Toggle SGML Header (+)


Section 1: 8-K (8-K)

Document
false0000821189 0000821189 2019-08-01 2019-08-01


 
 
 
 
 

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

FORM 8-K

CURRENT REPORT

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

Date of Report (Date of earliest event reported): August 1, 2019

_______________

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 August 1, 2019, EOG Resources, Inc. issued a press release announcing second quarter 2019 financial and operational results and third 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 second quarter 2019 financial and operational results attached hereto as Exhibit 99.1 is third 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 August 1, 2019 (including the accompanying third 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: August 1, 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-99.1 (PRESS RELEASE OF EOG RESOURCES, INC.)

Exhibit
EXHIBIT 99.1


399014238_eoglogoa25.jpg
August 1, 2019

EOG Resources Reports Outstanding Second Quarter 2019 Results; Generates Significant Returns, Growth and Cash Flow at Lower Oil Prices
Crude Oil Production Increased 18 Percent YOY and Exceeded Target with Capital Expenditures Below Target
Generated Significant Net Cash From Operating Activities and Free Cash Flow
Reduced Unit Cash Operating Costs 7 Percent YOY and Lowered YTD Well Costs 4 Percent
 
HOUSTON - EOG Resources, Inc. (EOG) today reported second quarter 2019 net income of $848 million, or $1.46 per share, compared with second quarter 2018 net income of $697 million, or $1.20 per share. Net cash provided by operating activities for the second quarter 2019 was $2.7 billion.

Adjusted non-GAAP net income for the second quarter 2019 was $762 million, or $1.31 per share, compared with adjusted non-GAAP net income of $795 million, or $1.37 per share, for the same prior year period.

EOG generated $2.1 billion of discretionary cash flow in the second quarter 2019, one percent more than the same prior year period despite a 12 percent decline in the NYMEX WTI benchmark price. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.
 
Second Quarter 2019 Operating Review
EOG delivered excellent operational and financial results in the second quarter 2019, extending its strong momentum from the first quarter. The company continues to benefit from operating a consistently-paced development program with meaningful scale across multiple basins. Innovations in drilling, completions and production, along with targeted infrastructure investments, are contributing to the capital productivity improvements realized through the second quarter.

For the second consecutive quarter, crude oil production volumes exceeded the target range while capital expenditures were below the target range. Second quarter 2019 total company crude oil volumes grew 18 percent year-over-year to 455,700 barrels of oil per day, a new company record. Compared to the second quarter 2018, natural gas liquids (NGL) production increased 16 percent, while natural gas volumes grew 10 percent, contributing to total company production growth of 16 percent. 
 
Cash operating costs declined by seven percent during the second quarter 2019 on a per-unit basis compared to the same prior year period. Lower transportation and lease and well costs contributed to the overall cost reduction. EOG’s marketing operations added to the strong second quarter financial performance, as the average price of U.S. crude oil sales was $1.18 per barrel higher than the average NYMEX WTI price. Weaker NGL and natural gas markets reduced price realizations for these products compared to the same prior year period.
 



EOG generated $2.1 billion of discretionary cash flow in the second quarter 2019 and incurred total expenditures of $1.7 billion, including $1.6 billion of cash capital expenditures before acquisitions. After considering dividend payments of $127 million, the company generated free cash flow of $352 million during the second quarter. Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.
 
“Our goal remains to be one of the best companies in any industry in the S&P 500. EOG is positioned to generate significant shareholder value even in lower oil price environments. Today, EOG can generate double-digit returns, double-digit organic growth, free cash flow and grow the dividend to a market competitive yield. And we are poised to further improve our financial performance going forward,” said William R. “Bill” Thomas, Chairman and Chief Executive Officer. “EOG is committed to disciplined, environmentally responsible operational execution. Every facet of the company is generating improved performance each quarter, from drilling and completions to production and marketing. To put it simply, EOG’s business is stronger than ever.”
 
Financial Review
EOG further strengthened its financial position during the second quarter 2019. The company repaid a $900 million bond that reached maturity in June 2019 with cash on hand. At June 30, 2019, EOG’s total debt outstanding was $5.2 billion for a debt-to-total capitalization ratio of 20 percent. Considering cash on the balance sheet at the end of the second quarter, EOG’s net debt was $4.0 billion for a net debt-to-total capitalization ratio of 16 percent. This is down significantly from 24 percent at the end of the same prior year period. For a reconciliation of non-GAAP measures to GAAP measures, please refer to the attached tables.

