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EOG Resources Reports Third Quarter 2013 Results; Again Increases 2013 Production Growth Targets for Crude Oil and Total Company

FOR IMMEDIATE RELEASE: November 6, 2013

 

 

HOUSTON, Nov. 6, 2013 /PRNewswire/ --

  • Delivers 39 Percent Year-Over-Year Total Company Crude Oil Production Growth
  • Raises 2013 Full-Year Crude Oil Production Goal to 39 Percent from 35 Percent
  • Increases 2013 Total Company Production Growth Target to 9 Percent from 7.5 Percent
  • Reports Record Western Eagle Ford Oil Well
  • Continues to Achieve Stellar Economic Results from the Eagle Ford, Bakken/Three Forks and Leonard Plays
  • Announces Mark G. Papa Will Continue as Director Following Year-end Retirement

EOG Resources, Inc. (NYSE: EOG) (EOG) today reported third quarter 2013 net income of $462.5 million, or $1.69 per share. This compares to third quarter 2012 net income of $355.5 million, or $1.31 per share.

 

Consistent with some analysts' practice of matching realizations to settlement months and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income for the third quarter 2013 was $634.3 million, or $2.32 per share. Adjusted non-GAAP net income for the third quarter 2012 was $468.7 million, or $1.73 per share. The results for the third quarter 2013 included net gains on asset dispositions of $5.2 million, net of tax ($0.02 per share), impairments of $2.4 million, net of tax ($0.01 per share) related to the sale of certain non-core North American assets and a previously disclosed non-cash net loss of $293.4 million ($187.8 million after tax, or $0.69 per share) on the mark-to-market of financial commodity contracts. During the third quarter, the net cash outflow related to financial commodity contracts was $20.6 million ($13.2 million after tax, or $0.05 per share). (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income to GAAP net income.)

EOG reported strong, sustained financial growth for the first nine months of 2013. Earnings per share increased 49 percent, discretionary cash flow increased 29 percent and adjusted EBITDAX rose 27 percent, compared to the same 2012 period. (Please refer to the attached tables for the reconciliation of non-GAAP discretionary cash flow to net cash provided by operating activities (GAAP) and adjusted EBITDAX (non-GAAP) to income before interest expense and income taxes (GAAP).)

Operational Highlights

EOG increased its U.S. crude oil and condensate production by 41 percent and total company crude oil and condensate production by 39 percent in the third quarter of 2013 over the same prior year period. Total company liquids production — crude oil, condensate and natural gas liquids (NGLs) — rose 33 percent.

EOG is increasing its full year crude oil and condensate production growth target for the second time in 2013 to 39 percent from 35 percent, following three quarters of extraordinary results. Total natural gas liquids production is expected to increase 17 percent, compared to the previous 14 percent target, and total natural gas production is projected to decline 11 percent, consistent with EOG's longstanding strategy in North America. Overall, EOG is targeting 9 percent total company production growth in 2013, versus its previous goal of 7.5 percent. In addition, EOG is again lowering certain unit cost estimates, based on results to date.

"EOG is consistently making the best oil wells in the best two oil plays in North America, the Eagle Ford and Bakken/Three Forks," said President and Chief Executive Officer William R. "Bill" Thomas.

South Texas Eagle Ford

In the first three quarters of 2013, EOG built momentum in its western Eagle Ford acreage by increasing drilling activity from six to nine rigs. Through completion advancements, initial production rates have increased more than 20 percent since the first quarter 2013. This enhanced productivity across Atascosa, La Salle and McMullen Counties mirrors the performance level EOG already has reached in its eastern play activities.

During the third quarter, EOG reported its top well to date from its western Eagle Ford acreage. The Kaiser Junior Unit #1H began initial production at 2,815 barrels of oil per day (Bopd) with 160 barrels per day (Bpd) of NGLs and 940 thousand cubic feet per day (Mcfd) of natural gas in Atascosa County. Other third quarter western wells include the Janet Unit #1H and Nelson Zella Unit #1H and #2H in La Salle County, which were completed with initial rates of 2,430, 1,960 and 2,810 Bopd with 175, 120 and 100 Bpd of NGLs and 1,000, 700 and 590 Mcfd of natural gas, respectively. In McMullen County, the River Lowe Ranch #4H, #5H, #6H, #7H, #8H and #9H began sales at initial rates ranging from 1,970 to 2,115 Bopd with 125 to 135 Bpd of NGLs and 720 to 780 Mcfd of natural gas. EOG has 100 percent working interest in these 10 wells.

Highlights from EOG's eastern Eagle Ford acreage include four DeWitt County wells. The Justiss Unit #1H, #2H and #3H were completed at 3,885, 3,560 and 3,940 Bopd with 520, 605 and 670 Bpd of NGLs and 3.0, 3.5 and 3.9 million cubic feet per day (MMcfd) of natural gas, respectively. Also in DeWitt County, the Vinklarek Unit #1H was completed at 4,510 Bopd with 715 Bpd of NGLs and 4.2 MMcfd of natural gas. In Gonzales County, the Baker-Deforest Unit #5H, #6H and #7H came on-line at 3,200, 3,560 and 4,115 Bopd with 420, 490 and 535 Bpd of NGLs and 2.5, 2.9 and 3.1 MMcfd of natural gas, respectively. EOG has 100 percent working interest in these seven Eagle Ford wells.

"Because we now are achieving high growth, high rate-of-return results from our western acreage, we have effectively raised the bar for all of EOG's Eagle Ford acreage," Thomas said.

With a 25-rig drilling program, EOG is increasing the total net wells planned across its Eagle Ford acreage in 2013 from 440 to 460.

