Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

Document
false--12-31Q220190000821189Large Accelerated FilerP3Y0.1850.370.28750.50750.010.0112800000001280000000580408117580931822000000385042305941 0000821189 2019-01-01 2019-06-30 0000821189 2019-07-26 0000821189 2019-04-01 2019-06-30 0000821189 2018-01-01 2018-06-30 0000821189 2018-04-01 2018-06-30 0000821189 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-04-01 2019-06-30 0000821189 us-gaap:NaturalGasProductionMember 2018-04-01 2018-06-30 0000821189 eog:GainsLossesOnAssetDispositionsNetMember 2018-04-01 2018-06-30 0000821189 us-gaap:NaturalGasProductionMember 2018-01-01 2018-06-30 0000821189 us-gaap:NaturalGasProductionMember 2019-04-01 2019-06-30 0000821189 srt:NaturalGasLiquidsReservesMember 2018-04-01 2018-06-30 0000821189 eog:OtherNetMember 2018-04-01 2018-06-30 0000821189 us-gaap:OilAndCondensateMember 2019-04-01 2019-06-30 0000821189 us-gaap:OilAndCondensateMember 2019-01-01 2019-06-30 0000821189 eog:GainsLossesOnMarkToMarketCommodityDerivativeContractsMember 2018-01-01 2018-06-30 0000821189 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2019-01-01 2019-06-30 0000821189 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-01-01 2018-06-30 0000821189 eog:GainsLossesOnMarkToMarketCommodityDerivativeContractsMember 2018-04-01 2018-06-30 0000821189 us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember 2018-04-01 2018-06-30 0000821189 eog:OtherNetMember 2019-01-01 2019-06-30 0000821189 eog:OtherNetMember 2019-04-01 2019-06-30 0000821189 us-gaap:NaturalGasProductionMember 2019-01-01 2019-06-30 0000821189 us-gaap:OilAndCondensateMember 2018-01-01 2018-06-30 0000821189 srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-06-30 0000821189 eog:OtherNetMember 2018-01-01 2018-06-30 0000821189 srt:NaturalGasLiquidsReservesMember 2018-01-01 2018-06-30 0000821189 eog:GainsLossesOnAssetDispositionsNetMember 2019-04-01 2019-06-30 0000821189 us-gaap:OilAndCondensateMember 2018-04-01 2018-06-30 0000821189 srt:NaturalGasLiquidsReservesMember 2019-04-01 2019-06-30 0000821189 eog:GainsLossesOnMarkToMarketCommodityDerivativeContractsMember 2019-04-01 2019-06-30 0000821189 eog:GainsLossesOnMarkToMarketCommodityDerivativeContractsMember 2019-01-01 2019-06-30 0000821189 eog:GainsLossesOnAssetDispositionsNetMember 2018-01-01 2018-06-30 0000821189 eog:GainsLossesOnAssetDispositionsNetMember 2019-01-01 2019-06-30 0000821189 2018-12-31 0000821189 2019-06-30 0000821189 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000821189 us-gaap:RetainedEarningsMember 2018-03-31 0000821189 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0000821189 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000821189 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000821189 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000821189 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000821189 us-gaap:RetainedEarningsMember 2018-06-30 0000821189 us-gaap:TreasuryStockMember 2018-03-31 0000821189 2018-06-30 0000821189 us-gaap:TreasuryStockMember 2018-06-30 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000821189 us-gaap:CommonStockMember 2018-03-31 0000821189 us-gaap:CommonStockMember 2018-06-30 0000821189 2018-03-31 0000821189 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000821189 us-gaap:TreasuryStockMember 2019-01-01 2019-06-30 0000821189 us-gaap:CommonStockMember 2019-06-30 0000821189 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0000821189 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0000821189 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000821189 us-gaap:RetainedEarningsMember 2019-06-30 0000821189 us-gaap:TreasuryStockMember 2019-06-30 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000821189 us-gaap:TreasuryStockMember 2018-12-31 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000821189 us-gaap:RetainedEarningsMember 2018-12-31 0000821189 us-gaap:CommonStockMember 2018-12-31 0000821189 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000821189 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0000821189 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0000821189 us-gaap:CommonStockMember 2018-01-01 2018-06-30 0000821189 us-gaap:TreasuryStockMember 2018-01-01 2018-06-30 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0000821189 us-gaap:CommonStockMember 2017-12-31 0000821189 us-gaap:RetainedEarningsMember 2017-12-31 0000821189 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000821189 us-gaap:TreasuryStockMember 2017-12-31 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000821189 2017-12-31 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000821189 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000821189 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000821189 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000821189 us-gaap:TreasuryStockMember 2019-03-31 0000821189 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000821189 us-gaap:RetainedEarningsMember 2019-03-31 0000821189 2019-03-31 0000821189 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000821189 us-gaap:CommonStockMember 2019-03-31 0000821189 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000821189 eog:RestrictedStockAndRestrictedStockUnitsMember 