Second Quarter 2019 Results Webcast
Friday, August 2, 2019, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG website for one year.
http://investors.eogresources.com/Investors
 
About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States, Trinidad, and China. To learn more visit www.eogresources.com.






Investor Contacts
David Streit 713-571-4902
Neel Panchal 713-571-4884

Media and Investor Contact
Kimberly Ehmer 713-571-4676

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

the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects;
the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production;
the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation and refining facilities;
the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG’s ability to retain mineral licenses and leases;
the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations; climate change and other environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations imposing conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties;
the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
the availability and cost of employees and other personnel, facilities, equipment, materials (such as water and tubulars) and services;



the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression, storage and transportation facilities;
the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
the extent to which EOG is successful in its completion of planned asset dispositions;
the extent and effect of any hedging activities engaged in by EOG;
the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
the use of competing energy sources and the development of alternative energy sources;
the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
acts of war and terrorism and responses to these acts;
physical, electronic and cybersecurity breaches; and
the other factors described under ITEM 1A, Risk Factors, on pages 13 through 22 of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

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

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







EOG RESOURCES, INC.
Financial Report
(Unaudited; in millions, except per share data)
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Operating Revenues and Other
$
4,697.6

 
$
4,238.1

 
$
8,756.3

 
$
7,919.2

Net Income
$
847.8

 
$
696.7

 
$
1,483.3

 
$
1,335.3

Net Income Per Share
 
 
 
 
 
 
 
Basic
$
1.47

 
$
1.21

 
$
2.57

 
$
2.32

Diluted
$
1.46

 
$
1.20

 
$
2.56

 
$
2.30

Average Number of Common Shares
 
 
 
 
 
 
 
Basic
577.5

 
576.1

 
577.3

 
576.0

Diluted
580.2

 
580.4

 
580.2

 
580.0

 
 
 
 
 
 
 
 
Summary Income Statements
(Unaudited; in thousands, except per share data)
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Operating Revenues and Other
 
 
 
 
Crude Oil and Condensate
$
2,528,866

 
$
2,377,528

 
$
4,729,269

 
$
4,478,836

Natural Gas Liquids
186,374

 
286,354

 
405,012

 
507,769

Natural Gas
269,892

 
300,845

 
604,864

 
600,611

Gains (Losses) on Mark-to-Market Commodity Derivative Contracts
177,300

 
(185,883
)
 
156,720

 
(245,654
)
Gathering, Processing and Marketing
1,501,386

 
1,436,436

 
2,787,040

 
2,538,258

Gains (Losses) on Asset Dispositions, Net
8,009

 
(6,317
)
 
4,173

 
(21,286
)
Other, Net
25,803

 
29,114

 
69,194

 
60,705

Total
4,697,630

 
4,238,077

 
8,756,272

 
7,919,239

Operating Expenses
 
 
 
 
 
 
 
Lease and Well
347,281

 
314,604

 
683,572

 
614,668

Transportation Costs
174,101

 
177,797

 
350,623

 
354,754

Gathering and Processing Costs
112,643

 
109,169

 
223,938

 
210,514

Exploration Costs
32,522

 
47,478

 
68,846

 
82,314

Dry Hole Costs
3,769

 
4,902

 
3,863

 
4,902

Impairments
112,130

 
51,708

 
184,486

 
116,317

Marketing Costs
1,500,915

 
1,420,463

 
2,770,972

 
2,526,853

Depreciation, Depletion and Amortization
957,304

 
848,674

 
1,836,899

 
1,597,265

General and Administrative
121,780

 
104,083

 
228,452

 
198,781

Taxes Other Than Income
204,414

 
194,268

 
397,320

 
373,352

Total
3,566,859

 
3,273,146

 
6,748,971

 
6,079,720

 
 
 
 
 
 
 
 
Operating Income
1,130,771

 
964,931

 
2,007,301

 
1,839,519

 
 
 
 
 
 
 
 
