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EOG · EOG RESOURCES INC

28 filings

10-K

EOG 10-K Annual Reports

EOG RESOURCES INC - 28 annual reports

Filing record · 2016–202610-K1110-Q328-K137

2025
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2025
EOG Resources, Inc. (EOG) reported its 2025 performance, highlighting continued operational focus and a strong balance sheet. Despite a decrease in total operating revenues to $22.6 billion from $23.7 billion in 2024, primarily due to lower crude oil and condensate prices, the company demonstrated resilience. EOG's net income for 2025 was $5.0 billion, down from $6.4 billion in 2024. The company successfully navigated a challenging commodity price environment, with average U.S. crude oil prices declining 15% year-over-year, while natural gas prices saw a significant increase of 39%. EOG's strategic emphasis on operational efficiency and cost management remains a core tenet, evident in initiatives to improve drilling and completion techniques. The acquisition of Encino Acquisition Partners, LLC in August 2025 for $5.7 billion significantly bolstered EOG's acreage in the Utica play, contributing to a year-end proved reserves increase to 5,514 MMBoe. The company also maintained a robust capital return program, repurchasing shares and paying dividends, underscoring its commitment to shareholder value.
Feb 24, 2026
2024
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2024
EOG Resources Inc. (EOG) reported its fiscal year 2024 results, demonstrating a strong operational performance despite a slight year-over-year decrease in total revenues. The company's strategic focus on high-return, low-cost production continues to drive its business, with a significant portion of its operations and reserves located in the United States. EOG's reserve base remains robust, with total estimated net proved reserves standing at 4,748 million barrels of oil equivalent at year-end 2024. The company's financial health appears solid, with a healthy cash position and a strong balance sheet, evidenced by a low debt-to-total capitalization ratio. EOG continues to prioritize shareholder returns through dividends and share repurchases, as outlined in its cash return framework. While commodity prices remain volatile, EOG is actively managing its exposure through hedging activities and operational efficiencies. Looking ahead, EOG anticipates continued focus on its key U.S. plays and maintaining capital discipline, balancing growth with shareholder returns.
Feb 27, 2025
2023
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2023
EOG Resources Inc. (EOG) filed its 2023 annual report on February 22, 2024. The company demonstrated resilience in a fluctuating commodity price environment, with strong operational execution across its U.S. and international portfolio. EOG maintained a disciplined capital expenditure approach, focusing on high-return projects and operational efficiency to mitigate inflationary pressures. The company continued its commitment to returning capital to shareholders through dividends and share repurchases, reinforcing its financial strength and strategic focus on maximizing shareholder value while maintaining a strong balance sheet.
Feb 22, 2024
2022
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2022
EOG Resources Inc. reported strong financial performance for the year ended December 31, 2022, driven by higher commodity prices and increased production volumes. The company's strategy of maximizing return on investment through cost control and efficient operations continues to yield positive results, supporting its commitment to shareholder returns. Key operational focus areas include the Delaware Basin and Eagle Ford play, where EOG is leveraging advanced technology to enhance reserve recovery and optimize drilling efficiency. Despite facing inflationary pressures on operating costs, EOG has effectively managed these challenges through various initiatives and expects continued operational flexibility. The company demonstrated robust cash flow generation, enabling significant dividend payments and share repurchases, underscoring its focus on returning capital to shareholders. EOG's balance sheet remains strong, with a low debt-to-total capitalization ratio, providing financial flexibility for future growth and operational needs. The outlook for 2023 indicates continued focus on strategic U.S. drilling activities and cost management, with expectations for increased production.
Feb 23, 2023
2021
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2021
EOG Resources, Inc. (EOG) reported a strong financial performance for the fiscal year ending December 31, 2021, a significant turnaround from the net loss in 2020. Driven by a substantial increase in commodity prices, EOG saw its total operating revenues climb to $18.6 billion. The company's strategy of focusing on high-return drilling locations and cost management proved effective in capitalizing on the favorable market conditions. EOG's proved reserves also saw a healthy increase, reaching 3,747 million barrels of oil equivalent. The company demonstrated robust operational efficiency, with a focus on its key U.S. plays like the Delaware Basin and Eagle Ford. Looking ahead, EOG plans to continue its disciplined capital allocation, primarily focused on U.S. drilling activities, with an anticipated capital expenditure budget of $4.3 billion to $4.7 billion for 2022. The company also returned significant value to shareholders through increased dividends and share repurchases.