North Dakota Bakken/Three Forks

EOG's exceptional Eagle Ford results were replicated in the North Dakota Bakken/Three Forks through improvements in initial production rates and efficient execution of its drilling program.

In the Bakken Core, EOG brought a number of Mountrail County wells to sales. The Fertile 50-0509H, in which EOG has 100 percent working interest, began producing crude oil at 2,315 Bopd with 1.0 MMcfd of rich natural gas. The Van Hook 126-2523H and 130-2526H came on-line at peak rates of 2,235 and 1,910 Bopd with 1.1 and 0.9 MMcfd of rich natural gas, respectively. EOG has 67 and 91 percent working interest in these wells, respectively. The Wayzetta 155-2636H, 137-2226H and 150-1509H had initial crude oil rates ranging from 2,060 to 2,500 Bpd with 1.0 to 1.2 MMcfd of rich natural gas. EOG has 72 percent, 65 percent and 63 percent working interest in these wells, respectively.

On its Antelope Extension acreage in McKenzie County, EOG highlighted three wells from the first bench of the Three Forks formation. The Bear Den 100-2017H and 101-2019H began producing at rates of 2,100 and 1,235 Bopd with 2.0 and 1.2 MMcfd of rich natural gas, respectively. The third well, the Bear Den 23-2019H had an initial production rate of 1,665 Bopd with 1.6 MMcfd of rich natural gas. EOG has 91 percent working interest in these three wells.

EOG remains focused on the highly economic Bakken Core and Antelope Extension areas. Based on continuous gains in results from both the Bakken and Three Forks formations, plans are to increase the level of drilling activity in 2014.

"Every quarter, EOG's technical understanding of the Eagle Ford and Bakken/Three Forks expands, as we further modify completion techniques that boost overall well productivity and economics," Thomas said.

Delaware Basin Leonard

During the third quarter, EOG completed three wells in the Delaware Basin Leonard play in Lea County, New Mexico. The Endurance 36 State Com #3H and #4H and Brown Bear 36 State #1H began production at 735, 875 and 720 Bopd, respectively. The wells, in which EOG has 100 percent working interest, also produced 85, 105 and 120 Bpd of NGLs with 460, 570 and 665 Mcfd of natural gas, respectively. Plans are to increase drilling activity in the Leonard in 2014.

"With premier positions in the Eagle Ford and Bakken/Three Forks, EOG continues to set new crude oil production records. Through our tenacious attention to the completion process, we are enhancing the productivity and profitability of these world class assets to ultimately realize a greater volume of the potential oil in the ground," said Mark G. Papa, Executive Chairman of the Board. "We also are pleased with the strides EOG is making in the Delaware Basin Leonard."

Hedging Activity

In recent weeks, EOG increased the amount of crude oil hedges in place for the remainder of 2013 and 2014. For the period November 1 through December 31, 2013, EOG has crude oil financial price swap contracts in place for 126,000 Bopd at a weighted average price of $98.80 per barrel, excluding unexercised options.

For the period January 1 through June 30, 2014, EOG has crude oil financial price swap contracts in place for approximately 123,000 Bopd at a weighted average price of $96.44 per barrel, excluding unexercised options. For the period July 1 through December 31, 2014, EOG has crude oil financial price swap contracts in place for 9,000 Bopd at an average price of $95.30 per barrel, excluding unexercised options.

EOG also has hedges in place for natural gas volumes. For December 2013, EOG has natural gas financial price swap contracts in place for 150,000 million British thermal units per day (MMBtud) at a weighted average price of $4.79 per million British thermal units (MMBtu), excluding unexercised options. For the full year 2014, EOG has natural gas financial price swap contracts in place for 170,000 MMBtud at a weighted average price of $4.54 per MMBtu, excluding unexercised options. (For a comprehensive summary of crude oil and natural gas derivative contracts, please refer to the attached tables.)      

Capital Structure

For the first nine months of 2013, EOG's cash flows from operating activities and proceeds from asset sales exceeded total capital expenditures.

To date, EOG has closed on approximately $620 million of asset sales, exceeding its stated goal for the year. Proceeds from asset sales for the full year 2013 are expected to be approximately $750 million. At September 30, 2013, EOG's total debt outstanding was $6,313 million for a debt-to-total capitalization ratio of 30 percent. Taking into account cash on the balance sheet of $1,319 million at the end of the third quarter, EOG's net debt was $4,994 million for a net debt-to-total capitalization ratio of 25 percent. (Please refer to the attached tables for the reconciliation of net debt (non-GAAP) to current and long-term debt (GAAP) and the reconciliation of net debt-to-total capitalization ratio (non-GAAP) to debt-to-total capitalization ratio (GAAP).)

Board of Directors

As previously announced, in addition to his current role as Chief Executive Officer, Thomas will succeed Papa as Chairman of the Board on January 1, 2014. Papa will retire both as Executive Chairman of the Board and as an employee at year-end, although he will continue to serve as an EOG director.

Conference Call November 7, 2013

EOG's third quarter 2013 results conference call will be available via live audio webcast at 8 a.m. Central time (9 a.m. Eastern time) on Thursday, November 7, 2013. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through November 21, 2013.

EOG Resources, Inc. is one of the largest independent (non-integrated) crude oil and natural gas companies in the United States with proved reserves in the United States, Canada, Trinidad, the United Kingdom and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG."

