EOG Resources Reports Third Quarter 2023 Results, Increases Annual Cash Return Commitment to Shareholders and Raises Regular Dividend 10%

HOUSTON, Nov. 2, 2023 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported third quarter 2023 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors.

Key Financial Results




In millions of USD, except per-share, per-Boe and ratio data




GAAP

3Q 2023 

2Q 2023 

1Q 2023

4Q 2022

3Q 2022


Total Revenue

6,212

5,573

6,044

6,719

7,593


Net Income

2,030

1,553

2,023

2,277

2,854


Net Income Per Share

3.48

2.66

3.45

3.87

4.86


Net Cash Provided by Operating Activities

2,704

2,277

3,255

3,444

4,773


Total Expenditures

1,803

1,664

1,717

1,535

1,410


Current and Long-Term Debt

3,806

3,814

3,820

5,078

5,084


Cash and Cash Equivalents

5,326

4,764

5,018

5,972

5,272


Debt-to-Total Capitalization

12.1 %

12.7 %

13.1 %

17.0 %

17.6 %


Cash Operating Costs ($/Boe)

10.19

10.03

10.59

10.82

10.89


General and Administrative Costs ($/Boe)

1.75

1.61

1.71

1.87

1.92






Non - GAAP




Adjusted Net Income

2,007

1,457

1,578

1,941

2,179


Adjusted Net Income Per Share

3.44

2.49

2.69

3.30

3.71


CFO before Changes in Working Capital

3,038

2,563

2,559

3,091

3,432


Capital Expenditures

1,519

1,521

1,489

1,361

1,166


Free Cash Flow

1,519

1,042

1,070

1,730

2,266


Net Debt

(1,520)

(950)

(1,198)

(894)

(188)


Net Debt-to-Total Capitalization

(5.8 %)

(3.8 %)

(4.9 %)

(3.7 %)

(0.8 %)


Cash Operating Costs ($/Boe)1

10.19

10.03

10.59

10.82

10.70


General and Administrative Costs ($/Boe)1

1.75

1.61

1.71

1.87

1.73


 

Third Quarter Highlights

  • Increased 2024+ cash return commitment to minimum 70 percent of annual free cash flow

  • Increased regular quarterly dividend by 10 percent to $0.91 per share, a $3.64 per share indicated annual rate

  • Declared special dividend of $1.50 per share

  • Repurchased $61 million of shares during the third quarter

  • Earned adjusted net income of $2.0 billion, or $3.44 per share

  • Generated $1.5 billion of free cash flow

  • Volumes, capital expenditures, and per-unit operating costs better than guidance midpoints

  • Updated full-year guidance to reflect higher volumes and lower per-unit operating costs

 

Volumes and Capital Expenditures

Wellhead Volumes


3Q 2023






3Q 2023

Guidance
Midpoint

2Q 2023

1Q 2023

4Q 2022

3Q 2022


Crude Oil and Condensate (MBod)

483.3

472.9

476.6

457.7

465.6

465.1


Natural Gas Liquids (MBbld)

231.1

223.0

215.7

212.2

189.0

209.3


Natural Gas (MMcfd)

1,704

1,660

1,668

1,639

1,527

1,469


Total Crude Oil Equivalent (MBoed)

998.5

972.6

970.3

943.0

909.1

919.2






Capital Expenditures ($MM)

1,519

1,660

1,521

1,489

1,361

1,166


 

From Ezra Yacob, Chairman and Chief Executive Officer
"EOG delivered strong third quarter results due to our employees' outstanding execution in our foundational Delaware Basin and Eagle Ford assets as well as continued progress across our emerging plays. Production volumes, capital expenditures, and per-unit operating costs were each better than expected. As a result, we have updated our full-year guidance to reflect higher volumes and lower per-unit operating costs.

"Substantial cash flow generation this year supported both our industry-leading regular dividend of $1.9 billion and an additional cash return of more than $2.1 billion through special dividends and share repurchases. EOG's total cash return to shareholders of $4.1 billion represents approximately 75% of our estimated full-year 2023 free cash flow.

