Nov 6, 2019 SOURCE: PR NewsWire
EOG Resources Reports Outstanding Third Quarter 2019 Results; Announces Two New Delaware Basin Plays and Adds 1,700 Net Premium Locations
HOUSTON, Nov. 6, 2019 /PRNewswire/ --
-- Exceeded Crude Oil Production Target Range and Raised Full-Year 2019
U.S. Crude Oil Growth Target from 14 to 15 Percent
-- Capital Expenditures Near Low End of Target Range
-- Generated Significant Net Cash From Operating Activities and Free Cash
Flow
-- Reduced YTD Well Costs 5 Percent
-- Per-Unit Lease and Well and DD&A Expense Rates Below Low End of Target
Ranges
-- Added 1,700 Net Premium Locations to Inventory Now Totaling 10,500
Locations and Representing Over 14 Years of Drilling Inventory
-- New Delaware Basin Wolfcamp M and Third Bone Spring Plays Add 1.6 BnBoe
Net Resource Potential
EOG Resources, Inc. (EOG) today reported third quarter 2019 net income of $615 million, or $1.06 per share, compared with third quarter 2018 net income of $1.2 billion, or $2.05 per share. Net cash provided by operating activities for the third quarter 2019 was $2.1 billion.
Adjusted non-GAAP net income for the third quarter 2019 was $654 million, or $1.13 per share, compared with adjusted non-GAAP net income of $1.0 billion, or $1.75 per share, for the same prior year period. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.
Third Quarter 2019 Operating Review
Total crude oil volumes of 464,100 barrels of oil per day (Bopd) in the third quarter 2019 increased 12 percent compared to the same prior year period and were above the high end of the target range. Natural gas liquids (NGLs) and natural gas volumes each grew 11 percent. EOG incurred total expenditures of $1.6 billion in the third quarter. Cash capital expenditures before acquisitions of $1.5 billion were near the low end of the target range. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.
EOG continued to lower operating costs during the third quarter 2019. Per-unit transportation costs declined nine percent compared to the same prior-year period, depreciation, depletion and amortization expenses fell seven percent year-over-year, and lease and well expenses declined three percent year-over-year.
EOG generated $2.0 billion of discretionary cash flow in the third quarter 2019. After considering cash capital expenditures before acquisitions of $1.5 billion and dividend payments of $166 million, EOG generated free cash flow during the third quarter 2019 of $337 million. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.
"EOG's operating performance has never been better. The company generated outstanding financial results in the third quarter driven by improvements in every area," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "We reduced operating expenses, grew volumes at double-digit rates while lowering well costs and generated substantial free cash flow. EOG has never been in a better position to sustain this success long into the future."
New Delaware Basin Plays and Premium Inventory Update
EOG expanded its lineup of premium plays in the Delaware Basin with the addition of the Wolfcamp M and the Third Bone Spring. The drilling locations in these two plays are highly economic at a flat $40 oil price and flat $2.50 natural gas price, consistent with EOG's definition of premium inventory. The company continues to deepen its technical knowledge of the Delaware Basin as it executes its development program. EOG collects significant amounts of data on each well, integrates it with existing models and incorporates analysis from numerous spacing and targeting tests.
EOG has identified an initial 855 net premium drilling locations in the Wolfcamp M, with estimated net resource potential of 1.0 billion barrels of oil equivalent across its 193,000 net acre position. The wells in this deeper section of the Wolfcamp formation produce roughly equal parts oil, NGLs and natural gas. Benefiting from EOG's low well costs, Wolfcamp M wells deliver strong premium economics and exceptionally low finding costs.
To define the play, EOG has gathered extensive subsurface information and has completed six Wolfcamp M wells, including two during 2019. The Green Drake 16 Fed Com #759H was completed in Lea County, NM with a treated lateral length of 7,200 feet and a 30-day initial production rate of 4,165 barrels of oil equivalent per day (Boed), or 2,145 Bopd, 1,070 barrels per day (Bpd) of NGLs and 5.7 million cubic feet per day (MMcfd) of natural gas. In Reeves County, TX, the State Correa #3H was completed with a treated lateral length of 9,900 feet and a 30-day initial production rate of 2,800 Boed, or 1,175 Bopd, 845 Bpd of NGLs and 4.7 MMcfd of natural gas.
EOG has identified an initial 615 net premium drilling locations in the Third Bone Spring, with estimated net resource potential of 585 million barrels of oil equivalent across its 200,000 net acre position. EOG's early focus in the Delaware Basin has been on development of the Wolfcamp formation, which sits below the Third Bone Spring. Each of the Wolfcamp wells has drilled through the Third Bone Spring, providing significant technical data and helping to delineate multiple targets within the play.
EOG has completed over 50 Third Bone Spring wells to date, including 10 net wells in 2019. The McGregor D 5 #592H targeted the Third Bone Spring Carbonate and was completed in Loving County, TX with a treated lateral length of 9,700 feet and a 30-day initial production rate of 2,865 Boed, or 1,990 Bopd, 500 Bpd of NGLs and 2.3 MMcfd of natural gas. In Lea County, NM, the Caravan 28 State Com #601H and the Convoy 28 State Com #606H targeted the Third Bone Spring Sand and were completed with an average treated lateral length of 10,000 feet per well and average 30-day initial production rates per well of 3,985 Boed, or 2,730 Bopd, 670 Bpd of NGLs and 3.5 MMcfd of natural gas.
In total, EOG added 1,700 net premium drilling locations to its undrilled premium inventory in the third quarter 2019. Taking into account approximately 640 net wells drilled to date in 2019 and updated location counts across its portfolio, EOG's premium inventory now totals 10,500 net locations, representing more than 14 years of high-return drilling inventory.
"EOG is a returns-focused company where organic growth is driven by exploration and low-cost development. The announcement of two more premium plays in the Delaware Basin and the addition of 1,700 new net premium drilling locations demonstrate the sustainability of our unique business model," Thomas continued. "EOG continues to demonstrate its ability to generate attractive returns on capital through reinvestment in an improving inventory of premium wells across multiple plays. Our best-in-class assets prove that EOG can adapt to changing industry conditions and create significant shareholder value for years to come."
Financial Review
EOG further strengthened its financial position during the third quarter 2019. At September 30, 2019, EOG's total debt outstanding was $5.2 billion for a debt-to-total capitalization ratio of 20 percent. Considering $1.6 billion of cash on the balance sheet at the end of the third quarter, EOG's net debt was $3.6 billion for a net debt-to-total capitalization ratio of 15 percent. For a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.
Third Quarter 2019 Results Webcast
Thursday, November 7, 2019, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG website for one year.
http://investors.eogresources.com/Investors
About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States, Trinidad, and China. To learn more visit www.eogresources.com.
