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 EOG Resources Reports Fourth Quarter and Full Year 2014 Results and Announces Return-Driven Capital Program for 2015
   Wednesday, February 18, 2015 5:09:00 PM ET

-- Realizes 16 Percent ROE and 14 Percent ROCE for 2014

-- Delivers 31 Percent Year-Over-Year Total Company Crude Oil Production Growth and 17 Percent Total Company Production Growth

-- Reports Robust Year-Over-Year Increases in Adjusted Non-GAAP Net Income Per Share and Discretionary Cash Flow

-- Increases Reserves 18 Percent and Replaces 273 Percent of its Production at Low Finding Costs

-- Continues to Achieve Outstanding Performance from the Eagle Ford, Bakken and Delaware Basin

-- Announces Disciplined 2015 Capital Program, Plans to Delay Well Completions and Targets Flat Year-Over-Year Crude Oil Production

EOG Resources, Inc. (EOG ) (EOG) today reported fourth quarter 2014 net income of $445 million, or $0.81 per share. This compares to fourth quarter 2013 net income of $580 million, or $1.06 per share. For the full year, EOG reported net income of $2,915 million, or $5.32 per share, compared to $2,197 million, or $4.02 per share, for the full year 2013.

Adjusted non-GAAP net income for the fourth quarter 2014 was $432 million, or $0.79 per share, and for the fourth quarter 2013 was $548 million, or $1.00 per share. Adjusted non-GAAP net income for the full year 2014 was $2,716 million, or $4.95 per share, and for the full year 2013 was $2,246 million, or $4.11 per share. Adjusted non-GAAP net income is calculated by matching realizations to settlement months and making certain other adjustments in order to exclude one-time items. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP.)

EOG achieved strong financial metrics for 2014. Adjusted non-GAAP net income per share increased 20 percent and discretionary cash flow increased 14 percent, compared to 2013. For the year, EOG posted ROE of 16 percent and ROCE of 14 percent. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP and for return calculations.)

In the fourth quarter 2014, EOG increased its U.S. crude oil and condensate production by 28 percent, while total company crude oil and condensate production rose by 26 percent, compared to the same prior year period.

For the full year, crude oil and condensate production increased 31 percent year over year, driven by 33 percent growth in the United States. Natural gas liquids (NGLs) production increased 23 percent, while natural gas production was flat. Overall total company production increased 17 percent.

"EOG delivered both high returns and strong growth in 2014, a unique accomplishment in the energy sector," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "Our returns-focused capital discipline has been at the core of EOG’s culture since the very beginning. We are confident we will continue to earn healthy returns on our capital program during this commodity down cycle and, more importantly, emerge stronger and poised for significant long-term growth."

2015 Capital Plan

EOG’s primary goal for 2015 is to position the company to resume long-term growth once crude oil prices recover. The company is not interested in accelerating crude oil production in a low-price environment.

Capital expenditures for 2015 are expected to range from $4.9 to $5.1 billion, including production facilities and midstream expenditures, and excluding acquisitions. This 40 percent reduction compared to 2014 reflects EOG’s commitment to capital discipline in a low crude oil price environment.

Capital will be allocated primarily to EOG’s highest rate-of-return oil assets, the Eagle Ford, Delaware Basin and Bakken plays. To further enhance capital efficiency, EOG plans to utilize rigs under existing commitments and delay a significant number of completions. Delaying completions increases returns, adds substantial net present value and prepares the company to resume strong oil growth when commodity prices recover.

Due to reduced capital spending and delayed completions, EOG expects to complete approximately 45 percent fewer wells in 2015 versus 2014. Therefore, the midpoint for 2015 total company crude oil production guidance is essentially flat year over year. Once again, EOG plans to minimize investment in domestic dry natural gas drilling. As a result, its U.S. natural gas production and total company production are expected to decline modestly.

Year after year, EOG has relentlessly focused on advancing its industry-leading completion technology and driving down unit costs through efficiency gains. That will not change in 2015.

Finally, the company expects to use its strong balance sheet to capitalize on unique opportunities created by this low-price environment to add high-quality acreage.

"The downturn in oil prices will drive significant reductions in global supply and the market will rebalance," Thomas said. "Our goal at EOG is to exit this downturn in better shape than we entered it.

"The current environment brings more opportunities to lower our finding costs, improve our returns and add high-quality drilling inventory. As prices recover, EOG will be poised to resume strong U.S. oil growth," Thomas added.

South Texas Eagle Ford

The Eagle Ford continues to drive EOG’s long-term crude oil growth. Each year since its operations began five years ago, EOG has improved per-well productivity and successfully downspaced wells through advancements in completion technology. Estimated potential net reserves have grown 250 percent from 900 million barrels of oil equivalent (MMBoe) in 2009 to 3.2 billion barrels of oil equivalent today. EOG has over 5,500 remaining net well locations in the Eagle Ford - over a decade of drilling. This world-class play will continue to be EOG’s primary source of returns and growth for years to come.

During the fourth quarter of 2014, the Eagle Ford continued to deliver impressive well results across EOG’s acreage. The Korth Unit 6H through 9H had initial production rates ranging from 3,955 to 5,480 barrels of oil per day (Bopd), 355 to 535 barrels per day (Bpd) of NGLs and 2.1 to 3.1 million cubic feet per day (MMcfd) of natural gas. This four-well pattern drilled in Karnes County initially produced over 19,000 Bopd, 1,700 Bpd of NGLs and 10 MMcfd of natural gas, collectively.

On the western side of EOG’s Eagle Ford acreage in La Salle County, the Naylor Jones Unit 14-1H and 15-1H had initial production rates of 2,460 and 2,850 Bopd, plus 165 and 190 Bpd of NGLs and 975 thousand cubic feet per day (Mcfd) and 1.1 MMcfd of natural gas, respectively. In McMullen County, the Los Compadres Unit 1H was brought online at an initial production rate of 2,535 Bopd, with 180 Bpd of NGLs and 1.1 MMcfd of natural gas.

In 2015, EOG will execute a balanced drilling program across the length of its Eagle Ford acreage. Due to advancements achieved in the western acreage during the last two years, returns are competitive with the east and a balanced drilling program will maximize operational efficiencies. EOG plans to complete about 345 net wells in the Eagle Ford compared to 534 in 2014.

Delaware Basin

In 2014, EOG expanded activity in the Delaware Basin resulting in the identification of considerable new potential across three separate targets. EOG’s technical understanding of the basin advanced, confirmed by a series of impressive well results in the second half of the year. With lower costs and improved well productivity, EOG’s drilling program across the Delaware Basin is now consistently generating rates-of-return which are on par with the Eagle Ford and Bakken plays.

In the Second Bone Spring Sand, EOG applied advanced completion techniques and determined that at least 90,000 net acres of its leasehold are prospective in the oil window. In the Leonard, the company continued to make technical progress. EOG piloted multiple downspacing tests which could eventually increase the size of its crude oil drilling inventory in the Leonard play.

In the Delaware Basin Wolfcamp, EOG made significant advancements in well productivity, breaking its own record initial production rates with each successive well. Most recently, EOG completed three wells in Reeves County. The State Harrison Ranch 57 #1501H and #2101H and the State Apache 57 #202H had initial production rates ranging from 1,500 to over 2,000 Bopd, with 550 to 700 Bpd of NGLs and 4.0 to 4.5 MMcfd of natural gas.

