August 1, 2024

EOG Resources Reports Second Quarter 2024 Results

HOUSTON, Aug. 1, 2024 /PRNewswire/ — EOG Resources, Inc. (EOG) today reported second 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

2Q 2024

6,025

1Q 2024

6,123

4Q 2023

6,357

3Q 2023

6,212

2Q 2023

5,573

Total Revenue

Net Income

1,690

1,789

1,988

2,030

1,553

Net Income Per Share

2.95

3.10

3.42

3.48

2.66

Net Cash Provided by Operating Activities

2,889

2,903

3,104

2,704

2,277

Total Expenditures

1,682

1,952

1,634

1,803

1,664

Current and Long-Term Debt

3,784

3,791

3,799

3,806

3,814

Cash and Cash Equivalents

5,431

5,292

5,278

5,326

4,764

Debt-to-Total Capitalization

11.5 %

11.7 %

11.9 %

12.1 %

12.7 %

Cash Operating Costs ($/Boe)

10.11

10.37

10.52

10.19

10.03

Non – GAAP

Adjusted Net Income

1,807

1,626

1,783

2,007

1,457

Adjusted Net Income Per Share

3.16

2.82

3.07

3.44

2.49

CFO before Changes in Working Capital

3,042

2,928

2,989

3,038

2,563

Capital Expenditures

1,668

1,703

1,512

1,519

1,521

Free Cash Flow

1,374

1,225

1,477

1,519

1,042

Net Debt

(1,647)

(1,501)

(1,479)

(1,520)

(950)

Net Debt-to-Total Capitalization

(6.0 %)

(5.5 %)

(5.6 %)

(5.8 %)

(3.8 %)

Second Quarter Highlights

Earned adjusted net income of $1.8 billion, or $3.16 per shareGenerated $1.4 billion of free cash flowDeclared regular quarterly dividend of $0.91 per shareRepurchased $690 million of shares, totaling $1.4 billion YTD as of June 30, 2024Volumes and per-unit operating costs better than guidance midpointsUpdated full-year guidance to reflect higher volumes and lower per-unit cash operating costs

Second Quarter 2024 Highlights and Cash Return

Volumes and Capital Expenditures

Wellhead Volumes

2Q 2024

2Q 2024
Guidance
Midpoint

1Q 2024

4Q 2023

3Q 2023

2Q 2023

Crude Oil and Condensate (MBod)

490.7

488.0

487.4

485.2

483.3

476.6

Natural Gas Liquids (MBbld)

244.8

232.0

231.7

235.8

231.1

215.7

Natural Gas (MMcfd)

1,872

1,860

1,858

1,831

1,704

1,668

Total Crude Oil Equivalent (MBoed)

1,047.5

1,030.1

1,028.8

1,026.2

998.5

970.3

Capital Expenditures ($MM)

1,668

1,750

1,703

1,512

1,519

1,521

From Ezra Yacob, Chairman and Chief Executive Officer
“EOG delivered another quarter of outstanding operational performance. Oil volumes, total volumes, and per-unit operating expenses were all better than expected. We have updated our full-year volume and cost guidance and increased our free cash flow forecast to reflect our strong results, further demonstrating the confidence we have in our multi-basin portfolio of assets.

“Our commitment to operational excellence continues to translate into financial results. Strong free cash flow generation in the quarter helped support $1.2 billion of capital return to shareholders through both our regular dividend and opportunistic share repurchases, all while maintaining our industry-leading balance sheet. Year-to-date we have made significant progress towards our minimum commitment of returning 70% of annual free cash flow to shareholders, with the potential to return additional cash over the balance of the year.

“Our performance this quarter is the result of EOG’s distinctive culture. Our employees’ focus on unlocking value across all facets of our business, including drilling and completion operations, marketing, and exploration, is our core competitive advantage. Our business has never been stronger. We continue to improve and create more value for our shareholders.”

Regular Dividend and Second 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 October 31, 2024, to stockholders of record as of October 17, 2024. The indicated annual rate is $3.64 per share.

During the second quarter, the company repurchased 5.5 million shares for $690 million under its share repurchase authorization, at an average purchase price of approximately $125 per share. As of June 30, 2024, EOG had $2.6 billion remaining on its current share buyback authorization.