This press release includes 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 and costs, 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," "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 income or cash flows or pay 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.  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 and extent of changes in prices for, 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 can optimize reserve recovery and economically develop its plays utilizing horizontal and vertical drilling, advanced completion technologies and hydraulic fracturing;
  • the extent to which EOG is successful in its efforts to economically develop its acreage in, and to produce reserves and achieve anticipated production levels from, its existing and future crude oil and natural gas exploration and development projects, given the risks and uncertainties and capital expenditure requirements inherent in drilling, completing and operating crude oil and natural gas wells and the potential for interruptions of development and production, whether involuntary or intentional as a result of market or other conditions;
  • the extent to which EOG is successful in its efforts to market its crude oil, natural gas and related commodity production;
  • the availability, proximity and capacity of, and costs associated with, gathering, processing, compression and transportation 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, environmental laws and regulations relating to air emissions, waste disposal, hydraulic fracturing and access to and use of water, laws and regulations imposing conditions and restrictions on drilling and completion operations and laws and regulations with respect to derivatives and hedging activities;
  • 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 employees and other personnel, equipment, materials and services and, related thereto, the availability and cost of employees and other personnel, equipment, materials 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 of production, gathering, processing, compression 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 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;
  • political conditions and developments around the world (such as 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 cyber security breaches; and
  • the other factors described under Item 1A, "Risk Factors", on pages 16 through 23 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 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 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).  As noted above, statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves and/or other estimated reserves 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, 2012, 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.

For Further Information Contact:

Investors

 

Maire A. Baldwin

 

(713) 651-6EOG (651-6364)

 

Kimberly A. Matthews

 

(713) 571-4676

   
 

Media

 

K Leonard

 

(713) 571-3870

 

 

EOG RESOURCES, INC.
FINANCIAL REPORT
(Unaudited; in millions, except per share data)

 
 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2013

 

2012

 

2013

 

2012

                       

Net Operating Revenues

$

3,541.4

 

$

2,954.9

 

$

10,738.1

 

$

8,670.8

Net Income 

$

462.5

 

$

355.5

 

$

1,616.9

 

$

1,075.3

Net Income Per Share 

                     
 

Basic

$

1.71

 

$

1.33

 

$

5.99

 

$

4.03

 

Diluted

$

1.69

 

$

1.31

 

$

5.93

 

$

3.98

Average Number of Common Shares

                     
 

Basic

 

270.5

   

267.9

   

269.9

   

267.1

 

Diluted

 

273.6

   

271.0

   

272.9

   

270.3

 
 

SUMMARY INCOME STATEMENTS
(Unaudited; in thousands, except per share data)

 
 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2013

 

2012

 

2013

 

2012

Net Operating Revenues

             
 

Crude Oil and Condensate

$

2,337,742

 

$

1,512,168

 

$

6,132,574

 

$

4,198,753

 

Natural Gas Liquids

 

208,190

   

170,351

   

556,176

   

518,684

 

Natural Gas

 

396,123

   

426,728

   

1,269,604

   

1,153,433

 

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

 

(293,387)

   

4,671

   

(206,853)

   

327,328

 

Gathering, Processing and Marketing

 

872,699

   

764,385

   

2,755,069

   

2,193,290

 

Gains on Asset Dispositions, Net

 

8,183

   

67,376

   

185,569

   

248,134

 

Other, Net

 

11,846

   

9,176

   

45,956

   

31,203

   

Total

 

3,541,396

   

2,954,855

   

10,738,095

   

8,670,825

Operating Expenses

                     
 

Lease and Well

 

299,169

   

253,452

   

817,057

   

765,703

 

Transportation Costs

 

219,790

   

164,407

   

628,538

   

431,642

 

Gathering and Processing Costs

 

31,121

   

26,223

   

81,522

   

72,403

 

Exploration Costs

 

39,429

   

45,953

   

130,968

   

136,909

 

Dry Hole Costs

 

19,548

   

1,924

   

59,260

   

13,005

 

Impairments 

 

85,917

   

62,875

   

177,432

   

250,239

 

Marketing Costs

 

876,761

   

755,457

   

2,746,900

   

2,155,043

 

Depreciation, Depletion and Amortization

 

928,800

   

825,851

   

2,685,719

   

2,383,359

 

General and Administrative

 

98,654

   

92,870

   

257,246

   

244,866

 

Taxes Other Than Income

 

172,438

   

120,096

   

458,566

   

359,798

   

Total

 

2,771,627

   

2,349,108

   

8,043,208

   

6,812,967

 

Operating Income

 

769,769

   

605,747

   

2,694,887

   

1,857,858

 

Other Income, Net

 

11,168

   

7,596

   

5,867

   

22,902

 

Income Before Interest Expense and Income Taxes

 

780,937

   

613,343

   

2,700,754

   

1,880,760

 

Interest Expense, Net

 

59,382

   

53,154

   

182,950

   

154,198

 

Income Before Income Taxes

 

721,555

   

560,189

   

2,517,804

   

1,726,562

 

Income Tax Provision

 

259,057

   

204,698

   

900,889

   

651,284

 

Net Income

$

462,498

 

$

355,491

 

$

1,616,915

 

$

1,075,278

 

Dividends Declared per Common Share

$

0.1875

 

$

0.17

 

$

0.5625

 

$

0.51

 

 

 

 

EOG RESOURCES, INC.