Also in 2014, EOG confirmed that 90,000 net acres of its total 140,000 net-acre Wolfcamp position are in the oil window.

In 2015, capital expenditures will increase in the Permian Basin as EOG expects to complete about 95 net wells, a 53 percent increase compared to 2014. Capital will be directed to development drilling in the northern Delaware Basin targeting EOG’s three highest-return plays - the Leonard, the Second Bone Spring Sand and the Wolfcamp. Ongoing technical work will determine the most efficient approach to develop these three plays and enable EOG to test additional prospective zones.

North Dakota Bakken

In 2014, EOG’s drilling activity in North Dakota was directed to two key areas, the Bakken Core and the Antelope Extension. The focus this past year has been to drive down drilling costs and further advance completions to improve well performance and allow for additional downspacing. In the fourth quarter, EOG completed a six-well pattern in the Bakken Core area spaced at 700 feet between wells which delivered a combined initial production rate of 9,450 Bopd and 5 MMcfd of rich natural gas. Initial results from these completion and downspacing pilots are very encouraging, and additional pilots and testing in 2015 are designed to uncover the best long-term development plan for this crude oil growth play.

Also in 2014, EOG stepped out from the Bakken to test the Three Forks formation, particularly in the Antelope Extension, with some notable well results. Due to the low-price crude oil environment, additional development of this high-potential target will be put on hold.

Capital allocated to the Bakken will decrease significantly in 2015. EOG expects to complete about 25 net wells compared to 59 in 2014.

Wyoming Rockies

2014 was a big year for exploration in Wyoming as EOG announced four Rockies plays, the Codell and Niobrara in the DJ Basin, and the Parkman and Turner in the Powder River Basin. All four plays generated strong rates of return and consistent well results in 2014.

EOG completed several excellent wells in the fourth quarter in these emerging plays. In the DJ Basin Codell, the Windy 515-1819H and Windy 509-1806H had initial production rates of 1,490 and 1,355 Bopd, with 145 and 110 Bpd of NGLs, and 515 and 375 Mcfd of natural gas, respectively.

In the Powder River Basin, three recently completed Parkman wells, the Mary’s Draw 4-0310H, 26-0310H and 209-0310H, had initial production rates of 1,160, 1,425 and 1,205 Bopd, with 460, 525, 1,015 Mcfd of rich natural gas, respectively. Two Turner completions are the Mary’s Draw 7-24H and 8-24RH with initial production rates of 915 Bopd and 1.9 MMcfd of rich natural gas, and 925 Bopd and 1.9 MMcfd of rich natural gas, respectively.

EOG does not plan significant development of its DJ Basin or Powder River Basin assets until crude oil prices improve.

"EOG continues to demonstrate its leadership in growing high-return drilling inventory organically," Thomas said. "Last year at this time, we announced an increase to the reserves and drilling inventory in the Eagle Ford. A quarter later, we announced four plays in the Rockies. By the third quarter, we had delineated the Second Bone Spring Sand and identified the Wolfcamp oil window in the Delaware Basin. As in years past, we added more high-return inventory than we drilled during the year."

Reserves

Driven almost entirely by strong liquids reserves growth in the United States, EOG increased total company net proved reserves 18 percent in 2014. At year-end, total company net proved reserves were 2,497 MMBoe, comprised of 46 percent crude oil and condensate, 19 percent NGLs and 35 percent natural gas.

Net proved reserve additions replaced 273 percent of EOG’s 2014 production at a finding and development cost of $12.16 per barrel of oil equivalent (Boe). Excluding reserve revisions due to commodity price changes, the replacement ratio was 249 percent at a cost of $13.25 per Boe. (For more reserves detail, including calculation of reserve replacement ratios and reserve replacement costs, please refer to the attached tables.)

For the 27th consecutive year, internal reserve estimates were within 5 percent of estimates independently prepared by DeGolyer and MacNaughton.

Hedging Activity

For February 1 through June 30, 2015, EOG has crude oil financial price swap contracts in place for 47,000 Bopd at a weighted average price of $91.22 per barrel. For July 1 through December 31, 2015, EOG has crude oil financial price swap contracts in place for 10,000 Bopd at a weighted average price of $89.98 per barrel, excluding unexercised options.

For March 1 through December 31, 2015, EOG has natural gas financial price swap contracts in place for approximately 182,000 million British thermal units per day at a weighted average price of $4.51 per million British thermal units, excluding unexercised options. (For a comprehensive summary of crude oil and natural gas derivative contracts, please refer to the attached tables.)

Capital Structure

During 2014, EOG’s cash flows from operating activities exceeded total capital expenditures. Total proceeds from asset sales were $569 million.

At December 31, 2014, EOG’s total debt outstanding was $5,910 million for a debt-to-total capitalization ratio of 25 percent. Taking into account cash on the balance sheet of $2,087 million at year-end, EOG’s net debt was $3,823 million for a net debt-to-total capitalization ratio of 18 percent, down from 23 percent at year-end 2013. (Please refer to the attached tables for the reconciliation of non-GAAP debt measures to GAAP.)

Dividend

The board of directors declared a dividend of $0.1675 per share on EOG’s Common Stock, payable April 30, 2015, to stockholders of record as of April 16, 2015. The indicated annual rate is $0.67 per share.

Conference Call February 19, 2015

EOG’s fourth quarter and full year 2014 results conference call will be available via live audio webcast at 8 a.m. Central time (9 a.m. Eastern time) on Thursday, February 19, 2015. To listen, log on to www.eogresources.com. The webcast will be archived on EOG’s website through March 5, 2015.

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, extent and duration 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 is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and optimize 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, natural gas and related commodity production;

-- the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, 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; 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 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 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 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 13 through 20 of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 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). 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, 2014, 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.

Investors Cedric W. Burgher (713) 571-4658 David J. Streit (713) 571-4902 Kimberly M. Ehmer (713) 571-4676