Second Quarter 2024 Financial Performance

Prices

Crude oil prices increased in 2Q, partially offset by natural gas and NGL price declines compared with 1Q

Volumes

Total 2Q oil production of 490,700 Bopd was above the midpoint of the guidance range and up 1% from 1QNGL production was above the midpoint of the guidance range and up 6% from 1QNatural gas production was above the midpoint of the guidance range and up 1% from 1QTotal company equivalent production was above the midpoint of the guidance range and increased 2% from 1Q

Per-Unit Costs

LOE, G&A, and DD&A costs decreased in 2Q compared with 1Q, while GP&T expenses increased

Hedges

Mark-to-market gains decreased, lowering GAAP earnings per share in 2Q compared with 1QCash received to settle hedges increased adjusted non-GAAP earnings per share

Free Cash Flow

Cash flow from operations before changes in working capital was $3.04 billionEOG incurred $1.67 billion of capital expendituresFree cash flow was $1.37 billion

Cash Return and Working Capital

Paid $520 million in regular dividendsRepurchased $690 million of stock

Second Quarter 2024 Operating Performance

Lease and Well

QoQ: Decreased primarily due to decreased workoversGuidance Midpoint: Lower primarily due to workovers and fuel costs

Gathering, Processing and Transportation Costs

QoQ: Increased primarily due to higher ratesGuidance Midpoint: Lower primarily due to lower compression-related fuel cost

General and Administrative

QoQ: Decreased due to lower employee- related expensesGuidance Midpoint: Lower due to lower employee-related expenses and other facility- related expenses

Depreciation, Depletion and Amortization

QoQ: Decreased primarily due to a one-time adjustment in 1Q related to natural gas production used by EOG-owned gathering systemsGuidance Midpoint: Lower primarily due to the production of lower-cost reserves

Second Quarter 2024 Results vs Guidance

(Unaudited)

See “Endnotes” below for related discussion and definitions.

2Q 2024

2Q 2024
Guidance

Midpoint

Variance

1Q 2024

4Q 2023

3Q 2023

2Q 2023

Crude Oil and Condensate Volumes (MBod)

United States

490.1

487.5

2.6

486.8

484.6

482.8

476.0

Trinidad

0.6

0.5

0.1

0.6

0.5

0.6

Total

490.7

488.0

2.7

487.4

485.2

483.3

476.6

Natural Gas Liquids Volumes (MBbld)

Total

244.8

232.0

12.8

231.7

235.8

231.1

215.7

Natural Gas Volumes (MMcfd)

United States

1,668

1,660

1,658

1,653

1,562

1,513

Trinidad

204

200

178

142

155

Total

1,872

1,860

1,858

1,831

1,704

1,668

Total Crude Oil Equivalent Volumes (MBoed)

1,047.5

1,030.1

17.4

1,028.8

1,026.2

998.5

970.3

Total MMBoe

95.3

93.7

1.6

93.6

94.4

91.9

88.3

Benchmark Price

Oil (WTI) ($/Bbl)

80.55

76.97

78.33

82.18

73.75

Natural Gas (HH) ($/Mcf)

1.89

2.24

2.87

2.55

2.09

Crude Oil and Condensate – above (below) WTI3 ($/Bbl)

United States

2.16

1.75

0.41

1.49

2.28

1.43

1.23

Trinidad

(9.80)

(10.45)

0.65

(9.47)

(9.12)

(10.80)

(8.87)

Natural Gas Liquids – Realizations as % of WTI

Total

28.7 %

29.0 %

(0.3 %)

31.6 %

28.5 %

28.7 %

28.3 %

Natural Gas – above (below) NYMEX Henry Hub4 ($/Mcf)

United States

(0.32)

(0.40)

0.08

(0.14)

(0.15)

0.04

(0.02)

Natural Gas Realizations ($/Mcf)

Trinidad

3.48

3.35

0.13

3.54

3.81

3.41

3.45

Total Expenditures (GAAP) ($MM)

1,682

1,952

1,634

1,803

1,664

Capital Expenditures (non-GAAP) ($MM)

1,668

1,750

(82)

