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Palanor Data/EOG

Earnings release · 8-K exhibit

EOG Resources · Earnings release

EOG · Energy

Filed 2024-11-07 · CY2024 Q4 · Company’s FY2024 Q3 · 6,564 words

Read the original on sec.gov ↗

EX-99.12exh99-1110724.htmEX-99.1 Document

EXHIBIT 99.1

Table of Contents

Third Quarter 2024

Supplemental Financial and Operating Data

Page

Income Statements

13

Wellhead Volumes and Prices

14

Balance Sheets

15

Cash Flow Statements

16

Non-GAAP Financial Measures

17

Adjusted Net Income

18

Net Income Per Share

23

Adjusted Net Income Per Share

25

Cash Flow from Operations and Free Cash Flow

27

Net Debt-to-Total Capitalization Ratio

28

Revenues, Costs and Margins Per Barrel of Oil Equivalent

29

12

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

3,488

10,660

Natural Gas Liquids

490

409

501

484

1,884

513

515

524

1,552

Natural Gas

517

334

417

476

1,744

382

303

372

1,057

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

376

101

43

298

818

237

(47)

79

269

Gathering, Processing and Marketing

1,390

1,465

1,478

1,473

5,806

1,459

1,519

1,481

4,459

Gains (Losses) on Asset Dispositions, Net

69

(9)

35

—

95

26

20

(7)

39

Other, Net

20

21

21

29

91

26

23

28

77

Total

6,044

5,573

6,212

6,357

24,186

6,123

6,025

5,965

18,113

Operating Expenses

Lease and Well

359

348

369

378

1,454

396

390

392

1,178

Gathering, Processing and Transportation Costs (A)

395

396

406

423

1,620

413

423

445

1,281

Exploration Costs

50

47

43

41

181

45

34

43

122

Dry Hole Costs

1

—

—

—

1

1

5

—

6

Impairments

34

35

54

79

202

19

81

15

115

Marketing Costs

1,361

1,456

1,383

1,509

5,709

1,404

1,490

1,500

4,394

Depreciation, Depletion and Amortization

798

866

898

930

3,492

1,074

984

1,031

3,089

General and Administrative

145

142

161

192

640

162

151

167

480

Taxes Other Than Income

329

313

341

301

1,284

338

337

283

958

Total

3,472

3,603

3,655

3,853

14,583

3,852

3,895

3,876

11,623

Operating Income

2,572

1,970

2,557

2,504

9,603

2,271

2,130

2,089

6,490

Other Income, Net

65

51

52

66

234

62

66

76

204

Income Before Interest Expense and Income Taxes

2,637

2,021

2,609

2,570

9,837

2,333

2,196

2,165

6,694

Interest Expense, Net

42

35

36

35

148

33

36

31

100

Income Before Income Taxes

2,595

1,986

2,573

2,535

9,689

2,300

2,160

2,134

6,594

Income Tax Provision

572

433

543

547

2,095

511

470

461

1,442

Net Income

2,023

1,553

2,030

1,988

7,594

1,789

1,690

1,673

5,152

Dividends Declared per Common Share

1.8250

0.8250

0.8250

2.4100

5.8850

0.9100

0.9100

0.9100

2.7300

Net Income Per Share

Basic

3.46

2.68

3.51

3.43

13.07

3.11

2.97

2.97

9.05

Diluted

3.45

2.66

3.48

3.42

13.00

3.10

2.95

2.95

8.99

Average Number of Common Shares

Basic

584

580

579

579

581

575

569

564

569

Diluted

587

584

583

581

584

577

572

568

573

(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.

