) of the future net cash flows from such reserves (for which we utilize certain assumptions regarding future commodity prices and operating costs) and our direct net costs incurred in drilling or acquiring (as the case may be) such wells or well (as the case may be). As such, our direct ATROR with respect to our capital expenditures for a particular play or well cannot be calculated from our consolidated financial statements.
 
Direct ATROR
Based on Cash Flow and Time Value of Money
  - Estimated future commodity prices and operating costs
  - Costs incurred to drill, complete and equip a well, including facilities
Excludes Indirect Capital
  - Gathering and Processing and other Midstream
  - Land, Seismic, Geological and Geophysical
 
Payback ~12 Months on 100% Direct ATROR Wells
First Five Years ~1/2 Estimated Ultimate Recovery Produced but ~3/4 of NPV Captured
 
 
Return on Equity/Return on Capital Employed
Based on GAAP Accrual Accounting
Includes All Indirect Capital and Growth Capital for Infrastructure
  - Eagle Ford, Bakken, Permian Facilities
  - Gathering and Processing
Includes Legacy Gas Capital and Capital from Mature Wells






EOG RESOURCES, INC.
Quantitative Reconciliation of After-Tax Net Interest Expense (Non-GAAP), Adjusted Net Income
(Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP) as used in the Calculations of
Return on Capital Employed (Non-GAAP) and Return on Equity (Non-GAAP) to Net Interest Expense (GAAP),
Net Income (GAAP), Current and Long-Term (GAAP) and Total Capitalization (GAAP), Respectively
(Unaudited; in millions, except ratio data)
 
 
 
 
 
 
The following chart reconciles Net Interest Expense (GAAP), Net Income (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Adjusted Net Income (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) and Return on Equity (ROE) calculations. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Adjusted Net Income, Net Debt and Total Capitalization (Non-GAAP) in their ROCE and ROE calculations. EOG management uses this information for comparative purposes within the industry.
 
 
 
 
 
 
 
2014
 
2013
 
2012
Return on Capital Employed (ROCE) (Non-GAAP)
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense (GAAP)
$
201

 
$
235

 
 
Tax Benefit Imputed (based on 35%)
(70
)
 
(82
)
 
 
After-Tax Net Interest Expense (Non-GAAP) - (a)
$
131

 
$
153

 
 
 
 
 
 
 
 
Net Income (GAAP) - (b)
$
2,915

 
$
2,197

 
 
 
 
 
 
 
 
Add: After-Tax Mark-to-Market Commodity Derivative Contracts Impact
(515
)
 
182

 
 
Add: Impairments of Certain Assets, Net of Tax
553

 
4

 
 
Add: Tax Expense Related to the Repatriation of Accumulated Foreign Earnings in Future Years
250

 

 
 
Less: Net Gains on Asset Dispositions, Net of Tax
(487
)
 
(137
)
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP) - (c)
$
2,716

 
$
2,246

 
 
 
 
 
 
 
 
Total Stockholders' Equity - (d)
$
17,713

 
$
15,418

 
$
13,285

 
 
 
 
 
 
Average Total Stockholders' Equity * - (e)
$
16,566

 
$
14,352

 
 
 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (f)
$
5,910

 
$
5,913

 
$
6,312

Less: Cash
(2,087
)
 
(1,318
)
 
(876
)
Net Debt (Non-GAAP) - (g)
$
3,823

 
$
4,595

 
$
5,436

 
 
 
 
 
 
Total Capitalization (GAAP) - (d) + (f)
$
23,623

 
$
21,331

 
$
19,597

 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (d) + (g)
$
21,536

 
$
20,013

 
$
18,721

 
 
 
 
 
 
Average Total Capitalization (Non-GAAP) * - (h)
$
20,775

 
$
19,367

 
 
 
 
 
 
 
 
ROCE (GAAP Net Income) - [(a) + (b)] / (h)
14.7
%
 
12.1
%
 
 
 
 
 
 
 
 
ROCE (Non-GAAP Adjusted Net Income) - [(a) + (c)] / (h)
13.7
%
 
12.4
%
 
 
 
 
 
 
 
 
Return on Equity (ROE) (Non-GAAP)
 
 
 
 
 
 
 
 
 
 
 
ROE (GAAP Net Income) - (b) / (e)
17.6
%
 
15.3
%
 
 
 
 
 
 
 
 
ROE (Non-GAAP Adjusted Net Income) - (c) / (e)
16.4
%
 
15.6
%
 
 
 
 
 
 
 
 
* Average for the current and immediately preceding year
 
 
 
 
 






EOG RESOURCES, INC.
Third Quarter and Full Year 2015 Forecast and Benchmark Commodity Pricing
 
(a) Third Quarter and Full Year 2015 Forecast
 
The forecast items for the third quarter and full year 2015 set forth below for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of the accompanying press release. EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. This forecast, which should be read in conjunction with the accompanying press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.
 
(b) Benchmark Commodity Pricing
 
EOG bases United States and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.
 
EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.
 