1,703

1,512

1,519

1,521

Operating Unit Costs ($/Boe)

Lease and Well

4.09

4.23

(0.14)

4.23

4.00

4.02

3.94

Gathering, Processing and Transportation Costs2

4.44

4.50

(0.06)

4.41

4.49

4.42

4.48

General and Administrative

1.58

1.75

(0.17)

1.73

2.03

1.75

1.61

Cash Operating Costs

10.11

10.48

(0.37)

10.37

10.52

10.19

10.03

Depreciation, Depletion and Amortization

10.32

10.50

(0.18)

11.47

9.85

9.78

9.81

Expenses ($MM)

Exploration and Dry Hole

(11)

Impairment (GAAP)

Impairment (excluding certain impairments (non-GAAP))5

(24)

Capitalized Interest

(1)

Net Interest

TOTI (% of Wellhead Revenue)

7.5 %

8.0 %

(0.5 %)

7.7

6.6 %

7.4 %

7.8 %

Income Taxes

Effective Rate

21.7 %

21.5 %

(0.2 %)

22.2 %

21.6 %

21.1 %

21.9 %

Current Tax (Benefit) / Expense ($MM)

341

440

(99)

312

352

486

241

Third Quarter and Full-Year 2024 Guidance6

(Unaudited)

See “Endnotes” below for related discussion and definitions.

3Q 2024

Guidance Range

3Q 2024

Midpoint

FY 2024

Guidance Range

FY 2024

Midpoint

2023

Actual

2022

Actual

2021

Actual

Crude Oil and Condensate Volumes (MBod)

United States

488.2

–

493.2

490.7

486.8

–

491.8

489.3

475.2

460.7

443.4

Trinidad

0.5

–

1.0

0.8

0.5

–

1.5

1.0

0.6

1.5

Other International

0.0

–

0.0

–

0.0

0.1

Total

488.7

–

494.2

491.5

487.3

–

493.3

490.3

475.8

461.3

445.0

Natural Gas Liquids Volumes (MBbld)

Total

245.0

–

255.0

250.0

230.0

–

260.0

245.0

223.8

197.7

144.5

Natural Gas Volumes (MMcfd)

United States

1,700

–

1,760

1,730

1,640

–

1,770

1,705

1,551

1,315

1,210

Trinidad

200

–

230

215

200

–

230

215

160

180

217

Other International

–

Total

1,900

–

1,990

1,945

1,840

–

2,000

1,920

1,711

1,495

1,436

Crude Oil Equivalent Volumes (MBoed)

United States

1,016.5

–

1,041.5

1,029.0

990.1

–

1,046.8

1,018.5

957.5

877.5

789.6

Trinidad

33.8

–

39.3

36.6

33.8

–

39.8

36.8

27.3

30.7

37.7

Other International

0.0

–

0.0

–

0.0

1.6

Total

1,050.3

–

1,080.8

1,065.6

1,023.9

–

1,086.6

1,055.3

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

0.55

–

2.55

1.55

1.57

2.99

0.58

Trinidad

(9.05)

–

(7.55)

(8.30)

(10.19)

–

(8.19)

(9.19)

(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

(0.90)

–

(0.10)

(0.50)

(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)

1,475

–

1,575

1,525

6,000

–

6,400

6,200

6,041

4,607

3,755

Operating Unit Costs ($/Boe)

Lease and Well

4.00

–

4.40

4.20

3.85

–

4.55

4.20

4.05

4.02

3.75

Gathering, Processing and Transportation Costs2

4.30

–

4.80

4.55

4.15

–

4.85

4.50

4.78

4.70

General and Administrative (GAAP)

1.70

–

2.10

1.90

1.66

–

1.90

1.78

1.72

1.69

General and Administrative (non-GAAP)9

1.78

1.67

1.69

Cash Operating Costs (GAAP)

10.00

–

11.30

10.65

9.66

–

11.30

10.48

10.33

10.52

10.14

Cash Operating Costs (non-GAAP)

10.33

10.47

10.14

Depreciation, Depletion and Amortization

9.70

–

10.70

10.20

10.00

–

11.00

10.50

9.72

10.69

12.07

Expenses ($MM)

Exploration and Dry Hole

–

175

–

225

200

182

204

225

Impairment (GAAP)

202

382

376

Impairment (excluding certain impairments (non-GAAP))5

–

110

160

–

240

200

160

269

361

Capitalized Interest

–

Net Interest

–

127

–

137

132

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)

330

–

430

380

1,285

–

1,485

1,385

1,415

2,208

1,393

Second Quarter 2024 Results Webcast
Friday, August 2, 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

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.

