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EOG Resources, Inc.$98.55($1.09)(1.09%)

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 EOG Resources Reports Fourth Quarter and Full Year 2015 Results and Announces 2016 Capital Program Focused on Premium Drilling Inventory
   Thursday, February 25, 2016 4:16:00 PM ET

-- Exceeds Fourth Quarter and Full Year 2015 Production Targets

-- Achieves Record Year for Improved Well Productivity and Efficiency Gains

-- Reduces Fourth Quarter Per-Unit Lease and Well Expenses by 30 Percent Versus Prior Year

-- Replaces 192 Percent of 2015 Production, Excluding Price Revisions

-- Announces Disciplined 2016 Capital Plan and Operations Strategy

-- Defines More Than 2.0 BnBoe and 10 Years of Premium Drilling Inventory

EOG Resources, Inc. (EOG ) (EOG) today reported a fourth quarter 2015 net loss of $284.3 million, or $0.52 per share. This compares to fourth quarter 2014 net income of $444.6 million, or $0.81 per share. For the full year 2015, EOG reported a net loss of $4.5 billion, or $8.29 per share, compared to net income of $2.9 billion, or $5.32 per share, for the full year 2014.

Adjusted non-GAAP net loss for the fourth quarter 2015 was $149.5 million, or $0.27 per share, compared to adjusted non-GAAP net income of $431.9 million, or $0.79 per share, for the same prior year period. Adjusted non-GAAP net income for the full year 2015 was $33.9 million, or $0.06 per share, compared to non-GAAP net income of $2.7 billion, or $4.95 per share, for the full year 2014. Adjusted non-GAAP net income (loss) 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 measures.)

Significant reductions in operating expenses were more than offset by lower commodity prices, resulting in decreases to adjusted non-GAAP net income, discretionary cash flow and EBITDAX during the fourth quarter and full year 2015 compared to the same periods in 2014. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.)

"EOG’s performance was resilient in 2015 as oil and natural gas prices declined sharply," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "We achieved significant reductions in our finding and operating costs and substantially increased the size and the quality of our inventory, which further enhances our unique ability to create long-term shareholder value."

Operational Highlights

For the full year 2015, while exploration and development expenditures (excluding acquisitions) decreased 42 percent, U.S. crude oil and condensate production remained flat, and overall total company production decreased just 4 percent compared to 2014. Total worldwide liquids production decreased 2 percent, and total worldwide natural gas production decreased 7 percent versus the prior year.

EOG restrained capital expenditures in the fourth quarter 2015 in response to the lower commodity price environment. Total exploration and development expenditures decreased 56 percent compared to the same prior year period. EOG’s U.S. crude oil and condensate production and total overall company production both decreased by 7 percent in the fourth quarter of 2015 compared to the same prior year period.

EOG continued to enhance operating efficiencies and leverage prior investments in infrastructure, resulting in cost reductions across its operations. During the fourth quarter of 2015, lease and well expenses decreased 30 percent and transportation costs decreased 8 percent compared to the same prior year period, both on a per-unit basis. Total general and administrative expenses decreased 17 percent compared to the fourth quarter 2014.

"EOG remained focused on returns and capital discipline in 2015," Thomas said. "Our team raised the bar with record-setting operational achievements, technical advances and organic growth additions. These sustainable improvements uniquely position EOG for long-term success in any commodity price environment."

2016 Capital Plan

EOG’s 2016 plan is designed to maximize returns, maintain the strong balance sheet and continue to achieve record-setting cost reduction and productivity gains.

Capital expenditures for 2016 are expected to range from $2.4 to $2.6 billion, including production facilities and gathering, processing and other expenditures, and excluding acquisitions. EOG expects to complete approximately 270 net wells in 2016, compared to 470 net wells in 2015, with total company crude oil production expected to decline only 5 percent versus 2015. This 45 to 50 percent year-over-year reduction to capital expenditures reflects the current commodity price environment and further demonstrates EOG’s commitment to maintaining a strong balance sheet with disciplined capital spending.

The company is shifting its focus to premium drilling and completions in 2016. Driven by continued efficiencies, technical advancements and geoscience breakthroughs, the company has identified over 3,200 premium drilling locations capable of delivering solid rates of return at low commodity prices. Premium drilling is a step change to EOG’s long-term strategy that will enable it to expand its leadership in investment returns and well performance. The company is now positioned to return to high investment rates of return as oil prices experience even a modest recovery.

"EOG has now identified more than 2 billion barrels of oil equivalent (BnBoe) of estimated net resource potential and a decade of premium drilling inventory that can earn superior returns in a low commodity price environment," Thomas said. "Breakthroughs of this magnitude are unique and will enable EOG to extend its lead as the low-cost U.S. horizontal oil producer. We are confident our organic growth machine will continue to increase both the size and quality of our premium drilling inventory and allow EOG to enjoy a strong competitive advantage in the world oil market."

South Texas Eagle Ford

The South Texas Eagle Ford continues to showcase EOG’s technological advances in lateral placement and completion design. During 2015, the company expanded the use of precision lateral targeting and high-density completions across the Eagle Ford. EOG’s other plays benefit from these industry-leading breakthroughs by quickly adapting these new technologies to each unique environment.

During the fourth quarter of 2015, the Eagle Ford once again delivered outstanding well performance across the play. In the eastern Eagle Ford in Karnes County, the Lightfoot Unit 5H through 8H four-well pattern had average 30-day initial production rates per well of 2,425 barrels of oil per day (Bopd), 285 barrels per day (Bpd) of natural gas liquids (NGLs) and 1.9 million cubic feet per day (MMcfd) of natural gas. In Gonzales County, the Lepori Unit 4H had 30-day initial production rates of 2,915 Bopd, 370 Bpd of NGLs and 2.4 MMcfd of natural gas. In the western Eagle Ford in McMullen County, the Naylor Jones Unit 31-1H had 30-day initial production rates of 1,780 Bopd, 165 Bpd of NGLs and 1.1 MMcfd of natural gas.

