May 2, 2024 SOURCE: PR NewsWire
EOG Resources Reports First Quarter 2024 Results
HOUSTON, May 2, 2024 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported first quarter 2024 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors.
Key Financial Results
In millions of USD, except per-share, per-Boe and ratio data
GAAP 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023
6,123 6,357 6,212 5,573 6,044
Total Revenue
Net Income 1,789 1,988 2,030 1,553 2,023
Net Income Per Share 3.10 3.42 3.48 2.66 3.45
Net Cash Provided by Operating Activities 2,903 3,104 2,704 2,277 3,255
Total Expenditures 1,952 1,634 1,803 1,664 1,717
Current and Long-Term Debt 3,791 3,799 3,806 3,814 3,820
Cash and Cash Equivalents 5,292 5,278 5,326 4,764 5,018
Debt-to-Total Capitalization 11.7 % 11.9 % 12.1 % 12.7 % 13.1 %
Cash Operating Costs ($/Boe) 10.37 10.52 10.19 10.03 10.59
Non - GAAP
Adjusted Net Income 1,626 1,783 2,007 1,457 1,578
Adjusted Net Income Per Share 2.82 3.07 3.44 2.49 2.69
CFO before Changes in Working Capital 2,928 2,989 3,038 2,563 2,559
Capital Expenditures 1,703 1,512 1,519 1,521 1,489
Free Cash Flow 1,225 1,477 1,519 1,042 1,070
Net Debt (1,501) (1,479) (1,520) (950) (1,198)
Net Debt-to-Total Capitalization (5.5 %) (5.6 %) (5.8 %) (3.8 %) (4.9 %)
First Quarter Highlights
-- Earned adjusted net income of $1.6 billion, or $2.82 per share
-- Generated $1.2 billion of free cash flow
-- Declared regular quarterly dividend of $0.91 per share
-- Paid $525 million in regular dividends and repurchased $750 million of
shares during the first quarter
-- Volumes and total per-unit cash operating costs better than guidance
midpoints
First Quarter 2024 Highlights and Cash Return
Volumes and Capital Expenditures
Wellhead Volumes 1Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023
Guidance
Midpoint
Crude Oil and Condensate (MBod) 487.4 486.3 485.2 483.3 476.6 457.7
Natural Gas Liquids (MBbld) 231.7 228.0 235.8 231.1 215.7 212.2
Natural Gas (MMcfd) 1,858 1,835 1,831 1,704 1,668 1,639
Total
Crude Oil Equivalent (MBoed) 1,028.8 1,020.1 1,026.2 998.5 970.3 943.0
Capital Expenditures ($MM) 1,703 1,700 1,512 1,519 1,521 1,489
From Ezra Yacob, Chairman and Chief Executive Officer
"EOG is off to a great start this year, delivering strong first quarter results. Production exceeded targets and total per-unit cash operating costs were lower than planned. Consistent strong execution quarter after quarter reflects the quality and depth of our multi-basin portfolio as well as the efforts of our employees across our operating areas.
"Our differentiated business model, focused on exploration and innovation, continues to strengthen our resource base. We believe our most recent exploration success, the Utica, will be competitive with the premier unconventional plays across North America. Well results continue to demonstrate consistent performance with significant oil contribution across multiple areas of our acreage position. Combined with emerging operating efficiencies, we are confident that the Utica will further improve our low-cost, high quality premium portfolio.
"EOG's operational execution continues to translate into strong returns and cash flow generation. Strong free cash flow in the quarter allowed for significant capital return to shareholders through both our regular dividend and share repurchases, all while maintaining our industry-leading balance sheet. EOG is well positioned to leverage its core competencies to drive continued improvement in its business and create significant long-term value for our shareholders."
Regular Dividend and First Quarter Share Repurchases
The Board of Directors today declared a dividend of $0.91 per share on EOG's common stock. The dividend will be payable July 31, 2024, to stockholders of record as of July 17, 2024. The indicated annual rate is $3.64 per share.
During the first quarter, the company repurchased 6.4 million shares for $750 million under its share repurchase authorization, at an average purchase price of approximately $118 per share. EOG has $3.3 billion remaining on its current share buyback authorization.
First Quarter 2024 Financial Performance
Prices
-- Crude oil and natural gas prices decreased in 1Q compared with 4Q
Volumes
-- Total 1Q oil production of 487,400 Bopd was above the midpoint of the
guidance range and up less than 1% from 4Q
-- NGL production was above the midpoint of the guidance range but down 2%
from 4Q
-- Natural gas production was above the midpoint of the guidance range and
up 1% from 4Q
-- Total company equivalent daily production increased less than 1% from 4Q
Per-Unit Costs
-- LOE and DD&A costs increased in 1Q compared with 4Q, while GP&T and G&A
expenses decreased
Hedges
-- Mark-to-market hedge gains decreased, lowering GAAP earnings per share
in 1Q compared with 4Q
-- Cash received to settle hedges increased adjusted non-GAAP earnings per
share
Free Cash Flow
-- Cash flow from operations before changes in working capital was $2.9
billion
-- EOG incurred $1.7 billion of capital expenditures
-- Free cash flow was $1.2 billion
Cash Return and Working Capital
-- Paid $525 million in regular dividends
-- Repurchased $750 million of stock
-- Changes in working capital and other items added approximately $100
million to the cash balance
First Quarter 2024 Operating Performance
Lease and Well
-- QoQ: Increased primarily due to workover and water handling expenses
-- Guidance Midpoint: Relatively flat
Gathering, Processing and Transportation Costs
-- QoQ: Decreased primarily due to lower rates
-- Guidance Midpoint: Lower primarily due to optimization across processing
capacity and lower compression expense due to lower fuel cost
General and Administrative
-- QoQ: Decreased due to lower employee-related expenses and professional
fees
-- Guidance Midpoint: Lower due to lower employee-related expenses
Depreciation, Depletion and Amortization
-- QoQ: Increased primarily due to a one-time adjustment related to natural
gas production used by EOG-owned gathering systems
-- Guidance Midpoint: Higher primarily due to well mix
First Quarter 2024 Results vs Guidance
(Unaudited)
See "Endnotes" below for related discussion and definitions.
