EOG Resources Reports Second Quarter 2012 Results and
EOG Resources Reports Second Quarter 2012 Results and Increases 2012 Crude Oil Production Growth Target to 37 Percent
FOR IMMEDIATE RELEASE: August 2, 2012
HOUSTON, Aug. 2, 2012 /PRNewswire/ --
•Reports Strong Year-Over-Year Growth in Earnings Per Share, Discretionary Cash Flow and Adjusted EBITDAX •Achieves 52 Percent Crude Oil and Condensate Production Increase and 49 Percent Increase in Total Liquids Production Over Second Quarter 2011 •Increases 2012 Total Company Crude Oil Production Growth Target to 37 Percent from 33 Percent and Full Year Total Company Total Liquids Growth Target to 35 Percent from 33 Percent •Raises 2012 Total Company Production Growth Target to 9 Percent from 7 Percent with Unchanged 2012 Capital Expenditure Budget •Realizes Premium Crude Oil Prices from Rail Offloading Facility at St. James, Louisiana •Attains New Marketing Opportunities for Eagle Ford Volumes Through Recently Completed Third-Party Crude Oil Pipeline and Natural Gas Processing Plant and Pipelines •Delivers Best Crude Oil Well to Date as Solid Execution of Eagle Ford Drilling Program Continues •Sustains Successful Bakken Drilling Program in Core, Antelope Extension and Stateline Areas •Closes on $1.1 Billion of Asset Sales through June 30, 2012; Targets $1.2 to $1.25 Billion of Sales for Full Year 2012 EOG Resources, Inc. (NYSE: EOG) (EOG) today reported second quarter 2012 net income of $395.8 million, or $1.47 per share. This compares to second quarter 2011 net income of $295.6 million, or $1.10 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 second quarter 2012 was $312.4 million, or $1.16 per share. Adjusted non-GAAP net income for the second quarter 2011 was $299.2 million, or $1.11 per share. The results for the second quarter 2012 included impairments of $1.5 million, net of tax ($0.01 per share) related to certain non-core North American assets, net gains on asset dispositions of $75.1 million, net of tax ($0.28 per share) and a previously disclosed non-cash net gain of $188.4 million ($120.7 million after tax, or $0.45 per share) on the mark-to-market of financial commodity contracts. During the quarter, the net cash inflow related to financial commodity contracts was $173.2 million ($110.9 million after tax, or $0.41 per share). (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income to GAAP net income.)
With 86 percent of North American wellhead revenues currently derived from crude oil, condensate and natural gas liquids, EOG delivered strong earnings per share growth of 64 percent for the first half of 2012 compared to the same period in 2011. Discretionary cash flow increased 29 percent and