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Section 1: 8-K (8-K)

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false0000821189 0000821189 2020-02-27 2020-02-27


 
 
 
 
 

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

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): February 27, 2020

_______________

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

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

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

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


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

     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per share
EOG
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


 
 
 
 
 




EOG RESOURCES, INC.

Item 2.02     Results of Operations and Financial Condition.

On February 27, 2020, EOG Resources, Inc. issued a press release announcing fourth quarter 2019 financial and operational results and first quarter and full year 2020 forecast and benchmark commodity pricing information (see Item 7.01 below).  A copy of this release is attached as Exhibit 99.1 to this filing and is incorporated herein by reference.  This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

Item 7.01     Regulation FD Disclosure.

Accompanying the press release announcing fourth quarter 2019 financial and operational results attached hereto as Exhibit 99.1 is first quarter and full year 2020 forecast and benchmark commodity pricing information for EOG Resources, Inc., which information is incorporated herein by reference.  This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

  99.1    Press Release of EOG Resources, Inc. dated February 27, 2020 (including the accompanying first quarter and full year 2020 forecast and benchmark commodity pricing information).

104    Cover Page Interactive Data File (formatted as Inline XBRL).



2



SIGNATURES

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

 
 
EOG RESOURCES, INC.
(Registrant)
 
 
 
 
 
 
 
 
 
Date: February 27, 2020
By:
/s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Executive Vice President and Chief Financial Officer
(Principal Financial Officer and Duly Authorized Officer)


3
(Back To Top)

Section 2: EX-99.1 (PRESS RELEASE OF EOG RESOURCES, INC.)

Exhibit
EXHIBIT 99.1


403024403_eoglogoa31.jpg

February 27, 2020

EOG Resources Reports Excellent Fourth Quarter and Full-Year 2019 Results; Announces 2020 Capital Program; Raises Dividend by 30 Percent
Increased Common Stock Dividend by 30 Percent to $1.50 Indicated Annual Rate
Earned $2.7 Billion Net Income in 2019, or $4.71 per Share
Generated $8.2 Billion Net Cash from Operating Activities and Significant Free Cash Flow
Exceeded Fourth Quarter and Full-Year 2019 Crude Oil Production Target with Capital Expenditures Below Target
Lease and Well and DD&A Expense Rates Below Target in Fourth Quarter and Full-Year 2019
Increased Proved Reserves by 14% and Replaced 253% of 2019 Production at $8.21 per Boe Finding Cost
$6.3 to $6.7 Billion Capital Program Targets 10-14% Crude Oil Volume Growth in 2020
2020 Capital Program and Dividend Funded with Net Cash from Operating Activities at Oil Prices Below $50
 
HOUSTON - EOG Resources, Inc. (EOG) today reported fourth quarter 2019 net income of $637 million, or $1.10 per share, compared with fourth quarter 2018 net income of $893 million, or $1.54 per share. Net cash from operating activities for the fourth quarter 2019 was $1.8 billion. For the full year 2019, EOG reported net income of $2.7 billion, or $4.71 per share, compared with net income of $3.4 billion, or $5.89 per share, for the full year 2018. Net cash from operating activities for the full year 2019 was $8.2 billion.

Adjusted non-GAAP net income for the fourth quarter 2019 was $787 million, or $1.35 per share, compared with adjusted non-GAAP net income of $718 million, or $1.24 per share, for the same prior year period. Adjusted non-GAAP net income for the full year 2019 was $2.9 billion, or $4.98 per share, compared with adjusted non-GAAP net income of $3.2 billion, or $5.54 per share, for the full year 2018.

Increased crude oil production from high-return operating areas and reductions in per-unit operating costs contributed to EOG’s strong fourth quarter 2019 financial results. Adjusted earnings per share, discretionary cash flow and adjusted EBITDAX increased in the fourth quarter 2019 compared with the same prior year period, demonstrating EOG’s resiliency and ability to overcome declines in commodity prices. Please refer to the attached tables for definitions and the reconciliation of non-GAAP measures to GAAP measures.

Fourth Quarter and Full Year 2019 Operating Review
Capital efficiency improvements from increased well productivity and cost reductions across EOG’s premium plays supported strong operating and financial performance in 2019. United States crude oil volumes grew 15 percent to 455,500 barrels of oil per day (Bopd). Total company natural gas liquids production increased 16 percent, while total company natural gas volumes grew 12 percent.




Total crude oil volumes in the fourth quarter 2019 were 468,900 Bopd, which was above the midpoint of the target range and represents an eight percent increase compared with the same prior year period. Natural gas liquids and natural gas volumes increased by 17 percent and 15 percent, respectively, during this same period. EOG incurred total expenditures of $1.5 billion in the fourth quarter. Total cash capital expenditures before acquisitions of $1.4 billion were below the low end of the target range. Please refer to the attached tables for definitions and the reconciliation of non-GAAP measures to GAAP measures.