Investor Contacts
David Streit 713-571-4902
Neel Panchal 713-571-4884
Media and Investor Contact
Kimberly Ehmer 713-571-4676
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production, capital expenditures, costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "goal," "may," "will," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness or pay and/or increase dividends are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Furthermore, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow or discretionary cash flow, and certain related estimates regarding future performance, results and financial position. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:
-- the timing, extent and duration of changes in prices for, supplies of,
and demand for, crude oil and condensate, natural gas liquids, natural
gas and related commodities;
-- the extent to which EOG is successful in its efforts to acquire or
discover additional reserves;
-- the extent to which EOG is successful in its efforts to economically
develop its acreage in, produce reserves and achieve anticipated
production levels from, and maximize reserve recovery from, its existing
and future crude oil and natural gas exploration and development
projects;
-- the extent to which EOG is successful in its efforts to market its
crude oil and condensate, natural gas liquids, natural gas and related
commodity production;
-- the availability, proximity and capacity of, and costs associated
with, appropriate gathering, processing, compression, storage,
transportation and refining facilities;
-- the availability, cost, terms and timing of issuance or execution of,
and competition for, mineral licenses and leases and governmental and
other permits and rights-of-way, and EOG's ability to retain mineral
licenses and leases;
-- the impact of, and changes in, government policies, laws and
regulations, including tax laws and regulations; climate change and
other environmental, health and safety laws and regulations relating to
air emissions, disposal of produced water, drilling fluids and other
wastes, hydraulic fracturing and access to and use of water; laws and
regulations imposing conditions or restrictions on drilling and
completion operations and on the transportation of crude oil and natural
gas; laws and regulations with respect to derivatives and hedging
activities; and laws and regulations with respect to the import and
export of crude oil, natural gas and related commodities;
-- EOG's ability to effectively integrate acquired crude oil and natural
gas properties into its operations, fully identify existing and
potential problems with respect to such properties and accurately
estimate reserves, production and costs with respect to such properties;
-- the extent to which EOG's third-party-operated crude oil and natural
gas properties are operated successfully and economically;
-- competition in the oil and gas exploration and production industry for
the acquisition of licenses, leases and properties, employees and other
personnel, facilities, equipment, materials and services;
-- the availability and cost of employees and other personnel,
facilities, equipment, materials (such as water and tubulars) and
services;
-- the accuracy of reserve estimates, which by their nature involve the
exercise of professional judgment and may therefore be imprecise;
-- weather, including its impact on crude oil and natural gas demand, and
weather-related delays in drilling and in the installation and operation
(by EOG or third parties) of production, gathering, processing,
refining, compression, storage and transportation facilities;
-- the ability of EOG's customers and other contractual counterparties to
satisfy their obligations to EOG and, related thereto, to access the
credit and capital markets to obtain financing needed to satisfy their
obligations to EOG;
-- EOG's ability to access the commercial paper market and other credit
and capital markets to obtain financing on terms it deems acceptable, if
at all, and to otherwise satisfy its capital expenditure requirements;
-- the extent to which EOG is successful in its completion of planned
asset dispositions;
-- the extent and effect of any hedging activities engaged in by EOG;
-- the timing and extent of changes in foreign currency exchange rates,
interest rates, inflation rates, global and domestic financial market
conditions and global and domestic general economic conditions;
-- geopolitical factors and political conditions and developments around
the world (such as the imposition of tariffs or trade or other economic
sanctions, political instability and armed conflict), including in the
areas in which EOG operates;
-- the use of competing energy sources and the development of alternative
energy sources;
-- the extent to which EOG incurs uninsured losses and liabilities or
losses and liabilities in excess of its insurance coverage;
-- acts of war and terrorism and responses to these acts;
-- physical, electronic and cybersecurity breaches; and
-- the other factors described under ITEM 1A, Risk Factors, on pages 13
through 22 of EOG's Annual Report on Form 10-K for the fiscal year ended
December 31, 2018 and any updates to those factors set forth in EOG's
subsequent Quarterly Reports on Form 10-Q or Current Reports on Form
8-K.
In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov. In addition, reconciliation and calculation schedules for non-GAAP financial measures can be found on the EOG website at www.eogresources.com.
EOG RESOURCES, INC.
Financial Report
---
(Unaudited; in millions, except per share data)
Three Months Ended Nine Months Ended
September 30,
September 30,
---
2019 2018 2019 2018
---
Operating Revenues and Other $
4,303.5 $
4,781.6 $
13,059.7 $
12,700.9
Net Income $
615.1 $
1,191.0 $
2,098.4 $
2,526.3
Net Income Per Share
Basic $
1.06 $
2.06 $
3.63 $
4.38
Diluted $
1.06 $
2.05 $
3.61 $
4.35
Average Number of Common Shares
Basic 577.8 577.3 577.5 576.4
Diluted 581.3 581.6 581.2 580.4
Summary Income Statements
---
(Unaudited; in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30,
September 30,
---
2019 2018 2019 2018
---
Operating Revenues and Other
Crude Oil and Condensate $
2,418,989 $
2,655,278 $
7,148,258 $
7,134,114
Natural Gas Liquids 164,736 353,704 569,748 861,473
Natural Gas 269,625 311,713 874,489 912,324
Gains (Losses) on Mark-to-Market Commodity 85,902 (52,081) 242,622 (297,735)
Derivative Contracts
Gathering, Processing and Marketing 1,334,450 1,360,992 4,121,490 3,899,250
Gains (Losses) on Asset Dispositions, Net (523) 115,944 3,650 94,658
Other, Net 30,276 36,074 99,470 96,779
Total 4,303,455 4,781,624 13,059,727 12,700,863
Operating Expenses
Lease and Well 348,883 321,568 1,032,455 936,236
Transportation Costs 199,365 196,027 549,988 550,781
Gathering and Processing Costs 127,549 114,063 351,487 324,577
Exploration Costs 34,540 32,823 103,386 115,137
Dry Hole Costs 24,138 358 28,001 5,260
Impairments 105,275 44,617 289,761 160,934
Marketing Costs 1,343,293 1,326,974 4,114,265 3,853,827
Depreciation, Depletion and Amortization 953,597 918,180 2,790,496 2,515,445
General and Administrative 135,758 111,284 364,210 310,065
Taxes Other Than Income 203,098 209,043 600,418 582,395
Total 3,475,496 3,274,937 10,224,467 9,354,657
Operating Income 827,959 1,506,687 2,835,260 3,346,206
Other Income (Expense), Net 9,118 3,308 23,233 (4,516)
Income Before Interest Expense and Income Taxes 837,077 1,509,995 2,858,493 3,341,690
Interest Expense, Net 39,620 63,632 144,434 189,032
Income Before Income Taxes 797,457 1,446,363 2,714,059 3,152,658
Income Tax Provision 182,335 255,411 615,670 626,386
Net Income $
615,122 $
1,190,952 $
2,098,389 $
2,526,272
Dividends Declared per Common Share $
0.2875 $
0.2200 $
0.7950 $
0.5900
EOG RESOURCES, INC.
Operating Highlights
---
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 % Change 2019 2018 % Change
---
Wellhead Volumes and Prices
---
Crude Oil and Condensate Volumes (MBbld) (A)
United States 463.2 409.2 13% 451.2 382.9 18%
Trinidad 0.8 0.8 0% 0.7 0.8 -13%
Other International (B) 0.1 5.0 -98% 0.1 4.1 -98%
Total 464.1 415.0 12% 452.0 387.8 17%
Average Crude Oil and Condensate Prices ($/Bbl) (C)
United States $
56.67 $
69.53 -18% $
57.95 $
67.35 -14%
Trinidad 48.36 61.71 -22% 47.26 58.91 -20%
Other International (B) 59.87 72.81 -18% 58.43 71.83 -19%
Composite 56.66 69.55 -19% 57.93 67.38 -14%
Natural Gas Liquids Volumes (MBbld) (A)
United States 141.3 127.8 11% 130.8 113.9 15%
Other International (B)
Total 141.3 127.8 11% 130.8 113.9 15%
Average Natural Gas Liquids Prices ($/Bbl) (C)
United States $
12.67 $
30.09 -58% $
15.96 $
27.71 -42%
Other International (B)
Composite 12.67 30.09 -58% 15.96 27.71 -42%
Natural Gas Volumes (MMcfd) (A)
United States 1,079 948 14% 1,043 905 15%
Trinidad 260 260 0% 267 278 -4%
Other International (B) 34 28 21% 36 31 16%
Total 1,373 1,236 11% 1,346 1,214 11%
Average Natural Gas Prices ($/Mcf) (C)
United States $
1.97 $
2.67 -26% $
2.23 $
2.66 -16%
Trinidad 2.52 2.88 -12% 2.71 2.91 -7%
Other International (B) 4.25 3.83 11% 4.29 4.10 5%
Composite 2.13 2.74 -22% 2.38 2.75 -14%
Crude Oil Equivalent Volumes (MBoed) (D)
United States 784.3 695.0 13% 755.8 647.6 17%
Trinidad 44.1 44.1 0% 45.1 47.2 -4%
Other International (B) 5.8 9.7 -40% 6.2 9.2 -33%
Total 834.2 748.8 11% 807.1 704.0 15%
Total MMBoe (D) 76.7 68.9 11% 220.3 192.2 15%
(A) Thousand barrels per day or
million cubic feet per day, as
applicable.
(B) Other International includes
EOG's United Kingdom, China and
Canada operations. The United
Kingdom operations were sold in
the fourth quarter of 2018.
(C) Dollars per barrel or per
thousand cubic feet, as
applicable. Excludes the impact
of financial commodity
derivative instruments (see Note
12 to the Condensed Consolidated
Financial Statements in EOG's
Quarterly Report on Form 10-Q
for the fiscal quarter ended
September 30, 2019).
