HOUSTON, May 6, 2021 - EOG Resources Inc. (EOG) today reported first quarter 2021 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 and ratio data
1Q 2021
4Q 2020
1Q 2020
Total Revenue
3,694
2,965
4,718
Net Income
677
337
10
Net Income Per Share
1.16
0.58
0.02
GAAP
Net Cash Provided by Operating Activities
1,870
1,121
2,585
Total Expenditures
1,067
1,107
1,826
Current and Long-Term Debt
5,133
5,816
5,222
Cash and Cash Equivalents
3,388
3,329
2,907
Debt-to-Total Capitalization
19.8%
22.3%
19.6%
Adjusted Net Income
946
411
318
Adjusted Net Income Per Share
1.62
0.71
0.55
Discretionary Cash Flow
2,010
1,494
1,666
Non- GAAP
Cash Capital Expenditures before Acquisitions
945
828
1,685
Free Cash Flow
1,065
666
(19)
Net Debt
1,745
2,487
2,315
Net Debt-to-Total Capitalization
7.8%
10.9%
9.7%
First Quarter 2021 Highlights
Declared special dividend of $1.00 per share and regular quarterly dividend of $0.4125 per share, an indicated annual total cash return to shareholders of $1.5 billion
Earned an adjusted $1.62 per share, second-highest quarterly EPS in EOG history
Generated $1.1 billion of free cash flow, a quarterly record
Capital expenditures 6% below guidance midpoint driven by sustainable efficiency improvements
Oil production above high-end of guidance range
Made significant progress toward 5% well cost reduction goal in 2021
Reached agreement to divest China assets
Volumes and Capital Expenditures
Wellhead Volumes
1Q 2021
1Q 2021 Guidance Midpoint
4Q 2020
1Q 2020
Crude Oil and Condensate (MBod)
431.0
425.1
444.8
483.3
Natural Gas Liquids (MBbld)
124.3
130.0
141.4
161.3
Natural Gas (MMcfd)
1,342
1,360
1,292
1,378
Total Crude Oil Equivalent (MBoed)
778.9
781.8
801.5
874.1
Cash Capital Expenditures before Acquisitions ($MM)
945
1,000
828
1,685
From William R. "Bill" Thomas, Chairman and Chief Executive Officer "Our outstanding first quarter results and special dividend announcement reflect the power of EOG's returns-focused strategy. True to the EOG culture, our employees have embraced the higher hurdle rate with the shift to double-premium, which drove record returns in the first quarter. EOG continues to deliver sustainable improvements in operating performance, once again exceeding expectations.
"Our robust operating performance translates into financial results that allow us to deliver on our cash flow priorities. Earlier this year we raised the regular dividend and reduced debt outstanding. Our long-standing financial discipline now positions EOG to return additional cash to shareholders through a special dividend, bringing total expected return of cash to shareholders in 2021 to $1.5 billion.
"EOG is off to a great start in 2021 and I am confident that we will continue to get better going forward."
First Quarter 2021 Financial Performance
Adjusted Earnings per Share 1Q 2021 vs 4Q 2020
Prices and Hedges Higher prices for crude oil, natural gas and natural gas liquids all contributed to higher earnings. Average crude oil prices increased to $58.02 per barrel in the 1Q from $41.81 per barrel in the 4Q, contributing about 60% of the $1.40 earnings per share increase attributable to higher prices. EOG also realized higher prices for a portion of natural gas sold on a spot basis during periods of strong demand related to winter storms and for natural gas sold at prices tied to LNG export markets. Price gains were partially offset by a decrease in hedge settlement value, to $30 million cash paid in 1Q from $72 million cash received in 4Q.
Volume Overcoming downtime from Winter Storm Uri, which reduced 1Q production by approximately 3%, total company crude oil production of 431,000 Bopd was above the high end of the guidance range and just 3% lower than 4Q. NGL production was 12% lower, partially offset by a 4% increase in natural gas production, driven by the market-based decision to reduce ethane extraction. Total company equivalent volumes decreased 3%.
Per-Unit Costs Total per-unit costs in 1Q were slightly above the mid-point of the guidance range, due to higher prices for fuel and power during the winter storm. Compared with 4Q, higher taxes other than income related to increased product prices accounted for about half the increase in per-unit costs. Higher fuel and power, DD&A and production-related costs also contributed to the increase.
Change in Cash 1Q 2021 vs 4Q 2020
Free Cash Flow EOG generated discretionary cash flow (net cash provided by operating activities before exploration expense and changes in working capital) of $2.0 billion in 1Q. The company incurred $945 million of cash capital expenditures before acquisitions, resulting in $1.1 billion of free cash flow.
Capital Expenditures Cash capital expenditures before acquisitions were below the midpoint of the guidance range due to lower well costs from sustainable efficiency improvements. Faster drilling times, more efficient completion operations and lower-cost sand and water sourcing contributed to lower overall well costs. EOG is well on track to meet or exceed its 5% well cost reduction goal for 2021.
Debt On February 1, 2021, EOG repaid, with cash on hand, the $750 million aggregate principal amount of its 4.100% Senior Notes due 2021 that matured on that date.
First Quarter 2021 Operating Performance
Lease and Well Per-unit LOE costs declined 7% compared with the prior?year period due to lower water handling costs, workover costs and overall efficiency improvements. Per-unit LOE also was $0.10 below the 1Q 2021 guidance midpoint. Compared with the 4Q 2020, per-unit LOE costs increased slightly due to higher fuel and power prices during the winter storm and seasonal factors.
Transportation, Gathering and Processing Per-unit transportation costs increased in 1Q as EOG expanded its transportation and storage capacity to provide greater flexibility and support higher price realizations. Higher fuel and power prices during the winter storm also contributed to increased transportation and gathering and processing costs.