In 2016, EOG plans to complete approximately 150 net wells in the Eagle Ford, compared to 329 net wells completed in 2015.

Delaware Basin

2015 was an important year for EOG in the Delaware Basin where EOG increased its estimated net resource potential by 1.0 BnBoe. With approximately 2.35 BnBoe in total estimated net resource potential, EOG possesses a premier position in the Permian’s best horizontal oil basin. EOG made significant advances in the basin in 2015 by expanding its technical understanding and improving returns by increasing well productivity and reducing costs.

In the Delaware Basin Wolfcamp, EOG completed a dozen wells in the fourth quarter 2015 with average 30-day initial production rates per well of 1,495 Bopd, 300 Bpd of NGLs and 2.5 MMcfd of natural gas.

EOG’s 2016 plans for the Delaware Basin include completing approximately 75 net wells versus 74 net wells completed in 2015.

North Dakota Bakken and Rockies

EOG continues to advance its high-potential Rockies oil plays. In 2015, EOG added 600 million barrels of oil equivalent (MMBoe) to its Bakken net resource potential estimate, bringing EOG’s total net resource potential estimate to approximately 1.0 BnBoe. EOG has decades of drilling inventory in this world-class oil basin.

During 2015, EOG continued to delineate its Powder River Basin and DJ Basin oil plays. In the fourth quarter 2015, EOG completed several wells in the Powder River Basin Turner oil play. The Blade 202-2116H and the Flatbow 602-1621H had 30-day initial production rates of 1,300 Bopd, 120 Bpd of NGLs and 1.4 MMcfd of natural gas, and 1,280 Bopd, 145 Bpd of NGLs and 1.7 MMcfd of natural gas, respectively.

In 2016, EOG plans to complete approximately 35 net wells in these plays, compared to 48 net wells in 2015.

Reserves

At year-end, total company net proved reserves were 2,118 MMBoe, comprised of 52 percent crude oil and condensate, 18 percent NGLs and 30 percent natural gas. Net proved reserve additions, excluding revisions due to price, replaced 192 percent of EOG’s 2015 production at a finding and development cost of $11.91 per barrel of oil equivalent. Revisions due to price reduced net proved reserves by 574 MMBoe. Driven by declines in commodity prices, total company net proved reserves decreased 15 percent in 2015. (For more reserves detail, including calculation of reserve replacement ratios and reserve replacement costs, please refer to the attached tables.)

For the 28th consecutive year, internal reserve estimates were within 5 percent of estimates independently prepared by DeGolyer and MacNaughton.

Hedging Activity

For the period March 1 through August 31, 2016, EOG has natural gas financial price swap contracts in place for 60,000 million British thermal units (MMBtu) per day at a weighted average price of $2.49 per MMBtu. EOG has no crude oil financial price contracts in place. A comprehensive summary of natural gas derivative contracts is provided in the attached tables.

Capital Structure

At December 31, 2015, EOG’s total debt outstanding was $6.7 billion with a debt-to-total capitalization ratio of 34 percent. Taking into account cash on the balance sheet of $719 million at year-end, EOG’s net debt was $5.9 billion with a net debt-to-total capitalization ratio of 31 percent. A reconciliation of non-GAAP measures to GAAP measures is provided in the attached tables.

Dividend

The board of directors declared a dividend of $0.1675 per share on EOG’s Common Stock, payable April 29, 2016, to stockholders of record as of April 15, 2016. The indicated annual rate is $0.67 per share.

Conference Call February 26, 2016

EOG’s fourth quarter 2015 results conference call will be available via live audio webcast at 9 a.m. Central time (10 a.m. Eastern time) on Friday, February 26, 2016. To listen, log on to www.eogresources.com. The webcast will be archived on EOG’s website through March 11, 2016.

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

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG’s future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs, statements regarding future commodity prices and statements regarding the plans and objectives of EOG’s management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG’s future operating results and returns or EOG’s ability to replace or increase reserves, increase production, reduce or otherwise control operating and capital costs, 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, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;

-- the extent to which EOG is successful in its efforts to acquire or discover additional reserves;

-- the extent to which EOG is successful in its efforts to economically develop its acreage in, produce reserves and achieve anticipated production levels from, and maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects;

-- the extent to which EOG is successful in its efforts to market its crude oil and condensate, natural gas liquids, natural gas and related commodity production;

-- the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, 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 the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;

-- the availability and cost of employees and other personnel, facilities, equipment, materials (such as water) and 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 21 of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and any updates to those factors set forth in EOG’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