2018-06-30 0000821189 eog:RestrictedStockAndRestrictedStockUnitsMember 2018-12-31 0000821189 eog:RestrictedStockAndRestrictedStockUnitsMember 2019-01-01 2019-06-30 0000821189 eog:RestrictedStockAndRestrictedStockUnitsMember 2018-01-01 2018-06-30 0000821189 eog:RestrictedStockAndRestrictedStockUnitsMember 2019-06-30 0000821189 eog:RestrictedStockAndRestrictedStockUnitsMember 2017-12-31 0000821189 eog:StockOptionsAndSarsMember 2018-01-01 2018-06-30 0000821189 eog:StockOptionsAndSarsMember 2019-06-30 0000821189 eog:StockOptionsAndSarsMember 2018-06-30 0000821189 eog:StockOptionsAndSarsMember 2019-01-01 2019-06-30 0000821189 eog:StockOptionsAndSarsMember 2017-12-31 0000821189 eog:StockOptionsAndSarsMember 2018-12-31 0000821189 us-gaap:EmployeeStockMember 2019-01-01 2019-06-30 0000821189 us-gaap:EmployeeStockMember 2018-01-01 2018-06-30 0000821189 eog:StockOptionsAndSarsMember 2018-04-01 2018-06-30 0000821189 us-gaap:PerformanceSharesMember 2019-01-01 2019-06-30 0000821189 eog:StockOptionsAndSarsMember 2019-04-01 2019-06-30 0000821189 us-gaap:PerformanceSharesMember 2018-04-01 2018-06-30 0000821189 us-gaap:PerformanceSharesMember 2019-06-30 0000821189 us-gaap:PerformanceSharesMember 2018-01-01 2018-06-30 0000821189 us-gaap:PerformanceSharesMember 2018-06-30 0000821189 us-gaap:PerformanceSharesMember 2019-04-01 2019-06-30 0000821189 eog:RestrictedStockAndRestrictedStockUnitsMember 2018-04-01 2018-06-30 0000821189 eog:RestrictedStockAndRestrictedStockUnitsMember 2019-04-01 2019-06-30 0000821189 us-gaap:PerformanceSharesMember 2017-12-31 0000821189 us-gaap:PerformanceSharesMember 2018-12-31 0000821189 eog:LeaseAndWellMember 2019-04-01 2019-06-30 0000821189 eog:ExplorationCostsMember 2019-04-01 2019-06-30 0000821189 eog:ExplorationCostsMember 2019-01-01 2019-06-30 0000821189 eog:ExplorationCostsMember 2018-01-01 2018-06-30 0000821189 eog:GatheringAndProcessingCostsMember 2018-01-01 2018-06-30 0000821189 eog:ExplorationCostsMember 2018-04-01 2018-06-30 0000821189 eog:LeaseAndWellMember 2018-04-01 2018-06-30 0000821189 eog:GatheringAndProcessingCostsMember 2019-01-01 2019-06-30 0000821189 eog:GeneralAndAdministrativeMember 2019-04-01 2019-06-30 0000821189 eog:GeneralAndAdministrativeMember 2018-01-01 2018-06-30 0000821189 eog:GeneralAndAdministrativeMember 2019-01-01 2019-06-30 0000821189 eog:LeaseAndWellMember 2018-01-01 2018-06-30 0000821189 eog:GatheringAndProcessingCostsMember 2019-04-01 2019-06-30 0000821189 eog:LeaseAndWellMember 2019-01-01 2019-06-30 0000821189 eog:GatheringAndProcessingCostsMember 2018-04-01 2018-06-30 0000821189 eog:GeneralAndAdministrativeMember 2018-04-01 2018-06-30 0000821189 eog:StockOptionsAndSarsMember 2018-04-01 2018-06-30 0000821189 eog:RestrictedStockRestrictedStockUnitsandPerformanceUnitsMember 2018-01-01 2018-06-30 0000821189 eog:StockOptionsAndSarsMember 2019-01-01 2019-06-30 0000821189 eog:StockOptionsAndSarsMember 2019-04-01 2019-06-30 0000821189 eog:RestrictedStockRestrictedStockUnitsandPerformanceUnitsMember 2019-01-01 2019-06-30 0000821189 eog:StockOptionsAndSarsMember 2018-01-01 2018-06-30 0000821189 eog:RestrictedStockRestrictedStockUnitsandPerformanceUnitsMember 2018-04-01 2018-06-30 0000821189 eog:RestrictedStockRestrictedStockUnitsandPerformanceUnitsMember 2019-04-01 2019-06-30 0000821189 country:US 2018-01-01 2018-06-30 0000821189 country:TT 2019-01-01 2019-06-30 0000821189 eog:OtherInternationalMember 2018-01-01 2018-06-30 0000821189 eog:OtherInternationalMember 2019-04-01 2019-06-30 0000821189 eog:OtherInternationalMember 2018-04-01 2018-06-30 0000821189 country:TT 2018-04-01 2018-06-30 0000821189 country:US 2018-04-01 2018-06-30 0000821189 eog:OtherInternationalMember 2019-01-01 2019-06-30 0000821189 srt:NaturalGasReservesMember us-gaap:SwapMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember eog:GulfCoastDifferentialBasisSwapMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:BasisSwapMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:SwapMember 2019-01-01 2019-06-30 0000821189 2018-01-01 2018-12-31 0000821189 country:TT 2018-01-01 2018-06-30 0000821189 country:US 2019-04-01 2019-06-30 0000821189 country:US 2019-01-01 2019-06-30 0000821189 country:TT 2019-04-01 2019-06-30 0000821189 country:US 2018-12-31 0000821189 eog:OtherInternationalMember 2018-12-31 0000821189 country:US 2019-06-30 0000821189 country:TT 2018-12-31 0000821189 eog:OtherInternationalMember 2019-06-30 0000821189 country:TT 2019-06-30 0000821189 eog:RevolvingCreditAgreementNewFacilityMember 2019-01-01 2019-06-30 0000821189 eog:RevolvingCreditAgreementNewFacilityMember us-gaap:BaseRateMember 2019-01-01 2019-06-30 0000821189 eog:SeniorUnsecuredRevolvingCreditAgreementDue2020Member 2019-01-01 2019-06-30 0000821189 us-gaap:CommercialPaperMember 2019-01-01 2019-06-30 0000821189 eog:RevolvingCreditAgreementNewFacilityMember 2019-06-30 0000821189 us-gaap:CommercialPaperMember 2018-01-01 2018-06-30 0000821189 eog:SeniorUnsecuredRevolvingCreditAgreementDue2020Member 2019-06-30 0000821189 eog:SeniorUnsecuredRevolvingCreditAgreementDue2020Member 2018-01-01 2018-12-31 0000821189 eog:RevolvingCreditAgreementNewFacilityMember us-gaap:EurodollarMember 2019-01-01 2019-06-30 0000821189 eog:UncommittedCreditFacilityMember 