Feb 24, 2022
2020
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2020
EOG Resources Inc. reported a net loss of $605 million for the year ended December 31, 2020, a significant shift from the $2.7 billion net income in 2019. This downturn was primarily driven by the severe impact of the COVID-19 pandemic on commodity prices, leading to a 33% decrease in average crude oil and condensate prices and a 23% decrease in average natural gas prices compared to the previous year. Despite these challenges, EOG focused on operational efficiencies and cost controls. The company's proved reserves stood at 3,220 million barrels of oil equivalent as of December 31, 2020, with approximately 98% located in the United States. EOG's strategic focus remains on maximizing return on investment through cost control and reserve recovery, emphasizing internally generated prospects. The company reduced capital expenditures in response to market conditions and maintained a strong balance sheet with a debt-to-total capitalization ratio of 22%. Looking ahead, EOG anticipates continued capital discipline with planned expenditures for 2021 focused on high-return US crude oil drilling activities, particularly in the Delaware Basin and Eagle Ford plays.
Feb 25, 2021
2019
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2019
EOG Resources Inc. (EOG) reported its 2019 annual results, showcasing a strong operational year characterized by increased production volumes across its key U.S. basins, particularly the Eagle Ford and Delaware Basin. Despite a decline in commodity prices for crude oil and natural gas liquids compared to 2018, the company managed its costs effectively, leading to solid financial performance. EOG maintained a disciplined approach to capital allocation, focusing on high-return drilling locations and leveraging advanced technology to enhance efficiency and maximize reserve recovery. The company's strategic focus on low-cost reserve development and operational excellence positions it well for future growth. EOG's balance sheet remains robust, with a manageable debt-to-total capitalization ratio. The company continued to return value to shareholders through dividends and share repurchases, signaling confidence in its long-term prospects. Investors can look to EOG's consistent execution and its commitment to shareholder returns as key positive indicators.
Feb 27, 2020
2018
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2018
EOG Resources, Inc. reported strong financial performance for the year ending December 31, 2018, marked by a significant increase in operating revenues and net income compared to the previous year. This growth was driven by higher crude oil, natural gas liquids (NGLs), and natural gas prices, as well as increased production volumes, particularly in the Permian Basin and Eagle Ford shale plays. The company maintained a disciplined capital expenditure program, focusing on high-return projects and operational efficiencies. EOG's balance sheet remained strong, with a consistently below-average debt-to-total capitalization ratio. Looking ahead, EOG planned to continue its focus on enhancing drilling and completion efficiencies to lower costs and improve well performance in its key U.S. operating areas. The company's strategic emphasis on maximizing return on investment and maintaining a strong balance sheet positions it well to navigate the volatile commodity price environment. Investors should note EOG's commitment to operational excellence and its strategic positioning in key U.S. unconventional resource plays.
Feb 26, 2019
2017
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2017
EOG Resources, Inc. (EOG) reported strong performance in 2017, marking a significant turnaround from the prior year's net loss. The company achieved net income of $2.58 billion, driven by higher commodity prices and increased production volumes, particularly in crude oil and natural gas liquids. EOG continued to focus on operational efficiencies and cost management across its key U.S. basins, including the Eagle Ford and Permian Basin, while also progressing its international operations. The company's strategic emphasis on maximizing return on investment, coupled with successful application of advanced technologies, positions it well for continued growth. EOG also managed its balance sheet effectively, reducing debt and maintaining a below-average debt-to-total capitalization ratio.
Feb 27, 2018
2016
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2016
EOG Resources, Inc. (EOG) reported a net loss of $1.1 billion for the year ended December 31, 2016, a significant improvement from the $4.5 billion net loss in the prior year. This turnaround was largely driven by a recovery in commodity prices, though they remained depressed compared to previous years. The company's strategy continued to focus on maximizing return on investment through cost control and operational efficiencies, particularly in its key U.S. basins like the Eagle Ford and Permian Basin. EOG also completed a significant acquisition in October 2016, merging with Yates Petroleum Corporation, which added substantial acreage and production, bolstering its long-term growth prospects. Despite the challenging commodity price environment, EOG demonstrated resilience by maintaining its production levels and focusing on high-return plays. The company's balance sheet remained strong, with a debt-to-total capitalization ratio of 33%. Investors should note the company's strategic focus on oil and liquids-rich natural gas production, as reflected in its reserve mix, and its continued efforts to optimize drilling and completion costs.