In light of these risks, uncertainties and assumptions, the events anticipated by EOG’s forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration and 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, 2015, 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,
                                                       2015            2014            2015              2014
Net Operating Revenues                                 $    1,796.8    $    4,645.5    $    8,757.4      $    18,035.3
Net Income (Loss)                                      $    (284.3)    $    444.6      $    (4,524.5)    $    2,915.5
Net Income (Loss) Per Share
Basic                                                  $    (0.52)     $    0.82       $    (8.29)       $    5.36
Diluted                                                $    (0.52)     $    0.81       $    (8.29)       $    5.32
Average Number of Common Shares
Basic                                                       546.4           544.6           545.7             543.4
Diluted                                                     546.4           549.2           545.7             548.5
Summary Income Statements
(Unaudited; in thousands, except per share data)
                                                       Three Months Ended              Twelve Months Ended
                                                       December 31,                    December 31,
                                                       2015            2014            2015              2014
Net Operating Revenues
Crude Oil and Condensate                               $    1,040,470  $    2,054,901  $    4,934,562    $    9,742,480
Natural Gas Liquids                                         96,521          180,916         407,658           934,051
Natural Gas                                                 217,381         407,494         1,061,038         1,916,386
Gains on Mark-to-Market Commodity                           4,970           750,154         61,924            834,273
Derivative Contracts
Gathering, Processing and Marketing                         432,292         806,177         2,253,135         4,046,316
Gains (Losses) on Asset Dispositions, Net                   (3,656)         431,890         (8,798)           507,590
Other, Net                                                  8,783           13,965          47,909            54,244
Total                                                       1,796,761       4,645,497       8,757,428         18,035,340
Operating Expenses
Lease and Well                                              247,916         380,781         1,182,282         1,416,413
Transportation Costs                                        207,580         242,293         849,319           972,176
Gathering and Processing Costs                              39,653          37,785          146,156           145,800
Exploration Costs                                           34,946          45,167          149,494           184,388
Dry Hole Costs                                              429             18,225          14,746            48,490
Impairments                                                 168,171         535,637         6,613,546         743,575
Marketing Costs                                             461,848         862,589         2,385,982         4,126,060
Depreciation, Depletion and Amortization                    769,457         1,013,930       3,313,644         3,997,041
General and Administrative                                  109,014         131,285         366,594           402,010
Taxes Other Than Income                                     87,500          151,153         421,744           757,564
Total                                                       2,126,514       3,418,845       15,443,507        12,793,517
Operating Income (Loss)                                     (329,753)       1,226,652       (6,686,079)       5,241,823
Other Income (Expense), Net                                 (6,080)         (28,324)        1,916             (45,050)
Income (Loss) Before Interest Expense and Income Taxes      (335,833)       1,198,328       (6,684,163)       5,196,773
Interest Expense, Net                                       62,993          49,735          237,393           201,458
Income (Loss) Before Income Taxes                           (398,826)       1,148,593       (6,921,556)       4,995,315
Income Tax Provision (Benefit)                              (114,530)       704,005         (2,397,041)       2,079,828
Net Income (Loss)                                      $    (284,296)  $    444,588    $    (4,524,515)  $    2,915,487
Dividends Declared per Common Share                    $    0.1675     $    0.1675     $    0.6700       $    0.5850
EOG RESOURCES, INC.
Operating Highlights
(Unaudited)
                                                       Three Months Ended              Twelve Months Ended
                                                       December 31,                    December 31,
                                                       2015            2014            2015              2014
Wellhead Volumes and Prices
Crude Oil and Condensate Volumes (MBbld) (A)
United States                                               279.9           301.5           283.3             282.0
Trinidad                                                    0.9             0.9             0.9               1.0
Other International (B)                                     0.2             5.3             0.2               5.9
Total                                                       281.0           307.7           284.4             288.9
Average Crude Oil and Condensate Prices ($/Bbl) (C)
United States                                          $    40.34      $    72.76      $    47.55        $    92.73
Trinidad                                                    32.38           63.65           39.51             84.63
Other International (B)                                     53.28           72.91           57.32             86.75
Composite                                                   40.32           72.74           47.53             92.58
Natural Gas Liquids Volumes (MBbld) (A)
United States                                               79.1            83.1            76.9              79.7
Other International (B)                                     -               0.5             0.1               0.6
Total                                                       79.1            83.6            77.0              80.3
Average Natural Gas Liquids Prices ($/Bbl) (C)
United States                                          $    13.25      $    23.48      $    14.50        $    31.84
Other International (B)                                     -               31.42           4.61              40.73
Composite                                                   13.25           23.53           14.49             31.91
Natural Gas Volumes (MMcfd) (A)
United States                                               860             921             886               920
Trinidad                                                    370             329             349               363
Other International (B)                                     27              60              30                70
Total                                                       1,257           1,310           1,265             1,353
Average Natural Gas Prices ($/Mcf) (C)
United States                                          $    1.44       $    3.21       $    1.97         $    3.93
Trinidad                                                    2.57            3.77            2.89              3.65
Other International (B)                                     6.51            3.85            5.05              4.40
Composite                                                   1.88            3.38            2.30              3.88
Crude Oil Equivalent Volumes (MBoed) (D)
United States                                               502.2           538.3           507.9             515.0
Trinidad                                                    62.7            55.7            59.1              61.5
Other International (B)                                     4.6             15.6            5.2               18.2
Total                                                       569.5           609.6           572.2             594.7
Total MMBoe (D)                                             52.4            56.1            208.9             217.1
(A) Thousand barrels per day or million cubic feet per day, as applicable.
(B) Other International includes EOG’s United Kingdom, China, Canada 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 and natural gas.  Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or natural gas liquids to 6.0 thousand cubic feet of natural gas.  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,
                                                                                  2015                  2014
ASSETS
Current Assets
Cash and Cash Equivalents                                                         $       718,506       $       2,087,213
Accounts Receivable, Net                                                                  930,610               1,779,311
Inventories                                                                               598,935               706,597
Assets from Price Risk Management Activities                                              -                     465,128
