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Section 1: 8-K (8-K)

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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 26, 2019

_______________

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


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

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

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


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

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

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

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

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

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 o

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. o



 
 
 
 
 




EOG RESOURCES, INC.

Item 2.02     Results of Operations and Financial Condition.

On February 26, 2019, EOG Resources, Inc. issued a press release announcing fourth quarter 2018 financial and operational results and first quarter and full year 2019 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 2018 financial and operational results attached hereto as Exhibit 99.1 is first quarter and full year 2019 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 26, 2019 (including the accompanying first quarter and full year 2019 forecast and benchmark commodity pricing information).


2



SIGNATURES

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

 
 
EOG RESOURCES, INC.
(Registrant)
 
 
 
 
 
 
 
 
 
Date: February 26, 2019
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 (EXHIBIT 99)

Exhibit
EXHIBIT 99.1


396885974_eoglogoa15.jpg

February 26, 2019

EOG Resources Reports Fourth Quarter and Full Year 2018 Results and Announces 2019 Capital Program
Earns Record Net Income in 2018 and Generates Significant Net Cash from Operating Activities and Free Cash Flow
Exceeds Fourth Quarter Crude Oil and NGL Production Target Midpoints
Increases Proved Reserves by 16% and Replaces 238% of 2018 Production at Sub-$10 Finding Cost
Targets Improved Capital Efficiency, Significant Investment in High-Quality New Drilling Potential and 12-16% U.S. Crude Oil Volume Growth in 2019, Funded with Net Cash from Operating Activities at $50 Oil

HOUSTON - EOG Resources, Inc. (EOG) today reported fourth quarter 2018 net income of $893 million, or $1.54 per share. This compares to fourth quarter 2017 net income of $2.4 billion, or $4.20 per share. For the full year 2018, EOG reported a company record net income of $3.4 billion, or $5.89 per share, compared to $2.6 billion, or $4.46 per share, for the full year 2017. Net cash from operating activities for the fourth quarter and full year 2018 was $2.1 billion and $7.8 billion, respectively.

Adjusted non-GAAP net income for the fourth quarter 2018 was $718 million, or $1.24 per share, compared to adjusted non-GAAP net income of $401 million, or $0.69 per share, for the same prior year period. Adjusted non-GAAP net income for the full year 2018 was $3.2 billion, or $5.54 per share, compared to adjusted non-GAAP net income of $648 million, or $1.12 per share, for the full year 2017. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.

Fourth Quarter and Full Year 2018 Review
EOG delivered exceptional financial and operating performance in 2018. The company generated record net income and free cash flow, while ending the year with strong improvements in well productivity and additional cost reductions. Total company crude oil volumes grew 19 percent to 399,900 barrels of oil per day (Bopd). Natural gas liquids production increased 31 percent, while natural gas volumes grew 11 percent, contributing to total company production growth of 18 percent.

In the fourth quarter 2018, EOG exceeded the high end of its target range for U.S. crude oil volumes by producing 430,300 Bopd, an increase of 17 percent compared to the same prior year period. Per-unit operating expenses declined during the fourth quarter 2018 compared to the same prior year period. Lower general and administrative expenses, transportation costs and depreciation, depletion and amortization expenses each contributed to the overall cost reduction.

EOG generated $2.1 billion of discretionary cash flow and incurred total expenditures of $1.5 billion in the fourth quarter 2018. After considering cash exploration and development expenditures, excluding acquisitions, of $1.3 billion and dividend payments of $127 million, the company generated free cash flow during the fourth quarter of $637 million. For the full year 2018 EOG generated a company record $1.7 billion of free cash flow. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.

“Our goal at EOG is to be one of the best companies in the S&P 500. Our stellar 2018 performance delivered a premium combination of high returns and double-digit production growth while generating record free cash flow,” said William R. “Bill” Thomas, Chairman and Chief Executive Officer. “Our 2018 results show that we can be competitive with the best companies across all sectors, and we remain relentlessly focused on further improving our cost structure and operating performance.”

2019 Capital Plan
EOG’s capital plan is custom-designed each year to increase returns and capital efficiencies. In 2019, EOG is allocating more capital to opportunistic, high quality new drilling potential and somewhat less capital to drilling in established areas. The company’s disciplined growth strategy emphasizes generating free cash flow while lowering well costs and per-unit operating expenses and driving improvement in well productivity. Retaining high-quality equipment and crews during the fourth quarter of 2018 positioned the company to further improve efficiencies and returns in 2019.