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.

EOG bases United States and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.

EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the NYMEX Last Day Settle price for each of the applicable months.

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).

The forecast items for the third 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.

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).

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.

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

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

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

3,692

7,172

Natural Gas Liquids

490

409

501

484

1,884

513

515

1,028

Natural Gas

517

334

417

476

1,744

382

303

685

Gains (Losses) on Mark-to-Market
Financial Commodity and Other
Derivative Contracts, Net

376

101

298

818

237

(47)

190

Gathering, Processing and Marketing

1,390

1,465

1,478

1,473

5,806

1,459

1,519

2,978

Gains (Losses) on Asset Dispositions, Net

(9)

—

Other, Net

Total

6,044

5,573

6,212

6,357

24,186

6,123

6,025

12,148

Operating Expenses

Lease and Well

359

348

369

378

1,454

396

390

786

Gathering, Processing and
Transportation Costs (A)

395

396

406

423

1,620

413

423

836

Exploration Costs

181

Dry Hole Costs

—

Impairments

202

100

Marketing Costs

1,361

1,456

1,383

1,509

5,709

1,404

1,490

2,894

Depreciation, Depletion and
Amortization

798

866

898

930

3,492

1,074

984

2,058

General and Administrative

145

142

161

192

640

162

151

313

Taxes Other Than Income

329

313

341

301

1,284

338

337

675

Total

3,472

3,603

3,655

3,853

14,583

3,852

3,895

7,747

Operating Income

2,572

1,970

2,557

2,504

9,603

2,271

2,130

4,401

Other Income, Net

234

128

Income Before Interest Expense and
Income Taxes

2,637

2,021

2,609

2,570

9,837

2,333

2,196

4,529

Interest Expense, Net

148

Income Before Income Taxes

2,595

1,986

2,573

2,535

9,689

2,300

2,160

4,460

Income Tax Provision

572

433

543

547

2,095

511

470

981

Net Income

2,023

1,553

2,030

1,988

7,594

1,789

1,690

3,479

Dividends Declared per Common Share

1.8250

0.8250

2.4100

5.8850

0.9100

1.8200

Net Income Per Share

Basic

3.46

2.68

3.51

3.43

13.07

3.11

2.97

6.08

Diluted

3.45

2.66

3.48

3.42

13.00

3.10

2.95

6.05

Average Number of Common Shares

Basic

584

580

579

581

575

569

572

Diluted

587

584

583

581

584

577

572

575

(A)

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

490.1

488.4

Trinidad

0.6

0.5

0.6

Total

457.7

476.6

483.3

485.2

475.8

487.4

490.7

489.0

Average Crude Oil and Condensate Prices

($/Bbl) (B)

United States

$ 77.27

$ 74.98

$ 83.61

$ 80.61

$ 79.18

$ 78.46

$ 82.71

$ 80.59

Trinidad

68.98

64.88

71.38

69.21

65.58

67.50

70.75

69.11

Composite

77.26

74.97

83.60

80.60

79.17

78.45

82.69

80.58

Natural Gas Liquids Volumes (MBbld) (A)

United States

212.2

215.7

231.1

235.8

223.8

231.7

244.8

238.3

Total

212.2

215.7

231.1

235.8

223.8

231.7

244.8

238.3

Average Natural Gas Liquids Prices ($/Bbl) (B)

United States

$ 25.67

$ 20.85

$ 23.56

$ 22.29

$ 23.07

$ 24.32

$ 23.11

$ 23.70

Composite

25.67

20.85

23.56

22.29

23.07

24.32

23.11

23.70

Natural Gas Volumes (MMcfd) (A)