General and Administrative G&A costs on a per-unit basis were in-line with the 4Q 2020 and slightly below the guidance midpoint.
Depreciation, Depletion and Amortization Per-unit DD&A costs in the 1Q were in-line with the target, which was higher compared with the 4Q due to negative price- related reserve revisions.
Special Dividend and China Divestiture
Declared $1.00 per Share Special Dividend The Board of Directors declared a regular dividend of $0.4125 per share on EOG's Common Stock. The indicated annual rate is $1.65. The Board also declared a special dividend of $1.00 per share on EOG's Common Stock. Both dividends are payable July 30, 2021 to stockholders of record as of July 16, 2021.
China Divestiture EOG reached an agreement to divest all of its assets in China for proceeds of approximately $140 million. Closing, subject to customary conditions, is expected in the second quarter of 2021. Current net production from the divested assets is approximately 25 MMcfd of natural gas.
First Quarter 2021 Results vs Guidance
Crude Oil and Condensate (MBod)
1Q 2021
1Q 2021 Guidance Midpoint
Variance
4Q 2020
3Q 2020
2Q 2020
1Q 2020
United States
428.7
423.0
5.7
442.4
376.6
330.9
482.7
Trinidad
2.2
2.0
0.2
2.3
1.0
0.1
0.5
Other International
0.1
0.1
0.0
0.1
0.0
0.1
0.1
Total
431.0
425.1
5.9
444.8
377.6
331.1
483.3
NGLs (MBbld)
Total
124.3
130.0
(5.7)
141.4
140.1
101.2
161.3
Natural Gas (MMcfd)
United States
1,100
1,125
(25)
1,075
1,008
939
1,139
Trinidad
217
215
2
192
151
174
201
Other International
25
20
5
25
31
34
38
Total
1,342
1,360
(18)
1,292
1,190
1,147
1,378
Total Crude Oil Equivalent Volumes (MBoed)
778.9
781.8
(2.9)
801.5
716.0
623.4
874.1
Total MMBoe
70.1
70.4
0.3
73.7
65.9
56.7
79.5
Capital Expenditures ($MM)
945
1,000
(55)
828
499
478
1,685
Benchmark Price
Oil (WTI) ($/Bbl)
57.80
42.67
40.94
27.85
46.08
Natural Gas (HH) ($/Mcf)
2.69
2.65
1.94
1.73
1.98
Crude Oil and Condensate ($/Bbl) - above (below) WTI
United States
0.27
0.20
0.07
(0.81)
(0.75)
(7.45)
0.89
Trinidad
(8.03)
(10.50)
2.47
(9.76)
(15.53)
(27.25)
(11.15)
Other International
(19.19)
(18.00)
(1.19)
(6.77)
(15.65)
20.93
11.43
NGLs - Realizations (% of WTI)
48.5%
49.0%
(0.5%)
41.1%
35.0%
36.6%
23.7%
Nat Gas ($/Mcf) - above (below) HH
United States
2.83
3.00
(0.17)
(0.36)
(0.45)
(0.62)
(0.48)
Natural Gas Realizations ($/Mcf)
Trinidad
3.38
3.35
0.03
3.57
2.35
2.13
2.17
Other International
5.66
5.70
(0.04)
5.47
4.73
4.36
4.32
Unit Costs ($/Boe)
Lease and Well
3.85
3.95
(0.10)
3.54
3.45
4.32
4.14
Transportation Costs
2.88
2.80
0.08
2.64
2.74
2.67
2.62
General and Administrative
1.57
1.65
(0.08)
1.54
1.89
2.32
1.44
Gathering and Processing
1.98
1.80
0.18
1.62
1.74
1.71
1.62
Cash Operating Costs
10.28
10.20
0.08
9.34
9.82
11.02
9.82
Depreciation, Depletion and Amortization
12.84
12.85
(0.01)
11.81
12.49
12.46
12.57
Expenses ($MM)
Exploration and Dry Hole
44
40
4
40
51
27
40
Impairment (GAAP)
44
143
79
305
1,573
Impairment (excluding certain impairments (non-GAAP))
43
70
(27)
57
52
66
57
Capitalized Interest
8
8
0
7
7
8
9
Net Interest
47
48
(1)
53
53
54
45
Taxes Other Than Income (% of Wellhead Revenue)
6.7%
7.0%
(0.3%)
5.1%
7.2%
9.4%
6.5%
Income Taxes
Effective Rate
23.2%
23.5%
(0.3%)
21.1%
19.2%
20.6%
68.4%
Deferred Ratio
(18%)
0%
(18%)
60%
330%
107%
743%
Second Quarter and Full-Year 2021 Guidance1
(Unaudited)
See "Endnotes" below for related discussion and definitions.