13

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

491.8

489.6

Trinidad

0.6

0.6

0.5

0.6

0.6

0.6

0.6

1.2

0.8

Total

457.7

476.6

483.3

485.2

475.8

487.4

490.7

493.0

490.4

Average Crude Oil and Condensate Prices

($/Bbl) (B)

United States

$

77.27

$

74.98

$

83.61

$

80.61

$

79.18

$

78.46

$

82.71

$

76.95

$

79.36

Trinidad

68.98

64.88

71.38

69.21

65.58

67.50

70.75

63.15

66.22

Composite

77.26

74.97

83.60

80.60

79.17

78.45

82.69

76.92

79.34

Natural Gas Liquids Volumes (MBbld) (A)

United States

212.2

215.7

231.1

235.8

223.8

231.7

244.8

254.3

243.7

Total

212.2

215.7

231.1

235.8

223.8

231.7

244.8

254.3

243.7

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

United States

$

25.67

$

20.85

$

23.56

$

22.29

$

23.07

$

24.32

$

23.11

$

22.42

$

23.25

Composite

25.67

20.85

23.56

22.29

23.07

24.32

23.11

22.42

23.25

Natural Gas Volumes (MMcfd) (A)

United States

1,475

1,513

1,562

1,653

1,551

1,658

1,668

1,745

1,691

Trinidad

164

155

142

178

160

200

204

225

209

Total

1,639

1,668

1,704

1,831

1,711

1,858

1,872

1,970

1,900

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

United States

$

3.47

$

2.07

$

2.59

$

2.72

$

2.70

$

2.10

$

1.57

$

1.84

$

1.84

Trinidad

3.87

3.45

3.41

3.81

3.65

3.54

3.48

3.68

3.57

Composite

3.51

2.20

2.66

2.82

2.79

2.26

1.78

2.05

2.03

Crude Oil Equivalent Volumes (MBoed) (C)

United States

915.0

943.8

974.2

995.8

957.5

994.7

1,013.0

1,037.1

1,015.0

Trinidad

28.0

26.5

24.3

30.4

27.3

34.1

34.5

38.6

35.8

Total

943.0

970.3

998.5

1,026.2

984.8

1,028.8

1,047.5

1,075.7

1,050.8

Total MMBoe (C)

84.9

88.3

91.9

94.4

359.4

93.6

95.3

99.0

287.9

(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 September 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.

14

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

6,122

Accounts Receivable, Net

2,455

2,263

2,927

2,716

2,688

2,657

2,545

Inventories

1,131

1,355

1,379

1,275

1,154

1,069

1,038

Assets from Price Risk Management Activities

—

—

—

106

110

4

—

Income Taxes Receivable

—

1

—

—

—

2

2

Other

580

523

626

560

684

640

458

Total

9,184

8,906

10,258

9,935

9,928

9,803

10,165

Property, Plant and Equipment

Oil and Gas Properties (Successful Efforts Method)

67,907

69,178

70,730

72,090

73,356

74,615

75,887

Other Property, Plant and Equipment

5,101

5,282

5,355

5,497

5,768

6,078

6,314

Total Property, Plant and Equipment

73,008

74,460

76,085

77,587

79,124

80,693

82,201

Less: Accumulated Depreciation, Depletion and Amortization

(42,785)

(43,550)

(44,362)

(45,290)

(46,047)

(47,049)

(48,075)

Total Property, Plant and Equipment, Net

30,223

30,910

31,723

32,297

33,077

33,644

34,126

Deferred Income Taxes

31

33

33

42

38

44

42

Other Assets

1,587

1,638

1,633

1,583

1,753

1,733

1,818

Total Assets

41,025

41,487

43,647

43,857

44,796

45,224

46,151

Current Liabilities

Accounts Payable

2,438

2,205

2,464

2,437

2,389

2,436

2,290

Accrued Taxes Payable

637

425

605

466

786

600

855

Dividends Payable

482

478

478

526

523

516

513

Liabilities from Price Risk Management Activities

31

22

22

—

—

8

32

Current Portion of Long-Term Debt

33

34

34

34

34

534

34

Current Portion of Operating Lease Liabilities

354

335

337

325

318

303

338

Other

253

232

285

286

223

231

344

Total

4,228

3,731

4,225

4,074

4,273

4,628

4,406

Long-Term Debt

3,787

3,780

3,772

3,765

3,757

3,250

3,742

Other Liabilities

2,620

2,581

2,698

2,526

2,533

2,456

2,480

Deferred Income Taxes

4,943

5,138

5,194

5,402

5,597

5,731

5,949

Commitments and Contingencies

Stockholders' Equity

Common Stock, $0.01 Par

206

206

206

206

206

206

206

Additional Paid in Capital

6,219

6,257

6,133

6,166

6,188

6,219

6,058

Accumulated Other Comprehensive Loss

(8)

