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10-QPeriod: Q2 FY2020

EOG RESOURCES INC Quarterly Report for Q2 Ended Jun 30, 2020

Filed August 6, 2020For Securities:EOG

Summary

EOG Resources Inc. (EOG) reported a significant net loss for the three months ended June 30, 2020, of $909.4 million, or $1.57 per diluted share, a stark contrast to the net income of $847.8 million, or $1.46 per diluted share, in the same period of 2019. This downturn was driven by a substantial decrease in operating revenues, which fell by 77% to $1.1 billion, reflecting the severe impact of the COVID-19 pandemic and a sharp decline in commodity prices, particularly for crude oil and natural gas. Despite the significant quarterly loss, EOG's financial position remained relatively stable. The company ended the period with $2.4 billion in cash and cash equivalents and had $2.0 billion of availability under its senior unsecured revolving credit facility. EOG also proactively managed its capital expenditures and production in response to the challenging market conditions, reducing its projected 2020 capital spending and curtailing some production. The company's debt-to-total capitalization ratio remained conservative at 22% as of June 30, 2020.

Financial Highlights

45 data points
Beta

Revenue

$1.10B

Net Income

-$910.00M

-0.8% Net Margin

EPS (Diluted)

$-1.57

Total Assets

$35.22B

Cash & Equivalents

$2.42B

Free Cash Flow

$88.00M

Financial Statements
Beta
Revenue$1.10B
Operating Expenses$2.19B
Operating Income-$1.09B
Interest Expense$54.00M
Net Income-$910.00M
EPS (Basic)$-1.57
EPS (Diluted)$-1.57
Shares Outstanding (Basic)579.00M
Shares Outstanding (Diluted)579.00M

Key Highlights

  • 1Net Loss of $909.4 million ($1.57/share) for Q2 2020, compared to Net Income of $847.8 million ($1.46/share) in Q2 2019.
  • 2Operating Revenues significantly decreased by 77% to $1.1 billion in Q2 2020, primarily due to lower commodity prices and reduced production volumes.
  • 3Cash and Cash Equivalents stood at $2.4 billion as of June 30, 2020, providing a strong liquidity position.
  • 4Total Capital Expenditures for 2020 are projected to be between $3.4 billion and $3.6 billion, a reduction from previous plans, reflecting management's response to market conditions.
  • 5The company reduced its crude oil production in 2020, including delaying new wells and curtailing existing production, due to the challenging price environment.
  • 6Debt-to-total capitalization ratio was a healthy 22% at June 30, 2020, indicating a strong balance sheet.
  • 7Significant impairment charges of $305 million were recorded in Q2 2020, primarily related to asset write-downs due to declining commodity prices.

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