EOG continued to lower operating costs during the fourth quarter 2019. Lease and well costs declined 13 percent, transportation costs fell five percent and depreciation, depletion and amortization (DD&A) expenses fell six percent, all on a per-unit basis compared with the same prior-year period. The company also continued to implement sustainable efficiency improvements to reduce well costs. The fourth quarter improvements brought full-year 2019 well cost reductions to seven percent, two percentage points ahead of the target.

EOG generated $2.1 billion of discretionary cash flow in the fourth quarter 2019. After considering total cash capital expenditures before acquisitions of $1.4 billion, EOG generated free cash flow during the fourth quarter 2019 of $723 million. For the full year 2019, EOG generated $8.1 billion of discretionary cash flow and incurred total cash capital expenditures before acquisitions of $6.2 billion, resulting in free cash flow of $1.9 billion. Please refer to the attached tables for definitions and the reconciliation of non-GAAP measures to GAAP measures. As is further explained in the attached reconciliation tables, EOG now defines its free cash flow for a period as its discretionary cash flow for such period less its total cash capital expenditures (before acquisitions) for such period (without regards to the dividends paid in such period). EOG believes this definition of free cash flow is more consistent with that utilized by other companies in the industry. 

“Year after year, EOG keeps getting better, delivering record operating performance in 2019. Significant capital efficiency improvements from strong well productivity and sustainable cost reductions allowed us to deliver higher production with less capital investment than we planned at the beginning of the year,” said William R. “Bill” Thomas, Chairman and Chief Executive Officer. “We did this while generating substantial free cash flow, strengthening our financial position and increasing the dividend. This was the third consecutive year since our transition to premium drilling that EOG delivered double-digit returns and production growth along with strong free cash flow.”

2020 Capital Plan
The purpose of EOG’s annual capital program is to generate high returns on investment and increase the company’s business value. Exploration and development expenditures for 2020 are expected to range from $6.3 billion to $6.7 billion, including facilities and gathering, processing and other expenditures, and excluding acquisitions and non-cash exchanges. The disciplined capital program supports growth in crude oil production of 10 to 14 percent in 2020 and funds dividend payments with net cash from operating activities at less than $50 oil.

Due to the decline in crude oil prices, the 2020 capital plan allocates slightly less capital to growing oil production than in 2019. To continue to improve the company, the 2020 plan allocates more capital than in 2019 to fund new high-quality drilling potential and high-return infrastructure to further lower EOG’s cost structure and environmental footprint. With the benefit of sustainable cost reductions and operational efficiencies, EOG expects to complete approximately 800 net wells in 2020 compared with 750 net wells in 2019. Activity will remain focused in EOG’s highest rate-of-return oil assets in the Delaware Basin, Eagle Ford and Rocky Mountain Area.




“EOG’s 2020 capital plan reflects continued improvement in capital efficiency, highlights the resiliency of our business model, and ensures the capital program and dividend payments can be funded at a conservative oil price. Looking to the future, our 2020 plan also invests in new high-return drilling potential and infrastructure development to lower costs and further improve the company,” Thomas said. “EOG’s sustainable competitive advantages already position us as one of the lowest cost oil producers in the global market and we are poised to extend our cost advantage well into the future.”

Dividend Increase
The board of directors declared a dividend of $0.375 per share on EOG’s Common Stock, an increase of 30 percent. The dividend will be payable April 30, 2020, to stockholders of record as of April 16, 2020. The indicated annual rate is $1.50 per share.

“EOG’s high-return premium drilling program and our low cost structure allow us to continue upholding the commitment we have made to return more cash to shareholders. This latest dividend increase demonstrates the confidence we have in our ability to grow cash flow, generate high returns through our premium well strategy and improve our future inventory with high quality new drilling potential," Thomas said.

Reserves
At year-end 2019, total company net proved reserves were 3,329 million barrels of oil equivalent (MMBoe), a 14 percent increase compared with year-end 2018. Net proved reserve additions from all sources, excluding revisions due to price, replaced 253 percent of EOG’s 2019 production at a finding and development cost of $8.21 per barrel of oil equivalent. Revisions due to price decreased net proved reserves by 60 MMBoe and asset divestitures decreased net proved reserves by five MMBoe. For more reserves detail and a reconciliation of non-GAAP measures to GAAP measures please refer to the attached tables.

For the 32nd consecutive year, internal reserves estimates were within five percent of estimates independently prepared by DeGolyer and MacNaughton.