2Q 2021 Guidance Range
FY 2021 Guidance Range
2020 Actual
2019 Actual
Crude Oil and Condensate Volumes (MBod)
United States
436.0
-
446.0
433.0
-
444.0
408.1
455.5
Trinidad
1.5
-
2.3
1.0
-
1.8
1.0
0.6
Other International
0.0
-
0.2
0.0
-
0.2
0.1
0.1
Total
437.5
-
448.5
434.0
-
446.0
409.2
456.2
Natural Gas Liquids Volumes (MBbld)
Total
125.0
-
140.0
125.0
-
145.0
136.0
134.1
Natural Gas Volumes (MMcfd)
United States
1,110
-
1,210
1,110
-
1,210
1,040
1,069
Trinidad
195
-
225
180
-
220
180
260
Other International
10
-
22
5
-
15
32
37
Total
1,315
-
1,457
1,295
-
1,445
1,252
1,366
Crude Oil Equivalent Volumes (MBoed)
United States
746.0
-
787.7
743.0
-
790.7
717.5
767.8
Trinidad
34.0
-
39.8
31.0
-
38.5
30.9
44.0
Other International
1.7
-
3.9
0.8
-
2.7
5.4
6.2
Total
781.7
-
831.4
774.8
-
831.9
753.8
818.0
Benchmark Price
Oil (WTI) ($/Bbl)
39.40
57.04
Natural Gas (HH) ($/Mcf)
2.08
2.62
Crude Oil and Condensate Differentials - above (below) WTI2 ($/Bbl)
United States
(0.25)
-
0.75
(0.55)
-
1.45
(0.75)
0.70
Trinidad
(12.50)
-
(10.50)
(12.40)
-
(10.40)
(9.20)
(9.88)
Other International
(10.50)
-
(6.50)
(16.20)
-
(13.20)
3.68
0.36
Natural Gas Liquids - Realizations as % of WTI
Total
35%
-
45%
36%
-
48%
34.0%
28.1%
Natural Gas Differentials - above (below) NYMEX Henry Hub3 ($/Mcf)
United States
(0.40)
-
0.00
(0.25)
-
1.25
(0.47)
(0.40)
Natural Gas Realizations ($/Mcf)
Trinidad
3.10
-
3.60
3.10
-
3.60
2.57
2.72
Other International
5.40
-
5.90
5.20
-
6.20
4.66
4.44
Capital Expenditures4 ($MM)
1,000
-
1,200
3,700
-
4,100
3,490
6,234
Operating Unit Costs ($/Boe)
Lease and Well
3.45
-
4.15
3.50
-
4.20
3.85
4.58
Transport Costs
2.60
-
3.00
2.65
-
3.05
2.66
2.54
General and Administrative
1.50
-
1.60
1.50
-
1.60
1.75
1.64
Gathering and Processing
1.75
-
1.95
1.75
-
1.95
1.66
1.60
Cash Operating Costs
9.30
-
10.70
9.40
-
10.80
9.92
10.36
Depreciation, Depletion and Amortization
12.00
-
12.60
11.70
-
12.70
12.32
12.56
Expenses ($MM)
Exploration and Dry Hole
40
-
50
140
-
180
159
168
Impairment (GAAP)
2,100
518
Impairment (excluding certain impairments (non-GAAP))
45
-
95
255
-
295
232
243
Capitalized Interest
5
-
10
25
-
30
31
38
Net Interest
45
-
50
180
-
185
205
185
Taxes Other Than Income (% of Wellhead Revenue)
6.0%
-
8.0%
6.5%
-
7.5%
6.6%
6.9%
Income Taxes
Effective Rate
20%
-
25%
21%
-
26%
18.2%
22.9%
Deferred Ratio
0%
-
15%
0%
-
15%
54.8%
107.4%
First Quarter 2021 Results Webcast Friday, May 7, 2021, 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, Trinidad, and China. To learn more visit www.eogresources.com.
Investor Contacts David Streit 713?571?4902 Neel Panchal 713?571?4884
Media and Investor Contact Kimberly Ehmer 713?571?4676
Endnotes
1)
The forecast items for the second quarter and full year 2021 set forth above for EOG Resources Inc. (EOG) are based on current available information and expectations as of the date of the accompanying 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 the accompanying press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.
2)
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.
3)
EOG bases United States 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.
4)
The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Exploration Costs, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs and any Non-Cash Transactions.
Glossary
Acq
Acquisitions
ATROR
After-tax rate of return
Bbl
Barrel
Bn
Billion
Boe
Barrels of oil equivalent
Bopd
Barrels of oil per day
Capex
Capital expenditures
CO2e
Carbon dioxide equivalent
DCF
Discretionary cash flow
DD&A
Depreciation, Depletion and Amortization
Disc
Discoveries
Divest
Divestitures
EPS
Earnings per share
Ext
Extensions
G&A
General and administrative expense
G&P
Gathering and processing expense
GHG
Greenhouse gas
HH
Henry Hub
LOE
Lease operating expense, or lease and well expense
MBbld
Thousand barrels of liquids per day
MBod
Thousand barrels of oil per day
MBoe
Thousand barrels of oil equivalent
MBoed
Thousand barrels of oil equivalent per day
Mcf
Thousand cubic feet of natural gas
MMBoe
Million barrels of oil equivalent
MMcfd
Million cubic feet of natural gas per day
NGLs
Natural gas liquids
OTP
Other than price
NYMEX
U.S. New York Mercantile Exchange
QoQ
Quarter over quarter
Trans
Transportation expense
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, 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," "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 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 operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet goals or ambitions with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, or pay and/or increase dividends 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 these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. 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. Furthermore, this press release and any accompanying disclosures may include or reference certain forward?looking, non?GAAP financial measures, such as free cash flow or discretionary cash flow, and certain related estimates regarding future performance, results and financial position. 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 impairments and future changes in working capital. 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. 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. 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, 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, operating and capital costs 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 extent to which EOG is successful in its efforts to market its production of crude oil and condensate, natural gas liquids, 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;
the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, and export facilities;
the availability, cost, terms and timing of issuance or execution of, and competition for, 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 any changes or other actions which may result from the recent U.S. elections and change in U.S. administration and including tax laws and regulations; climate change and other environmental, health and safety laws and regulations relating to air emissions, 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 and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and drilling, completing and operating costs with respect to such properties;
the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
the availability and cost of employees and other personnel, facilities, equipment, materials (such as water 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, 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, including the COVID-19 pandemic;
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 conflict), including in the areas in which EOG operates;
the use of competing energy sources and the development of alternative energy sources;
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; and
the other factors described under ITEM 1A, Risk Factors, of EOG's Annual Report on Form 10?K for the fiscal year ended December 31, 2020 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.