Other Income (Expense), Net
8,503

 
(8,551
)
 
14,115

 
(7,824
)
 
 
 
 
 
 
 
 
Income Before Interest Expense and Income Taxes
1,139,274

 
956,380

 
2,021,416

 
1,831,695

 
 
 
 
 
 
 
 
Interest Expense, Net
49,908

 
63,444

 
104,814

 
125,400

 
 
 
 
 
 
 
 
Income Before Income Taxes
1,089,366

 
892,936

 
1,916,602

 
1,706,295

 
 
 
 
 
 
 
 
Income Tax Provision
241,525

 
196,205

 
433,335

 
370,975

 
 
 
 
 
 
 
 
Net Income
$
847,841

 
$
696,731

 
$
1,483,267

 
$
1,335,320

 
 
 
 
 
 
 
 
Dividends Declared per Common Share
$
0.2875

 
$
0.1850

 
$
0.5075

 
$
0.3700

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





EOG RESOURCES, INC.
Operating Highlights
(Unaudited)
 
 
 
 
Three Months Ended
 
 
 
Six Months Ended
 
 
 
June 30,
 
 
 
June 30,
 
 
 
2019
 
2018
 
% Change
 
2019
 
2018
 
% Change
Wellhead Volumes and Prices
 
 
 
 
 
 
 
 
 
 
 
Crude Oil and Condensate Volumes (MBbld) (A)
 
 
 
 
 
 
 
United States
454.9

 
379.2

 
20
 %
 
445.1

 
369.5

 
20
 %
Trinidad
0.6

 
0.8

 
-25
 %
 
0.7

 
0.9

 
-22
 %
Other International (B)
0.2

 
4.6

 
-96
 %
 

 
3.6

 
-100
 %
Total
455.7

 
384.6

 
18
 %
 
445.8

 
374.0

 
19
 %
 
 
 
 
 
 
 
 
 
 
 
 
Average Crude Oil and Condensate Prices ($/Bbl) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
61.01

 
$
67.91

 
-10
 %
 
$
58.63

 
$
66.13

 
-11
 %
Trinidad
49.56

 
60.57

 
-18
 %
 
46.62

 
57.59

 
-19
 %
Other International (B)
55.07

 
70.88

 
-22
 %
 
57.78

 
71.14

 
-19
 %
Composite
60.99

 
67.93

 
-10
 %
 
58.61

 
66.16

 
-11
 %
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Liquids Volumes (MBbld) (A)
 
 
 
 
 
 
 
 
 
 
 
United States
131.1

 
112.9

 
16
 %
 
125.4

 
106.8

 
17
 %
Other International (B)

 

 
 
 

 

 
 
Total
131.1

 
112.9

 
16
 %
 
125.4

 
106.8

 
17
 %
 
 
 
 
 
 
 
 
 
 
 
 
Average Natural Gas Liquids Prices ($/Bbl) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
15.63

 
$
27.86

 
-44
 %
 
$
17.84

 
$
26.27

 
-32
 %
Other International (B)

 

 
 
 

 

 
 
Composite
15.63

 
27.86

 
-44
 %
 
17.84

 
26.27

 
-32
 %
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Volumes (MMcfd) (A)
 
 
 
 
 
 
 
 
 
 
 
United States
1,047

 
914

 
15
 %
 
1,025

 
884

 
16
 %
Trinidad
273

 
282

 
-3
 %
 
270

 
288

 
-6
 %
Other International (B)
36

 
32

 
13
 %
 
37

 
30

 
23
 %
Total
1,356

 
1,228

 
10
 %
 
1,332

 
1,202

 
11
 %
 
 
 
 
 
 
 
 
 
 
 
 
Average Natural Gas Prices ($/Mcf) (C)
 
 
 
 
 
 
 
 
 
 
 
United States
$
1.98

 
$
2.56

 
-22
 %
 
$
2.37

 
$
2.65

 
-11
 %
Trinidad
2.69

 
2.98

 
-10
 %
 
2.80

 
2.93

 
-4
 %
Other International (B)
4.25

 
4.10

 
4
 %
 
4.31

 
4.22

 
2
 %
Composite
2.19

 
2.69

 
-19
 %
 
2.51

 
2.76

 
-9
 %
 
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Equivalent Volumes (MBoed) (D)
 
