U.S. Markets close in 5 hrs

EOG Resources Reports Fourth Quarter and Full Year 2018 Results and Announces 2019 Capital Program

HOUSTON, Feb. 26, 2019 /PRNewswire/ --

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fourth Quarter 2018 Results Webcast
Wednesday, February 27, 2019, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG website for one year.
http://investors.eogresources.com/Investors

About EOG
EOG Resources, Inc. (EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States, Trinidad, and China. To learn more visit www.eogresources.com.

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

Media and Investor Contact
Kimberly Ehmer  713-571-4676

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

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

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

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

 

EOG RESOURCES, INC.

Financial Report

(Unaudited; in millions, except per share data)














Three Months Ended


Twelve Months Ended


December 31,


December 31,


2018


2017


2018


2017













Operating Revenues and Other

$

4,574.5


$

3,340.4


$

17,275.4


$

11,208.3

Net Income 

$

892.8


$

2,430.5


$

3,419.0


$

2,582.6

Net Income Per Share 












        Basic

$

1.55


$

4.22


$

5.93


$

4.49

        Diluted

$

1.54


$

4.20


$

5.89


$

4.46

Average Number of Common Shares












        Basic


577.0



575.4



576.6



574.6

        Diluted


580.3



579.2



580.4



578.7

























Summary Income Statements

(Unaudited; in thousands, except per share data)














Three Months Ended


Twelve Months Ended


December 31,


December 31,


2018


2017


2018


2017

Operating Revenues and Other








        Crude Oil and Condensate

$

2,383,326


$

1,929,471


$

9,517,440


$

6,256,396

        Natural Gas Liquids


266,037



249,172



1,127,510



729,561

        Natural Gas


389,213



246,922



1,301,537



921,934

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


132,095



(45,032)



(165,640)



19,828

        Gathering, Processing and Marketing


1,331,105



1,008,385



5,230,355



3,298,087

        Gains (Losses) on Asset Dispositions, Net


79,904



(65,220)



174,562



(99,096)

        Other, Net


(7,144)



16,741



89,635



81,610

               Total


4,574,536



3,340,439



17,275,399



11,208,320

Operating Expenses












        Lease and Well


346,442



281,941



1,282,678



1,044,847

        Transportation Costs


196,095



191,717



746,876



740,352

        Gathering and Processing Costs


112,396



43,295



436,973



148,775

        Exploration Costs


33,862



22,941



148,999



145,342

        Dry Hole Costs


145



4,532



5,405



4,609

        Impairments 


186,087



153,442



347,021



479,240

        Marketing Costs


1,349,416



1,009,566



5,203,243



3,330,237

        Depreciation, Depletion and Amortization


919,963



881,745



3,435,408



3,409,387

        General and Administrative


116,904



117,005



426,969



434,467

        Taxes Other Than Income


190,086



158,343



772,481



544,662

               Total


3,451,396



2,864,527



12,806,053



10,281,918













Operating Income 


1,123,140



475,912



4,469,346



926,402













Other Income, Net


21,220



803



16,704



9,152













Income Before Interest Expense and Income Taxes


1,144,360



476,715



4,486,050



935,554













Interest Expense, Net


56,020



63,362



245,052



274,372













Income Before Income Taxes


1,088,340



413,353



4,240,998



661,182













Income Tax Provision (Benefit)


195,572



(2,017,115)



821,958



(1,921,397)













Net Income 

$

892,768


$

2,430,468


$

3,419,040


$

2,582,579













Dividends Declared per Common Share

$

0.2200


$

0.1675


$

0.8100


$

0.6700



EOG RESOURCES, INC.

Operating Highlights

(Unaudited)














Three Months Ended


Twelve Months Ended


December 31,


December 31,


2018


2017


2018


2017

Wellhead Volumes and Prices




Crude Oil and Condensate Volumes (MBbld) (A)




      United States


430.3



366.9



394.8



335.0

      Trinidad


0.8



1.1



0.8



0.9

      Other International (B)


4.5



0.1



4.3



0.8

            Total


435.6



368.1



399.9



336.7













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












      United States

$

59.37


$

56.95


$

65.16


$

50.91

      Trinidad


51.80



46.56



57.26



42.30

      Other International (B)


70.44



45.72



71.45



57.20

            Composite


59.47



56.97



65.21



50.91













Natural Gas Liquids Volumes (MBbld) (A)












      United States


122.8



100.6



116.1



88.4

      Other International (B)


-



-



-



-

            Total


122.8



100.6



116.1



88.4













Average Natural Gas Liquids Prices ($/Bbl) (C)












      United States

$

23.54


$

26.92


$

26.60


$

22.61

      Other International (B)


-



-



-



-

            Composite


23.54



26.92



26.60



22.61













Natural Gas Volumes (MMcfd) (A)