Income Taxes Receivable                                                                   40,704                71,621
Deferred Income Taxes                                                                     147,812               19,618
Other                                                                                     155,677               286,533
Total                                                                                     2,592,244             5,416,021
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method)                                        50,613,241            46,503,532
Other Property, Plant and Equipment                                                       3,986,610             3,750,958
Total Property, Plant and Equipment                                                       54,599,851            50,254,490
Less:  Accumulated Depreciation, Depletion and Amortization                               (30,389,130)          (21,081,846)
Total Property, Plant and Equipment, Net                                                  24,210,721            29,172,644
Other Assets                                                                              172,279               174,022
Total Assets                                                                      $       26,975,244    $       34,762,687
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts Payable                                                                  $       1,471,953     $       2,860,548
Accrued Taxes Payable                                                                     93,618                140,098
Dividends Payable                                                                         91,546                91,594
Deferred Income Taxes                                                                     -                     110,743
Current Portion of Long-Term Debt                                                         6,579                 6,579
Other                                                                                     155,591               174,746
Total                                                                                     1,819,287             3,384,308
Long-Term Debt                                                                            6,653,685             5,903,354
Other Liabilities                                                                         971,335               939,497
Deferred Income Taxes                                                                     4,587,902             6,822,946
Commitments and Contingencies
Stockholders’ Equity
Common Stock, $0.01 Par, 640,000,000 Shares Authorized and                                205,502               205,492
550,150,823Shares and 549,028,374 Shares Issued at December 31,
2015 and 2014, respectively
Additional Paid in Capital                                                                2,923,461             2,837,150
Accumulated Other Comprehensive Loss                                                      (33,338)              (23,056)
Retained Earnings                                                                         9,870,816             14,763,098
Common Stock Held in Treasury, 292,179 Shares and 733,517 Shares at                       (23,406)              (70,102)
December 31, 2015 and 2014, respectively
Total Stockholders’ Equity                                                                12,943,035            17,712,582
Total Liabilities and Stockholders’ Equity                                        $       26,975,244    $       34,762,687
EOG RESOURCES, INC.
Summary Statements of Cash Flows
(Unaudited; in thousands)
                                                                                  Twelve Months Ended
                                                                                  December 31,
                                                                                  2015                  2014
Cash Flows from Operating Activities
Reconciliation of Net Income (Loss) to Net Cash Provided by Operating Activities:
Net Income (Loss)                                                                 $       (4,524,515)   $       2,915,487
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization                                                  3,313,644             3,997,041
Impairments                                                                               6,613,546             743,575
Stock-Based Compensation Expenses                                                         130,577               145,086
Deferred Income Taxes                                                                     (2,482,307)           1,704,946
(Gains) Losses on Asset Dispositions, Net                                                 8,798                 (507,590)
Other, Net                                                                                11,896                48,138
Dry Hole Costs                                                                            14,746                48,490
Mark-to-Market Commodity Derivative Contracts
Total Gains                                                                               (61,924)              (834,273)
Net Cash Received from Settlements of Commodity Derivative Contracts                      730,114               34,007
Excess Tax Benefits from Stock-Based Compensation                                         (26,058)              (99,459)
Other, Net                                                                                12,532                13,009
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable                                                                       641,412               84,982
Inventories                                                                               58,450                (161,958)
Accounts Payable                                                                          (1,409,197)           543,630
Accrued Taxes Payable                                                                     11,798                16,486
Other Assets                                                                              118,143               (14,448)
Other Liabilities                                                                         (66,257)              75,420
Changes in Components of Working Capital Associated with Investing and Financing          499,767               (103,414)
Activities
Net Cash Provided by Operating Activities                                                 3,595,165             8,649,155
Investing Cash Flows
Additions to Oil and Gas Properties                                                       (4,725,150)           (7,519,667)
Additions to Other Property, Plant and Equipment                                          (288,013)             (727,138)
Proceeds from Sales of Assets                                                             192,807               569,332
Changes in Restricted Cash                                                                -                     60,385
Changes in Components of Working Capital Associated with Investing Activities             (499,900)             103,523
Net Cash Used in Investing Activities                                                     (5,320,256)           (7,513,565)
Financing Cash Flows
Net Commercial Paper Borrowings                                                           259,718               -
Long-Term Debt Borrowings                                                                 990,225               496,220
Long-Term Debt Repayments                                                                 (500,000)             (500,000)
Settlement of Foreign Currency Swap                                                       -                     (31,573)
Dividends Paid                                                                            (367,005)             (279,695)
Excess Tax Benefits from Stock-Based Compensation                                         26,058                99,459
Treasury Stock Purchased                                                                  (48,791)              (127,424)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan                    22,690                22,249
Debt Issuance Costs                                                                       (5,951)               (895)
Repayment of Capital Lease Obligation                                                     (6,156)               (5,966)
Other, Net                                                                                133                   (109)
Net Cash Provided by (Used in) Financing Activities                                       370,921               (327,734)
Effect of Exchange Rate Changes on Cash                                                   (14,537)              (38,852)
Increase (Decrease) in Cash and Cash Equivalents                                          (1,368,707)           769,004
Cash and Cash Equivalents at Beginning of Period                                          2,087,213             1,318,209
Cash and Cash Equivalents at End of Period                                        $       718,506       $       2,087,213
EOG RESOURCES, INC.
Quantitative Reconciliation of Adjusted Net Income (Loss) (Non-GAAP)
to Net Income (Loss) (GAAP)
(Unaudited; in thousands, except per share data)
The following chart adjusts the three-month and twelve-month periods ended December 31, 2015 and 2014 reported Net Income (Loss) (GAAP) to reflect actual net cash received from settlements of commodity derivative contracts by eliminating the unrealized mark-to-market gains from these transactions, to eliminate the net (gains) losses on asset dispositions, to eliminate the impact of the Texas margin tax rate reduction in 2015, to add back impairment charges related to certain of EOG’s assets, to add back an early leasehold termination payment as the result of a legal settlement in 2015, to add back severance costs associated with EOG’s North American operations in 2015 and to add back the tax expense related to the anticipated repatriation of accumulated foreign earnings in future years in 2014.  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,
                                                                                                 2015                           2014            2015                              2014
Reported Net Income (Loss) (GAAP)                                                                $                  (284,296)   $    444,588    $                   (4,524,515)   $    2,915,487
Commodity Derivative Contracts Impact
Gains on Mark-to-Market Commodity Derivative Contracts                                                              (4,970)          (750,154)                      (61,924)           (834,273)
Net Cash Received from Settlements of Commodity                                                                     69,093           222,944                        730,114            34,007
Derivative Contracts
Subtotal                                                                                                            64,123           (527,210)                      668,190            (800,266)
After-Tax MTM Impact                                                                                                41,263           (339,792)                      429,980            (514,971)
Less: Net (Gains) Losses on Asset Dispositions, Net of Tax                                                          2,921            (439,834)                      4,615              (487,260)
Less: Texas Margin Tax Rate Reduction                                                                               -                -                              (19,500)           -
Add:  Impairments of Certain Assets, Net of Tax                                                                     78,149           517,041                        4,125,372          553,099
Add:  Legal Settlement - Early Leasehold Termination, Net of Tax                                                    12,455           -                              12,455             -
Add:  Severance Costs, Net of Tax                                                                                   -                -                              5,473              -
Add: Tax Expense Related to the Repatriation of Accumulated
Foreign Earnings in Future Years                                                                                    -                249,861                        -                  249,861
Adjusted Net Income (Loss) (Non-GAAP)                                                            $                  (149,508)   $    431,864    $                   33,880        $    2,716,216
Net Income (Loss) Per Share (GAAP)
Basic                                                                                            $                  (0.52)      $    0.82       $                   (8.29)        $    5.36
Diluted                                                                                          $                  (0.52)      $    0.81       $                   (8.29)        $    5.32
Adjusted Net Income (Loss) Per Share (Non-GAAP)
Basic                                                                                            $                  (0.27)      $    0.79       $                   0.06          $    5.00
Diluted                                                                                          $                  (0.27)      $    0.79       $                   0.06          $    4.95
Adjusted Net Income (Loss) Per Diluted Share (Non-GAAP) -                                                           -134      %                                     -99         %
Percentage Decrease
Average Number of Common Shares (GAAP)
Basic                                                                                                               546,432          544,579                        545,697            543,443
Diluted                                                                                                             546,432          549,153                        545,697            548,539
Average Number of Common Shares (Non-GAAP)
Basic                                                                                                               546,432          544,579                        545,697            543,443
Diluted                                                                                                             546,432          549,153                        549,610            548,539
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, 2015 and 2014 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,
                                                                 2015                                                                 2014            2015                                                                 2014
Net Cash Provided by Operating Activities (GAAP)                 $                                                        615,813     $    2,110,438  $                                                        3,595,165   $    8,649,155
Adjustments:
Exploration Costs (excluding Stock-Based Compensation Expenses)                                                           28,758           38,450                                                              124,011          157,453
Excess Tax Benefits from Stock-Based Compensation                                                                         1,839            11,632                                                              26,058           99,459
Changes in Components of Working Capital and Other Assets
and Liabilities
Accounts Receivable                                                                                                       (193,101)        (426,025)                                                           (641,412)        (84,982)
Inventories                                                                                                               (31,443)         42,792                                                              (58,450)         161,958
Accounts Payable                                                                                                          98,986           23,123                                                              1,409,197        (543,630)
Accrued Taxes Payable                                                                                                     65,777           159,926                                                             (11,798)         (16,486)
Other Assets                                                                                                              28,822           (47,518)                                                            (118,143)        14,448
Other Liabilities                                                                                                         50,574           (8,802)                                                             66,257           (75,420)
Changes in Components of Working Capital Associated with
Investing and Financing Activities                                                                                        19,436           (5,154)                                                             (499,767)        103,414
Discretionary Cash Flow (Non-GAAP)                               $                                                        685,461     $    1,898,862  $                                                        3,891,118   $    8,465,369
Discretionary Cash Flow (Non-GAAP) - Percentage Decrease                                                                  -64       %                                                                          -54       %
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 (Loss) Before Interest Expense and Income Taxes (GAAP)
(Unaudited; in thousands)
The following chart adjusts the three-month and twelve-month periods ended December 31, 2015 and 2014 reported Income (Loss) 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 settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (MTM) gains from these transactions and to eliminate the net (gains) losses on asset dispositions.  EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Income (Loss) 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,
                                                                                               2015                           2014            2015                                                                                                         2014
Income (Loss) Before Interest Expense and Income Taxes (GAAP)                                  $                  (335,833)   $    1,198,328  $                                                                                              (6,684,163)   $    5,196,773