(D) Thousand barrels of oil
equivalent per day or million
barrels of oil equivalent, as
applicable; includes crude oil
and condensate, NGLs and natural
gas. Crude oil equivalent
volumes are determined using a
ratio of 1.0 barrel of crude oil
and condensate or NGLs to 6.0
thousand cubic feet of natural
gas. MMBoe is calculated by
multiplying the MBoed amount by
the number of days in the period
and then dividing that amount by
one thousand.
EOG RESOURCES, INC.
Summary Balance Sheets
---
(Unaudited; in thousands, except share data)
September 30, December 31,
2019 2018
ASSETS
Current Assets
Cash and Cash Equivalents $
1,583,105 $
1,555,634
Accounts Receivable, Net 1,927,996 1,915,215
Inventories 778,120 859,359
Assets from Price Risk Management Activities 122,627 23,806
Income Taxes Receivable 135,680 427,909
Other 272,203 275,467
Total 4,819,731 5,057,390
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method) 61,620,033 57,330,016
Other Property, Plant and Equipment 4,394,486 4,220,665
Total Property, Plant and Equipment 66,014,519 61,550,681
Less: Accumulated Depreciation, Depletion and Amortization (35,810,197) (33,475,162)
Total Property, Plant and Equipment, Net 30,204,322 28,075,519
Deferred Income Taxes 1,998 777
Other Assets 1,516,218 800,788
Total Assets $
36,542,269 $
33,934,474
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $
2,395,080 $
2,239,850
Accrued Taxes Payable 302,774 214,726
Dividends Payable 166,215 126,971
Current Portion of Long-Term Debt 1,014,200 913,093
Current Portion of Operating Lease Liabilities 384,348
Other 211,096 233,724
Total 4,473,713 3,728,364
Long-Term Debt 4,163,115 5,170,169
Other Liabilities 1,858,357 1,258,355
Deferred Income Taxes 4,922,804 4,413,398
Commitments and Contingencies
Stockholders' Equity
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 205,821 205,804
582,066,483 Shares Issued at September 30, 2019 and 580,408,117
Shares Issued at December 31, 2018
Additional Paid in Capital 5,769,073 5,658,794
Accumulated Other Comprehensive Loss (3,689) (1,358)
Retained Earnings 15,179,381 13,543,130
Common Stock Held in Treasury, 289,903 Shares at September 30, 2019 (26,306) (42,182)
and 385,042 Shares at December 31, 2018
Total Stockholders' Equity 21,124,280 19,364,188
Total Liabilities and Stockholders' Equity $
36,542,269 $
33,934,474
EOG RESOURCES, INC.
Summary Statements of Cash Flows
---
(Unaudited; in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
---
2019 2018 2019 2018
---
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Net Income $
615,122 $
1,190,952 $
2,098,389 $
2,526,272
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization 953,597 918,180 2,790,496 2,515,445
Impairments 105,275 44,617 289,761 160,934
Stock-Based Compensation Expenses 54,670 49,001 132,323 116,290
Deferred Income Taxes 184,282 334,116 508,576 681,702
(Gains) Losses on Asset Dispositions, Net 523 (115,944) (3,650) (94,658)
Other, Net (1,284) 1,807 4,155 15,314
Dry Hole Costs 24,138 358 28,001 5,260
Mark-to-Market Commodity Derivative Contracts
Total (Gains) Losses (85,902) 52,081 (242,622) 297,735
Net Cash Received from (Payments for) Settlements of Commodity 108,418 (91,894) 139,708 (180,228)
Derivative Contracts
Other, Net (424) 1,913 1,215 1,652
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable 63,891 (243,778) (5,855) (553,529)
Inventories 66,857 (94,598) 55,598 (286,817)
Accounts Payable 7,400 81,548 134,253 537,525
Accrued Taxes Payable 34,767 (59,426) 88,047 (36,891)
Other Assets (92,814) (40,491) 394,573 (103,334)
Other Liabilities 39,791 38,392 (18,315) (14,776)
Changes in Components of Working Capital Associated with Investing and (16,643) 122,763 (38,677) 95,484
Financing Activities
Net Cash Provided by Operating Activities 2,061,664 2,189,597 6,355,976 5,683,380
Investing Cash Flows
Additions to Oil and Gas Properties (1,420,385) (1,591,646) (4,866,882) (4,571,932)
Additions to Other Property, Plant and Equipment (70,469) (57,526) (187,350) (202,384)
Proceeds from Sales of Assets 17,767 3,306 35,409 11,582
Other Investing Activities (19,993) (19,993)
Changes in Components of Working Capital Associated with Investing Activities 16,621 (122,791) 38,677 (95,541)
Net Cash Used in Investing Activities (1,456,466) (1,788,650) (4,980,146) (4,878,268)
Financing Cash Flows
Long-Term Debt Repayments (900,000)
Dividends Paid (166,170) (107,465) (420,851) (311,075)
Treasury Stock Purchased (13,835) (26,535) (22,238) (58,558)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan 863 953 9,558 12,098
Debt Issuance Costs (114) (5,016)
Repayment of Capital Lease Obligation (3,235) (1,698) (9,638) (5,052)
Changes in Components of Working Capital Associated with Financing Activities 22 28 57
Net Cash Used in Financing Activities (182,469) (134,717) (1,348,185) (362,530)
Effect of Exchange Rate Changes on Cash (109) (313) (174) (2,678)
Increase in Cash and Cash Equivalents 422,620 265,917 27,471 439,904
Cash and Cash Equivalents at Beginning of Period 1,160,485 1,008,215 1,555,634 834,228
Cash and Cash Equivalents at End of Period $
1,583,105 $
1,274,132 $
1,583,105 $
1,274,132
EOG RESOURCES, INC.
Third Quarter 2019 Well Results by Play
---
(Unaudited)
Wells On Line Initial Gross 30-Day Average Production Rate
---
Gross
Net
Lateral
Crude Oil and
Natural Gas
Natural Gas
Crude Oil
Length (ft) Condensate Liquids (MMcfd) (A) Equivalent
(Bbld) (A) (Bbld) (A) (Boed) (B)
---
Delaware Basin
Wolfcamp 51 48 7,300 1,950 650 3.3 3,150
Bone Spring 24 21 5,900 1,600 350 1.9 2,300
Leonard 2 1 9,700 2,000 600 3.0 3,100
South Texas Eagle Ford 81 74 7,900 1,150 100 0.6 1,350
South Texas Austin Chalk 4 2 4,600 1,850 350 1.8 2,500
Powder River Basin
Turner / Parkman 7 6 9,800 800 200 3.3 1,550
Niobrara 1 1 10,200 1,250 250 4.0 2,200
DJ Basin Codell / Niobrara 5 4 9,700 800 50 0.4 900
Williston Basin Bakken/Three Forks 15 13 10,600 2,150 300 2.0 2,800
Anadarko Basin Woodford Oil Window 16 14 9,900 950 100 0.7 1,150
(A) Barrels per day or million
cubic feet per day, as
applicable.
(B) Barrels of oil equivalent
per day; includes crude oil
and condensate, natural gas
liquids and natural gas.
Crude oil equivalent volumes
are determined using a ratio
of 1.0 barrel of crude oil and
condensate or natural gas
liquids to 6.0 thousand cubic
feet of natural gas.
EOG RESOURCES, INC.