Media K Leonard (713) 571-3870

EOG RESOURCES, INC.
FINANCIAL REPORT
(Unaudited; in millions, except per share data)
                                                                                  Three Months Ended                            Twelve Months Ended
                                                                                  December 31,                                  December 31,
                                                                                  2014                   2013                   2014                   2013
Net Operating Revenues                                                            $          4,645.5     $          3,749.0     $          18,035.3    $   14,487.1
Net Income                                                                        $          444.6       $          580.2       $          2,915.5     $   2,197.1
Net Income Per Share
                  Basic                                                           $          0.82        $          1.07        $          5.36        $   4.07
                  Diluted                                                         $          0.81        $          1.06        $          5.32        $   4.02
Average Number of Common Shares
                  Basic                                                                      544.6                  541.9                  543.4           540.3
                  Diluted                                                                    549.2                  548.0                  548.5           546.2
SUMMARY INCOME STATEMENTS
(Unaudited; in thousands, except per share data)
                                                                                  Three Months Ended                            Twelve Months Ended
                                                                                  December 31,                                  December 31,
                                                                                  2014                   2013                   2014                   2013
Net Operating Revenues
                  Crude Oil and Condensate                                        $          2,054,901   $          2,168,073   $          9,742,480   $   8,300,647
                  Natural Gas Liquids                                                        180,916                217,794                934,051         773,970
                  Natural Gas                                                                407,494                411,425                1,916,386       1,681,029
                  Gains (Losses) on Mark-to-Market Commodity Derivative Contracts            750,154                40,504                 834,273         (166,349)
                  Gathering, Processing and Marketing                                        806,177                888,680                4,046,316       3,643,749
                  Gains on Asset Dispositions, Net                                           431,890                11,996                 507,590         197,565
                  Other, Net                                                                 13,965                 10,551                 54,244          56,507
                                                  Total                                      4,645,497              3,749,023              18,035,340      14,487,118
Operating Expenses
                  Lease and Well                                                             380,781                288,921                1,416,413       1,105,978
                  Transportation Costs                                                       242,293                224,506                972,176         853,044
                  Gathering and Processing Costs                                             37,785                 26,349                 145,800         107,871
                  Exploration Costs                                                          45,167                 30,378                 184,388         161,346
                  Dry Hole Costs                                                             18,225                 15,395                 48,490          74,655
                  Impairments                                                                535,637                109,509                743,575         286,941
                  Marketing Costs                                                            862,589                901,940                4,126,060       3,648,840
                  Depreciation, Depletion and Amortization                                   1,013,930              915,257                3,997,041       3,600,976
                  General and Administrative                                                 131,285                91,066                 402,010         348,312
                  Taxes Other Than Income                                                    151,153                165,378                757,564         623,944
                                                  Total                                      3,418,845              2,768,699              12,793,517      10,811,907
Operating Income                                                                             1,226,652              980,324                5,241,823       3,675,211
Other Expense, Net                                                                           (28,324)               (8,732)                (45,050)        (2,865)
Income Before Interest Expense and Income Taxes                                              1,198,328              971,592                5,196,773       3,672,346
Interest Expense, Net                                                                        49,735                 52,510                 201,458         235,460
Income Before Income Taxes                                                                   1,148,593              919,082                4,995,315       3,436,886
Income Tax Provision                                                                         704,005                338,888                2,079,828       1,239,777
Net Income                                                                        $          444,588     $          580,194     $          2,915,487   $   2,197,109
Dividends Declared per Common Share                                               $          0.1675      $          0.0938      $          0.5850      $   0.3750
Note: All share and per-share amounts shown have been restated to reflect the 2-for-1 stock split effective March 31, 2014.
EOG RESOURCES, INC.
OPERATING HIGHLIGHTS
(Unaudited)
                                                                                  Three Months Ended                            Twelve Months Ended
                                                                                  December 31,                                  December 31,
                                                                                  2014                   2013                   2014                   2013
Wellhead Volumes and Prices
Crude Oil and Condensate Volumes (MBbld) (A)
                  United States                                                              301.5                  235.4                  282.0           212.1
                  Canada                                                                     5.2                    7.7                    5.8             7.0
                  Trinidad                                                                   0.9                    1.1                    1.0             1.2
                  Other International (B)                                                    0.1                    0.1                    0.1             0.1
                                                  Total                                      307.7                  244.3                  288.9           220.4
Average Crude Oil and Condensate Prices ($/Bbl) (C)
                  United States                                                   $          72.76       $          97.23       $          92.73       $   103.81
                  Canada                                                                     72.72                  78.02                  86.71           87.05
                  Trinidad                                                                   63.65                  84.91                  84.63           90.30
                  Other International (B)                                                    87.90                  89.97                  90.03           89.11
                                                  Composite                                  72.74                  96.57                  92.58           103.20
Natural Gas Liquids Volumes (MBbld) (A)
                  United States                                                              83.1                   66.6                   79.7            64.3
                  Canada                                                                     0.5                    0.8                    0.6             0.9
                                                  Total                                      83.6                   67.4                   80.3            65.2
Average Natural Gas Liquids Prices ($/Bbl) (C)
                  United States                                                   $          23.48       $          35.01       $          31.84       $   32.46
                  Canada                                                                     31.42                  45.17                  40.73           39.45
                                                  Composite                                  23.53                  35.13                  31.91           32.55
Natural Gas Volumes (MMcfd) (A)
                  United States                                                              921                    873                    920             908
                  Canada                                                                     51                     69                     61              76
                  Trinidad                                                                   329                    372                    363             355
                  Other International (B)                                                    9                      7                      9               8
                                                  Total                                      1,310                  1,321                  1,353           1,347
Average Natural Gas Prices ($/Mcf) (C)
                  United States                                                   $          3.21        $          3.28        $          3.93        $   3.32
                  Canada                                                                     3.64                   3.34                   4.32            3.08
                  Trinidad                                                                   3.77                   3.60                   3.65            3.68
                  Other International (B)                                                    5.04                   6.01                   5.03            6.45
                                                  Composite                                  3.38                   3.39                   3.88            3.42
Crude Oil Equivalent Volumes (MBoed) (D)
                  United States                                                              538.3                  447.6                  515.0           427.9
                  Canada                                                                     14.1                   19.9                   16.7            20.5
                  Trinidad                                                                   55.7                   63.0                   61.5            60.4
                  Other International (B)                                                    1.5                    1.3                    1.5             1.3
                                                  Total                                      609.6                  531.8                  594.7           510.1
Total MMBoe (D)                                                                              56.1                   48.9                   217.1           186.2
(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.
(C) 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 (NGL) and natural gas.  Crude oil equivalents are determined using the ratio of 1.0 barrel of crude oil and condensate or NGL 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,
                                                                                                                                                                           2014                       2013
ASSETS
Current Assets