OPERATING HIGHLIGHTS

(Unaudited)

 
 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2013

 

2012

 

2013

 

2012

Wellhead Volumes and Prices

     

Crude Oil and Condensate Volumes (MBbld) (A)

     
 

United States

 

227.6

   

161.3

   

204.3

   

147.6

 

Canada

 

6.1

   

6.7

   

6.7

   

6.9

 

Trinidad

 

1.2

   

1.2

   

1.3

   

1.7

 

Other International (B)

 

0.1

   

0.1

   

0.1

   

0.1

   

Total

 

235.0

   

169.3

   

212.4

   

156.3

 

Average Crude Oil and Condensate Prices ($/Bbl) ©

                     
 

United States

$

108.56

 

$

97.64

 

$

106.36

 

$

98.26

 

Canada

 

97.90

   

86.09

   

90.53

   

86.25

 

Trinidad

 

94.96

   

90.84

   

91.80

   

93.85

 

Other International (B)

 

81.30

   

83.59

   

88.90

   

90.34

   

Composite

 

108.20

   

97.13

   

105.76

   

97.68

 

Natural Gas Liquids Volumes (MBbld) (A)

                     
 

United States

 

68.2

   

58.1

   

63.5

   

54.3

 

Canada

 

0.9

   

0.9

   

0.9

   

0.9

   

Total

 

69.1

   

59.0

   

64.4

   

55.2

 

Average Natural Gas Liquids Prices ($/Bbl) ©

                     
 

United States

$

32.75

 

$

30.95

 

$

31.55

 

$

35.43

 

Canada

 

32.24

   

41.09

   

37.83

   

44.61

   

Composite

 

32.74

   

31.11

   

31.64

   

35.58

 

Natural Gas Volumes (MMcfd) (A)

                     
 

United States

 

899

   

1,022

   

920

   

1,051

 

Canada

 

76

   

94

   

78

   

98

 

Trinidad

 

352

   

387

   

350

   

393

 

Other International (B)

 

7

   

9

   

8

   

10

   

Total

 

1,334

   

1,512

   

1,356

   

1,552

 

Average Natural Gas Prices ($/Mcf) ©

                     
 

United States

$

3.19

 

$

2.61

 

$

3.33

 

$

2.39

 

Canada

 

2.61

   

2.39

   

3.01

   

2.35

 

Trinidad

 

3.41

   

4.38

   

3.71

   

3.60

 

Other International (B)

 

6.12

   

5.67

   

6.58

   

5.70

   

Composite

 

3.23

   

3.07

   

3.43

   

2.71

 

Crude Oil Equivalent Volumes (MBoed) (D)

                     
 

United States 

 

445.7

   

389.7

   

421.2

   

377.2

 

Canada

 

19.7

   

23.2

   

20.7

   

24.1

 

Trinidad

 

59.8

   

65.7

   

59.5

   

67.1

 

Other International (B)

 

1.2

   

1.7

   

1.4

   

1.8

   

Total

 

526.4

   

480.3

   

502.8

   

470.2

 

Total MMBoe (D)

 

48.4

   

44.2

   

137.3

   

128.8

 

(A)

Thousand barrels per day or million cubic feet per day, as applicable.

(B)

Other International includes EOG's United Kingdom, China and Argentina operations.

© 

Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments.

(D)

Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, natural gas liquids and natural gas. Crude oil equivalents are determined using the ratio of 1.0 barrel of crude oil and condensate or natural gas liquids 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)

 
 

September 30,

 

December 31,

 

2013

 

2012

ASSETS

Current Assets

         
 

Cash and Cash Equivalents

$

1,318,817

 

$

876,435

 

Accounts Receivable, Net

 

1,849,517

   

1,656,618

 

Inventories

 

566,004

   

683,187

 

Assets from Price Risk Management Activities

 

44,484

   

166,135

 

Income Taxes Receivable

 

42,296

   

29,163

 

Deferred Income Taxes

 

127,658

   

-

 

Other

 

243,191

   

178,346

     

Total

 

4,191,967

   

3,589,884

 

Property, Plant and Equipment

         
 

Oil and Gas Properties (Successful Efforts Method)

 

41,887,901

   

38,126,298

 

Other Property, Plant and Equipment

 

2,954,085

   

2,740,619

     

Total Property, Plant and Equipment

 

44,841,986

   

40,866,917

 

Less:  Accumulated Depreciation, Depletion and Amortization

 

(19,242,795)

   

(17,529,236)

     

Total Property, Plant and Equipment, Net

 

25,599,191

   

23,337,681

Other Assets

 

356,112

   

409,013

Total Assets

$

30,147,270

 

$

27,336,578

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

         
 

Accounts Payable

$

2,247,714

 

$

2,078,948

 

Accrued Taxes Payable

 

200,477

   

162,083

 

Dividends Payable

 

50,753

   

45,802

 

Liabilities from Price Risk Management Activities

 

174,648

   

7,617

 

Deferred Income Taxes

 

-

   

22,838

 

Current Portion of Long-Term Debt

 

406,579

   

406,579

 

Other

 

267,162

   

200,191

     

Total

 

3,347,333

   

2,924,058

 
 

Long-Term Debt

 

5,906,494

   

5,905,602

Other Liabilities

 

846,780

   

894,758

Deferred Income Taxes

 

5,185,083

   

4,327,396

Commitments and Contingencies

         
                 

Stockholders' Equity

         
 

Common Stock, $0.01 Par, 640,000,000 Shares Authorized and 273,061,895 Shares Issued at September 30, 2013 and 271,958,495 Shares Issued at December 31, 2012 

         
   

202,731

   

202,720

 

Additional Paid in Capital

 

2,614,898

   

2,500,340

 

Accumulated Other Comprehensive Income 

 

425,283

   

439,895

 

Retained Earnings

 

11,639,302

   

10,175,631

 

Common Stock Held in Treasury, 142,467 Shares at September 30, 2013 and 326,264 Shares at December 31, 2012

 

(20,634)

   

 

(33,822)

     

Total Stockholders' Equity

 

14,861,580

   

13,284,764

Total Liabilities and Stockholders' Equity

$

30,147,270

 

$

27,336,578

 

 
 

EOG RESOURCES, INC.

