EOG Resources Announces Outstanding First Quarter 2014 Results and Expands Drilling Portfolio With Four Key Horizontal Plays

  EOG Resources Announces Outstanding First Quarter 2014 Results and Expands               Drilling Portfolio With Four Key Horizontal Plays  PR Newswire  HOUSTON, May 5, 2014  HOUSTON, May 5, 2014 /PRNewswire/ --    oReports 42 Percent Increase in Total Company and 45 Percent Growth in U.S.     Crude Oil and Condensate Production Year-Over-Year   oRaises 2014 Full-Year Crude Oil Production Goal to 29 Percent from 27     Percent   oAdds High Rate-of-Return Horizontal Drilling Inventory in Four U.S. Crude     Oil and Combo Plays with Total Estimated Potential Reserves of 400 MMboe,     Net   oRepeats Outstanding Operating Results from the Eagle Ford, Bakken and     Leonard  EOG Resources, Inc.(NYSE: EOG) (EOG) today reported first quarter 2014 net income of $660.9 million, or $1.21 per share. This compares to first quarter 2013 net income of $494.7 million, or $0.91 per share.  Adjusted non-GAAP net income for the first quarter 2014 was $767.7 million, or $1.40 per share, and adjusted non-GAAP net income for the same prior year period was $489.9 million, or $0.90 per share.  Consistent with some analysts' practice of matching realizations to settlement months and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income for the first quarter 2014 excluded a previously disclosed non-cash net loss of $155.7 million ($99.9 million after-tax, or $0.18 per share) on the mark-to-market of financial commodity derivative contracts, net gains on asset dispositions of $7.4 million, net of tax ($0.01 per share) and impairments of certain non-core North American assets of $36.1 million, net of tax ($0.06 per share). During the first quarter 2014, the net cash outflow related to settlements of financial commodity derivative contracts was $34.0 million ($21.8 million after-tax, or $0.04 per share). (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income to GAAP net income.)  EOG posted strong financial metrics driven by outstanding production from its key operating areas for the first quarter 2014. Earnings per share increased 33 percent and adjusted non-GAAP earnings per share increased 56 percent, compared to the first quarter 2013. Discretionary cash flow increased 28 percent and adjusted EBITDAX advanced 30 percent. (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income to GAAP net income, non-GAAP discretionary cash flow to net cash provided by operating activities (GAAP), and adjusted non-GAAP EBITDAX to income before interest expense and income taxes (GAAP).)  "By posting excellent operational and financial results generated by our great assets, EOG hit another home run in the first quarter of 2014. With such a dynamic start, EOG is well positioned to achieve strong overall returns again this year," said William R. "Bill" Thomas, Chairman and Chief Executive Officer.  Operational Highlights In the first quarter 2014, EOG increased its total crude oil and condensate production by 42 percent, compared to the same prior year period, while U.S. crude oil and condensate production rose 45 percent. Overall total company production increased 18 percent led by a 37 percent increase in total company liquids production – crude oil, condensate and natural gas liquids (NGLs).  Following excellent results during the first quarter, EOG increased its full year 2014 crude oil and condensate production growth target to 29 percent from 27 percent. EOG also raised its total company 2014 production growth target to 12 percent from 11.5 percent.  Rocky Mountain Plays Boost Drilling Portfolio EOG has moved four horizontal plays in the DJ Basin and Powder River Basin from the evaluation phase into its high rate-of-return drilling portfolio alongside its successful South Texas Eagle Ford, North Dakota Bakken and Delaware Basin Leonard assets. With combined estimated net potential reserves of approximately 400 million barrels of oil equivalent (MMboe), the Codell, Niobrara, Parkman and Turner plays are generating excellent rates of return and remarkably consistent well results, due in part to reductions in drilling costs and advancements in completion techniques. EOG has identified 735 net drilling locations with approximately 10 years of inventory and plans to drill 73 net wells in these two basins during 2014.  Year-to-date, EOG has completed four net wells targeting the Codell in Laramie County, Wyoming, where it holds 72,000 net acres in the DJ Basin. The Jubilee 513-0820H began production at 1,325 barrels of oil per day (Bopd) with 700 thousand cubic feet per day (Mcfd) of rich natural gas. The Windy 504-1806H started production at 1,400 Bopd with 665 Mcfd of rich natural gas. The Pole Creek 525-2413H tested at 1,165 Bopd. EOG has 75 percent, 100 percent and 93 percent working interest, respectively, in these wells. Based on the evaluation of the geologic characteristics of the formation, data from 130 vertical wells drilled by other industry operators and eight producing EOG long-lateral horizontal wells, estimated potential reserves are approximately 125 MMboe, net, of which 78 percent is crude oil. EOG plans to ramp up drilling activity from one to two rigs in May and drill 26 net wells this year.  