                   Cash and Cash Equivalents                                                                                                                               $            2,087,213     $            1,318,209
                   Accounts Receivable, Net                                                                                                                                             1,779,311                  1,658,853
                   Inventories                                                                                                                                                          706,597                    563,268
                   Assets from Price Risk Management Activities                                                                                                                         465,128                    8,260
                   Income Taxes Receivable                                                                                                                                              71,621                     4,797
                   Deferred Income Taxes                                                                                                                                                19,618                     244,606
                   Other                                                                                                                                                                286,533                    274,022
                                                                                Total                                                                                                   5,416,021                  4,072,015
Property, Plant and Equipment
                   Oil and Gas Properties (Successful Efforts Method)                                                                                                                   46,503,532                 42,821,803
                   Other Property, Plant and Equipment                                                                                                                                  3,750,958                  2,967,085
                                                                                Total Property, Plant and Equipment                                                                     50,254,490                 45,788,888
                   Less:  Accumulated Depreciation, Depletion and Amortization                                                                                                          (21,081,846)               (19,640,052)
                                                                                Total Property, Plant and Equipment, Net                                                                29,172,644                 26,148,836
Other Assets                                                                                                                                                                            174,022                    353,387
Total Assets                                                                                                                                                               $            34,762,687    $            30,574,238
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
                   Accounts Payable                                                                                                                                        $            2,860,548     $            2,254,418
                   Accrued Taxes Payable                                                                                                                                                140,098                    159,365
                   Dividends Payable                                                                                                                                                    91,594                     50,795
                   Liabilities from Price Risk Management Activities                                                                                                                    -                          127,542
                   Deferred Income Taxes                                                                                                                                                110,743                    -
                   Current Portion of Long-Term Debt                                                                                                                                    6,579                      6,579
                   Other                                                                                                                                                                174,746                    263,017
                                                                                Total                                                                                                   3,384,308                  2,861,716
Long-Term Debt                                                                                                                                                                          5,903,354                  5,906,642
Other Liabilities                                                                                                                                                                       939,497                    865,067
Deferred Income Taxes                                                                                                                                                                   6,822,946                  5,522,354
Commitments and Contingencies
Stockholders’ Equity
                   Common Stock, $0.01 Par, 640,000,000 Shares Authorized and 549,028,374 Shares and 546,378,440 Shares Issued at December 31, 2014 and 2013, respectively
                                                                                                                                                                                        205,492                    202,732
                   Additional Paid in Capital                                                                                                                                           2,837,150                  2,646,879
                   Accumulated Other Comprehensive Income (Loss)                                                                                                                        (23,056)                   415,834
                   Retained Earnings                                                                                                                                                    14,763,098                 12,168,277
                   Common Stock Held in Treasury, 733,517 Shares and 206,830 Shares at December 31, 2014 and 2013, respectively
                                                                                                                                                                                        (70,102)                   (15,263)
                                                                                Total Stockholders’ Equity                                                                              17,712,582                 15,418,459
Total Liabilities and Stockholders’ Equity                                                                                                                                 $            34,762,687    $            30,574,238
Note: All share amounts shown have been restated to reflect the 2-for-1 stock split effective March 31, 2014.
EOG RESOURCES, INC.
SUMMARY STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
                                                                                                                                                                           Twelve Months Ended
                                                                                                                                                                           December 31,
                                                                                                                                                                           2014                       2013
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
                   Net Income                                                                                                                                              $            2,915,487     $            2,197,109
                   Items Not Requiring (Providing) Cash
                                                                                Depreciation, Depletion and Amortization                                                                3,997,041                  3,600,976
                                                                                Impairments                                                                                             743,575                    286,941
                                                                                Stock-Based Compensation Expenses                                                                       145,086                    134,055
                                                                                Deferred Income Taxes                                                                                   1,704,946                  874,765
                                                                                Gains on Asset Dispositions, Net                                                                        (507,590)                  (197,565)
                                                                                Other, Net                                                                                              48,138                     11,072
                   Dry Hole Costs                                                                                                                                                       48,490                     74,655
                   Mark-to-Market Commodity Derivative Contracts
                                                                                Total (Gains) Losses                                                                                    (834,273)                  166,349
                                                                                Net Cash Received from Settlements of Commodity Derivative Contracts                                    34,007                     116,361
                   Excess Tax Benefits from Stock-Based Compensation                                                                                                                    (99,459)                   (55,831)
                   Other, Net                                                                                                                                                           13,009                     18,205
                   Changes in Components of Working Capital and Other Assets and Liabilities
                                                                                Accounts Receivable                                                                                     84,982                     (23,613)
                                                                                Inventories                                                                                             (161,958)                  53,402
                                                                                Accounts Payable                                                                                        543,630                    178,701
                                                                                Accrued Taxes Payable                                                                                   16,486                     75,142
                                                                                Other Assets                                                                                            (14,448)                   (109,567)
                                                                                Other Liabilities                                                                                       75,420                     (20,382)
                   Changes in Components of Working Capital Associated with Investing and Financing Activities
                                                                                                                                                                                        (103,414)                  (51,361)
Net Cash Provided by Operating Activities                                                                                                                                               8,649,155                  7,329,414
Investing Cash Flows
                   Additions to Oil and Gas Properties                                                                                                                                  (7,519,667)                (6,697,091)