"Going forward we are committing more cash to our shareholders. The increase in EOG's cash return commitment to a minimum 70% of annual free cash flow reflects EOG's financial strength and is consistent with our free cash flow priorities, which remain focused on creating long-term shareholder value.

"The 10% increase in our regular dividend demonstrates our confidence in EOG's future and our ability to support the higher dividend throughout commodity price cycles. Strong results quarter after quarter reflect continued improvement across EOG's low-cost, multi-basin portfolio, and our commitment to a sustainable, growing dividend is further supported by an industry-leading balance sheet. EOG is in a better position than ever to deliver value for our shareholders and play a significant role in the long-term future of energy."

 

Third Quarter 2023 Financial Performance

Prices

  • Crude oil, NGL, and natural gas prices increased in 3Q compared with 2Q

Volumes

  • Total 3Q oil production of 483,300 Bopd was above the high end of the guidance range and up 1% from 2Q

  • NGL production was above the high end of the guidance range and up 7% from 2Q

  • Natural gas production was at the high end of the guidance range and up 2% from 2Q

  • Total company equivalent production increased 3% from 2Q

Per-Unit Costs

  • LOE and G&A costs increased in 3Q compared with 2Q, while transportation and DD&A expenses decreased. Gathering and processing costs remained flat.

Hedges

  • Mark-to-market hedge gains decreased, lowering GAAP earnings per share in 3Q compared with 2Q

  • Cash received to settle hedges increased adjusted non-GAAP earnings per share

Free Cash Flow

  • Cash flow from operations before changes in working capital was $3.0 billion

  • EOG incurred $1.5 billion of capital expenditures

  • This resulted in $1.5 billion of free cash flow

Cash Return and Working Capital

  • Paid $494 million in regular dividends

  • Repurchased $61 million of stock

  • Changes in working capital and other items accounted for approximately $400 million of the decrease in cash

 

Third Quarter 2023 Operating Performance

Lease and Well

  • QoQ: Increased primarily due to workovers, fuel-related expenses, and water handling costs

  • Guidance Midpoint: Lower primarily due to employee-related costs and fuel-related expenses

Transportation

  • QoQ: Decreased primarily due to lower natural gas transportation expenses

  • Guidance Midpoint: Lower primarily due to oil transportation expenses

Gathering and Processing

  • QoQ: Flat

  • Guidance Midpoint: Lower primarily due to fuel costs

General and Administrative

  • QoQ: Increased primarily due to employee-related expenses

  • Guidance Midpoint: Lower primarily due to employee-related expenses

Depreciation, Depletion and Amortization

  • QoQ: Generally flat

  • Guidance Midpoint: Lower primarily due to the addition of low-cost reserves

 

Regular Dividend and Additional Cash Return

Regular Dividend Increased 10% to $3.64 per Share Indicated Annual Rate
The Board of Directors today declared a dividend of $0.91 per share on EOG's common stock. The dividend will be payable January 31, 2024, to stockholders of record as of January 17, 2024. The new dividend represents an indicated annual rate of $3.64 per share, a 10% increase from the previous level. EOG has never suspended or reduced its regular dividend.

Declared $1.50 per Share Special Dividend
The Board of Directors also today declared a special dividend of $1.50 per share on EOG's common stock. The special dividend will be payable December 29, 2023, to stockholders of record as of December 15, 2023.  EOG has now committed to return $1.5 billion to shareholders in 2023 through special dividends.

Third Quarter Share Repurchases
During the third quarter, the company repurchased 0.5 million shares for $61 million under its share repurchase authorization, at an average purchase price of $123 per share.

Year-to-date, the company repurchased 6.2 million shares for $671 million under its share repurchase authorization, at an average purchase price of $108 per share. EOG has $4.3 billion remaining on its current repurchase authorization.

 

Third Quarter 2023 Results vs Guidance


(Unaudited)


See "Endnotes" below for related discussion and definitions.