EOG expects to grow U.S. crude oil production by 12 to 16 percent, fund capital investment and pay the dividend with net cash from operating activities in 2019 at $50 oil. Exploration and development expenditures for 2019 are expected to range from $6.1 to $6.5 billion, including facilities and gathering, processing and other expenditures, excluding acquisitions and non-cash exchanges.

EOG expects to complete approximately 740 net wells in 2019 compared to 763 net wells in 2018. Activity will remain focused in EOG’s highest rate-of-return oil assets in the Delaware Basin, Eagle Ford, Rockies, Woodford and Bakken. The company’s investment in new potential areas in the United States includes spending for leasing and related infrastructure to drill wells in a number of new prospects in 2019.

“EOG’s disciplined 2019 capital plan delivers improved capital efficiency and strong high-return growth while making investments in new organic high-quality drilling potential to improve the future performance of the company,” Thomas said. “Our focus on innovation and operational execution, as well as our investment in new drilling potential, will continue to increase the quality of EOG’s premium portfolio. EOG is poised to further improve its position as one of the lowest cost oil producers in the global market, able to create shareholder value through commodity price cycles.”

Operating Highlights
EOG completed 262 net wells in the Delaware Basin and increased crude oil production 47% to 126,800 Bopd in 2018. The company made significant progress during 2018 in improving well productivity and reducing well costs. EOG refined spacing and development patterns, reduced drilling days and applied new completion technology designed to lower costs and improve well productivity.

EOG continues to drive growth and operating efficiencies in its premier South Texas Eagle Ford asset. In 2018, the company grew crude oil production 9% to 171,000 Bopd. Of the 304 net wells completed in 2018, EOG drilled a total of 65 wells with lateral lengths greater than 10,000 feet. These wells included the Slytherin C#3H, which, at 13,500 feet, was a company record in the Eagle Ford.

EOG’s Powder River Basin and Wyoming DJ Basin activity both contributed to the company’s 2018 crude oil production growth. In the Powder River Basin, the company brought eight wells on line during the fourth quarter targeting the Turner, Mowry and Parkman formations. The company plans to add infrastructure and further delineate the field and test additional targets in 2019 to be positioned to execute a more robust development program in the Niobrara and Mowry in 2020 and beyond. In the Wyoming DJ Basin, EOG generated further cost reductions during 2018 through efficiency improvements in drilling, completion and production operations. The company brought 20 wells to sales in the fourth quarter, all targeting the Codell formation. EOG expects further crude oil production growth from its high rate of return drilling in the DJ Basin in 2019.

EOG continued development of its premium play in the Eastern Anadarko Basin Woodford Oil Window, where it brought five wells on line in the fourth quarter. The company made significant progress in reducing well costs during 2018, and, as a result, has lowered its 2019 well cost target to $7.6 million.

In the Williston Basin, EOG realized significant operational improvements in 2018. The company drilled 20 net wells with an average treated lateral length of 9,500 feet per well. Efficient drilling performance delivered, on average, an additional 1,000 feet of lateral length per well in 2018 for the same cost as 2017. EOG’s Austin 45-1113H well set a company record in the basin with a spud-to-total depth time of 8.4 days.

Reserves
At year-end 2018, total company net proved reserves were 2,928 million barrels of oil equivalent (MMBoe), an increase of 16 percent compared to year-end 2017. Net proved reserve additions from all sources, excluding revisions due to price, replaced 238 percent of EOG’s 2018 production at a finding and development cost of $9.33 per barrel of oil equivalent. Revisions due to price increased net proved reserves by 35 MMBoe and asset divestitures decreased net proved reserves by 11 MMBoe. For more reserves detail and a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

For the 31st consecutive year, internal reserves estimates were within five percent of estimates independently prepared by DeGolyer and MacNaughton.

Financial Review
At December 31, 2018, EOG’s total debt outstanding was $6.1 billion for a debt-to-total capitalization ratio of 24 percent. Considering cash on the balance sheet at the end of the fourth quarter, EOG’s net debt was $4.5 billion for a net debt-to-total capitalization ratio of 19 percent. For a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.




EOG completed its previously announced agreement to divest all of its U.K. operations in the fourth quarter 2018. Proceeds from the U.K. divestment and other asset sales in 2018 totaled $227 million.