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, 2020, 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. In addition, reconciliation and calculation schedules for non?GAAP financial measures can be found on the EOG website at www.eogresources.com.
Income Statements
In millions of USD, except per share data (Unaudited)
1Q 2021
4Q 2020
1Q 2020
Operating Revenues and Other
Crude Oil and Condensate
2,251
1,711
2,065
Natural Gas Liquids
314
229
161
Natural Gas
625
302
210
Gains (Losses) on Mark-to-Market Commodity Derivative Contracts
(367)
70
1,206
Gathering, Processing and Marketing
848
643
1,039
Gains (Losses) on Asset Dispositions, Net
(6)
(6)
16
Other, Net
29
16
21
Total
3,694
2,965
4,718
Operating Expenses
Lease and Well
270
261
330
Transportation Costs
202
195
208
Gathering and Processing Costs
139
119
128
Exploration Costs
33
41
40
Dry Hole Costs
11
-
-
Impairments
44
143
1,573
Marketing Costs
838
621
1,110
Depreciation, Depletion and Amortization
900
870
1,000
General and Administrative
110
113
114
Taxes Other Than Income
215
114
157
Total
2,762
2,477
4,660
Operating Income
932
488
58
Other Income (Expense), Net
(4)
(7)
18
Income Before Interest Expense and Income Taxes
928
481
76
Interest Expense, Net
47
53
45
Income Before Income Taxes
881
428
31
Income Tax Provision
204
91
21
Net Income
677
337
10
Dividends Declared per Common Share
0.4125
0.3750
0.3750
Net Income Per Share
Basic
1.17
0.58
0.02
Diluted
1.16
0.58
0.02
Average Number of Common Shares
Basic
580
580
578
Diluted
583
581
580
Wellhead Volumes and Prices
(Unaudited)
1Q 2021
1Q 2020
% Change
4Q 2020
Crude Oil and Condensate Volumes (MBbld) (1)
United States
428.7
482.7
-11%
442.4
Trinidad
2.2
0.5
340%
2.3
Other International (2)
0.1
0.1
0%
0.1
Total
431.0
483.3
-11%
444.8
Average Crude Oil and Condensate Prices ($/Bbl) (3)
United States
58.07
46.97
24%
41.86
Trinidad
49.77
34.93
43%
32.91
Other International (2)
38.61
57.51
-33%
35.9
Composite
58.02
46.96
24%
41.81
Natural Gas Liquids Volumes (MBbld) (1)
United States
124.3
161.3
-23%
141.4
Total
124.3
161.3
-23%
141.4
Average Natural Gas Liquids Prices ($/Bbl) (3)
United States
28.03
10.94
156%
17.54
Composite
28.03
10.94
156%
17.54
Natural Gas Volumes (MMcfd) (1)
United States
1,100
1,139
-3%
1,075
Trinidad
217
201
8%
192
Other International (2)
25
38
-34%
25
Total
1,342
1,378
-3%
1,292
Average Natural Gas Prices ($/Mcf) (3)
United States
5.52
1.50
268%
2.29
Trinidad
3.38
2.17
56%
3.57
Other International (2)
5.66
4.32
31%
5.47
Composite
5.17
1.67
209%
2.54
Crude Oil Equivalent Volumes (MBoed) (4)
United States
736.4
833.8
-12%
763.0
Trinidad
38.5
34.0
13%
34.2
Other International (2)
4.0
6.3
-37%
4.3
Total
778.9
874.1
11%
801.5
Total MMBoe (4)
70.1
79.5
-12%
73.7
(1)
Thousand barrels per day or million cubic feet per day, as applicable.
(2)
Other International includes EOG's China and Canada operations.
(3)
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 fiscal quarter ended March 31, 2021).
(4)
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, except share data (Unaudited)
March 31,
December 31,
2021
2020
Current Assets
Cash and Cash Equivalents
3,388
3,329
Accounts Receivable, Net
1,828
1,522
Inventories
562
629
Assets from Price Risk Management Activities
-
65
Income Taxes Receivable
-
23
Other
413
294
Total
6,191
5,862
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method)
65,645
64,793
Other Property, Plant and Equipment
4,590
4,479
Total Property, Plant and Equipment
70,235
69,272
Less: Accumulated Depreciation, Depletion and Amortization
(41,569)
(40,673)
Total Property, Plant and Equipment, Net
28,666
28,599
Deferred Income Taxes
4
2
Other Assets
1,310
1,342
Total Assets
36,171
35,805
Current Liabilities
Accounts Payable
1,945
1,681
Accrued Taxes Payable
449
206
Dividends Payable
239
217
Liabilities from Price Risk Management Activities
188
-
Current Portion of Long-Term Debt
39
781
Current Portion of Operating Lease Liabilities
269
295
Other
183
280
Total
3,312
3,460
Long-Term Debt
5,094
5,035
Other Liabilities
2,178
2,149
Deferred Income Taxes
4,825
4,859
Commitments and Contingencies
Stockholders' Equity
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 583,843,561 Shares Issued at March 31, 2021 and 583,694,850 Shares Issued at December 31, 2020
206
206
Additional Paid in Capital
5,979
5,945
Accumulated Other Comprehensive Loss
(14)
(12)
Retained Earnings
14,606
14,170
Common Stock Held in Treasury, 232,249 Shares at March 31, 2021 and 124,265 Shares at December 31, 2020
(15)
(7)
Total Stockholders' Equity
20,762
20,302
Total Liabilities and Stockholders' Equity
36,171
35,805
Cash Flows Statements
In millions of USD (Unaudited)
1Q 2021
4Q 2020
1Q 2020
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Net Income
677
337
10
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization
900
870
1,000
Impairments
44
143
1,573
Stock-Based Compensation Expenses
35
33
40
Deferred Income Taxes
(36)
55
45
(Gains) Losses on Asset Dispositions, Net
6
6
(16)
Other, Net
7
10
(9)
Dry Hole Costs
11
-
-
Mark-to-Market Commodity Derivative Contracts
Total (Gains) Losses
367
(70)
(1,206)
Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
