10-QPeriod: Q3 FY2021

EOG RESOURCES INC Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 4, 2021For Securities:EOG

Summary

EOG Resources, Inc. reported strong financial performance for the nine months ending September 30, 2021, driven by a significant rebound in commodity prices. Total revenues surged to $12.6 billion, a 56% increase from the prior year period, with net income reaching $2.68 billion compared to a net loss of $942 million in the same period of 2020. This turnaround was bolstered by higher realized prices for crude oil, natural gas liquids (NGLs), and natural gas, alongside increased production volumes, particularly in the Permian Basin and Eagle Ford plays. The company also demonstrated effective cost management, with operating expenses remaining relatively stable year-over-year despite increased activity. EOG's balance sheet remains robust, with $4.3 billion in cash and cash equivalents and a low debt-to-total capitalization ratio of 19% as of September 30, 2021. The company's strategic focus on high-return projects and operational efficiencies continues to support its financial strength and shareholder returns, evidenced by increased dividend payouts and a new $5 billion share repurchase authorization announced in November 2021.

Financial Highlights

46 data points
Beta

Revenue

$4.76B

Net Income

$1.09B

23.0% Net Margin

EPS (Diluted)

$1.88

Total Assets

$37.17B

Cash & Equivalents

$4.29B

Free Cash Flow

$2.20B

Financial Statements
Beta
Revenue$4.76B
Operating Expenses$3.29B
Operating Income$1.47B
Interest Expense$48.00M
Net Income$1.09B
EPS (Basic)$1.88
EPS (Diluted)$1.88
Shares Outstanding (Basic)581.00M
Shares Outstanding (Diluted)584.00M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2021, increased by 56% to $12.6 billion, compared to $8.07 billion in the prior year period.
  • 2Net income for the nine months reached $2.68 billion, a significant turnaround from a net loss of $942 million in the same period of 2020.
  • 3Average commodity prices saw substantial increases, with crude oil up 74%, NGLs up 168%, and natural gas up 164% for the nine-month period compared to 2020.
  • 4Operating expenses for the nine months were $9.02 billion, a slight decrease from $9.10 billion in the prior year, reflecting efficient cost management.
  • 5The company maintained a strong financial position with $4.3 billion in cash and cash equivalents and a debt-to-total capitalization ratio of 19% as of September 30, 2021.
  • 6EOG declared a substantial increase in its quarterly dividend and announced a new $5 billion share repurchase authorization in November 2021.
  • 7Significant year-over-year improvements were seen across all key revenue streams: crude oil and condensate, NGLs, and natural gas.

Frequently Asked Questions

The primary driver was the significant increase in commodity prices for crude oil, natural gas liquids (NGLs), and natural gas. This, combined with increased production volumes, led to a substantial rise in operating revenues and a turnaround from a net loss in the previous year to strong net income.

EOG demonstrated effective cost management, with total operating expenses for the first nine months of 2021 being slightly lower than the prior year period. The company continues to focus on operational efficiencies and cost control, which has helped to maintain a stable cost structure even with increased production activity.

EOG maintains a strong financial position. As of September 30, 2021, the company had $4.3 billion in cash and cash equivalents and a low debt-to-total capitalization ratio of 19%. This indicates robust liquidity and a healthy balance sheet.

EOG is actively returning capital to shareholders through dividends and share repurchases. In November 2021, the company announced a significant increase in its quarterly dividend and established a new $5 billion share repurchase authorization, signaling confidence in its future cash generation and commitment to shareholder value.