(9)

(7)

(9)

(8)

(8)

(9)

Retained Earnings

19,423

20,497

22,047

22,634

23,897

25,071

26,231

Common Stock Held in Treasury

(393)

(694)

(621)

(907)

(1,647)

(2,329)

(2,912)

Total Stockholders' Equity

25,447

26,257

27,758

28,090

28,636

29,159

29,574

Total Liabilities and Stockholders' Equity

41,025

41,487

43,647

43,857

44,796

45,224

46,151

15

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

1,673

5,152

Items Not Requiring (Providing) Cash

Depreciation, Depletion and Amortization

798

866

898

930

3,492

1,074

984

1,031

3,089

Impairments

34

35

54

79

202

19

81

15

115

Stock-Based Compensation Expenses

34

35

57

51

177

45

45

58

148

Deferred Income Taxes

234

194

56

199

683

199

128

220

547

(Gains) Losses on Asset Dispositions, Net

(69)

9

(35)

—

(95)

(26)

(20)

7

(39)

Other, Net

4

2

(1)

22

27

9

3

2

14

Dry Hole Costs

1

—

—

—

1

1

5

—

6

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

(376)

(101)

(43)

(298)

(818)

(237)

47

(79)

(269)

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

(123)

(30)

23

18

(112)

55

79

61

195

Other, Net

(1)

—

(1)

—

(2)

—

—

—

—

Changes in Components of Working Capital and Other Assets and Liabilities

Accounts Receivable

338

137

(714)

201

(38)

58

33

109

200

Inventories

(77)

(226)

(28)

100

(231)

117

75

30

222

Accounts Payable

(77)

(231)

238

(49)

(119)

(58)

29

(159)

(188)

Accrued Taxes Payable

232

(212)

180

(139)

61

319

(185)

256

390

Other Assets

52

43

(92)

36

39

(161)

42

197

78

Other Liabilities

193

(47)

54

(16)

184

(71)

(20)

108

17

Changes in Components of Working Capital Associated with Investing Activities

35

250

28

(18)

295

(229)

(127)

59

(297)

Net Cash Provided by Operating Activities

3,255

2,277

2,704

3,104

11,340

2,903

2,889

3,588

9,380

Investing Cash Flows

Additions to Oil and Gas Properties

(1,305)

(1,341)

(1,379)

(1,360)

(5,385)

(1,485)

(1,357)

(1,263)

(4,105)

Additions to Other Property, Plant and Equipment

(319)

(180)

(139)

(162)

(800)

(350)

(313)

(239)

(902)

Proceeds from Sales of Assets

92

29

14

5

140

9

10

—

19

Changes in Components of Working Capital Associated with Investing Activities

(35)

(250)

(28)

18

(295)

229

127

(59)

297

Net Cash Used in Investing Activities

(1,567)

(1,742)

(1,532)

(1,499)

(6,340)

(1,597)

(1,533)

(1,561)

(4,691)

Financing Cash Flows

Long-Term Debt Repayments

(1,250)

—

—

—

(1,250)

—

—

—

—

Dividends Paid

(1,067)

(480)

(494)

(1,345)

(3,386)

(525)

(520)

(533)

(1,578)

Treasury Stock Purchased

(317)

(302)

(109)

(310)

(1,038)

(759)

(699)

(795)

(2,253)

Proceeds from Stock Options Exercised and Employee Stock Purchase Plan

—

9

1

10

20

—

11

—

11

Debt Issuance Costs

—

(8)

—

—

(8)

