EOG Resources Reports First Quarter 2024 Results
HOUSTON, May 2, 2024 /PRNewswire/ — EOG Resources, Inc. (EOG) today reported first quarter 2024 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG’s website at http://investors.eogresources.com/investors.
Key Financial Results
In millions of USD, except per-share, per-Boe and ratio data
GAAP
1Q 2024
6,123
4Q 2023
6,357
3Q 2023
6,212
2Q 2023
5,573
1Q 2023
6,044
Total Revenue
Net Income
1,789
1,988
2,030
1,553
2,023
Net Income Per Share
3.10
3.42
3.48
2.66
3.45
Net Cash Provided by Operating Activities
2,903
3,104
2,704
2,277
3,255
Total Expenditures
1,952
1,634
1,803
1,664
1,717
Current and Long-Term Debt
3,791
3,799
3,806
3,814
3,820
Cash and Cash Equivalents
5,292
5,278
5,326
4,764
5,018
Debt-to-Total Capitalization
11.7 %
11.9 %
12.1 %
12.7 %
13.1 %
Cash Operating Costs ($/Boe)
10.37
10.52
10.19
10.03
10.59
Non – GAAP
Adjusted Net Income
1,626
1,783
2,007
1,457
1,578
Adjusted Net Income Per Share
2.82
3.07
3.44
2.49
2.69
CFO before Changes in Working Capital
2,928
2,989
3,038
2,563
2,559
Capital Expenditures
1,703
1,512
1,519
1,521
1,489
Free Cash Flow
1,225
1,477
1,519
1,042
1,070
Net Debt
(1,501)
(1,479)
(1,520)
(950)
(1,198)
Net Debt-to-Total Capitalization
(5.5 %)
(5.6 %)
(5.8 %)
(3.8 %)
(4.9 %)
First Quarter Highlights
Earned adjusted net income of $1.6 billion, or $2.82 per shareGenerated $1.2 billion of free cash flowDeclared regular quarterly dividend of $0.91 per sharePaid $525 million in regular dividends and repurchased $750 million of shares during the first quarterVolumes and total per-unit cash operating costs better than guidance midpoints
First Quarter 2024 Highlights and Cash Return
Volumes and Capital Expenditures
Wellhead Volumes
1Q 2024
1Q 2024
Guidance
Midpoint
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Crude Oil and Condensate (MBod)
487.4
486.3
485.2
483.3
476.6
457.7
Natural Gas Liquids (MBbld)
231.7
228.0
235.8
231.1
215.7
212.2
Natural Gas (MMcfd)
1,858
1,835
1,831
1,704
1,668
1,639
Total Crude Oil Equivalent (MBoed)
1,028.8
1,020.1
1,026.2
998.5
970.3
943.0
Capital Expenditures ($MM)
1,703
1,700
1,512
1,519
1,521
1,489
From Ezra Yacob, Chairman and Chief Executive Officer
“EOG is off to a great start this year, delivering strong first quarter results. Production exceeded targets and total per-unit cash operating costs were lower than planned. Consistent strong execution quarter after quarter reflects the quality and depth of our multi-basin portfolio as well as the efforts of our employees across our operating areas.
“Our differentiated business model, focused on exploration and innovation, continues to strengthen our resource base. We believe our most recent exploration success, the Utica, will be competitive with the premier unconventional plays across North America. Well results continue to demonstrate consistent performance with significant oil contribution across multiple areas of our acreage position. Combined with emerging operating efficiencies, we are confident that the Utica will further improve our low-cost, high quality premium portfolio.
“EOG’s operational execution continues to translate into strong returns and cash flow generation. Strong free cash flow in the quarter allowed for significant capital return to shareholders through both our regular dividend and share repurchases, all while maintaining our industry-leading balance sheet. EOG is well positioned to leverage its core competencies to drive continued improvement in its business and create significant long-term value for our shareholders.”
Regular Dividend and First Quarter Share Repurchases
The Board of Directors today declared a dividend of $0.91 per share on EOG’s common stock. The dividend will be payable July 31, 2024, to stockholders of record as of July 17, 2024. The indicated annual rate is $3.64 per share.
During the first quarter, the company repurchased 6.4 million shares for $750 million under its share repurchase authorization, at an average purchase price of approximately $118 per share. EOG has $3.3 billion remaining on its current share buyback authorization.
First Quarter 2024 Financial Performance
Prices
Crude oil and natural gas prices decreased in 1Q compared with 4Q
Volumes
Total 1Q oil production of 487,400 Bopd was above the midpoint of the guidance range and up less than 1% from 4QNGL production was above the midpoint of the guidance range but down 2% from 4QNatural gas production was above the midpoint of the guidance range and up 1% from 4QTotal company equivalent daily production increased less than 1% from 4Q
Per-Unit Costs
LOE and DD&A costs increased in 1Q compared with 4Q, while GP&T and G&A expenses decreased
Hedges
Mark-to-market hedge gains decreased, lowering GAAP earnings per share in 1Q compared with 4QCash received to settle hedges increased adjusted non-GAAP earnings per share
Free Cash Flow
Cash flow from operations before changes in working capital was $2.9 billionEOG incurred $1.7 billion of capital expendituresFree cash flow was $1.2 billion
Cash Return and Working Capital
Paid $525 million in regular dividendsRepurchased $750 million of stockChanges in working capital and other items added approximately $100 million to the cash balance
First Quarter 2024 Operating Performance
Lease and Well
QoQ: Increased primarily due to workover and water handling expensesGuidance Midpoint: Relatively flat
Gathering, Processing and Transportation Costs
QoQ: Decreased primarily due to lower ratesGuidance Midpoint: Lower primarily due to optimization across processing capacity and lower compression expense due to lower fuel cost
General and Administrative
QoQ: Decreased due to lower employee-related expenses and professional feesGuidance Midpoint: Lower due to lower employee-related expenses
Depreciation, Depletion and Amortization
QoQ: Increased primarily due to a one-time adjustment related to natural gas production used by EOG-owned gathering systemsGuidance Midpoint: Higher primarily due to well mix
First Quarter 2024 Results vs Guidance
(Unaudited)
See “Endnotes” below for related discussion and definitions.