Financial Review
EOG further strengthened its financial position during the fourth quarter 2019. At December 31, 2019, EOG’s total debt outstanding was $5.2 billion for a debt-to-total capitalization ratio of 19 percent. Considering cash on the balance sheet at the end of the fourth quarter, EOG’s net debt was $3.1 billion for a net debt-to-total capitalization ratio of 13 percent. For definitions and the reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

Fourth Quarter 2019 Results Webcast
Friday, February 28, 2020, 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, 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. Because we provide these measures on a forward-looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures. Management believes these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing EOG’s forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG’s actual results may differ materially from such measures and estimates. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:

the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion, operating and capital costs related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production;
security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;
the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation 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 drilling, completing and operating costs with respect to such properties;
the extent to which EOG's fourth-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 fourth 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; and
the other factors described under ITEM 1A, Risk Factors, on pages 13 through 23 of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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, 2019, 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
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Operating Revenues and Other
$
4,320.2

 
$
4,574.5

 
$
17,380.0

 
$
17,275.4

Net Income
$
636.5

 
$
892.8

 
$
2,734.9

 
$
3,419.0

Net Income Per Share
 
 
 
 
 
 
 
Basic
$
1.10

 
$
1.55

 
$
4.73

 
$
5.93

Diluted
$
1.10

 
$
1.54

 
$
4.71

 
$
5.89

Average Number of Common Shares
 
 
 
 
 
 
 
Basic
578.2

 
577.0

 
577.7

 
576.6

Diluted
580.8

 
580.3

 
580.8

 
580.4

 
 
 
 
 
 
 
 
Summary Income Statements
(Unaudited; in thousands, except per share data)
 
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
Operating Revenues and Other
 
 
 
 
Crude Oil and Condensate
$
2,464,274

 
$
2,383,326

 
$
9,612,532

 
$
9,517,440

Natural Gas Liquids
215,070

 
266,037

 
784,818

 
1,127,510

Natural Gas
309,606

 
389,213

 
1,184,095

 
1,301,537

Gains (Losses) on Mark-to-Market Commodity Derivative Contracts
(62,347
)
 
132,095

 
180,275

 
(165,640
)
Gathering, Processing and Marketing
1,238,792

 
1,331,105

 
5,360,282

 
5,230,355

Gains on Asset Dispositions, Net
119,963

 
79,904

 
123,613

 
174,562

Other, Net
34,888

 
(7,144
)
 
134,358

 
89,635

Total
4,320,246

 
4,574,536

 
17,379,973

 
17,275,399

Operating Expenses
 
 
 
 
 
 
 
Lease and Well
334,538

 
346,442

 
1,366,993

 
1,282,678

Transportation Costs
208,312

 
196,095

 
758,300

 
746,876

Gathering and Processing Costs
127,615

 
112,396

 
479,102

 
436,973

Exploration Costs
36,495

 
33,862

 
139,881

 
148,999

Dry Hole Costs

 
145

 
28,001

 
5,405

Impairments
228,135

 
186,087

 
517,896

 
347,021

Marketing Costs
1,237,259

 
1,349,416

 
5,351,524

 
5,203,243

Depreciation, Depletion and Amortization
959,208

 
919,963

 
3,749,704

 
3,435,408

General and Administrative
125,187

 
116,904

 
489,397

 
426,969

Taxes Other Than Income
199,746

 
190,086

 
800,164

 
772,481

Total
3,456,495

 
3,451,396

 
13,680,962

 
12,806,053

 
 
 
 
 
 
 
 
Operating Income
863,751

 
1,123,140

 
3,699,011

 
4,469,346

 
 
 
 
 
 
 
 
Other Income, Net
8,152

 
21,220

 
31,385

 
16,704

 
 
 
 
 
 
 
 
Income Before Interest Expense and Income Taxes
871,903

 
1,144,360

 
3,730,396

 
4,486,050

 
 
 
 
 
 
 
 
Interest Expense, Net
40,695

 
56,020

 
185,129

 
245,052

 
 
 
 
 
 
 
 
Income Before Income Taxes
831,208

 
1,088,340

 
3,545,267

 
4,240,998

 
 
 
 
 
 
 
 
Income Tax Provision
194,687

 
195,572

 
810,357

 
821,958

 
 
 
 
 
 
 
 
Net Income
$
636,521

 
$
892,768

 
$
2,734,910

 
$
3,419,040

 
 
 
 
 
 
 
 
Dividends Declared per Common Share
$
0.2875

 
$
0.2200

 
$
1.0825

 
$
0.8100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





EOG RESOURCES, INC.
Operating Highlights
(Unaudited)
 