3Q 2023








3Q 2023

Guidance
Midpoint

Variance

2Q 2023

1Q 2023

4Q 2022

3Q 2022


Crude Oil and Condensate Volumes (MBod)




United States

482.8

472.5

10.3

476.0

457.1

465.1

464.6


Trinidad

0.5

0.4

0.1

0.6

0.6

0.5

0.5


Other International

0.0

0.0

0.0

0.0

0.0

0.0

0.0


Total

483.3

472.9

10.4

476.6

457.7

465.6

465.1


Natural Gas Liquids Volumes (MBbld)




Total

231.1

223.0

8.1

215.7

212.2

189.0

209.3


Natural Gas Volumes (MMcfd)




United States

1,562

1,530

32

1,513

1,475

1,378

1,306


Trinidad

142

130

12

155

164

149

163


Other International

0

0

0

0

0

0

0


Total

1,704

1,660

44

1,668

1,639

1,527

1,469






Total Crude Oil Equivalent Volumes (MBoed)

998.5

972.6

25.9

970.3

943.0

909.1

919.2


Total MMBoe

91.9

89.5

2.4

88.3

84.9

83.6

84.6






Benchmark Price




Oil (WTI) ($/Bbl)

82.18



73.75

76.11

82.63

91.64


Natural Gas (HH) ($/Mcf)

2.55



2.09

3.43

6.27

8.18





Crude Oil and Condensate - above (below) WTI3 ($/Bbl)




United States

1.43

1.00

0.43

1.23

1.16

3.05

4.41


Trinidad

(10.80)

(10.00)

(0.80)

(8.87)

(7.13)

(7.42)

(6.66)


Natural Gas Liquids - Realizations as % of WTI




Total

28.7 %

28.0 %

0.7 %

28.3 %

33.7 %

34.6 %

39.3 %


Natural Gas - above (below) NYMEX Henry Hub4 ($/Mcf)




United States

0.04

(0.05)

0.09

(0.02)

0.04

(0.15)

1.17


Natural Gas Realizations5 ($/Mcf)




Trinidad

3.41

3.35

0.06

3.45

3.87

3.97

7.45






Total Expenditures (GAAP) ($MM)

1,803



1,664

1,717

1,535

1,410


Capital Expenditures (non-GAAP) ($MM)

1,519

1,660

(141)

1,521

1,489

1,361

1,166






Operating Unit Costs ($/Boe)




Lease and Well

4.02

4.20

(0.18)

3.94

4.23

4.23

3.96


Transportation Costs

2.61

2.70

(0.09)

2.67

2.78

2.83

3.04


Gathering and Processing

1.81

1.90

(0.09)

1.81

1.87

1.89

1.97


General and Administrative (GAAP)

1.75

1.90

(0.15)

1.61

1.71

1.87

1.92


General and Administrative (non-GAAP)1

1.75

1.90

(0.15)

1.61

1.71

1.87

1.73


Cash Operating Costs (GAAP)

10.19

10.70

(0.51)

10.03

10.59

10.82

10.89


Cash Operating Costs (non-GAAP)

10.19

10.70

(0.51)

10.03

10.59

10.82

10.70


Depreciation, Depletion and Amortization

9.78

9.90

(0.12)

9.81

9.40

10.50

10.71






Expenses ($MM)




Exploration and Dry Hole

43

65

(22)

47

51

48

53


Impairment (GAAP)

54



35

34

142

94


Impairment (excluding certain impairments (non-GAAP))6

31

100

(69)

35

34

111

48


Capitalized Interest

8

10

(2)

8

8

11

11


Net Interest

36

34

2

35

42

42

41






TOTI (% of Wellhead Revenue) (GAAP)

7.4 %

8.5 %

(1.1 %)

7.8 %

7.8 %

7.8 %

5.5 %


TOTI (% of Wellhead Revenue) (non-GAAP)1

7.4 %

8.5 %

(1.1 %)

7.8 %

7.8 %

7.8 %

7.4 %


Income Taxes




Effective Rate

21.1 %

21.5 %

(0.4 %)

21.9 %

22.0 %

20.4 %

22.1 %


Current Tax (Benefit) / Expense ($MM)

486

345

141

241

338

409

481


 

Fourth Quarter and Full-Year 2023 Guidance7


(Unaudited)









See "Endnotes" below for related discussion and definitions.