1Q 2024
Guidance
1Q 2024 Variance 4Q 2023 3Q 2023 2Q 2023 1Q 2023
Midpoint
Crude Oil and Condensate Volumes (MBod)
United States 486.8 486.0 0.8 484.6 482.8 476.0 457.1
Trinidad 0.6 0.3 0.3 0.6 0.5 0.6 0.6
Total 487.4 486.3 1.1 485.2 483.3 476.6 457.7
Natural Gas Liquids Volumes (MBbld)
Total 231.7 228.0 3.7 235.8 231.1 215.7 212.2
Natural Gas Volumes (MMcfd)
United States 1,658 1,650 8 1,653 1,562 1,513 1,475
Trinidad 200 185 15 178 142 155 164
Total 1,858 1,835 23 1,831 1,704 1,668 1,639
Total Crude Oil Equivalent Volumes (MBoed) 1,028.8 1,020.1 8.7 1,026.2 998.5 970.3 943.0
Total MMBoe 93.6 92.8 0.8 94.4 91.9 88.3 84.9
Benchmark Price
Oil (WTI) ($/Bbl) 76.97 78.33 82.18 73.75 76.11
Natural Gas (HH) ($/Mcf) 2.24 2.87 2.55 2.09 3.43
Crude Oil and Condensate -above (below) WTI
(3)
($/Bbl)
United States 1.49 1.50 (0.01) 2.28 1.43 1.23 1.16
Trinidad (9.47) (9.35) (0.12) (9.12) (10.80) (8.87) (7.13)
Natural Gas Liquids - Realizations as % of WTI
Total 31.6 % 32.0 % -0.4 % 28.5 % 28.7 % 28.3 % 33.7 %
Natural Gas -above (below) NYMEX Henry Hub
4
($/Mcf)
United States (0.14) (0.10) (0.04) (0.15) 0.04 (0.02) 0.04
Natural Gas Realizations ($/Mcf)
Trinidad 3.54 3.45 0.09 3.81 3.41 3.45 3.87
Total Expenditures (GAAP) ($MM) 1,952 1,634 1,803 1,664 1,717
Capital Expenditures (non-GAAP) ($MM) 1,703 1,700 3 1,512 1,519 1,521 1,489
Operating Unit Costs ($/Boe)
Lease and Well 4.23 4.20 0.03 4.00 4.02 3.94 4.23
Gathering, Processing and Transportation Costs(2) 4.41 4.60 (0.19) 4.49 4.42 4.48 4.65
General and Administrative 1.73 1.85 (0.12) 2.03 1.75 1.61 1.71
Cash Operating Costs 10.37 10.65 (0.28) 10.52 10.19 10.03 10.59
Depreciation, Depletion and Amortization 11.47 11.40 0.07 9.85 9.78 9.81 9.40
Expenses ($MM)
Exploration and Dry Hole 46 50 (4) 41 43 47 51
Impairment (GAAP) 19 79 54 35 34
Impairment (excluding certain impairments (non-GAAP))
5 17 70 (53) 60 31 35 34
Capitalized Interest 10 9 1 9 8 8 8
Net Interest 33 35 (2) 35 36 35 42
TOTI (% of Wellhead Revenue) 7.7 8.0 % (0.3 %) 6.6 % 7.4 % 7.8 % 7.8 %
Income Taxes
Effective Rate 22.2 % 22.5 % (0.3 %) 21.6 % 21.1 % 21.9 % 22.0 %
Current Tax (Benefit) / Expense ($MM) 312 320 (8) 352 486 241 338
Second Quarter and Full-Year 2024 Guidance6
(Unaudited)
See "Endnotes" below for related discussion and definitions. 2Q 2024 2Q 2024 FY 2024 FY 2024 2023 2022 2021
Guidance Range Midpoint Guidance Range Midpoint Actual Actual Actual
Crude Oil and Condensate Volumes (MBod)
United States 485.0 490.0 487.5 485.0 490.0 487.5 475.2 460.7 443.4
Trinidad 0.3 0.7 0.5 0.5 1.5 1.0 0.6 0.6 1.5
Other International 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1
Total 485.3 490.7 488.0 485.5 491.5 488.5 475.8 461.3 445.0
Natural Gas Liquids Volumes (MBbld)
Total 227.0 237.0 232.0 220.0 250.0 235.0 223.8 197.7 144.5
Natural Gas Volumes (MMcfd)
United States 1,630 1,690 1,660 1,640 1,770 1,705 1,551 1,315 1,210
Trinidad 190 210 200 200 230 215 160 180 217
Other International 0 0 0 0 0 0 0 0 9
Total 1,820 1,900 1,860 1,840 2,000 1,920 1,711 1,495 1,436
Crude Oil Equivalent Volumes (MBoed)
United States 983.7 1,008.7 996.2 978.3 1,035.0 1,006.7 957.5 877.5 789.6
Trinidad 32.0 35.7 33.9 33.8 39.8 36.8 27.3 30.7 37.7
Other International 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.6
Total 1,015.7 1,044.4 1,030.1 1,012.1 1,074.8 1,043.5 984.8 908.2 828.9
Benchmark Price
Oil (WTI) ($/Bbl) 77.61 94.23 67.96
Natural Gas (HH) ($/Mcf) 2.74 6.64 3.85
Crude Oil and Condensate - above (below) WTI
(3)
($/Bbl)
United States 1.00 2.50 1.75 0.40 2.40 1.40 1.57 2.99 0.58
Trinidad (11.20) (9.70) (10.45) (11.40) (9.40) (10.40) (9.03) (8.07) (11.70)
Natural Gas Liquids - Realizations as % of WTI
Total 24.0 % 34.0 % 29.0 % 26.0 % 36.0 % 31.0 % 29.7 % 39.0 % 50.5 %
Natural Gas - above (below) NYMEX Henry Hub
4
($/Mcf)
United States (0.80) 0.00 (0.40) (1.50) 0.80 (0.35) (0.04) 0.63 1.03
Natural Gas Realizations
7
($/Mcf)
Trinidad 3.00 3.70 3.35 3.00 4.00 3.50 3.65 4.43 3.40
Total Expenditures (GAAP) ($MM) 6,818 5,610 4,255
Capital Expenditures
8
(non-GAAP) ($MM) 1,700 1,800 1,750 6,000 6,400 6,200 6,041 4,607 3,755
Operating Unit Costs ($/Boe)
Lease and Well 4.00 4.45 4.23 3.90 4.60 4.25 4.05 4.02 3.75
Gathering, Processing and Transportation Costs(2) 4.25 4.75 4.50 4.20 4.90 4.55 4.50 4.78 4.70
General and Administrative (GAAP) 1.60 1.90 1.75 1.70 1.95 1.83 1.78 1.72 1.69
General and Administrative (non-GAAP)
9 1.78 1.67 1.69
Cash Operating Costs (GAAP) 9.85 11.10 10.48 9.80 11.45 10.63 10.33 10.52 10.14
Cash Operating Costs (non-GAAP) 10.33 10.47 10.14
Depreciation, Depletion and Amortization 10.00 11.00 10.50 10.00 11.00 10.50 9.72 10.69 12.07
Expenses ($MM)
Exploration and Dry Hole 30 70 50 175 225 200 182 204 225
Impairment (GAAP) 202 382 376
Impairment (excluding certain impairments (non-GAAP))
5 30 110 70 160 240 200 160 269 361
Capitalized Interest 9 13 11 42 47 45 33 36 33
Net Interest 31 35 33 125 135 130 148 179 178
TOTI (% of Wellhead Revenue) (GAAP) 7.0 % 9.0 % 8.0 % 7.0 % 9.0 % 8.0 % 7.4 % 7.0 % 6.8 %
TOTI (% of Wellhead Revenue) (non-GAAP)
9 7.4 % 7.5 % 6.8 %
Income Taxes
Effective Rate 19.0 % 24.0 % 21.5 % 19.0 % 24.0 % 21.5 % 21.6 % 21.7 % 21.4 %
Current Tax Expense ($MM) 390 490 440 1,340 1,640 1,490 1,415 2,208 1,393
First Quarter 2024 Results Webcast
Friday, May 3, 2024, 9:00 a.m. Central time (10:00 a.m. Eastern time) Webcast will be available on EOG's website for one year. http://investors.eogresources.com/Investors
About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad. To learn more visit www.eogresources.com.