Feb 27, 2017
2015
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2015
In 2015, EOG Resources, Inc. faced significant challenges due to a substantial decline in crude oil and natural gas prices, which resulted in a net loss of $4.5 billion and an impairment charge of $6.3 billion. Despite these headwinds, the company maintained a strategic focus on maximizing return on investment by controlling costs and optimizing reserve recovery, particularly in its core U.S. plays like the Eagle Ford and Permian Basin. EOG also demonstrated a commitment to capital discipline, with planned capital expenditures for 2016 reduced to a range of $2.4 billion to $2.6 billion, funded primarily through internal cash flows and debt. The company's balance sheet remained relatively strong, with a debt-to-total capitalization ratio of 34% at year-end 2015. Despite the difficult operating environment, EOG continued to make operational advancements, focusing on drilling and completion efficiencies and cost reductions. The company's reserve base, though impacted by lower commodity prices leading to reserve revisions, remained substantial, with approximately 97% located in the United States. EOG's integrated approach to operations, including its crude-by-rail logistics and sand mine capabilities, provided some competitive advantages. The company's outlook for 2016 anticipated slight declines in total and crude oil production but reinforced its strategy of capital discipline and cost management.
Feb 25, 2016
2014
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2014
EOG Resources Inc.'s 2014 10-K filing highlights a strong year characterized by significant production growth and robust financial performance, particularly driven by its US oil and liquids-rich natural gas plays. The company demonstrated strategic execution by focusing on high-return assets, increasing efficiency in drilling and completion operations, and expanding its liquids-heavy production mix. EOG reported substantial growth in net proved reserves, largely concentrated in the United States. Despite a volatile commodity price environment, EOG maintained a solid financial position, with management emphasizing its commitment to maximizing shareholder returns through cost control and efficient capital deployment.
Feb 18, 2015
2013
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2013
EOG Resources Inc. (EOG) demonstrated robust performance in 2013, driven by significant growth in crude oil and natural gas liquids (NGLs) production, particularly from the Eagle Ford shale play. The company's strategic focus on cost control and technological advancement contributed to impressive after-tax rates of return, exceeding 100% in the Eagle Ford. EOG expanded its production across key U.S. basins, including the Permian Basin and Rocky Mountain region, while also maintaining international operations in Trinidad, the UK, China, and Argentina. The company's financial health remained strong, with a prudent approach to debt management and a continued commitment to returning value to shareholders through dividends and share repurchases.
Feb 24, 2014
2012
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2012
EOG Resources' 2012 10-K shows a company pivoting decisively toward crude oil. Net income fell to $570 million from $1,091 million in 2011, as a 36% drop in North American wellhead natural gas prices and $1.27 billion of impairments (mostly Canadian natural gas assets) offset strong oil growth. Net operating revenues rose 15% to $11.68 billion, and crude oil and condensate deliveries grew 39% to 157.9 MBbld. Crude and liquids now make up about 46% of total production, versus 37% in 2011, and management expects that share to keep rising in 2013. Reserves and balance sheet: Year-end proved reserves were 1,811 MMBoe, down 243 MMBoe from 2011. Liquids reserves rose 276 MMBbl while natural gas fell by 3.1 Tcf, mainly from price-driven revisions. Total assets reached $27.3 billion and debt rose to $6.3 billion, with the debt-to-capitalization ratio moving to 32% from 28%. The company issued $1.25 billion of 2.625% notes due 2023 in September 2012. For 2013, planned capital spending of $7.0-7.2 billion exceeds expected operating cash flow, so EOG plans roughly $550 million of non-core asset sales to close the gap. It also raised its quarterly dividend to $0.1875 per share. The key watch items are execution on the Eagle Ford, Bakken, and Permian oil plays, continued natural gas price weakness, and the Canadian write-downs. Investors will also need to track the 2013 funding gap, which depends on asset sales and financing, and the net effective tax rate of 55%, which was elevated by Canadian valuation allowances.
Feb 22, 2013
2011
EOG RESOURCES INC Annual Report, Year Ended Dec 30, 2011
EOG Resources' 2011 10-K shows a company pivoting decisively toward liquids-rich drilling. Net income rose to $1,091 million from $161 million in 2010, on net operating revenues of $10,126 million (up 66%). Results were helped by $626 million of mark-to-market derivative gains and $493 million of asset-disposition gains, while impairments of $1,031 million, driven mainly by North American natural gas assets, weighed on earnings. Year-end total proved reserves reached 2,054 MMBoe, up 104 MMBoe, with crude oil and NGL reserves up 207 MMBbl while natural gas reserves fell. Crude oil and condensate plus NGL volumes made up about 37% of 2011 production, versus 27% in 2010, and management expects that share to keep rising. The main growth driver is the Eagle Ford Shale, where net crude oil and condensate production reached 30.2 MBbld in 2011 and EOG holds a 572,000 net-acre oil window position. Liquids growth also came from the Barnett Combo, Permian, Rocky Mountain and Mid-Continent plays. Management plans 2012 capital expenditures of $7.4 to $7.6 billion, expects total production to rise about 5.5%, and expects liquids output to grow about 30%. Capital spending is expected to exceed operating cash flow in 2012, so the company plans to sell non-core assets and use its $2.0 billion revolver and commercial paper program to close the gap. Balance-sheet strength improved over the year. The debt-to-total-capitalization ratio fell to 28% from 34%, aided by a $1,388 million common stock offering in March 2011, and total debt was $5,040 million. Risks flagged in the filing include commodity price volatility (about $31 million of net income per $1/Bbl oil move in 2012), a 43% effective tax rate, exposure to foreign operations, and possible regulation of hydraulic fracturing and greenhouse gases.