(30)
72
84
Other, Net
1
2
-
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable
(308)
(464)
722
Inventories
64
31
103
Accounts Payable
172
427
434
Accrued Taxes Payable
243
(61)
(55)
Other Assets
(103)
(90)
58
Other Liabilities
(89)
21
(66)
Changes in Components of Working Capital Associated with Investing Activities
(91)
(201)
(132)
Net Cash Provided by Operating Activities
1,870
1,121
2,585
Investing Cash Flows
Additions to Oil and Gas Properties
(875)
(785)
(1,566)
Additions to Other Property, Plant and Equipment
(42)
(56)
(123)
Proceeds from Sales of Assets
5
3
26
Changes in Components of Working Capital Associated with Investing Activities
91
201
132
Net Cash Used in Investing Activities
(821)
(637)
(1,531)
Financing Cash Flows
Long-Term Debt Repayments
(750)
-
-
Dividends Paid
(219)
(220)
(167)
Treasury Stock Purchased
(10)
(1)
(5)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan
-
8
-
Repayment of Finance Lease Liabilities
(9)
(6)
(3)
Net Cash Used in Financing Activities
(988)
(219)
(175)
Effect of Exchange Rate Changes on Cash
(2)
(2)
-
Increase in Cash and Cash Equivalents
59
263
879
Cash and Cash Equivalents at Beginning of Period
3,329
3,066
2,028
Cash and Cash Equivalents at End of Period
3,388
3,329
2,907
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), Discretionary Cash Flow, Free Cash Flow, Adjusted EBITDAX, Net Debt and related statistics.
A reconciliation of each of these measures to their most directly comparable GAAP financial measure is included in the tables below and can also be found in the "Reconciliations & Guidance" section of the "Investors" page of the EOG website at www.eogresources.com.
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 and operating results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the company's performance. EOG uses these non-GAAP measures for purposes of (i) comparing EOG's financial and operating performance with the financial and operating performance of other companies in the industry and (ii) analyzing EOG's financial and operating 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), Total 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.
Adjusted Net Income (Loss)
In millions of USD, except per share data (Unaudited)
1Q 2021
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings
per Share
Reported Net Income (GAAP)
881
(204)
677
1.16
Adjustments:
Losses on Mark-to-Market Commodity Derivative Contracts
367
(81)
286
0.49
Net Cash Payments for Settlements of Commodity Derivative Contracts
(30)
7
(23)
(0.04)
Add: Losses on Asset Dispositions, Net
6
(1)
5
0.01
Add: Certain Impairments
1
-
1
-
Adjustments to Net Income
344
(75)
269
0.46
Adjusted Net Income (Non-GAAP)
1,225
(279)
946
1.62
Average Number of Common Shares (GAAP)
Basic
580
Diluted
583
4Q 2020
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings
per Share
Reported Net Income (GAAP)
428
(91)
337
0.58
Adjustments:
Gains on Mark-to-Market Commodity Derivative Contracts
(70)
15
(55)
(0.10)
Net Cash Received from Settlements of Commodity Derivative Contracts
72
(16)
56
0.10
Add: Losses on Asset Dispositions, Net
6
(1)
5
0.01
Add: Certain Impairments
86
(18)
68
0.12
Adjustments to Net Income
94
(20)
74
0.13
Adjusted Net Income (Non-GAAP)
522
(111)
411
0.71
Average Number of Common Shares (GAAP)
Basic
580
Diluted
581
Adjusted Net Income (Loss)
In millions of USD, except per share data (Unaudited)
1Q 2020
Before
Tax
Income Tax
Impact
After
Tax
Diluted
Earnings
per Share
Reported Net Income (GAAP)
31
(21)
10
0.02
Adjustments:
Gains on Mark-to-Market Commodity Derivative Contracts
(1,206)
265
(941)
(1.62)
Net Cash Received from Settlements of Commodity Derivative Contracts
84
(18)
66
0.11
Less: Gains on Asset Dispositions, Net
(16)
3
(13)
(0.02)
Add: Certain Impairments
1,516
(320)
1,196
2.06
Adjustments to Net Income
378
(70)
308
0.53
Adjusted Net Income (Non-GAAP)
409
(91)
318
0.55
Average Number of Common Shares (GAAP)
Basic
578
Diluted
580
Adjusted Net Income per Share
In millions of USD, except share and per Boe data (Unaudited)
4Q 2020 Adjusted Net Income per Share (Non-GAAP)
0.71
Realized Price
1Q 2021 Composite Average Wellhead Revenue per Boe
45.49
Less: 4Q 2020 Composite Average Wellhead Revenue per Boe
Times: 1Q 2021 Composite Average Margin per Boe (Non-GAAP) (Including Total Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)
17.38
Change in Revenue
(63)
Less: Income Tax Benefit (Cost) Imputed (based on 23%)
14
Change in Net Income
(48)
Change in Diluted Earnings per Share
(0.08)
Operating Cost per Boe
4Q 2020 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)
24.72
Less: 1Q 2021 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(945)
(828)
(1,685)
Free Cash Flow (Non-GAAP)
1,065
666
(19)
(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the three-month periods ended December 31, 2020 and March 31, 2021 and 2020:
Total Expenditures (GAAP)
1,067
1,107
1,826
Less:
Asset Retirement Costs
(17)
(48)
(20)
Non-Cash Expenditures of Other Property, Plant and Equipment
-
-
-
Non-Cash Acquisition Costs of Unproved Properties
(22)
(69)
(24)
Non-Cash Finance Leases
(74)
(101)
(49)
Acquisition Costs of Proved Properties