 
 
 
 
 
 
 
 
 
 
United States
760.4

 
644.4

 
18
 %
 
741.3

 
623.6

 
19
 %
Trinidad
46.1

 
47.8

 
-4
 %
 
45.6

 
48.8

 
-7
 %
Other International (B)
6.3

 
10.0

 
-37
 %
 
6.4

 
8.8

 
-27
 %
Total
812.8

 
702.2

 
16
 %
 
793.3

 
681.2

 
16
 %
 
 
 
 
 
 
 
 
 
 
 
 
Total MMBoe (D)
74.0

 
63.9

 
16
 %
 
143.6

 
123.3

 
16
 %

(A)
Thousand barrels per day or million cubic feet per day, as applicable.
(B)
Other International includes EOG's United Kingdom, China and Canada operations. The United Kingdom operations were sold in the fourth quarter of 2018.
(C)
Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2019).
(D)
Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, NGLs and natural gas. Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas. MMBoe is calculated by multiplying the MBoed amount by the number of days in the period and then dividing that amount by one thousand.






EOG RESOURCES, INC.
Summary Balance Sheets
(Unaudited; in thousands, except share data)
 
 
June 30,
 
December 31,
 
2019
 
2018
ASSETS
Current Assets
 
 
 
Cash and Cash Equivalents
$
1,160,485

 
$
1,555,634

Accounts Receivable, Net
2,001,953

 
1,915,215

Inventories
853,128

 
859,359

Assets from Price Risk Management Activities
134,951

 
23,806

Income Taxes Receivable
121,364

 
427,909

Other
223,640

 
275,467

Total
4,495,521

 
5,057,390

 
Property, Plant and Equipment
 
 
 
Oil and Gas Properties (Successful Efforts Method)
60,214,151

 
57,330,016

Other Property, Plant and Equipment
4,328,675

 
4,220,665

Total Property, Plant and Equipment
64,542,826

 
61,550,681

Less: Accumulated Depreciation, Depletion and Amortization
(34,818,395
)
 
(33,475,162
)
Total Property, Plant and Equipment, Net
29,724,431

 
28,075,519

Deferred Income Taxes
1,489

 
777

Other Assets
1,530,060

 
800,788

Total Assets
$
35,751,501

 
$
33,934,474

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 
 
 
Accounts Payable
$
2,387,403

 
$
2,239,850

Accrued Taxes Payable
268,837

 
214,726

Dividends Payable
165,999

 
126,971

Current Portion of Long-Term Debt
1,013,876

 
913,093

Current Portion of Operating Lease Liabilities
396,547

 

Other
181,395

 
233,724

Total
4,414,057

 
3,728,364

 
 
 
 
 
 
 
 
Long-Term Debt
4,165,284

 
5,170,169

Other Liabilities
1,803,475

 
1,258,355

Deferred Income Taxes
4,738,409

 
4,413,398

Commitments and Contingencies
 
 
 
 
 
 
 
Stockholders' Equity
 
 
 
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 580,931,822 Shares Issued at June 30, 2019 and 580,408,117 Shares Issued at December 31, 2018
205,809

 
205,804

Additional Paid in Capital
5,729,318

 
5,658,794

Accumulated Other Comprehensive Loss
(4,528
)
 
(1,358
)
Retained Earnings
14,731,609

 
13,543,130

Common Stock Held in Treasury, 305,941 Shares at June 30, 2019 and 385,042 Shares at December 31, 2018
(31,932
)
 
(42,182
)
Total Stockholders' Equity
20,630,276

 
19,364,188

Total Liabilities and Stockholders' Equity
$
35,751,501

 
$
33,934,474








EOG RESOURCES, INC.
Summary Statements of Cash Flows
(Unaudited; in thousands)
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Cash Flows from Operating Activities
 
 
 
 
 
 
 
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
 
 
 
 
 
 
 
Net Income
$
847,841

 
$
696,731

 
$
1,483,267

 
$
1,335,320

Items Not Requiring (Providing) Cash
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
957,304

 
848,674

 
1,836,899

 
1,597,265

Impairments
112,130

 
51,708

 
184,486

 
116,317

Stock-Based Compensation Expenses
38,566

 
31,803

 
77,653

 
67,289

Deferred Income Taxes
217,970

 
176,224

 
324,294

 
347,586

(Gains) Losses on Asset Dispositions, Net
(8,009
)
 
6,317

 
(4,173
)
 
21,286

Other, Net
2,487

 
11,494

 
5,439

 
13,507

Dry Hole Costs
3,769

 
4,902

 
3,863

 
4,902

Mark-to-Market Commodity Derivative Contracts
 
 
 
 
 
 
 
Total (Gains) Losses
(177,300
)
 
185,883

 
(156,720
)
 
245,654

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
10,444

 
(66,369
)
 
31,290

 
(88,334
)
Other, Net
663

 
217

 
1,639

 
(261
)
Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
 
 
Accounts Receivable
239,250

 
(200,097
)
 
(69,746
)
 
(309,751
)
Inventories
7,720

 
(85,420
)
 
(11,259
)
 
(192,219
)
Accounts Payable
(67,229
)
 
402,325

 
126,853

 
455,977

Accrued Taxes Payable
(61,718
)
 
585

 
53,280

 
22,535

Other Assets
494,322

 
(53,980
)
 
487,387

 
(62,843
)
Other Liabilities
(4,014
)
 
(24,113
)
 
(58,106
)
 
(53,168
)
Changes in Components of Working Capital Associated with Investing and Financing Activities
72,347

 
(45,267
)
 
(22,034
)
 
(27,279
)
Net Cash Provided by Operating Activities
2,686,543

 
1,941,617

 
4,294,312

 
3,493,783

 
 
 
 
 
 
 
 
Investing Cash Flows
 
 
 
 
 
 
 
Additions to Oil and Gas Properties
(1,507,024
)
 
(1,615,175
)
 
(3,446,497
)
 
(2,980,286
)
Additions to Other Property, Plant and Equipment
(55,918
)
 
(68,758
)
 
(116,881
)
 
(144,858
)
Proceeds from Sales of Assets
2,593

 
5,447

 
17,642

 
8,276

Changes in Components of Working Capital Associated with Investing Activities
(72,325
)
 
45,295

 
22,056

 
27,250

Net Cash Used in Investing Activities
(1,632,674
)
 
(1,633,191
)
 
(3,523,680
)
 
(3,089,618
)
 
 
 
 
 
 
 
 
Financing Cash Flows
 
 
 
 
 
 
 
Lont-Term Debt Repayments
(900,000
)
 

 
(900,000
)
 

Dividends Paid
(127,135
)
 
(106,584
)
 
(254,681
)
 
(203,610
)
Treasury Stock Purchased
(2,155
)
 
(15,247
)
 
(8,403
)
 
(32,023
)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan
8,292

 
9,692

 
8,695

 
11,145

Debt Issuance Costs
(4,902
)
 

 
(4,902
)
 

Repayment of Capital Lease Obligation
(3,213
)
 
(1,683
)
 
(6,403
)
 
(3,354
)
Changes in Components of Working Capital Associated with Financing Activities
(22
)
 
(28
)
 
(22
)
 
29

Net Cash Used in Financing Activities
(1,029,135
)
 
(113,850
)
 
(1,165,716
)
 
(227,813
)
 
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash
(59
)
 
(2,455
)
 
(65
)
 
(2,365
)
 
 
 
 
 
 
 
 
Increase (Decrease) in Cash and Cash Equivalents
24,675

 
192,121

 
(395,149
)
 
173,987

Cash and Cash Equivalents at Beginning of Period
1,135,810

 
816,094

 
1,555,634

 
834,228

Cash and Cash Equivalents at End of Period
$
1,160,485

 
$
1,008,215

 
$
1,160,485

 
$
1,008,215






EOG RESOURCES, INC.
Second 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
 
63

 
57

 
6,500

 
1,950

 
450

 
2.9

 
2,900

Bone Spring
 
5

 
5

 
5,200

 
1,300

 
300

 
1.6

 
1,850

Leonard
 
3

 
3

 
4,700

 
1,200

 
600

 
3.1

 
2,300

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Texas Eagle Ford
 
86

 
78

 
7,300

 
1,100

 
150

 
0.6

 
1,350

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Texas Austin Chalk
 
6

 
4

 
4,300

 
1,450

 
250

 
1.0

 
1,850

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Powder River Basin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turner
 
6

 
5

 
8,400

 
700

 
150

 
2.7

 
1,300

Mowry
 
2

 
1

 
9,500

 
700

 
250

 
6.0

 
1,950

Niobrara
 
5

 
3

 
9,800

 
1,000

 
100

 
2.1

 
1,450

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DJ Basin Codell
 
18

 
12

 
11,400

 
800

 
50

 
0.3

 
900

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anadarko Basin Woodford Oil Window
 
11

 
9

 
9,500

 
650

 
50

 
0.5

 
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 six-month periods ended June 30, 2019 and 2018 reported Net Income (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions in 2019 and 2018, to add back impairment charges related to certain of EOG's assets in 2019 and 2018 and to eliminate certain adjustments in 2018 related to the 2017 U.S. tax reform. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
June 30, 2019
 
June 30, 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)
$
1,089,366

 
$
(241,525
)
 
$
847,841

 
$
1.46

 
$
892,936

 
$
(196,205
)
 
$
696,731

 
$
1.20

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) Losses on Mark-to-Market Commodity Derivative Contracts
(177,300
)
 
38,930

 
(138,370
)
 
(0.24
)
 
185,883

 
(40,944
)
 
144,939

 
0.25

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
10,444

 
(2,276
)
 
8,168

 
0.01

 
(66,369
)
 
14,619

 
(51,750
)
 
(0.09
)
Add: (Gains) Losses on Asset Dispositions
(8,009
)
 
1,734

 
(6,275
)
 
(0.01
)
 
6,317

 
(1,375
)
 
4,942

 
0.01

Add: Impairments
65,289

 
(14,311
)
 
50,978

 
0.09

 

 

 

 

Adjustments to Net Income
(109,576
)
 
24,077

 
(85,499
)
 
(0.15
)
 
125,831

 
(27,700
)
 
98,131

 
0.17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP)
$
979,790

 
$
(217,448
)
 
$
762,342

 
$
1.31

 
$
1,018,767

 
$
(223,905
)
 
$
794,862

 
$
1.37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
577,460

 
 
 
 
 
 
 
576,135

Diluted
 
 
 
 
 
 
580,247

 
 
 
 
 
 
 
580,375









 
Six Months Ended
 
Six Months Ended
 
June 30, 2019
 
June 30, 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)
$
1,916,602

 
$
(433,335
)
 
$
1,483,267

 
$
2.56

 
$
1,706,295

 
$
(370,975
)
 
$
1,335,320

 
$
2.30

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gains) Losses on Mark-to-Market Commodity Derivative Contracts
(156,720
)
 
34,397

 
(122,323
)
 
(0.21
)
 
245,654

 
(54,110
)
 
191,544

 
0.33

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
31,290

 
(6,868
)
 
24,422

 
0.04

 
(88,334
)
 
19,457

 
(68,877
)
 
(0.12
)
Add: (Gains) Losses on Asset Dispositions
(4,173
)
 
998

 
(3,175
)
 
(0.01
)
 
21,286

 
(4,699
)
 
16,587

 
0.03

Add: Impairments
89,034

 
(19,541
)
 
69,493

 
0.12

 
20,876

 
(4,598
)
 
16,278

 
0.03

Less: Tax Reform Impact

 

 

 

 

 
(6,524
)
 
(6,524
)
 
(0.01
)
Adjustments to Net Income
(40,569
)
 
8,986

 
(31,583
)
 
(0.06
)
 
199,482

 
(50,474
)
 
149,008

 
0.26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Net Income (Non-GAAP)
$
1,876,033

 
$
(424,349
)
 
$
1,451,684

 
$
2.50

 
$
1,905,777

 
$
(421,449
)
 
$
1,484,328

 
$
2.56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Number of Common Shares (GAAP)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
577,333

 
 
 
 
 
 
 
575,953

Diluted
 
 
 
 
 
 
580,204

 
 
 
 
 
 
 
580,007








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

Calculation of Free Cash Flow
(Unaudited; in thousands)
 