United States

1,475

1,513

1,562

1,653

1,551

1,658

1,668

1,663

Trinidad

164

155

142

178

160

200

204

202

Total

1,639

1,668

1,704

1,831

1,711

1,858

1,872

1,865

Average Natural Gas Prices ($/Mcf) (B)

United States

$ 3.47

$ 2.07

$ 2.59

$ 2.72

$ 2.70

$ 2.10

$ 1.57

$ 1.84

Trinidad

3.87

3.45

3.41

3.81

3.65

3.54

3.48

3.51

Composite

3.51

2.20

2.66

2.82

2.79

2.26

1.78

2.02

Crude Oil Equivalent Volumes (MBoed) (C)

United States

915.0

943.8

974.2

995.8

957.5

994.7

1,013.0

1,003.9

Trinidad

28.0

26.5

24.3

30.4

27.3

34.1

34.5

34.3

Total

943.0

970.3

998.5

1,026.2

984.8

1,028.8

1,047.5

1,038.2

Total MMBoe (C)

84.9

88.3

91.9

94.4

359.4

93.6

95.3

188.9

(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 June 30, 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

5,431

Accounts Receivable, Net

2,455

2,263

2,927

2,716

2,688

2,657

Inventories

1,131

1,355

1,379

1,275

1,154

1,069

Assets from Price Risk Management Activities

—

106

110

Income Taxes Receivable

—

Other

580

523

626

560

684

640

Total

9,184

8,906

10,258

9,935

9,928

9,803

Property, Plant and Equipment

Oil and Gas Properties (Successful Efforts Method)

67,907

69,178

70,730

72,090

73,356

74,615

Other Property, Plant and Equipment

5,101

5,282

5,355

5,497

5,768

6,078

Total Property, Plant and Equipment

73,008

74,460

76,085

77,587

79,124

80,693

Less: Accumulated Depreciation, Depletion and
Amortization

(42,785)

(43,550)

(44,362)

(45,290)

(46,047)

(47,049)

Total Property, Plant and Equipment, Net

30,223

30,910

31,723

32,297

33,077

33,644

Deferred Income Taxes

Other Assets

1,587

1,638

1,633

1,583

1,753

1,733

Total Assets

41,025

41,487

43,647

43,857

44,796

45,224

Current Liabilities

Accounts Payable

2,438

2,205

2,464

2,437

2,389

2,436

Accrued Taxes Payable

637

425

605

466

786

600

Dividends Payable

482

478

526

523

516

Liabilities from Price Risk Management Activities

—

Current Portion of Long-Term Debt

534

Current Portion of Operating Lease Liabilities

354

335

337

325

318

303

Other

253

232

285

286

223

231

Total

4,228

3,731

4,225

4,074

4,273

4,628

Long-Term Debt

3,787

3,780

3,772

3,765

3,757

3,250

Other Liabilities

2,620

2,581

2,698

2,526

2,533

2,456

Deferred Income Taxes

4,943

5,138

5,194

5,402

5,597

5,731

Commitments and Contingencies

Stockholders’ Equity

Common Stock, $0.01 Par

206

Additional Paid in Capital

6,219

6,257

6,133

6,166

6,188

6,219

Accumulated Other Comprehensive Loss

(8)

(9)

(7)

(9)

(8)

Retained Earnings

19,423

20,497

22,047

22,634

23,897

25,071

Common Stock Held in Treasury

(393)

(694)

(621)

(907)

(1,647)

(2,329)

Total Stockholders’ Equity

25,447

26,257

27,758

28,090

28,636

29,159

Total Liabilities and Stockholders’ Equity

41,025

41,487

43,647

43,857

44,796

45,224

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

1,690

3,479

Items Not Requiring (Providing) Cash

Depreciation, Depletion and Amortization

798

866

898

930

3,492

1,074

984

2,058

Impairments

202

100

Stock-Based Compensation Expenses

177

Deferred Income Taxes

234

194

199

683

199

128

327

(Gains) Losses on Asset Dispositions, Net

(69)

(35)

—

(95)

(26)

(20)

(46)

Other, Net

(1)

Dry Hole Costs

—

Mark-to-Market Financial Commodity and Other
Derivative Contracts (Gains) Losses, Net

(376)

(101)

(43)

(298)

(818)

(237)

(190)