Reconciliation of Adjusted Net Income
---
(Unaudited; in thousands, except per share data)
The following chart adjusts the three-month and nine-month periods ended September 30, 2019 and 2018 reported Net Income (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions in
2019 and 2018, to add back impairment charges related to certain of EOG's assets in 2019 and 2018 and to eliminate certain adjustments in 2018 related to the 2017 U.S. tax reform. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to production settlement
months and make certain other adjustments to exclude non-recurring and certain other items. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
Three Months Ended
Three Months Ended
September 30, 2019
September 30, 2018
---
Income Diluted Income Diluted
Before
Tax
After Earnings
Before
Tax
After Earnings
Tax Impact
Tax per Share
Tax Impact
Tax per Share
---
Reported Net Income (GAAP) $797,457 $(182,335) $615,122 $1.06 $1,446,363 $(255,411) $1,190,952 $2.05
---
Adjustments:
(Gains) Losses on Mark-to-Market Commodity (85,902) 18,854 (67,048) (0.12) 52,081 (11,472) 40,609 0.07
Derivative Contracts
Net Cash Received from (Payments for) 108,418 (23,796) 84,622 0.15 (91,894) 20,241 (71,653) (0.12)
Settlements of Commodity Derivative
Contracts
Add: (Gains) Losses on Asset Dispositions, Net 523 (89) 434 (115,944) 28,934 (87,010) (0.15)
Add: Certain Impairments 27,215 (5,973) 21,242 0.04 -
Less: Tax Reform Impact - (57,127) (57,127) (0.10)
Adjustments to Net Income 50,254 (11,004) 39,250 0.07 (155,757) (19,424) (175,181) (0.30)
Adjusted Net Income (Non-GAAP) $847,711 $(193,339) $654,372 $1.13 $1,290,606 $(274,835) $1,015,771 $1.75
===
Average Number of Common Shares (GAAP)
Basic 577,839 577,254
Diluted 581,271 581,559
Nine Months Ended
Nine Months Ended
September 30, 2019
September 30, 2018
---
Income Diluted Income Diluted
Before
Tax
After Earnings
Before
Tax
After Earnings
Tax Impact
Tax per Share
Tax Impact
Tax per Share
---
Reported Net Income (GAAP) $2,714,059 $(615,670) $2,098,389 $3.61 $3,152,658 $(626,386) $2,526,272 $4.35
Adjustments:
(Gains) Losses on Mark-to-Market Commodity (242,622) 53,251 (189,371) (0.34) 297,735 (65,582) 232,153 0.40
Derivative Contracts
Net Cash Received from (Payments for) 139,708 (30,663) 109,045 0.19 (180,228) 39,699 (140,529) (0.24)
Settlements of Commodity Derivative
Contracts
Add: (Gains) Losses on Asset Dispositions, Net (3,650) 910 (2,740) (94,658) 24,235 (70,423) (0.12)
Add: Certain Impairments 116,249 (25,514) 90,735 0.16 20,876 (4,598) 16,278 0.03
Less: Tax Reform Impact - (63,651) (63,651) (0.11)
Adjustments to Net Income 9,685 (2,016) 7,669 0.01 43,725 (69,897) (26,172) (0.04)
Adjusted Net Income (Non-GAAP) $2,723,744 $(617,686) $2,106,058 $3.62 $3,196,383 $(696,283) $2,500,100 $4.31
Average Number of Common Shares (GAAP)
Basic 577,498 576,431
Diluted 581,190 580,442
EOG RESOURCES, INC.
Reconciliation of Discretionary Cash Flow
---
(Unaudited; in thousands)
Calculation of Free Cash Flow
---
(Unaudited; in thousands)
---
The following chart reconciles the three-month and nine-month periods ended September 30, 2019 and 2018 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow (Non-GAAP). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating
Activities for Exploration Costs (excluding Stock-Based Compensation Expenses), Other Non-Current Income Taxes - Net Receivable (Payable), Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing and Financing Activities. EOG defines Free Cash Flow (Non-
GAAP) for a given period as Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures before acquisitions incurred (Non-GAAP) during such period and dividends paid (GAAP) during such period, as is illustrated below for the three months and nine months ended September 30, 2019 and
2018. EOG management uses this information for comparative purposes within the industry.
Three Months Ended Nine Months Ended
September 30,
September 30,
---
2019 2018 2019 2018
---
Net Cash Provided by Operating Activities (GAAP) $
2,061,664 $
2,189,597 $
6,355,976 $
5,683,380
Adjustments:
Exploration Costs (excluding Stock-Based Compensation Expenses) 29,374 27,032 85,250 96,716
Other Non-Current Income Taxes - Net Receivable (Payable) 33,855 (129,941) 179,537 62,421
Changes in Components of Working Capital and Other Assets
and Liabilities
Accounts Receivable (63,891) 243,778 5,855 553,529
Inventories (66,857) 94,598 (55,598) 286,817
Accounts Payable (7,400) (81,548) (134,253) (537,525)
Accrued Taxes Payable (34,767) 59,426 (88,047) 36,891
Other Assets 92,814 40,491 (394,573) 103,334
Other Liabilities (39,791) (38,392) 18,315 14,776
Changes in Components of Working Capital Associated with
Investing and Financing Activities 16,643 (122,763) 38,677 (95,484)
Discretionary Cash Flow (Non-GAAP) $
2,021,644 $
2,282,278 $
6,011,139 $
6,204,855
Discretionary Cash Flow (Non-GAAP) - Percentage Decrease -11% -3%
Discretionary Cash Flow (Non-GAAP) $
2,021,644 $
2,282,278 $
6,011,139 $
6,204,855
Less:
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)(a) (1,518,019) (1,671,922) (4,846,221) (4,869,951)
Dividends Paid (GAAP) (166,170) (107,465) (420,851) (311,075)
Free Cash Flow (Non-GAAP) $
337,455 $
502,891 $
744,067 $
1,023,829
(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Expenditures Excluding Acquisitions (Non-GAAP) for the three-months and nine-month periods ended September 30, 2019 and 2018:
Total Expenditures (GAAP) $
1,629,343 $
1,828,348 $
5,394,389 $
5,201,921
Less:
Asset Retirement Costs (90,970) (10,834) (151,551) (41,789)
Non-Cash Expenditures of Other Property, Plant and Equipment (1,257) (586) (48,937)
Non-Cash Acquisition Costs of Unproved Properties (10,666) (101,821) (64,387) (161,823)
Acquisition Costs of Proved Properties (9,688) (42,514) (331,644) (79,421)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) $
1,518,019 $
1,671,922 $
4,846,221 $
4,869,951
EOG RESOURCES, INC.
Total Expenditures
---
(Unaudited; in millions)
Three Months Ended Nine Months Ended
September 30,
September 30,
---
2019 2018 2019 2018
---
Exploration and Development Drilling $1,173 $1,340 $3,865 $3,843
Facilities 161 178 499 518
Leasehold Acquisitions 56 159 201 331
Property Acquisitions 10 42 332 79
Capitalized Interest 10 7 28 18
Subtotal 1,410 1,726 4,925 4,789
Exploration Costs 34 33 103 115
Dry Hole Costs 24 28 5
Exploration and Development Expenditures 1,468 1,759 5,056 4,909
Asset Retirement Costs 91 11 151 42
Total Exploration and Development Expenditures 1,559 1,770 5,207 4,951
Other Property, Plant and Equipment 70 58 187 251
Total Expenditures $1,629 $1,828 $5,394 $5,202
===
EOG RESOURCES, INC.
Reconciliation of Adjusted EBITDAX
---
(Unaudited; in thousands)
The following chart adjusts the three-month and nine-month periods ended September 30, 2019 and 2018 reported Net Income (GAAP) to Earnings Before Interest Expense (Net), Income Taxes (Income Tax Provision), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments (EBITDAX) (Non-GAAP) and further adjusts such
amount to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (MTM) (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 (GAAP) to add back Interest Expense (Net), Income Taxes (Income Tax Provision), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments and further adjust such amount to match realizations to production settlement months and make certain other adjustments
to exclude non-recurring and certain other items. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
Three Months Ended Nine Months Ended
September 30,
September 30,
---
2019 2018 2019 2018
---
Net Income (GAAP) $
615,122 $
1,190,952 $
2,098,389 $
2,526,272
Adjustments:
Interest Expense, Net 39,620 63,632 144,434 189,032
Income Tax Provision 182,335 255,411 615,670 626,386
Depreciation, Depletion and Amortization 953,597 918,180 2,790,496 2,515,445
Exploration Costs 34,540 32,823 103,386 115,137
Dry Hole Costs 24,138 358 28,001 5,260
Impairments 105,275 44,617 289,761 160,934
EBITDAX (Non-GAAP) 1,954,627 2,505,973 6,070,137 6,138,466
Total (Gains) Losses on MTM Commodity Derivative Contracts (85,902) 52,081 (242,622) 297,735
Net Cash Received from (Payments for) Settlements of Commodity 108,418 (91,894) 139,708 (180,228)
Derivative Contracts
(Gains) Losses on Asset Dispositions, Net 523 (115,944) (3,650) (94,658)
Adjusted EBITDAX (Non-GAAP) $
1,977,666 $
2,350,216 $
5,963,573 $
6,161,315
Adjusted EBITDAX (Non-GAAP) - Percentage Decrease -16% -3%
EOG RESOURCES, INC.
Reconciliation of Net Debt and Total Capitalization
---
Calculation of Net Debt-to-Total Capitalization Ratio
---
(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 At
September 30, December 31, September 30,
2019 2018 2018
---
Total Stockholders' Equity - (a) $
21,124 $
19,364 $
18,538
Current and Long-Term Debt (GAAP) - (b) 5,177 6,083 6,435
Less: Cash (1,583) (1,556) (1,274)
Net Debt (Non-GAAP) - (c) 3,594 4,527 5,161
Total Capitalization (GAAP) - (a) + (b) $
26,301 $
25,447 $
24,973
Total Capitalization (Non-GAAP) - (a) + (c) $
24,718 $
23,891 $
23,699
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)] 20% 24% 26%
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)] 15% 19% 22%
EOG RESOURCES, INC.
Reconciliation of Total Exploration and Development Expenditures
---
For Drilling Only and Total Exploration and Development Expenditures
---
Calculation of Reserve Replacement Costs ($ / BOE)
---
(Unaudited; in millions, except ratio data)
The following chart 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
provide management and investors with an indication of the results of the current year capital investment program. Reserve Replacement Cost 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.
2018 2017 2016 2015 2014
---
Total Costs Incurred in Exploration and Development Activities (GAAP) $6,419.7 $4,439.4 $6,445.2 $4,928.3 $7,904.8
Less: Asset Retirement Costs (69.7) (55.6) 19.9 (53.5) (195.6)
Non-Cash Acquisition Costs of Unproved Properties (290.5) (255.7) (3,101.8) -
Acquisition Costs of Proved Properties (123.7) (72.6) (749.0) (480.6) (139.1)
---
Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) (a) $5,935.8 $4,055.5 $2,614.3 $4,394.2 $7,570.1
===
Total Costs Incurred in Exploration and Development Activities (GAAP) $6,419.7 $4,439.4 $6,445.2 $4,928.3 $7,904.8
Less: Asset Retirement Costs (69.7) (55.6) 19.9 (53.5) (195.6)
Non-Cash Acquisition Costs of Unproved Properties (290.5) (255.7) (3,101.8) -
Non-Cash Acquisition Costs of Proved Properties (70.9) (26.2) (732.3) -
Total Exploration and Development Expenditures (Non-GAAP) (b) $5,988.6 $4,101.9 $2,631.0 $4,874.8 $7,709.2
===
Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe)
Revisions Due to Price (c) 34.8 154.0 (100.7) (573.8) 52.2
Revisions Other Than Price (39.5) 48.0 252.9 107.2 48.4
Purchases in Place 11.6 2.3 42.3 56.2 14.4
Extensions, Discoveries and Other Additions (d) 669.7 420.8 209.0 245.9 519.2
---
Total Proved Reserve Additions (e) 676.6 625.1 403.5 (164.5) 634.2
Sales in Place (10.8) (20.7) (167.6) (3.5) (36.3)
---
Net Proved Reserve Additions From All Sources (f) 665.8 604.4 235.9 (168.0) 597.9
===
Production (g) 265.0 224.4 207.1 211.2 219.1
RESERVE REPLACEMENT COSTS ($ / Boe)
Total Drilling, Before Revisions (a / d) $8.86 $9.64 $12.51 $17.87 $14.58
All-in Total, Net of Revisions (b / e) $8.85 $6.56 $6.52 $(29.63) $12.16
All-in Total, Excluding Revisions Due to Price (b / (e - c)) $9.33 $8.71 $5.22 $11.91 $13.25
EOG RESOURCES, INC.
Crude Oil and Natural Gas Financial Commodity
---
Derivative Contracts
---
EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method. Prices received by EOG for its crude oil production generally vary
from NYMEX West Texas Intermediate prices due to adjustments for delivery location (basis) and other factors. EOG has entered into crude oil basis swap contracts in order
to fix the differential between pricing in Midland, Texas, and Cushing, Oklahoma (Midland Differential). Presented below is a comprehensive summary of EOG's Midland
Differential basis swap contracts through October 29, 2019. The weighted average price differential expressed in $/Bbl represents the amount of reduction to Cushing,
Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.
Midland Differential Basis Swap Contracts
---
Weighted
Average Price
Volume
Differential
(Bbld)
($/Bbl)
---
2019
---
January 1, 2019 through November 30, 2019 (closed) 20,000 $1.075
December 2019 20,000 1.075
EOG has also entered into crude oil basis swap contracts in order to fix the differential between pricing in the U.S. Gulf Coast and Cushing, Oklahoma (Gulf Coast
Differential). Presented below is a comprehensive summary of EOG's Gulf Coast Differential basis swap contracts through October 29, 2019. The weighted average price
differential expressed in $/Bbl represents the amount of addition to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap
contracts.
Gulf Coast Differential Basis Swap Contracts
---
Weighted
Average Price
Volume
Differential
(Bbld)
($/Bbl)
---
2019
---
January 1, 2019 through November 30, 2019 (closed) 13,000 $5.572
December 2019 13,000 5.572
Presented below is a comprehensive summary of EOG's crude oil price swap contracts through October 29, 2019, with notional volumes expressed in Bbld and prices expressed in
$/Bbl.
Crude Oil Price Swap Contracts
---
Weighted
Volume
Average Price
(Bbld)
($/Bbl)
---
2019
---
April 2019 (closed) 25,000 $60.00
May 1, 2019 through September 30, 2019 (closed) 150,000 62.50
October 1, 2019 through December 31, 2019 150,000 62.50
Prices received by EOG for its natural gas production generally vary from NYMEX Henry Hub prices due to adjustments for delivery location (basis) and other factors. EOG
has entered into natural gas basis swap contracts in order to fix the differential between pricing in the Rocky Mountain area and NYMEX Henry Hub prices (Rockies
Differential). Presented below is a comprehensive summary of EOG's Rockies Differential basis swap contracts through October 29, 2019. The weighted average price
differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap
contracts.
Rockies Differential Basis Swap Contracts
---
Weighted
Average Price
Volume
Differential
(MMBtud)
($/MMBtu)
---
2020
---
January 1, 2020 through December 31, 2020 30,000 $0.549
Presented below is a comprehensive summary of EOG's natural gas price swap contracts through October 29, 2019, with notional volumes expressed in MMBtud and prices
expressed in $/MMBtu.
Natural Gas Price Swap Contracts
---
Weighted
Volume
Average Price
(MMBtud)
($/MMBtu)
---
2019
---
April 1, 2019 through October 31, 2019 (closed) 250,000 $2.90
Definitions
---
Bbld
Barrels per day
$/Bbl Dollars per barrel
MMBtud Million British thermal
units per day
$/MMBtu Dollars per million British
thermal units
NYMEX U.S. New York Mercantile
Exchange
EOG RESOURCES, INC.
Direct After-Tax Rate of Return
(ATROR)
---
The calculation of our direct after-
tax rate of return (ATROR) with
respect to our capital expenditure
program for a particular play or
well is based on the estimated
recoverable reserves ("net" to EOG's
interest) for all wells in such play
or such well (as the case may be),
the estimated net present value
(NPV) of the future net cash flows
from such reserves (for which we
utilize certain assumptions
regarding future commodity prices
and operating costs) and our direct
net costs incurred in drilling or
acquiring (as the case may be) such
wells or well (as the case may be).
As such, our direct ATROR with
respect to our capital expenditures
for a particular play or well cannot
be calculated from our consolidated
financial statements.
Direct ATROR
---
Based on Cash Flow and Time Value of
Money
-Estimated future commodity prices
and operating costs
-Costs incurred to drill, complete
and equip a well, including
facilities
Excludes Indirect Capital
-Gathering and Processing and other
Midstream
-Land, Seismic, Geological and
Geophysical
Payback ~12 Months on 100% Direct
ATROR Wells
First Five Years ~1/2 Estimated
Ultimate Recovery Produced but ~3/4
of NPV Captured
Return on Equity /Return on Capital
Employed
---
Based on GAAP Accrual Accounting
Includes All Indirect Capital and
Growth Capital for Infrastructure
-Eagle Ford, Bakken, Permian
Facilities
-Gathering and Processing
Includes Legacy Gas Capital and
Capital from Mature Wells
EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense, Adjusted Net Income,
---
Net Debt and Total Capitalization
---
Calculations of Return on Capital Employed and Return on Equity
---
(Unaudited; in millions, except ratio data)
The following chart reconciles Net Interest Expense (GAAP), Net Income (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Adjusted Net Income (Non-GAAP), Net Debt (Non-GAAP) and Total
Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) and Return on Equity (ROE) calculations. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax
Net Interest Expense, Adjusted Net Income, Net Debt and Total Capitalization (Non-GAAP) in their ROCE and ROE calculations. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other
companies in the industry.
2018 2017
Return on Capital Employed (ROCE) (Non-GAAP)
---
Net Interest Expense (GAAP) $
245
Tax Benefit Imputed (based on 21%) (51)
After-Tax Net Interest Expense (Non-GAAP) - (a) $
194
Net Income (GAAP) - (b) $
3,419
Adjustments to Net Income, Net of Tax (See Accompanying (201) (1)
Schedule)
Adjusted Net Income (Non-GAAP) - (c) $
3,218
Total Stockholders' Equity - (d) $
19,364 $
16,283
Average Total Stockholders' Equity * - (e) $
17,824
Current and Long-Term Debt (GAAP) - (f) $
6,083 $
6,387
Less: Cash (1,556) (834)
Net Debt (Non-GAAP) - (g) $
4,527 $
5,553
Total Capitalization (GAAP) - (d) + (f) $
25,447 $
22,670
Total Capitalization (Non-GAAP) - (d) + (g) $
23,891 $
21,836
Average Total Capitalization (Non-GAAP) * - (h) $
22,864
ROCE (GAAP Net Income) - [(a) + (b)] / (h) 15.8%
ROCE (Non-GAAP Adjusted Net Income) - [(a) + (c)] / (h) 14.9%
Return on Equity (ROE)
---
ROE (GAAP Net Income) - (b) / (e) 19.2%
ROE (Non-GAAP Adjusted Net Income) - (c) / (e) 18.1%
* Average for the current and immediately preceding year
Adjustments to Net Income (GAAP)
---
(1) See below schedule for detail of adjustments to Net Income (GAAP) in 2018:
Year Ended December 31, 2018
---
Before
Income Tax After
Tax
Impact Tax
Adjustments:
Add: Mark-to-Market Commodity Derivative Contracts Impact $
(93) $
20 $
(73)
Add: Impairments of Certain Assets 153 (34) 119
Less: Net Gains on Asset Dispositions (175) 38 (137)
Less: Tax Reform Impact (110) (110)
Total $
(115) $
(86) $
(201)
EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense,
---
Net Debt and Total Capitalization
---
Calculation of Return on Capital Employed
---
(Unaudited; in millions, except ratio data)
The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-
GAAP) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation. EOG management uses this information for purposes of
comparing its financial performance with the financial performance of other companies in the industry.
2017 2016 2015 2014 2013
Return on Capital Employed (ROCE) (Non-GAAP)
---
(Calculated Using GAAP Net Income)
---
Net Interest Expense (GAAP) $
274 $
282 $
237 $
201 $
235
Tax Benefit Imputed (based on 35%) (96) (99) (83) (70) (82)
After-Tax Net Interest Expense (Non-GAAP) - (a) $
178 $
183 $
154 $
131 $
153
Net Income (Loss) (GAAP) - (b) $
2,583 $
(1,097) $
(4,525) $
2,915 $
2,197
Total Stockholders' Equity - (d) $
16,283 $
13,982 $
12,943 $
17,713 $
15,418
Average Total Stockholders' Equity * - (e) $
15,133 $
13,463 $
15,328 $
16,566 $
14,352
Current and Long-Term Debt (GAAP) - (f) $
6,387 $
6,986 $
6,655 $
5,906 $
5,909
Less: Cash (834) (1,600) (719) (2,087) (1,318)
Net Debt (Non-GAAP) - (g) $
5,553 $
5,386 $
5,936 $
3,819 $
4,591
Total Capitalization (GAAP) - (d) + (f) $
22,670 $
20,968 $
19,598 $
23,619 $
21,327
Total Capitalization (Non-GAAP) - (d) + (g) $
21,836 $
19,368 $
18,879 $
21,532 $
20,009
Average Total Capitalization (Non-GAAP) * - (h) $
20,602 $
19,124 $
20,206 $
20,771 $
19,365
ROCE (GAAP Net Income) - [(a) + (b)] / (h) 13.4% -4.8% -21.6% 14.7% 12.1%
Return on Equity (ROE) (GAAP)
---
ROE (GAAP Net Income) - (b) / (e) 17.1% -8.1% -29.5% 17.6% 15.3%
* Average for the current and immediately preceding year
EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense,
---
Net Debt and Total Capitalization
---
Calculation of Return on Capital Employed
---
(Unaudited; in millions, except ratio data)
The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-
GAAP) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation. EOG management uses this information for purposes of
comparing its financial performance with the financial performance of other companies in the industry.
2012 2011 2010 2009 2008
Return on Capital Employed (ROCE) (Non-GAAP)
---
(Calculated Using GAAP Net Income)
---
Net Interest Expense (GAAP) $
214 $
210 $
130 $
101 $
52
Tax Benefit Imputed (based on 35%) (75) (74) (46) (35) (18)
After-Tax Net Interest Expense (Non-GAAP) - (a) $
139 $
136 $
84 $
66 $
34
Net Income (Loss) (GAAP) - (b) $
570 $
1,091 $
161 $
547 $
2,437
Total Stockholders' Equity - (d) $
13,285 $
12,641 $
10,232 $
9,998 $
9,015
Average Total Stockholders' Equity * - (e) $
12,963 $
11,437 $
10,115 $
9,507 $
8,003
Current and Long-Term Debt (GAAP) - (f) $
6,312 $
5,009 $
5,223 $
2,797 $
1,897
Less: Cash (876) (616) (789) (686) (331)
Net Debt (Non-GAAP) - (g) $
5,436 $
4,393 $
4,434 $
2,111 $
1,566
Total Capitalization (GAAP) - (d) + (f) $
19,597 $
17,650 $
15,455 $
12,795 $
10,912
Total Capitalization (Non-GAAP) - (d) + (g) $
18,721 $
17,034 $
14,666 $
12,109 $
10,581
Average Total Capitalization (Non-GAAP) * - (h) $
17,878 $
15,850 $
13,388 $
11,345 $
9,351
ROCE (GAAP Net Income) - [(a) + (b)] / (h) 4.0% 7.7% 1.8% 5.4% 26.4%
Return on Equity (ROE) (GAAP)
---
ROE (GAAP Net Income) - (b) / (e) 4.4% 9.5% 1.6% 5.8% 30.5%
* Average for the current and immediately preceding year
EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense,
---
Net Debt and Total Capitalization
---
Calculation of Return on Capital Employed
---
(Unaudited; in millions, except ratio data)
The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-
GAAP) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation. EOG management uses this information for purposes of
comparing its financial performance with the financial performance of other companies in the industry.
2007 2006 2005 2004 2003
Return on Capital Employed (ROCE) (Non-GAAP)
---
(Calculated Using GAAP Net Income)
---
Net Interest Expense (GAAP) $
47 $
43 $
63 $
63 $
59
Tax Benefit Imputed (based on 35%) (16) (15) (22) (22) (21)
After-Tax Net Interest Expense (Non-GAAP) - (a) $
31 $
28 $
41 $
41 $
38
Net Income (Loss) (GAAP) - (b) $
1,090 $
1,300 $
1,260 $
625 $
430
Total Stockholders' Equity - (d) $
6,990 $
5,600 $
4,316 $
2,945 $
2,223
Average Total Stockholders' Equity * - (e) $
6,295 $
4,958 $
3,631 $
2,584 $
1,948
Current and Long-Term Debt (GAAP) - (f) $
1,185 $
733 $
985 $
1,078 $
1,109
Less: Cash (54) (218) (644) (21) (4)
Net Debt (Non-GAAP) - (g) $
1,131 $
515 $
341 $
1,057 $
1,105
Total Capitalization (GAAP) - (d) + (f) $
8,175 $
6,333 $
5,301 $
4,023 $
3,332
Total Capitalization (Non-GAAP) - (d) + (g) $
8,121 $
6,115 $
4,657 $
4,002 $
3,328
Average Total Capitalization (Non-GAAP) * - (h) $
7,118 $
5,386 $
4,330 $
3,665 $
3,068
ROCE (GAAP Net Income) - [(a) + (b)] / (h) 15.7% 24.7% 30.0% 18.2% 15.3%
Return on Equity (ROE) (GAAP)
---
ROE (GAAP Net Income) - (b) / (e) 17.3% 26.2% 34.7% 24.2% 22.1%
* Average for the current and immediately preceding year
EOG RESOURCES, INC.
Reconciliation of After-Tax Net Interest Expense,
---
Net Debt and Total Capitalization
---
Calculation of Return on Capital Employed
---
(Unaudited; in millions, except ratio data)
The following chart reconciles Net Interest Expense (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) (Non-
GAAP) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Net Interest Expense, Net Debt and Total Capitalization (Non-GAAP) in their ROCE calculation. EOG management uses this information for purposes of
comparing its financial performance with the financial performance of other companies in the industry.
2002 2001 2000 1999 1998
Return on Capital Employed (ROCE) (Non-GAAP)
---
(Calculated Using GAAP Net Income)
---
Net Interest Expense (GAAP) $
60 $
45 $
61 $
62
Tax Benefit Imputed (based on 35%) (21) (16) (21) (22)
After-Tax Net Interest Expense (Non-GAAP) - (a) $
39 $
29 $
40 $
40
Net Income (Loss) (GAAP) - (b) $
87 $
399 $
397 $
569
Total Stockholders' Equity - (d) $
1,672 $
1,643 $
1,381 $
1,130 $
1,280
Average Total Stockholders' Equity * - (e) $
1,658 $
1,512 $
1,256 $
1,205
Current and Long-Term Debt (GAAP) - (f) $
1,145 $
856 $
859 $
990 $
1,143
Less: Cash (10) (3) (20) (25) (6)
Net Debt (Non-GAAP) - (g) $
1,135 $
853 $
839 $
965 $
1,137
Total Capitalization (GAAP) - (d) + (f) $
2,817 $
2,499 $
2,240 $
2,120 $
2,423
Total Capitalization (Non-GAAP) - (d) + (g) $
2,807 $
2,496 $
2,220 $
2,095 $
2,417
Average Total Capitalization (Non-GAAP) * - (h) $
2,652 $
2,358 $
2,158 $
2,256
ROCE (GAAP Net Income) - [(a) + (b)] / (h) 4.8% 18.2% 20.2% 27.0%
Return on Equity (ROE) (GAAP)
---
ROE (GAAP Net Income) - (b) / (e) 5.2% 26.4% 31.6% 47.2%
* Average for the current and immediately preceding year
EOG RESOURCES, INC.
Cash Operating Expenses per Barrel of Oil Equivalent (Boe)
---
(Unaudited; in thousands, except per Boe amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
Cash Operating Expenses (GAAP)*
---
Lease and Well $348,883 $321,568 $1,032,455 $936,236
Transportation Costs 199,365 196,027 549,988 550,781
General and Administrative 135,758 111,284 364,210 310,065
Cash Operating Expenses 684,006 628,879 1,946,653 1,797,082
Less: Non-GAAP Adjustments
Adjusted Cash Operating Expenses (Non-GAAP) - (a) $684,006 $628,879 $1,946,653 $1,797,082
Volume - Thousand Barrels of Oil Equivalent - (b) 76,748 68,890 220,334 192,182
Adjusted Cash Operating Expenses Per Boe (Non-GAAP) - (a) / (b) $8.92 (c) $9.13 (d) $8.84 (e) $9.35 (f)
Adjusted Cash Operating Expenses Per Boe (Non-GAAP) -
Percentage Decrease
---
Three Months Ended September 30, 2019 compared to Three Months -2%
Ended September 30, 2018 - [(c) - (d)] / (d)
Nine Months Ended September 30, 2019 compared to Nine Months Ended -6%
September 30, 2018 - [(e) - (f)] / (f)
* Includes stock compensation expense and other non-cash items.
EOG RESOURCES, INC.
Cash Operating Expenses per Barrel of Oil Equivalent (Boe)
---
(Unaudited; in thousands, except per Boe amounts)
Year Ended
December 31,
2018 2017 2016 2015 2014
Cash Operating Expenses (GAAP)*
---
Lease and Well $1,282,678 $1,044,847 $927,452 $1,182,282 $1,416,413
Transportation Costs 746,876 740,352 764,106 849,319 972,176
General and Administrative 426,969 434,467 394,815 366,594 402,010
Cash Operating Expenses 2,456,523 2,219,666 2,086,373 2,398,195 2,790,599
Less: Legal Settlement - Early Leasehold Termination (10,202) (19,355)
Less: Voluntary Retirement Expense (42,054)
Less: Acquisition Costs - Yates Transaction (5,100)
Less: Joint Venture Transaction Costs (3,056)
Less: Joint Interest Billings Deemed Uncollectible (4,528)
Adjusted Cash Operating Expenses (Non-GAAP) - (a) $2,456,523 $2,201,880 $2,039,219 $2,378,840 $2,790,599
Volume - Thousand Barrels of Oil Equivalent - (b) 262,516 222,251 204,929 208,862 217,073
Adjusted Cash Operating Expenses Per Boe (Non-GAAP) - (a) / (b) $9.36 (c) $9.91 (d) $9.95 (e) $11.39 (f) $12.86 (g)
Adjusted Cash Operating Expenses Per Boe (Non-GAAP) -
Percentage Decrease
---
2018 compared to 2017 - [(c) - (d)] / (d) -6%
2018 compared to 2016 - [(c) - (e)] / (e) -6%
2018 compared to 2015 - [(c) - (f)] / (f) -18%
2018 compared to 2014 - [(c) - (g)] / (g) -27%
* Includes stock compensation expense and other non-cash items.
EOG RESOURCES, INC.
Cost per Barrel of Oil Equivalent (Boe)
---
(Unaudited; in thousands, except per Boe amounts)
Three Months Ended
Year-to-Date
March 31,
June 30,
September 30,
September 30,
2019 2019 2019 2019
Volume - Thousand Barrels of Oil Equivalent - (a) 69,623 73,964 76,748 220,334
Crude Oil and Condensate $2,200,403 $2,528,866 $2,418,989 $7,148,258
Natural Gas Liquids 218,638 186,374 164,736 569,748
Natural Gas 334,972 269,892 269,625 874,489
Total Wellhead Revenues - (b) $2,754,013 $2,985,132 $2,853,350 $8,592,495
Operating Costs
Lease and Well $336,291 $347,281 $348,883 $1,032,455
Transportation Costs 176,522 174,101 199,365 549,988
Gathering and Processing Costs 111,295 112,643 127,549 351,487
General and Administrative 106,672 121,780 135,758 364,210
Taxes Other Than Income 192,906 204,414 203,098 600,418
Interest Expense, Net 54,906 49,908 39,620 144,434
Total Cash Operating Cost (excluding DD&A and Total $978,592 $1,010,127 $1,054,273 $3,042,992
Exploration Costs) - (c)
Depreciation, Depletion and Amortization (DD&A) 879,595 957,304 953,597 2,790,496
Total Operating Cost (excluding Total Exploration Costs) - (d) $1,858,187 $1,967,431 $2,007,870 $5,833,488
Exploration Costs $36,324 $32,522 $34,540 $103,386
Dry Hole Costs 94 3,769 24,138 28,001
Impairments 72,356 112,130 105,275 289,761
Total Exploration Costs 108,774 148,421 163,953 421,148
Less: Certain Impairments (Non-GAAP) (23,745) (65,289) (27,215) (116,249)
Total Exploration Costs (Non-GAAP) $85,029 $83,132 $136,738 $304,899
Total Operating Cost (Non-GAAP) (including Total $1,943,216 $2,050,563 $2,144,608 $6,138,387
Exploration Costs) - (e)
Composite Average Wellhead Revenue per Boe - (b) / (a) $39.56 $40.36 $37.18 $39.00
Total Cash Operating Cost per Boe (excluding DD&A $14.06 $13.65 $13.75 $13.83
and Total Exploration Costs) - (c) / (a)
Composite Average Margin per Boe (excluding DD&A $25.50 $26.71 $23.43 $25.17
and Total Exploration Costs) - [(b) / (a) - (c) / (a)]
Total Operating Cost per Boe (excluding Total $26.69 $26.59 $26.18 $26.50
Exploration Costs) - (d) / (a)
Composite Average Margin per Boe (excluding Total $12.87 $13.77 $11.00 $12.50
Exploration Costs) - [(b) / (a) - (d) / (a)]
Total Operating Cost per Boe (Non-GAAP) (including $27.91 $27.72 $27.97 $27.88
Total Exploration Costs) - (e) / (a)
Composite Average Margin per Boe (Non-GAAP) $11.65 $12.64 $9.21 $11.12
(including Total Exploration Costs) - [(b) / (a) - (e) / (a)]
EOG RESOURCES, INC.
Cost per Barrel of Oil Equivalent (Boe)
---
(Unaudited; in thousands, except per Boe amounts)
Year Ended
December 31,
2018 2017 2016 2015 2014
Volume - Thousand Barrels of Oil Equivalent - (a) 262,516 222,251 204,929 208,862 217,073
Crude Oil and Condensate $9,517,440 $6,256,396 $4,317,341 $4,934,562 $9,742,480
Natural Gas Liquids 1,127,510 729,561 437,250 407,658 934,051
Natural Gas 1,301,537 921,934 742,152 1,061,038 1,916,386
Total Wellhead Revenues - (b) $11,946,487 $7,907,891 $5,496,743 $6,403,258 $12,592,917
Operating Costs
Lease and Well $1,282,678 $1,044,847 $927,452 $1,182,282 $1,416,413
Transportation Costs 746,876 740,352 764,106 849,319 972,176
Gathering and Processing Costs 436,973 148,775 122,901 146,156 145,800
General and Administrative 426,969 434,467 394,815 366,594 402,010
Less: Voluntary Retirement Expense - (42,054)
Less: Acquisition Costs - (5,100)
Less: Legal Settlement - Early Leasehold Termination - (10,202) (19,355)
Less: Joint Venture Transaction Costs - (3,056)
Less: Joint Interest Billings Deemed Uncollectible - (4,528)
General and Administrative (Non-GAAP) 426,969 416,681 347,661 347,239 402,010
Taxes Other Than Income 772,481 544,662 349,710 421,744 757,564
Interest Expense, Net 245,052 274,372 281,681 237,393 201,458
Total Cash Operating Cost (Non-GAAP) (excluding DD&A $3,911,029 $3,169,689 $2,793,511 $3,184,133 $3,895,421
and Total Exploration Costs) - (c)
Depreciation, Depletion and Amortization (DD&A) 3,435,408 3,409,387 3,553,417 3,313,644 3,997,041
Total Operating Cost (Non-GAAP) (excluding Total $7,346,437 $6,579,076 $6,346,928 $6,497,777 $7,892,462
Exploration Costs) - (d)
Exploration Costs $148,999 $145,342 $124,953 $149,494 $184,388
Dry Hole Costs 5,405 4,609 10,657 14,746 48,490
Impairments 347,021 479,240 620,267 6,613,546 743,575
Total Exploration Costs 501,425 629,191 755,877 6,777,786 976,453
Less: Certain Impairments (Non-GAAP) (152,671) (261,452) (320,617) (6,307,593) (824,312)
Total Exploration Costs (Non-GAAP) $348,754 $367,739 $435,260 $470,193 $152,141
Total Operating Cost (Non-GAAP) (including Total $7,695,191 $6,946,815 $6,782,188 $6,967,970 $8,044,603
Exploration Costs) - (e)
===
Composite Average Wellhead Revenue per Boe - (b) / (a) $45.51 $35.58 $26.82 $30.66 $58.01
===
Total Cash Operating Cost per Boe (Non-GAAP) $14.90 $14.25 $13.64 $15.25 $17.95
(excluding DD&A and Total Exploration Costs) - (c) / (a)
===
Composite Average Margin per Boe (Non-GAAP) (excluding $30.61 $21.33 $13.18 $15.41 $40.06
DD&A and Total Exploration Costs) - [(b) / (a) - (c) / (a)]
===
Total Operating Cost per Boe (Non-GAAP) (excluding $27.99 $29.59 $30.98 $31.11 $36.38
Total Exploration Costs) - (d) / (a)
===
Composite Average Margin per Boe (Non-GAAP) $17.52 $5.99 $(4.16) $(0.45) $21.63
(excluding Total Exploration Costs) - [(b) / (a) - (d) / (a)]
===
Total Operating Cost per Boe (Non-GAAP) (including $29.32 $31.24 $33.10 $33.36 $37.08
Total Exploration Costs) - (e) / (a)
===
Composite Average Margin per Boe (Non-GAAP) $16.19 $4.34 $(6.28) $(2.70) $20.93
(including Total Exploration Costs) - [(b) / (a) - (e) / (a)]
===
EOG RESOURCES, INC.
Fourth Quarter and Full Year 2019 Forecast and Benchmark Commodity Pricing
---
(a) Fourth Quarter and Full Year 2019 Forecast
The forecast items for the fourth quarter and full year 2019 set forth below for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of the accompanying press release. EOG undertakes no obligation, other than as required by applicable
law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. This forecast, which should be read in conjunction with the accompanying press release and EOG's related Current Report on
Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.
(b) Capital Expenditures
The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Exploration Costs, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs and
any Non-Cash Exchanges.
(c) Benchmark Commodity Pricing
EOG bases United States and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.
EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.
Estimated Ranges
(Unaudited)
4Q 2019
Full Year 2019
Daily Sales Volumes
Crude Oil and Condensate Volumes (MBbld)
United States 459.5 469.5 453.3 455.8
Trinidad 0.4 0.6 0.6 0.7
Other International 0.0 0.2 0.1 0.1
Total 459.9 470.3 454.0 456.6
Natural Gas Liquids Volumes (MBbld)
Total 135.0 145.0 131.8 134.4
Natural Gas Volumes (MMcfd)
United States 1,085 1,145 1,054 1,069
Trinidad 225 255 256 264
Other International 34 38 36 37
Total 1,344 1,438 1,346 1,370
Crude Oil Equivalent Volumes (MBoed)
United States 775.3 805.3 760.7 768.3
Trinidad 37.9 43.1 43.3 44.6
Other International 5.7 6.5 6.1 6.3
Total 818.9 854.9 810.1 819.2
Capital Expenditures ($MM) $
1,400 $
1,600 $
6,200 $
6,400
Estimated Ranges
(Unaudited)
4Q 2019
Full Year 2019
---
Operating Costs
Unit Costs ($/Boe)
Lease and Well $
4.50 $
4.80 $
4.65 $
4.75
Transportation Costs $
2.55 $
3.05 $
2.50 $
2.60
Depreciation, Depletion and Amortization $
12.45 $
12.85 $
12.60 $
12.70
Expenses ($MM)
Exploration and Dry Hole $
35 $
45 $
165 $
175
Impairment $
95 $
105 $
270 $
280
General and Administrative $
110 $
120 $
470 $
490
Gathering and Processing $
130 $
140 $
480 $
490
Capitalized Interest $
9 $
11 $
37 $
39
Net Interest $
39 $
41 $
183 $
185
Taxes Other Than Income (% of Wellhead Revenue) 6.9% 7.3% 6.8% 7.2%
Income Taxes
Effective Rate 21% 26% 21% 26%
Current Tax (Benefit) / Expense ($MM) $
(40) $
0 $
(110) $
(70)
Pricing - (Refer toBenchmark Commodity Pricingin text)
Crude Oil and Condensate ($/Bbl)
Differentials
United States - above (below) WTI $
(1.85) $
0.15 $
0.15 $
0.65
Trinidad - above (below) WTI $
(11.00) $
(9.00) $
(10.00) $
(9.00)
Other International - above (below) WTI $
(1.00) $
3.00 $
0.69 $
2.00
Natural Gas Liquids
Realizations as % of WTI 20% 28% 26% 28%
Natural Gas ($/Mcf)
Differentials
United States - above (below) NYMEX Henry Hub $
(0.70) $
(0.30) $
(0.50) $
(0.40)
Realizations
Trinidad $
2.50 $
2.90 $
2.65 $
2.75
Other International $
3.80 $
4.20 $
4.10 $
4.30
Definitions
---
$/Bbl U.S. Dollars per barrel
$/Boe U.S. Dollars per barrel of oil
equivalent
$/Mcf U.S. Dollars per thousand cubic
feet
$MM U.S. Dollars in millions
MBbld Thousand barrels per day
Mboed Thousand barrels of oil
equivalent per day
MMcfd Million cubic feet per day
NYMEX U.S. New York Mercantile
Exchange
WTI West Texas Intermediate
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SOURCE EOG Resources, Inc.