                   Additions to Other Property, Plant and Equipment                                                                                                                     (727,138)                  (363,536)
                   Proceeds from Sales of Assets                                                                                                                                        569,332                    760,557
                   Changes in Restricted Cash                                                                                                                                           60,385                     (65,814)
                   Changes in Components of Working Capital Associated with Investing Activities                                                                                        103,523                    51,106
Net Cash Used in Investing Activities                                                                                                                                                   (7,513,565)                (6,314,778)
Financing Cash Flows
                   Long-Term Debt Borrowings                                                                                                                                            496,220                    -
                   Long-Term Debt Repayments                                                                                                                                            (500,000)                  (400,000)
                   Settlement of Foreign Currency Swap                                                                                                                                  (31,573)                   -
                   Dividends Paid                                                                                                                                                       (279,695)                  (199,178)
                   Excess Tax Benefits from Stock-Based Compensation                                                                                                                    99,459                     55,831
                   Treasury Stock Purchased                                                                                                                                             (127,424)                  (63,784)
                   Proceeds from Stock Options Exercised and Employee Stock Purchase Plan                                                                                               22,249                     38,730
                   Debt Issuance Costs                                                                                                                                                  (895)                      -
                   Repayment of Capital Lease Obligation                                                                                                                                (5,966)                    (5,780)
                   Other, Net                                                                                                                                                           (109)                      255
Net Cash Used in Financing Activities                                                                                                                                                   (327,734)                  (573,926)
Effect of Exchange Rate Changes on Cash                                                                                                                                                 (38,852)                   1,064
Increase in Cash and Cash Equivalents                                                                                                                                                   769,004                    441,774
Cash and Cash Equivalents at Beginning of Period                                                                                                                                        1,318,209                  876,435
Cash and Cash Equivalents at End of Period                                                                                                                                 $            2,087,213     $            1,318,209
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, 2014 and 2013 reported Net Income (GAAP) to reflect actual net cash received from settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net gains on asset dispositions in North America in 2014 and 2013, to add back impairment charges related to certain of EOG’s assets in 2014 and 2013 and the tax expense related to the anticipated repatriation of accumulated foreign earnings in future years.  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                               Twelve Months Ended
                                                                                                     December 31,                                     December 31,
                                                                                                     2014                          2013               2014                 2013
Reported Net Income (GAAP)                                                                           $        444,588              $        580,194   $        2,915,487   $        2,197,109
Commodity Derivative Contracts Impact
                               (Gains) Losses on Mark-to-Market Commodity Derivative Contracts                (750,154)                     (40,504)           (834,273)            166,349
                               Net Cash Received from Settlements of Commodity Derivative Contracts           222,944                       1,038              34,007               116,361
                                                                  Subtotal                                    (527,210)                     (39,466)           (800,266)            282,710
                               After-Tax Impact                                                               (339,792)                     (24,901)           (514,971)            181,372
Less: Net Gains on Asset Dispositions, Net of Tax                                                             (439,834)                     (7,232)            (487,260)            (136,848)
Add: Impairments of Certain Assets, Net of Tax                                                                517,041                       -                  553,099              4,425
Add: Tax Expense Related to the Repatriation of Accumulated Foreign Earnings in Future Years                  249,861                       -                  249,861              -
Adjusted Net Income (Non-GAAP)                                                                       $        431,864              $        548,061   $        2,716,216   $        2,246,058
Net Income Per Share (GAAP)
                               Basic                                                                 $        0.82                 $        1.07      $        5.36        $        4.07
                               Diluted                                                               $        0.81                 $        1.06      $        5.32        $        4.02
Adjusted Net Income Per Share (Non-GAAP)
                               Basic                                                                 $        0.79                 $        1.01      $        5.00        $        4.16
                               Diluted                                                               $        0.79                 $        1.00      $        4.95        $        4.11
Adjusted Net Income Per Diluted Share (Non-GAAP) - Percentage Increase                                        -21                %                             20        %
Average Number of Common Shares (GAAP)
                               Basic                                                                          544,579                       541,857            543,443              540,341
                               Diluted                                                                        549,153                       547,966            548,539              546,227
Reconciliation of Net Gains on Asset Dispositions and Impairments of Certain Assets
                                                                                                              Three Months Ended
                                                                                                              December 31, 2014
Net Gains on Asset Dispositions                                                                      $        431,890
Less: Exit Costs in General and Administrative Expense                                                        (21,465)
Less: Income Tax Benefit (Expense)                                                                            29,409
After-Tax Impact                                                                                     $        439,834
Impairments of Certain Assets                                                                        $        444,867
Less: Income Tax (Benefit) Expense                                                                            (251,068)
Add: Deferred Tax Valuation Allowance                                                                         323,242
After-Tax Impact                                                                                     $        517,041
Note: All share and per-share amounts shown have been restated to reflect the 2-for-1 stock split effective March 31, 2014.
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 twelve-month periods ended December 31, 2014 and 2013 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               Twelve Months Ended
                                                                                                           December 31,                     December 31,
                                                                                                           2014              2013           2014              2013
Net Cash Provided by Operating Activities (GAAP)                                                           $   2,110,438     $   2,001,230  $   8,649,155     $   7,329,414
Adjustments:
               Exploration Costs (excluding Stock-Based Compensation Expenses)                                 38,450            24,201         157,453           134,531
               Excess Tax Benefits from Stock-Based Compensation                                               11,632            5,601          99,459            55,831
               Changes in Components of Working Capital and Other Assets and Liabilities
                                               Accounts Receivable                                             (426,025)         (190,133)      (84,982)          23,613
                                               Inventories                                                     42,792            7,745          161,958           (53,402)
                                               Accounts Payable                                                23,123            (33,502)       (543,630)         (178,701)
                                               Accrued Taxes Payable                                           159,926           (1,945)        (16,486)          (75,142)
                                               Other Assets                                                    (47,518)          30,768         14,448            109,567
                                               Other Liabilities                                               (8,802)           31,271         (75,420)          20,382
               Changes in Components of Working Capital Associated with Investing and Financing Activities     (5,154)
                                                                                                                                 (21,584)       103,414           51,361
Discretionary Cash Flow (Non-GAAP)                                                                         $   1,898,862     $   1,853,652  $   8,465,369     $   7,417,454
Discretionary Cash Flow (Non-GAAP) - Percentage Increase                                                       2         %                      14        %
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 twelve-month periods ended December 31, 2014 and 2013 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 received from (payments for) settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (MTM) (gains) losses from these transactions and to eliminate the net gains on asset dispositions in North America in 2014 and 2013.  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               Twelve Months Ended
                                                                                         December 31,                     December 31,