 
 
 
 
 
 
 
The following chart reconciles the three-month and six-month periods ended June 30, 2019 and 2018 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow (Non-GAAP). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Exploration Costs (excluding Stock-Based Compensation Expenses), Other Non-Current Income Taxes - Net Receivable, 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 six months ended June 30, 2019 and 2018. EOG management uses this information for comparative purposes within the industry.
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Net Cash Provided by Operating Activities (GAAP)
$
2,686,543

 
$
1,941,617

 
$
4,294,312

 
$
3,493,783

 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Exploration Costs (excluding Stock-Based Compensation Expenses)
26,089

 
41,748

 
55,876

 
69,684

Other Non-Current Income Taxes - Net Receivable
42,764

 
73,441

 
145,682

 
192,362

Changes in Components of Working Capital and Other Assets and Liabilities
 
 
 
 
 
 
 
Accounts Receivable
(239,250
)
 
200,097

 
69,746

 
309,751

Inventories
(7,720
)
 
85,420

 
11,259

 
192,219

Accounts Payable
67,229

 
(402,325
)
 
(126,853
)
 
(455,977
)
Accrued Taxes Payable
61,718

 
(585
)
 
(53,280
)
 
(22,535
)
Other Assets
(494,322
)
 
53,980

 
(487,387
)
 
62,843

Other Liabilities
4,014

 
24,113

 
58,106

 
53,168

Changes in Components of Working Capital Associated with Investing and Financing Activities
(72,347
)
 
45,267

 
22,034

 
27,279

 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
2,074,718

 
$
2,062,773

 
$
3,989,495

 
$
3,922,577

 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP) - Percentage Increase
1
%
 
 
 
2
%
 
 
 
 
 
 
 
 
 
 
Discretionary Cash Flow (Non-GAAP)
$
2,074,718

 
$
2,062,773

 
$
3,989,495

 
$
3,922,577

Less:
 
 
 
 
 
 
 
Total Cash Expenditures Excluding Acquisitions (Non-GAAP) (a)
(1,595,726
)
 
(1,720,198
)
 
(3,328,202
)
 
(3,198,028
)
Dividends Paid (GAAP)
(127,135
)
 
(106,584
)
 
(254,681
)
 
(203,610
)
Free Cash Flow (Non-GAAP)
$
351,857

 
$
235,991

$
$
406,612

 
$
520,939

 
 
 
 
 
 
 
 





(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Expenditures Excluding Acquisitions (Non-GAAP) for the three month and six-month periods ended June 30, 2019 and 2018:
 
 
 
 
 
 
 
 
Total Expenditures (GAAP)
$
1,663,127

 
$
1,826,932

 
$
3,765,046

 
$
3,373,573

Less:
 
 
 
 
 
 
 
Asset Retirement Costs
(55,425
)
 
(18,856
)
 
(60,581
)
 
(30,956
)
Non-Cash Expenditures of Other Property, Plant and Equipment
(586
)
 
(45
)
 
(586
)
 
(47,680
)
Non-Cash Acquisition Costs of Unproved Properties
(10,240
)
 
(51,193
)
 
(53,721
)
 
(60,002
)
Acquisition Costs of Proved Properties
(1,150
)
 
(36,640
)
 
(321,956
)
 
(36,907
)
Total Cash Expenditures Excluding Acquisitions (Non-GAAP)
$
1,595,726

 
$
1,720,198

 
$
3,328,202

 
$
3,198,028







EOG RESOURCES, INC.
Reconciliation of Adjusted EBITDAX
(Unaudited; in thousands)
 
 
 
 
 
 
 
 
The following chart adjusts the three-month and six-month periods ended June 30, 2019 and 2018 reported Net Income (GAAP) to Earnings Before Interest Expense (Net), Income Taxes (Income Tax Provision), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments (EBITDAX) (Non-GAAP) and further adjusts such amount to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (MTM) (gains) losses from these transactions and to eliminate the (gains) losses on asset dispositions (Net). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Net Income (GAAP) to add back Interest Expense (Net), Income Taxes (Income Tax Provision), Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments and further adjust such amount to match realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Net Income (GAAP)
$
847,841