 
 
 
Three Months Ended
 
 
 
Twelve Months Ended
 
 
 
December 31,
 
 
 
December 31,
 
 
 
2019
 
2018
 
% Change
 
2019
 
2018
 
% Change
Wellhead Volumes and Prices
 
 
 
 
 
 
 
 
 
 
 
Crude Oil and Condensate Volumes (MBbld) (A)
 
 
 
 
 
 
 
United States
468.3

 
430.3

 
9
 %
 
455.5

 
394.8

 
15
 %
Trinidad
0.5

 
0.8

 
-38
 %
 
0.6

 
0.8

 
-25
 %
Other International (B)
0.1

 
4.5

 
-98
 %
 
0.1

 
4.3

 
-98
 %
Total
468.9

 
435.6

 
8
 %
 
456.2

 
399.9

 
14
 %
 
 
 
 
 
 
 
 
 
 
 
 
Average Crude Oil and Condensate Prices
($/Bbl) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
57.14

 
$
59.37

 
-4
 %
 
$
57.74

 
$
65.16

 
-11
 %
Trinidad
46.73

 
51.8

 
-10
 %
 
47.16

 
57.26

 
-18
 %
Other International (B)
53.76

 
70.44

 
-24
 %
 
57.40

 
71.45

 
-20
 %
Composite
57.13

 
59.47

 
-4
 %
 
57.72

 
65.21

 
-11
 %
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Liquids Volumes (MBbld) (A)
 
 
 
 
 
 
 
 
 
 
 
United States
144.0

 
122.8

 
17
 %
 
134.1

 
116.1

 
16
 %
Other International (B)

 

 
 
 

 

 
 
Total
144.0

 
122.8

 
17
 %
 
134.1

 
116.1

 
16
 %
 
 
 
 
 
 
 
 
 
 
 
 
Average Natural Gas Liquids Prices ($/Bbl) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
16.23

 
$
23.54

 
-31
 %
 
$
16.03

 
$
26.60

 
-40
 %
Other International (B)

 

 
 
 

 

 
 
Composite
16.23

 
23.54

 
-31
 %
 
16.03

 
26.30

 
-40
 %
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Volumes (MMcfd) (A)
 
 
 
 
 
 
 
 
 
 
 
United States
1,148

 
974

 
18
 %
 
1,069

 
923

 
16
 %
Trinidad
242

 
230

 
5
 %
 
260

 
266

 
-2
 %
Other International (B)
35

 
32

 
9
 %
 
37

 
30

 
23
 %
Total
1,425

 
1,236

 
15
 %
 
1,366

 
1,219

 
12
 %
 
 
 
 
 
 
 
 
 
 
 
 
Average Natural Gas Prices ($/Mcf) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
2.20

 
$
3.50

 
-37
 %
 
$
2.22

 
$
2.88

 
-23
 %
Trinidad
2.78

 
3.03

 
-8
 %
 
2.72

 
2.94

 
-7
 %
Other International (B)
4.88

 
4.02

 
22
 %
 
4.44

 
4.08

 
9
 %
Composite
2.36

 
3.42

 
-31
 %
 
2.38

 
2.92

 
-19
 %
 
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Equivalent Volumes (MBoed) (D)
 
 
 
 
 
 
 
 
 
 
 
United States
803.6

 
715.5

 
12
 %
 
767.8

 
664.7

 
16
 %
Trinidad
40.9

 
39.0

 
5
 %
 
44.0

 
45.1

 
-2
 %
Other International (B)
5.8

 
10.0

 
-42
 %
 
6.2

 
9.4

 
-34
 %
Total
850.3

 
764.5

 
11
 %
 
818.0

 
719.2

 
14
 %
 
 
 
 
 
 
 
 
 
 
 
 
Total MMBoe (D)
78.2

 
70.3

 
11
 %
 
298.6

 
262.5

 
14
 %

(A)
Thousand barrels per day or million cubic feet per day, as applicable.
(B)
Other International includes EOG's United Kingdom, China and Canada operations. The United Kingdom operations were sold in the fourth quarter of 2018.
(C)
Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments (see Note 12 to the Consolidated Financial Statements in EOG's Annual Report on Form 10-K for the year ended December 31, 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)
 
 
December 31,
 
December 31,
 
2019
 
2018
ASSETS
Current Assets
 
 
 
Cash and Cash Equivalents
$
2,027,972

 
$
1,555,634

Accounts Receivable, Net
2,001,658

 
1,915,215

Inventories
767,297

 
859,359

Assets from Price Risk Management Activities
1,299

 
23,806

Income Taxes Receivable
151,665

 
427,909

Other
323,448

 
275,467

Total
5,273,339

 
5,057,390

 
Property, Plant and Equipment
 
 
 