SUMMARY STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)

               
 

Nine Months Ended

 

September 30,

 

2013

 

2012

Cash Flows from Operating Activities

         

Reconciliation of Net Income to Net Cash Provided by Operating Activities:

         
 

Net Income 

$

1,616,915

 

$

1,075,278

 

Items Not Requiring (Providing) Cash

         
   

Depreciation, Depletion and Amortization

 

2,685,719

   

2,383,359

   

Impairments 

 

177,432

   

250,239

   

Stock-Based Compensation Expenses

 

103,171

   

101,337

   

Deferred Income Taxes

 

657,686

   

385,878

   

Gains on Asset Dispositions, Net

 

(185,569)

   

(248,134)

   

Other, Net

 

460

   

(10,266)

 

Dry Hole Costs

 

59,260

   

13,005

 

Mark-to-Market Commodity Derivative Contracts

         
   

Total Losses (Gains)

 

206,853

   

(327,328)

   

Realized Gains

 

115,323

   

555,946

 

Excess Tax Benefits from Stock-Based Compensation

 

(50,230)

   

(49,426)

 

Other, Net

 

16,222

   

12,675

 

Changes in Components of Working Capital and Other Assets and Liabilities

         
   

Accounts Receivable

 

(213,746)

   

(112,174)

   

Inventories

 

61,147

   

(154,766)

   

Accounts Payable

 

145,199

   

83,682

   

Accrued Taxes Payable

 

73,197

   

42,791

   

Other Assets

 

(78,799)

   

(120,085)

   

Other Liabilities

 

10,889

   

39,871

 

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

 

 

(72,945)

   

87,708

Net Cash Provided by Operating Activities

 

5,328,184

   

4,009,590

           

Investing Cash Flows

         
 

Additions to Oil and Gas Properties

 

(5,084,335)

   

(5,326,884)

 

Additions to Other Property, Plant and Equipment

 

(271,136)

   

(477,351)

 

Proceeds from Sales of Assets

 

587,273

   

1,213,550

 

Changes in Restricted Cash

 

(68,061)

   

 

-

 

Changes in Components of Working Capital Associated with Investing Activities

 

72,916

   

(87,654)

Net Cash Used in Investing Activities

 

(4,763,343)

   

(4,678,339)

           

Financing Cash Flows

         
 

Long-Term Debt Borrowings

 

-

   

1,234,138

 

Dividends Paid

 

(147,731)

   

(134,412)

 

Excess Tax Benefits from Stock-Based Compensation

 

50,230

   

49,426

 

Treasury Stock Purchased

 

(55,562)

   

(44,799)

 

Proceeds from Stock Options Exercised and Employee Stock Purchase Plan

 

30,080

   

59,714

 

Debt Issuance Costs

 

-

   

(1,771)

 

Repayment of Capital Lease Obligation

 

(4,318)

   

(1,407)

 

Other, Net

 

29

   

(54)

Net Cash (Used in) Provided by Financing Activities

 

(127,272)

   

1,160,835

           

Effect of Exchange Rate Changes on Cash

 

4,813

   

4,811

           

Increase in Cash and Cash Equivalents

 

442,382

   

496,897

Cash and Cash Equivalents at Beginning of Period

 

876,435

   

615,726

Cash and Cash Equivalents at End of Period

$

1,318,817

 

$

1,112,623

 

 

   
   

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 nine-month periods ended September 30, 2013 and 2012 reported Net Income (GAAP) to reflect actual net cash realized from financial commodity price transactions by eliminating the unrealized mark-to-market losses (gains) from these transactions, to eliminate the net gains on asset dispositions in North America in 2013 and 2012 and to add back impairment charges related to certain of EOG's non-core North American assets in 2013 and 2012.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match realizations to production settlement months and make certain other adjustments to exclude non-recurring items.  EOG management uses this information for comparative purposes within the industry.

 
   
 

Three Months Ended 

 

Nine Months Ended

 
 

September 30,

 

September 30,

 
 

2013

 

2012

 

2013

 

2012

 
   

Reported Net Income (GAAP)

$

462,498

 

$

355,491

 

$

1,616,915

 

$

1,075,278

 
   

Mark-to-Market (MTM)
  Commodity Derivative
  Contracts Impact

 
 

Total Losses (Gains)

 

293,387

   

(4,671)

   

206,853

   

(327,328)

 
 

Realized (Losses) Gains 

 

(20,636)

   

249,166

   

115,323

   

555,946

 
   

Subtotal

 

272,751

   

244,495

   

322,176

   

228,618

 
   
 

After-Tax MTM Impact

 

174,628

   

156,537

   

206,273

   

146,372

 
   

Less: Net Gains on Asset Dispositions, Net of Tax

 

(5,241)

   

(43,354)

   

(129,616)

   

(161,652)

 

Add: Impairments of Certain North American Assets, Net of Tax

 

2,422

   

-

   

4,425

   

38,575

 
   

Adjusted Net Income (Non-GAAP)

$

634,307

 

$

468,674

 

$

1,697,997

 

$

1,098,573

 
   

Net Income Per Share
  (GAAP)

 
 

Basic

 

$

1.71

 

$

1.33

 

$

5.99

 

$

4.03

 
 

Diluted

$

1.69

 

$

1.31

 

$

5.93

 (a) 

$

3.98

(b)

   

Percentage Increase - [(a) - (b)] / (b)

           

49%

       
   

Adjusted Net Income Per
  Share (Non-GAAP)

 
 

Basic

 

$

2.35

 

$

1.75

 

$

6.29

 

$

4.11

 
 

Diluted

$

2.32

 

$

1.73

 

$

6.22

 

$

4.06

 
   

Average Number of
  Common Shares  

 
 

Basic

   

270,471

   

267,941

   

269,934

   

267,136

 
 

Diluted

 

273,576

   

270,982

   

272,856

   

270,328

 

 

 

   
   

EOG RESOURCES, INC.