Fourth Quarter 2018 Results Webcast
Wednesday, February 27, 2019, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG website for one year.
http://investors.eogresources.com/Investors
 
About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States, Trinidad, and China. To learn more visit www.eogresources.com.

Investor Contacts
David Streit 713-571-4902
Neel Panchal 713-571-4884
John Wagner 713-571-4404

Media and Investor Contact
Kimberly Ehmer 713-571-4676

This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production, capital expenditures, costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," “aims,” "goal," "may," "will," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness or pay and/or increase dividends are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Furthermore, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow or discretionary cash flow, and certain related estimates regarding future performance, results and financial position. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG’s actual results may differ materially from such measures and estimates. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:

the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects;
the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production;
the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation and refining facilities;
the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG’s ability to retain mineral licenses and leases;



the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations; climate change and other environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties;
the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
the availability and cost of employees and other personnel, facilities, equipment, materials (such as water and tubulars) and services;
the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression, storage and transportation facilities;
the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
the extent to which EOG is successful in its completion of planned asset dispositions;
the extent and effect of any hedging activities engaged in by EOG;
the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
the use of competing energy sources and the development of alternative energy sources;
the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
acts of war and terrorism and responses to these acts;
physical, electronic and cybersecurity breaches; and
the other factors described under ITEM 1A, Risk Factors, on pages 13 through 22 of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only “proved” reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also “probable” reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as “possible” reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves, “resource potential” and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC’s latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov. In addition, reconciliation and calculation schedules for non-GAAP financial measures can be found on the EOG website at www.eogresources.com.






EOG RESOURCES, INC.
Financial Report
(Unaudited; in millions, except per share data)
 
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues and Other
$
4,574.5

 
$
3,340.4

 
$
17,275.4

 
$
11,208.3

Net Income
$
892.8

 
$
2,430.5

 
$
3,419.0

 
$
2,582.6

Net Income Per Share
 
 
 
 
 
 
 
 
 
 
 
Basic
$
1.55

 
$
4.22

 
$
5.93

 
$
4.49

Diluted
$
1.54

 
$
4.20

 
$
5.89

 
$
4.46

Average Number of Common Shares
 
 
 
 
 
 
 
 
 
 
 
Basic
   
577.0

 
 
575.4

 
 
576.6

 
 
574.6

Diluted
 
580.3

 
 
579.2

 
 
580.4

 
 
578.7

 
 
 
 
 
 
 
 
 
 
 
 
Summary Income Statements
(Unaudited; in thousands, except per share data)
 
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2018
 
2017
 
2018
 
2017
Operating Revenues and Other
 
 
 
 
 
 
 
Crude Oil and Condensate
$
2,383,326

 
 $
1,929,471

 
$
9,517,440

 
$
6,256,396

Natural Gas Liquids
 
266,037

 
 
249,172

 
 
1,127,510

 
 
729,561

Natural Gas
 
389,213

 
 
246,922

 
 
1,301,537

 
 
921,934

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

 
 
(45,032
)
 
 
(165,640
)
 
 
19,828

Gathering, Processing and Marketing
 
1,331,105

 
 
1,008,385

 
 
5,230,355

 
 
3,298,087

Gains (Losses) on Asset Dispositions, Net
 
79,904

 
 
(65,220
)
 
 
174,562

 
 
(99,096
)
Other, Net
 
(7,144
)
 
 
16,741

 
 
89,635

 
 
81,610

Total
 
4,574,536

 
 
3,340,439

 
 
17,275,399

 
 
11,208,320

Operating Expenses
 
 
 
 
 
 
 
 
 
 
 
Lease and Well
 
346,442

 
 
281,941

 
 
1,282,678

 
 
1,044,847

Transportation Costs
 
196,095

 
 
191,717

 
 
746,876

 
 
740,352

Gathering and Processing Costs
 
112,396

 
 
43,295

 
 
436,973

 
 
148,775

Exploration Costs
 
33,862

 
 
22,941

 
 
148,999

 
 
145,342

Dry Hole Costs
 
145

 
 
4,532

 
 
5,405

 
 
4,609

Impairments
 
186,087

 
 
153,442

 
 
347,021

 
 
479,240

Marketing Costs
 
1,349,416

 
 
1,009,566

 
 
5,203,243

 
 
3,330,237

Depreciation, Depletion and Amortization
 
919,963

 
 