 
 
Estimated Ranges
(Unaudited)
 
 
3Q 2015
 
 
Full Year 2015
Daily Production
 
 
 
 
 
 
 
 
 
 
 
Crude Oil and Condensate Volumes (MBbld)
 
 
 
 
 
 
 
 
 
 
 
United States
 
269.0

-
 
277.0

 
 
279.2

-
 
284.2

Trinidad
 
0.6

-
 
0.8

 
 
0.7

-
 
0.9

Other International
 
0.1

-
 
0.3

 
 
4.0

-
 
6.5

Total
 
269.7

-
 
278.1

 
 
283.9

-
 
291.6

 
Natural Gas Liquids Volumes (MBbld)
 
 
 
 
 
 
 
 
 
 
 
Total
 
72.0

-
 
77.0

 
 
74.0

-
 
77.0

 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Volumes (MMcfd)
 
 
 
 
 
 
 
 
 
 
 
United States
 
845

-
 
885

 
 
870

-
 
890

Trinidad
 
330

-
 
360

 
 
330

-
 
345

Other International
 
27

-
 
32

 
 
28

-
 
30

Total
 
1,202

-
 
1,277

 
 
1,228

-
 
1,265

 
Crude Oil Equivalent Volumes (MBoed)
 
 
 
 
 
 
 
 
 
 
 
United States
 
481.8

-
 
501.5

 
 
498.2

-
 
509.5

Trinidad
 
55.6

-
 
60.8

 
 
55.7

-
 
58.4

Other International
 
4.6

-
 
5.6

 
 
8.7

-
 
11.5

Total
 
542.0

-
 
567.9

 
 
562.6

-
 
579.4

 





 
Estimated Ranges
(Unaudited)
 
3Q 2015
 
Full Year 2015
Operating Costs
 
 
 
 
 
 
 
 
 
 
 
Unit Costs ($/Boe)
 
 
 
 
 
 
 
 
 
 
 
Lease and Well
$
5.70

-
$
6.60

 
$
6.00

-
$
6.40

Transportation Costs
$
4.30

-
$
4.70

 
$
4.30

-
$
4.50

Depreciation, Depletion and Amortization
$
17.60

-
$
18.00

 
$
17.70

-
$
17.90

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses ($MM)
 
 
 
 
 
 
 
 
 
 
 
Exploration, Dry Hole and Impairment
$
140

-
$
160

 
$
515

-
$
555

General and Administrative
$
90

-
$
100

 
$
345

-
$
370

Gathering and Processing
$
32

-
$
36

 
$
135

-
$
145

Capitalized Interest
$
10

-
$
11

 
$
42

-
$
45

Net Interest
$
59

-
$
60

 
$
230

-
$
235

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxes Other Than Income (% of Wellhead Revenue)
 
6.5
%
-
 
7.0
%
 
 
6.5
%
-
 
6.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes
 
 
 
 
 
 
 
 
 
 
 
Effective Rate
 
25
%
-
 
35
%
 
 
25
%
-
 
35
%
Current Taxes ($MM)
$
60

-
$
75

 
$
175

-
$
200

 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures (Excluding Acquisitions, $MM)
 
 
 
 
 
 
 
 
 
 
 
Exploration and Development, Excluding Facilities
 
 
 
 
 
 
$
3,700

-
$
3,800

Exploration and Development Facilities
 
 
 
 
 
 
$
670

-
$
710

Gathering, Processing and Other
 
 
 
 
 
 
$
330

-
$
390

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pricing - (Refer to Benchmark Commodity Pricing in text)
 
 
 
 
 
 
 
 
 
 
 
Crude Oil and Condensate ($/Bbl)
 
 
 
 
 
 
 
 
 
 
 
Differentials
 
 
 
 
 
 
 
 
 
 
 
United States - above (below) WTI
$
(1.60
)
-
$
0.40

 
$
(1.70
)
-
$
(0.70
)
Trinidad - above (below) WTI
$
(10.50
)
-
$
(9.50
)
 
$
(10.00
)
-
$
(9.25
)
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Liquids
 
 
 
 
 
 
 
 
 
 
 
Realizations as % of WTI
 
24
%
-
 
28
%
 
 
27
%
-
 
29
%
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas ($/Mcf)
 
 
 
 
 
 
 
 
 
 
 
Differentials
 
 
 
 
 
 
 
 
 
 
 
United States - above (below) NYMEX Henry Hub
$
(0.80
)
-
$
(0.35
)
 
$
(0.75
)
-
$
(0.45
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realizations
 
 
 
 
 
 
 
 
 
 
 
Trinidad
$
2.75

-
$
3.25

 
$
2.90

-
$
3.15

Other International
$
3.25

-
$
3.75

 
$
3.35

-
$
3.55

 
Definitions
 
 
 
 
 
 
 
 
 
 
 
$/Bbl
 
U.S. Dollars per barrel
 
 
 
 
 
 
 
 
 
 
 
$/Boe
 
U.S. Dollars per barrel of oil equivalent
 
 
 
 
 
 
 
 
 
 
 
$/Mcf
 
U.S. Dollars per thousand cubic feet
 
 
 
 
 
 
 
 
 
 
 
$MM
 
U.S. Dollars in millions
 
 
 
 
 
 
 
 
 
 
 
MBbld
 
Thousand barrels per day
 
 
 
 
 
 
 
 
 
 
 
MBoed
 
Thousand barrels of oil equivalent per day
 
 
 
 
 
 
 
 
 
 
 
MMcfd
 
Million cubic feet per day
 
 
 
 
 
 
 
 
 
 
 
NYMEX
 
New York Mercantile Exchange
 
 
 
 
 
 
 
 
 
 
 
WTI
 
West Texas Intermediate
 
 
 
 
 
 
 
 
 
 
 


EOG Resources (NYSE:EOG)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more EOG Resources Charts.
EOG Resources (NYSE:EOG)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more EOG Resources Charts.