 

QUANTITATIVE RECONCILIATION OF DISCRETIONARY CASH FLOW (NON-GAAP)

 

TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)

 

(Unaudited; in thousands)

 
   

The following chart reconciles the three-month and nine-month periods ended September 30, 2013 and 2012 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow (Non-GAAP).  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Exploration Costs (excluding Stock-Based Compensation Expenses), Excess Tax Benefits from Stock-Based Compensation, 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 management uses this information for comparative purposes within the industry.

 
   
 

Three Months Ended

 

Nine Months Ended

 
 

September 30,

 

September 30,

 
 

2013

 

2012

 

2013

 

2012

 
   

Net Cash Provided by Operating Activities (GAAP)

$

2,012,472

 

$

1,436,372

 

$

5,328,184

 

$

4,009,590

 
                         

Adjustments

 
 

Exploration Costs (excluding Stock-Based Compensation Expenses) 

 

32,755

   

38,485

   

110,330

   

116,563

 
 

Excess Tax Benefits from Stock-Based Compensation

 

28,361

   

27,311

   

50,230

   

49,426

 
 

Changes in Components of Working Capital and Other Assets and Liabilities

                       
     

Accounts Receivable

 

48,937

   

227,593

   

213,746

   

112,174

 
     

Inventories

 

(39,062)

   

51,190

   

(61,147)

   

154,766

 
     

Accounts Payable

 

(3,830)

   

92,673

   

(145,199)

   

(83,682)

 
     

Accrued Taxes Payable

 

(48,381)

   

(28,428)

   

(73,197)

   

(42,791)

 
     

Other Assets

 

(13,506)

   

17,782

   

78,799

   

120,085

 
     

Other Liabilities

 

(62,289)

   

(67,226)

   

(10,889)

   

(39,871)

 
 

Changes in Components of Working Capital Associated with Investing and

                       
   

Financing Activities

 

53,306

   

(185,161)

   

72,945

   

(87,708)

 
   

Discretionary Cash Flow (Non-GAAP)

$

2,008,763

 

$

1,610,591

 

$

5,563,802

 (a) 

$

4,308,552

 (b) 

                               

Percentage Increase - [(a) - (b)] / (b)

             

29%

       

 

EOG RESOURCES, INC.

CRUDE OIL AND NATURAL GAS FINANCIAL

COMMODITY DERIVATIVE CONTRACTS

 

EOG has entered into additional crude oil derivative contracts since filing its Current Report on Form 8-K dated October 10, 2013.  In addition, during September 2013, EOG settled certain crude oil derivative contracts covering notional volumes of 5,000 Bbld for the period July 1, 2014 through December 31, 2014.  Presented below is a comprehensive summary of EOG's crude oil and natural gas derivative contracts at November 6, 2013, with notional volumes expressed in Bbld and MMBtud and prices expressed in $/Bbl and $/MMBtu.  EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method.

 

CRUDE OIL DERIVATIVE CONTRACTS

 

Weighted

 

Volume 

 

Average Price

 

(Bbld) 

 

($/Bbl) 

 

2013(1)

 

January 2013 (closed)

101,000

 

$           99.29

 

February 1, 2013 through April 30, 2013 (closed)

109,000

 

99.17

 

May 1, 2013 through June 30, 2013 (closed)

101,000

 

99.29

 

July 2013 (closed)

111,000

 

98.25

 

August 1, 2013 through October 31, 2013 (closed)

126,000

 

98.80

 

November 1, 2013 through December 31, 2013

126,000

 

98.80

 
 

2014(2)

 

January 1, 2014 through March 31, 2014

 

128,000

 

$           96.44

 

April 1, 2014 through June 30, 2014

 

118,000

 

96.43

 

July 1, 2014 through December 31, 2014

 

9,000

 

95.30

 

(1)

EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for an additional six-month period.  Options covering a notional volume of 64,000 Bbld are exercisable on December 31, 2013.  If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 64,000 Bbld at an average price of $99.58 per barrel for each month during the period January 1, 2014 through June 30, 2014.  

   

(2)

EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for additional six-month and nine-month periods.  Options covering a notional volume of 10,000 Bbld are exercisable on or about March 31, 2014.  If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 10,000 Bbld at an average price of $96.60 per barrel for each month during the period April 1, 2014 through December 31, 2014.  Options covering a notional volume of 103,000 Bbld are exercisable on or about June 30, 2014.  If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 103,000 Bbld at an average price of $96.60 per barrel for each month during the period July 1, 2014 through December 31, 2014.  Options covering a notional volume of 9,000 Bbld are exercisable on or about December 31, 2014.  In addition, in connection with the crude oil derivative contracts settled in September 2013 covering a notional volume of 5,000 Bbld, counterparties retain the option to enter into derivative contracts on December 31, 2014.  If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 14,000 Bbld at an average price of $95.35 per barrel for each month during the period January 1, 2015 through June 30,2015.

