Natural gas equivalents are
determined using the ratio of 6.0 thousand cubic feet of natural gas
to 1.0 barrel of crude oil and condensate or natural gas liquids.
EOG RESOURCES, INC.
SUMMARY BALANCE SHEETS
----------------------
(Unaudited; in thousands, except share data)
September 30, December 31,
2009 2008
------------- ------------
ASSETS
Current Assets
Cash and Cash Equivalents $608,511 $331,311
Accounts Receivable, Net 604,260 722,695
Inventories 240,230 187,970
Assets from Price Risk Management
Activities 290,536 779,483
Income Taxes Receivable 27,134 27,053
Other 61,018 59,939
------ ------
Total 1,831,689 2,108,451
Property, Plant and Equipment
Oil and Gas Properties (Successful
Efforts Method) 23,515,362 20,803,629
Other Property, Plant and Equipment 1,261,505 1,057,888
--------- ---------
Total Property, Plant and Equipment 24,776,867 21,861,517
Less: Accumulated Depreciation,
Depletion and Amortization (9,524,312) (8,204,215)
---------- ----------
Total Property, Plant and Equipment,
Net 15,252,555 13,657,302
Other Assets 137,049 185,473
------- -------
Total Assets $17,221,293 $15,951,226
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $783,764 $1,122,209
Accrued Taxes Payable 86,334 86,265
Dividends Payable 36,255 33,461
Liabilities from Price Risk Management
Activities 16,370 4,429
Deferred Income Taxes 114,304 368,231
Current Portion of Long-Term Debt 37,000 37,000
Other 127,124 113,321
------- -------
Total 1,201,151 1,764,916
Long-Term Debt 2,760,000 1,860,000
Other Liabilities 609,150 498,291
Deferred Income Taxes 3,133,252 2,813,522
Commitments and Contingencies
Stockholders' Equity
Common Stock, $0.01 Par, 640,000,000
Shares Authorized: 252,421,628 Shares
Issued at September 30, 2009 and
249,758,577 Shares Issued at
December 31, 2008 202,524 202,498
Additional Paid In Capital 528,544 323,805
Accumulated Other Comprehensive Income 291,627 27,787
Retained Earnings 8,502,940 8,466,143
Common Stock Held in Treasury, 128,898
Shares at September 30, 2009
and 126,911 Shares at December 31, 2008 (7,895) (5,736)
------ ------
Total Stockholders' Equity 9,517,740 9,014,497
--------- ---------
Total Liabilities and Stockholders' Equity $17,221,293 $15,951,226
=========== ===========
EOG RESOURCES, INC.
SUMMARY STATEMENTS OF CASH FLOWS
--------------------------------
(Unaudited; in thousands)
Nine Months Ended
September 30,
----------------
2009 2008
---- ----
Cash Flows from Operating Activities
Reconciliation of Net Income to Net
Cash Provided by Operating Activities:
Net Income $146,200 $1,975,447
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization 1,150,251 958,740
Impairments 181,921 113,591
Stock-Based Compensation Expenses 74,532 76,344
Deferred Income Taxes 39,793 790,699
Other, Net 2,738 (135,325)
Dry Hole Costs 39,653 28,062
Mark-to-Market Commodity Derivative Contracts
Total Gains (405,830) (69,067)
Realized Gains (Losses) 986,980 (237,326)
Other, Net 9,385 14,390
Changes in Components of Working
Capital and Other Assets and Liabilities
Accounts Receivable 119,099 (219,947)
Inventories (23,592) (45,354)
Accounts Payable (361,698) 221,449
Accrued Taxes Payable (17,955) 135,747
Other Assets (4,255) (18,756)
Other Liabilities 9,357 (3,397)
Changes in Components of Working Capital
Associated with Investing and Financing
Activities 147,097 14,389
------- ------
Net Cash Provided by Operating Activities 2,093,676 3,599,686
Investing Cash Flows
Additions to Oil and Gas Properties (2,267,884) (3,532,343)
Additions to Other Property, Plant and
Equipment (240,614) (320,699)
Proceeds from Sales of Assets 2,515 369,669
Changes in Components of Working Capital
Associated with Investing Activities (146,783) (14,501)
Other, Net 1,405 (1,316)
----- ------
Net Cash Used in Investing Activities (2,651,361) (3,499,190)
Financing Cash Flows
Long-Term Debt Borrowings 900,000 750,000
Long-Term Debt Repayments - (38,000)
Dividends Paid (105,989) (81,453)
Redemption of Preferred Stock - (5,395)
Excess Tax Benefits from Stock-Based
Compensation 34,052 69,824
Treasury Stock Purchased (9,888) (11,266)
Proceeds from Stock Options Exercised and
Employee Stock Purchase Plan 13,691 67,414
Debt Issuance Costs (8,887) (6,704)
Other, Net (314) 112
---- ---
Net Cash Provided by Financing Activities 822,665 744,532
Effect of Exchange Rate Changes on Cash 12,220 (13,282)
------ -------
Increase in Cash and Cash Equivalents 277,200 831,746
Cash and Cash Equivalents at Beginning of
Period 331,311 54,231
------- ------
Cash and Cash Equivalents at End of Period $608,511 $885,977
======== ========
EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO
---------------------------------------------------------------
COMMON STOCKHOLDERS (Non-GAAP)
-----------------------------
TO NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (GAAP)
-----------------------------------------------------
(Unaudited; in thousands, except per share data)
The following chart adjusts three-month and nine-month periods ended
September 30, 2009 and 2008 reported Net Income Available to Common
Stockholders (GAAP) to reflect actual net cash realized from financial
commodity price transactions by eliminating the unrealized mark-to-market
(gains) losses from these transactions and to eliminate the gain on the
sale of EOG's Appalachian assets in the first quarter of 2008. EOG
believes this presentation may be useful to investors who follow the
practice of some industry analysts who adjust reported company earnings to
match realizations to production settlement months and make certain other
adjustments to exclude one-time items. EOG management uses this
information for comparative purposes within the industry.