Feb 24, 2012
2010
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2010
EOG Resources' 2010 Form 10-K shows a company pivoting toward liquids-rich growth. Net income available to common stockholders fell to $161 million ($0.63 diluted EPS) in 2010 from $547 million in 2009, even as net operating revenues rose 27% to $6.10 billion. The decline reflects a $743 million impairment charge (largely $280 million on Canadian shallow natural gas assets sold for about $344 million), a 61% effective tax rate, and higher DD&A ($1.94 billion, up from $1.55 billion). Wellhead revenues grew 44% to $4.88 billion, driven by a 36% higher composite crude oil price ($74.29/Bbl) and a 15% higher natural gas price ($3.93/Mcf), along with 3% higher natural gas volumes and 35% higher crude oil volumes. Proved reserves rose 154 MMBoe to 1,950 MMBoe at year-end 2010, and about 62% of 2010 reserve additions were crude oil and NGLs. The company's growth is concentrated in the Eagle Ford, Bakken/Three Forks, and Barnett Combo plays. Management plans $6.4 to $6.6 billion of 2011 capital expenditures, excluding acquisitions, and expects capital spending to exceed operating cash flow, which it plans to bridge partly through sales of non-core natural gas assets. Total debt rose to $5.26 billion, and the debt-to-capitalization ratio increased to 34% from 22%, reflecting heavy 2010 bond issuance. Investors should weigh strong reserve and production growth against weaker near-term earnings, rising leverage, and continued exposure to natural gas price volatility.
Feb 24, 2011
2009
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2009
EOG Resources' 2009 Form 10-K shows a year defined by a sharp commodity price decline that cut revenue and earnings while the company kept building its resource-play inventory. Net operating revenues fell 33% to $4.79 billion from $7.13 billion, and net income available to common stockholders dropped 78% to $547 million ($2.17 diluted EPS) from $2.44 billion. Wellhead natural gas prices fell 54% to $3.42/Mcf, while wellhead crude oil and condensate prices fell 38% to $54.46/Bbl. Results were cushioned by $1.28 billion in realized hedge gains, $390 million from a Rocky Mountain property exchange, and $146 million from the sale of California assets. Impairments rose to $306 million, and operating income fell to $971 million from $3.77 billion. EOG is shifting its mix toward liquids. Crude oil and NGL volumes grew sharply, led by the Bakken, Barnett Shale Combo and Rocky Mountain plays. Management expects 2010 production to rise about 13%, with U.S. liquids growing faster than gas, and it plans to increase capital spending versus 2009 (the 2010 budget was not yet finalized). Proved reserves rose to 10.8 Tcfe at year-end 2009, but the company acknowledged that falling year-end gas prices caused roughly 786 Bcfe of negative price revisions. Proved undeveloped reserves more than tripled to 4.9 Tcfe under new SEC rules, which investors should weigh against execution risk. Balance sheet capacity remains solid. Debt rose to $2.8 billion, the debt-to-capitalization ratio was 22% (up from 17%), and $686 million of cash was on hand at year-end. EOG issued $900 million of 5.625% notes due 2019 and has a $1.0 billion revolving credit facility that was undrawn. Operating cash flow fell to $2.92 billion from $4.63 billion, and dividends were raised to $0.155 per quarter for 2010.
