8-K - EOG - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 3, 2023

_______________

EOG RESOURCES, INC.

(Exact name of registrant as specified in its charter)

Delaware	1-9743	47-0684736
(State or other jurisdiction<br> of incorporation)	(Commission File<br> Number)	(I.R.S. Employer<br>Identification No.)

1111 Bagby, Sky Lobby 2

Houston, Texas 77002

(Address of principal executive offices) (Zip Code)

713-651-7000

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	EOG	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

EOG RESOURCES, INC.

Item 2.02 Results of Operations and Financial Condition.

On August 3, 2023, EOG Resources, Inc. issued a press release announcing second quarter 2023 financial and operational results and third quarter and full year 2023 forecast and benchmark commodity pricing information (see Item 7.01 below). A copy of this release is attached as Exhibit 99.1 to this filing and is incorporated herein by reference. This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

Item 7.01 Regulation FD Disclosure.

Accompanying the press release announcing second quarter 2023 financial and operational results attached hereto as Exhibit 99.1 is third quarter and full year 2023 forecast and benchmark commodity pricing information for EOG Resources, Inc., which information is incorporated herein by reference. This information shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release of EOG Resources, Inc. dated August 3, 2023 (including the accompanying third quarter and full year 2023 forecast and benchmark commodity pricing information).

104 Cover Page Interactive Data File (formatted as Inline XBRL).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		EOG RESOURCES, INC.<br>(Registrant)
Date: August 3, 2023	By:	/s/ TIMOTHY K. DRIGGERS<br><br>Timothy K. Driggers<br><br>Executive Vice President and Chief Financial Officer<br><br>(Principal Financial Officer and Duly Authorized Officer)

Document

EXHIBIT 99.1

Table of Contents
Second Quarter 2023
Supplemental Financial and Operating Data	Page
Income Statements	12
Wellhead Volumes and Prices	13
Balance Sheets	14
Cash Flows Statements	15
Non-GAAP Financial Measures	16
Adjusted Net Income (Loss)	17
Net Income Per Share	22
Adjusted Net Income Per Share	24
Cash Flow from Operations and Free Cash Flow	26
Net Debt-to-Total Capitalization Ratio	27
Income Statements
---	---	---	---	---	---	---	---	---	---
In millions of , except share data (in millions) and per share data (Unaudited)
					2023
	2nd Qtr	3rd Qtr	4th Qtr	Year	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Operating Revenues and Other
Crude Oil and Condensate	4,699	4,109	3,670	16,367	3,182	3,252			6,434
Natural Gas Liquids	777	693	497	2,648	490	409			899
Natural Gas	1,000	1,235	830	3,781	517	334			851
Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts, Net	(1,377)	(18)	233	(3,982)	376	101			477
Gathering, Processing and Marketing	2,169	1,561	1,497	6,696	1,390	1,465			2,855
Gains (Losses) on Asset Dispositions, Net	97	(21)	(27)	74	69	(9)			60
Other, Net	42	34	19	118	20	21			41
Total	7,407	7,593	6,719	25,702	6,044	5,573			11,617
Operating Expenses
Lease and Well	324	335	354	1,331	359	348			707
Transportation Costs	244	257	237	966	236	236			472
Gathering and Processing Costs	152	167	158	621	159	160			319
Exploration Costs	35	35	44	159	50	47			97
Dry Hole Costs	20	18	4	45	1	—			1
Impairments	91	94	142	382	34	35			69
Marketing Costs	2,127	1,621	1,504	6,535	1,361	1,456			2,817
Depreciation, Depletion and Amortization	911	906	878	3,542	798	866			1,664
General and Administrative	128	162	156	570	145	142			287
Taxes Other Than Income	472	334	389	1,585	329	313			642
Total	4,504	3,929	3,866	15,736	3,472	3,603			7,075
Operating Income	2,903	3,664	2,853	9,966	2,572	1,970			4,542
Other Income (Expense), Net	27	40	48	114	65	51			116
Income Before Interest Expense and Income Taxes	2,930	3,704	2,901	10,080	2,637	2,021			4,658
Interest Expense, Net	48	41	42	179	42	35			77
Income Before Income Taxes	2,882	3,663	2,859	9,901	2,595	1,986			4,581
Income Tax Provision	644	809	582	2,142	572	433			1,005
Net Income	2,238	2,854	2,277	7,759	2,023	1,553			3,576
Dividends Declared per Common Share	2.5500	2.2500	2.3250	8.8750	1.8250	0.8250			2.6500
Net Income Per Share
Basic	3.84	4.90	3.90	13.31	3.46	2.68			6.14
Diluted	3.81	4.86	3.87	13.22	3.45	2.66			6.10
Average Number of Common Shares
Basic	583	583	584	583	584	580			582
Diluted	588	587	588	587	587	584			586