2018-01-01 2018-12-31 0000821189 eog:SeniorUnsecuredRevolvingCreditAgreementDue2020Member 2018-12-31 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member us-gaap:BasisSwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member us-gaap:BasisSwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:BasisSwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member us-gaap:BasisSwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member us-gaap:SwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:BasisSwapMember 2018-12-31 0000821189 srt:NaturalGasReservesMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member us-gaap:SwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member us-gaap:SwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member us-gaap:BasisSwapMember 2018-12-31 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:SwapMember 2019-06-30 0000821189 srt:NaturalGasReservesMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member us-gaap:SwapMember 2019-06-30 0000821189 srt:NaturalGasReservesMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member us-gaap:SwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member us-gaap:BasisSwapMember 2018-12-31 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member us-gaap:SwapMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member us-gaap:BasisSwapMember 2018-12-31 0000821189 srt:NaturalGasReservesMember us-gaap:CommodityContractMember us-gaap:SwapMember 2019-06-30 0000821189 srt:CrudeOilMember eog:GulfCoastDifferentialBasisSwapMember eog:DerivativeContractsAugustthroughDecemberMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember eog:GulfCoastDifferentialBasisSwapMember eog:DerivativeContractsAugustthroughDecemberMember 2019-06-30 0000821189 srt:CrudeOilMember eog:GulfCoastDifferentialBasisSwapMember eog:DerivativeContractsJanuarythroughJulyclosedMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember eog:GulfCoastDifferentialBasisSwapMember eog:DerivativeContractsJanuarythroughJulyclosedMember 2019-06-30 0000821189 srt:NaturalGasReservesMember us-gaap:SwapMember eog:DerivativeContractsAprilthroughJulyclosedMember 2019-06-30 0000821189 srt:NaturalGasReservesMember us-gaap:SwapMember eog:DerivativeContractsAprilthroughJulyclosedMember 2019-01-01 2019-06-30 0000821189 srt:NaturalGasReservesMember us-gaap:SwapMember eog:DerivativeContractsAugustthroughOctoberMember 2019-01-01 2019-06-30 0000821189 srt:NaturalGasReservesMember us-gaap:SwapMember eog:DerivativeContractsAugustthroughOctoberMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:BasisSwapMember eog:DerivativeContractsJanuarythroughJulyclosedMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:BasisSwapMember eog:DerivativeContractsAugustthroughDecemberMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:BasisSwapMember eog:DerivativeContractsAugustthroughDecemberMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:BasisSwapMember eog:DerivativeContractsJanuarythroughJulyclosedMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:SwapMember eog:DerivativeContractsJulythroughDecemberMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:SwapMember eog:DerivativeContractsAprilclosedMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:SwapMember eog:DerivativeContractsMaythroughJuneclosedMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:SwapMember eog:DerivativeContractsMaythroughJuneclosedMember 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:SwapMember eog:DerivativeContractsAprilclosedMember 2019-01-01 2019-06-30 0000821189 srt:CrudeOilMember us-gaap:SwapMember eog:DerivativeContractsJulythroughDecemberMember 2019-01-01 2019-06-30 0000821189 eog:AssetsFromPriceRiskManagementActivitiesMember 2019-06-30 0000821189 eog:AssetsFromPriceRiskManagementActivitiesMember us-gaap:PriceRiskDerivativeMember 2018-12-31 0000821189 eog:AssetsFromPriceRiskManagementActivitiesMember us-gaap:PriceRiskDerivativeMember 2019-06-30 0000821189 us-gaap:PropertyPlantAndEquipmentMember 2019-06-30 0000821189 eog:OperatingLeasesMember us-gaap:OtherLiabilitiesMember 2019-06-30 0000821189 eog:FinanceLeasesMember us-gaap:PropertyPlantAndEquipmentMember 2019-06-30 0000821189 eog:FinanceLeasesMember us-gaap:LongTermDebtMember 2019-06-30 0000821189 eog:OperatingLeasesMember eog:CurrentPortionofOperatingLeaseLiabilitiesMember 2019-06-30 0000821189 eog:OperatingLeasesMember us-gaap:OtherAssetsMember 2019-06-30 0000821189 eog:FinanceLeasesMember eog:CurrentPortionofLongTermDebtMember 2019-06-30 0000821189 eog:FinanceLeasesMember 2018-12-31 0000821189 eog:OperatingLeasesMember 2018-12-31 0000821189 srt:MaximumMember 2019-01-01 2019-06-30 0000821189 srt:MinimumMember 2019-01-01 2019-06-30 0000821189 2019-01-01 0000821189 eog:FinanceLeasesMember 2019-06-30 0000821189 eog:OperatingLeasesMember 2019-06-30 0000821189 eog:InvestingActivitiesMember eog:OperatingLeasesMember 2019-01-01 2019-06-30 0000821189 eog:OperatingActivitiesMember eog:OperatingLeasesMember 2019-01-01 2019-06-30 0000821189 eog:FinanceLeasesMember 2019-01-01 2019-06-30 iso4217:USD xbrli:shares xbrli:shares xbrli:pure iso4217:USD iso4217:USD utreg:bbl iso4217:USD utreg:MMBTU utreg:bbl utreg:MMBTU
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
10-Q
 