4Q 2023

Guidance Range

4Q 2023

Midpoint

FY 2023

Guidance Range

FY 2023

Midpoint

2022

Actual

2021

Actual

2020

Actual


Crude Oil and Condensate Volumes (MBod)













United States

479.1

-

487.1

483.1

473.5

-

476.5

475.0

460.7

443.4

408.1


Trinidad

0.2

-

0.6

0.4

0.3

-

0.5

0.4

0.6

1.5

1.0


Other International

0.0

-

0.0

0.0

0.0

-

0.0

0.0

0.0

0.1

0.1


Total

479.3

-

487.7

483.5

473.8

-

477.0

475.4

461.3

445.0

409.2


Natural Gas Liquids Volumes (MBbld)













Total

230.0

-

238.0

234.0

222.3

-

224.3

223.3

197.7

144.5

136.0


Natural Gas Volumes (MMcfd)













United States

1,590

-

1,640

1,615

1,515

-

1,575

1,545

1,315

1,210

1,040


Trinidad

155

-

185

170

140

-

170

155

180

217

180


Other International

0

-

0

0

0

-

0

0

0

9

32


Total

1,745

-

1,825

1,785

1,655

-

1,745

1,700

1,495

1,436

1,252


Crude Oil Equivalent Volumes (MBoed)













United States

974.1

-

998.4

986.3

948.3

-

963.3

955.8

877.5

789.6

717.5


Trinidad

26.0

-

31.4

28.7

23.6

-

28.8

26.2

30.7

37.7

30.9


Other International

0.0

-

0.0

0.0

0.0

-

0.0

0.0

0.0

1.6

5.4


Total

1,000.1

-

1,029.8

1,015.0

971.9

-

992.1

982.0

908.2

828.9

753.8















Benchmark Price













Oil (WTI) ($/Bbl)









94.23

67.96

39.40


Natural Gas (HH) ($/Mcf)









6.64

3.85

2.08















Crude Oil and Condensate - above (below) WTI3 ($/Bbl)













United States

1.25

-

2.75

2.00

1.33

-

1.73

1.53

2.99

0.58

(0.75)


Trinidad

(12.00)

-

(10.50)

(11.25)

(10.50)

-

(9.30)

(9.90)

(8.07)

(11.70)

(9.20)


Natural Gas Liquids - Realizations as % of WTI













Total

22.0 %

-

32.0 %

27.0 %

28.0 %

-

31.0 %

29.5 %

39.0 %

50.5 %

34.0 %


Natural Gas - above (below) NYMEX Henry Hub4 ($/Mcf)













United States

(0.05)

-

0.35

0.15

0.00

-

0.10

0.05

0.63

1.03

(0.47)


Natural Gas Realizations5 ($/Mcf)













Trinidad

3.20

-

3.75

3.48

3.49

-

3.63

3.56

4.43

3.40

2.57















Total Expenditures (GAAP) ($MM)









5,610

4,255

4,113


Capital Expenditures8 (non-GAAP) ($MM)

1,400

-

1,600

1,500

5,900

-

6,100

6,000

4,607

3,755

3,344















Operating Unit Costs ($/Boe)













Lease and Well

3.90

-

4.50

4.20

4.02

-

4.18

4.10

4.02

3.75

3.85


Transportation Costs

2.50

-

2.80

2.65

2.64

-

2.72

2.68

2.91

2.85

2.66


Gathering and Processing

1.75

-

2.05

1.90

1.81

-

1.89

1.85

1.87

1.85

1.66


General and Administrative (GAAP)

1.75

-

2.05

1.90

1.70

-

1.78

1.74

1.72

1.69

1.75


General and Administrative (non-GAAP)1









1.67

1.69

1.75


Cash Operating Costs (GAAP)

9.90

-

11.40

10.65

10.17

-

10.57

10.37

10.52

10.14

9.92


Cash Operating Costs (non-GAAP)









10.47

10.14

9.92


Depreciation, Depletion and Amortization

9.50

-

10.50

10.00

9.62

-

9.88

9.75

10.69

12.07

12.32















Expenses ($MM)













Exploration and Dry Hole

25

-

65

45

165

-

205

185

204

225

159


Impairment (GAAP)