881,745

 
 
3,435,408

 
 
3,409,387

General and Administrative
 
116,904

 
 
117,005

 
 
426,969

 
 
434,467

Taxes Other Than Income
 
190,086

 
 
158,343

 
 
772,481

 
 
544,662

Total
 
3,451,396

 
 
2,864,527

 
 
12,806,053

 
 
10,281,918

 
 
 
 
 
 
 
 
 
 
 
 
Operating Income
 
1,123,140

 
 
475,912

 
 
4,469,346

 
 
926,402

 
 
 
 
 
 
 
 
 
 
 
 
Other Income, Net
 
21,220

 
 
803

 
 
16,704

 
 
9,152

 
 
 
 
 
 
 
 
 
 
 
 
Income Before Interest Expense and Income Taxes
 
1,144,360

 
 
476,715

 
 
4,486,050

 
 
935,554

 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense, Net
 
56,020

 
 
63,362

 
 
245,052

 
 
274,372

 
 
 
 
 
 
 
 
 
 
 
 
Income Before Income Taxes
 
1,088,340

 
 
413,353

 
 
4,240,998

 
 
661,182

 
 
 
 
 
 
 
 
 
 
 
 
Income Tax Provision (Benefit)
 
195,572

 
 
(2,017,115
)
 
 
821,958

 
 
(1,921,397
)
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
892,768

 
 $
2,430,468

 
$
3,419,040

 
$
2,582,579

 
 
 
 
 
 
 
 
 
 
 
 
Dividends Declared per Common Share
$
0.2200

 
$
0.1675

 
$
0.8100

 
$
0.6700

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





EOG RESOURCES, INC.
Operating Highlights
(Unaudited)
 
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2018
 
2017
 
2018
 
2017
Wellhead Volumes and Prices
 
 
 
Crude Oil and Condensate Volumes (MBbld) (A)
 
 
 
United States
 
430.3

 
 
366.9

 
 
394.8

 
 
335.0

Trinidad
 
0.8

 
 
1.1

 
 
0.8

 
 
0.9

Other International (B)
 
4.5

 
 
0.1

 
 
4.3

 
 
0.8

Total
 
435.6

 
 
368.1

 
 
399.9

 
 
336.7

 
 
 
 
 
 
 
 
 
 
 
 
Average Crude Oil and Condensate Prices ($/Bbl) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
59.37

 
$
56.95

 
$
65.16

 
$
50.91

Trinidad
 
51.80

 
 
46.56

 
 
57.26

 
 
42.30

Other International (B)
 
70.44

 
 
45.72

 
 
71.45

 
 
57.20

Composite
 
59.47

 
 
56.97

 
 
65.21

 
 
50.91

 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Liquids Volumes (MBbld) (A)
 
 
 
 
 
 
 
 
 
 
 
United States
 
122.8

 
 
100.6

 
 
116.1

 
 
88.4

Other International (B)
 

 
 

 
 

 
 

Total
 
122.8

 
 
100.6

 
 
116.1

 
 
88.4

 
 
 
 
 
 
 
 
 
 
 
 
Average Natural Gas Liquids Prices ($/Bbl) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
23.54

 
$
26.92

 
$
26.60

 
$
22.61

Other International (B)
 

 
 

 
 

 
 

Composite
 
23.54

 
 
26.92

 
 
26.60

 
 
22.61

 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Volumes (MMcfd) (A)
 
 
 
 
 
 
 
 
 
 
 
United States
 
974

 
 
829

 
 
923

 
 
765

Trinidad
 
230

 
 
299

 
 
266

 
 
313

Other International (B)
 
32

 
 
32

 
 
30

 
 
25

Total
 
1,236

 
 
1,160

 
 
1,219

 
 
1,103

 
 
 
 
 
 
 
 
 
 
 
 
Average Natural Gas Prices ($/Mcf) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
3.50

 
$
2.17

 
$
2.88

 
$
2.20

Trinidad
 
3.03

 
 
2.52

 
 
2.94

 
 
2.38

Other International (B)
 
4.02

 
 
4.23

 
 
4.08

 
 
3.89

Composite
 
3.42

(D) 
 
2.31

 
 
2.92

(D) 
 
2.29

 
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Equivalent Volumes (MBoed) (E)
 
 
 
 
 
 
 
 
 
 
 
United States
 
715.5

 
 