Feb 25, 2010
2008
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2008
EOG Resources' 2008 10-K shows a year of strong top-line and earnings growth driven by natural gas and an accelerating shift toward crude oil and natural gas liquids. Net operating revenues rose 68% to $7.13 billion and net income available to common stockholders more than doubled to $2.44 billion ($9.72 diluted EPS), helped by a $598 million mark-to-market gain on commodity hedges. Operating income reached $3.77 billion, and cash from operations rose to $4.63 billion. Wellhead natural gas prices averaged $7.51/Mcf (up 33%), and crude oil averaged $88.18/Bbl (up 28%), while total production grew about 15% to 1,988 MMcfed. EOG's growth is concentrated in the United States, which generated roughly 71% of proved reserves and 87% of company production in the United States and Canada combined. Key plays include the Fort Worth Basin Barnett Shale, the North Dakota Bakken, the Uinta Basin, the Haynesville, and the Marcellus, along with new positions in the Horn River Basin of British Columbia and the Sichuan Basin in China. Total proved reserves reached 8.7 Tcfe, up 944 Bcfe, while the company sold its Appalachian shallow gas assets for about $386 million. Management guided to a 2009 capital budget of about $3.1 billion, roughly 3% production growth, and a 17% debt-to-capitalization ratio. Investors should weigh the strong 2008 results against commodity exposure and balance-sheet risk. Natural gas remains about 82% of U.S. and Canadian reserves, and management noted the 2009 NYMEX gas strip had already fallen about 15% after year-end. Net debt rose to $1.9 billion to fund the capital program, and the company issued $750 million of senior notes in late 2008. The dividend was raised again in February 2009 to $0.145 per quarter, and no shares were repurchased under the authorized buyback program during 2008.
Feb 25, 2009
2007
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2007
EOG Resources' 2007 10-K shows a company that grew volumes sharply while net income fell. Net income available to common stockholders was $1,083 million, down 16% from $1,289 million in 2006, even though net operating revenues rose 7% to $4,191 million. Natural gas deliveries rose 10% to 1,470 MMcfd, driven mainly by Texas (Barnett Shale), the Rocky Mountains and Kansas. Higher depreciation, depletion and amortization ($1,066 million, up 30%), lease and well costs, and transportation costs compressed margins. Year-end total proved reserves were 7,745 Bcfe, up roughly 944 Bcfe from 2006, with about 67% in the United States, 17% in Canada and 16% in Trinidad. Balance sheet and capital allocation remained conservative. Debt rose to $1,185 million, and the debt-to-total-capitalization ratio moved from 12% to 14%. EOG issued $600 million of 5.875% senior notes due 2017 and repurchased preferred stock. The 2008 budget is about $4.4 billion in total capital expenditures excluding acquisitions, with management guiding to roughly 15% production growth. The company also agreed to sell most of its Appalachian shallow gas assets to EXCO Resources for about $395 million, closed February 20, 2008, and raised its quarterly dividend to $0.12 per share. Investors should weigh the growth outlook against commodity and execution risk. EOG is heavily weighted to natural gas, and each $0.10/Mcf change in wellhead gas prices moves 2008 net income by roughly $20 million. Its Trinidad and North Sea assets carry foreign currency and fiscal exposure, and the company faces intense competition for acreage and rigs.
Feb 28, 2008
2006
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2006
EOG Resources' 2006 Form 10-K shows a company that grew substantially while leaning heavily on natural gas. Net income available to common rose 3% to $1,289 million on revenue of $3,904 million, up 8% from $3,620 million. Growth was driven by production: natural gas deliveries rose 10% to 1,337 MMcfd, and total natural gas equivalent volumes reached 1,561 MMcfed, up about 9%. The composite average natural gas price fell 13% to $5.74/Mcf, while crude oil rose to $62.38/Bbl. Mark-to-market hedging gains of $334 million, of which $215 million was realized, supported results, and per-unit operating costs rose to $3.01/Mcfe from $2.70 as DD&A and lease expenses increased. The balance sheet strengthened materially. Debt fell to $733 million from $985 million, the debt-to-capitalization ratio dropped to 12% from 19%, and shareholders' equity rose to $5.6 billion. Total proved reserves reached 6.8 Tcfe, up 607 Bcfe, with about 60% in the United States, 20% in Canada and 20% in Trinidad. Management budgets roughly $3.4 billion of 2007 exploration and development spending, excluding acquisitions, and the board raised the quarterly dividend to $0.09 per share. Key risks for investors are commodity-price exposure, since EOG is primarily a natural gas producer, with each $0.10/Mcf move worth about $27 million in net income, and its dependence on infrastructure such as pipelines and processing. Its international operations also carry foreign-currency, political and fiscal exposure, particularly in Trinidad and the UK North Sea. Hedging positions for 2007 are price swaps only, with no collars outstanding.