1Q 2024
1Q 2024
Guidance
Midpoint
Variance
4Q 2023
3Q 2023
2Q 2023
1Q 2023
Crude Oil and Condensate Volumes (MBod)
United States
486.8
486.0
0.8
484.6
482.8
476.0
457.1
Trinidad
0.6
0.3
0.3
0.6
0.5
0.6
0.6
Total
487.4
486.3
1.1
485.2
483.3
476.6
457.7
Natural Gas Liquids Volumes (MBbld)
Total
231.7
228.0
3.7
235.8
231.1
215.7
212.2
Natural Gas Volumes (MMcfd)
United States
1,658
1,650
8
1,653
1,562
1,513
1,475
Trinidad
200
185
15
178
142
155
164
Total
1,858
1,835
23
1,831
1,704
1,668
1,639
Total Crude Oil Equivalent Volumes (MBoed)
1,028.8
1,020.1
8.7
1,026.2
998.5
970.3
943.0
Total MMBoe
93.6
92.8
0.8
94.4
91.9
88.3
84.9
Benchmark Price
Oil (WTI) ($/Bbl)
76.97
78.33
82.18
73.75
76.11
Natural Gas (HH) ($/Mcf)
2.24
2.87
2.55
2.09
3.43
Crude Oil and Condensate – above (below) WTI3 ($/Bbl)
United States
1.49
1.50
(0.01)
2.28
1.43
1.23
1.16
Trinidad
(9.47)
(9.35)
(0.12)
(9.12)
(10.80)
(8.87)
(7.13)
Natural Gas Liquids – Realizations as % of WTI
Total
31.6 %
32.0 %
-0.4 %
28.5 %
28.7 %
28.3 %
33.7 %
Natural Gas – above (below) NYMEX Henry Hub4 ($/Mcf)
United States
(0.14)
(0.10)
(0.04)
(0.15)
0.04
(0.02)
0.04
Natural Gas Realizations ($/Mcf)
Trinidad
3.54
3.45
0.09
3.81
3.41
3.45
3.87
Total Expenditures (GAAP) ($MM)
1,952
1,634
1,803
1,664
1,717
Capital Expenditures (non-GAAP) ($MM)
1,703
1,700
3
1,512
1,519
1,521
1,489
Operating Unit Costs ($/Boe)
Lease and Well
4.23
4.20
0.03
4.00
4.02
3.94
4.23
Gathering, Processing and Transportation Costs2
4.41
4.60
(0.19)
4.49
4.42
4.48
4.65
General and Administrative
1.73
1.85
(0.12)
2.03
1.75
1.61
1.71
Cash Operating Costs
10.37
10.65
(0.28)
10.52
10.19
10.03
10.59
Depreciation, Depletion and Amortization
11.47
11.40
0.07
9.85
9.78
9.81
9.40
Expenses ($MM)
Exploration and Dry Hole
46
50
(4)
41
43
47
51
Impairment (GAAP)
19
79
54
35
34
Impairment (excluding certain impairments (non-GAAP))5
17
70
(53)
60
31
35
34
Capitalized Interest
10
9
1
9
8
8
8
Net Interest
33
35
(2)
35
36
35
42
TOTI (% of Wellhead Revenue)
7.7
8.0 %
(0.3 %)
6.6 %
7.4 %
7.8 %
7.8 %
Income Taxes
Effective Rate
22.2 %
22.5 %
(0.3 %)
21.6 %
21.1 %
21.9 %
22.0 %
Current Tax (Benefit) / Expense ($MM)
312
320
(8)
352
486
241
338
Second Quarter and Full-Year 2024 Guidance6
(Unaudited)
See “Endnotes” below for related discussion and definitions.
2Q 2024
Guidance Range
2Q 2024
Midpoint
FY 2024
Guidance Range
FY 2024
Midpoint
2023
Actual
2022
Actual
2021
Actual
Crude Oil and Condensate Volumes (MBod)
United States
485.0
–
490.0
487.5
485.0
–
490.0
487.5
475.2
460.7
443.4
Trinidad
0.3
–
0.7
0.5
0.5
–
1.5
1.0
0.6
0.6
1.5
Other International
0.0
–
0.0
0.0
0.0
–
0.0
0.0
0.0
0.0
0.1
Total
485.3
–
490.7
488.0
485.5
–
491.5
488.5
475.8
461.3
445.0
Natural Gas Liquids Volumes (MBbld)
Total
227.0
–
237.0
232.0
220.0
–
250.0
235.0
223.8
197.7
144.5
Natural Gas Volumes (MMcfd)
United States
1,630
–
1,690
1,660
1,640
–
1,770
1,705
1,551
1,315
1,210
Trinidad
190
–
210
200
200
–
230
215
160
180
217
Other International
0
–
0
0
0
–
0
0
0
0
9
Total
1,820
–
1,900
1,860
1,840
–
2,000
1,920
1,711
1,495
1,436
Crude Oil Equivalent Volumes (MBoed)
United States
983.7
–
1,008.7
996.2
978.3
–
1,035.0
1,006.7
957.5
877.5
789.6
Trinidad
32.0
–
35.7
33.9
33.8
–
39.8
36.8
27.3
30.7
37.7
Other International
0.0
–
0.0
0.0
0.0
–
0.0
0.0
0.0
0.0
1.6
Total
1,015.7
–
1,044.4
1,030.1
1,012.1
–
1,074.8
1,043.5
984.8
908.2
828.9
Benchmark Price
Oil (WTI) ($/Bbl)
77.61
94.23
67.96
Natural Gas (HH) ($/Mcf)
2.74
6.64
3.85
Crude Oil and Condensate – above (below) WTI3 ($/Bbl)
United States
1.00
–
2.50
1.75
0.40
–
2.40
1.40
1.57
2.99
0.58
Trinidad
(11.20)
–
(9.70)
(10.45)
(11.40)
–
(9.40)
(10.40)
(9.03)
(8.07)
(11.70)
Natural Gas Liquids – Realizations as % of WTI
Total
24.0 %
–
34.0 %
29.0 %
26.0 %
–
36.0 %
31.0 %
29.7 %
39.0 %
50.5 %
Natural Gas – above (below) NYMEX Henry Hub4 ($/Mcf)
United States
(0.80)
–
0.00
(0.40)
(1.50)
–
0.80
(0.35)
(0.04)
0.63
1.03
Natural Gas Realizations7 ($/Mcf)
Trinidad
3.00
–
3.70
3.35
3.00
–
4.00
3.50
3.65
4.43
3.40
Total Expenditures (GAAP) ($MM)
6,818
5,610
4,255
Capital Expenditures8 (non-GAAP) ($MM)
1,700
–
1,800
1,750
6,000
–
6,400
6,200
6,041
4,607
3,755
Operating Unit Costs ($/Boe)
Lease and Well
4.00
–
4.45
4.23
3.90
–
4.60
4.25
4.05
4.02
3.75
Gathering, Processing and Transportation Costs2
4.25
–
4.75
4.50
4.20
–
4.90
4.55
4.50
4.78
4.70
General and Administrative (GAAP)
1.60
–
1.90
1.75
1.70
–
1.95
1.83
1.78
1.72
1.69
General and Administrative (non-GAAP)9
1.78
1.67
1.69
Cash Operating Costs (GAAP)
9.85
–
11.10
10.48
9.80
–
11.45
10.63
10.33
10.52
10.14
Cash Operating Costs (non-GAAP)
10.33
10.47
10.14
Depreciation, Depletion and Amortization
10.00
–
11.00
10.50
10.00
–
11.00
10.50
9.72
10.69
12.07
Expenses ($MM)
Exploration and Dry Hole
30
–
70
50
175
–
225
200
182
204
225
Impairment (GAAP)
202
382
376
Impairment (excluding certain impairments (non-GAAP))5
30
–
110
70
160
–
240
200
160
269
361
Capitalized Interest
9
–
13
11
42
–
47
45
33
36
33
Net Interest
31
–
35
33
125
–
135
130
148
179
178
TOTI (% of Wellhead Revenue) (GAAP)
7.0 %
–
9.0 %
8.0 %
7.0 %
–
9.0 %
8.0 %
7.4 %
7.0 %
6.8 %
TOTI (% of Wellhead Revenue) (non-GAAP)9
7.4 %
7.5 %
6.8 %
Income Taxes
Effective Rate
19.0 %
–
24.0 %
21.5 %
19.0 %
–
24.0 %
21.5 %
21.6 %
21.7 %
21.4 %
Current Tax Expense ($MM)
390
–
490
440
1,340
–
1,640
1,490
1,415
2,208
1,393
First Quarter 2024 Results Webcast
Friday, May 3, 2024, 9:00 a.m. Central time (10:00 a.m. Eastern time) Webcast will be available on EOG’s website for one year. http://investors.eogresources.com/Investors
About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad. To learn more visit www.eogresources.com.
Investor Contacts
Pearce Hammond 713-571-4684
Neel Panchal 713-571-4884
Shelby O’Connor 713-571-4560
Media Contact
Kimberly Ehmer 713-571-4676
Endnotes
1)
Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions (for GAAP earnings per share only), other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.
2)
Effective January 1, 2024, EOG combined Transportation Costs and Gathering and Processing Costs into one line item titled Gathering, Processing and Transportation Costs. This presentation has been conformed for all periods presented and had no impact on previously reported Net Income.
3)
EOG bases United States and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.
4)
EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the NYMEX Last Day Settle price for each of the applicable months.
5)
In general, EOG excludes impairments which are (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG’s oil and gas properties or other assets). EOG believes excluding these impairments from total impairment costs is appropriate and provides useful information to investors, as such impairments were caused by factors outside of EOG’s control (versus, for example, impairments that are due to EOG’s proved oil and gas properties not being as productive as it originally estimated).
6)
The forecast items for the second quarter and full year 2024 set forth above for EOG are based on currently available information and expectations as of the date of this press release. EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. This forecast, which should be read in conjunction with this press release and EOG’s related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.
7)
The full-year 2022 realized natural gas price for Trinidad includes a one-time pricing adjustment of $0.76/Mcf for prior-period production following a contract amendment with the National Gas Company of Trinidad and Tobago Limited (NGC).
8)
The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs, Non-Cash Exchanges and Transactions and exploration costs incurred as operating expenses.
9)
2022 TOTI (% of Wellhead Revenue) (non-GAAP) and General and Administrative Costs (non-GAAP) exclude a state severance tax refund and related consulting fees, respectively, as reflected in the accompanying Adjusted Net Income (Loss) reconciliation schedule.
Glossary
Acq
Acquisitions
ATROR
After-tax rate of return
Bbl
Barrel
Bn
Billion
Boe
Barrels of oil equivalent
Bopd
Barrels of oil per day
CAGR
Compound annual growth rate
Capex
Capital expenditures
CFO
Cash flow provided by operating activities before changes in working capital
CO2e
Carbon dioxide equivalent
DD&A
Depreciation, Depletion and Amortization
Disc
Discoveries
Divest
Divestitures
EPS
Earnings per share
Ext
Extensions
G&A
General and administrative expense
GHG
Greenhouse gas
GP&T
Gathering, processing & transportation expense
HH
Henry Hub
LOE
Lease operating expense, or lease and well expense
MBbld
Thousand barrels of liquids per day
MBod
Thousand barrels of oil per day
MBoe
Thousand barrels of oil equivalent
MBoed
Thousand barrels of oil equivalent per day
Mcf
Thousand cubic feet of natural gas
MMBoe
Million barrels of oil equivalent
MMcfd
Million cubic feet of natural gas per day
NGLs
Natural gas liquids
NYMEX
U.S. New York Mercantile Exchange
OTP
Other than price
QoQ
Quarter over quarter
TOTI
Taxes other than income
USD
United States dollar
WTI
West Texas Intermediate
YoY
Year over year
$MM
Million United States dollars
$/Bbl
U.S. Dollars per barrel
$/Boe
U.S. Dollars per barrel of oil equivalent
$/Mcf
U.S. Dollars per thousand cubic feet
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG’s future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, operating costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG’s management for future operations, are forward-looking statements. EOG typically uses words such as “expect,” “anticipate,” “estimate,” “project,” “strategy,” “intend,” “plan,” “target,” “aims,” “ambition,” “initiative,” “goal,” “may,” “will,” “focused on,” “should” and “believe” or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG’s future financial or operating results and returns or EOG’s ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, pay and/or increase regular and/or special dividends or repurchase shares are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG’s forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG’s control. Important factors that could cause EOG’s actual results to differ materially from the expectations reflected in EOG’s forward-looking statements include, among others:
the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities;the extent to which EOG is successful in its efforts to acquire or discover additional reserves;the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;the success of EOG’s cost-mitigation initiatives and actions in offsetting the impact of inflationary pressures on EOG’s operating costs and capital expenditures;the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas;security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business, and enhanced regulatory focus on prevention and disclosure requirements relating to cyber incidents;the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities;the availability, cost, terms and timing of issuance or execution of mineral licenses and leases and governmental and other permits and rights-of- way, and EOG’s ability to retain mineral licenses and leases;the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax and emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;the impact of climate change-related policies and initiatives at the corporate and/or investor community levels and other potential developments related to climate change, such as (but not limited to) changes in consumer and industrial/commercial behavior, preferences and attitudes with respect to the generation and consumption of energy; increased availability of, and increased consumer and industrial/commercial demand for, competing energy sources (including alternative energy sources); technological advances with respect to the generation, transmission, storage and consumption of energy; alternative fuel requirements; energy conservation measures and emissions-related legislation; decreased demand for, and availability of, services and facilities related to the exploration for, and production of, crude oil, NGLs and natural gas; and negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, crude oil, NGLs and natural gas;continuing political and social concerns relating to climate change and the greater potential for shareholder activism, governmental inquiries and enforcement actions and litigation and the resulting expenses and potential disruption to EOG’s day-to-day operations;the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other ESG-related initiatives and achieve its related targets, ambitions and initiatives;EOG’s ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to such properties;the extent to which EOG’s third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations;competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties;the availability and cost of, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services; the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities;the ability of EOG’s customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;EOG’s ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;the extent to which EOG is successful in its completion of planned asset dispositions;the extent and effect of any hedging activities engaged in by EOG;the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;the duration and economic and financial impact of epidemics, pandemics or other public health issues;geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflicts), including in the areas in which EOG operates;the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;acts of war and terrorism and responses to these acts; andthe other factors described under ITEM 1A, Risk Factors of EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and any updates to those factors set forth in EOG’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
In light of these risks, uncertainties and assumptions, the events anticipated by EOG’s forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG’s forward-looking statements. EOG’s forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.
Historical Non-GAAP Financial Measures:
Reconciliation schedules and definitions for the historical non-GAAP financial measures included or referenced herein as well as related discussion can be found on the EOG website at www.eogresources.com.
Cautionary Notice Regarding Forward-Looking Non-GAAP Financial Measures:
In addition, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow, cash flow provided by operating activities before changes in working capital and return on capital employed, and certain related estimates regarding future performance, commodity prices and operating and financial results. Because we provide these measures on a forward-looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future changes in working capital and future impairments. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures without unreasonable efforts. Management believes these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing EOG’s forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG’s actual results may differ materially from such measures and estimates.
Oil and Gas Reserves:
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only “proved” reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also “probable” reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as “possible” reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include “potential” reserves, “resource potential” and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC’s latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (and any updates to such disclosure set forth in EOG’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K), 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.
Income Statements
In millions of USD, except share data (in millions) and per share data (Unaudited)
2023
2024
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Operating Revenues and Other
Crude Oil and Condensate
3,182
3,252
3,717
3,597
13,748
3,480
3,480
Natural Gas Liquids
490
409
501
484
1,884
513
513
Natural Gas
517
334
417
476
1,744
382
382
Gains on Mark-to-Market Financial
Commodity and Other Derivative
Contracts, Net
376
101
43
298
818
237
237
Gathering, Processing and Marketing
1,390
1,465
1,478
1,473
5,806
1,459
1,459
Gains (Losses) on Asset Dispositions,
Net
69
(9)
35
—
95
26
26
Other, Net
20
21
21
29
91
26
26
Total
6,044
5,573
6,212
6,357
24,186
6,123
6,123
Operating Expenses
Lease and Well
359
348
369
378
1,454
396
396
Gathering, Processing and
Transportation Costs (A)
395
396
406
423
1,620
413
413
Exploration Costs
50
47
43
41
181
45
45
Dry Hole Costs
1
—
—
—
1
1
1
Impairments
34
35
54
79
202
19
19
Marketing Costs
1,361
1,456
1,383
1,509
5,709
1,404
1,404
Depreciation, Depletion and
Amortization
798
866
898
930
3,492
1,074
1,074
General and Administrative
145
142
161
192
640
162
162
Taxes Other Than Income
329
313
341
301
1,284
338
338
Total
3,472
3,603
3,655
3,853
14,583
3,852
3,852
Operating Income
2,572
1,970
2,557
2,504
9,603
2,271
2,271
Other Income, Net
65
51
52
66
234
62
62
Income Before Interest Expense and
Income Taxes
2,637
2,021
2,609
2,570
9,837
2,333
2,333
Interest Expense, Net
42
35
36
35
148
33
33
Income Before Income Taxes
2,595
1,986
2,573
2,535
9,689
2,300
2,300
Income Tax Provision
572
433
543
547
2,095
511
511
Net Income
2,023
1,553
2,030
1,988
7,594
1,789
1,789
Dividends Declared per Common Share
1.8250
0.8250
0.8250
2.4100
5.8850
0.9100
0.9100
Net Income Per Share
Basic
3.46
2.68
3.51
3.43
13.07
3.11
3.11
Diluted
3.45
2.66
3.48
3.42
13.00
3.10
3.10
Average Number of Common Shares
Basic
584
580
579
579
581
575
575
Diluted
587
584
583
581
584
577
577
(A)
Effective January 1, 2024, EOG combined Transportation Costs and Gathering and Processing Costs into one line item titled Gathering, Processing and Transportation Costs. This presentation has been conformed for all periods presented and had no impact on previously reported Net Income.
Wellhead Volumes and Prices
(Unaudited)
2023
2024
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Crude Oil and Condensate Volumes (MBbld) (A)
United States
457.1
476.0
482.8
484.6
475.2
486.8
486.8
Trinidad
0.6
0.6
0.5
0.6
0.6
0.6
0.6
Total
457.7
476.6
483.3
485.2
475.8
487.4
487.4
Average Crude Oil and Condensate Prices
($/Bbl) (B)
United States
$ 77.27
$ 74.98
$ 83.61
$ 80.61
$ 79.18
$ 78.46
$ 78.46
Trinidad
68.98
64.88
71.38
69.21
65.58
67.50
67.50
Composite
77.26
74.97
83.60
80.60
79.17
78.45
78.45
Natural Gas Liquids Volumes (MBbld) (A)
United States
212.2
215.7
231.1
235.8
223.8
231.7
231.7
Total
212.2
215.7
231.1
235.8
223.8
231.7
231.7
Average Natural Gas Liquids Prices ($/Bbl) (B)
United States
$ 25.67
$ 20.85
$ 23.56
$ 22.29
$ 23.07
$ 24.32
$ 24.32
Composite
25.67
20.85
23.56
22.29
23.07
24.32
24.32
Natural Gas Volumes (MMcfd) (A)
United States
1,475
1,513
1,562
1,653
1,551
1,658
1,658
Trinidad
164
155
142
178
160
200
200
Total
1,639
1,668
1,704
1,831
1,711
1,858
1,858
Average Natural Gas Prices ($/Mcf) (B)
United States
$ 3.47
$ 2.07
$ 2.59
$ 2.72
$ 2.70
$ 2.10
$ 2.10
Trinidad
3.87
3.45
3.41
3.81
3.65
3.54
3.54
Composite
3.51
2.20
2.66
2.82
2.79
2.26
2.26
Crude Oil Equivalent Volumes (MBoed) (C)
United States
915.0
943.8
974.2
995.8
957.5
994.7
994.7
Trinidad
28.0
26.5
24.3
30.4
27.3
34.1
34.1
Total
943.0
970.3
998.5
1,026.2
984.8
1,028.8
1,028.8
Total MMBoe (C)
84.9
88.3
91.9
94.4
359.4
93.6
93.6
(A)
Thousand barrels per day or million cubic feet per day, as applicable.