Adjustments:
Depreciation, Depletion and Amortization                                                                          769,457          1,013,930                                                                                                 3,313,644          3,997,041
Exploration Costs                                                                                                 34,946           45,167                                                                                                    149,494            184,388
Dry Hole Costs                                                                                                    429              18,225                                                                                                    14,746             48,490
Impairments                                                                                                       168,171          535,637                                                                                                   6,613,546          743,575
EBITDAX (Non-GAAP)                                                                                                637,170          2,811,287                                                                                                 3,407,267          10,170,267
Total Gains on MTM Commodity Derivative Contracts                                                                 (4,970)          (750,154)                                                                                                 (61,924)           (834,273)
Net Cash Received from Settlements of Commodity                                                                   69,093           222,944                                                                                                   730,114            34,007
Derivative Contracts
(Gains) Losses on Asset Dispositions, Net                                                                         3,656            (431,890)                                                                                                 8,798              (507,590)
Adjusted EBITDAX (Non-GAAP)                                                                    $                  704,949     $    1,852,187  $                                                                                              4,084,255     $    8,862,411
Adjusted EBITDAX (Non-GAAP) - Percentage Decrease                                                                 -62       %                                                                                                                -54         %
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,
                                                                2015            2014
Total Stockholders’ Equity - (a)                                $      12,943   $      17,713
Current and Long-Term Debt (GAAP) - (b)                                6,660           5,910
Less: Cash                                                             (719)           (2,087)
Net Debt (Non-GAAP) - (c)                                              5,941           3,823
Total Capitalization (GAAP) - (a) + (b)                         $      19,603   $      23,623
Total Capitalization (Non-GAAP) - (a) + (c)                     $      18,884   $      21,536
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]                34     %        25      %
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]        31     %        18      %
EOG RESOURCES, INC.
Reserves Supplemental Data
(Unaudited)
2015 NET PROVED RESERVES RECONCILIATION SUMMARY
                                               United                                   Other
                                               States              Trinidad             Int’l        Total
CRUDE OIL & CONDENSATE (MMBbl)
Beginning Reserves                             1,129.8             1.3                  8.7          1,139.8
Revisions                                      (115.0)             -                    -            (115.0)
Purchases in place                             35.9                -                    -            35.9
Extensions, discoveries and other additions    141.3               0.1                  -            141.4
Sales in place                                 (0.7)               -                    -            (0.7)
Production                                     (103.4)             (0.3)                (0.1)        (103.8)
Ending Reserves                                1,087.9             1.1                  8.6          1,097.6
NATURAL GAS LIQUIDS (MMBbl)
Beginning Reserves                             467.0               -                    0.1          467.1
Revisions                                      (113.3)             -                    0.1          (113.2)
Purchases in place                             8.3                 -                    -            8.3
Extensions, discoveries and other additions    49.1                -                    -            49.1
Sales in place                                 (0.1)               -                    (0.2)        (0.3)
Production                                     (28.1)              -                    -            (28.1)
Ending Reserves                                382.9               -                    -            382.9
NATURAL GAS (Bcf)
Beginning Reserves                             4,905.5             405.6                31.5         5,342.6
Revisions                                      (1,453.1)           16.8                 5.6          (1,430.7)
Purchases in place                             72.3                -                    -            72.3
Extensions, discoveries and other additions    306.3               21.7                 4.4          332.4
Sales in place                                 (3.9)               -                    (11.1)       (15.0)
Production                                     (337.3)             (127.5)              (10.9)       (475.7)
Ending Reserves                                3,489.8             316.6                19.5         3,825.9
OIL EQUIVALENTS (MMBoe)
Beginning Reserves                             2,414.2             69.0                 14.1         2,497.3
Revisions                                      (470.4)             2.8                  1.0          (466.6)
Purchases in place                             56.2                -                    -            56.2
Extensions, discoveries and other additions    241.5               3.6                  0.8          245.9
Sales in place                                 (1.5)               -                    (2.0)        (3.5)
Production                                     (187.7)             (21.6)               (1.9)        (211.2)
Ending Reserves                                2,052.3             53.8                 12.0         2,118.1
Net Proved Developed Reserves (MMBoe)
At December 31, 2014                           1,275.4             67.5                 5.0          1,347.9
At December 31, 2015                           1,018.5             50.7                 3.3          1,072.5
2015 EXPLORATION AND DEVELOPMENT EXPENDITURES ($ Millions)
                                               United                                   Other
                                               States              Trinidad             Int’l        Total
Acquisition Cost of Unproved Properties        $   133.8           $         -          $     0.1    $   133.9
Exploration Costs                              206.9               22.8                 23.0         252.7
Development Costs                              3,815.4             87.2                 105.0        4,007.6
Total Drilling                                 4,156.1             110.0                128.1        4,394.2
Acquisition Cost of Proved Properties          480.6               -                    -            480.6
Total Exploration & Development Expenditures   4,636.7             110.0                128.1        4,874.8
Gathering, Processing and Other                287.4               0.3                  0.4          288.1
Asset Retirement Costs                         32.4                15.5                 5.6          53.5
Total Expenditures                             4,956.5             125.8                134.1        5,216.4
Proceeds from Sales in Place                   (170.9)             -                    (21.9)       (192.8)
Net Expenditures                               $4,785.6            $  125.8             $  112.2     $5,023.6
RESERVE REPLACEMENT COSTS ($ / Boe) *
Total Drilling, Before Revisions               $   17.21           $  30.56             $160.13      $   17.87
All-in Total, Net of Revisions                 $  (26.85)          $  17.19             $  71.17     $  (29.63)
All-in Total, Excluding Revisions Due to Price $   11.56           $  17.19             $  71.17     $   11.91
RESERVE REPLACEMENT *
Drilling Only                                  129               % 17                %  42        %  116        %
All-in Total, Net of Revisions & Dispositions  -93               % 30                %  -11       %  -80        %
All-in Total, Excluding Revisions Due to Price 213               % 30                %  -11       %  192        %
All-in Total, Liquids                          4                 % 33                %  -100      %  4          %