605.6

 
 
664.7

 
 
551.0

Trinidad
 
39.0

 
 
51.0

 
 
45.1

 
 
53.0

Other International (B)
 
10.0

 
 
5.4

 
 
9.4

 
 
4.9

Total
 
764.5

 
 
662.0

 
 
719.2

 
 
608.9

 
 
 
 
 
 
 
 
 
 
 
 
Total MMBoe (E)
 
70.3

 
 
60.9

 
 
262.5

 
 
222.3


(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, 2018).
(D)
Includes positive revenue adjustments of $0.49 per Mcf and $0.44 per Mcf for the three and twelve months ended December 31, 2018, respectively, related to the adoption of ASU 2014-09, "Revenue From Contracts with Customers" (ASU 2014-09) (see Note 1 to the Consolidated Financial Statements in EOG's Annual Report on Form 10-K for the year period ended December 31, 2018). In connection with the adoption of ASU 2014-09, EOG presents natural gas processing fees for certain processing and marketing agreements as Gathering and Processing Costs, instead of as a deduction to Natural Gas Revenues.
(E)
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,
 
2018
 
2017
ASSETS
Current Assets
 
 
 
 
 
Cash and Cash Equivalents
$
1,555,634

 
$
834,228

Accounts Receivable, Net
 
1,915,215

 
 
1,597,494

Inventories
 
859,359

 
 
483,865

Assets from Price Risk Management Activities
 
23,806

 
 
7,699

Income Taxes Receivable
 
427,909

 
 
113,357

Other
 
275,467

 
 
242,465

Total
 
5,057,390

 
 
3,279,108

 
Property, Plant and Equipment
 
 
 
 
 
Oil and Gas Properties (Successful Efforts Method)
 
57,330,016

 
 
52,555,741

Other Property, Plant and Equipment
 
4,220,665

 
 
3,960,759

Total Property, Plant and Equipment
 
61,550,681

 
 
56,516,500

Less: Accumulated Depreciation, Depletion and Amortization
 
(33,475,162
)
 
 
(30,851,463
)
Total Property, Plant and Equipment, Net
 
28,075,519

 
 
25,665,037

Deferred Income Taxes
 
777

 
 
17,506

Other Assets
 
800,788

 
 
871,427

Total Assets
$
33,934,474

 
$
29,833,078

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 
 
 
 
 
Accounts Payable
$
2,239,850

 
$
1,847,131

Accrued Taxes Payable
 
214,726

 
 
148,874

Dividends Payable
 
126,971

 
 
96,410

Liabilities from Price Risk Management Activities
 

 
 
50,429

Current Portion of Long-Term Debt
 
913,093

 
 
356,235

Other
 
233,724

 
 
226,463

Total
 
3,728,364

 
 
2,725,542

 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt
 
5,170,169

 
 
6,030,836

Other Liabilities
 
1,258,355

 
 
1,275,213

Deferred Income Taxes
 
4,413,398

 
 
3,518,214

Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity
 
 
 
 
 
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 580,408,117 Shares and 578,827,768 Shares Issued at December 31, 2018 and 2017, respectively
 
205,804

 
 
205,788

Additional Paid in Capital
 
5,658,794

 
 
5,536,547

Accumulated Other Comprehensive Loss
 
(1,358
)
 
 
(19,297
)
Retained Earnings
 
13,543,130

 
 
10,593,533

Common Stock Held in Treasury, 385,042 Shares and 350,961 Shares at December 31, 2018 and 2017, respectively
 
(42,182
)
 
 
(33,298
)
Total Stockholders' Equity
 
19,364,188

 
 
16,283,273

Total Liabilities and Stockholders' Equity
$
33,934,474

 
$
29,833,078








EOG RESOURCES, INC.
Summary Statements of Cash Flows
(Unaudited; in thousands)
 
Twelve Months Ended
 
December 31,
 
2018
 
2017
Cash Flows from Operating Activities
 
 
 
 
 
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
 
 
 
 
 
Net Income
$
3,419,040

 
$
2,582,579

Items Not Requiring (Providing) Cash
 
 
 
 
 
Depreciation, Depletion and Amortization
 
3,435,408

 
 
3,409,387

Impairments
 
347,021

 
 
479,240

Stock-Based Compensation Expenses
 
155,337

 
 
133,849

Deferred Income Taxes
 
894,156

 
 