Net Cash Received from (Payments for)
Settlements of Financial Commodity
Derivative Contracts

(123)

(30)

(112)

134

Other, Net

(1)

—

(1)

—

(2)

—

Changes in Components of Working Capital and
Other Assets and Liabilities

Accounts Receivable

338

137

(714)

201

(38)

Inventories

(77)

(226)

(28)

100

(231)

117

192

Accounts Payable

(77)

(231)

238

(49)

(119)

(58)

(29)

Accrued Taxes Payable

232

(212)

180

(139)

319

(185)

134

Other Assets

(92)

(161)

(119)

Other Liabilities

193

(47)

(16)

184

(71)

(20)

(91)

Changes in Components of Working Capital
Associated with Investing Activities

250

(18)

295

(229)

(127)

(356)

Net Cash Provided by Operating Activities

3,255

2,277

2,704

3,104

11,340

2,903

2,889

5,792

Investing Cash Flows

Additions to Oil and Gas Properties

(1,305)

(1,341)

(1,379)

(1,360)

(5,385)

(1,485)

(1,357)

(2,842)

Additions to Other Property, Plant and Equipment

(319)

(180)

(139)

(162)

(800)

(350)

(313)

(663)

Proceeds from Sales of Assets

140

Changes in Components of Working Capital
Associated with Investing Activities

(35)

(250)

(28)

(295)

229

127

356

Net Cash Used in Investing Activities

(1,567)

(1,742)

(1,532)

(1,499)

(6,340)

(1,597)

(1,533)

(3,130)

Financing Cash Flows

Long-Term Debt Repayments

(1,250)

—

(1,250)

—

Dividends Paid

(1,067)

(480)

(494)

(1,345)

(3,386)

(525)

(520)

(1,045)

Treasury Stock Purchased

(317)

(302)

(109)

(310)

(1,038)

(759)

(699)

(1,458)

Proceeds from Stock Options Exercised and
Employee Stock Purchase Plan

—

Debt Issuance Costs

—

(8)

—

(8)

—

Repayment of Finance Lease Liabilities

(8)

(32)

(8)

(9)

(17)

Net Cash Used in Financing Activities

(2,642)

(789)

(610)

(1,653)

(5,694)

(1,292)

(1,217)

(2,509)

Effect of Exchange Rate Changes on Cash

—

Increase (Decrease) in Cash and Cash Equivalents

(954)

(254)

562

(48)

(694)

139

153

Cash and Cash Equivalents at Beginning of Period

5,972

5,018

4,764

5,326

5,972

5,278

5,292

5,278

Cash and Cash Equivalents at End of Period

5,018

4,764

5,326

5,278

5,292

5,431

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 (Loss), 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 net 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.

2Q 2024

Before
Tax

Income Tax
Impact

After
Tax

Diluted
Earnings
per Share

Reported Net Income (GAAP)

2,160

(470)

1,690

2.95

Adjustments:

Losses on Mark-to-Market Financial Commodity and Other Derivative
Contracts, Net

(10)

0.07

Net Cash Received from Settlements of Financial Commodity Derivative
Contracts (1)

(17)

0.11

Less: Gains on Asset Dispositions, Net

(20)

(15)

(0.03)

Add: Certain Impairments

(2)

0.06

Adjustments to Net Income

141

(24)

117

0.21

Adjusted Net Income (Non-GAAP)

2,301

(494)

1,807

3.16

Average Number of Common Shares (Non-GAAP)

Basic

569

Diluted

572

(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 June 30, 2024, such amount was $79 million.

Adjusted Net Income

(Continued)

In millions of USD, except share data (in millions) and per share data (Unaudited)

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)

(186)

(0.31)

Net Cash Received from Settlements of Financial Commodity Derivative
Contracts (1)

(12)

0.07

Less: Gains on Asset Dispositions, Net

(26)

(22)

(0.04)

Add: Certain Impairments

—

Adjustments to Net Income

(206)

(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)

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)

(234)

(0.40)

Net Cash Received from Settlements of Financial Commodity Derivative
Contracts (1)

(4)

0.02

Add: Certain Impairments

(4)

0.03

Adjustments to Net Income

(261)

(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)

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)

(34)

(0.06)

Net Cash Received from Settlements of Financial Commodity Derivative Contracts (1)

(5)

0.03

Less: Gains on Asset Dispositions, Net

(35)

(28)

(0.05)

Add: Certain Impairments

(2)

0.04

Adjustments to Net Income

(32)

(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)

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)

(79)

(0.14)

Net Cash Payments for Settlements of Financial Commodity Derivative
Contracts (1)

(30)

(24)

(0.04)

Add: Losses on Asset Dispositions, Net

(2)

0.01

Adjustments to Net Income

(122)

(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.