Oil and Gas Properties (Successful Efforts Method)
62,830,415

 
57,330,016

Other Property, Plant and Equipment
4,472,246

 
4,220,665

Total Property, Plant and Equipment
67,302,661

 
61,550,681

Less: Accumulated Depreciation, Depletion and Amortization
(36,938,066
)
 
(33,475,162
)
Total Property, Plant and Equipment, Net
30,364,595

 
28,075,519

Deferred Income Taxes
2,363

 
777

Other Assets
1,484,311

 
800,788

Total Assets
$
37,124,608

 
$
33,934,474

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 
 
 
Accounts Payable
$
2,429,127

 
$
2,239,850

Accrued Taxes Payable
254,850

 
214,726

Dividends Payable
166,273

 
126,971

Liabilities from Price Risk Management Activities
20,194

 

Current Portion of Long-Term Debt
1,014,524

 
913,093

Current Portion of Operating Lease Liabilities
369,365

 

Other
232,655

 
233,724

Total
4,486,988

 
3,728,364

 
 
 
 
 
 
 
 
Long-Term Debt
4,160,919

 
5,170,169

Other Liabilities
1,789,884

 
1,258,355

Deferred Income Taxes
5,046,101

 
4,413,398

Commitments and Contingencies
 
 
 
 
 
 
 
Stockholders' Equity
 
 
 
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 582,213,016 Shares and 580,408,117 Shares Issued at December 31, 2019 and 2018, respectively
205,822

 
205,804

Additional Paid in Capital
5,817,475

 
5,658,794

Accumulated Other Comprehensive Loss
(4,652
)
 
(1,358
)
Retained Earnings
15,648,604

 
13,543,130

Common Stock Held in Treasury, 298,820 Shares and 385,042 Shares at December 31, 2019 and 2018, respectively
(26,533
)
 
(42,182
)
Total Stockholders' Equity
21,640,716

 
19,364,188

Total Liabilities and Stockholders' Equity
$
37,124,608

 
$
33,934,474








EOG RESOURCES, INC.
Summary Statements of Cash Flows
(Unaudited; in thousands)
 
Three Months Ended
 
Twelve Months Ended
 
Deember 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
Cash Flows from Operating Activities
 
 
 
 
 
 
 
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
 
 
 
 
 
 
 
Net Income
$
636,521

 
$
892,768

 
$
2,734,910

 
$
3,419,040

Items Not Requiring (Providing) Cash
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
959,208

 
919,963

 
3,749,704

 
3,435,408

Impairments
228,135

 
186,087

 
517,896

 
347,021

Stock-Based Compensation Expenses
42,415

 
39,047

 
174,738

 
155,337

Deferred Income Taxes
123,082

 
212,454

 
631,658

 
894,156

Gains on Asset Dispositions, Net
(119,963
)
 
(79,904
)
 
(123,613
)
 
(174,562
)
Other, Net
341

 
(8,248
)
 
4,496

 
7,066

Dry Hole Costs

 
145

 
28,001

 
5,405

Mark-to-Market Commodity Derivative Contracts
 
 
 
 
 
 
 
Total (Gains) Losses
62,347

 
(132,095
)
 
(180,275
)
 
165,640

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
91,521

 
(78,678
)
 
231,229

 
(258,906
)
Other, Net
(253
)
 
1,456

 
962

 
3,108

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
 
 
Accounts Receivable
(85,937
)
 
185,349

 
(91,792
)
 
(368,180
)
Inventories
34,686

 
(108,591
)
 
90,284

 
(395,408
)
Accounts Payable
34,286

 
(98,178
)
 
168,539

 
439,347

Accrued Taxes Payable
(47,925
)
 
(55,570
)
 
40,122

 
(92,461
)
Other Assets
(36,572
)
 
(22,101
)
 
358,001

 
(125,435
)
Other Liabilities
(38,304
)
 
25,725

 
(56,619
)
 
10,949

Changes in Components of Working Capital Associated with Investing and Financing Activities
(76,384
)
 
205,599

 
(115,061
)
 
301,083

Net Cash Provided by Operating Activities
1,807,204

 
2,085,228

 
8,163,180

 
7,768,608

 
 
 
 
 
 
 
 
Investing Cash Flows
 
 
 
 
 
 
 
Additions to Oil and Gas Properties
(1,285,003
)
 
(1,267,362
)
 
(6,151,885
)
 
(5,839,294
)
Additions to Other Property, Plant and Equipment
(83,291
)
 
(34,797
)
 
(270,641
)
 