 
(Mark One)

           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
or
          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 1-9743
 
EOG RESOURCES, INC.
(Exact name of registrant as specified in its charter)
Delaware
 
47-0684736
(State or other jurisdiction
 of incorporation or organization)
 
(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)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  
Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer     Accelerated filer     Non-accelerated filer 
Smaller reporting company    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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
Yes   No 

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
Title of each class
 
Number of shares
Common Stock, par value $0.01 per share
 
580,663,061

(as of July 26, 2019)

 

    



EOG RESOURCES, INC.

TABLE OF CONTENTS



PART I.
FINANCIAL INFORMATION
Page No.
 
 
 
 
ITEM 1.
Financial Statements (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ITEM 2.
 
 
 
 
 
ITEM 3.
 
 
 
 
 
ITEM 4.
 
 
 
 
PART II.
OTHER INFORMATION
 
 
 
 
 
 
ITEM 1.
 
 
 
 
 
ITEM 2.
 
 
 
 
 
ITEM 4.
 
 
 
 
 
ITEM 6.
 
 
 
 
 
 
 
 
 

-2-

    



PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
EOG RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 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

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
577,460

 
576,135

 
577,333

 
575,953

Diluted
580,247

 
580,375

 
580,204

 
580,007

Comprehensive Income
 

 
 

 
 

 
 

Net Income
$
847,841

 
$
696,731

 
$
1,483,267

 
$
1,335,320

Other Comprehensive Income (Loss)
 

 
 

 
 

 
 

Foreign Currency Translation Adjustments
(1,665
)
 
(3,229
)
 
(3,449
)
 
1,773

Other, Net of Tax
6

 
6

 
12

 
12

Other Comprehensive Income (Loss)
(1,659
)
 
(3,223
)
 
(3,437
)
 
1,785

Comprehensive Income
$
846,182

 
$
693,508

 
$
1,479,830

 
$
1,337,105



The accompanying notes are an integral part of these condensed consolidated financial statements.

-3-

    



EOG RESOURCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
(Unaudited)
 
June 30,
2019
 
December 31,
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 (Note 8)


 


 
 
 
 
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


The accompanying notes are an integral part of these condensed consolidated financial statements.