      United States


974



829



923



765

      Trinidad


230



299



266



313

      Other International (B)


32



32



30



25

            Total


1,236



1,160



1,219



1,103













Average Natural Gas Prices ($/Mcf) (C)












      United States

$

3.50


$

2.17


$

2.88


$

2.20

      Trinidad


3.03



2.52



2.94



2.38

      Other International (B)


4.02



4.23



4.08



3.89

            Composite


3.42

(D)


2.31



2.92

(D)


2.29













Crude Oil Equivalent Volumes (MBoed) (E)












      United States 


715.5



605.6



664.7



551.0

      Trinidad


39.0



51.0



45.1



53.0

      Other International (B)


10.0



5.4



9.4



4.9

            Total


764.5



662.0



719.2



608.9













Total MMBoe (E)


70.3



60.9



262.5



222.3


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

(B) Other International includes EOG's United Kingdom, China and Canada operations.  The United Kingdom operations were sold in the fourth quarter of 2018.

(C) Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Consolidated Financial Statements in EOG's Annual Report on Form 10-K for the year ended December 31, 2018).

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

(E) Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, NGLs and natural gas.  Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas.  MMBoe is calculated by multiplying the MBoed amount by the number of days in the period and then dividing that amount by one thousand.

 

EOG RESOURCES, INC.

Summary Balance Sheets

(Unaudited; in thousands, except share data)








December 31,


December 31,


2018


2017

ASSETS

Current Assets






     Cash and Cash Equivalents

$

1,555,634


$

834,228

     Accounts Receivable, Net


1,915,215



1,597,494

     Inventories


859,359



483,865

     Assets from Price Risk Management Activities


23,806



7,699

     Income Taxes Receivable


427,909



113,357

     Other


275,467



242,465

            Total


5,057,390



3,279,108







Property, Plant and Equipment






     Oil and Gas Properties (Successful Efforts Method)


57,330,016



52,555,741

     Other Property, Plant and Equipment


4,220,665



3,960,759

            Total Property, Plant and Equipment


61,550,681



56,516,500

     Less:  Accumulated Depreciation, Depletion and Amortization


(33,475,162)



(30,851,463)

            Total Property, Plant and Equipment, Net


28,075,519



25,665,037

Deferred Income Taxes


777



17,506

Other Assets


800,788



871,427

Total Assets

$

33,934,474


$

29,833,078







LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities






     Accounts Payable

$

2,239,850


$

1,847,131

     Accrued Taxes Payable


214,726



148,874

     Dividends Payable


126,971



96,410

     Liabilities from Price Risk Management Activities


-



50,429

     Current Portion of Long-Term Debt


913,093



356,235

     Other


233,724



226,463

            Total


3,728,364



2,725,542













Long-Term Debt


5,170,169



6,030,836

Other Liabilities


1,258,355



1,275,213

Deferred Income Taxes


4,413,398



3,518,214

Commitments and Contingencies












Stockholders' Equity






     Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 
        580,408,117 Shares and 578,827,768 Shares Issued at December 31, 2018
        and 2017, respectively.


205,804



205,788

     Additional Paid in Capital


5,658,794



5,536,547

     Accumulated Other Comprehensive Loss


(1,358)



(19,297)

     Retained Earnings


13,543,130



10,593,533

     Common Stock Held in Treasury, 385,042 Shares and 350,961 Shares at
        December 31, 2018 and 2017, respectively.


(42,182)



(33,298)

            Total Stockholders' Equity


19,364,188



16,283,273

Total Liabilities and Stockholders' Equity

$

33,934,474


$

29,833,078

 

EOG RESOURCES, INC.

Summary Statements of Cash Flows

(Unaudited; in thousands)








Twelve Months Ended


December 31,


2018


2017

Cash Flows from Operating Activities






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






     Net Income

$

3,419,040


$

2,582,579

     Items Not Requiring (Providing) Cash






            Depreciation, Depletion and Amortization


3,435,408



3,409,387

            Impairments 


347,021



479,240

            Stock-Based Compensation Expenses


155,337



133,849

            Deferred Income Taxes


894,156



(1,473,872)

            (Gains) Losses on Asset Dispositions, Net


(174,562)



99,096

            Other, Net


7,066



6,546

     Dry Hole Costs


5,405



4,609

     Mark-to-Market Commodity Derivative Contracts






            Total (Gains) Losses


165,640



(19,828)

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


(258,906)



7,438

     Other, Net


3,108



1,204

     Changes in Components of Working Capital and Other Assets and Liabilities






            Accounts Receivable


(368,180)



(392,131)

            Inventories


(395,408)



(174,548)

            Accounts Payable


439,347



324,192

            Accrued Taxes Payable


(92,461)



(63,937)

            Other Assets


(125,435)