All values are in US Dollars.

Wellhead Volumes and Prices
(Unaudited)
										2023
		2nd Qtr		3rd Qtr		4th Qtr		Year		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD
Crude Oil and Condensate Volumes (MBbld) (A)
United States		463.5		464.6		465.1		460.7		457.1		476.0				466.6
Trinidad		0.6		0.5		0.5		0.6		0.6		0.6				0.6
Total		464.1		465.1		465.6		461.3		457.7		476.6				467.2
Average Crude Oil and Condensate Prices (/Bbl) (B)
United States	96.02	$	111.26	$	96.05	$	85.68	$	97.22	$	77.27	$	74.98			$	76.10
Trinidad		98.29		84.98		75.21		86.16		68.98		64.88				66.92
Composite		111.25		96.04		85.67		97.21		77.26		74.97				76.09
Natural Gas Liquids Volumes (MBbld) (A)
United States		201.9		209.3		189.0		197.7		212.2		215.7				213.9
Total		201.9		209.3		189.0		197.7		212.2		215.7				213.9
Average Natural Gas Liquids Prices (/Bbl) (B)
United States	39.77	$	42.28	$	36.02	$	28.55	$	36.70	$	25.67	$	20.85			$	23.23
Composite		42.28		36.02		28.55		36.70		25.67		20.85				23.23
Natural Gas Volumes (MMcfd) (A)
United States		1,324		1,306		1,378		1,315		1,475		1,513				1,494
Trinidad		204		163		149		180		164		155				160
Total		1,528		1,469		1,527		1,495		1,639		1,668				1,654
Average Natural Gas Prices (/Mcf) (B)
United States	5.81	$	7.77	$	9.35	$	6.12	$	7.27	$	3.47	$	2.07			$	2.76
Trinidad (D)		3.42		7.45		3.97		4.43		3.87		3.45				3.67
Composite		7.19		9.14		5.91		6.93		3.51		2.20				2.84
Crude Oil Equivalent Volumes (MBoed) (C)
United States		886.1		891.6		883.8		877.5		915.0		943.8				929.5
Trinidad		34.6		27.6		25.3		30.7		28.0		26.5				27.2
Total		920.7		919.2		909.1		908.2		943.0		970.3				956.7
Total MMBoe (C)		83.8		84.6		83.6		331.5		84.9		88.3				173.2

All values are in US Dollars.

(A)Thousand barrels per day or million cubic feet per day, as applicable.

(B)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 quarterly period ended June 30, 2023).

(C)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.

(D)Includes positive revenue adjustment of $3.37 per Mcf and $0.76 per Mcf ($0.37 per Mcf and $0.09 per Mcf of EOG's composite wellhead natural gas price) for the three months ended September 30, 2022 and the twelve months ended December 31, 2022, respectively, related to a price adjustment per a provision of the natural gas sales contract with the National Gas Company of Trinidad and Tobago Limited and its subsidiary amended in July 2022 for natural gas sales during the period from September 2020 through June 2022.