(1,473,872
)
(Gains) Losses on Asset Dispositions, Net
 
(174,562
)
 
 
99,096

Other, Net
 
7,066

 
 
6,546

Dry Hole Costs
 
5,405

 
 
4,609

Mark-to-Market Commodity Derivative Contracts
 
 
 
 
 
Total (Gains) Losses
 
165,640

 
 
(19,828
)
Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
 
(258,906
)
 
 
7,438

Other, Net
 
3,108

 
 
1,204

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
Accounts Receivable
 
(368,180
)
 
 
(392,131
)
Inventories
 
(395,408
)
 
 
(174,548
)
Accounts Payable
 
439,347

 
 
324,192

Accrued Taxes Payable
 
(92,461
)
 
 
(63,937
)
Other Assets
 
(125,435
)
 
 
(658,609
)
Other Liabilities
 
10,949

 
 
(89,871
)
Changes in Components of Working Capital Associated with Investing and Financing Activities
 
301,083

 
 
89,992

Net Cash Provided by Operating Activities
 
7,768,608

 
 
4,265,336

 
 
 
 
 
 
Investing Cash Flows
 
 
 
 
 
Additions to Oil and Gas Properties
 
(5,839,294
)
 
 
(3,950,918
)
Additions to Other Property, Plant and Equipment
 
(237,181
)
 
 
(173,324
)
Proceeds from Sales of Assets
 
227,446

 
 
226,768

Other Investing Activities
 
(19,993
)
 
 

Changes in Components of Working Capital Associated with Investing Activities
 
(301,140
)
 
 
(89,935
)
Net Cash Used in Investing Activities
 
(6,170,162
)
 
 
(3,987,409
)
 
 
 
 
 
 
Financing Cash Flows
 
 
 
 
 
Long-Term Debt Repayments
 
(350,000
)
 
 
(600,000
)
Dividends Paid
 
(438,045
)
 
 
(386,531
)
Treasury Stock Purchased
 
(63,456
)
 
 
(63,408
)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan
 
20,560

 
 
20,840

Repayment of Capital Lease Obligation
 
(8,219
)
 
 
(6,555
)
Changes in Components of Working Capital Associated with Financing Activities
 
57

 
 
(57
)
Net Cash Used in Financing Activities
 
(839,103
)
 
 
(1,035,711
)
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash
 
(37,937
)
 
 
(7,883
)
 
 
 
 
 
 
Increase (Decrease) in Cash and Cash Equivalents
 
721,406

 
 
(765,667
)
Cash and Cash Equivalents at Beginning of Period
 
834,228

 
 
1,599,895

Cash and Cash Equivalents at End of Period
$
1,555,634

 
$
834,228






EOG RESOURCES, INC.
Fourth Quarter 2018 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
 
42

 
37

 
7,000

 
1,950

 
600

 
3.7

 
3,150

Bone Spring
 
13

 
11

 
5,300

 
1,550

 
300

 
1.9

 
2,150

Leonard
 
2

 
1

 
4,600

 
1,200

 
550

 
3.7

 
2,350

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Texas Eagle Ford
 
82

 
78

 
7,300

 
1,300

 
150

 
0.8

 
1,600

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Texas Austin Chalk
 
6

 
5

 
5,500

 
2,650

 
550

 
2.6

 
3,650

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Powder River Basin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turner
 
4

 
3

 
9,700

 
800

 
200

 
2.4

 
1,400

Mowry
 
2

 
2

 
9,200

 
700

 
450

 
5.5

 
2,050

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DJ Basin Codell
 
20

 
10

 
9,600

 
700

 
50

 
0.3

 
800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Williston Basin Bakken/Three Forks
 
7

 
5

 
10,100

 
550

 
25

 
0.1

 
600

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anadarko Basin Woodford Oil Window
 
5

 
4

 
9,200

 
600

 
75

 
0.4

 
750

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.
Quantitative Reconciliation of Adjusted Net Income (Non-GAAP)
To Net Income (GAAP)
(Unaudited; in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following chart adjusts the three-month and twelve-month periods ended December 31, 2018 and 2017 reported Net Income (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions in 2018 and 2017, to add back impairment charges related to certain of EOG's assets in 2018 and 2017, to add back an early lease termination payment as the result of a legal settlement in 2017, to add back the transaction costs for the formation of a joint venture in 2017, to add back certain joint interest billings deemed uncollectible in 2017 and to eliminate certain adjustments in 2018 and 2017 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, 2018
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
$
1,088,340