Investor Contacts
Pearce Hammond 713-571-4684
Neel Panchal 713-571-4884
Shelby O'Connor 713-571-4560
Media Contact
Kimberly Ehmer 713-571-4676
Endnotes
1)
Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions (for GAAP earnings per share only), other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.
2)
Effective January 1, 2024, EOG combined Transportation Costs and Gathering and Processing Costs into one line item titled Gathering, Processing and Transportation Costs. This presentation has been conformed for all periods presented and had no impact on previously reported Net Income.
3)
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.
4)
EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the NYMEX Last Day Settle price for each of the applicable months.
5) In general, EOG excludes impairments which are (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets). EOG believes excluding these impairments from total impairment
costs is appropriate and provides useful information to investors, as such impairments were caused by factors outside of EOG's control (versus, for example, impairments that are due to EOG's proved oil and gas properties not being as productive as it originally estimated).
6) The forecast items for the second quarter and full year 2024 set forth above for EOG are based on currently available information and expectations as of the date of this press release. EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent
events, anticipated or unanticipated circumstances or otherwise. This forecast, which should be read in conjunction with this press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.
7)
The full-year 2022 realized natural gas price for Trinidad includes a one-time pricing adjustment of $0.76/Mcf for prior-period production following a contract amendment with the National Gas Company of Trinidad and Tobago Limited (NGC).
8) The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs, Non-Cash Exchanges and Transactions and exploration costs incurred as operating
expenses.
9)
2022 TOTI (% of Wellhead Revenue) (non-GAAP) and General and Administrative Costs (non-GAAP) exclude a state severance tax refund and related consulting fees, respectively, as reflected in the accompanying Adjusted Net Income (Loss) reconciliation schedule.
Glossary
Acq
Acquisitions
ATROR
After-tax rate of return
Bbl
Barrel
Bn
Billion
Boe
Barrels of oil equivalent
Bopd
Barrels of oil per day
CAGR
Compound annual growth rate
Capex
Capital expenditures
CFO Cash flow provided by operating activities before changes in
working capital
CO2e
Carbon dioxide equivalent
DD&A
Depreciation, Depletion and Amortization
Disc
Discoveries
Divest
Divestitures
EPS
Earnings per share
Ext
Extensions
G&A
General and administrative expense
GHG
Greenhouse gas
GP&T
Gathering, processing & transportation expense
HH
Henry Hub
LOE
Lease operating expense, or lease and well expense
MBbld
Thousand barrels of liquids per day
MBod
Thousand barrels of oil per day
MBoe
Thousand barrels of oil equivalent
MBoed
Thousand barrels of oil equivalent per day
Mcf
Thousand cubic feet of natural gas
MMBoe
Million barrels of oil equivalent
MMcfd
Million cubic feet of natural gas per day
NGLs
Natural gas liquids
NYMEX
U.S. New York Mercantile Exchange
OTP
Other than price
QoQ
Quarter over quarter
TOTI
Taxes other than income
USD
United States dollar
WTI
West Texas Intermediate
YoY
Year over year
$MM
Million United States dollars
$/Bbl
U.S. Dollars per barrel
$/Boe
U.S. Dollars per barrel of oil equivalent
$/Mcf
U.S. Dollars per thousand cubic feet
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, operating costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "ambition," "initiative," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future financial or operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, pay and/or increase regular and/or special dividends or repurchase shares are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:
-- the timing, extent and duration of changes in prices for, supplies of,
and demand for, crude oil and condensate, natural gas liquids (NGLs),
natural gas and related commodities;
-- the extent to which EOG is successful in its efforts to acquire or
discover additional reserves;
-- the extent to which EOG is successful in its efforts to (i) economically
develop its acreage in, (ii) produce reserves and achieve anticipated
production levels and rates of return from, (iii) decrease or otherwise
control its drilling, completion and operating costs and capital
expenditures related to, and (iv) maximize reserve recovery from, its
existing and future crude oil and natural gas exploration and
development projects and associated potential and existing drilling
locations;
-- the success of EOG's cost-mitigation initiatives and actions in
offsetting the impact of inflationary pressures on EOG's operating costs
and capital expenditures;
-- the extent to which EOG is successful in its efforts to market its
production of crude oil and condensate, NGLs and natural gas;
-- security threats, including cybersecurity threats and disruptions to our
business and operations from breaches of our information technology
systems, physical breaches of our facilities and other infrastructure or
breaches of the information technology systems, facilities and
infrastructure of third parties with which we transact business, and
enhanced regulatory focus on prevention and disclosure requirements
relating to cyber incidents;
-- the availability, proximity and capacity of, and costs associated with,
appropriate gathering, processing, compression, storage, transportation,
refining, liquefaction and export facilities;
-- the availability, cost, terms and timing of issuance or execution of
mineral licenses and leases and governmental and other permits and
rights-of- way, and EOG's ability to retain mineral licenses and leases;
-- the impact of, and changes in, government policies, laws and
regulations, including climate change-related regulations, policies and
initiatives (for example, with respect to air emissions); tax laws and
regulations (including, but not limited to, carbon tax and
emissions-related legislation); environmental, health and safety laws
and regulations relating to disposal of produced water, drilling fluids
and other wastes, hydraulic fracturing and access to and use of water;
laws and regulations affecting the leasing of acreage and permitting for
oil and gas drilling and the calculation of royalty payments in respect
of oil and gas production; laws and regulations imposing additional
permitting and disclosure requirements, additional operating
restrictions and conditions or restrictions on drilling and completion
operations and on the transportation of crude oil, NGLs and natural gas;
laws and regulations with respect to financial derivatives and hedging
activities; and laws and regulations with respect to the import and
export of crude oil, natural gas and related commodities;
-- the impact of climate change-related policies and initiatives at the
corporate and/or investor community levels and other potential
developments related to climate change, such as (but not limited to)
changes in consumer and industrial/commercial behavior, preferences and
attitudes with respect to the generation and consumption of energy;