(9)
(61)
(48)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(3,490)
(6,234)
(6,172)
(4,228)
Free Cash Flow (Non-GAAP)
1,603
1,888
2,100
612
(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the twelve-month periods ended December 31, 2020, 2019, 2018 and 2017:
Total Expenditures (GAAP)
4,113
6,900
6,706
4,613
Less:
Asset Retirement Costs
(117)
(186)
(70)
(56)
Non-Cash Expenditures of Other Property, Plant and Equipment
-
(2)
(1)
-
Non-Cash Acquisition Costs of Unproved Properties
(197)
(98)
(291)
(256)
Non-Cash Finance Leases
(174)
-
(48)
-
Acquisition Costs of Proved Properties
(135)
(380)
(124)
(73)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP)
Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) (a)
(2,706)
(4,682)
(8,292)
(7,102)
(7,540)
Free Cash Flow (Non-GAAP)
43
(791)
173
315
(1,794)
(a) See below reconciliation of Total Expenditures (GAAP) to Total Cash Capital Expenditures Before Acquisitions (Non-GAAP) for the twelve-month periods ended December 31, 2016, 2015, 2014, 2013 and 2012:
Total Expenditures (GAAP)
6,554
5,216
8,632
7,361
7,754
Less:
Asset Retirement Costs
20
(53)
(196)
(134)
(127)
Non-Cash Expenditures of Other Property, Plant and Equipment
(17)
-
-
-
(66)
Non-Cash Acquisition Costs of Unproved Properties
(3,102)
-
(5)
(5)
(20)
Acquisition Costs of Proved Properties
(749)
(481)
(139)
(120)
(1)
Total Cash Capital Expenditures Before Acquisitions (Non- GAAP)
2,706
4,682
8,292
7,102
7,540
Total Expenditures
In millions of USD (Unaudited)
1Q 2021
1Q 2020
FY 2020
FY 2019
FY 2018
FY 2017
Exploration and Development Drilling
733
1,313
2,664
4,951
4,935
3,132
Facilities
82
179
347
629
625
575
Leasehold Acquisitions
58
45
265
276
488
427
Property Acquisitions
9
48
135
380
124
73
Capitalized Interest
8
9
31
38
24
27
Subtotal
890
1,594
3,442
6,274
6,196
4,234
Exploration Costs
33
40
146
140
149
145
Dry Hole Costs
11
-
13
28
5
5
Exploration and Development Expenditures
934
1,634
3,601
6,442
6,350
4,384
Asset Retirement Costs
17
20
117
186
70
56
Total Exploration and Development Expenditures
951
1,654
3,718
6,628
6,420
4,440
Other Property, Plant and Equipment
116
172
395
272
286
173
Total Expenditures
1,067
1,826
4,113
6,900
6,706
4,613
EBITDAX and Adjusted EBITDAX
In millions of USD (Unaudited)
1Q 2021
1Q 2020
Net Income (GAAP)
677
10
Adjustments:
Interest Expense, Net
47
45
Income Tax Provision (Benefit)
204
21
Depreciation, Depletion and Amortization
900
1,000
Exploration Costs
33
40
Dry Hole Costs
11
-
Impairments
44
1,573
EBITDAX (Non-GAAP)
1,916
2,689
(Gains) Losses on MTM Commodity Derivative Contracts
367
(1,206)
Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts
(30)
84
(Gains) Losses on Asset Dispositions, Net
6
(16)
Adjusted EBITDAX (Non-GAAP)
2,259
1,551
Adjusted EBITDAX (Non-GAAP) - Percentage Increase
46%
Definitions
EBITDAX - Earnings Before Interest Expense, Net; Income Tax Provision (Benefit); Depreciation, Depletion and Amortization; Exploration Costs; Dry Hole Costs; and Impairments
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
27.8%
33.5%
34.0%
33.7%
31.5%
Reserve Replacement Cost Data
In millions of USD, except reserves and ratio data (Unaudited)
2020
2019
2018
2017
2016
2015
2014
Total Costs Incurred in Exploration and Development Activities (GAAP)
3,718
6,628
6,420
4,440
6,445
4,928
7,905
Less: Asset Retirement Costs
(117)
(186)
(70)
(56)
20
(53)
(196)
Non-Cash Acquisition Costs of Unproved Properties
(197)
(98)
(291)
(256)
(3,102)
-
-
Acquisition Costs of Proved Properties
(135)
(380)
(124)
(73)
(749)
(481)
(139)
Total Exploration and Development Expenditures for Drilling Only (Non- GAAP) - (a)
3,269
5,964
5,935
4,055
2,614
4,394
7,570
Total Costs Incurred in Exploration and Development Activities (GAAP)
3,718
6,628
6,420
4,440
6,445
4,928
7,905
Less: Asset Retirement Costs
(117)
(186)
(70)
(56)
20
(53)
(196)
Non-Cash Acquisition Costs of Unproved Properties
(197)
(98)
(291)
(256)
(3,102)
-
-
Non-Cash Acquisition Costs of Proved Properties
(15)
(52)
(71)
(26)
(732)
-
-
Total Exploration and Development Expenditures (Non-GAAP) - (b)
3,389
6,292
5,988
4,102
2,631
4,875
7,709
Net Proved Reserve Additions From All Sources - Oil Equivalents (MMBoe)
Revisions Due to Price - (c)
(278)
(60)
35
154
(101)
(574)
52
Revisions Other Than Price
(89)
-
(40)
48
253
107
49
Purchases in Place
10
17
12
2
42
56
14
Extensions, Discoveries and Other Additions - (d)
564
750
670
421
209
246
519
Total Proved Reserve Additions - (e)
207
707
677
625
403
(165)
634
Sales in Place
(31)
(5)
(11)
(21)
(168)
(4)
(36)
Net Proved Reserve Additions From All Sources
176
702
666
604
235
(169)
598
Production
285
301
265
224
206
210
220
Reserve Replacement Costs ($ / Boe)
Total Drilling, Before Revisions - (a / d)
5.79
7.95
8.86
9.64
12.51
17.87
14.58
All-in Total, Net of Revisions - (b / e)
16.32
8.90
8.85
6.56
6.52
(29.63)
12.16
All-in Total, Excluding Revisions Due to Price - (b / ( e - c))
6.98
8.21
9.33
8.71
5.22
11.91
13.25
Definitions
$/Boe
U.S. Dollars per barrel of oil equivalent
MMBoe
Million barrels of oil equivalent
Financial Commodity Derivative Contracts
EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method.