(658,609)

            Other Liabilities


10,949



(89,871)

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


301,083



89,992

Net Cash Provided by Operating Activities


7,768,608



4,265,336







Investing Cash Flows






     Additions to Oil and Gas Properties


(5,839,294)



(3,950,918)

     Additions to Other Property, Plant and Equipment


(237,181)



(173,324)

     Proceeds from Sales of Assets


227,446



226,768

     Other Investing Activities


(19,993)



-

     Changes in Components of Working Capital Associated with Investing Activities


(301,140)



(89,935)

Net Cash Used in Investing Activities


(6,170,162)



(3,987,409)







Financing Cash Flows






     Long-Term Debt Repayments


(350,000)



(600,000)

     Dividends Paid


(438,045)



(386,531)

     Treasury Stock Purchased


(63,456)



(63,408)

     Proceeds from Stock Options Exercised and Employee Stock Purchase Plan 


20,560



20,840

     Repayment of Capital Lease Obligation


(8,219)



(6,555)

     Changes in Components of Working Capital Associated with Financing Activities


57



(57)

Net Cash Used in Financing Activities


(839,103)



(1,035,711)







Effect of Exchange Rate Changes on Cash


(37,937)



(7,883)







Increase (Decrease) in Cash and Cash Equivalents


721,406



(765,667)

Cash and Cash Equivalents at Beginning of Period


834,228



1,599,895

Cash and Cash Equivalents at End of Period

$

1,555,634


$

834,228

 

EOG RESOURCES, INC.

Fourth Quarter 2018 Well Results by Play

(Unaudited)
















Wells Online




Initial Gross 30-Day Average Production Rate


Gross


Net


Lateral
Length
(ft)


Crude Oil and
Condensate
(Bbld) (A)


Natural Gas
Liquids
(Bbld) (A)


 Natural Gas
(MMcfd) (A)


Crude Oil
Equivalent
(Boed) (B)

Delaware Basin














Wolfcamp

42


37


7,000


1,950


600


3.7


3,150

Bone Spring

13


11


5,300


1,550


300


1.9


2,150

Leonard

2


1


4,600


1,200


550


3.7


2,350















South Texas Eagle Ford

82


78


7,300


1,300


150


0.8


1,600















South Texas Austin Chalk

6


5


5,500


2,650


550


2.6


3,650















Powder River Basin














Turner

4


3


9,700


800


200


2.4


1,400

Mowry

2


2


9,200


700


450


5.5


2,050















DJ Basin Codell

20


10


9,600


700


50


0.3


800















Williston Basin Bakken/Three Forks

7


5


10,100


550


25


0.1


600















Anadarko Basin Woodford Oil Window

5


4


9,200


600


75


0.4


750


(A)  Barrels per day or million cubic feet per day, as applicable.

(B)  Barrels of oil equivalent per day; includes crude oil and condensate, natural gas liquids and natural gas.  Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or natural gas liquids to 6.0 thousand cubic feet of natural gas.

 

null

EOG RESOURCES, INC.

Quantitative Reconciliation of Adjusted Net Income (Non-GAAP)

To Net Income (GAAP)

(Unaudited; in thousands, except per share data)

































The following chart adjusts the three-month and twelve-month periods ended December 31, 2018 and 2017 reported Net Income (GAAP) to reflect actual net cash received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions in 2018 and 2017, to add back impairment charges related to certain of EOG's assets in 2018 and 2017, to add back an early lease termination payment as the result of a legal settlement in 2017, to add back the transaction costs for the formation of a joint venture in 2017, to add back certain joint interest billings deemed uncollectible in 2017 and to eliminate certain adjustments in 2018 and 2017 related to the 2017 U.S. tax reform.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items.  EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.


















Three Months Ended 


Three Months Ended 


December 31, 2018


December 31, 2017




















Income




Diluted




Income




Diluted


Before


Tax


After


Earnings


Before


Tax


After


Earnings


Tax


Impact


Tax


per Share


Tax


Impact


Tax


per Share

Reported Net Income (GAAP)

$          1,088,340


$        (195,572)


$            892,768


$          1.54


$          413,353


$       2,017,115


$          2,430,468


$          4.20

Adjustments:
















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

(132,095)


29,096


(102,999)


(0.18)


45,032


(16,142)


28,890


0.05

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

(78,678)


17,330


(61,348)


(0.11)


2,708


(971)


1,737


-

Add:  Net (Gains) Losses on Asset Dispositions

(79,904)


13,625


(66,279)


(0.11)


65,220


(23,315)


41,905


0.07

Add:  Impairments

131,795


(29,031)


102,764


0.18


100,304


(35,954)


64,350


0.11

Add:  Joint Interest Billings Deemed Uncollectible

-


-


-


-


4,528


(1,623)


2,905