382

376

2,100


Impairment (excluding certain impairments (non-GAAP))6

65

-

135

100

165

-

235

200

269

361

232


Capitalized Interest

8

-

12

10

32

-

36

34

36

33

31


Net Interest

32

-

36

34

145

-

149

147

179

178

205















TOTI (% of Wellhead Revenue) (GAAP)

6.5 %

-

8.5 %

7.5 %

7.0 %

-

9.0 %

8.0 %

7.0 %

6.8 %

6.6 %


TOTI (% of Wellhead Revenue) (non-GAAP)1









7.5 %

6.8 %

6.6 %


Income Taxes













Effective Rate

19.0 %

-

24.0 %

21.5 %

19.0 %

-

24.0 %

21.5 %

21.7 %

21.4 %

18.2 %


Current Tax (Benefit) / Expense ($MM)

280

-

380

330

1,345

-

1,445

1,395

2,208

1,393

(61)


 

Third Quarter 2023 Results Webcast
Friday, November 3, 2023, 9:00 a.m. Central time (10:00 a.m. Eastern time) Webcast will be available on EOG's website for one year. http://investors.eogresources.com/Investors

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

Investor Contacts
Pearce Hammond 713-571-4684
Neel Panchal 713-571-4884
Shelby O'Connor 713-571-4560

Media Contact
Kimberly Ehmer 713-571-4676

 

Endnotes





1)

Third quarter 2022 TOTI (% of Wellhead Revenue) (non-GAAP) and General and Administrative Costs (non-GAAP) exclude a state severance tax refund and related consulting fees, respectively, as reflected in the accompanying Adjusted Net Income (Loss) reconciliation schedule.


2)

Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions (for GAAP earnings per share only), other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.


3)

EOG bases United States 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.


4)

EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the NYMEX Last Day Settle price for each of the applicable months.


5)

The third quarter and full-year 2022 realized natural gas price for Trinidad includes a one-time pricing adjustment of $3.37/Mcf and $0.76/Mcf, respectively, for prior-period production following a contract amendment with the National Gas Company of Trinidad and Tobago Limited (NGC).


6)

In general, EOG excludes impairments which are (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets). EOG believes excluding these impairments from total impairment costs is appropriate and provides useful information to investors, as such impairments were caused by factors outside of EOG's control (versus, for example, impairments that are due to EOG's proved oil and gas properties not being as productive as it originally estimated).


7)

The forecast items for the fourth quarter and full year 2023 set forth above for EOG are based on currently available information and expectations as of the date of this 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 this press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.


8)

The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs, Non-Cash Exchanges and Transactions and exploration costs incurred as operating expenses.


 

Glossary



Acq

Acquisitions


ATROR

After-tax rate of return


Bbl

Barrel


Bn

Billion


Boe

Barrels of oil equivalent


Bopd

Barrels of oil per day


CAGR

Compound annual growth rate


Capex

Capital expenditures


CFO

Cash flow provided by operating activities before changes in working capital


CO2e

Carbon dioxide equivalent


DD&A

Depreciation, Depletion and Amortization


Disc

Discoveries


Divest

Divestitures


EPS

Earnings per share


Ext

Extensions


G&A

General and administrative expense


G&P

Gathering and processing expense


GHG

Greenhouse gas


HH

Henry Hub


LOE

Lease operating expense, or lease and well expense


MBbld

Thousand barrels of liquids per day


MBod

Thousand barrels of oil per day


MBoe

Thousand barrels of oil equivalent


MBoed

Thousand barrels of oil equivalent per day


Mcf

Thousand cubic feet of natural gas


MMBoe

Million barrels of oil equivalent


MMcfd

Million cubic feet of natural gas per day


NGLs

Natural gas liquids


NYMEX

U.S. New York Mercantile Exchange


OTP

Other than price


QoQ

Quarter over quarter


TOTI

Taxes other than income


Trans

Transportation expense


USD

United States dollar


WTI

West Texas Intermediate


YoY

Year over year


$MM

Million United States dollars


$/Bbl

U.S. Dollars per barrel


$/Boe

U.S. Dollars per barrel of oil equivalent


$/Mcf

U.S. Dollars per thousand cubic feet


 