(237,181
)
Proceeds from Sales of Assets
104,883

 
215,864

 
140,292

 
227,446

Other Investing Activities
(10,000
)
 

 
(10,000
)
 
(19,993
)
Changes in Components of Working Capital Associated with Investing Activities
76,384

 
(205,599
)
 
115,061

 
(301,140
)
Net Cash Used in Investing Activities
(1,197,027
)
 
(1,291,894
)
 
(6,177,173
)
 
(6,170,162
)
 
 
 
 
 
 
 
 
Financing Cash Flows
 
 
 
 
 
 
 
Lont-Term Debt Repayments

 
(350,000
)
 
(900,000
)
 
(350,000
)
Dividends Paid
(167,349
)
 
(126,970
)
 
(588,200
)
 
(438,045
)
Treasury Stock Purchased
(2,914
)
 
(4,898
)
 
(25,152
)
 
(63,456
)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan
8,388

 
8,462

 
17,946

 
20,560

Debt Issuance Costs

 

 
(5,016
)
 

Repayment of Finance Lease Obligation
(3,261
)
 
(3,167
)
 
(12,899
)
 
(8,219
)
Changes in Components of Working Capital Associated with Financing Activities

 

 

 
57

Net Cash Used in Financing Activities
(165,136
)
 
(476,573
)
 
(1,513,321
)
 
(839,103
)
 
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash
(174
)
 
(35,259
)
 
(348
)
 
(37,937
)
 
 
 
 
 
 
 
 
Increase in Cash and Cash Equivalents
444,867

 
281,502

 
472,338

 
721,406

Cash and Cash Equivalents at Beginning of Period
1,583,105

 
1,274,132

 
1,555,634

 
834,228

Cash and Cash Equivalents at End of Period
$
2,027,972

 
$
1,555,634

 
$
2,027,972

 
$
1,555,634






EOG RESOURCES, INC.
Fourth Quarter 2019 Well Results by Play
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Online
 
 
 
Initial Gross 30-Day Average Production Rate
 
 
Gross
 
Net
 
Lateral Length
(ft)
 
Crude Oil and Condensate
(Bbld) (A)
 
Natural Gas Liquids
(Bbld) (A)
 
Natural Gas
(MMcfd) (A)
 
Crude Oil Equivalent
(Boed) (B)
Delaware Basin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wolfcamp
 
23

 
20

 
9,400

 
2,500

 
750

 
3.7

 
3,850

Bone Spring
 
17

 
15

 
8,000

 
1,850

 
450

 
2.3

 
2,700

Leonard
 
11

 
11

 
8,000

 
2,350

 
900

 
4.6

 
4,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Texas Eagle Ford
 
67

 
64

 
7,400

 
1,100

 
150

 
0.6

 
1,350

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Texas Austin Chalk
 
9

 
9

 
6,100

 
1,650

 
300

 
1.4

 
2,200

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Powder River Basin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turner/Parkman
 
7

 
6

 
8,900

 
900

 
150

 
3.5

 
1,650

Niobrara
 
1

 
1

 
8,800

 
950

 
50

 
0.7

 
1,100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DJ Basin Codell/Niobrara
 
12

 
11

 
11,400

 
850

 
50

 
0.4

 
950

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Williston Basin Bakken/Three Forks
 
6

 
5

 
10,100

 
2,250

 
250

 
1.9

 
2,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 twelve-month periods ended December 31, 2019 and 2018 reported Net Income (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net gains 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
 
December 31, 2019
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Before Tax
 
Income Tax Impact
 
After
Tax
 
Diluted Earnings per Share
 
Before Tax
 
Income Tax Impact
 
After
Tax
 
Diluted Earnings per Share
Reported Net Income (GAAP)
$
831,208

 
$
(194,687
)
 
$
636,521

 
$
1.10

 
$
1,088,340

 
$
(195,572
)
 
$
892,768

 
$
1.54

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) Losses on Mark-to-Market Commodity Derivative Contracts
62,347

 
(13,684
)
 
48,663

 
0.08

 
(132,095
)
 
29,096

 
(102,999
)
 
(0.18
)
Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
91,521

 
(20,087
)
 
71,434

 
0.12

 
(78,678
)
 
17,330

 
(61,348
)
 
(0.11
)
Less: Gains on Asset Dispositions, Net
(119,963
)
 
26,342

 
(93,621
)
 
(0.16
)
 
(79,904
)
 
13,625

 
(66,279
)
 
(0.11
)
Add: Impairments
158,725

 
(34,837
)
 
123,888

 
0.21

 
131,795

 
(29,031
)
 
102,764

 
0.18

Less: Tax Reform Impact

 

 

 

 

 
(46,684
)
 
(46,684
)
 