 

NATURAL GAS DERIVATIVE CONTRACTS

 

Weighted

 

Volume

 

Average Price

 

(MMBtud) 

 

($/MMBtu) 

 

2013(3)

 

January 1, 2013 through April 30, 2013 (closed)

150,000

 

$             4.79

 

May 1, 2013 through October 31, 2013 (closed)

200,000

 

4.72

 

November 2013 (closed)

150,000

 

4.79

 

December 2013

150,000

 

4.79

 
 

2014(4)

 

January 1, 2014 through December 31, 2014

170,000

 

$             4.54

 

(3)

EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates.  Such options are exercisable monthly up until the settlement date of each monthly contract.  For December 2013, if the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 150,000 MMBtud at an average price of $4.79 per MMBtu.

   

(4)

EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates.  Additionally, in connection with certain natural gas derivative contracts settled in July 2012, counterparties retain an option of entering into derivative contracts at future dates.  All such options are exercisable monthly up until the settlement date of each monthly contract.  If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 320,000 MMBtud at an average price of $4.66 per MMBtu for each month during the period January 1, 2014 through December 31, 2014.

 
 

$/Bbl

 

Dollars per barrel

   
 

$/MMBtu

 

Dollars per million British thermal units

   
 

Bbld

 

Barrels per day

   
 

MMBtu

 

Million British thermal units

   
 

MMBtud

 

Million British thermal units per day

   

 



 

 

 

EOG RESOURCES, INC.

 

QUANTITATIVE RECONCILIATION OF ADJUSTED EARNINGS BEFORE INTEREST EXPENSE, 

 

INCOME TAXES, DEPRECIATION, DEPLETION AND AMORTIZATION, EXPLORATION COSTS, 

 

DRY HOLE COSTS, IMPAIRMENTS AND ADDITIONAL ITEMS (ADJUSTED EBITDAX)

 

 (NON-GAAP) TO INCOME BEFORE INTEREST EXPENSE AND INCOME TAXES (GAAP)

 

(Unaudited; in thousands)

 
                             

The following chart adjusts the three-month and nine-month periods ended September 30, 2013 and 2012 reported Income Before Interest Expense and Income Taxes (GAAP) to Earnings Before Interest Expense, Income Taxes, Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments (EBITDAX) (Non-GAAP) and further adjusts such amount to reflect actual net cash realized from financial commodity derivative transactions by eliminating the unrealized mark-to-market (MTM) losses (gains) from these transactions and to eliminate the net gains on asset dispositions in North America in 2013 and 2012.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Income Before Interest Expense and Income Taxes (GAAP) to add back 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 items.  EOG management uses this information for comparative purposes within the industry.

 
                             
     

Three Months Ended

 

Nine Months Ended 

 
     

September 30,

 

September 30,

 
     

2013

 

2012

 

2013

 

2012

 
                             

Income Before Interest Expense and Income Taxes (GAAP)

$

780,937

 

$

613,343

 

$

2,700,754

 

$

1,880,760

 
                             

Adjustments

                       
 

Depreciation, Depletion and Amortization

 

928,800

   

825,851

   

2,685,719

   

2,383,359

 
 

Exploration Costs

 

39,429

   

45,953

   

130,968

   

136,909

 
 

Dry Hole Costs

 

19,548

   

1,924

   

59,260

   

13,005

 
 

Impairments 

 

85,917

   

62,875

   

177,432

   

250,239

 
   

EBITDAX (Non-GAAP)

 

1,854,631

   

1,549,946

   

5,754,133

   

4,664,272

 
 

Total Losses (Gains) on MTM Commodity Derivative Contracts 

 

293,387

   

(4,671)

   

206,853

   

(327,328)

 
 

Realized (Losses) Gains on MTM Commodity Derivative Contracts 

(20,636)

   

249,166

   

115,323

   

555,946

 
 

Net Gains on Asset Dispositions

 

(8,183)

   

(67,376)

   

(185,569)

   

(248,134)

 
   

Adjusted EBITDAX (Non-GAAP)

$

2,119,199

 

$

1,727,065

 

$

5,890,740

 (a) 

$

4,644,756

 (b) 

                             

Percentage Increase - [(a) - (b)] / (b)

         

27%

       

 

 

 

 
 

EOG RESOURCES, INC.

QUANTITATIVE RECONCILIATION OF NET DEBT (NON-GAAP) AND TOTAL 

CAPITALIZATION (NON-GAAP) AS USED IN THE CALCULATION OF 

THE NET DEBT-TO-TOTAL CAPITALIZATION RATIO (NON-GAAP) TO

CURRENT AND LONG-TERM DEBT (GAAP) AND TOTAL CAPITALIZATION (GAAP)

(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

 
   

September 30,

 
   

2013

 
       

Total Stockholders' Equity - (a)

$

14,862

 
       

Current and Long-Term Debt - (b)

 

6,313

 

Less: Cash 

 

(1,319)

 

Net Debt (Non-GAAP) - ©

 

4,994

 
       

Total Capitalization (GAAP) - (a) + (b)

$

21,175

 
       

Total Capitalization (Non-GAAP) - (a) + ©

$

19,856

 
       

Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]

 

30%

 
       

Net Debt-to-Total Capitalization (Non-GAAP) - © / [(a) + ©]

 

25%

 
 
 
 

EOG RESOURCES, INC.

  FOURTH QUARTER AND FULL YEAR 2013 FORECAST AND BENCHMARK COMMODITY PRICING

 
 

(a)  Fourth Quarter and Full Year 2013 Forecast

             
 

The forecast items for the fourth quarter and full year 2013 set forth below for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of the accompanying press release.  EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.  This forecast, which should be read in conjunction with the accompanying press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.