—

—

—

—

Repayment of Finance Lease Liabilities

(8)

(8)

(8)

(8)

(32)

(8)

(9)

(8)

(25)

Net Cash Used in Financing Activities

(2,642)

(789)

(610)

(1,653)

(5,694)

(1,292)

(1,217)

(1,336)

(3,845)

Effect of Exchange Rate Changes on Cash

—

—

—

—

—

—

–

–

—

Increase (Decrease) in Cash and Cash Equivalents

(954)

(254)

562

(48)

(694)

14

139

691

844

Cash and Cash Equivalents at Beginning of Period

5,972

5,018

4,764

5,326

5,972

5,278

5,292

5,431

5,278

Cash and Cash Equivalents at End of Period

5,018

4,764

5,326

5,278

5,278

5,292

5,431

6,122

6,122

16

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.

17

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.

3Q 2024

Before

Tax

Income Tax Impact

After

Tax

Diluted Earnings per Share

Reported Net Income (GAAP)

2,134

(461)

1,673

2.95

Adjustments:

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

(79)

17

(62)

(0.11)

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

61

(13)

48

0.08

Add: Losses on Asset Dispositions, Net

7

(2)

5

0.01

Less: Severance Tax Refund

(31)

7

(24)

(0.04)

Add: Severance Tax Consulting Fees

10

(2)

8

0.01

Less: Interest on Severance Tax Refund

(5)

1

(4)

(0.01)

Adjustments to Net Income

(37)

8

(29)

(0.06)

Adjusted Net Income (Non-GAAP)

2,097

(453)

1,644

2.89

Average Number of Common Shares

Basic

564

Diluted

568

(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, 2024, such amount was $61 million.

18

Adjusted Net Income

(Continued)

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

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

47

(10)

37

0.07

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

79

(17)

62

0.11

Less: Gains on Asset Dispositions, Net

(20)

5

(15)

(0.03)

Add: Certain Impairments

35

(2)

33

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

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.

19

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)

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

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.

20

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

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.

21

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

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.

22

Net Income per Share

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

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

2.95

Realized Price

3Q 2024 Composite Average Wellhead Revenue per Boe

44.31

Less: 2Q 2024 Composite Average Wellhead Revenue per Boe

(47.31)

Subtotal

(3.00)

Multiplied by: 3Q 2024 Crude Oil Equivalent Volumes (MMBoe)

99.0

Total Change in Revenue

(297)

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

65

Change in Net Income

(232)

Change in Diluted Earnings per Share

(0.41)

Wellhead Volumes

3Q 2024 Crude Oil Equivalent Volumes (MMBoe)

99.0

Less: 2Q 2024 Crude Oil Equivalent Volumes (MMBoe)

(95.3)

Subtotal

3.7

Multiplied by: 3Q 2024 Composite Average Margin per Boe (GAAP) (Including Total

Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule below)

19.98

Change in Margin

74

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

(16)

Change in Net Income

58

Change in Diluted Earnings per Share

0.10

Certain Operating Costs per Boe

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

20.43

Less: 3Q 2024 Total Cash Operating Costs (GAAP) and Total DD&A per Boe

(20.57)

Subtotal

(0.14)

Multiplied by: 3Q 2024 Crude Oil Equivalent Volumes (MMBoe)

99.0

Change in Before-Tax Net Income

(14)

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

3

Change in Net Income

(11)

Change in Diluted Earnings per Share

(0.02)

23

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

3Q 2024 Net Gains (Losses) on Mark-to-Market Financial Commodity and Other Derivative Contracts

79

Less: Income Tax Benefit (Provision)

(17)

After Tax - (a)

62

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

(47)

Less: Income Tax Benefit (Provision)

10

After Tax - (b)

(37)

Change in Net Income - (a) - (b)

99

Change in Diluted Earnings per Share

0.17

Other (1)

0.16

3Q 2024 Net Income per Share (GAAP) - Diluted

2.95

3Q 2024 Average Number of Common Shares - Diluted

568

(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.