EOG completed three horizontal wells in the hydrocarbon-rich Niobrara shale during 2013, which had an average initial oil production rate of approximately 700 barrels per day (Bpd). EOG's acreage is quite consistent in this part of the DJ Basin. The estimated reserve potential on EOG's Niobrara acreage in Laramie County, Wyoming, and Weld County, Colorado is 85 MMboe, net, with wells averaging approximately 71 percent crude oil. EOG plans to drill 13 net wells during 2014 with a one-rig program. EOG has identified 235 net drilling locations on its acreage.  North of the DJ Basin in the Powder River Basin, EOG added the Parkman and Turner plays to its drilling portfolio. Active in this area for several years, EOG has transferred advanced completion technology from its other shale basins to improve well productivity in these plays. During 2014, EOG plans to drill 28 net wells in the Parkman and six net wells in the Turner.  Year-to-date, EOG has completed six net wells in the Parkman formation. The Bolt 429-05H, in which EOG has 74 percent working interest, came on-line at 1,310 Bopd with 45 Bpd of NGLs and 405 Mcfd of natural gas. The Arbalest 60-3502H started production at 955 Bopd with 80 Bpd of NGLs and 760 Mcfd of natural gas. EOG has 96 percent working interest in this well. Estimated potential reserves on EOG's 30,000 net Parkman acres are 75 MMboe, net, of which approximately 69 percent is crude oil.  In the Turner formation, where EOG has been very active in Campbell and Converse counties in recent years, it has accumulated 63,000 net acres. By transferring enhanced technology to the play, recent EOG wells are producing 34 percent crude oil versus 26 percent several years ago. EOG plans to drill six net wells during 2014 in the Turner where estimated potential net reserves are 115 MMboe.  "As we've stated in the past, EOG's Eagle Ford and Bakken assets have set the bar high for any new play we might consider adding to our top-tier drilling portfolio. The Codell, Niobrara, Turner and Parkman each meet our stringent funding hurdles, adding 400 MMboe, net, of potential reserves and 735 net drilling locations to our drilling inventory," Thomas said. "The sweet spots in these four plays are expected to make meaningful contributions to EOG's crude oil production profile for years to come."  South Texas Eagle Ford EOG's oil-rich South Texas Eagle Ford acreage continued to deliver exceptional results in the first quarter, cementing its place at the forefront of all North American crude oil onshore shale plays. Reflecting enhancements to completion techniques and improved well productivity, the Eagle Ford once again was the single largest contributor to EOG's robust U.S. crude oil growth.  In Karnes County, EOG reported the Korth Unit #3H, #4H and #5H had initial production rates of 3,140, 3,015 and 3,400 Bopd, respectively. The wells produced 425, 325 and 415 Bpd of NGLs with 2.5, 1.9 and 2.4 million cubic feet per day (MMcfd) of natural gas, respectively. The Lynch Unit #1H and the Presley Unit #1H had initial oil rates of 4,260 and 4,970 Bpd with 460 and 555 Bpd of NGLs and 2.7 and 3.2 MMcfd of natural gas, respectively. EOG has 100 percent working interest in these five wells.  EOG has 100 percent working interest in three recently completed high volume oil wells in Gonzales County. The Neets Unit #1H and the Magoulas Unit #1H began production at 4,940 and 4,195 Bopd with 440 and 425 Bpd of NGLs and 2.6 and 2.5 MMcfd of natural gas, respectively. The Novosad Unit #12HR had an initial daily oil rate of 3,565 Bpd with 185 Bpd of NGLs and 1.1 MMcfd of natural gas.  In its fifth year of drilling in the Eagle Ford, EOG's 564,000 net acre position in the crude oil window essentially will be held by production for 2014 by mid-year. Achieving this operational objective provides EOG's drilling program with increased flexibility, plus the opportunity to realize additional cost reductions. EOG continues to improve well productivity to further identify additional drilling locations.   North Dakota Bakken In the North Dakota Bakken, EOG plans to ramp up its drilling program from six to seven rigs by mid-year. EOG's primary 2014 activity is focused on its Core acreage where it has built infrastructure to optimize operational efficiencies and minimize costs. During the first quarter, EOG achieved economic success with 1,300 feet between wells and now is testing 700-foot spacing, as well as tighter spacing patterns to determine the optimal development of the field.  EOG completed the Wayzetta 28-1424H, 29-1424H, 38-1424H, 39-1424H and 40-1424H in Mountrail County, North Dakota. The wells had initial production rates ranging from 1,000 to 2,220 Bopd with NGL production of 100 to 215 Bpd and 330 to 730 Mcfd of natural gas. EOG's working interest in these five wells ranges from 68 percent to 71 percent.  Delaware Basin Recent advancements in completions and formation targeting have improved EOG's productivity in the Delaware Basin Leonard Shale. In Lea County, New Mexico, EOG completed the Dillon 31 #1H, #2H and #3H with 1,225, 1,395 and 1,315 Bopd with 195, 215 and 190 Bpd of NGLs and 1.1, 1.2 and 1.1 MMcfd of natural gas, respectively. EOG has 68 percent working interest in these three wells. With a two-rig program, EOG is actively developing the Leonard "A" zone, while testing other zones, and various spacing patterns between wells.  Further south in the Delaware Basin, EOG completed five Wolfcamp wells in Reeves County, Texas, in which it has 100 percent working interest. The State Harrison Ranch 56 #1401H, #1402H, #1403H, #1404H and #1405H began sales at initial rates ranging from 325 to 700 Bopd with 195 to 490 Bpd of NGLs and 1.2 to 3.1 MMcfd of natural gas. Although the Delaware Basin Wolfcamp wells typically begin production at lower initial oil rates relative to the Leonard, they maintain steady, flat production, delivering excellent after-tax rates of return. EOG continues to test spacing between wells to determine optimal development.  