                                                                                         2014              2013           2014               2013
Income Before Interest Expense and Income Taxes (GAAP)                                   $   1,198,328     $   971,592    $   5,196,773      $   3,672,346
Adjustments:
                   Depreciation, Depletion and Amortization                                  1,013,930         915,257        3,997,041          3,600,976
                   Exploration Costs                                                         45,167            30,378         184,388            161,346
                   Dry Hole Costs                                                            18,225            15,395         48,490             74,655
                   Impairments                                                               535,637           109,509        743,575            286,941
                                                      EBITDAX (Non-GAAP)                     2,811,287         2,042,131      10,170,267         7,796,264
                   Total (Gains) Losses on MTM Commodity Derivative Contracts                (750,154)         (40,504)       (834,273)          166,349
                   Net Cash Received from Settlements of Commodity Derivative Contracts      222,944           1,038          34,007             116,361
                   Gains on Asset Dispositions, Net                                          (431,890)         (11,996)       (507,590)          (197,565)
Adjusted EBITDAX (Non-GAAP)                                                              $   1,852,187     $   1,990,669  $   8,862,411      $   7,881,409
Adjusted EBITDAX (Non-GAAP) - Percentage Increase                                            -7        %                      12         %
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               At
                                                                December 31,     December 31,
                                                                2014             2013
Total Stockholders’ Equity - (a)                                $      17,713    $      15,418
Current and Long-Term Debt (GAAP) - (b)                                5,910            5,913
Less: Cash                                                             (2,087)          (1,318)
Net Debt (Non-GAAP) - (c)                                              3,823            4,595
Total Capitalization (GAAP) - (a) + (b)                         $      23,623    $      21,331
Total Capitalization (Non-GAAP) - (a) + (c)                     $      21,536    $      20,013
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]                25      %        28      %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]        18      %        23      %
EOG RESOURCES, INC.
RESERVES SUPPLEMENTAL DATA
(Unaudited)
2014 NET PROVED RESERVES RECONCILIATION SUMMARY
                                               United                       North                            Other           Total
                                               States        Canada         America        Trinidad          Int’l           Int’l           Total
CRUDE OIL & CONDENSATE (MMBbls)
Beginning Reserves                             880.0         10.1           890.1          1.6               8.8             10.4            900.5
Revisions                                      28.3          (0.3)          28.0           0.1               (0.1)           -               28.0
Purchases in place                             9.7           -              9.7            -                 -               -               9.7
Extensions, discoveries and other additions    319.6         -              319.6          -                 -               -               319.6
Sales in place                                 (4.9)         (7.7)          (12.6)         -                 -               -               (12.6)
Production                                     (102.9)       (2.1)          (105.0)        (0.4)             -               (0.4)           (105.4)
Ending Reserves                                1,129.8       -              1,129.8        1.3               8.7             10.0            1,139.8
NATURAL GAS LIQUIDS (MMBbls)
Beginning Reserves                             376.0         1.2            377.2          -                 -               -               377.2
Revisions                                      27.5          -              27.5           -                 -               -               27.5
Purchases in place                             1.8           -              1.8            -                 -               -               1.8
Extensions, discoveries and other additions    91.7          -              91.7           -                 -               -               91.7
Sales in place                                 (1.0)         (0.8)          (1.8)          -                 -               -               (1.8)
Production                                     (29.0)        (0.3)          (29.3)         -                 -               -               (29.3)
Ending Reserves                                467.0         0.1            467.1          -                 -               -               467.1
NATURAL GAS (Bcf)
Beginning Reserves                             4,398.7       102.1          4,500.8        520.7             23.3            544.0           5,044.8
Revisions                                      252.2         9.8            262.0          12.9              (4.3)           8.6             270.6
Purchases in place                             17.1          -              17.1           -                 -               -               17.1
Extensions, discoveries and other additions    638.3         -              638.3          4.5               4.7             9.2             647.5
Sales in place                                 (52.4)        (78.7)         (131.1)        -                 -               -               (131.1)
Production                                     (348.4)       (22.3)         (370.7)        (132.5)           (3.1)           (135.6)         (506.3)
Ending Reserves                                4,905.5       10.9           4,916.4        405.6             20.6            426.2           5,342.6
OIL EQUIVALENTS (MMBoe)
Beginning Reserves                             1,989.2       28.3           2,017.5        88.4              12.6            101.0           2,118.5
Revisions                                      97.8          1.3            99.1           2.2               (0.7)           1.5             100.6
Purchases in place                             14.4          -              14.4           -                 -               -               14.4
Extensions, discoveries and other additions    517.6         -              517.6          0.8               0.8             1.6             519.2
Sales in place                                 (14.7)        (21.6)         (36.3)         -                 -               -               (36.3)
Production                                     (190.1)       (6.0)          (196.1)        (22.4)            (0.6)           (23.0)          (219.1)
Ending Reserves                                2,414.2       2.0            2,416.2        69.0              12.1            81.1            2,497.3
Net Proved Developed Reserves (MMBoe)
At December 31, 2013                           1,015.4       24.8           1,040.2        83.9              3.4             87.3            1,127.5
At December 31, 2014                           1,275.4       2.0            1,277.4        67.5              3.0             70.5            1,347.9
2014 EXPLORATION AND DEVELOPMENT EXPENDITURES ($ Millions)
                                               United                       North                            Other           Total
                                               States        Canada         America        Trinidad          Int’l           Int’l           Total
Acquisition Cost of Unproved Properties        $   365.9     $      4.5     $    370.4     $           -     $         -     $         -     $   370.4
Exploration Costs                              332.7         13.0           345.7          2.8               47.5            50.3            396.0
Development Costs                              6,489.3       70.7           6,560.0        75.5              168.2           243.7           6,803.7
Total Drilling                                 7,187.9       88.2           7,276.1        78.3              215.7           294.0           7,570.1
Acquisition Cost of Proved Properties          138.8         0.3            139.1          -                 -               -               139.1
Total Exploration & Development Expenditures   7,326.7       88.5           7,415.2        78.3              215.7           294.0           7,709.2
Gathering, Processing and Other                725.0         1.4            726.4          0.2               0.5             0.7             727.1
Asset Retirement Costs                         148.9         31.0           179.9          14.0              1.7             15.7            195.6
Total Expenditures                             8,200.6       120.9          8,321.5        92.5              217.9           310.4           8,631.9
Proceeds from Sales in Place                   (175.5)       (393.8)        (569.3)        -                 -               -               (569.3)
Net Expenditures                               $8,025.1      $  (272.9)     $ 7,752.2      $     92.5        $  217.9        $  310.4        $8,062.6
RESERVE REPLACEMENT COSTS ($ / Boe) *
Total Drilling, Before Revisions               $   13.89     NA             $    14.06     $    97.88        $269.63         $183.75         $   14.58
All-in Total, Net of Revisions                 $   11.63     $   68.08      $    11.75     $    26.10        NA              $  94.84        $   12.16
All-in Total, Excluding Revisions Due to Price $   12.68     $   88.50      $    12.81     $    26.10        NA              $  94.84        $   13.25
RESERVE REPLACEMENT *
Drilling Only                                  272       %   0          %   264        %   4             %   133         %   7           %   237       %
All-in Total, Net of Revisions & Dispositions  324       %   -338       %   303        %   13            %   17          %   13          %   273       %
All-in Total, Excluding Revisions Due to Price 296       %   -343       %   277        %   13            %   17          %   13          %   249       %
All-in Total, Liquids                          358       %   -367       %   345        %   25            %   NA              0           %   344       %
*   See attached reconciliation schedule for calculation methodology
EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF TOTAL EXPLORATION AND DEVELOPMENT EXPENDITURES
FOR DRILLING ONLY (NON-GAAP) AND TOTAL EXPLORATION AND DEVELOPMENT EXPENDITURES (NON-GAAP)
AS USED IN THE CALCULATION OF RESERVE REPLACEMENT COSTS ($ / BOE)
TO TOTAL COSTS INCURRED IN EXPLORATION AND DEVELOPMENT ACTIVITIES (GAAP)
(Unaudited; in millions, except ratio information)
The following chart reconciles Total Costs Incurred in Exploration and Development Activities (GAAP) to Total Exploration and Development Expenditures for Drilling Only (Non-GAAP) and Total Exploration and Development Expenditures (Non-GAAP), as used in the calculation of Reserve Replacement Costs per Boe.  There are numerous ways that industry participants present Reserve Replacement Costs, including "Drilling Only" and "All-In", which reflect total exploration and development expenditures divided by total net proved reserve additions from extensions and discoveries only, or from all sources.  Combined with Reserve Replacement, these statistics provide management and investors with an indication of the results of the current year capital investment program.  Reserve Replacement Cost statistics are widely recognized and reported by industry participants and are used by EOG management and other third parties for comparative purposes within the industry.  Please note that the actual cost of adding reserves will vary from the reported statistics due to timing differences in reserve bookings and capital expenditures.  Accordingly, some analysts use three or five year averages of reported statistics, while others prefer to estimate future costs.  EOG has not included future capital costs to develop proved undeveloped reserves in exploration and development expenditures.
                                                                                     United                  North                     Other      Total
                                                                                     States      Canada      America      Trinidad     Int’l      Int’l      Total
Total Costs Incurred in Exploration and Development Activities (GAAP)                $7,475.6    $   119.5   $ 7,595.1    $     92.3   $  217.4   $  309.7   $7,904.8