24

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)

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

3.16

Realized Price

3Q 2024 Composite Average Wellhead Revenue per Boe

44.31

Less: 2Q 2024 Composite Average Wellhead Revenue per Boe

(47.31)

Subtotal

(3.00)

Multiplied by: 3Q 2024 Crude Oil Equivalent Volumes (MMBoe)

99.0

Total Change in Revenue

(297)

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

65

Change in Net Income

(232)

Change in Diluted Earnings per Share

(0.41)

Wellhead Volumes

3Q 2024 Crude Oil Equivalent Volumes (MMBoe)

99.0

Less: 2Q 2024 Crude Oil Equivalent Volumes (MMBoe)

(95.3)

Subtotal

3.7

Multiplied by: 3Q 2024 Composite Average Margin per Boe (Non-GAAP) (Including Total Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule below)

19.77

Change in Margin

73

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

(16)

Change in Net Income

57

Change in Diluted Earnings per Share

0.10

Certain Operating Costs per Boe

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

20.43

Less: 3Q 2024 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe

(20.47)

Subtotal

(0.04)

Multiplied by: 3Q 2024 Crude Oil Equivalent Volumes (MMBoe)

99.0

Change in Before-Tax Net Income

(4)

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

1

Change in Net Income

(3)

Change in Diluted Earnings per Share

(0.01)

25

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

3Q 2024 Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative Contracts

61

Less: Income Tax Benefit (Provision)

(13)

After Tax - (a)

48

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

79

Less: Income Tax Benefit (Provision)

(17)

After Tax - (b)

62

Change in Net Income - (a) - (b)

(14)

Change in Diluted Earnings per Share

(0.02)

Other (1)

0.07

3Q 2024 Adjusted Net Income per Share (Non-GAAP)

2.89

3Q 2024 Average Number of Common Shares - Diluted

568

(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.

26

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

3,588

9,380

Adjustments:

Changes in Components of Working Capital and Other Assets and Liabilities

Accounts Receivable

(338)

(137)

714

(201)

38

(58)

(33)

(109)

(200)

Inventories

77

226

28

(100)

231

(117)

(75)

(30)

(222)

Accounts Payable

77

231

(238)

49

119

58

(29)

159

188

Accrued Taxes Payable

(232)

212

(180)

139

(61)

(319)

185

(256)

(390)

Other Assets

(52)

(43)

92

(36)

(39)

161

(42)

(197)

(78)

Other Liabilities

(193)

47

(54)

16

(184)

71

20

(108)

(17)

Changes in Components of Working Capital Associated with Investing Activities

(35)

(250)

(28)

18

(295)

229

127

(59)

297

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

2,988

8,958

Less:

Total Capital Expenditures (Non-GAAP) (a)

(1,489)

(1,521)

(1,519)

(1,512)

(6,041)

(1,703)

(1,668)

(1,497)

(4,868)

Free Cash Flow (Non-GAAP)

1,070

1,042

1,519

1,477

5,108

1,225

1,374

1,491

4,090

(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

1,573

5,207

Less:

Asset Retirement Costs

(10)

(26)

(191)

(30)

(257)

(21)

60

(11)

28

Non-Cash Development Drilling

—

(35)

(50)

(5)

(90)

—

—

—

—

Non-Cash Acquisition Costs of Unproved Properties

(31)

(28)

(1)

(39)

(99)

(31)

(34)

(17)

(82)

Acquisition Costs of Proved Properties

(4)

(6)

1

(7)

(16)

(21)

(5)

—

(26)

Acquisition Costs of Other Property, Plant and Equipment

(133)

(1)

—

—

(134)

(131)

(1)

(5)

(137)

Exploration Costs

(50)

(47)

(43)

(41)

(181)

(45)

(34)

(43)

(122)

Total Capital Expenditures (Non-GAAP)

1,489

1,521

1,519

1,512

6,041

1,703

1,668

1,497

4,868

27

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.