 
$
696,731

 
$
1,483,267

 
$
1,335,320

 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Interest Expense, Net
49,908

 
63,444

 
104,814

 
125,400

Income Tax Provision
241,525

 
196,205

 
433,335

 
370,975

Depreciation, Depletion and Amortization
957,304

 
848,674

 
1,836,899

 
1,597,265

Exploration Costs
32,522

 
47,478

 
68,846

 
82,314

Dry Hole Costs
3,769

 
4,902

 
3,863

 
4,902

Impairments
112,130

 
51,708

 
184,486

 
116,317

EBITDAX (Non-GAAP)
2,244,999

 
1,909,142

 
4,115,510

 
3,632,493

Total (Gains) Losses on MTM Commodity Derivative Contracts
(177,300
)
 
185,883

 
(156,720
)
 
245,654

Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
10,444

 
(66,369
)
 
31,290

 
(88,334
)
(Gains) Losses on Asset Dispositions, Net
(8,009
)
 
6,317

 
(4,173
)
 
21,286

 
 
 
 
 
 
 
 
Adjusted EBITDAX (Non-GAAP)
$
2,070,134

 
$
2,034,973

 
$
3,985,907

 
$
3,811,099

 
 
 
 
 
 
 
 
Adjusted EBITDAX (Non-GAAP) - Percentage Increase
2
%
 
 
 
5
%
 
 






EOG RESOURCES, INC.
Reconciliation of Net Debt and Total Capitalization
Calculation of Net Debt-to-Total Capitalization Ratio
(Unaudited; in millions, except ratio data)
 
 
 
 
 
The following chart reconciles Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation. A portion of the cash is associated with international subsidiaries; tax considerations may impact debt paydown. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt and Total Capitalization (Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation. EOG management uses this information for comparative purposes within the industry.
 
 
 
 
 
 
At
 
At
 
At
 
June 30,
 
December 31,
 
June 30,
 
2019
 
2018
 
2018
 
 
 
 
 
Total Stockholders' Equity - (a)
$
20,630

 
$
19,364

 
$
17,452

 
 
 
 
 
 
Current and Long-Term Debt (GAAP) - (b)
5,179

 
6,083

 
6,435

Less: Cash
(1,160
)
 
(1,556
)
 
(1,008
)
Net Debt (Non-GAAP) - (c)
4,019

 
4,527

 
5,427

 
 
 
 
 
 
Total Capitalization (GAAP) - (a) + (b)
$
25,809

 
$
25,447

 
$
23,887

 
 
 
 
 
 
Total Capitalization (Non-GAAP) - (a) + (c)
$
24,649

 
$
23,891

 
$
22,879

 
 
 
 
 
 
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]
20
%
 
24
%
 
27
%
 
 
 
 
 
 
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
16
%
 
19
%
 
24
%






EOG RESOURCES, INC.
Crude Oil and Natural Gas Financial Commodity
Derivative Contracts
 
 
 
 
 
 
EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method. Prices received by EOG for its crude oil production generally vary from NYMEX West Texas Intermediate prices due to adjustments for delivery location (basis) and other factors. EOG has entered into crude oil basis swap contracts in order to fix the differential between pricing in Midland, Texas, and Cushing, Oklahoma (Midland Differential). Presented below is a comprehensive summary of EOG's Midland Differential basis swap contracts through July 29, 2019. The weighted average price differential expressed in $/Bbl represents the amount of reduction to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.
 
Midland Differential Basis Swap Contracts
 
 
Volume (Bbld)
 
Weighted Average Price Differential
($/Bbl)
2019
 
 
 
 
January 1, 2019 through August 31, 2019 (closed)
 
20,000

 
$
1.075

September 1, 2019 through December 31, 2019
 
20,000

 
1.075


EOG has also entered into crude oil basis swap contracts in order to fix the differential between pricing in the U.S. Gulf Coast and Cushing, Oklahoma (Gulf Coast Differential). Presented below is a comprehensive summary of EOG's Gulf Coast Differential basis swap contracts through July 29, 2019. The weighted average price differential expressed in $/Bbl represents the amount of addition to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.
 
Gulf Coast Differential Basis Swap Contracts
 
 
Volume (Bbld)
 
Weighted Average Price Differential
($/Bbl)