 
 

(b)  Benchmark Commodity Pricing

                 
 

EOG bases United States, Canada and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.

 

EOG bases United States and Canada natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.

                               
                   

ESTIMATED RANGES

         
                   

(Unaudited)

         
           

4Q 2013

   

Full Year 2013

Daily Production

                     
 

Crude Oil and Condensate Volumes (MBbld)

                     
   

United States

 

227.0

-

 

233.0

   

210.0

-

 

212.0

   

Canada

 

6.0

-

 

8.0

   

6.0

-

 

7.0

   

Trinidad

 

0.9

-

 

1.1

   

1.1

-

 

1.3

   

Other International

 

0.0

-

 

0.0

   

0.0

-

 

0.0

     

Total

 

233.9

-

 

242.1

   

217.1

-

 

220.3

 
 

Natural Gas Liquids Volumes (MBbld)

                     
   

United States

 

64.0

-

 

70.0

   

64.0

-

 

65.0

   

Canada

 

0.7

-

 

1.1

   

0.9

-

 

1.0

     

Total

 

64.7

-

 

71.1

   

64.9

-

 

66.0

                               
 

Natural Gas Volumes (MMcfd)

                     
   

United States

 

855

-

 

880

   

904

-

 

910

   

Canada

 

62

-

 

82

   

74

-

 

79

   

Trinidad

 

335

-

 

375

   

346

-

 

356

   

Other International

 

5

-

 

11

   

7

-

 

8

     

Total

 

1,257

-

 

1,348

   

1,331

-

 

1,353

 
 

Crude Oil Equivalent Volumes (MBoed)  

                     
   

United States

 

433.5

-

 

449.7

   

424.7

-

 

428.7

   

Canada

 

17.0

-

 

22.8

   

19.2

-

 

21.2

   

Trinidad

 

56.7

-

 

63.6

   

58.8

-

 

60.6

   

Other International

 

0.8

-

 

1.8

   

1.2

-

 

1.3

     

Total

 

508.0

-

 

537.9

   

503.9

-

 

511.8

 

Operating Costs

                     
 

Unit Costs ($/Boe)

                     
   

Lease and Well

$

6.20

-

$

6.40

 

$

6.02

-

$

6.07

   

Transportation Costs

$

4.50

-

$

4.70

 

$

4.55

-

$

4.61

   

Depreciation, Depletion and Amortization

$

19.40

-

$

19.80

 

$

19.52

-

$

19.63

 

Expenses ($MM)

                     
 

Exploration, Dry Hole and Impairment

$

140.0

-

$

190.0

 

$

500.0

-

$

550.0

 

General and Administrative

$

92.0

-

$

97.0

 

$

350.0

-

$

355.0

 

Gathering and Processing 

$

29.0

-

$

33.0

 

$

110.0

-

$

115.0

 

Capitalized Interest

$

12.0

-

$

15.0

 

$

46.0

-

$

50.0

 

Net Interest

$

50.0

-

$

54.0

 

$

233.0

-

$

237.0

 

Taxes Other Than Income (% of Wellhead Revenue)

 

5.9%

-

 

6.3%

   

5.8%

-

 

5.9%

 

Income Taxes

                     
 

Effective Rate 

 

35%

-

 

40%

   

35%

-

 

38%

 

Current Taxes ($MM)

$

105

-

$

120

 

$

345

-

$

365

 

Capital Expenditures ($MM) - FY 2013 (Excluding Acquisitions)

                 
 

Exploration and Development, Excluding Facilities

             

 Approximately 

 

$

6,000

 

Exploration and Development Facilities

             

 Approximately 

 

$

800

 

Gathering, Processing and Other

             

 Approximately 

 

$

400

 

Pricing - (Refer to Benchmark Commodity Pricing in text)

                     
 

Crude Oil and Condensate ($/Bbl)

                     
   

Differentials

                     
     

United States - (above) below WTI

$

(0.35)

-

$

1.15

 

$

(4.75)

-

$

(6.25)

     

Canada - (above) below WTI

$

12.00

-

$

16.00

 

$

9.00

-

$

10.00

     

Trinidad - (above) below WTI

$

10.00

-

$

14.00

 

$

7.00

-

$

8.00

 
 

Natural Gas Liquids

                     
   

Realizations as % of WTI

                     
     

United States

 

28%

-

 

32%

   

31%

-

 

33%

     

Canada

 

33%

-

 

37%

   

37%

-

 

39%

 
 

Natural Gas ($/Mcf)

                     
   

Differentials

                     
     

United States - (above) below NYMEX Henry Hub

$

0.36

-

$

0.46

 

$

0.35

-

$

0.39

     

Canada - (above) below NYMEX Henry Hub

$

0.40

-

$

0.50

 

$

0.60

-

$

0.64

 
   

Realizations

                     
     

Trinidad

$

2.75

-

$

3.25

 

$

3.46

-

$

3.60

     

Other International

$

4.50

-

$

5.00

 

$

6.00

-

$

6.14

 

Definitions

                     

$/Bbl 

 

U.S. Dollars per barrel

           

$/Boe

 

U.S. Dollars per barrel of oil equivalent

           

$/Mcf 

 

U.S. Dollars per thousand cubic feet

           

$MM

 

U.S. Dollars in millions

           

MBbld

 

Thousand barrels per day

           

MBoed

 

Thousand barrels of oil equivalent per day

           

MMcfd

 

Million cubic feet per day

           

NYMEX

 

New York Mercantile Exchange

           

WTI

 

West Texas Intermediate

           

 

 

 

SOURCE EOG Resources, Inc.

 

 

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