September 30, 2024

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

Total Stockholders' Equity - (a)

29,574

29,159

28,636

28,090

27,758

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

3,776

3,784

3,791

3,799

3,806

Less: Cash

(6,122)

(5,431)

(5,292)

(5,278)

(5,326)

Net Debt (Non-GAAP) - (c)

(2,346)

(1,647)

(1,501)

(1,479)

(1,520)

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

33,350

32,943

32,427

31,889

31,564

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

27,228

27,512

27,135

26,611

26,238

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

11.3

%

11.5

%

11.7

%

11.9

%

12.1

%

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

-8.6

%

-6.0

%

-5.5

%

-5.6

%

-5.8

%

28

Revenues, Costs and Margins Per Barrel of Oil Equivalent

In millions of USD, except Boe and per Boe amounts (Unaudited)

EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who review certain components and/or groups of components of revenues, costs and/or margins per barrel of oil equivalent (Boe). Certain of these components are adjusted for non-recurring and certain other items, as further discussed below. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023

Volume - Million Barrels of Oil Equivalent - (a)

99.0

95.3

93.6

94.4

91.9

Total Operating Revenues and Other (b)

5,965

6,025

6,123

6,357

6,212

Total Operating Expenses (c)

3,876

3,895

3,852

3,853

3,655

Operating Income (d)

2,089

2,130

2,271

2,504

2,557

Wellhead Revenues

Crude Oil and Condensate

3,488

3,692

3,480

3,597

3,717

Natural Gas Liquids

524

515

513

484

501

Natural Gas

372

303

382

476

417

Total Wellhead Revenues - (e)

4,384

4,510

4,375

4,557

4,635

Operating Costs

Lease and Well

392

390

396

378

369

Gathering, Processing and Transportation Costs (1)

445

423

413

423

406

General and Administrative (GAAP)

167

151

162

192

161

Less: Severance Tax Consulting Fees

(10)

—

—

—

—

General and Administrative (Non-GAAP) (3)

157

151

162

192

161

Taxes Other Than Income (GAAP)

283

337

338

301

341

Add: Severance Tax Refund

31

—

—

—

—

Taxes Other Than Income (Non-GAAP) (4)

314

337

338

301

341

Interest Expense, Net

31

36

33

35

36

Total Operating Cost (GAAP) (excluding DD&A and Total Exploration Costs) (f)

1,318

1,337

1,342

1,329

1,313

Total Operating Cost (Non-GAAP) (excluding DD&A and Total Exploration Costs) (g)

1,339

1,337

1,342

1,329

1,313

Depreciation, Depletion and Amortization (DD&A)

1,031

984

1,074

930

898

Total Operating Cost (GAAP) (excluding Total Exploration Costs) - (h)

2,349

2,321

2,416

2,259

2,211

Total Operating Cost (Non-GAAP) (excluding Total Exploration Costs) - (i)

2,370

2,321

2,416

2,259

2,211

Exploration Costs

43

34

45

41

43

Dry Hole Costs

—

5

1

—

—

Impairments

15

81

19

79

54

Total Exploration Costs (GAAP)

58

120

65

120

97

Less: Certain Impairments (2)

—

(35)

(2)

(19)

(23)

Total Exploration Costs (Non-GAAP)

58

85

63

101

74

Total Operating Cost (GAAP) (including Total Exploration Costs (GAAP)) - (j)

2,407

2,441

2,481

2,379

2,308

Total Operating Cost (Non-GAAP) (including Total Exploration Costs (Non-GAAP)) - (k)

2,428

2,406

2,479

2,360

2,285

Total Wellhead Revenues less Total Operating Cost (GAAP) (including Total Exploration Costs (GAAP))

1,977

2,069

1,894

2,178

2,327

Total Wellhead Revenues less Total Operating Cost (Non-GAAP) (including Total Exploration Costs (Non-GAAP))

1,956

2,104

1,896

2,197

2,350

29

Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)

3Q 2024

2Q 2024

1Q 2024

4Q 2023

3Q 2023

Per Barrel of Oil Equivalent (Boe) Calculations (GAAP)

Composite Average Operating Revenues and Other per Boe - (b) / (a)

60.25

63.22

65.42

67.34

67.59

Composite Average Operating Expenses per Boe - (c) / (a)

39.15

40.87

41.16

40.81

39.77

Composite Average Operating Income per Boe - (d) / (a)

21.10

22.35

24.26

26.53

27.82

Composite Average Wellhead Revenue per Boe - (e) / (a)

44.31

47.31

46.73

48.27

50.46

Total Operating Cost per Boe (excluding DD&A and Total Exploration Costs) - (f) / (a)

13.32

14.03

14.33

14.08

14.29

Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) / (a) - (f) / (a)]

30.99

33.28

32.40

34.19

36.17

Total Operating Cost per Boe (excluding Total Exploration Costs) - (h) / (a)

23.74

24.35

25.80

23.93

24.07

Composite Average Margin per Boe (excluding Total Exploration Costs) - [(e) / (a) - (h) / (a)]

20.57

22.96

20.93

24.34

26.39

Total Operating Cost per Boe (including Total Exploration Costs) - (j) / (a)

24.33

25.61

26.49

25.20

25.13

Composite Average Margin per Boe (including Total Exploration Costs) - [(e) / (a) - (j) / (a)]

19.98

21.70

20.24

23.07

25.33

Per Barrel of Oil Equivalent (Boe) Calculations (Non-GAAP)

Total Operating Cost per Boe (excluding DD&A and Total Exploration Costs) - (g) / (a)

13.53

14.03

14.33

14.08

14.29

Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) / (a) - (g) / (a)]

30.78

33.28

32.40

34.19

36.17

Total Operating Cost per Boe (excluding Total Exploration Costs) - (i) / (a)

23.95

24.35

25.80

23.93

24.07

Composite Average Margin per Boe (excluding Total Exploration Costs) - [(e) / (a) - (i) / (a)]

20.36

22.96

20.93

24.34

26.39

Total Operating Cost per Boe (including Total Exploration Costs) - (k) / (a)

24.54

25.24

26.47

25.00

24.88

Composite Average Margin per Boe (including Total Exploration Costs) - [(e) / (a) - (k) / (a)]

19.77

22.07

20.26

23.27

25.58

30

Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)

2023

2022

2021

Volume - Million Barrels of Oil Equivalent - (a)

359.4

331.5

302.5

Total Operating Revenues and Other (b)

24,186

25,702

18,642

Total Operating Expenses (c)

14,583

15,736

12,540

Operating Income (Loss) (d)

9,603

9,966

6,102

Wellhead Revenues

Crude Oil and Condensate

13,748

16,367

11,125

Natural Gas Liquids

1,884

2,648

1,812

Natural Gas

1,744

3,781

2,444

Total Wellhead Revenues - (e)

17,376

22,796

15,381

Operating Costs

Lease and Well

1,454

1,331

1,135

Gathering, Processing and Transportation Costs (1)

1,620

1,587

1,422

General and Administrative (GAAP)

640

570

511

Less: Severance Tax Consulting Fees

—

(16)

—

General and Administrative (Non-GAAP) (3)

640

554

511

Taxes Other Than Income (GAAP)

1,284

1,585

1,047

Add: Severance Tax Refund

—

115

—

Taxes Other Than Income (Non-GAAP) (4)

1,284

1,700

1,047

Interest Expense, Net

148

179

178

Total Operating Cost (GAAP) (excluding DD&A and Total Exploration Costs) - (f)

5,146

5,252

4,293

Total Operating Cost (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (g)

5,146

5,351

4,293

Depreciation, Depletion and Amortization (DD&A)

3,492

3,542

3,651

Total Operating Cost (GAAP) (excluding Total Exploration Costs) - (h)

8,638

8,794

7,944

Total Operating Cost (Non-GAAP) (excluding Total Exploration Costs) - (i)