increased availability of, and increased consumer and
industrial/commercial demand for, competing energy sources (including
alternative energy sources); technological advances with respect to the
generation, transmission, storage and consumption of energy; alternative
fuel requirements; energy conservation measures and emissions-related
legislation; decreased demand for, and availability of, services and
facilities related to the exploration for, and production of, crude oil,
NGLs and natural gas; and negative perceptions of the oil and gas
industry and, in turn, reputational risks associated with the
exploration for, and production of, crude oil, NGLs and natural gas;
-- continuing political and social concerns relating to climate change and
the greater potential for shareholder activism, governmental inquiries
and enforcement actions and litigation and the resulting expenses and
potential disruption to EOG's day-to-day operations;
-- the extent to which EOG is able to successfully and economically
develop, implement and carry out its emissions and other ESG-related
initiatives and achieve its related targets, ambitions and initiatives;
-- EOG's ability to effectively integrate acquired crude oil and natural
gas properties into its operations, identify and resolve existing and
potential issues with respect to such properties and accurately estimate
reserves, production, drilling, completion and operating costs and
capital expenditures with respect to such properties;
-- the extent to which EOG's third-party-operated crude oil and natural gas
properties are operated successfully, economically and in compliance
with applicable laws and regulations;
-- competition in the oil and gas exploration and production industry for
the acquisition of licenses, leases and properties;
-- the availability and cost of, and competition in the oil and gas
exploration and production industry for, employees, labor and other
personnel, facilities, equipment, materials (such as water, sand, fuel
and tubulars) and services;
-- the accuracy of reserve estimates, which by their nature involve the
exercise of professional judgment and may therefore be imprecise;
-- weather, including its impact on crude oil and natural gas demand, and
weather-related delays in drilling and in the installation and operation
(by EOG or third parties) of production, gathering, processing,
refining, liquefaction, compression, storage, transportation, and export
facilities;
-- the ability of EOG's customers and other contractual counterparties to
satisfy their obligations to EOG and, related thereto, to access the
credit and capital markets to obtain financing needed to satisfy their
obligations to EOG;
-- EOG's ability to access the commercial paper market and other credit and
capital markets to obtain financing on terms it deems acceptable, if at
all, and to otherwise satisfy its capital expenditure requirements;
-- the extent to which EOG is successful in its completion of planned asset
dispositions;
-- the extent and effect of any hedging activities engaged in by EOG;
-- the timing and extent of changes in foreign currency exchange rates,
interest rates, inflation rates, global and domestic financial market
conditions and global and domestic general economic conditions;
-- the duration and economic and financial impact of epidemics, pandemics
or other public health issues;
-- geopolitical factors and political conditions and developments around
the world (such as the imposition of tariffs or trade or other economic
sanctions, political instability and armed conflicts), including in the
areas in which EOG operates;
-- the extent to which EOG incurs uninsured losses and liabilities or
losses and liabilities in excess of its insurance coverage;
-- acts of war and terrorism and responses to these acts; and
-- the other factors described under ITEM 1A, Risk Factors of EOG's Annual
Report on Form 10-K for the fiscal year ended December 31, 2023 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.
Historical Non-GAAP Financial Measures:
Reconciliation schedules and definitions for the historical non-GAAP financial measures included or referenced herein as well as related discussion can be found on the EOG website at www.eogresources.com.
Cautionary Notice Regarding Forward-Looking Non-GAAP Financial Measures:
In addition, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow, cash flow provided by operating activities before changes in working capital and return on capital employed, and certain related estimates regarding future performance, commodity prices and operating and financial results. Because we provide these measures on a forward-looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future changes in working capital and future impairments. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures without unreasonable efforts. Management believes these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates.
Oil and Gas Reserves:
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, 2023 (and any updates to such disclosure set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K), 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.
Income Statements
In millions of USD, except share data (in millions) and per share data (Unaudited)
2023 2024
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
Operating Revenues and Other
Crude Oil and Condensate 3,182 3,252 3,717 3,597 13,748 3,480 3,480
Natural Gas Liquids 490 409 501 484 1,884 513 513
Natural Gas 517 334 417 476 1,744 382 382
Gains on Mark-to-Market Financial 376 101 43 298 818 237 237
Commodity and Other Derivative
Contracts, Net
Gathering, Processing and Marketing 1,390 1,465 1,478 1,473 5,806 1,459 1,459
Gains (Losses) on Asset Dispositions, 69 (9) 35 95 26 26
Net
Other, Net 20 21 21 29 91 26 26
Total 6,044 5,573 6,212 6,357 24,186 6,123 6,123
Operating Expenses
Lease and Well 359 348 369 378 1,454 396 396
Gathering, Processing and 395 396 406 423 1,620 413 413
Transportation Costs (A)
Exploration Costs 50 47 43 41 181 45 45
Dry Hole Costs 1 1 1 1
Impairments 34 35 54 79 202 19 19
Marketing Costs 1,361 1,456 1,383 1,509 5,709 1,404 1,404
Depreciation, Depletion and 798 866 898 930 3,492 1,074 1,074
Amortization
General and Administrative 145 142 161 192 640 162 162
Taxes Other Than Income 329 313 341 301 1,284 338 338
Total 3,472 3,603 3,655 3,853 14,583 3,852 3,852
Operating Income 2,572 1,970 2,557 2,504 9,603 2,271 2,271
Other Income, Net 65 51 52 66 234 62 62
Income Before Interest Expense and 2,637 2,021 2,609 2,570 9,837 2,333 2,333
Income Taxes
Interest Expense, Net 42 35 36 35 148 33 33
Income Before Income Taxes 2,595 1,986 2,573 2,535 9,689 2,300 2,300
Income Tax Provision 572 433 543 547 2,095 511 511
Net Income 2,023 1,553 2,030 1,988 7,594 1,789 1,789
Dividends Declared per Common Share 1.8250 0.8250 0.8250 2.4100 5.8850 0.9100 0.9100
Net Income Per Share
Basic 3.46 2.68 3.51 3.43 13.07 3.11 3.11
Diluted 3.45 2.66 3.48 3.42 13.00 3.10 3.10
Average Number of Common Shares
Basic 584 580 579 579 581 575 575
Diluted 587 584 583 581 584 577 577
(A) Effective January 1, 2024, EOG combined Transportation Costs and Gathering and Processing Costs into one line item titled Gathering, Processing and Transportation Costs. This presentation has been conformed for all periods
presented and had no impact on previously reported Net Income.