Net Income per Share

In millions of USD, except share data (in millions), per share data, production volume data and per Boe data (Unaudited)

1Q 2024 Net Income per Share (GAAP) – Diluted

3.10

Realized Price

2Q 2024 Composite Average Wellhead Revenue per Boe

47.31

Less: 1Q 2024 Composite Average Wellhead Revenue per Boe

(46.73)

Subtotal

0.58

Multiplied by: 2Q 2024 Crude Oil Equivalent Volumes (MMBoe)

95.3

Total Change in Revenue

Add: Income Tax Benefit (Provision) Imputed (based on 22%)

(12)

Change in Net Income

Change in Diluted Earnings per Share

0.08

Wellhead Volumes

2Q 2024 Crude Oil Equivalent Volumes (MMBoe)

95.3

Less: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe)

(93.6)

Subtotal

1.7

Multiplied by: 2Q 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)

21.7

Change in Margin

Add: Income Tax Benefit (Provision) Imputed (based on 22%)

(8)

Change in Net Income

Change in Diluted Earnings per Share

0.05

Certain Operating Costs per Boe

1Q 2024 Total Cash Operating Costs (GAAP) and Total DD&A per Boe

21.84

Less: 2Q 2024 Total Cash Operating Costs (GAAP) and Total DD&A per Boe

(20.43)

Subtotal

1.41

Multiplied by: 2Q 2024 Crude Oil Equivalent Volumes (MMBoe)

95.3

Change in Before-Tax Net Income

134

Add: Income Tax Benefit (Provision) Imputed (based on 22%)

(29)

Change in Net Income

105

Change in Diluted Earnings per Share

0.18

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

2Q 2024 Net Gains (Losses) on Mark-to-Market Financial Commodity and Other Derivative
Contracts

(47)

Less: Income Tax Benefit (Provision)

After Tax – (a)

(37)

Less: 1Q 2024 Net Gains (Losses) on Mark-to-Market Financial Commodity and Other Derivative
Contracts

237

Less: Income Tax Benefit (Provision)

(51)

After Tax – (b)

186

Change in Net Income – (a) – (b)

(223)

Change in Diluted Earnings per Share

(0.39)

Other (1)

(0.07)

2Q 2024 Net Income per Share (GAAP) – Diluted

2.95

2Q 2024 Average Number of Common Shares (GAAP) – Diluted

572

(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)

1Q 2024 Adjusted Net Income per Share (Non-GAAP) – Diluted

2.82

Realized Price

2Q 2024 Composite Average Wellhead Revenue per Boe

47.31

Less: 1Q 2024 Composite Average Wellhead Revenue per Boe

(46.73)

Subtotal

0.58

Multiplied by: 2Q 2024 Crude Oil Equivalent Volumes (MMBoe)

95.3

Total Change in Revenue

Add: Income Tax Benefit (Provision) Imputed (based on 22%)

(12)

Change in Net Income

Change in Diluted Earnings per Share

0.08

Wellhead Volumes

2Q 2024 Crude Oil Equivalent Volumes (MMBoe)

95.3

Less: 1Q 2024 Crude Oil Equivalent Volumes (MMBoe)

(93.6)

Subtotal

1.7

Multiplied by: 2Q 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)

22.07

Change in Margin

Add: Income Tax Benefit (Provision) Imputed (based on 22%)

(8)

Change in Net Income

Change in Diluted Earnings per Share

0.05

Certain Operating Costs per Boe

1Q 2024 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe

21.84

Less: 2Q 2024 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe

(20.43)