*   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                    Other
                                                                                                                                                           States       Trinidad     Int’l      Total
Total Costs Incurred in Exploration and Development Activities (GAAP)                                                                                      $4,669.1     $    125.5   $  133.7   $4,928.3
Less:  Asset Retirement Costs                                                                                                                              (32.4)       (15.5)       (5.6)      (53.5)
Acquisition Cost of Proved Properties                                                                                                                      (480.6)      -            -          (480.6)
Total Exploration & Development Expenditures for Drilling Only (Non-GAAP) (a)                                                                              $4,156.1     $    110.0   $  128.1   $4,394.2
Total Costs Incurred in Exploration and Development Activities (GAAP)                                                                                      $4,669.1     $    125.5   $  133.7   $4,928.3
Less:  Asset Retirement Costs                                                                                                                              (32.4)       (15.5)       (5.6)      (53.5)
Total Exploration & Development Expenditures (Non-GAAP) (b)                                                                                                $4,636.7     $    110.0   $  128.1   $4,874.8
Total Expenditures (GAAP)                                                                                                                                  $4,956.5     $    125.8   $  134.1   $5,216.4
Less:  Asset Retirement Costs                                                                                                                              (32.4)       (15.5)       (5.6)      (53.5)
Non-Cash Acquisition Costs of Unproved Properties                                                                                                          -            -            -          -
Total Cash Expenditures (Non-GAAP)                                                                                                                         $4,924.1     $    110.3   $  128.5   $5,162.9
Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe)
Revisions due to price (c)                                                                                                                                 (573.8)      -            -          (573.8)
Revisions other than price                                                                                                                                 103.4        2.8          1.0        107.2
Purchases in place                                                                                                                                         56.2         -            -          56.2
Extensions, discoveries and other additions (d)                                                                                                            241.5        3.6          0.8        245.9
Total Proved Reserve Additions (e)                                                                                                                         (172.7)      6.4          1.8        (164.5)
Sales in place                                                                                                                                             (1.5)        -            (2.0)      (3.5)
Net Proved Reserve Additions From All Sources (f)                                                                                                          (174.2)      6.4          (0.2)      (168.0)
Production (g)                                                                                                                                             187.7        21.6         1.9        211.2
RESERVE REPLACEMENT COSTS ($ / Boe)
Total Drilling, Before Revisions (a / d)                                                                                                                   $   17.21    $    30.56   $160.13    $   17.87
All-in Total, Net of Revisions (b / e)                                                                                                                     $  (26.85)   $    17.19   $  71.17   $  (29.63)
All-in Total, Excluding Revisions Due to Price (b / (e - c))                                                                                               $   11.56    $    17.19   $  71.17   $   11.91
RESERVE REPLACEMENT
Drilling Only (d / g)                                                                                                                                      129        % 17         % 42       % 116        %
All-in Total, Net of Revisions & Dispositions (f / g)                                                                                                      -93        % 30         % -11      % -80        %
All-in Total, Excluding Revisions Due to Price ((f - c) / g)                                                                                               213        % 30         % -11      % 192        %
Net Proved Reserve Additions From All Sources - Liquids (MMBbl)
Revisions                                                                                                                                                  (228.3)      -            0.1        (228.2)
Purchases in place                                                                                                                                         44.2         -            -          44.2
Extensions, discoveries and other additions (h)                                                                                                            190.4        0.1          -          190.5
Total Proved Reserve Additions                                                                                                                             6.3          0.1          0.1        6.5
Sales in place                                                                                                                                             (0.8)        -            (0.2)      (1.0)
Net Proved Reserve Additions From All Sources (i)                                                                                                          5.5          0.1          (0.1)      5.5
Production (j)                                                                                                                                             131.5        0.3          0.1        131.9
RESERVE REPLACEMENT - LIQUIDS
Drilling Only (h / j)                                                                                                                                      145        % 33         % 0        % 144        %
All-in Total, Net of Revisions & Dispositions (i / j)                                                                                                      4          % 33         % -100     % 4          %
EOG RESOURCES, INC.
Natural Gas Financial
Commodity Derivative Contracts
Presented below is a comprehensive summary of EOG’s natural gas derivative contracts at February 25, 2016, with notional volumes expressed in MMBtud and prices expressed in $/MMBtu.  EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method.
Natural Gas Price Swap Contracts
                                                                 Weighted
                                                       Volume    Average Price
                                                       (MMBtud)  ($/MMBtu)
2016
March 1, 2016 through August 31, 2016                  60,000    $                                               2.49
$/MMBtu      Dollars per 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 net present value (NPV) 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, complete and equip 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 Estimated Ultimate Recovery Produced but  3/4 of NPV Captured
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
EOG RESOURCES, INC.
Quantitative Reconciliation of After-Tax Net Interest Expense (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 Net Interest Expense (GAAP),
Net Income (Loss) (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP), Respectively
(Unaudited; in millions, except ratio data)
The following chart reconciles Net Interest Expense (GAAP), Net Income (Loss) (GAAP), Current and Long-Term Debt (GAAP) and Total Capitalization (GAAP) to After-Tax Net Interest Expense (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 Net Interest Expense, 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.
                                                                        2015        2014        2013        2012
Return on Capital Employed (ROCE) (Non-GAAP)
Net Interest Expense (GAAP)                                           $ 237       $ 201       $ 235
Tax Benefit Imputed (based on 35%)                                      (83)        (70)        (82)
After-Tax Net Interest Expense (Non-GAAP) - (a)                       $ 154       $ 131       $ 153
Net Income (Loss) (GAAP) - (b)                                        $ (4,525)   $ 2,915     $ 2,197
Add:   After-Tax Mark-to-Market Commodity Derivative Contracts Impact   430         (515)       182