-4-

    



EOG RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In Thousands, Except Per Share Data)
(Unaudited)
 
Common
Stock
 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Common
Stock
Held In
Treasury
 
Total
Stockholders'
Equity
Balance at March 31, 2019
$
205,807

 
$
5,695,197

 
$
(2,869
)
 
$
14,050,676

 
$
(45,014
)
 
$
19,903,797

Net Income

 

 

 
847,841

 

 
847,841

Common Stock Issued Under Stock Plans

 

 

 

 

 

Common Stock Dividends Declared, $0.2875 Per Share

 

 

 
(166,908
)
 

 
(166,908
)
Other Comprehensive Loss

 

 
(1,659
)
 

 

 
(1,659
)
Change in Treasury Stock - Stock Compensation Plans, Net

 
(5,834
)
 

 

 
12,027

 
6,193

Restricted Stock and Restricted Stock Units, Net
2

 
1,788

 

 

 
(1,790
)
 

Stock-Based Compensation Expenses

 
38,566

 

 

 

 
38,566

Treasury Stock Issued as Compensation

 
(399
)
 

 

 
2,845

 
2,446

Balance at June 30, 2019
$
205,809

 
$
5,729,318

 
$
(4,528
)
 
$
14,731,609

 
$
(31,932
)
 
$
20,630,276


 
Common
Stock
 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Common
Stock
Held In
Treasury
 
Total
Stockholders'
Equity
Balance at March 31, 2018
$
205,793

 
$
5,569,194

 
$
(14,289
)
 
$
11,125,051

 
$
(45,110
)
 
$
16,840,639

Net Income

 

 

 
696,731

 

 
696,731

Common Stock Issued Under Stock Plans
3

 
2,171

 

 

 

 
2,174

Common Stock Dividends Declared, $0.1850 Per Share

 

 

 
(107,126
)
 

 
(107,126
)
Other Comprehensive Loss

 

 
(3,223
)
 

 

 
(3,223
)
Change in Treasury Stock - Stock Compensation Plans, Net

 
(12,446
)
 

 

 
4,717

 
(7,729
)
Restricted Stock and Restricted Stock Units, Net

 
918

 

 

 
(918
)
 

Stock-Based Compensation Expenses

 
31,804

 

 

 

 
31,804

Treasury Stock Issued as Compensation

 
2

 

 

 
(878
)
 
(876
)
Balance at June 30, 2018
$
205,796

 
$
5,591,643

 
$
(17,512
)
 
$
11,714,656

 
$
(42,189
)
 
$
17,452,394


The accompanying notes are an integral part of these condensed consolidated financial statements.


-5-

    



EOG RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In Thousands, Except Per Share Data)
(Unaudited)
 
Common
Stock
 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Common
Stock
Held In
Treasury
 
Total
Stockholders'
Equity
Balance at December 31, 2018
$
205,804

 
$
5,658,794

 
$
(1,358
)
 
$
13,543,130

 
$
(42,182
)
 
$
19,364,188

Net Income

 

 

 
1,483,267

 

 
1,483,267

Common Stock Issued Under Stock Plans

 

 

 

 

 

Common Stock Dividends Declared, $0.5075 Per Share

 

 

 
(294,521
)
 

 
(294,521
)
Other Comprehensive Loss

 

 
(3,437
)
 

 

 
(3,437
)
Change in Treasury Stock - Stock Compensation Plans, Net

 
(7,074
)
 

 

 
7,478

 
404

Restricted Stock and Restricted Stock Units, Net
5

 
384

 

 

 
(389
)
 

Stock-Based Compensation Expenses

 
77,653

 

 

 

 
77,653

Treasury Stock Issued as Compensation

 
(439
)
 

 

 
3,161

 
2,722

Cumulative Effect of Adoption of ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)"

 

 
267

 
(267
)
 

 

Balance at June 30, 2019
$
205,809

 
$
5,729,318

 
$
(4,528
)
 
$
14,731,609

 
$
(31,932
)
 
$
20,630,276


 
Common
Stock
 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained
Earnings
 
Common
Stock
Held In
Treasury
 
Total
Stockholders'
Equity
Balance at December 31, 2017
$
205,788

 
$
5,536,547

 
$
(19,297
)
 
$
10,593,533

 
$
(33,298
)
 
$
16,283,273

Net Income

 

 

 
1,335,320

 

 
1,335,320

Common Stock Issued Under Stock Plans
5

 
3,623

 

 

 

 
3,628

Common Stock Dividends Declared, $0.37 Per Share

 

 

 
(214,197
)
 

 
(214,197
)
Other Comprehensive Loss

 

 
1,785

 

 

 
1,785

Change in Treasury Stock - Stock Compensation Plans, Net

 
(20,052
)
 

 

 
(4,452
)
 
(24,504
)
Restricted Stock and Restricted Stock Units, Net
3

 
4,127

 

 

 
(4,130
)
 

Stock-Based Compensation Expenses

 
67,289

 

 

 

 
67,289

Treasury Stock Issued as Compensation

 
109

 

 

 
(309
)
 
(200
)
Balance at June 30, 2018
$
205,796

 
$
5,591,643

 
$
(17,512
)
 
$
11,714,656

 
$
(42,189
)
 
$
17,452,394


The accompanying notes are an integral part of these condensed consolidated financial statements.