 
$
(195,572
)
 
$
892,768

 
$
1.54

 
$
413,353

 
$
2,017,115

 
$
2,430,468

 
$
4.20

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) Losses on Mark-to-Market Commodity Derivative Contracts
 
(132,095
)
 
 
29,096

 
 
(102,999
)
 
 
(0.18
)
 
 
45,032

 
 
(16,142
)
 
 
28,890

 
 
0.05

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
 
(78,678
)
 
 
17,330

 
 
(61,348
)
 
 
(0.11
)
 
 
2,708

 
 
(971
)
 
 
1,737

 
 

Add: Net (Gains) Losses on Asset Dispositions
 
(79,904
)
 
 
13,625

 
 
(66,279
)
 
 
(0.11
)
 
 
65,220

 
 
(23,315
)
 
 
41,905

 
 
0.07

Add: Impairments
 
131,795

 
 
(29,031
)
 
 
102,764

 
 
0.18

 
 
100,304

 
 
(35,954
)
 
 
64,350

 
 
0.11

Add: Joint Interest Billings Deemed Uncollectible
 

 
 

 
 

 
 

 
 
4,528

 
 
(1,623
)
 
 
2,905

 
 
0.01

Less: Tax Reform Impact
 

 
 
(46,684
)
 
 
(46,684
)
 
 
(0.08
)
 
 

 
 
(2,169,376
)
 
 
(2,169,376
)
 
 
(3.75
)
Adjustments to Net Income
 
(158,882
)
 
 
(15,664
)
 
 
(174,546
)
 
 
(0.30
)
 
 
217,792

 
 
(2,247,381
)
 
 
(2,029,589
)
 
 
(3.51
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP)
$
929,458

 
$
(211,236
)
 
$
718,222

 
$
1.24

 
$
631,145

 
$
(230,266
)
 
$
400,879

 
$
0.69

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
 
 
577,035

 
 
 
 
 
 
 
 
 
 
 
575,394

Diluted
 
 
 
 
 
 
 
 
 
 
580,288

 
 
 
 
 
 
 
 
 
 
 
579,203









 
 
Twelve Months Ended
 
 
Twelve Months Ended
 
 
December 31, 2018
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
$
4,240,998

 
$
(821,958
)
 
$
3,419,040

 
$
5.89

 
$
661,182

 
$
1,921,397

 
$
2,582,579

 
$
4.46

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) Losses on Mark-to-Market Commodity Derivative Contracts
 
165,640

 
 
(36,486
)
 
 
129,154

 
 
0.22

 
 
(19,828
)
 
 
7,107

 
 
(12,721
)
 
 
(0.02
)
Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
 
(258,906
)
 
 
57,029

 
 
(201,877
)
 
 
(0.35
)
 
 
7,438

 
 
(2,666
)
 
 
4,772

 
 
0.01

Add: Net (Gains) Losses on Asset Dispositions
 
(174,562
)
 
 
37,860

 
 
(136,702
)
 
 
(0.24
)
 
 
99,096

 
 
(35,270
)
 
 
63,826

 
 
0.11

Add: Impairments
 
152,671

 
 
(33,629
)
 
 
119,042

 
 
0.21

 
 
261,452

 
 
(93,718
)
 
 
167,734

 
 
0.29

Add: Legal Settlement - Early Lease Termination
 

 
 

 
 

 
 

 
 
10,202

 
 
(3,657
)
 
 
6,545

 
 
0.01

Add: Joint Venture Transaction Costs
 

 
 

 
 

 
 

 
 
3,056

 
 
(1,095
)
 
 
1,961

 
 

Add: Joint Interest Billings Deemed Uncollectible
 

 
 

 
 

 
 

 
 
4,528

 
 
(1,623
)
 
 
2,905

 
 
0.01

Less: Tax Reform Impact
 

 
 
(110,335
)
 
 
(110,335
)
 
 
(0.19
)
 
 

 
 
(2,169,376
)
 
 
(2,169,376
)
 
 
(3.75
)
Adjustments to Net Income
 
(115,157
)
 
 
(85,561
)
 
 
(200,718
)
 
 
(0.35
)
 
 
365,944

 
 
(2,300,298
)
 
 
(1,934,354
)
 
 
(3.34
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP)
$
4,125,841

 
$
(907,519
)
 