Three Months Ended Nine Months Ended
September 30, September 30,
--------------- ----------------
2009 2008 2009 2008
---- ---- ---- ----
Reported Net Income
Available to Common
Stockholders (GAAP) $4,196 $1,556,285 $146,200 $1,975,004
Mark-to-Market (MTM)
Commodity Derivative
Contracts Impact
Total Gains (20,877) (1,381,733) (405,830) (69,067)
Realized Gains (Losses) 331,240 (122,467) 986,980 (237,326)
------- -------- ------- --------
Subtotal 310,363 (1,504,200) 581,150 (306,393)
------- ---------- ------- --------
After Tax MTM Impact 199,719 (967,953) 373,970 (197,164)
------- -------- ------- --------
Less: Gain on Sale of
Appalachian Assets, Net
of Tax - - - (84,748)
--- --- --- -------
Adjusted Net Income
Available to Common
Stockholders (Non-GAAP) $203,915 $588,332 $520,170 $1,693,092
======== ======== ======== ==========
Net Income Per Share
Available to Common
Stockholders (GAAP)
Basic $0.02 $6.30 $0.59 $8.02
===== ===== ===== =====
Diluted $0.02 $6.20 $0.58 $7.88
===== ===== ===== =====
Adjusted Net Income Per
Share Available to
Common Stockholders (Non-
GAAP)
Basic $0.82 $2.38 $2.09 $6.87
===== ===== ===== =====
Diluted $0.81 $2.34 $2.07 $6.75
===== ===== ===== =====
Average Number of Shares
Basic 249,535 247,155 248,647 246,343
======= ======= ======= =======
Diluted 252,422 250,930 251,288 250,765
======= ======= ======= =======
EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF DISCRETIONARY CASH FLOW
------------------------------------------------------
AVAILABLE TO COMMON STOCKHOLDERS (Non-GAAP)
-------------------------------------------
TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)
---------------------------------------------------
(Unaudited; in thousands)
The following chart reconciles three-month and nine-month periods ended
September 30, 2009 and 2008 Net Cash Provided by Operating Activities
(GAAP) to Discretionary Cash Flow Available to Common Stockholders (Non-
GAAP). EOG believes this presentation may be useful to investors who
follow the practice of some industry analysts who adjust Net Cash Provided
by Operating Activities for Exploration Costs (excluding Stock-Based
Compensation Expenses), Changes in Components of Working Capital and Other
Assets and Liabilities, Changes in Components of Working Capital
Associated with Investing and Financing Activities and Preferred Stock
Dividends. EOG management uses this information for comparative purposes
within the industry.
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2009 2008 2009 2008
---- ---- ---- ----
Net Cash Provided by
Operating Activities
(GAAP) $816,458 $1,537,065 $2,093,676 $3,599,686
Adjustments
Exploration Costs
(excluding Stock-Based
Compensation Expenses) 39,814 32,818 113,644 131,909
Changes in Components of
Working Capital and Other
Assets and Liabilities
Accounts Receivable 29,922 (175,579) (119,099) 219,947
Inventories 1,441 36,178 23,592 45,354
Accounts Payable (53,125) 34,046 361,698 (221,449)
Accrued Taxes Payable 212 (228,485) 17,955 (135,747)
Other Assets (3,232) (42,867) 4,255 18,756
Other Liabilities (34,199) (5,043) (9,357) 3,397
Changes in Components of
Working Capital Associated
with Investing and
Financing Activities 22,086 (15,164) (147,097) (14,389)
Preferred Stock Dividends - - - (443)
--- --- --- ----
Discretionary Cash Flow
Available to Common
Stockholders (Non-GAAP) $819,377 $1,172,969 $2,339,267 $3,647,021
======== ========== ========== ==========
EOG RESOURCES, INC.
FOURTH QUARTER AND FULL YEAR 2009 FORECAST AND BENCHMARK
--------------------------------------------------------
COMMODITY PRICING
-----------------
(a) Fourth Quarter and Full Year 2009 Forecast
The forecast items for the fourth quarter and full year 2009 set forth
below for EOG Resources, Inc. (EOG) are based on current available
information and expectations as of the date of the accompanying press
release. This forecast replaces and supersedes any previously issued
guidance or forecast.
(b) Benchmark Commodity Pricing
EOG bases United States and Canada natural gas price differentials upon
the natural gas price at Henry Hub, Louisiana using the simple average of
the NYMEX settlement prices for the last three trading days of the
applicable month.
EOG bases United States, Canada and Trinidad crude oil and condensate
price differentials upon the West Texas Intermediate crude oil price at
Cushing, Oklahoma using the simple average of the NYMEX settlement prices
for each trading day within the applicable calendar month.
ESTIMATED RANGES
----------------
(Unaudited)
Full Year
4Q 2009 2009
------- ---------
Daily Production
Natural Gas (MMcfd)
United States 1,075 - 1,115 1,132 - 1,145
Canada 210 - 230 221 - 226
Trinidad 240 - 260 260 - 264
Other International 10 - 15 13 - 15
Total 1,535 - 1,620 1,626 - 1,650
Crude Oil and Condensate
(MBbld)
United States 49.0 - 52.0 47.0 - 48.0
Canada 4.8 - 6.8 4.0 - 4.4
Trinidad 2.8 - 3.2 2.9 - 3.1
Total 56.6 - 62.0 53.9 - 55.5
Natural Gas Liquids (MBbld)
United States 21.0 - 26.0 22.0 - 23.2
Canada 0.7 - 1.0 0.9 - 1.1
Total 21.7 - 27.0 22.9 - 24.3
Natural Gas Equivalent
Volumes (MMcfed)
United States 1,495 - 1,583 1,546 - 1,572
Canada 243 - 277 250 - 259
Trinidad 257 - 279 278 - 283
Other International 10 - 15 13 - 15
Total 2,005 - 2,154 2,087 - 2,129
ESTIMATED RANGES
----------------
(Unaudited)
Operating Costs 4Q 2009 Full Year 2009
------- --------------
Unit Costs ($/Mcfe)
Lease and Well $0.73 - $0.77 $0.73 - $0.76
Transportation
Costs $0.33 - $0.37 $0.35 - $0.37
Depreciation,
Depletion and
Amortization $2.01 - $2.06 $1.99 - $2.03
Expenses ($MM)
Exploration, Dry Hole
and Impairment $150.0 - $170.0 $500.0 - $520.0
General and
Administrative $60.0 $64.0 $238.5 $244.5
Gathering and Processing $16.0 - $20.0 $61.0 - $67.0
Capitalized Interest $13.0 - $15.0 $50.5 - $54.0
Net Interest $28.0 - $32.0 $98.0 - $110.0
Taxes Other Than Income
(% of Revenue) 5.5% - 7.0% 5.1% - 5.6%
Income Taxes
Effective Rate 30% - 40% 35% - 45%
Current Taxes ($MM) $10 - $20 $65 - $85
Capital Expenditures ($MM)
- FY 2009
Exploration and
Development,
excluding Acquisitions Approximately $3,100
Gathering, Processing and
Other Approximately $300
Acquisitions Approximately $320
Pricing - (Refer to Benchmark
Commodity Pricing in text)
Natural Gas ($/Mcf)
Differentials (include
the effect of physical
contracts)
United States -
below NYMEX
Henry Hub $0.15 - $0.35 $0.33 - $0.38
Canada - below
NYMEX Henry Hub $0.20 - $0.40 $0.25 - $0.35
Realizations
Trinidad $1.50 - $2.50 $1.50 - $1.75
Other
International $3.75 - $5.25 $4.20 - $4.60
Crude Oil and Condensate
($/Bbl)
Differentials
United States -
below WTI $9.50 - $13.00 $8.00 - $9.00
Canada - below
WTI $6.00 - $10.00 $4.40 - $5.00
Trinidad -
below WTI $8.75 - $12.75 $10.50 - $11.50
Definitions
-----------
$/Bbl U.S. Dollars per barrel
$/Mcf U.S. Dollars per thousand cubic feet
$/Mcfe U.S. Dollars per thousand cubic feet equivalent
$MM U.S. Dollars in millions
MBbld Thousand barrels per day
MMcfd Million cubic feet per day
MMcfed Million cubic feet equivalent per day
NYMEX New York Mercantile Exchange
WTI West Texas Intermediate
SOURCE EOG Resources, Inc.