-6-


EOG RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
 
Six Months Ended 
 June 30,
 
2019
 
2018
Cash Flows from Operating Activities
 
 
 
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
 
 
 
Net Income
$
1,483,267

 
$
1,335,320

Items Not Requiring (Providing) Cash
 

 
 

Depreciation, Depletion and Amortization
1,836,899

 
1,597,265

Impairments
184,486

 
116,317

Stock-Based Compensation Expenses
77,653

 
67,289

Deferred Income Taxes
324,294

 
347,586

(Gains) Losses on Asset Dispositions, Net
(4,173
)
 
21,286

Other, Net
5,439

 
13,507

Dry Hole Costs
3,863

 
4,902

Mark-to-Market Commodity Derivative Contracts
 

 
 

Total (Gains) Losses
(156,720
)
 
245,654

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

 
(88,334
)
Other, Net
1,639

 
(261
)
Changes in Components of Working Capital and Other Assets and Liabilities
 

 
 

Accounts Receivable
(69,746
)
 
(309,751
)
Inventories
(11,259
)
 
(192,219
)
Accounts Payable
126,853

 
455,977

Accrued Taxes Payable
53,280

 
22,535

Other Assets
487,387

 
(62,843
)
Other Liabilities
(58,106
)
 
(53,168
)
Changes in Components of Working Capital Associated with Investing and Financing Activities
(22,034
)
 
(27,279
)
Net Cash Provided by Operating Activities
4,294,312

 
3,493,783

Investing Cash Flows
 

 
 

Additions to Oil and Gas Properties
(3,446,497
)
 
(2,980,286
)
Additions to Other Property, Plant and Equipment
(116,881
)
 
(144,858
)
Proceeds from Sales of Assets
17,642

 
8,276

Changes in Components of Working Capital Associated with Investing Activities
22,056

 
27,250

Net Cash Used in Investing Activities
(3,523,680
)
 
(3,089,618
)
Financing Cash Flows
 

 
 

Long-Term Debt Repayments
(900,000
)
 

Dividends Paid
(254,681
)
 
(203,610
)
Treasury Stock Purchased
(8,403
)
 
(32,023
)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan
8,695

 
11,145

Debt Issuance Costs
(4,902
)
 

Repayment of Finance Lease Liabilities
(6,403
)
 
(3,354
)
Changes in Components of Working Capital Associated with Financing Activities
(22
)
 
29

Net Cash Used in Financing Activities
(1,165,716
)
 
(227,813
)
Effect of Exchange Rate Changes on Cash
(65
)
 
(2,365
)
Increase (Decrease) in Cash and Cash Equivalents
(395,149
)
 
173,987

Cash and Cash Equivalents at Beginning of Period
1,555,634

 
834,228

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

 
$
1,008,215


The accompanying notes are an integral part of these condensed consolidated financial statements.

-7-

    



EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.    Summary of Significant Accounting Policies

General. The condensed consolidated financial statements of EOG Resources, Inc., together with its subsidiaries (collectively, EOG), included herein have been prepared by management without audit pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). Accordingly, they reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the financial results for the interim periods presented. Certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. However, management believes that the disclosures included either on the face of the financial statements or in these notes are sufficient to make the interim information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in EOG's Annual Report on Form 10-K for the year ended December 31, 2018, filed on February 26, 2019 (EOG's 2018 Annual Report).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The operating results for the three and six months ended June 30, 2019, are not necessarily indicative of the results to be expected for the full year.

Effective January 1, 2019, EOG adopted the provisions of Accounting Standards Update (ASU) 2016-02, "Leases (Topic 842)" (ASU 2016-02). ASU 2016-02 and other related ASUs require that lessees recognize a right-of-use (ROU) asset and related lease liability, representing the obligation to make lease payments for certain lease transactions, on the Condensed Consolidated Balance Sheets and disclose additional leasing information.

EOG elected to adopt ASU 2016-02 and other related ASUs using the modified retrospective approach with a cumulative-effect adjustment to the opening balance of retained earnings as of the effective date. Financial results reported in periods prior to January 1, 2019, are unchanged. Additionally, EOG elected the package of practical expedients within ASU 2016-02 that allows an entity to not reassess prior to the effective date (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases, but did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. EOG also elected the practical expedient under ASU 2018-01, "Leases (Topic 842) - Land Easement Practical Expedient for Transition to Topic 842," and did not evaluate existing or expired land easements not previously accounted for as leases prior to the January 1, 2019 effective date. There was no impact to retained earnings upon adoption of ASU 2016-02 and other related ASUs. See Note 14.