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, goals, returns and rates of return, 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," "ambition," "initiative," "goal," "may," "will," "focused on," "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 financial or operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets    with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, 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 such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. 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 and cash flow from operations before changes in working capital, and certain related estimates regarding future performance, results and financial position. Because we provide these measures on a forward-looking basis, we cannot reliably  or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures. Management believes these forward-looking, non-GAAP measures may be a useful   tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry. 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 (NGLs), 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 (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;

  • the success of EOG's cost-mitigation initiatives and actions in offsetting the impact of inflationary pressures on EOG's operating costs and capital expenditures;

  • the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas;

  • security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;

  • the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, and export facilities;

  • the availability, cost, terms and timing of issuance or execution of 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 climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax and emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial derivatives and hedging activities; and laws and regulations with respect to the import and  export of crude oil, natural gas and related commodities;

  • the impact of climate change-related policies and initiatives at the corporate and/or investor community levels and other potential developments related to climate change, such as (but not limited to) changes in consumer and industrial/commercial behavior, preferences and attitudes with respect to the generation and consumption of energy; increased availability of, and increased consumer and industrial/commercial demand for, competing energy sources (including alternative energy sources); technological advances with respect to the generation, transmission, storage and consumption of energy; alternative fuel requirements; energy conservation measures and emissions-related legislation; decreased demand for, and availability of, services and facilities related to the exploration for, and production of, crude oil, NGLs and natural gas; and negative perceptions of  the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, crude oil, NGLs and natural gas;

  • continuing political and social concerns relating to climate change and the greater potential for shareholder activism, governmental inquiries and enforcement actions and litigation and the resulting expenses and potential disruption to EOG's day-to-day operations;

  • the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other ESG-related initiatives and achieve its related targets and initiatives;

  • EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to such properties;

  • the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations;

  • competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties;

  • the availability and cost of, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel 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, transportation, and export 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;

  • the duration and economic and financial impact of epidemics, pandemics or other public health issues;

  • 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 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; and

  • the other factors described under ITEM 1A, Risk Factors of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 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, 2022, 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 schedules and  definitions for non-GAAP financial measures can be found on the EOG website at www.eogresources.com.

 

Income Statements


In millions of USD, except share data (in millions) and per share data (Unaudited)









2022


2023



1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD


Operating Revenues and Other













Crude Oil and Condensate

3,889

4,699

4,109

3,670

16,367


3,182

3,252

3,717


10,151


Natural Gas Liquids

681

777

693

497

2,648


490

409

501


1,400


Natural Gas

716

1,000

1,235

830

3,781


517

334

417


1,268


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

(2,820)

(1,377)

(18)

233

(3,982)


376

101

43


520


Gathering, Processing and Marketing

1,469

2,169

1,561

1,497

6,696


1,390

1,465

1,478


4,333


Gains (Losses) on Asset Dispositions, Net

25

97

(21)

(27)

74


69

(9)

35


95


Other, Net

23

42

34

19

118


20

21

21


62


Total

3,983

7,407

7,593

6,719

25,702


6,044

5,573

6,212


17,829















Operating Expenses













Lease and Well

318

324

335

354

1,331


359

348

369


1,076


Transportation Costs

228

244

257

237

966


236

236

240


712


Gathering and Processing Costs

144

152

167

158

621


159

160

166


485


Exploration Costs

45

35

35

44

159


50

47

43


140


Dry Hole Costs

3

20

18

4

45


1


1


Impairments

55

91

94

142

382


34

35

54


123


Marketing Costs

1,283

2,127

1,621

1,504

6,535


1,361

1,456

1,383


4,200


Depreciation, Depletion and Amortization

847

911

906

878

3,542


798

866

898


2,562


General and Administrative

124

128

162

156

570


145

142

161


448


Taxes Other Than Income

390

472

334

389

1,585


329

313

341


983


Total

3,437

4,504

3,929

3,866

15,736


3,472

3,603

3,655


10,730















Operating Income

546

2,903

3,664

2,853

9,966


2,572

1,970

2,557


7,099


Other Income (Expense), Net

(1)