Less:                              Asset Retirement Costs                            (148.9)     (31.0)      (179.9)      (14.0)       (1.7)      (15.7)     (195.6)
                                   Acquisition Cost of Proved Properties             (138.8)     (0.3)       (139.1)      -            -          -          (139.1)
Total Exploration & Development Expenditures for Drilling Only
(Non-GAAP) (a)                                                                       $7,187.9    $    88.2   $ 7,276.1    $     78.3   $  215.7   $  294.0   $7,570.1
Total Costs Incurred in Exploration and Development Activities (GAAP)                $7,475.6    $   119.5   $ 7,595.1    $     92.3   $  217.4   $  309.7   $7,904.8
Less:  Asset Retirement Costs                                                        (148.9)     (31.0)      (179.9)      (14.0)       (1.7)      (15.7)     (195.6)
Total Exploration & Development Expenditures (Non-GAAP) (b)                          $7,326.7    $    88.5   $ 7,415.2    $     78.3   $  215.7   $  294.0   $7,709.2
Total Expenditures (GAAP)                                                            $8,200.6    $   120.9   $ 8,321.5    $     92.5   $  217.9   $  310.4   $8,631.9
Less:                              Asset Retirement Costs                            (148.9)     (31.0)      (179.9)      (14.0)       (1.7)      (15.7)     (195.6)
                                   Non-Cash Acquisition Costs of Unproved Properties (5.0)       -           (5.0)        -            -          -          (5.0)
Total Cash Expenditures (Non-GAAP)                                                   $8,046.7    $    89.9   $ 8,136.6    $     78.5   $  216.2   $  294.7   $8,431.3
Net Proved Reserve Additions From All Sources - Oil Equivalents
(MMBoe)
Revisions due to price (c)                                                           51.9        0.3         52.2         -            -          -          52.2
Revisions other than price                                                           45.9        1.0         46.9         2.2          (0.7)      1.5        48.4
Purchases in place                                                                   14.4        -           14.4         -            -          -          14.4
Extensions, discoveries and other additions (d)                                      517.6       -           517.6        0.8          0.8        1.6        519.2
Total Proved Reserve Additions (e)                                                   629.8       1.3         631.1        3.0          0.1        3.1        634.2
Sales in place                                                                       (14.7)      (21.6)      (36.3)       -            -          -          (36.3)
Net Proved Reserve Additions From All Sources (f)                                    615.1       (20.3)      594.8        3.0          0.1        3.1        597.9
Production (g)                                                                       190.1       6.0         196.1        22.4         0.6        23.0       219.1
RESERVE REPLACEMENT COSTS ($ / Boe)
Total Drilling, Before Revisions (a / d)                                             $   13.89   NA          $    14.06   $    97.88   $269.63    $183.75    $   14.58
All-in Total, Net of Revisions (b / e)                                               $   11.63   $   68.08   $    11.75   $    26.10   NA         $  94.84   $   12.16
All-in Total, Excluding Revisions Due to Price (b / (e - c))                         $   12.68   $   88.50   $    12.81   $    26.10   NA         $  94.84   $   13.25
RESERVE REPLACEMENT
Drilling Only (d / g)                                                                272       % 0         % 264        % 4          % 133      % 7        % 237       %
All-in Total, Net of Revisions & Dispositions (f / g)                                324       % -338      % 303        % 13         % 17       % 13       % 273       %
All-in Total, Excluding Revisions Due to Price ((f - c ) / g)                        296       % -343      % 277        % 13         % 17       % 13       % 249       %
Net Proved Reserve Additions From All Sources - Liquids (MMBbls)
Revisions                                                                            55.7        (0.3)       55.4         0.1          (0.1)      -          55.4
Purchases in place                                                                   11.5        -           11.5         -            -          -          11.5
Extensions, discoveries and other additions (h)                                      411.3       -           411.3        -            -          -          411.3
Total Proved Reserve Additions                                                       478.5       (0.3)       478.2        0.1          (0.1)      -          478.2
Sales in place                                                                       (6.0)       (8.5)       (14.5)       -            -          -          (14.5)
Net Proved Reserve Additions From All Sources (i)                                    472.5       (8.8)       463.7        0.1          (0.1)      -          463.7
Production (j)                                                                       131.9       2.4         134.3        0.4          -          0.4        134.7
RESERVE REPLACEMENT - LIQUIDS
Drilling Only (h / j)                                                                312       % 0         % 306        % 0          % NA         0        % 305       %
All-in Total, Net of Revisions & Dispositions (i / j)                                358       % -367      % 345        % 25         % NA         0        % 344       %
EOG RESOURCES, INC.
CRUDE OIL AND NATURAL GAS FINANCIAL
COMMODITY DERIVATIVE CONTRACTS
Presented below is a comprehensive summary of EOG’s crude oil and natural gas derivative contracts at February 16, 2015, 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)
2015(1)
January 2015 (closed)                                                                                                                                        47,000    $           91.22
February 1, 2015 through June 30, 2015                                                                                                                       47,000    91.22
July 1, 2015 through December 31, 2015                                                                                                                       10,000    89.98
(1)                                                  EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for additional six-month periods. Options covering a notional volume of 37,000 Bbld are exercisable on June 30, 2015. If the counterparties exercise all such options, the notional volume of EOG’s existing crude oil derivative contracts will increase by 37,000 Bbld at an average price of $91.56 per barrel for each month during the period July 1, 2015 through December 31, 2015.
NATURAL GAS DERIVATIVE CONTRACTS
                                                                                                                                                                       Weighted
                                                                                                                                                             Volume    Average Price
                                                                                                                                                             (MMBtud)  ($/MMBtu)
2015(2)
January 1, 2015 through February 28, 2015 (closed)                                                                                                           235,000   $             4.47
March 2015                                                                                                                                                   225,000   4.48
April 2015                                                                                                                                                   195,000   4.49
May 1, 2015 through December 31, 2015                                                                                                                        175,000   4.51
(2) EOG has entered into natural gas derivative contracts which give counterparties the 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 175,000 MMBtud at an average price of $4.51 per MMBtu for each month during the period March 1, 2015 through December 31, 2015.
$/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.
DIRECT AFTER-TAX RATE OF RETURN (ATROR)
The calculation of our direct after-tax rate of return (ATROR) with respect to our capital expenditure program for a particular play or well is based on the estimated proved reserves ("net" to EOG’s interest) for all wells in such play or such well (as the case may be), the estimated present value of the future net cash flows from such reserves (for which we utilize certain assumptions regarding future commodity prices and operating costs) and our direct net costs incurred in drilling or acquiring (as the case may be) such wells or well (as the case may be).  As such, our direct ATROR with respect to our capital expenditures for a particular play or well cannot be calculated from our consolidated financial statements.
Direct ATROR
Based on Cash Flow and Time Value of Money
- Estimated future commodity prices and operating costs
- Costs incurred to drill and complete a well, including facilities
Excludes Indirect Capital
- Gathering and Processing and other Midstream
- Land, Seismic, Geological and Geophysical
Payback  12 Months on 100% Direct ATROR Wells
First Five Years  1/2 EUR Produced but  3/4 of NPV Captured
ATROR of Drilling Program Has Been Rising
Return on Equity / Return on Capital Employed
Based on GAAP Accrual Accounting
Includes All Indirect Capital and Growth Capital for Infrastructure
- Eagle Ford, Bakken, Permian Facilities
- Gathering and Processing
Includes Legacy Gas Capital and Capital from Mature Wells
Has Been Increasing Due to Increasing Direct ATROR of Drilling Program
EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF AFTER-TAX INTEREST EXPENSE, NET (NON-GAAP), ADJUSTED NET INCOME
(NON-GAAP), NET DEBT (NON-GAAP) AND TOTAL CAPITALIZATION (NON-GAAP) AS USED IN THE CALCULATIONS OF RETURN ON CAPITAL EMPLOYED (NON-GAAP) AND RETURN ON EQUITY (NON-GAAP) TO INTEREST EXPENSE, NET (GAAP), NET INCOME (GAAP), CURRENT AND LONG-TERM DEBT (GAAP) AND TOTAL CAPITALIZATION (GAAP), RESPECTIVELY
(Unaudited; in millions, except ratio data)
The following chart reconciles Interest Expense, Net (GAAP), Net Income (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Interest Expense, Net (Non-GAAP), Adjusted Net Income (Non-GAAP), Net Debt (Non-GAAP) and Total Capitalization (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) and Return on Equity (ROE) calculations.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Interest Expense, Net, Adjusted Net Income, Net Debt and Total Capitalization (Non-GAAP) in their ROCE and ROE calculations.  EOG management uses this information for comparative purposes within the industry.
                                                                                                2014        2013        2012
Return on Capital Employed (ROCE) (Non-GAAP)
Interest Expense, Net (GAAP)                                                                  $ 201       $ 235
Tax Benefit Imputed (based on 35%)                                                              (70)        (82)
After-Tax Interest Expense, Net (Non-GAAP) - (a)                                              $ 131       $ 153
Net Income (GAAP) - (b)                                                                       $ 2,915     $ 2,197
Add: After-Tax Mark-to-Market Commodity Derivative Contracts Impact                             (515)       182
Add: Impairments of Certain Assets, Net of Tax                                                  553         4
Add: Tax Expense Related to the Repatriation of Accumulated Foreign Earnings in Future Years
                                                                                                250         -
Less: Net Gains on Asset Dispositions, Net of Tax                                               (487)       (137)
Adjusted Net Income (Non-GAAP) - (c)                                                          $ 2,716     $ 2,246
Total Stockholders’ Equity - (d)                                                              $ 17,713    $ 15,418    $ 13,285
Average Total Stockholders’ Equity * - (e)                                                    $ 16,566    $ 14,352
Current and Long-Term Debt (GAAP) - (f)                                                       $ 5,910     $ 5,913     $ 6,312
Less: Cash                                                                                      (2,087)     (1,318)     (876)
Net Debt (Non-GAAP) - (g)                                                                     $ 3,823     $ 4,595     $ 5,436
Total Capitalization (GAAP) - (d) + (f)                                                       $ 23,623    $ 21,331    $ 19,597