Feb 28, 2007
2005
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2005
EOG Resources' FY2005 10-K shows a company riding a strong commodity cycle: net income available to common rose 104% to $1,252 million on revenues of $3,620 million (up 59% year over year), driven primarily by a 36% higher composite natural gas price ($6.62/Mcf) and 17% higher gas deliveries (1,216 MMcfd). Production reached 1,433 MMcfe per day, and total proved reserves grew 548 Bcfe to 6.2 Tcfe, with about 88% of U.S. and Canadian reserves in natural gas. Operating cash flow was $2.37 billion, which covered the $1.86 billion exploration and development program, debt was cut by $93 million to $985 million, and the debt-to-capitalization ratio fell from 27% to 19%. The balance sheet strengthened materially, with shareholders' equity up roughly 47% to $4.3 billion and cash rising to $644 million at year-end. Management guided to a roughly $2.5 billion 2006 capital budget, plans to fund it largely from operating cash flow, and raised the quarterly dividend to $0.06 per share. Growth is concentrated in the Barnett Shale, where production is near 100 MMcfd and the company plans about 210 gross wells in 2006, and in international gas supply to Trinidad, where contracts tie EOG to ammonia, methanol, and LNG demand. Investors should weigh the earnings' sensitivity to gas prices: management estimates each $0.10/Mcf change in 2006 wellhead gas prices moves net income by about $24 million, and hedging is limited to collars and swaps that run only through October 2006. Other considerations include rising per-unit costs (total per-unit costs of $2.70/Mcfe versus $2.41 in 2004), a 36% effective tax rate, and Trinidad and Canada operating risks, along with a large 2006 rig commitment of about $183 million.
Feb 23, 2006
2004
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2004
EOG Resources' 2004 Form 10-K shows a company at a high point of operating momentum: net income available to common rose 47% to $614 million ($5.15 diluted EPS) on revenue of $2.27 billion, driven mainly by higher commodity prices and production growth. Wellhead natural gas production averaged 1,036 MMcf/d (up 8%) and total production reached 1,233 MMcfe/d, while the composite natural gas price rose 10% to $4.86/Mcf and crude oil rose 34% to $40.22/Bbl. Proved reserves grew 8% to 5.6 Tcfe, with the Barnett Shale in Texas emerging as a major new growth driver, now at roughly 400,000 net acres. Balance sheet strength improved meaningfully. The debt-to-total-capitalization ratio fell to 27% from 33%, long-term debt was reduced slightly to $1.08 billion, and $50 million of Series D preferred stock was redeemed. Management plans a 2005 exploration and development budget of about $1.6 billion, which it expects to fund primarily from operating cash flow. Operating cash flow of $1.44 billion covered 2004 capital spending of $1.5 billion. Investors should weigh several items. EOG is primarily a natural gas producer, so earnings are highly sensitive to gas prices; management estimates that each $0.10/Mcf change in wellhead gas price moves net income by about $21 million on an unhedged basis. The company also announced a two-for-one stock split effective March 1, 2005, a 33% increase in the quarterly dividend, and expanded international commitments in Trinidad and the North Sea, along with Canadian currency exposure and equity investments in Trinidadian ammonia plants.
Feb 25, 2005
2003
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2003
EOG Resources' 10-K for fiscal 2003 shows a company that is primarily a natural gas producer with a rapidly strengthening financial profile. Net operating revenues rose to $1.74 billion in 2003 from $1.09 billion in 2002, and operating income climbed to $697 million from $181 million. Net income available to common reached $419 million, or $3.60 per diluted share, versus $0.65 in 2002. Gas prices were the main driver: the composite wellhead gas price averaged $4.40/Mcf versus $2.60 in 2002, while crude realizations rose to roughly $29.92/Bbl. Note that the 2003 figure includes a $7.1 million cumulative accounting-change charge (SFAS 143). The balance sheet strengthened meaningfully. Total assets grew to $4.75 billion and shareholders' equity rose to $2.22 billion, while long-term debt eased slightly to $1.11 billion. Proved reserves were 5,216 Bcfe at year-end 2003, about 89% natural gas, with roughly 49% in the U.S., 27% in Trinidad, 23% in Canada and 1% in the UK North Sea. Capital spending on drilling and acquisitions was about $1.33 billion, including a $320 million acquisition of primarily gas properties in Canada in October 2003. Production is roughly 955 MMcf/d of gas and 23 MBbl/d of oil in 2003, with the company guiding to continued growth in 2004. Investors should weigh several items. Results are highly sensitive to natural gas prices, and EOG hedges with collars and swaps through October 2004. The company also has significant international exposure through Trinidad, including equity stakes in ammonia plants (CNCL and N2000) that rely on non-recourse project debt. The filing also notes a 2001 $19.2 million Enron-related charge and that the 2002 auditor change involved Arthur Andersen. EOG's 10-K largely incorporates financial statements by reference from an 8-K filed February 24, 2004, so the detailed financials are not contained in this document.
Mar 11, 2004
2002
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2002
EOG Resources' 2002 Form 10-K shows a year of sharply lower commodity prices colliding with a still-growing production base. Net operating revenues fell 34% to $1,095 million from $1,655 million, driven by a 32% decline in the average North American wellhead natural gas price to $2.60/Mcf. Production held roughly flat at about 1,086 MMcfe per day, with growth in Canada and Trinidad offsetting declines in the United States. Operating income fell to $181 million from $675 million, and net income available to common shares dropped to $76 million ($0.65 diluted EPS) from $388 million ($3.30) in 2001. The 2002 result also absorbed a $48.5 million mark-to-market loss on derivative contracts. Balance sheet leverage rose meaningfully. Long-term debt increased to $1,145 million from $856 million, and the debt-to-total-capitalization ratio climbed to 40.6% from 34.3%. Operating cash flow fell to $669 million from $1,197 million, and capital spending of $836 million exceeded cash generated from operations, which is why borrowings rose. Management budgets $800-950 million of exploration and development spending for 2003, excluding acquisitions, and says it expects internally generated cash flow plus financing alternatives to cover investing needs. Ongoing items to watch include the pending sale of part of EOG's stakes in two Trinidadian ammonia ventures, a Civil False Claims Act royalty lawsuit, and the Enron bankruptcy-related charges recorded in 2001. For investors, the filing is a story of a natural gas-weighted producer whose earnings are highly sensitive to price. Shareholders are exposed to a weaker 2003 price outlook, but EOG has hedged part of its 2003 gas and oil volumes with collars and swaps, and it is pushing growth through lower-cost Canadian shallow gas drilling, Trinidad projects, and new discoveries in the Gulf of Mexico and Texas.
Mar 13, 2003
2001
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2001
EOG Resources' 2001 10-K shows a company that enjoyed a strong year on the revenue and cash flow side while absorbing rising costs and some one-time charges. Net operating revenues rose to $1,655 million from $1,490 million, driven by a 9% increase in average wellhead natural gas prices and a $98 million mark-to-market gain on hedges, partially offset by a 16% decline in crude oil prices. Net income was $398.6 million, roughly flat versus 2000's $396.9 million, and diluted EPS was $3.30 versus $3.24. Net operating cash inflows reached $1,197 million, up about $230 million, which funded $1,163 million of exploration and development spending (including acquisitions) with $127 million of share repurchases and $29 million of dividends. The headline numbers mask some margin pressure. Lease and well expenses rose to $0.44 per Mcfe from $0.35, DD&A increased $33 million on higher unit rates, dry hole costs more than quadrupled to $71 million, and impairments rose to $79 million. Management also recorded a $19.2 million charge tied to the Enron Corp. bankruptcy, mostly related to 2001 and 2002 derivative contracts. Total operating costs per Mcfe climbed 9% to $1.97. Proved natural gas reserves increased to 3,796 Bcf from 3,381 Bcf, with extensions and discoveries of 713 Bcf, though reserve growth was partly offset by downward revisions of 133 Bcf and a 340 Bcf production year. The balance sheet is conservatively positioned, with long-term debt of $856 million, a debt-to-total-capitalization ratio of 34% (down from 38%), and shareholders' equity of $1.64 billion. The company disclosed a 2002 budget of $600 to $750 million for exploration and development, excluding acquisitions, and continued diversification efforts into Trinidad, Canada and other international areas. Investors should note the company's heavy dependence on natural gas prices, with a $0.10 per Mcf move affecting net income by about $15 million, and that much of the financial detail is incorporated by reference from the February 28, 2002 Form 8-K rather than set out in this filing.
Mar 20, 2002
2000
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2000
EOG Resources' 2000 10-K shows a record year driven by the natural gas price spike. Net income available to common rose to $385.9 million ($3.30 basic per share) from $568.6 million in 1999, which was inflated by a $575 million tax-free gain on the Enron Share Exchange; on an as-adjusted basis, 1999 net income was about $57.6 million. Net operating revenues more than doubled to $1,490 million, driven by average composite natural gas prices of $3.49/Mcf (vs. $2.01 in 1999) and crude oil at $29.57/Bbl (vs. $17.12). Operating cash flow reached $967 million and discretionary cash flow about $1,007 million, which funded $687 million of exploration and development spending, $273 million of share repurchases, and $131 million of debt reduction. Total long-term debt fell to $859 million, and the debt-to-capitalization ratio dropped to 38% from 47%. Production was roughly flat in total volume (1,101 MMcfe/d vs. 1,099 in 1999), but per-share production grew sharply as share count fell to 116.9 million from 119.1 million at year-end 1999 (and from about 160 million in 1996). Proved reserves rose about 6% to 3,821 Bcfe, and EOG replaced 152% of production at a finding cost of $1.07/Mcfe. The stock rose 211% in 2000, and EOG joined the S&P 500 in November. Investors should weigh several risks. Results are heavily tied to natural gas prices: management cites a sensitivity of $19 million in net income per $0.10/Mcf change. The filing also notes that natural gas prices declined significantly after December 31, 2000, so the standardized measure of $7.9 billion would be substantially lower if calculated in early 2001. Other items include unhedged gas exposure for 2001, pending shareholder lawsuits over the Enron Share Exchange, and the Trinidad and Canadian operations, which make up a significant share of reserves. The 2001 budget of $700-800 million excludes acquisitions, and the dividend was raised to $0.16 per share in early 2001.
Mar 23, 2001
1998-A
EOG RESOURCES INC Annual Report (Amendment), Year Ended Dec 31, 1998
This document is Amendment No. 1 (Form 10-K/A) to the annual report of Enron Oil & Gas Company (the filing is labeled EOG in the request; the registrant named in the filing is Enron Oil & Gas Company, NYSE: common stock, $.01 par) for the fiscal year ended December 31, 1998. It is a Part III-only amendment: it supplies director and executive officer information, executive compensation, security ownership, and related-party disclosures that were omitted from the original 10-K filed March 18, 1999. It contains no new financial statements, so it does not update revenue, earnings, reserves, or balance sheet figures; investors should refer to the original 10-K for those. The most important investor-relevant fact is control and related-party exposure. Enron Corp. owns 82,270,000 shares, or 53.52% of the outstanding common stock (153,731,704 shares as of March 1, 1999), giving the parent effective control. Several Company directors and officers also hold Enron Corp. positions, and the Company has significant business relationships with Enron Corp., described in Part I of the original filing. Non-affiliate market value was about $1.11 billion as of February 26, 1999. Compensation and change-of-control terms are also material. The filing describes a retention bonus program triggered by a change of control, accelerated vesting of options and restricted stock upon announcement of a transaction, cash buyout options at 75% of Black-Scholes value for grants priced above $14.1875, and multi-year employment agreements with severance of up to 2.99 times salary plus two times bonus for key executives. These provisions could raise the cost of an acquisition. Chairman Forrest Hoglund's annual base salary is $570,000, and CEO Mark Papa's is $400,020 with a 1998 bonus of $400,000.
Apr 30, 1999
1993
EOG RESOURCES INC Annual Report, Year Ended Dec 31, 1993
This 10-K covers fiscal 1993 for Enron Oil & Gas Company (the name under which EOG Resources operated before its later rename; the filing itself uses the Enron name). The company is primarily a natural gas producer, with 1,772 Bcf of net proved natural gas reserves and 20.9 MMBbl of liquids at year-end 1993. About 78% of reserves were in the U.S., 16% in Canada, and 6% in Trinidad. Core areas include Big Piney (Wyoming), South Texas (Lobo Trend), the Matagorda Trend offshore Texas, and the Canyon Trend in West Texas. Enron Corp. owns 80% of the common stock and controls the company's management, capital spending plans, and dividends. Financial performance improved sharply in 1993. Net operating revenues rose about 25% to $567.7 million from $453.0 million, and net income rose 41% to $138.0 million, or $1.73 per share, compared with $1.26 in 1992. Results were helped by a $65 million benefit from tight gas sand federal income tax credits, a $12 million deferred tax reduction, a $50 million federal tax refund, and higher wellhead gas prices, which rose about 22%. Net operating cash inflows were $479.7 million, and discretionary cash flow was about $487 million. Long-term debt was $153 million, and the long-term debt-to-total-capital ratio was 14%. The main risks are natural gas price exposure, since management estimates that each $0.10 per Mcf change in wellhead prices moves net income by about $7 million. The tax credit benefit is expected to fall to about $40 million in 1994. Other risks include the $100 million actual damages (plus $300 million exemplary damages) sought in the TransAmerican lawsuit, which management says is without merit and has set for trial in September 1994, and the parent's ability to influence the company's strategy and capital allocation. Management plans about $450 million of exploration and development spending in 1994, mostly funded from internal cash flow.
Mar 23, 1994