27

40

48

114


65

51

52


168


Income Before Interest Expense and Income Taxes

545

2,930

3,704

2,901

10,080


2,637

2,021

2,609


7,267


Interest Expense, Net

48

48

41

42

179


42

35

36


113


Income Before Income Taxes

497

2,882

3,663

2,859

9,901


2,595

1,986

2,573


7,154


Income Tax Provision

107

644

809

582

2,142


572

433

543


1,548


Net Income

390

2,238

2,854

2,277

7,759


2,023

1,553

2,030


5,606















Dividends Declared per Common Share

1.7500

2.5500

2.2500

2.3250

8.8750


1.8250

0.8250

0.8250


3.4750


Net Income Per Share













Basic

0.67

3.84

4.90

3.90

13.31


3.46

2.68

3.51


9.65


Diluted

0.67

3.81

4.86

3.87

13.22


3.45

2.66

3.48


9.60


Average Number of Common Shares













Basic

582

583

583

584

583


584

580

579


581


Diluted

586

588

587

588

587


587

584

583


584


 

Wellhead Volumes and Prices


(Unaudited)









2022


2023



1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD


Crude Oil and Condensate Volumes (MBbld) (A)













United States

449.4

463.5

464.6

465.1

460.7


457.1

476.0

482.8


472.0


Trinidad

0.7

0.6

0.5

0.5

0.6


0.6

0.6

0.5


0.6


Total

450.1

464.1

465.1

465.6

461.3


457.7

476.6

483.3


472.6















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













United States

$   96.02

$ 111.26

$   96.05

$   85.68

$   97.22


$   77.27

$   74.98

$   83.61


$   78.69


Trinidad

83.82

98.29

84.98

75.21

86.16


68.98

64.88

71.38


68.37


Composite

96.00

111.25

96.04

85.67

97.21


77.26

74.97

83.60


78.67















Natural Gas Liquids Volumes (MBbld) (A)













United States

190.3

201.9

209.3

189.0

197.7


212.2

215.7

231.1


219.7


Total

190.3

201.9

209.3

189.0

197.7


212.2

215.7

231.1


219.7















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













United States

$   39.77

$   42.28

$   36.02

$   28.55

$   36.70


$   25.67

$   20.85

$   23.56


$   23.35


Composite

39.77

42.28

36.02

28.55

36.70


25.67

20.85

23.56


23.35















Natural Gas Volumes (MMcfd) (A)













United States

1,249

1,324

1,306

1,378

1,315


1,475

1,513

1,562


1,517


Trinidad

209

204

163

149

180


164

155

142


154


Total

1,458

1,528

1,469

1,527

1,495


1,639

1,668

1,704


1,671















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













United States

$     5.81

$     7.77

$     9.35

$     6.12

$     7.27


$     3.47

$     2.07

$     2.59


$     2.70


Trinidad (D)

3.36

3.42

7.45

3.97

4.43


3.87

3.45

3.41


3.59


Composite

5.46

7.19

9.14

5.91

6.93


3.51

2.20

2.66


2.78















Crude Oil Equivalent Volumes (MBoed) (C)













United States

847.8

886.1

891.6

883.8

877.5


915.0

943.8

974.2


944.6


Trinidad

35.5

34.6

27.6

25.3

30.7


28.0

26.5

24.3


26.2


Total

883.3

920.7

919.2

909.1

908.2


943.0

970.3

998.5


970.8















Total MMBoe (C)

79.5

83.8

84.6

83.6

331.5


84.9

88.3

91.9


265.0















(A)

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


(B)

Dollars per barrel or per thousand cubic feet, as applicable.  Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023).


(C)

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.


(D)

Includes positive revenue adjustment of $3.37 per Mcf and $0.76 per Mcf ($0.37 per Mcf and $0.09 per Mcf of EOG's composite wellhead natural gas price) for the three months ended September 30, 2022 and the twelve months ended December 31, 2022, respectively, related to a price adjustment per a provision of the natural gas sales contract with the National Gas Company of Trinidad and Tobago Limited and its subsidiary amended in July 2022 for natural gas sales during the period from September 2020 through June 2022.


 

Balance Sheets


In millions of USD (Unaudited)





2022


2023



MAR

JUN

SEP

DEC


MAR

JUN

SEP

DEC


Current Assets











Cash and Cash Equivalents

4,009

3,073

5,272

5,972


5,018

4,764

5,326



Accounts Receivable, Net

3,213

3,735

3,343

2,774


2,455

2,263

2,927



Inventories

586

739

872

1,058


1,131

1,355

1,379



Assets from Price Risk Management Activities

1




Income Taxes Receivable

93

97


1



Other

671

605

621

574


580

523

626



Total

8,479

8,153

10,201

10,475


9,184

8,906

10,258














Property, Plant and Equipment











Oil and Gas Properties (Successful Efforts Method)

65,408

66,098

67,065

67,322


67,907

69,178

70,730



Other Property, Plant and Equipment

4,801

4,862

4,659

4,786


5,101

5,282

5,355



Total Property, Plant and Equipment

70,209

70,960

71,724

72,108


73,008

74,460

76,085



Less:  Accumulated Depreciation, Depletion and Amortization

(41,747)

(42,113)

(42,623)

(42,679)


(42,785)

(43,550)

(44,362)



Total Property, Plant and Equipment, Net

28,462

28,847

29,101

29,429


30,223

30,910

31,723



Deferred Income Taxes

13

12

18

33


31

33

33



Other Assets

1,143

1,127

1,167

1,434


1,587

1,638

1,633



Total Assets

38,097

38,139

40,487

41,371


41,025

41,487

43,647














Current Liabilities











Accounts Payable

2,660

2,896

2,718

2,532


2,438

2,205

2,464



Accrued Taxes Payable

1,130

594

542

405


637

425

605



Dividends Payable

436

437

437

482


482

478

478



Liabilities from Price Risk Management Activities

260

79

243

169


31

22

22



Current Portion of Long-Term Debt

1,283

1,282

1,282

1,283


33

34

34



Current Portion of Operating Lease Liabilities

223

216

235

296


354

335

337



Other

272

264

289

346


253

232

285



Total

6,264

5,768

5,746

5,513


4,228

3,731

4,225














Long-Term Debt

3,816

3,809

3,802

3,795


3,787

3,780

3,772



Other Liabilities

2,191

2,067

2,573

2,574


2,620

2,581

2,698



Deferred Income Taxes

4,286

4,183

4,517

4,710


4,943

5,138

5,194



Commitments and Contingencies






















Stockholders' Equity











Common Stock, $0.01 Par

206

206

206

206


206

206

206



Additional Paid in Capital

6,095

6,128

6,155

6,187


6,219

6,257

6,133



Accumulated Other Comprehensive Loss

(13)

(12)

(6)

(8)


(8)

(9)

(7)



Retained Earnings

15,283

16,028

17,563

18,472


19,423

20,497

22,047



Common Stock Held in Treasury

(31)

(38)

(69)

(78)


(393)

(694)

(621)



Total Stockholders' Equity

21,540

22,312

23,849

24,779


25,447

26,257

27,758



Total Liabilities and Stockholders' Equity

38,097

38,139

40,487

41,371


41,025

41,487

43,647



 

Cash Flows Statements


In millions of USD (Unaudited)














2022


2023



1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year


1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD


Cash Flows from Operating Activities













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













Net Income

390

2,238

2,854

2,277

7,759


2,023

1,553

2,030


5,606


Items Not Requiring (Providing) Cash













Depreciation, Depletion and Amortization

847

911

906

878

3,542


798

866

898


2,562


Impairments

55

91

94

142

382


34

35

54


123


Stock-Based Compensation Expenses

35

30

34

34

133


34

35

57


126


Deferred Income Taxes

(465)

(102)

327

179

(61)


234

194

56


484


(Gains) Losses on Asset Dispositions, Net

(25)

(97)

21

27

(74)


(69)

9

(35)


(95)


Other, Net

6

(16)

(5)

15


4

2

(1)


5


Dry Hole Costs

3

20

18

4

45


1


1


Mark-to-Market Financial Commodity Derivative Contracts (Gains) Losses, Net

2,820

1,377

18

(233)

3,982


(376)

(101)

(43)


(520)


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

(296)

(2,114)

(847)

(244)

(3,501)


(123)

(30)

23


(130)