2.    Stock-Based Compensation

As more fully discussed in Note 7 to the Consolidated Financial Statements included in EOG's 2018 Annual Report, EOG maintains various stock-based compensation plans. Stock-based compensation expense is included on the Condensed Consolidated Statements of Income and Comprehensive Income based upon the job function of the employees receiving the grants as follows (in millions):
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2019
 
2018
 
2019
 
2018
Lease and Well
$
13.6

 
$
11.4

 
$
27.3

 
$
24.2

Gathering and Processing Costs
0.3

 
0.1

 
0.5

 
0.2

Exploration Costs
6.5

 
5.7

 
13.0

 
12.6

General and Administrative
18.2

 
14.6

 
36.9

 
30.3

Total
$
38.6

 
$
31.8

 
$
77.7

 
$
67.3



The Amended and Restated EOG Resources, Inc. 2008 Omnibus Equity Compensation Plan (2008 Plan) provides for grants of stock options, stock-settled stock appreciation rights (SARs), restricted stock and restricted stock units, performance units and other stock-based awards.

-8-

EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)



At June 30, 2019, approximately 13.0 million common shares remained available for grant under the 2008 Plan. EOG's policy is to issue shares related to 2008 Plan grants from previously authorized unissued shares or treasury shares to the extent treasury shares are available.

Stock Options and Stock-Settled Stock Appreciation Rights and Employee Stock Purchase Plan. The fair value of stock option grants and SAR grants is estimated using the Hull-White II binomial option pricing model. The fair value of Employee Stock Purchase Plan (ESPP) grants is estimated using the Black-Scholes-Merton model. Stock-based compensation expense related to stock option, SAR and ESPP grants totaled $13.6 million and $11.7 million during the three months ended June 30, 2019 and 2018, respectively, and $27.5 million and $23.7 million during the six months ended June 30, 2019 and 2018, respectively.

Weighted average fair values and valuation assumptions used to value stock option, SAR and ESPP grants during the six-month periods ended June 30, 2019 and 2018 are as follows:
 
Stock Options/SARs
 
ESPP
 
Six Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2019
 
2018
 
2019
 
2018
Weighted Average Fair Value of Grants
$
25.68

 
$
29.18

 
$
22.98

 
$
23.27

Expected Volatility
31.50
%
 
28.88
%
 
36.31
%
 
22.04
%
Risk-Free Interest Rate
2.38
%
 
2.23
%
 
2.48
%
 
1.60
%
Dividend Yield
0.96
%
 
0.67
%
 
0.83
%
 
0.66
%
Expected Life
5.1 years
 
5.0 years

 
0.5 years

 
0.5 years



Expected volatility is based on an equal weighting of historical volatility and implied volatility from traded options in EOG's common stock. The risk-free interest rate is based upon United States Treasury yields in effect at the time of grant. The expected life is based upon historical experience and contractual terms of stock option, SAR and ESPP grants.

The following table sets forth stock option and SAR transactions for the six-month periods ended June 30, 2019 and 2018 (stock options and SARs in thousands):
 
Six Months Ended 
 June 30, 2019
 
Six Months Ended 
 June 30, 2018
 
Number of
Stock
Options/SARs
 
Weighted
Average
Grant
Price
 
Number of
Stock
Options/SARs
 
Weighted
Average
Grant
Price
Outstanding at January 1
8,310

 
$
96.90

 
9,103

 
$
83.89

Granted
32

 
93.29

 
32

 
110.17

Exercised (1)
(157
)
 
73.39

 
(1,662
)
 
71.33

Forfeited
(107
)
 
105.47

 
(124
)
 
92.07

Outstanding at June 30 (2)
8,078

 
$
97.23

 
7,349

 
$
86.71

Vested or Expected to Vest (3)
7,741

 
$
96.78

 
7,006

 
$
86.44

Exercisable at June 30 (4)
3,905

 
$
86.71

 
2,938

 
$
78.74



(1)
The total intrinsic value of stock options/SARs exercised during the six months ended June 30, 2019 and 2018 was $3.9 million and $74.5 million, respectively. The intrinsic value is based upon the difference between the market price of EOG's common stock on the date of exercise and the grant price of the stock options/SARs.
(2)
The total intrinsic value of stock options/SARs outstanding at June 30, 2019 and 2018 was $45.0 million and $277.2 million, respectively. At June 30, 2019 and 2018, the weighted average remaining contractual life was 4.0 years and 4.3 years, respectively.
(3)
The total intrinsic value of stock options/SARs vested or expected to vest at June 30, 2019 and 2018 was $44.4 million and $266.2 million, respectively. At June 30, 2019 and 2018, the weighted average remaining contractual life was 3.9 years and 4.3 years, respectively.
(4)
The total intrinsic value of stock options/SARs exercisable at June 30, 2019 and 2018 was $37.1 million and $134.2 million, respectively. At June 30, 2019 and 2018, the weighted average remaining contractual life was 2.5 years and 2.7 years, respectively.