Add:   Impairments of Certain Assets, Net of Tax                        4,125       553         4
Less:  Texas Margin Tax Rate Reduction                                  (20)        -           -
Add:   Legal Settlement - Early Leasehold Termination, Net of Tax       13          -           -
Add:   Severance Costs, Net of Tax                                      6           -           -
Less:  Net (Gains) Losses on Asset Dispositions, Net of Tax             5           (487)       (137)
Add:   Tax Expense Related to the Repatriation of Accumulated           -           250         -
Foreign Earnings in Future Years
Adjusted Net Income (Non-GAAP) - (c)                                  $ 34        $ 2,716     $ 2,246
Total Stockholders’ Equity - (d)                                      $ 12,943    $ 17,713    $ 15,418    $ 13,285
Average Total Stockholders’ Equity * - (e)                            $ 15,328    $ 16,566    $ 14,352
Current and Long-Term Debt (GAAP) - (f)                               $ 6,660     $ 5,910     $ 5,913     $ 6,312
Less: Cash                                                              (719)       (2,087)     (1,318)     (876)
Net Debt (Non-GAAP) - (g)                                             $ 5,941     $ 3,823     $ 4,595     $ 5,436
Total Capitalization (GAAP) - (d) + (f)                               $ 19,603    $ 23,623    $ 21,331    $ 19,597
Total Capitalization (Non-GAAP) - (d) + (g)                           $ 18,884    $ 21,536    $ 20,013    $ 18,721
Average Total Capitalization (Non-GAAP) * - (h)                       $ 20,210    $ 20,775    $ 19,367
ROCE (GAAP Net Income) - [(a) + (b)] / (h)                              -21.6   %   14.7    %   12.1    %
ROCE (Non-GAAP Adjusted Net Income) - [(a) + (c)] / (h)                 0.9     %   13.7    %   12.4    %
Return on Equity (ROE) (Non-GAAP)
ROE (GAAP Net Income) - (b) / (e)                                       -29.5   %   17.6    %   15.3    %
ROE (Non-GAAP Adjusted Net Income) - (c) / (e)                          0.2     %   16.4    %   15.6    %
* Average for the current and immediately preceding year
EOG RESOURCES, INC.
First Quarter and Full Year 2016 Forecast and Benchmark Commodity Pricing
(a)  First Quarter and Full Year 2016 Forecast
The forecast items for the first quarter and full year 2016 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 2016                                                              Full Year 2016
Daily Production
Crude Oil and Condensate Volumes (MBbld)
United States                                            255.0                                                  -   265.0     250.0                                                  -   265.0
Trinidad                                                 0.3                                                    -   0.5       0.3                                                    -   0.5
Other International                                      0.0                                                    -   6.0       9.7                                                    -   14.5
Total                                                    255.3                                                  -   271.5     260.0                                                  -   280.0
Natural Gas Liquids Volumes (MBbld)
Total                                                    71.0                                                   -   79.0      70.0                                                   -   80.0
Natural Gas Volumes (MMcfd)
United States                                            795                                                    -   815       770                                                    -   800
Trinidad                                                 340                                                    -   360       280                                                    -   310
Other International                                      22                                                     -   28        20                                                     -   25
Total                                                    1,157                                                  -   1,203     1,070                                                  -   1,135
Crude Oil Equivalent Volumes (MBoed)
United States                                            458.5                                                  -   479.8     448.3                                                  -   478.3
Trinidad                                                 57.0                                                   -   60.5      47.0                                                   -   52.2
Other International                                      3.7                                                    -   10.7      13.0                                                   -   18.7
Total                                                    519.2                                                  -   551.0     508.3                                                  -   549.2
Operating Costs
Unit Costs ($/Boe)
Lease and Well                                         $ 5.25                                                   - $ 5.75    $ 5.30                                                   - $ 6.10
Transportation Costs                                   $ 3.90                                                   - $ 4.50    $ 4.00                                                   - $ 4.60
Depreciation, Depletion and Amortization               $ 18.55                                                  - $ 18.95   $ 17.95                                                  - $ 18.55
Expenses ($MM)
Exploration, Dry Hole and Impairment                   $ 100                                                    - $ 120     $ 425                                                    - $ 475
General and Administrative                             $ 83                                                     - $ 93      $ 335                                                    - $ 365
Gathering and Processing                               $ 35                                                     - $ 40      $ 130                                                    - $ 150
Capitalized Interest                                   $ 7                                                      - $ 9       $ 27                                                     - $ 33
Net Interest                                           $ 67                                                     - $ 69      $ 275                                                    - $ 285
Taxes Other Than Income (% of Wellhead Revenue)          6.5%                                                   -   7.0%      6.3%                                                   -   6.8%
Income Taxes
Effective Rate                                           32%                                                    -   37%       32%                                                    -   37%
Current Taxes ($MM)                                    $ (55)                                                   - $ (40)    $ (190)                                                  - $ (170)
Capital Expenditures (Excluding Acquisitions, $MM)
Exploration and Development, Excluding Facilities                                                                           $ 1,925                                                  - $ 2,025
Exploration and Development Facilities                                                                                      $ 350                                                    - $ 400
Gathering, Processing and Other                                                                                             $ 125                                                    - $ 175
Pricing - (Refer toBenchmark Commodity Pricingin text)
Crude Oil and Condensate ($/Bbl)
Differentials
United States - above (below) WTI                      $ (4.00)                                                 - $ (2.00)  $ (3.75)                                                 - $ (1.75)
Trinidad - above (below) WTI                           $ (10.50)                                                - $ (9.50)  $ (12.00)                                                - $ (8.00)
Natural Gas Liquids
Realizations as % of WTI                                 31%                                                    -   35%       31%                                                    -   35%
Natural Gas ($/Mcf)
Differentials
United States - above (below) NYMEX Henry Hub          $ (1.20)                                                 - $ (0.50)  $ (1.20)                                                 - $ (0.50)
Realizations
Trinidad                                               $ 2.10                                                   - $ 2.90    $ 2.40                                                   - $ 2.90
Other International                                    $ 3.00                                                   - $ 4.25    $ 3.30                                                   - $ 3.90
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-2015-results-and-announces-2016-capital-program-focused-on-premium-drilling-inventory-300226535.html

SOURCE EOG Resources, Inc.

http://rt.prnewswire.com/rt.gif?NewsItemId=DA31305&Transmission_Id=201602251616PR_NEWS_USPR_____DA31305&DateId=20160225



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