Subtotal

1.41

Multiplied by: 2Q 2024 Crude Oil Equivalent Volumes (MMBoe)

95.3

Change in Before-Tax Net Income

134

Add: Income Tax Benefit (Provision) Imputed (based on 22%)

(29)

Change in Net Income

105

Change in Diluted Earnings per Share

0.18

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

2Q 2024 Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative Contracts

Less: Income Tax Benefit (Provision)

(17)

After Tax – (a)

1Q 2024 Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative Contracts

Less: Income Tax Benefit (Provision)

(12)

After Tax – (b)

Change in Net Income – (a) – (b)

Change in Diluted Earnings per Share

0.03

Other (1)

0.00

2Q 2024 Adjusted Net Income per Share (Non-GAAP)

3.16

2Q 2024 Average Number of Common Shares (Non-GAAP) – Diluted

572

(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

2,889

5,792

Adjustments:

Changes in Components of Working Capital
and Other Assets and Liabilities

Accounts Receivable

(338)

(137)

714

(201)

(58)

(33)

(91)

Inventories

226

(100)

231

(117)

(75)

(192)

Accounts Payable

231

(238)

119

(29)

Accrued Taxes Payable

(232)

212

(180)

139

(61)

(319)

185

(134)

Other Assets

(52)

(43)

(36)

(39)

161

(42)

119

Other Liabilities

(193)

(54)

(184)

Changes in Components of Working Capital
Associated with Investing Activities

(35)

(250)

(28)

(295)

229

127

356

Cash Flow from Operations Before Changes in
Working Capital (Non-GAAP)

2,559

2,563

3,038

2,989

11,149

2,928

3,042

5,970

Less:

Total Capital Expenditures (Non-GAAP) (a)

(1,489)

(1,521)

(1,519)

(1,512)

(6,041)

(1,703)

(1,668)

(3,371)

Free Cash Flow (Non-GAAP)

1,070

1,042

1,519

1,477

5,108

1,225

1,374

2,599

(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

1,682

3,634

Less:

Asset Retirement Costs

(10)

(26)

(191)

(30)

(257)

(21)

Non-Cash Development Drilling

—

(35)

(50)

(5)

(90)

—

Non-Cash Acquisition Costs of
Unproved Properties

(31)

(28)

(1)

(39)

(99)

(31)

(34)

(65)

Acquisition Costs of Proved Properties

(4)

(6)

(7)

(16)

(21)

(5)

(26)

Acquisition Costs of Other Property,
Plant and Equipment

(133)

(1)

—

(134)

(131)

(1)

(132)

Exploration Costs

(50)

(47)

(43)

(41)

(181)

(45)

(34)

(79)

Total Capital Expenditures (Non-GAAP)

1,489

1,521

1,519

1,512

6,041

1,703

1,668

3,371

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.

June 30,
2024

March 31,
2024

December 31,
2023

September 30,
2023

June 30,
2023

Total Stockholders’ Equity – (a)

29,159

28,636

28,090

27,758

26,257

Current and Long-Term Debt (GAAP) – (b)

3,784

3,791

3,799

3,806

3,814

Less: Cash

(5,431)

(5,292)

(5,278)

(5,326)

(4,764)

Net Debt (Non-GAAP) – (c)

(1,647)

(1,501)

(1,479)

(1,520)

(950)

Total Capitalization (GAAP) – (a) + (b)

32,943

32,427

31,889

31,564

30,071

Total Capitalization (Non-GAAP) – (a) + (c)

27,512

27,135

26,611

26,238

25,307

Debt-to-Total Capitalization (GAAP) – (b) / [(a) + (b)]

11.5 %

11.7 %

11.9 %

12.1 %

12.7 %

Net Debt-to-Total Capitalization (Non-GAAP) – (c) /
[(a) + (c)]

-6.0 %

-5.5 %

-5.6 %

-5.8 %

-3.8 %

View original content:https://www.prnewswire.com/news-releases/eog-resources-reports-second-quarter-2024-results-302212832.html

SOURCE EOG Resources, Inc.

EOG Resources Reports Second Quarter 2024 Results

Featured:

Elsewhere:

EOG Resources Reports Second Quarter 2024 Results

You may also like

Featured:

Elsewhere: