EOG Resources Reports First Quarter 2024 Results

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.