Total Capitalization (Non-GAAP) - (d) + (g)                                                   $ 21,536    $ 20,013    $ 18,721
Average Total Capitalization (Non-GAAP) * - (h)                                               $ 20,775    $ 19,367
ROCE (GAAP Net Income) - [(a) + (b)] / (h)                                                      14.7    %   12.1    %
ROCE (Non-GAAP Adjusted Net Income) - [(a) + (c)] / (h)                                         13.7    %   12.4    %
Return on Equity (ROE) (Non-GAAP)
ROE (GAAP Net Income) - (b) / (e)                                                               17.6    %   15.3    %
ROE (Non-GAAP Adjusted Net Income) - (c) / (e)                                                  16.4    %   15.6    %
* Average for the current and immediately preceding year
EOG RESOURCES, INC.
FIRST QUARTER AND FULL YEAR 2015 FORECAST AND BENCHMARK COMMODITY PRICING
                                         (a)  First Quarter and Full Year 2015 Forecast
The forecast items for the first quarter and full year 2015 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 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 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)
                                                                                                                                                                           1Q 2015                                                   Full Year 2015
Daily Production
                                         Crude Oil and Condensate Volumes (MBbld)
                                                                                  United States                                                                            287.0                                    -     297.0      264.0                                    -     293.0
                                                                                  Trinidad                                                                                 0.5                                      -     0.9        0.7                                      -     0.9
                                                                                  Other International                                                                      0.1                                      -     0.3        6.0                                      -     11.0
                                                                                                                           Total                                           287.6                                    -     298.2      270.7                                    -     304.9
                                         Natural Gas Liquids Volumes (MBbld)
                                                                                                                           Total                                           75.0                                     -     83.0       68.0                                     -     88.0
                                         Natural Gas Volumes (MMcfd)
                                                                                  United States                                                                            880                                      -     910        850                                      -     890
                                                                                  Trinidad                                                                                 330                                      -     360        330                                      -     360
                                                                                  Other International                                                                      24                                       -     30         27                                       -     33
                                                                                                                           Total                                           1,234                                    -     1,300      1,207                                    -     1,283
                                         Crude Oil Equivalent Volumes (MBoed)
                                                                                  United States                                                                            508.7                                    -     531.7      473.7                                    -     529.3
                                                                                  Trinidad                                                                                 55.5                                     -     60.9       55.7                                     -     60.9
                                                                                  Other International                                                                      4.1                                      -     5.3        10.5                                     -     16.5
                                                                                                                           Total                                           568.3                                    -     597.9      539.9                                    -     606.7
Operating Costs
                                         Unit Costs ($/Boe)
                                                                                  Lease and Well                                                                         $ 6.35                                     -   $ 6.65     $ 6.35                                     -   $ 6.85
                                                                                  Transportation Costs                                                                   $ 4.60                                     -   $ 4.90     $ 4.60                                     -   $ 5.00
                                                                                  Depreciation, Depletion and Amortization                                               $ 17.35                                    -   $ 17.75    $ 17.70                                    -   $ 18.30
Expenses ($MM)
                                         Exploration, Dry Hole and Impairment                                                                                            $ 130                                      -   $ 150      $ 525                                      -   $ 575
                                         General and Administrative                                                                                                      $ 90                                       -   $ 100      $ 375                                      -   $ 400
                                         Gathering and Processing                                                                                                        $ 40                                       -   $ 46       $ 155                                      -   $ 185
                                         Capitalized Interest                                                                                                            $ 14                                       -   $ 15       $ 55                                       -   $ 60
                                         Net Interest                                                                                                                    $ 49                                       -   $ 50       $ 200                                      -   $ 205
Taxes Other Than Income (% of Wellhead Revenue)                                                                                                                            6.5                                      % -   7.0    %   6.3                                      % -   6.9                                                                                                                                                                                                                                                                                                                                                                                      %
Income Taxes
                                         Effective Rate                                                                                                                    22                                       % -   27     %   23                                       % -   28                                                                                                                                                                                                                                                                                                                                                                                       %
                                         Current Taxes ($MM)                                                                                                             $ 30                                       -   $ 45       $ 140                                      -   $ 160
Capital Expenditures ($MM) - (Excluding Acquisitions)
                                         Exploration and Development, Excluding Facilities                                                                                                                                         $ 3,950                                    -   $ 4,050
                                         Exploration and Development Facilities                                                                                                                                                    $ 580                                      -   $ 620
                                         Gathering, Processing and Other                                                                                                                                                           $ 370                                      -   $ 430
Pricing - (Refer to Benchmark Commodity Pricing in text)
                                         Crude Oil and Condensate ($/Bbl)
                                                                                  Differentials
                                                                                                                           United States - above (below) WTI             $ (1.60)                                   -   $ 0.00     $ (2.00)                                   -   $ 0.00
                                                                                                                           Trinidad - above (below) WTI                  $ (10.50)                                  -   $ (9.50)   $ (12.00)                                  -   $ (8.00)
                                         Natural Gas Liquids
                                                                                  Realizations as % of WTI                                                                 31                                       % -   35     %   30                                       % -   36                                                                                                                                                                                                                                                                                                                                                                                       %
                                         Natural Gas ($/Mcf)
                                                                                  Differentials
                                                                                                                           United States - above (below) NYMEX Henry Hub $ (0.80)                                   -   $ (0.35)   $ (0.85)                                   -   $ (0.35)
                                                                                  Realizations
                                                                                                                           Trinidad                                      $ 2.80                                     -   $ 3.60     $ 2.80                                     -   $ 3.60
                                                                                                                           Other International                           $ 3.15                                     -   $ 3.75     $ 3.25                                     -   $ 3.85
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

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/eog-resources-reports-fourth-quarter-and-full-year-2014-results-and-announces-return-driven-capital-program-for-2015-300038131.html

SOURCE EOG Resources, Inc.

http://rt.prnewswire.com/rt.gif?NewsItemId=DA33935&Transmission_Id=201502181709PR_NEWS_USPR_____DA33935&DateId=20150218



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