8,638

8,893

7,944

Exploration Costs

181

159

154

Dry Hole Costs

1

45

71

Impairments

202

382

376

Total Exploration Costs (GAAP)

384

586

601

Less: Certain Impairments (2)

(42)

(113)

(15)

Total Exploration Costs (Non-GAAP)

342

473

586

Total Operating Cost (GAAP) (including Total Exploration Costs (GAAP)) - (j)

9,022

9,380

8,545

Total Operating Cost (Non-GAAP) (including Total Exploration Costs (Non-GAAP)) - (k)

8,980

9,366

8,530

Total Wellhead Revenues less Total Operating Cost (GAAP) (including Total Exploration Costs (GAAP))

8,354

13,416

6,836

Total Wellhead Revenues less Total Operating Cost (Non-GAAP) (including Total Exploration Costs (Non-GAAP))

8,396

13,430

6,851

31

Revenues, Costs and Margins Per Barrel of Oil Equivalent

(Continued)

In millions of USD, except Boe and per Boe amounts (Unaudited)

2023

2022

2021

Per Barrel of Oil Equivalent (Boe) Calculations (GAAP)

Composite Average Operating Revenues and Other per Boe - (b) / (a)

67.30

77.53

61.63

Composite Average Operating Expenses per Boe - (c) / (a)

40.58

47.47

41.46

Composite Average Operating Income (Loss) per Boe - (d) / (a)

26.72

30.06

20.17

Composite Average Wellhead Revenue per Boe - (e) / (a)

48.34

68.77

50.84

Total Operating Cost per Boe (excluding DD&A and Total Exploration Costs) - (f) / (a)

14.31

15.84

14.19

Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) / (a) - (f) / (a)]

34.03

52.93

36.65

Total Operating Cost per Boe (excluding Total Exploration Costs) - (h) / (a)

24.03

26.53

26.26

Composite Average Margin per Boe (excluding Total Exploration Costs) - [(e) / (a) - (h) / (a)]

24.31

42.24

24.58

Total Operating Cost per Boe (including Total Exploration Costs) - (j) / (a)

25.10

28.30

28.25

Composite Average Margin per Boe (including Total Exploration Costs) - [(e) / (a) - (j) / (a)]

23.24

40.47

22.59

Per Barrel of Oil Equivalent (Boe) Calculations (Non-GAAP)

Total Operating Cost per Boe (excluding DD&A and Total Exploration Costs) - (g) / (a)

14.31

16.14

14.19

Composite Average Margin per Boe (excluding DD&A and Total Exploration Costs) - [(e) / (a) - (g) / (a)]

34.03

52.63

36.65

Total Operating Cost per Boe (excluding Total Exploration Costs) - (i) / (a)

24.03

26.83

26.26

Composite Average Margin per Boe (excluding Total Exploration Costs) - [(e) / (a) - (i) / (a)]

24.31

41.94

24.58

Total Operating Cost per Boe (including Total Exploration Costs) - (k) / (a)

24.98

28.26

28.20

Composite Average Margin per Boe (including Total Exploration Costs) - [(e) / (a) - (k) / (a)]

23.36

40.51

22.64

(1)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.

(2)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 exploration 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).

(3)EOG believes excluding the above-referenced items from General and Administrative Costs is appropriate and provides useful information to investors, as EOG views such items as non-recurring.

(4)EOG believes excluding the above-referenced items from Taxes Other Than Income is appropriate and provides useful information to investors, as EOG views such items as non-recurring.

32

Mentions · how they’re counted

CategoryUnderlinedWord counterModel’s count
AI

AI, artificial intelligence, generative AI, machine learning, large language model, LLM

0——
Layoffs

layoffs, RIF, headcount reduction, workforce optimization, restructuring

0——
Recession

recession, downturn, contraction, slowdown

0——
Tariffs

tariff, trade war, trade barriers, trade restrictions, trade policy

0——
Buybacks

share repurchase, buyback program

0——

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: SEC EDGAR · public domain · Highlights by Palanor