Wellhead Volumes and Prices
(Unaudited)
2023 2024
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
Crude Oil and Condensate Volumes (MBbld) (A)
United States 457.1 476.0 482.8 484.6 475.2 486.8 486.8
Trinidad 0.6 0.6 0.5 0.6 0.6 0.6 0.6
Total 457.7 476.6 483.3 485.2 475.8 487.4 487.4
Average Crude Oil and Condensate Prices
($/Bbl) (B)
United States $77.27 $74.98 $83.61 $80.61 $79.18 $78.46 $78.46
Trinidad 68.98 64.88 71.38 69.21 65.58 67.50 67.50
Composite 77.26 74.97 83.60 80.60 79.17 78.45 78.45
Natural Gas Liquids Volumes (MBbld) (A)
United States 212.2 215.7 231.1 235.8 223.8 231.7 231.7
Total 212.2 215.7 231.1 235.8 223.8 231.7 231.7
Average Natural Gas Liquids Prices ($/Bbl) (B)
United States $25.67 $20.85 $23.56 $22.29 $23.07 $24.32 $24.32
Composite 25.67 20.85 23.56 22.29 23.07 24.32 24.32
Natural Gas Volumes (MMcfd) (A)
United States 1,475 1,513 1,562 1,653 1,551 1,658 1,658
Trinidad 164 155 142 178 160 200 200
Total 1,639 1,668 1,704 1,831 1,711 1,858 1,858
Average Natural Gas Prices ($/Mcf) (B)
United States $3.47 $2.07 $2.59 $2.72 $2.70 $2.10 $2.10
Trinidad 3.87 3.45 3.41 3.81 3.65 3.54 3.54
Composite 3.51 2.20 2.66 2.82 2.79 2.26 2.26
Crude Oil Equivalent Volumes (MBoed) (C)
United States 915.0 943.8 974.2 995.8 957.5 994.7 994.7
Trinidad 28.0 26.5 24.3 30.4 27.3 34.1 34.1
Total 943.0 970.3 998.5 1,026.2 984.8 1,028.8 1,028.8
Total MMBoe (C) 84.9 88.3 91.9 94.4 359.4 93.6 93.6
(A)
Thousand barrels per day or million cubic feet per day, as applicable.
(B)
Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024).
(C) Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, NGLs and natural gas. Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas. MMBoe is calculated by multiplying the
MBoed amount by the number of days in the period and then dividing that amount by one thousand.
Balance Sheets
In millions of USD (Unaudited)
2023 2024
MAR JUN SEP DEC MAR JUN SEP DEC
Current Assets
Cash and Cash Equivalents 5,018 4,764 5,326 5,278 5,292
Accounts Receivable, Net 2,455 2,263 2,927 2,716 2,688
Inventories 1,131 1,355 1,379 1,275 1,154
Assets from Price Risk Management Activities - 106 110
Income Taxes Receivable - 1
Other 580 523 626 560 684
Total 9,184 8,906 10,258 9,935 9,928
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method) 67,907 69,178 70,730 72,090 73,356
Other Property, Plant and Equipment 5,101 5,282 5,355 5,497 5,768
Total Property, Plant and Equipment 73,008 74,460 76,085 77,587 79,124
Less: Accumulated Depreciation, Depletion and (42,785) (43,550) (44,362) (45,290) (46,047)
Amortization
Total Property, Plant and Equipment, Net 30,223 30,910 31,723 32,297 33,077
Deferred Income Taxes 31 33 33 42 38
Other Assets 1,587 1,638 1,633 1,583 1,753
Total Assets 41,025 41,487 43,647 43,857 44,796
Current Liabilities
Accounts Payable 2,438 2,205 2,464 2,437 2,389
Accrued Taxes Payable 637 425 605 466 786
Dividends Payable 482 478 478 526 523
Liabilities from Price Risk Management Activities 31 22 22
Current Portion of Long-Term Debt 33 34 34 34 34
Current Portion of Operating Lease Liabilities 354 335 337 325 318
Other 253 232 285 286 223
Total 4,228 3,731 4,225 4,074 4,273
Long-Term Debt 3,787 3,780 3,772 3,765 3,757
Other Liabilities 2,620 2,581 2,698 2,526 2,533
Deferred Income Taxes 4,943 5,138 5,194 5,402 5,597
Commitments and Contingencies
Stockholders' Equity
Common Stock, $0.01 Par 206 206 206 206 206
Additional Paid in Capital 6,219 6,257 6,133 6,166 6,188
Accumulated Other Comprehensive Loss (8) (9) (7) (9) (8)
Retained Earnings 19,423 20,497 22,047 22,634 23,897
Common Stock Held in Treasury (393) (694) (621) (907) (1,647)
Total Stockholders' Equity 25,447 26,257 27,758 28,090 28,636
Total Liabilities and Stockholders' Equity 41,025 41,487 43,647 43,857 44,796
Cash Flow Statements
In millions of USD (Unaudited)
2023 2024
1st
Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash
Provided by Operating Activities:
Net Income 2,023 1,553 2,030 1,988 7,594 1,789 1,789
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization 798 866 898 930 3,492 1,074 1,074
Impairments 34 35 54 79 202 19 19
Stock-Based Compensation Expenses 34 35 57 51 177 45 45
Deferred Income Taxes 234 194 56 199 683 199 199
(Gains) Losses on Asset Dispositions, Net (69) 9 (35) (95) (26) (26)
Other, Net 4 2 (1) 22 27 9 9
Dry Hole Costs 1 1 1 1
Mark-to-Market Financial Commodity and Other (376) (101) (43) (298) (818) (237) (237)
Derivative Contracts Gains, Net
Net Cash Received from (Payments for) (123) (30) 23 18 (112) 55 55
Settlements of Financial Commodity
Derivative Contracts
Other, Net (1) (1) (2)
Changes in Components of Working Capital and
Other Assets and Liabilities
Accounts Receivable 338 137 (714) 201 (38) 58 58
Inventories (77) (226) (28) 100 (231) 117 117
Accounts Payable (77) (231) 238 (49) (119) (58) (58)
Accrued Taxes Payable 232 (212) 180 (139) 61 319 319
Other Assets 52 43 (92) 36 39 (161) (161)
Other Liabilities 193 (47) 54 (16) 184 (71) (71)
Changes in Components of Working Capital 35 250 28 (18) 295 (229) (229)
Associated with Investing Activities
Net Cash Provided by Operating Activities 3,255 2,277 2,704 3,104 11,340 2,903 2,903
Investing Cash Flows
Additions to Oil and Gas Properties (1,305) (1,341) (1,379) (1,360) (5,385) (1,485) (1,485)
Additions to Other Property, Plant and (319) (180) (139) (162) (800) (350) (350)
Equipment
Proceeds from Sales of Assets 92 29 14 5 140 9 9
Changes in Components of Working Capital (35) (250) (28) 18 (295) 229 229
Associated with Investing Activities
Net Cash Used in Investing Activities (1,567) (1,742) (1,532) (1,499) (6,340) (1,597) (1,597)
Financing Cash Flows
Long-Term Debt Repayments (1,250) (1,250)
Dividends Paid (1,067) (480) (494) (1,345) (3,386) (525) (525)
Treasury Stock Purchased (317) (302) (109) (310) (1,038) (759) (759)
Proceeds from Stock Options Exercised and 9 1 10 20
Employee Stock Purchase Plan
Debt Issuance Costs (8) (8)
Repayment of Finance Lease Liabilities (8) (8) (8) (8) (32) (8) (8)
Net Cash Used in Financing Activities (2,642) (789) (610) (1,653) (5,694) (1,292) (1,292)
Effect of Exchange Rate Changes on Cash
Increase (Decrease) in Cash and Cash Equivalents (954) (254) 562 (48) (694) 14 14
Cash and Cash Equivalents at Beginning of Period 5,972 5,018 4,764 5,326 5,972 5,278 5,278
Cash and Cash Equivalents at End of Period 5,018 4,764 5,326 5,278 5,278 5,292 5,292
Non-GAAP Financial Measures
To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles in the United States of America (GAAP), EOG's quarterly earnings releases and related conference calls, accompanying investor presentation slides and presentation slides for investor conferences contain certain financial measures that are not prepared or presented in accordance with GAAP. These non-GAAP financial measures may include, but are not limited to, Adjusted Net Income, Cash Flow from Operations Before Changes in Working Capital, Free Cash Flow, Net Debt and related statistics.
A reconciliation of each of these measures to their most directly comparable GAAP financial measure and related discussion is included in the tables on the following pages and can also be found in the "Reconciliations & Guidance" section of the "Investors" page of the EOG website at www.eogresources.com.
As further discussed in the tables on the following pages, EOG believes these measures may be useful to investors who follow the practice of some industry analysts who make certain adjustments to GAAP measures (for example, to exclude non-recurring items) to facilitate comparisons to others in EOG's industry, and who utilize non-GAAP measures in their calculations of certain statistics (for example, return on capital employed and return on equity) used to evaluate EOG's performance.
EOG believes that the non-GAAP measures presented, when viewed in combination with its financial results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the company's performance. As is discussed in the tables on the following pages, EOG uses these non-GAAP measures for purposes of (i) comparing EOG's financial performance with the financial performance of other companies in the industry and (ii) analyzing EOG's financial performance across periods.
The non-GAAP measures presented should not be considered in isolation, and should not be considered as a substitute for, or as an alternative to, EOG's reported Net Income (Loss), Long-Term Debt (including Current Portion of Long-Term Debt), Net Cash Provided by Operating Activities and other financial results calculated in accordance with GAAP. The non-GAAP measures presented should be read in conjunction with EOG's consolidated financial statements prepared in accordance with GAAP.
In addition, because not all companies use identical calculations, EOG's presentation of non-GAAP measures may not be comparable to, and may be calculated differently from, similarly titled measures disclosed by other companies, including its peer companies. EOG may also change the calculation of one or more of its non-GAAP measures from time to time - for example, to account for changes in its business and operations or to more closely conform to peer company or industry analysts' practices.
Direct ATROR
---
The calculation of EOG's direct after-tax rate of return (ATROR) is based on EOG's net estimated recoverable reserves for a particular well(s) or play, the estimated net present value of the future net cash flows from such reserves (for which EOG utilizes certain assumptions regarding future commodity prices and operating costs) and EOG's direct net costs incurred in drilling or acquiring such well(s). As such, EOG's direct ATROR for a particular well(s) or play cannot be calculated from EOG's consolidated financial statements.
Adjusted Net Income
In millions of USD, except share data (in millions) and per share data (Unaudited)
The following tables adjust reported Net Income (Loss) (GAAP) to reflect actual net cash received from (payments for) settlements of
financial commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these and other derivative
transactions, to eliminate the net (gains) losses on asset dispositions, to add back impairment charges related to certain of EOG's assets
(which are generally (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result
of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets)), and to make certain other
adjustments to exclude non-recurring and certain other items as further described below. EOG believes this presentation may be useful
to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to
production settlement months and make certain other adjustments to exclude non-recurring and certain other items. EOG
management uses this information for purposes of comparing its financial performance with the financial performance of other
companies in the industry.
1Q 2024
Before Income Tax After Diluted
Tax Impact Tax Earnings
per Share
Reported Net Income (GAAP) 2,300 (511) 1,789 3.10
Adjustments:
Gains on Mark-to-Market Financial Commodity and Other Derivative (237) 51 (186) (0.31)
Contracts, Net
Net Cash Received from Settlements of Financial Commodity Derivative 55 (12) 43 0.07
Contracts (1)
Less: Gains on Asset Dispositions, Net (26) 4 (22) (0.04)
Add: Certain Impairments 2 2
Adjustments to Net Income (206) 43 (163) (0.28)
Adjusted Net Income (Non-GAAP) 2,094 (468) 1,626 2.82
Average Number of Common Shares (Non-GAAP)
Basic 575
Diluted 577
(1) Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG adds to reported Net Income (Loss) (GAAP) the total net cash received from settlements of financial commodity derivative contracts during such period. For the
three months ended March 31, 2024, such amount was $55 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
4Q 2023
Before Income Tax After Diluted
Tax Impact Tax Earnings
per Share
Reported Net Income (GAAP) 2,535 (547) 1,988 3.42
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net (298) 64 (234) (0.40)
Net Cash Received from Settlements of Financial Commodity Derivative 18 (4) 14 0.02
Contracts (1)
Add: Certain Impairments 19 (4) 15 0.03
Adjustments to Net Income (261) 56 (205) (0.35)
Adjusted Net Income (Non-GAAP) 2,274 (491) 1,783 3.07
Average Number of Common Shares (Non-GAAP)
Basic 579
Diluted 581
(1) Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG adds to reported Net Income (Loss) (GAAP) the total net cash received from settlements of financial commodity derivative contracts during such period. For the
three months ended December 31, 2023, such amount was $18 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
3Q 2023
Before Income Tax After Diluted
Tax Impact Tax Earnings
per Share
Reported Net Income (GAAP) 2,573 (543) 2,030 3.48
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net (43) 9 (34) (0.06)
Net Cash Received from Settlements of Financial Commodity Derivative 23 (5) 18 0.03
Contracts (1)
Less: Gains on Asset Dispositions, Net (35) 7 (28) (0.05)
Add: Certain Impairments 23 (2) 21 0.04
Adjustments to Net Income (32) 9 (23) (0.04)
Adjusted Net Income (Non-GAAP) 2,541 (534) 2,007 3.44
Average Number of Common Shares (Non-GAAP)
Basic 579
Diluted 583
(1) Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG adds to reported Net Income (Loss) (GAAP) the total net cash received from settlements of financial commodity derivative contracts during such period. For the
three months ended September 30, 2023, such amount was $23 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
2Q 2023
Before Income Tax After Diluted
Tax Impact Tax Earnings
per Share
Reported Net Income (GAAP) 1,986 (433) 1,553 2.66
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net (101) 22 (79) (0.14)
Net Cash Payments for Settlements of Financial Commodity Derivative (30) 6 (24) (0.04)
Contracts (1)
Add: Losses on Asset Dispositions, Net 9 (2) 7 0.01
Adjustments to Net Income (122) 26 (96) (0.17)
Adjusted Net Income (Non-GAAP) 1,864 (407) 1,457 2.49
Average Number of Common Shares (Non-GAAP)
Basic 580
Diluted 584
(1) Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For
the three months ended June 30, 2023, such amount was $30 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
1Q 2023
Before Income Tax After Diluted
Tax Impact Tax Earnings
per Share
Reported Net Income (GAAP) 2,595 (572) 2,023 3.45
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net (376) 81 (295) (0.51)
Net Cash Payments for Settlements of Financial Commodity Derivative (123) 27 (96) (0.16)
Contracts (1)
Less: Gains on Asset Dispositions, Net (69) 15 (54) (0.09)
Adjustments to Net Income (568) 123 (445) (0.76)
Adjusted Net Income (Non-GAAP) 2,027 (449) 1,578 2.69
Average Number of Common Shares (Non-GAAP)
Basic 584
Diluted 587
(1) Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the
three months ended March 31, 2023, such amount was $123 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
FY 2023
Before Income Tax After Diluted
Tax Impact Tax Earnings per
Share
Reported Net Income (GAAP) 9,689 (2,095) 7,594 13.00
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net (818) 176 (642) (1.09)
Net Cash Payments for Settlements of Financial Commodity Derivative (112) 24 (88) (0.15)
Contracts (1)
Less: Gains on Asset Dispositions, Net (95) 20 (75) (0.13)
Add: Certain Impairments 42 (6) 36 0.06
Adjustments to Net Income (983) 214 (769) (1.31)
Adjusted Net Income (Non-GAAP) 8,706 (1,881) 6,825 11.69
Average Number of Common Shares (Non-GAAP)
Basic 581
Diluted 584
(1) Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the
twelve months ended December 31, 2023, such amount was $112 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
FY 2022
Before Income Tax After Diluted
Tax Impact Tax Earnings per
Share
Reported Net Income (GAAP) 9,901 (2,142) 7,759 13.22
Adjustments:
Losses on Mark-to-Market Financial Commodity Derivative Contracts, Net 3,982 (858) 3,124 5.32
Net Cash Payments for Settlements of Financial Commodity Derivative (3,501) 755 (2,746) (4.68)
Contracts (1)
Less: Gains on Asset Dispositions, Net (74) 17 (57) (0.10)
Add: Certain Impairments 113 (31) 82 0.14
Less: Severance Tax Refund (115) 25 (90) (0.15)
Add: Severance Tax Consulting Fees 16 (3) 13 0.02
Less: Interest on Severance Tax Refund (7) 2 (5) (0.01)
Adjustments to Net Income 414 (93) 321 0.54
Adjusted Net Income (Non-GAAP) 10,315 (2,235) 8,080 13.76
Average Number of Common Shares (Non-GAAP)
Basic 583
Diluted 587
(1) Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the twelve months ended December 31, 2022, such amount was $3,501
million, of which $1,391 million was related to the early termination of certain contracts.
Net Income per Share
In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
4Q 2023 Net Income per Share (GAAP) - Diluted 3.42
Realized Price
1Q 2024 Composite Average Wellhead Revenue per Boe 46.73
Less: 4Q 2023 Composite Average Wellhead Revenue per Boe (48.27)
Subtotal (1.54)
Multiplied by: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe) 93.6
Total Change in Revenue (144)
Add: Income Tax Benefit (Provision) Imputed (based on 22%) 32
Change in Net Income (112)
Change in Diluted Earnings per Share (0.19)
Wellhead Volumes
1Q 2024 Crude Oil Equivalent Volumes (MMBoe) 93.6
Less: 4Q 2023 Crude Oil Equivalent Volumes (MMBoe) (94.4)
Subtotal (0.8)
Multiplied by: 1Q 2024 Composite Average Margin per Boe (GAAP) (Including Total 20.24
Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
schedule located in the "Reconciliations & Guidance" section of the "Investors" page of the
EOG website)
Change in Margin (16)
Add: Income Tax Benefit (Provision) Imputed (based on 22%) 4
Change in Net Income (12)
Change in Diluted Earnings per Share (0.02)
Certain Operating Costs per Boe
4Q 2023 Total Cash Operating Costs (GAAP) and Total DD&A per Boe 20.37
Less: 1Q 2024 Total Cash Operating Costs (GAAP) and Total DD&A per Boe (21.84)
Subtotal (1.47)
Multiplied by: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe) 93.6
Change in Before-Tax Net Income (138)
Add: Income Tax Benefit (Provision) Imputed (based on 22%) 30
Change in Net Income (108)
Change in Diluted Earnings per Share (0.19)
Net Income Per Share
(Continued)
In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
Gains (Losses) on Mark-to-Market Financial Commodity and Other Derivative Contracts, Net
1Q 2024 Net Gains (Losses) on Mark-to-Market Financial Commodity and Other Derivative 237
Contracts
Less: Income Tax Benefit (Provision) (51)
After Tax - (a) 186
Less: 4Q 2023 Net Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts 298
Less: Income Tax Benefit (Provision) (64)
After Tax - (b) 234
Change in Net Income - (a) - (b) (48)
Change in Diluted Earnings per Share (0.08)
Other (1) 0.16
1Q 2024 Net Income per Share (GAAP) - Diluted 3.10
1Q 2024 Average Number of Common Shares (GAAP) - Diluted 577
(1) Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions, other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense
and the impact of changes in the effective income tax rate.