(0.08
)
Adjustments to Net Income
192,630

 
(42,266
)
 
150,364

 
0.25

 
(158,882
)
 
(15,664
)
 
(174,546
)
 
(0.30
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP)
$
1,023,838

 
$
(236,953
)
 
$
786,885

 
$
1.35

 
$
929,458

 
$
(211,236
)
 
$
718,222

 
$
1.24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
578,219

 
 
 
 
 
 
 
577,035

Diluted
 
 
 
 
 
 
580,849

 
 
 
 
 
 
 
580,288









 
Twelve Months Ended
 
Twelve Months Ended
 
December 31, 2019
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Before
Tax
 
Income Tax Impact
 
After
Tax
 
Diluted Earnings per Share
 
Before
Tax
 
Income Tax Impact
 
After
Tax
 
Diluted Earnings per Share
Reported Net Income (GAAP)
$
3,545,267

 
$
(810,357
)
 
$
2,734,910

 
$
4.71

 
$
4,240,998

 
$
(821,958
)
 
$
3,419,040

 
$
5.89

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) Losses on Mark-to-Market Commodity Derivative Contracts
(180,275
)
 
39,567

 
(140,708
)
 
(0.24
)
 
165,640

 
(36,486
)
 
129,154

 
0.22

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
231,229

 
(50,750
)
 
180,479

 
0.31

 
(258,906
)
 
57,029

 
(201,877
)
 
(0.35
)
Less: Gains on Asset Dispositions, Net
(123,613
)
 
27,252

 
(96,361
)
 
(0.17
)
 
(174,562
)
 
37,860

 
(136,702
)
 
(0.24
)
Add: Impairments
274,974

 
(60,351
)
 
214,623

 
0.37

 
152,671

 
(33,629
)
 
119,042

 
0.21

Less: Tax Reform Impact

 

 

 

 

 
(110,335
)
 
(110,335
)
 
(0.19
)
Adjustments to Net Income
202,315

 
(44,282
)
 
158,033

 
0.27

 
(115,157
)
 
(85,561
)
 
(200,718
)
 
(0.35
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP)
$
3,747,582

 
$
(854,639
)
 
$
2,892,943

 
$
4.98

 
$
4,125,841

 
$
(907,519
)
 
$
3,218,322

 
$
5.54

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
577,670

 
 
 
 
 
 
 
576,578

Diluted
 
 
 
 
 
 
580,777

 
 
 
 
 
 
 
580,441








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 periods ended December 31, 2019 and 2018 and twelve-month periods ended December 31, 2019, 2018 and 2017 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 (Payable) Receivable, Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing and Financing Activities. EOG defines Free Cash Flow (Non-GAAP) for a given period as Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures (before acquisitions) incurred (Non-GAAP) during such period, as is illustrated below for the three months ended December 31, 2019 and 2018 and twelve months ended December 31, 2019, 2018 and 2017. EOG management uses this information for comparative purposes within the industry.
 
 
 
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2019
 
2018
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
Net Cash Provided by Operating Activities (GAAP)
$
1,807,204

 
$
2,085,228

 
$
8,163,180

 
$
7,768,608

 
$
4,265,336

 
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
Exploration Costs (excluding Stock-Based Compensation Expenses)
28,483

 
27,270

 
113,733

 
123,986

 
122,688

Other Non-Current Income Taxes - Net (Payable) Receivable
59,174

 
86,572

 
238,711

 
148,993

 
(513,404
)
Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
 
 
 
 
Accounts Receivable
85,937

 
(185,349
)
 
91,792

 
368,180

 
392,131

Inventories
(34,686
)
 
108,591

 
(90,284
)
 
395,408

 
174,548

Accounts Payable
(34,286
)
 
98,178

 
(168,539
)
 
(439,347
)
 
(324,192
)
Accrued Taxes Payable
47,925

 
55,570

 
(40,122
)
 
92,461

 
63,937

Other Assets
36,572

 
22,101

 
(358,001
)
 
125,435

 
658,609

Other Liabilities
38,304

 
(25,725
)
 
56,619

 
(10,949
)
 
89,871

Changes in Components of Working Capital Associated with Investing and Financing Activities
76,384

 
(205,599
)
 
115,061

 
(301,083
)
 
(89,992
)
 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
2,111,011

 
$
2,066,837

 
$
8,122,150

 
$
8,271,692

 
$
4,839,532

 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP) - Percentage Increase/Decrease
2
%
 
 
 
-2
 %
 
71
%
 
 
 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
2,111,011

 
$
2,066,837

 
$
8,122,150

 
$
8,271,692

 
$
4,839,532

Less:
 
 
 
 
 
 
 
 
 
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(1,388,233
)
 