Presented below is a comprehensive summary of EOG's financial commodity derivative contracts as of April 29, 2021.
Crude Oil Financial Price Swap Contracts
Contracts Sold
Period
Settlement Index
Volume
(MBbld)
Weighted Average Price
($/Bbl)
January 2021 (closed)
NYMEX WTI
151
$
50.06
February - March 2021 (closed)
NYMEX WTI
201
51.29
April - June 2021
NYMEX WTI
150
51.68
July - September 2021
NYMEX WTI
150
52.71
Crude Oil Basis Swap Contracts
Contracts Sold
Period
Settlement Index
Volume
(MBbld)
Weighted Average Price
Differential
($/Bbl)
February 2021 (closed)
NYMEX WTI Roll Differential (1)
30
$
0.11
March - May 2021 (closed)
NYMEX WTI Roll Differential (1)
125
0.17
June - December 2021
NYMEX WTI Roll Differential (1)
125
0.17
January - December 2022
NYMEX WTI Roll Differential (1)
125
0.15
(1) This settlement index is used to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month.
NGL Financial Price Swap Contracts
Contracts Sold
Period
Settlement Index
Volume
(MBbld)
Weighted Average Price
($/Bbl)
January - March 2021 (closed)
Mont Belvieu Propane (non-Tet)
15
$
29.44
April - December 2021
Mont Belvieu Propane (non-Tet)
15
29.44
Natural Gas Financial Price Swap Contracts
Contracts Sold
Contracts Purchased
Period
Settlement Index
Volume
(MMBtud in
thousands)
Weighted
Average Price
($/MMBtu)
Volume
(MMBtud in
thousands)
Weighted
Average Price
($/MMBtu)
January - March 2021 (closed)
NYMEX Henry Hub
500
$
2.99
500
$
2.43
April - May 2021 (closed)
NYMEX Henry Hub
500
2.99
570
2.81
June - September 2021
NYMEX Henry Hub
500
2.99
570
2.81
October - December 2021
NYMEX Henry Hub
500
2.99
500
2.83
January - December 2022 (closed) (1)
NYMEX Henry Hub
20
2.75
-
-
April - May 2021 (closed)
JKM
70
6.65
-
-
June - September 2021
JKM
70
6.65
-
-
(1)
In January 2021, EOG executed the early termination provision granting EOG the right to terminate all of its open 2022 natural gas price swap contracts. EOG received net cash of $0.6 million for the settlement of these contracts.
The calculation of our direct after-tax rate of return (ATROR) with respect to our capital expenditure program for a particular play or well is based on the estimated recoverable reserves ("net" to EOG's interest) for all wells in such play or such well (as the case may be), the estimated net present value (NPV) of the future net cash flows from such reserves (for which we utilize certain assumptions regarding future commodity prices and operating costs) and our direct net costs incurred in drilling or acquiring (as the case may be) such wells or well (as the case may be). As such, our direct ATROR with respect to our capital expenditures for a particular play or well cannot be calculated from our consolidated financial statements.