Crude Oil and Natural Gas Hedging Activity For May 2014, EOG has crude oil financial price swap contracts in place for 181,000 Bopd at a weighted average price of $96.55 per barrel, excluding unexercised options. For June 2014, EOG has crude oil financial price swap contracts in place for 171,000 Bopd at a weighted average price of $96.35 per barrel, excluding unexercised options. For the period July 1 through December 31, 2014, EOG has crude oil financial price swap contracts in place for 74,000 Bopd at a weighted average price of $95.37 per barrel, excluding unexercised options.  EOG currently has natural gas hedges in place for more than 30 percent of its North American natural gas production for the remainder of 2014. For the period June 1 through December 31, 2014, EOG has natural gas financial price swap contracts in place for 330,000 million British thermal units per day (MMBtud) at a weighted average price of $4.55 per million British thermal units (MMBtu), excluding unexercised options.  EOG has also hedged some natural gas volumes for 2015. For the period January 1 through December 31, 2015, EOG has natural gas financial price swap contracts in place for 175,000 MMBtud at a weighted average price of $4.51 per MMBtu, excluding unexercised options. (For a comprehensive summary of crude oil and natural gas derivative contracts, please refer to the attached tables.)   Cash Flow and Capital Structure During the first quarter 2014, EOG's cash flows from operating activities exceeded total capital expenditures.  At March 31, 2014, EOG's total debt outstanding was $5,910 million for a debt-to-total capitalization ratio of 27 percent. Taking into account cash on the balance sheet of $1.7 billion at March 31, EOG's net debt was $4,243 million for a net debt-to-total capitalization ratio of 21 percent, down from 23 percent at year-end 2013. (Please refer to the attached tables for the reconciliation of net debt (non-GAAP) to current and long-term debt (GAAP) and the reconciliation of net debt-to-total capitalization ratio (non-GAAP) to debt-to-total capitalization ratio (GAAP).)  Conference Call May 6, 2014 EOG's first quarter 2014 results conference call will be available via live audio webcast at 9 a.m. Central time (10 a.m. Eastern time) on Tuesday, May 6, 2014. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through May 20, 2014.  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, Canada, 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, 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:    othe timing and extent of changes in prices for, and demand for, crude oil     and condensate, natural gas liquids, natural gas and related commodities;   othe extent to which EOG is successful in its efforts to acquire or     discover additional reserves;   othe 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;   othe extent to which EOG is successful in its efforts to market its crude     oil, natural gas and related commodity production;   othe availability, proximity and capacity of, and costs associated with,     appropriate gathering, processing, compression, transportation and     refining facilities;   othe 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;   othe 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;   oEOG'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;   othe extent to which EOG's third-party-operated crude oil and natural gas     properties are operated successfully and economically;   ocompetition in the oil and gas exploration and production industry for     employees and other personnel, facilities, equipment, materials and     services;   othe availability and cost of employees and other personnel, facilities,     equipment, materials (such as water) and services;   othe accuracy of reserve estimates, which by their nature involve the     exercise of professional judgment and may therefore be imprecise;   oweather, 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;   othe 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;   oEOG'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;   othe extent and effect of any hedging activities engaged in by EOG;   othe 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;   opolitical conditions and developments around the world (such as political     instability and armed conflict), including in the areas in which EOG     operates;   othe use of competing energy sources and the development of alternative     energy sources;   othe extent to which EOG incurs uninsured losses and liabilities or losses     and liabilities in excess of its insurance coverage;   oacts of war and terrorism and responses to these acts;   ophysical, electronic and cyber security breaches; and   othe other factors described under Item 1A, "Risk Factors", on pages 17     through 26 of EOG's Annual Report on Form 10-K for the fiscal year ended     December 31, 2013 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). As noted above, 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, 2013, 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                                  Maire A. Baldwin                                  (713) 651-6EOG (651-6364)                                  