-9-

EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)


At June 30, 2019, unrecognized compensation expense related to non-vested stock option, SAR and ESPP grants totaled $81.3 million. Such unrecognized expense will be amortized on a straight-line basis over a weighted average period of 1.6 years.

Restricted Stock and Restricted Stock Units. Employees may be granted restricted (non-vested) stock and/or restricted stock units without cost to them. Stock-based compensation expense related to restricted stock and restricted stock units totaled $23.1 million and $19.0 million for the three months ended June 30, 2019 and 2018, respectively, and $46.4 million and $41.3 million for the six months ended June 30, 2019 and 2018, respectively.

The following table sets forth restricted stock and restricted stock unit transactions for the six-month periods ended June 30, 2019 and 2018 (shares and units in thousands):
 
Six Months Ended 
 June 30, 2019
 
Six Months Ended 
 June 30, 2018
 
Number of
Shares and
Units
 
Weighted
Average
Grant Date
Fair Value
 
Number of
Shares and
Units
 
Weighted
Average
Grant Date
Fair Value
Outstanding at January 1
3,792

 
$
96.64

 
3,905

 
$
88.57

Granted
401

 
96.22

 
309

 
103.52

Released (1)
(395
)
 
93.84

 
(331
)
 
69.55

Forfeited
(68
)
 
98.27

 
(120
)
 
91.28

Outstanding at June 30 (2)
3,730

 
$
96.86

 
3,763

 
$
91.39

 
(1)
The total intrinsic value of restricted stock and restricted stock units released during the six months ended June 30, 2019 and 2018 was $35.7 million and $34.9 million, respectively. The intrinsic value is based upon the closing price of EOG's common stock on the date the restricted stock and restricted stock units are released.
(2)
The total intrinsic value of restricted stock and restricted stock units outstanding at June 30, 2019 and 2018 was $347.5 million and $468.2 million, respectively.

At June 30, 2019, unrecognized compensation expense related to restricted stock and restricted stock units totaled $158.2 million. Such unrecognized expense will be amortized on a straight-line basis over a weighted average period of 1.7 years.

Performance Units. EOG grants performance units annually to its executive officers without cost to them. As more fully discussed in the grant agreements, the performance metric applicable to the performance units is EOG's total shareholder return over a three-year performance period relative to the total shareholder return of a designated group of peer companies (Performance Period). Upon the application of the performance multiple at the completion of the Performance Period, a minimum of 0% and a maximum of 200% of the performance units granted could be outstanding. The fair value of the performance units is estimated using a Monte Carlo simulation. Stock-based compensation expense related to the performance unit grants totaled $1.9 million and $1.1 million for the three months ended June 30, 2019 and 2018, respectively, and $3.8 million and $2.3 million for the six months ended June 30, 2019 and 2018, respectively.


-10-

EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)


The following table sets forth the performance unit transactions for the six-month periods ended June 30, 2019 and 2018 (units in thousands):
 
Six Months Ended 
 June 30, 2019
 
Six Months Ended 
 June 30, 2018
 
Number of
Units
 
Weighted
Average
Price per
Grant Date
 
Number of
Units
 
Weighted
Average
Price per
Grant Date
Outstanding at January 1
539

 
$
101.53

 
502

 
$
90.96

Granted

 

 

 

Granted for Performance Multiple (1)
72

 
69.43

 
72

 
101.87

Released (2)
(83
)
 
85.65

 

 

Forfeited

 

 

 

Outstanding at June 30 (3)
528

(4)
$
99.64

 
574

 
$
92.33

 
(1)
Upon completion of the Performance Period for the performance units granted in 2015 and 2014, a performance multiple of 200% was applied to each of the grants resulting in additional grants of performance units in February 2019 and February 2018, respectively.
(2)
The total intrinsic value of performance units released during the six months ended June 30, 2019, was $7.7 million. The intrinsic value is based upon the closing price of EOG's common stock on the date the performance units are released.
(3)
The total intrinsic value of performance units outstanding at June 30, 2019 and 2018 was approximately $49.2 million and $71.4 million, respectively.
(4)
Upon the application of the relevant performance multiple at the completion of each of the remaining Performance Periods, a minimum of 205 and a maximum of 852 performance units could be outstanding.

At June 30, 2019, unrecognized compensation expense related to performance units totaled $6.0 million. Such unrecognized expense will be amortized on a straight-line basis over a weighted average period of 1.2 years.

3.    Net Income Per Share

The following table sets forth the computation of Net Income Per Share for the three-month and six