Direct ATROR
Based on Cash Flow and Time Value of Money
- Estimated future commodity prices and operating costs
- Costs incurred to drill, complete and equip a well, including facilities
Excludes Indirect Capital
- Gathering and Processing and other Midstream
- Land, Seismic, Geological and Geophysical
Payback ~12 Months on 100% Direct ATROR Wells
First Five Years ~1/2 Estimated Ultimate Recovery Produced but ~3/4 of NPV Captured
Return on Equity / Return on Capital Employed
Based on GAAP Accrual Accounting
Includes All Indirect Capital and Growth Capital for Infrastructure
- Eagle Ford, Bakken, Permian and Powder River Basin Facilities
- Gathering and Processing
Includes Legacy Gas Capital and Capital from Mature Wells
ROCE & ROE
In millions of USD, except ratio data (Unaudited)
2020
2019
2018
2017
Net Interest Expense (GAAP)
205
185
245
Tax Benefit Imputed (based on 21%)
(43)
(39)
(51)
After-Tax Net Interest Expense (Non-GAAP) - (a)
162
146
194
Net Income (Loss) (GAAP) - (b)
(605)
2,735
3,419
Adjustments to Net Income (Loss), Net of Tax (See Below Detail) (1)
1,455
158
(201)
Adjusted Net Income (Non-GAAP) - (c)
850
2,893
3,218
Total Stockholders' Equity - (d)
20,302
21,641
19,364
16,283
Average Total Stockholders' Equity * - (e)
20,972
20,503
17,824
Current and Long-Term Debt (GAAP) - (f)
5,816
5,175
6,083
6,387
Less: Cash
(3,329)
(2,028)
(1,556)
(834)
Net Debt (Non-GAAP) - (g)
2,487
3,147
4,527
5,553
Total Capitalization (GAAP) - (d) + (f)
26,118
26,816
25,447
22,670
Total Capitalization (Non-GAAP) - (d) + (g)
22,789
24,788
23,891
21,836
Average Total Capitalization (Non-GAAP) * - (h)
23,789
24,340
22,864
Return on Capital Employed (ROCE)
GAAP Net Income (Loss) - [(a) + (b)] / (h)
(1.9)%
11.8%
15.8%
Non-GAAP Adjusted Net Income - [(a) + (c)] / (h)
4.3%
12.5%
14.9%
Return on Equity (ROE)
GAAP Net Income (Loss) - (b) / (e)
(2.9)%
13.3%
19.2%
Non-GAAP Adjusted Net Income - (c) / (e)
4.1%
14.1%
18.1%
* Average for the current and immediately preceding year
(1) Detail of adjustments to Net Income (Loss) (GAAP):
Total Operating Cost (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (c)
3,424
4,078
3,911
3,169
Depreciation, Depletion and Amortization (DD&A)
3,400
3,750
3,435
3,409
Total Operating Cost (Non-GAAP) (excluding Total Exploration Costs) - (d)
6,824
7,828
7,346
6,578
Exploration Costs
146
140
149
145
Dry Hole Costs
13
28
5
5
Impairments
2,100
518
347
479
Total Exploration Costs
2,259
686
501
629
Less: Certain Impairments (Non-GAAP)
(1,868)
(275)
(153)
(261)
Total Exploration Costs (Non-GAAP)
391
411
348
368
Total Operating Cost (Non-GAAP) (including Total Exploration Costs) - (e)
7,215
8,239
7,694
6,946
Cost per Barrel of Oil Equivalent
In millions of USD, except Boe and per Boe amounts (Unaudited)
2020
2019
2018
2017
Composite Average Wellhead Revenue per Boe - (b) / (a)
26.42
38.79
45.51
35.58
Total Operating Cost per Boe (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (c) / (a)
12.39
13.66
14.90
14.25
Composite Average Margin per Boe (Non-GAAP) (excluding DD&A and Total Exploration Costs) - [(b) / (a) - (c) / (a)]
14.03
25.13
30.61
21.33
Total Operating Cost per Boe (Non-GAAP) (excluding Total Exploration Costs) - (d) / (a)
24.71
26.22
27.99
29.59
Composite Average Margin per Boe (Non-GAAP) (excluding Total Exploration Costs) - [(b) / (a) - (d) / (a)]
1.71
12.57
17.52
5.99
Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) - (e) / (a)
26.13
27.60
29.32
31.24
Composite Average Margin per Boe (Non-GAAP) (including Total Exploration Costs) - [(b) / (a) - (e) / (a)]
0.29
11.19
16.19
4.34
Cost per Barrel of Oil Equivalent
In millions of USD, except Boe and per Boe amounts (Unaudited)
2016
2015
2014
Cost per Barrel of Oil Equivalent (Boe) Calculation
Volume - Million Barrels of Oil Equivalent - (a)
205.0
208.9
217.1
Crude Oil and Condensate
4,317
4,935
9,742
Natural Gas Liquids
437
408
934
Natural Gas
742
1,061
1,916
Total Wellhead Revenues - (b)
5,496
6,404
12,592
Operating Costs
Lease and Well
927
1,182
1,416
Transportation Costs
764
849
972
Gathering and Processing Costs
123
146
146
General and Administrative
395
367
402
Less: Voluntary Retirement Expense
(42)
-
-
Less: Acquisition Costs
(5)
-
-
Less: Legal Settlement - Early Leasehold Termination
-
(19)
-
General and Administrative (Non-GAAP)
348
348
402
Taxes Other Than Income
350
422
758
Interest Expense, Net
282
237
201
Total Operating Cost (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (c)
2,794
3,184
3,895
Depreciation, Depletion and Amortization (DD&A)
3,553
3,314
3,997
Total Operating Cost (Non-GAAP) (excluding Total Exploration Costs) - (d)
6,347
6,498
7,892
Exploration Costs
125
149
184
Dry Hole Costs
11
15
48
Impairments
620
6,614
744
Total Exploration Costs
756
6,778
976
Less: Certain Impairments (Non-GAAP)
(321)
(6,308)
(824)
Total Exploration Costs (Non-GAAP)
435
470
152
Total Operating Cost (Non-GAAP) (including Total Exploration Costs) - (e)
6,782
6,968
8,044
Cost per Barrel of Oil Equivalent
In millions of USD, except Boe and per Boe amounts (Unaudited)
2016
2015
2014
Composite Average Wellhead Revenue per Boe - (b) / (a)
26.82
30.66
58.01
Total Operating Cost per Boe (Non-GAAP) (excluding DD&A and Total Exploration Costs) - (c) / (a)
13.64
15.25
17.95
Composite Average Margin per Boe (Non-GAAP) (excluding DD&A and Total Exploration Costs) - [(b) / (a) - (c) / (a)]
13.18
15.41
40.06
Total Operating Cost per Boe (Non-GAAP) (excluding Total Exploration Costs) - (d) / (a)
30.98
31.11
36.38
Composite Average Margin per Boe (Non-GAAP) (excluding Total Exploration Costs) - [(b) / (a) - (d) / (a)]
(4.16)
(0.45)
21.63
Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) - (e) / (a)
33.10
33.36
37.08
Composite Average Margin per Boe (Non-GAAP) (including Total Exploration Costs) - [(b) / (a) - (e) / (a)]
(6.28)
(2.70)
20.93
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