$
3,218,322

 
$
5.54

 
$
1,027,126

 
$
(378,901
)
 
$
648,225

 
$
1.12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
 
 
576,578

 
 
 
 
 
 
 
 
 
 
 
574,620

Diluted
 
 
 
 
 
 
 
 
 
 
580,441

 
 
 
 
 
 
 
 
 
 
 
578,693








EOG RESOURCES, INC.
Quantitative Reconciliation of Discretionary Cash Flow (Non-GAAP)
To Net Cash Provided by Operating Activities (GAAP)
(Unaudited; in thousands)

Calculation of Free Cash Flow (Non-GAAP)
(Unaudited; in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
The following chart reconciles the three-month and twelve-month periods ended December 31, 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 Receivable (Payable), Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing and Financing Activities. EOG defines Free Cash Flow (Non-GAAP) for a given period as Discretionary Cash Flow (Non-GAAP) (see below reconciliation) for such period less the total cash capital expenditures excluding acquisitions incurred (Non-GAAP) during such period and dividends paid (GAAP) during such period, as is illustrated below for the three months and twelve months ended December 31, 2018. EOG management uses this information for comparative purposes within the industry.
 
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
Net Cash Provided by Operating Activities (GAAP)
$
2,085,228

 
$
1,327,548

 
$
7,768,608

 
$
4,265,336

 
 
 
 
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
Exploration Costs (excluding Stock-Based Compensation Expenses)
 
27,270

 
 
16,420

 
 
123,986

 
 
122,688

Other Non-Current Income Taxes - Net Receivable (Payable)
 
86,572

 
 
(513,404
)
 
 
148,993

 
 
(513,404
)
Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
 
 
 
 
 
 
Accounts Receivable
 
(185,349
)
 
 
366,686

 
 
368,180

 
 
392,131

Inventories
 
108,591

 
 
156,874

 
 
395,408

 
 
174,548

Accounts Payable
 
98,178

 
 
(211,298
)
 
 
(439,347
)
 
 
(324,192
)
Accrued Taxes Payable
 
55,570

 
 
13,970

 
 
92,461

 
 
63,937

Other Assets
 
22,101

 
 
574,669

 
 
125,435

 
 
658,609

Other Liabilities
 
(25,725
)
 
 
20,647

 
 
(10,949
)
 
 
89,871

Changes in Components of Working Capital Associated with Investing and Financing Activities
 
(205,599
)
 
 
(210,365
)
 
 
(301,083
)
 
 
(89,992
)
 
 
 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
2,066,837

 
$
1,541,747

 
$
8,271,692

 
$
4,839,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP) - Percentage Increase
 
34
%
 
 
 
 
 
71
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
2,066,837

 
 
 
 
$
8,271,692

 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Total Cash Expenditures Excluding Acquisitions (Non-GAAP) (a)
 
(1,302,999
)
 
 
 
 
 
(6,172,950
)
 
 
 
Dividends Paid (GAAP)
 
(126,970
)
 
 
 
 
 
(438,045
)
 
 
 
Free Cash Flow (Non-GAAP)
$
636,868

 
 
 
 
$
1,660,697

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Expenditures Excluding Acquisitions (Non-GAAP) for the three months and twelve months ended December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Total Expenditures (GAAP)
$
1,504,438

 
 
 
 
$
6,706,359

 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
Asset Retirement Costs
 
(27,910
)
 
 
 
 
 
(69,699
)
 
 
 
Non-Cash Expenditures of Other Property, Plant and Equipment
 
(547
)
 
 
 
 
 
(49,484
)
 
 
 
Non-Cash Acquisition Costs of Unproved Properties
 
(128,719
)
 
 
 
 
 
(290,542
)
 
 
 
Acquisition Costs of Proved Properties
 
(44,263
)
 
 
 
 
 
(123,684
)
 
 
 
Total Cash Expenditures Excluding Acquisitions (Non-GAAP)
$
1,302,999

 
 
 
 
$
6,172,950

 
 
 






EOG RESOURCES, INC.
Quantitative Reconciliation of Adjusted Earnings Before Interest Expense, Net,
Income Taxes, Depreciation, Depletion and Amortization, Exploration Costs,
Dry Hole Costs, Impairments and Additional Items (Adjusted EBITDAX)
(Non-GAAP) to Net Income (GAAP)
(Unaudited; in thousands)