Adjusted Net Income Per Share
In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
4Q 2023 Adjusted Net Income per Share (Non-GAAP) - Diluted 3.07
Realized Price
1Q 2024 Composite Average Wellhead Revenue per Boe 46.73
Less: 4Q 2023 Composite Average Wellhead Revenue per Boe (48.27)
Subtotal (1.54)
Multiplied by: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe) 93.6
Total Change in Revenue (144)
Add: Income Tax Benefit (Provision) Imputed (based on 22%) 32
Change in Net Income (112)
Change in Diluted Earnings per Share (0.19)
Wellhead Volumes
1Q 2024 Crude Oil Equivalent Volumes (MMBoe) 93.6
Less: 4Q 2023 Crude Oil Equivalent Volumes (MMBoe) (94.4)
Subtotal (0.8)
Multiplied by: 1Q 2024 Composite Average Margin per Boe (Non-GAAP) (Including Total 20.26
Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent"
schedule located in the "Reconciliations & Guidance" section of the "Investors" page of the
EOG website)
Change in Margin (16)
Add: Income Tax Benefit (Provision) Imputed (based on 22%) 4
Change in Net Income (12)
Change in Diluted Earnings per Share (0.02)
Certain Operating Costs per Boe
4Q 2023 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe 20.37
Less: 1Q 2024 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe (21.84)
Subtotal (1.47)
Multiplied by: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe) 93.6
Change in Before-Tax Net Income (138)
Add: Income Tax Benefit (Provision) Imputed (based on 22%) 30
Change in Net Income (108)
Change in Diluted Earnings per Share (0.19)
Adjusted Net Income Per Share
(Continued)
In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative Contracts
1Q 2024 Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative 55
Contracts
Less: Income Tax Benefit (Provision) (12)
After Tax - (a) 43
4Q 2023 Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative 18
Contracts
Less: Income Tax Benefit (Provision) (4)
After Tax - (b) 14
Change in Net Income - (a) - (b) 29
Change in Diluted Earnings per Share 0.05
Other (1) 0.10
1Q 2024 Adjusted Net Income per Share (Non-GAAP) 2.82
1Q 2024 Average Number of Common Shares (Non-GAAP) - Diluted 577
(1) Includes gathering, processing and marketing revenue, other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the
impact of changes in the effective income tax rate.
Cash Flow from Operations and Free Cash Flow
In millions of USD (Unaudited)
The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Cash Flow from Operations Before Changes in Working Capital (Non-
GAAP). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by
Operating Activities for Changes in Components of Working Capital and Other Assets and Liabilities, Changes in Components of Working Capital
Associated with Investing Activities and certain other adjustments to exclude non-recurring and certain other items as further described below. EOG
defines Free Cash Flow (Non-GAAP) for a given period as Cash Flow from Operations Before Changes in Working Capital (Non-GAAP) (see below
reconciliation) for such period less the Total Capital Expenditures (Non-GAAP) during such period, as is illustrated below. EOG management uses this
information for comparative purposes within the industry.
2023 2024
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
Net Cash Provided by Operating Activities (GAAP) 3,255 2,277 2,704 3,104 11,340 2,903 2,903
Adjustments:
Changes in Components of Working Capital
and Other Assets and Liabilities
Accounts Receivable (338) (137) 714 (201) 38 (58) (58)
Inventories 77 226 28 (100) 231 (117) (117)
Accounts Payable 77 231 (238) 49 119 58 58
Accrued Taxes Payable (232) 212 (180) 139 (61) (319) (319)
Other Assets (52) (43) 92 (36) (39) 161 161
Other Liabilities (193) 47 (54) 16 (184) 71 71
Changes in Components of Working Capital (35) (250) (28) 18 (295) 229 229
Associated with Investing Activities
Cash Flow from Operations Before Changes in 2,559 2,563 3,038 2,989 11,149 2,928 2,928
Working Capital (Non-GAAP)
Less:
Total Capital Expenditures (Non-GAAP) (a) (1,489) (1,521) (1,519) (1,512) (6,041) (1,703) (1,703)
Free Cash Flow (Non-GAAP) 1,070 1,042 1,519 1,477 5,108 1,225 1,225
(a) See below reconciliation of Total Expenditures (GAAP) to Total Capital Expenditures (Non-GAAP):
2023 2024
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
Total Expenditures (GAAP) 1,717 1,664 1,803 1,634 6,818 1,952 1,952
Less:
Asset Retirement Costs (10) (26) (191) (30) (257) (21) (21)
Non-Cash Development Drilling - (35) (50) (5) (90)
Non-Cash Acquisition Costs of Unproved Properties (31) (28) (1) (39) (99) (31) (31)
Acquisition Costs of Proved Properties (4) (6) 1 (7) (16) (21) (21)
Acquisition Costs of Other Property, (133) (1) (134) (131) (131)
Plant and Equipment
Exploration Costs (50) (47) (43) (41) (181) (45) (45)
Total Capital Expenditures (Non-GAAP) 1,489 1,521 1,519 1,512 6,041 1,703 1,703
Net Debt-to-Total Capitalization Ratio
In millions of USD, except ratio data (Unaudited)
The following tables reconcile Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as
used in the Net Debt-to-Total Capitalization ratio calculation. A portion of the cash is associated with international subsidiaries; tax considerations may impact debt
paydown. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt and Total Capitalization
(Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation. EOG management uses this information for comparative purposes within the industry.
March 31, December 31, September 30, June 30, March 31,
2024 2023 2023 2023 2023
Total Stockholders' Equity - (a) 28,636 28,090 27,758 26,257 25,447
Current and Long-Term Debt (GAAP) - (b) 3,791 3,799 3,806 3,814 3,820
Less: Cash (5,292) (5,278) (5,326) (4,764) (5,018)
Net Debt (Non-GAAP) - (c) (1,501) (1,479) (1,520) (950) (1,198)
Total Capitalization (GAAP) - (a) + (b) 32,427 31,889 31,564 30,071 29,267
Total Capitalization (Non-GAAP) - (a) + (c) 27,135 26,611 26,238 25,307 24,249
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)] 11.7 % 11.9 % 12.1 % 12.7 % 13.1 %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / -5.5 % -5.6 % -5.8 % -3.8 % -4.9 %
[(a) + (c)]
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SOURCE EOG Resources, Inc.