Kimberly A. Matthews                                  (713) 571-4676                                  David J. Streit For Further Information Contact: (713) 571-4902                                                                      Media                                  K Leonard                                  (713) 571-3870      EOG RESOURCES, INC. FINANCIAL REPORT (Unaudited; in millions, except per share data)                                                       Three Months Ended                                                       March 31,                                                       2014         2013 Net Operating Revenues                                $ 4,083.7    $ 3,356.5 Net Income                                           $ 660.9      $ 494.7 Net Income Per Share   Basic                                               $ 1.22       $ 0.92   Diluted                                             $ 1.21       $ 0.91 Average Number of Common Shares   Basic                                                 542.3        538.7   Diluted                                               548.1        544.5 SUMMARY INCOME STATEMENTS (Unaudited; in thousands, except per share data)                                                       Three Months Ended                                                       March 31,                                                       2014         2013 Net Operating Revenues   Crude Oil and Condensate                            $ 2,397,102  $ 1,781,833   Natural Gas Liquids                                   246,235      169,529   Natural Gas                                           556,693      410,879   Losses on Mark-to-Market Commodity Derivative         (155,736)    (104,956)   Contracts   Gathering, Processing and Marketing                   1,015,411    922,957   Gains on Asset Dispositions, Net                      11,498       164,233   Other, Net                                            12,468       12,039    Total                                         4,083,671    3,356,514 Operating Expenses   Lease and Well                                        320,834      249,000   Transportation Costs                                  243,237      184,257   Gathering and Processing Costs                        33,924       24,504   Exploration Costs                                     48,058       44,216   Dry Hole Costs                                        8,348        3,962   Impairments                                          113,361      53,548   Marketing Costs                                       1,006,304    904,649   Depreciation, Depletion and Amortization              946,491      846,388   General and Administrative                            82,862       77,985   Taxes Other Than Income                               195,973      134,931    Total                                         2,999,392    2,523,440 Operating Income                                       1,084,279    833,074 Other Expense, Net                                      (3,338)      (10,134) Income Before Interest Expense and Income Taxes         1,080,941    822,940 Interest Expense, Net                                   50,152       61,921 Income Before Income Taxes                              1,030,789    761,019 Income Tax Provision                                    369,861      266,294 Net Income                                           $ 660,928    $ 494,725 Dividends Declared per Common Share                   $ 0.125      $ 0.09375  Note: All share and per-share amounts shown have been restated to reflect the announced 2-for-1 stock split effective March 31, 2014.    EOG RESOURCES, INC. OPERATING HIGHLIGHTS (Unaudited)                                                      Three Months Ended                                                      March 31,                                                      2014      2013 Wellhead Volumes and Prices Crude Oil and Condensate Volumes (MBbld) ^(A)                United States                           258.1     178.3                Canada                                  7.2       7.7                Trinidad                                1.1       1.2                Other International ^(B)                0.1       0.1                Total                         266.5     187.3 Average Crude Oil and Condensate Prices ($/Bbl) ^(C)                United States                         $ 100.58  $ 106.57                Canada                                  89.98     85.32                Trinidad                                89.93     94.51                Other International ^(B)                87.20     95.13                Composite                     100.25    105.61 Natural Gas Liquids Volumes (MBbld) ^(A)                United States                           70.8      58.6                Canada                                  0.8       0.9                Total                         71.6      59.5 Average Natural Gas Liquids Prices ($/Bbl) ^(C)                United States                         $ 38.10   $ 31.63                Canada                                  46.88     41.90                Composite                     38.20     31.78 Natural Gas Volumes (MMcfd) ^(A)                United States                           894       934                Canada                                  64        79                Trinidad                                387       352                Other International ^(B)                7         8                Total                         1,352     1,373 Average Natural Gas Prices ($/Mcf) ^(C)                United States                         $ 4.96    $ 3.08                Canada                                  4.70      3.24                Trinidad                                3.63      3.91                Other International ^(B)                6.12      6.75                Composite                     4.58      3.32 Crude Oil Equivalent Volumes (MBoed) ^(D)                United States                          478.0     392.6                Canada                                  18.7      21.8                Trinidad                                65.6      59.8                Other International ^(B)                1.2       1.4                Total                         563.5     475.6 Total MMBoe ^(D)                                       50.7      42.8  (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.      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 equivalents are determined using the (D)  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)                                                 March 31,       December 31,                                                 2014            2013 ASSETS Current Assets  Cash and Cash Equivalents                      $ 1,667,212     $ 1,318,209  Accounts Receivable, Net                         1,801,665       1,658,853  Inventories                                      635,419         563,268  Assets from Price Risk Management Activities     -               8,260  Income Taxes Receivable                          191             4,797  Deferred Income Taxes                            429,695         244,606  Other                                            288,294         274,022  Total                                  4,822,476       4,072,015 Property, Plant and Equipment  Oil and Gas Properties (Successful Efforts       44,324,008      42,821,803  Method)  Other Property, Plant and Equipment              3,128,400       2,967,085  Total Property, Plant and Equipment    47,452,408      45,788,888  Less: Accumulated Depreciation, Depletion and   (20,453,971)    (19,640,052)  Amortization  Total Property, Plant and Equipment,   26,998,437      26,148,836  Net Other Assets                                      320,375         353,387 Total Assets                                    $ 32,141,288    $ 30,574,238 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities  Accounts Payable                               $ 2,647,209     $ 2,254,418  Accrued Taxes Payable                            270,908         159,365  Dividends Payable                                67,768          50,795  Liabilities from Price Risk Management           227,036         127,542  Activities  Current Portion of Long-Term Debt                6,579           6,579  Other                                            176,142         263,017  Total                                  3,395,642       2,861,716 Long-Term Debt                                    5,902,952       5,906,642 Other Liabilities                                 922,586         865,067 Deferred Income Taxes                             5,886,794       5,522,354 Commitments and Contingencies Stockholders' Equity  Common Stock, $0.01 Par, 640,000,000 Shares  Authorized and 546,892,339  Shares Issued at March 31, 2014 and  546,378,440 Shares Issued at December 31,        205,471         202,732  2013  Additional Paid in Capital                       2,697,807       2,646,879  Accumulated Other Comprehensive Income          402,803         415,834  Retained Earnings                                12,760,895      12,168,277  Common Stock Held in Treasury, 396,906 Shares  at March 31, 2014 and206,830 Shares at          (33,662)        (15,263)  December 31, 2013  Total Stockholders' Equity                  16,033,314      15,418,459 Total Liabilities and Stockholders' Equity      $ 32,141,288    $ 30,574,238  Note: All share amounts shown have been restated to reflect the announced 2-for-1 stock split effective March 31, 2014.    EOG RESOURCES, INC. SUMMARY STATEMENTS OF CASH FLOWS (Unaudited; in thousands)                                                   Three Months Ended                                                   March 31,                                                   2014           2013 Cash Flows from Operating Activities Reconciliation of Net Income to Net Cash Provided by Operating Activities:  Net Income                                      $ 660,928      $ 494,725  Items Not Requiring (Providing) Cash        Depreciation, Depletion and Amortization     946,491        846,388        Impairments                                 113,361        53,548        Stock-Based Compensation Expenses            35,565         30,436        Deferred Income Taxes                        232,808        200,779        Gains on Asset Dispositions, Net             (11,498)       (164,233)        Other, Net                                   5,442          8,268  Dry Hole Costs                                     8,348          3,962  Mark-to-Market Commodity Derivative Contracts        Total Losses                                 155,736        104,956        Net Cash (Payments for) Received from        Settlements of Commodity Derivative          (34,033)       67,050        Contracts  Excess Tax Benefits from Stock-Based               (27,422)       (11,673)  Compensation  Other, Net                                         3,589          5,022  Changes in Components of Working Capital and  Other Assets and Liabilities        Accounts Receivable                          (144,317)      (236,757)        Inventories                                  (68,948)       (15,058)        Accounts Payable                             361,810        186,065        Accrued Taxes Payable                        139,801        9,004        Other Assets                                 (12,536)       (47,193)        Other Liabilities                            (29,169)       (52,933)  Changes in Components of Working Capital  Associated with Investing and Financing            (68,283)       (57,421)  Activities Net Cash Provided by Operating Activities           2,267,673      1,424,935 Investing Cash Flows  Additions to Oil and Gas Properties                (1,736,630)    (1,604,123)  Additions to Other Property, Plant and Equipment   (165,966)      (92,201)  Proceeds from Sales of Assets                      19,825         479,436  Changes in Restricted Cash                         (9,047)        -  Changes in Components of Working Capital           68,258         57,149  Associated with Investing Activities Net Cash Used in Investing Activities               (1,823,560)    (1,159,739) Financing Cash Flows  Long-Term Debt Borrowings                          496,220        -  Long-Term Debt Repayments                          (500,000)      -  Settlement of Foreign Currency Swap                (31,573)       -  Dividends Paid                                     (51,780)       (46,220)  Excess Tax Benefits from Stock-Based               27,422         11,673  Compensation  Treasury Stock Purchased                           (28,897)       (11,024)  Proceeds from Stock Options Exercised             985            8,004  Debt Issuance Costs                                (942)          -  Repayment of Capital Lease Obligation              (1,474)        (1,427)  Other, Net                                         25             272 Net Cash Used in Financing Activities               (90,014)       (38,722) Effect of Exchange Rate Changes on Cash             (5,096)        5,125 Increase in Cash and Cash Equivalents               349,003        231,599 Cash and Cash Equivalents at Beginning of Period    1,318,209      876,435 Cash and Cash Equivalents at End of Period        $ 1,667,212    $ 1,108,034    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 periods ended March 31, 2014 and 2013 reported Net Income (GAAP) to reflect actual net cash (payments for) received from settlements of commodity derivative contracts by eliminating the unrealized mark-to-market losses from these transactions, to eliminate the net gains on asset dispositions in North America in 2014 and 2013 and to add back impairment charges related to certain of EOG's non-core North American assets 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                                   March 31,                                   2014                  2013 Reported Net Income (GAAP)        $   660,928           $   494,725 Mark-to-Market (MTM) Commodity Derivative Contracts Impact       Total Losses                    155,736               104,956       Net Cash (Payments for)       Received from Settlements       of Commodity        Derivative Contracts        (34,033)              67,050       Subtotal              121,703               172,006       After-Tax MTM Impact            78,078                110,127 Less: Net Gains on Asset              (7,377)               (114,993) Dispositions, Net of Tax Add: Impairments of Certain North     36,058                - American Assets, Net of Tax Adjusted Net Income (Non-GAAP)    $   767,687           $   489,859 Net Income Per Share (GAAP)       Basic                       $   1.22              $   0.92       Diluted                     $   1.21       (a)   $   0.91        (b) Percentage Increase - [(a) - (b)]     33% / (b) Adjusted Net Income Per Share (Non-GAAP)       Basic                       $   1.42              $   0.91       Diluted                     $   1.40       (c)   $   0.90        (d) Percentage Increase - [(c) - (d)]     56% / (d) Average Number of Common Shares (GAAP)       Basic                           542,278               538,717       Diluted                         548,071               544,526  Note: All share and per-share amounts shown have been restated to reflect the announced 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 periods ended March 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                                      March 31,                                      2014                  2013 Net Cash Provided by Operating       $   2,267,673         $  1,424,935 Activities (GAAP) Adjustments:       Exploration Costs (excluding       Stock-Based Compensation           40,124               36,645       Expenses)       Excess Tax Benefits from           27,422               11,673       Stock-Based Compensation       Changes in Components of       Working Capital and Other       Assets and Liabilities                Accounts Receivable       144,317              236,757                Inventories               68,948               15,058                Accounts Payable          (361,810)            (186,065)                Accrued Taxes Payable     (139,801)            (9,004)                Other Assets              12,536               47,193                Other Liabilities         29,169               52,933       Changes in Components of       Working Capital Associated       with Investing and Financing       68,283               57,421       Activities Discretionary Cash Flow (Non-GAAP)   $   2,156,861   (a)  $  1,687,546  (b) Percentage Increase - [(a) - (b)] /      28% (b)    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 periods ended March 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 (payments for) received from settlements of commodity derivative contracts by eliminating the unrealized mark-to-market (MTM) 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                                      March 31,                                      2014                  2013 Income Before Interest Expense and   $   1,080,941         $  822,940 Income Taxes (GAAP) Adjustments:        Depreciation, Depletion and       946,491              846,388        Amortization        Exploration Costs                 48,058               44,216        Dry Hole Costs                    8,348                3,962        Impairments                      113,361              53,548                   EBITDAX (Non-GAAP)     2,197,199            1,771,054        Total Losses on MTM Commodity     155,736              104,956        Derivative Contracts        Net Cash (Payments for)        Received from Settlements of      (34,033)             67,050        Commodity Derivative        Contracts        Net Gains on Asset                (11,498)             (164,233)        Dispositions Adjusted EBITDAX (Non-GAAP)          $   2,307,404   (a)  $  1,778,827  (b) Percentage Increase - [(a) - (b)] /      30% (b)    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 May 5, 2014, 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) 2014^(1) January 2014 (closed)         156,000                      $       96.30 February 2014 (closed)        171,000                      96.35 March 1, 2014 through April   181,000                      96.55 30, 2014 (closed) May 2014                      181,000                      96.55 June 2014                     171,000                      96.35 July 1, 2014 through December 74,000                       95.37 31, 2014 2015^(2)                      -                            $                                                                     -                     EOG has entered into crude oil derivative contracts which                     give counterparties the option to extend certain current                     derivative contracts for additional three-month and                     six-month periods. Options covering a notional volume of                     10,000 Bbld are exercisable on or about May 30, 2014. If                     the counterparties exercise all such options, the notional                     volume of EOG's existing crude oil derivative contracts (1)                 will increase by 10,000 Bbld at an average price of                     $100.00 per barrel for each month during the period June                     1, 2014 through August 31, 2014. Options covering a                     notional volume of 118,000 Bbld are exercisable on or                     about June 30, 2014. If the counterparties exercise all                     such options, the notional volume of EOG's existing crude                     oil derivative contracts will increase by 118,000 Bbld at                     an average price of $96.64 per barrel for each month                     during the period July 1, 2014 through December 31, 2014.                     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 69,000 Bbld are (2)                 exercisable on or about December 31, 2014. If the                     counterparties exercise all such options, the notional                     volume of EOG's existing crude oil derivative contracts                     will increase by 69,000 Bbld at an average price of $95.20                     per barrel for each month during the period January 1,                     2015 through June 30, 2015. NATURAL GAS DERIVATIVE CONTRACTS                                                            Weighted                               Volume                       Average Price                               (MMBtud)                    ($/MMBtu) 2014^(3) January 2014 (closed)         230,000                      $       4.51 February 2014 (closed)        710,000                      4.57 March 2014 (closed)           810,000                      4.60 April 2014 (closed)           465,000                      4.52 May 2014 (closed)             685,000                      4.55 June 1, 2014 through December 330,000                      4.55 31, 2014 2015^(4) January 1, 2015 through       175,000                      $       4.51 December 31, 2015                     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 (3)                 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 480,000 MMBtud at an                     average price of $4.63 per MMBtu for each month during the                     period June 1, 2014 through December 31, 2014.                     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 (4)                 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 January 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. 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                                March 31,                  December 31,                                2014                       2013 Total Stockholders' Equity -   $       16,033             $       15,418 (a) Current and Long-Term Debt -           5,910                      5,913 (b) Less: Cash                            (1,667)                    (1,318) Net Debt (Non-GAAP) - (c)              4,243                      4,595 Total Capitalization (GAAP) -  $       21,943             $       21,331 (a) + (b) Total Capitalization           $       20,276             $       20,013 (Non-GAAP) - (a) + (c) Debt-to-Total Capitalization           27%                        28% (GAAP) - (b) / [(a) + (b)] Net Debt-to-Total Capitalization (Non-GAAP) -            21%                        23% (c) / [(a) + (c)]    EOG RESOURCES, INC.  SECOND QUARTER AND FULL YEAR 2014 FORECAST AND BENCHMARK COMMODITY PRICING        (a) Second Quarter and Full Year 2014 Forecast The forecast items for the second quarter and full year 2014 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, Canada 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 and Canada 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)                                        2Q 2014                Full Year 2014 Daily Production        Crude Oil and Condensate        Volumes (MBbld)                United States           265.0   -     280.0    267.0  -   287.0                Canada                  4.5     -     5.5      4.5    -   6.5                Trinidad                0.7     -     0.9      0.6    -   1.0                Other International     0.0     -     0.0      0.0    -   1.2                   Total                270.2   -     286.4    272.1  -   295.7        Natural Gas Liquids Volumes        (MBbld)                United States           68.0    -     78.0     68.0   -   77.0                Canada                  0.5     -     0.7      0.6    -   0.8                   Total                68.5    -     78.7     68.6   -   77.8        Natural Gas Volumes (MMcfd)                United States           878     -     898      850    -   880                Canada                  56      -     68       55     -   69                Trinidad                340     -     360      350    -   370                Other International     8       -     10       8      -   12                   Total                1,282   -     1,336    1,263  -   1,331        Crude Oil Equivalent Volumes        (MBoed)                United States           479.3   -     507.7    476.7  -   510.7                Canada                  14.3    -     17.5     14.3   -   18.8                Trinidad                57.4    -     60.9     58.9   -   62.7                Other International     1.3     -     1.7      1.3    -   3.2                   Total                552.3   -     587.8    551.2  -   595.4 Operating Costs        Unit Costs ($/Boe)                Lease and Well       $  6.20    -  $  6.50   $ 6.25   - $ 6.75                Transportation Costs $  4.75    -  $  4.95   $ 4.80   - $ 5.20                Depreciation,                Depletion and        $  18.40   -  $  19.10  $ 18.30  - $ 19.10                Amortization Expenses ($MM)        Exploration, Dry Hole and    $  130     -  $  150    $ 500    - $ 550        Impairment        General and Administrative   $  90      -  $  100    $ 380    - $ 390        Gathering and Processing    $  30      -  $  36     $ 125    - $ 145        Capitalized Interest         $  15      -  $  17     $ 55     - $ 65        Net Interest                 $  47      -  $  51     $ 190    - $ 210 Taxes Other Than Income (% of          6.0%    -     6.4%     6.0%   -   6.5% Wellhead Revenue) Income Taxes        Effective Rate                 35%     -     40%      35%    -   40%        Current Taxes ($MM)          $  155     -  $  170    $ 585    - $ 605 Capital Expenditures ($MM) - FY 2014 (Excluding Acquisitions)        Exploration and Development,                         $ 6,450    $ 6,550        Excluding Facilities        Exploration and Development                          $ 880      $ 920        Facilities        Gathering, Processing and                            $ 770      $ 810        Other Pricing - (Refer to Benchmark Commodity Pricing in text)        Crude Oil and Condensate        ($/Bbl)                Differentials                   United States -   $  (0.50)  -  $  0.50   $ (0.50) - $ 0.30                   (above) below WTI                   Canada - (above)  $  9.00    -  $  11.50  $ 10.00  - $ 14.00                   below WTI                   Trinidad -        $  9.00    -  $  11.00  $ 8.00   - $ 12.00                   (above) below WTI        Natural Gas Liquids                Realizations as % of                WTI                   United States        30%     -     37%      31%    -   37%                   Canada               30%     -     40%      32%    -   42%        Natural Gas ($/Mcf)                Differentials                   United States -                   (above) below     $  0.20    -  $  0.60   $ 0.25   - $ 0.60                   NYMEX Henry Hub                   Canada - (above)                   below NYMEX       $  0.15    -  $  0.55   $ 0.25   - $ 0.65                    Henry Hub                Realizations                   Trinidad          $  3.15    -  $  3.65   $ 2.75   - $ 3.25                   Other             $  4.50    -  $  6.50   $ 4.30   - $ 6.30                   International 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      SOURCE EOG Resources, Inc.  Website: http://www.eogresources.com  
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