(B)
Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments (see Note 12 to the Condensed Consolidated Financial Statements in EOG’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024).
(C)
Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, NGLs and natural gas. Crude oil equivalent volumes are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas. MMBoe is calculated by multiplying the MBoed amount by the number of days in the period and then dividing that amount by one thousand.
Balance Sheets
In millions of USD (Unaudited)
2023
2024
MAR
JUN
SEP
DEC
MAR
JUN
SEP
DEC
Current Assets
Cash and Cash Equivalents
5,018
4,764
5,326
5,278
5,292
Accounts Receivable, Net
2,455
2,263
2,927
2,716
2,688
Inventories
1,131
1,355
1,379
1,275
1,154
Assets from Price Risk Management Activities
—
—
—
106
110
Income Taxes Receivable
—
1
—
—
—
Other
580
523
626
560
684
Total
9,184
8,906
10,258
9,935
9,928
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method)
67,907
69,178
70,730
72,090
73,356
Other Property, Plant and Equipment
5,101
5,282
5,355
5,497
5,768
Total Property, Plant and Equipment
73,008
74,460
76,085
77,587
79,124
Less: Accumulated Depreciation, Depletion and
Amortization
(42,785)
(43,550)
(44,362)
(45,290)
(46,047)
Total Property, Plant and Equipment, Net
30,223
30,910
31,723
32,297
33,077
Deferred Income Taxes
31
33
33
42
38
Other Assets
1,587
1,638
1,633
1,583
1,753
Total Assets
41,025
41,487
43,647
43,857
44,796
Current Liabilities
Accounts Payable
2,438
2,205
2,464
2,437
2,389
Accrued Taxes Payable
637
425
605
466
786
Dividends Payable
482
478
478
526
523
Liabilities from Price Risk Management Activities
31
22
22
—
—
Current Portion of Long-Term Debt
33
34
34
34
34
Current Portion of Operating Lease Liabilities
354
335
337
325
318
Other
253
232
285
286
223
Total
4,228
3,731
4,225
4,074
4,273
Long-Term Debt
3,787
3,780
3,772
3,765
3,757
Other Liabilities
2,620
2,581
2,698
2,526
2,533
Deferred Income Taxes
4,943
5,138
5,194
5,402
5,597
Commitments and Contingencies
Stockholders’ Equity
Common Stock, $0.01 Par
206
206
206
206
206
Additional Paid in Capital
6,219
6,257
6,133
6,166
6,188
Accumulated Other Comprehensive Loss
(8)
(9)
(7)
(9)
(8)
Retained Earnings
19,423
20,497
22,047
22,634
23,897
Common Stock Held in Treasury
(393)
(694)
(621)
(907)
(1,647)
Total Stockholders’ Equity
25,447
26,257
27,758
28,090
28,636
Total Liabilities and Stockholders’ Equity
41,025
41,487
43,647
43,857
44,796
Cash Flow Statements
In millions of USD (Unaudited)
2023
2024
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash
Provided by Operating Activities:
Net Income
2,023
1,553
2,030
1,988
7,594
1,789
1,789
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization
798
866
898
930
3,492
1,074
1,074
Impairments
34
35
54
79
202
19
19
Stock-Based Compensation Expenses
34
35
57
51
177
45
45
Deferred Income Taxes
234
194
56
199
683
199
199
(Gains) Losses on Asset Dispositions, Net
(69)
9
(35)
—
(95)
(26)
(26)
Other, Net
4
2
(1)
22
27
9
9
Dry Hole Costs
1
—
—
—
1
1
1
Mark-to-Market Financial Commodity and Other
Derivative Contracts Gains, Net
(376)
(101)
(43)
(298)
(818)
(237)
(237)
Net Cash Received from (Payments for)
Settlements of Financial Commodity
Derivative Contracts
(123)
(30)
23
18
(112)
55
55
Other, Net
(1)
—
(1)
—
(2)
—
—
Changes in Components of Working Capital and
Other Assets and Liabilities
Accounts Receivable
338
137
(714)
201
(38)
58
58
Inventories
(77)
(226)
(28)
100
(231)
117
117
Accounts Payable
(77)
(231)
238
(49)
(119)
(58)
(58)
Accrued Taxes Payable
232
(212)
180
(139)
61
319
319
Other Assets
52
43
(92)
36
39
(161)
(161)
Other Liabilities
193
(47)
54
(16)
184
(71)
(71)
Changes in Components of Working Capital
Associated with Investing Activities
35
250
28
(18)
295
(229)
(229)
Net Cash Provided by Operating Activities
3,255
2,277
2,704
3,104
11,340
2,903
2,903
Investing Cash Flows
Additions to Oil and Gas Properties
(1,305)
(1,341)
(1,379)
(1,360)
(5,385)
(1,485)
(1,485)
Additions to Other Property, Plant and
Equipment
(319)
(180)
(139)
(162)
(800)
(350)
(350)
Proceeds from Sales of Assets
92
29
14
5
140
9
9
Changes in Components of Working Capital
Associated with Investing Activities
(35)
(250)
(28)
18
(295)
229
229
Net Cash Used in Investing Activities
(1,567)
(1,742)
(1,532)
(1,499)
(6,340)
(1,597)
(1,597)
Financing Cash Flows
Long-Term Debt Repayments
(1,250)
—
—
—
(1,250)
—
—
Dividends Paid
(1,067)
(480)
(494)
(1,345)
(3,386)
(525)
(525)
Treasury Stock Purchased
(317)
(302)
(109)
(310)
(1,038)
(759)
(759)
Proceeds from Stock Options Exercised and
Employee Stock Purchase Plan
—
9
1
10
20
—
—
Debt Issuance Costs
—
(8)
—
—
(8)
—
—
Repayment of Finance Lease Liabilities
(8)
(8)
(8)
(8)
(32)
(8)
(8)
Net Cash Used in Financing Activities
(2,642)
(789)
(610)
(1,653)
(5,694)
(1,292)
(1,292)
Effect of Exchange Rate Changes on Cash
—
—
—
—
—
—
—
Increase (Decrease) in Cash and Cash Equivalents
(954)
(254)
562
(48)
(694)
14
14
Cash and Cash Equivalents at Beginning of Period
5,972
5,018
4,764
5,326
5,972
5,278
5,278
Cash and Cash Equivalents at End of Period
5,018
4,764
5,326
5,278
5,278
5,292
5,292
Non-GAAP Financial Measures
To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles in the United States of America (GAAP), EOG’s quarterly earnings releases and related conference calls, accompanying investor presentation slides and presentation slides for investor conferences contain certain financial measures that are not prepared or presented in accordance with GAAP. These non-GAAP financial measures may include, but are not limited to, Adjusted Net Income, Cash Flow from Operations Before Changes in Working Capital, Free Cash Flow, Net Debt and related statistics.
A reconciliation of each of these measures to their most directly comparable GAAP financial measure and related discussion is included in the tables on the following pages and can also be found in the “Reconciliations & Guidance” section of the “Investors” page of the EOG website at www.eogresources.com.
As further discussed in the tables on the following pages, EOG believes these measures may be useful to investors who follow the practice of some industry analysts who make certain adjustments to GAAP measures (for example, to exclude non-recurring items) to facilitate comparisons to others in EOG’s industry, and who utilize non-GAAP measures in their calculations of certain statistics (for example, return on capital employed and return on equity) used to evaluate EOG’s performance.
EOG believes that the non-GAAP measures presented, when viewed in combination with its financial results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the company’s performance. As is discussed in the tables on the following pages, EOG uses these non-GAAP measures for purposes of (i) comparing EOG’s financial performance with the financial performance of other companies in the industry and (ii) analyzing EOG’s financial performance across periods.
The non-GAAP measures presented should not be considered in isolation, and should not be considered as a substitute for, or as an alternative to, EOG’s reported Net Income (Loss), Long-Term Debt (including Current Portion of Long-Term Debt), Net Cash Provided by Operating Activities and other financial results calculated in accordance with GAAP. The non-GAAP measures presented should be read in conjunction with EOG’s consolidated financial statements prepared in accordance with GAAP.
In addition, because not all companies use identical calculations, EOG’s presentation of non-GAAP measures may not be comparable to, and may be calculated differently from, similarly titled measures disclosed by other companies, including its peer companies. EOG may also change the calculation of one or more of its non-GAAP measures from time to time – for example, to account for changes in its business and operations or to more closely conform to peer company or industry analysts’ practices.
Direct ATROR
The calculation of EOG’s direct after-tax rate of return (ATROR) is based on EOG’s net estimated recoverable reserves for a particular well(s) or play, the estimated net present value of the future net cash flows from such reserves (for which EOG utilizes certain assumptions regarding future commodity prices and operating costs) and EOG’s direct net costs incurred in drilling or acquiring such well(s). As such, EOG’s direct ATROR for a particular well(s) or play cannot be calculated from EOG’s consolidated financial statements.
Adjusted Net Income
In millions of USD, except share data (in millions) and per share data (Unaudited)
The following tables adjust reported Net Income (Loss) (GAAP) to reflect actual net cash received from (payments for) settlements of
financial commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these and other derivative
transactions, to eliminate the net (gains) losses on asset dispositions, to add back impairment charges related to certain of EOG’s assets
(which are generally (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result
of certain other events or decisions (e.g., a periodic review of EOG’s oil and gas properties or other assets)), and to make certain other
adjustments to exclude non-recurring and certain other items as further described below. EOG believes this presentation may be useful
to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to
production settlement months and make certain other adjustments to exclude non-recurring and certain other items. EOG
management uses this information for purposes of comparing its financial performance with the financial performance of other
companies in the industry.
1Q 2024
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings
per Share
Reported Net Income (GAAP)
2,300
(511)
1,789
3.10
Adjustments:
Gains on Mark-to-Market Financial Commodity and Other Derivative
Contracts, Net
(237)
51
(186)
(0.31)
Net Cash Received from Settlements of Financial Commodity Derivative
Contracts (1)
55
(12)
43
0.07
Less: Gains on Asset Dispositions, Net
(26)
4
(22)
(0.04)
Add: Certain Impairments
2
—
2
—
Adjustments to Net Income
(206)
43
(163)
(0.28)
Adjusted Net Income (Non-GAAP)
2,094
(468)
1,626
2.82
Average Number of Common Shares (Non-GAAP)
Basic
575
Diluted
577
(1)
Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG adds to reported Net Income (Loss) (GAAP) the total net cash received from settlements of financial commodity derivative contracts during such period. For the three months ended March 31, 2024, such amount was $55 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
4Q 2023
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings
per Share
Reported Net Income (GAAP)
2,535
(547)
1,988
3.42
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net
(298)
64
(234)
(0.40)
Net Cash Received from Settlements of Financial Commodity Derivative
Contracts (1)
18
(4)
14
0.02
Add: Certain Impairments
19
(4)
15
0.03
Adjustments to Net Income
(261)
56
(205)
(0.35)
Adjusted Net Income (Non-GAAP)
2,274
(491)
1,783
3.07
Average Number of Common Shares (Non-GAAP)
Basic
579
Diluted
581
(1)
Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG adds to reported Net Income (Loss) (GAAP) the total net cash received from settlements of financial commodity derivative contracts during such period. For the three months ended December 31, 2023, such amount was $18 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
3Q 2023
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings
per Share
Reported Net Income (GAAP)
2,573
(543)
2,030
3.48
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net
(43)
9
(34)
(0.06)
Net Cash Received from Settlements of Financial Commodity Derivative
Contracts (1)
23
(5)
18
0.03
Less: Gains on Asset Dispositions, Net
(35)
7
(28)
(0.05)
Add: Certain Impairments
23
(2)
21
0.04
Adjustments to Net Income
(32)
9
(23)
(0.04)
Adjusted Net Income (Non-GAAP)
2,541
(534)
2,007
3.44
Average Number of Common Shares (Non-GAAP)
Basic
579
Diluted
583
(1)
Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG adds to reported Net Income (Loss) (GAAP) the total net cash received from settlements of financial commodity derivative contracts during such period. For the three months ended September 30, 2023, such amount was $23 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
2Q 2023
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings
per Share
Reported Net Income (GAAP)
1,986
(433)
1,553
2.66
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net
(101)
22
(79)
(0.14)
Net Cash Payments for Settlements of Financial Commodity Derivative
Contracts (1)
(30)
6
(24)
(0.04)
Add: Losses on Asset Dispositions, Net
9
(2)
7
0.01
Adjustments to Net Income
(122)
26
(96)
(0.17)
Adjusted Net Income (Non-GAAP)
1,864
(407)
1,457
2.49
Average Number of Common Shares (Non-GAAP)
Basic
580
Diluted
584
(1)
Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the three months ended June 30, 2023, such amount was $30 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
1Q 2023
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings
per Share
Reported Net Income (GAAP)
2,595
(572)
2,023
3.45
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net
(376)
81
(295)
(0.51)
Net Cash Payments for Settlements of Financial Commodity Derivative
Contracts (1)
(123)
27
(96)
(0.16)
Less: Gains on Asset Dispositions, Net
(69)
15
(54)
(0.09)
Adjustments to Net Income
(568)
123
(445)
(0.76)
Adjusted Net Income (Non-GAAP)
2,027
(449)
1,578
2.69
Average Number of Common Shares (Non-GAAP)
Basic
584
Diluted
587
(1)
Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the three months ended March 31, 2023, such amount was $123 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
FY 2023
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings per
Share
Reported Net Income (GAAP)
9,689
(2,095)
7,594
13.00
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net
(818)
176
(642)
(1.09)
Net Cash Payments for Settlements of Financial Commodity Derivative
Contracts (1)
(112)
24
(88)
(0.15)
Less: Gains on Asset Dispositions, Net
(95)
20
(75)
(0.13)
Add: Certain Impairments
42
(6)
36
0.06
Adjustments to Net Income
(983)
214
(769)
(1.31)
Adjusted Net Income (Non-GAAP)
8,706
(1,881)
6,825
11.69
Average Number of Common Shares (Non-GAAP)
Basic
581
Diluted
584
(1)
Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the twelve months ended December 31, 2023, such amount was $112 million.
Adjusted Net Income
(Continued)
In millions of USD, except share data (in millions) and per share data (Unaudited)
FY 2022
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings per
Share
Reported Net Income (GAAP)
9,901
(2,142)
7,759
13.22
Adjustments:
Losses on Mark-to-Market Financial Commodity Derivative Contracts, Net
3,982
(858)
3,124
5.32
Net Cash Payments for Settlements of Financial Commodity Derivative
Contracts (1)
(3,501)
755
(2,746)
(4.68)
Less: Gains on Asset Dispositions, Net
(74)
17
(57)
(0.10)
Add: Certain Impairments
113
(31)
82
0.14
Less: Severance Tax Refund
(115)
25
(90)
(0.15)
Add: Severance Tax Consulting Fees
16
(3)
13
0.02
Less: Interest on Severance Tax Refund
(7)
2
(5)
(0.01)
Adjustments to Net Income
414
(93)
321
0.54
Adjusted Net Income (Non-GAAP)
10,315
(2,235)
8,080
13.76
Average Number of Common Shares (Non-GAAP)
Basic
583
Diluted
587
(1)
Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the twelve months ended December 31, 2022, such amount was $3,501 million, of which $1,391 million was related to the early termination of certain contracts.
Net Income per Share
In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
4Q 2023 Net Income per Share (GAAP) – Diluted
3.42
Realized Price
1Q 2024 Composite Average Wellhead Revenue per Boe
46.73
Less: 4Q 2023 Composite Average Wellhead Revenue per Boe
(48.27)
Subtotal
(1.54)
Multiplied by: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe)
93.6
Total Change in Revenue
(144)
Add: Income Tax Benefit (Provision) Imputed (based on 22%)
32
Change in Net Income
(112)
Change in Diluted Earnings per Share
(0.19)
Wellhead Volumes
1Q 2024 Crude Oil Equivalent Volumes (MMBoe)
93.6
Less: 4Q 2023 Crude Oil Equivalent Volumes (MMBoe)
(94.4)
Subtotal
(0.8)
Multiplied by: 1Q 2024 Composite Average Margin per Boe (GAAP) (Including Total
Exploration Costs) (refer to “Revenues, Costs and Margins Per Barrel of Oil Equivalent”
schedule located in the “Reconciliations & Guidance” section of the “Investors” page of the
EOG website)
20.24
Change in Margin
(16)
Add: Income Tax Benefit (Provision) Imputed (based on 22%)
4
Change in Net Income
(12)
Change in Diluted Earnings per Share
(0.02)
Certain Operating Costs per Boe
4Q 2023 Total Cash Operating Costs (GAAP) and Total DD&A per Boe
20.37
Less: 1Q 2024 Total Cash Operating Costs (GAAP) and Total DD&A per Boe
(21.84)
Subtotal
(1.47)
Multiplied by: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe)
93.6
Change in Before-Tax Net Income
(138)
Add: Income Tax Benefit (Provision) Imputed (based on 22%)
30
Change in Net Income
(108)
Change in Diluted Earnings per Share
(0.19)
Net Income Per Share
(Continued)
In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
Gains (Losses) on Mark-to-Market Financial Commodity and Other Derivative Contracts, Net
1Q 2024 Net Gains (Losses) on Mark-to-Market Financial Commodity and Other Derivative
Contracts
237
Less: Income Tax Benefit (Provision)
(51)
After Tax – (a)
186
Less: 4Q 2023 Net Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts
298
Less: Income Tax Benefit (Provision)
(64)
After Tax – (b)
234
Change in Net Income – (a) – (b)
(48)
Change in Diluted Earnings per Share
(0.08)
Other (1)
0.16
1Q 2024 Net Income per Share (GAAP) – Diluted
3.10
1Q 2024 Average Number of Common Shares (GAAP) – Diluted
577
(1)
Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions, other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.
Adjusted Net Income Per Share
In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
4Q 2023 Adjusted Net Income per Share (Non-GAAP) – Diluted
3.07
Realized Price
1Q 2024 Composite Average Wellhead Revenue per Boe
46.73
Less: 4Q 2023 Composite Average Wellhead Revenue per Boe
(48.27)
Subtotal
(1.54)
Multiplied by: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe)
93.6
Total Change in Revenue
(144)
Add: Income Tax Benefit (Provision) Imputed (based on 22%)
32
Change in Net Income
(112)
Change in Diluted Earnings per Share
(0.19)
Wellhead Volumes
1Q 2024 Crude Oil Equivalent Volumes (MMBoe)
93.6
Less: 4Q 2023 Crude Oil Equivalent Volumes (MMBoe)
(94.4)
Subtotal
(0.8)
Multiplied by: 1Q 2024 Composite Average Margin per Boe (Non-GAAP) (Including Total
Exploration Costs) (refer to “Revenues, Costs and Margins Per Barrel of Oil Equivalent”
schedule located in the “Reconciliations & Guidance” section of the “Investors” page of the
EOG website)
20.26
Change in Margin
(16)
Add: Income Tax Benefit (Provision) Imputed (based on 22%)
4
Change in Net Income
(12)
Change in Diluted Earnings per Share
(0.02)
Certain Operating Costs per Boe
4Q 2023 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe
20.37
Less: 1Q 2024 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe
(21.84)
Subtotal
(1.47)
Multiplied by: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe)
93.6
Change in Before-Tax Net Income
(138)
Add: Income Tax Benefit (Provision) Imputed (based on 22%)
30
Change in Net Income
(108)
Change in Diluted Earnings per Share
(0.19)
Adjusted Net Income Per Share
(Continued)
In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative Contracts
1Q 2024 Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative
Contracts
55
Less: Income Tax Benefit (Provision)
(12)
After Tax – (a)
43
4Q 2023 Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative
Contracts
18
Less: Income Tax Benefit (Provision)
(4)
After Tax – (b)
14
Change in Net Income – (a) – (b)
29
Change in Diluted Earnings per Share
0.05
Other (1)
0.10
1Q 2024 Adjusted Net Income per Share (Non-GAAP)
2.82
1Q 2024 Average Number of Common Shares (Non-GAAP) – Diluted
577
(1)
Includes gathering, processing and marketing revenue, other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.
Cash Flow from Operations and Free Cash Flow
In millions of USD (Unaudited)
The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Cash Flow from Operations Before Changes in Working Capital (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 Changes in Components of Working Capital and Other Assets and Liabilities, Changes in Components of Working Capital
Associated with Investing Activities and certain other adjustments to exclude non-recurring and certain other items as further described below. EOG
defines Free Cash Flow (Non-GAAP) for a given period as Cash Flow from Operations Before Changes in Working Capital (Non-GAAP) (see below
reconciliation) for such period less the Total Capital Expenditures (Non-GAAP) during such period, as is illustrated below. EOG management uses this
information for comparative purposes within the industry.
2023
2024
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Net Cash Provided by Operating Activities (GAAP)
3,255
2,277
2,704
3,104
11,340
2,903
2,903
Adjustments:
Changes in Components of Working Capital
and Other Assets and Liabilities
Accounts Receivable
(338)
(137)
714
(201)
38
(58)
(58)
Inventories
77
226
28
(100)
231
(117)
(117)
Accounts Payable
77
231
(238)
49
119
58
58
Accrued Taxes Payable
(232)
212
(180)
139
(61)
(319)
(319)
Other Assets
(52)
(43)
92
(36)
(39)
161
161
Other Liabilities
(193)
47
(54)
16
(184)
71
71
Changes in Components of Working Capital
Associated with Investing Activities
(35)
(250)
(28)
18
(295)
229
229
Cash Flow from Operations Before Changes in
Working Capital (Non-GAAP)
2,559
2,563
3,038
2,989
11,149
2,928
2,928
Less:
Total Capital Expenditures (Non-GAAP) (a)
(1,489)
(1,521)
(1,519)
(1,512)
(6,041)
(1,703)
(1,703)
Free Cash Flow (Non-GAAP)
1,070
1,042
1,519
1,477
5,108
1,225
1,225
(a) See below reconciliation of Total Expenditures (GAAP) to Total Capital Expenditures (Non-GAAP):
2023
2024
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
Total Expenditures (GAAP)
1,717
1,664
1,803
1,634
6,818
1,952
1,952
Less:
Asset Retirement Costs
(10)
(26)
(191)
(30)
(257)
(21)
(21)
Non-Cash Development Drilling
—
(35)
(50)
(5)
(90)
—
—
Non-Cash Acquisition Costs of Unproved Properties
(31)
(28)
(1)
(39)
(99)
(31)
(31)
Acquisition Costs of Proved Properties
(4)
(6)
1
(7)
(16)
(21)
(21)
Acquisition Costs of Other Property,
Plant and Equipment
(133)
(1)
—
—
(134)
(131)
(131)
Exploration Costs
(50)
(47)
(43)
(41)
(181)
(45)
(45)
Total Capital Expenditures (Non-GAAP)
1,489
1,521
1,519
1,512
6,041
1,703
1,703
Net Debt-to-Total Capitalization Ratio
In millions of USD, except ratio data (Unaudited)
The following tables reconcile 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.
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
March 31,
2023
Total Stockholders’ Equity – (a)
28,636
28,090
27,758
26,257
25,447
Current and Long-Term Debt (GAAP) – (b)
3,791
3,799
3,806
3,814
3,820
Less: Cash
(5,292)
(5,278)
(5,326)
(4,764)
(5,018)
Net Debt (Non-GAAP) – (c)
(1,501)
(1,479)
(1,520)
(950)
(1,198)
Total Capitalization (GAAP) – (a) + (b)
32,427
31,889
31,564
30,071
29,267
Total Capitalization (Non-GAAP) – (a) + (c)
27,135
26,611
26,238
25,307
24,249
Debt-to-Total Capitalization (GAAP) – (b) / [(a) + (b)]
11.7 %
11.9 %
12.1 %
12.7 %
13.1 %
Net Debt-to-Total Capitalization (Non-GAAP) – (c) /
[(a) + (c)]
-5.5 %
-5.6 %
-5.8 %
-3.8 %
-4.9 %
View original content:https://www.prnewswire.com/news-releases/eog-resources-reports-first-quarter-2024-results-302134960.html
SOURCE EOG Resources, Inc.
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