(1,302,999
)
 
(6,234,454
)
 
(6,172,950
)
 
(4,228,859
)
Free Cash Flow (Non-GAAP) (b)
$
722,778

 
$
763,838

 
$
1,887,696

 
$
2,098,742

 
$
610,673

 
 
 
 
 
 
 
 
 
 





(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the three-month periods ended December 31, 2019 and 2018 and twelve-month periods ended December 31, 2019, 2018 and 2017:
 
 
 
 
 
 
 
 
 
 
Total Expenditures (GAAP)
$
1,506,061

 
$
1,504,438

 
$
6,900,450

 
$
6,706,359

 
$
4,612,746

Less:
 
 
 
 
 
 
 
 
 
Asset Retirement Costs
(34,537
)
 
(27,910
)
 
(186,088
)
 
(69,699
)
 
(55,592
)
Non-Cash Expenditures of Other Property, Plant and Equipment
(1,680
)
 
(547
)
 
(2,266
)
 
(49,484
)
 

Non-Cash Acquisition Costs of Unproved Properties
(33,317
)
 
(128,719
)
 
(97,704
)
 
(290,542
)
 
(255,711
)
Acquisition Costs of Proved Properties
(48,294
)
 
(44,263
)
 
(379,938
)
 
(123,684
)
 
(72,584
)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)
$
1,388,233

 
$
1,302,999

 
$
6,234,454

 
$
6,172,950

 
$
4,228,859

 
 
 
 
 
 
 
 
 
 
(b) To better align the presentation of free cash flow for comparative purposes within the industry, free cash flow has been updated to exclude dividends paid (GAAP) as a reconciling item for the three-month and twelve-month periods ending December 31, 2019. The comparative prior periods have been revised for this change in presentation.


Maintenance Capital Expenditures

The capital expenditures required to fund drilling as well as infrastructure requirements to keep oil production flat relative to 2019 across all premium oil plays.





EOG RESOURCES, INC.
Reconciliation of Discretionary Cash Flow
(Unaudited; in thousands)

Calculation of Free Cash Flow
(Unaudited; in thousands)
 
 
 
 
 
 
The following chart reconciles the twelve-month periods ended December 31, 2014, 2013 and 2012 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow (Non-GAAP). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Exploration Costs (excluding Stock-Based Compensation Expenses), Excess Tax Benefits from Stock-Based Conmpensation, 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, as is illustrated below for the twelve months ended December 31, 2014, 2013 and 2012. EOG management uses this information for comparative purposes within the industry.
 
 
 
 
Twelve Months Ended
 
December 31,
 
2014
 
2013
 
2012
 
 
 
 
 
 
Net Cash Provided by Operating Activities (GAAP)
$
8,649,155

 
$
7,329,414

 
$
5,236,777

 
 
 
 
 
 
Adjustments:
 
 
 
 
 
Exploration Costs (excluding Stock-Based Compensation Expenses)
157,453

 
134,531

 
159,182

Excess Tax Benefits from Stock-Based Compensation
99,459

 
55,831

 
67,035

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
Accounts Receivable
(84,982
)
 
23,613

 
178,683

Inventories
161,958

 
(53,402
)
 
156,762

Accounts Payable
(543,630
)
 
(178,701
)
 
17,150

Accrued Taxes Payable
(16,486
)
 
(75,142
)
 
(78,094
)
Other Assets
14,448

 
109,567

 
118,520

Other Liabilities
(75,420
)
 
20,382

 
(36,114
)
Changes in Components of Working Capital Associated with Investing and Financing Activities
103,414

 
51,361

 
(74,158
)
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
8,465,369

 
$
7,417,454

 
$
5,745,743

 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP) - Percentage Increase
14
%
 
29
%
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
8,465,369

 
$
7,417,454

 
$
5,745,743

Less:
 
 
 
 
 
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(8,292,090
)
 
(7,101,791
)
 
(7,539,994
)
Free Cash Flow (Non-GAAP) (b)
$
173,279

 
$
315,663

 
$
(1,794,251
)
 
 
 
 
 
 





(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the twelve-month periods ended December 31, 2014, 2013 and 2012:
 
 
 
 
 
 
Total Expenditures (GAAP)
$
8,631,906

 
$
7,361,457

 
$
7,753,828

Less:
 
 
 
 
 
Asset Retirement Costs
(195,630
)
 
(134,445
)
 
(126,987
)
Non-Cash Expenditures of Other Property, Plant and Equipment

 

 
(65,791
)
Non-Cash Acquisition Costs of Unproved Properties
(5,085
)
 
(5,007
)
 
(20,317
)
Acquisition Costs of Proved Properties
(139,101
)