Balance Sheets
In millions of (Unaudited)
				2023
	JUN	SEP	DEC	MAR	JUN	SEP	DEC
Current Assets
Cash and Cash Equivalents	3,073	5,272	5,972	5,018	4,764
Accounts Receivable, Net	3,735	3,343	2,774	2,455	2,263
Inventories	739	872	1,058	1,131	1,355
Assets from Price Risk Management Activities	1	—	—	—	—
Income Taxes Receivable	—	93	97	—	1
Other	605	621	574	580	523
Total	8,153	10,201	10,475	9,184	8,906
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method)	66,098	67,065	67,322	67,907	69,178
Other Property, Plant and Equipment	4,862	4,659	4,786	5,101	5,282
Total Property, Plant and Equipment	70,960	71,724	72,108	73,008	74,460
Less: Accumulated Depreciation, Depletion and Amortization	(42,113)	(42,623)	(42,679)	(42,785)	(43,550)
Total Property, Plant and Equipment, Net	28,847	29,101	29,429	30,223	30,910
Deferred Income Taxes	12	18	33	31	33
Other Assets	1,127	1,167	1,434	1,587	1,638
Total Assets	38,139	40,487	41,371	41,025	41,487
Current Liabilities
Accounts Payable	2,896	2,718	2,532	2,438	2,205
Accrued Taxes Payable	594	542	405	637	425
Dividends Payable	437	437	482	482	478
Liabilities from Price Risk Management Activities	79	243	169	31	22
Current Portion of Long-Term Debt	1,282	1,282	1,283	33	34
Current Portion of Operating Lease Liabilities	216	235	296	354	335
Other	264	289	346	253	232
Total	5,768	5,746	5,513	4,228	3,731
Long-Term Debt	3,809	3,802	3,795	3,787	3,780
Other Liabilities	2,067	2,573	2,574	2,620	2,581
Deferred Income Taxes	4,183	4,517	4,710	4,943	5,138
Commitments and Contingencies
Stockholders' Equity
Common Stock, 0.01 Par	206	206	206	206	206
Additional Paid in Capital	6,128	6,155	6,187	6,219	6,257
Accumulated Other Comprehensive Loss	(12)	(6)	(8)	(8)	(9)
Retained Earnings	16,028	17,563	18,472	19,423	20,497
Common Stock Held in Treasury	(38)	(69)	(78)	(393)	(694)
Total Stockholders' Equity	22,312	23,849	24,779	25,447	26,257
Total Liabilities and Stockholders' Equity	38,139	40,487	41,371	41,025	41,487

All values are in US Dollars.

Cash Flows Statements
In millions of (Unaudited)
					2023
	2nd Qtr	3rd Qtr	4th Qtr	Year	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Net Income	2,238	2,854	2,277	7,759	2,023	1,553			3,576
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization	911	906	878	3,542	798	866			1,664
Impairments	91	94	142	382	34	35			69
Stock-Based Compensation Expenses	30	34	34	133	34	35			69
Deferred Income Taxes	(102)	327	179	(61)	234	194			428
(Gains) Losses on Asset Dispositions, Net	(97)	21	27	(74)	(69)	9			(60)
Other, Net	(16)	(5)	15	—	4	2			6
Dry Hole Costs	20	18	4	45	1	—			1
Mark-to-Market Financial Commodity Derivative Contracts (Gains) Losses, Net	1,377	18	(233)	3,982	(376)	(101)			(477)
Net Cash Payments for Settlements of Financial Commodity Derivative Contracts	(2,114)	(847)	(244)	(3,501)	(123)	(30)			(153)
Other, Net	19	12	12	45	(1)	—			(1)
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable	(522)	392	661	(347)	338	137			475
Inventories	(157)	(140)	(223)	(534)	(77)	(226)			(303)
Accounts Payable	259	(88)	(211)	90	(77)	(231)			(308)
Accrued Taxes Payable	(536)	(53)	(137)	(113)	232	(212)			20
Other Assets	71	(129)	(93)	(364)	52	43			95
Other Liabilities	433	1,269	282	(266)	193	(47)			146
Changes in Components of Working Capital Associated with Investing Activities	143	90	74	375	35	250			285
Net Cash Provided by Operating Activities	2,048	4,773	3,444	11,093	3,255	2,277			5,532
Investing Cash Flows
Additions to Oil and Gas Properties	(1,349)	(1,102)	(1,229)	(4,619)	(1,305)	(1,341)			(2,646)
Additions to Other Property, Plant and Equipment	(75)	(103)	(133)	(381)	(319)	(180)			(499)
Proceeds from Sales of Assets	110	79	39	349	92	29			121
Other Investing Activities	(30)	—	—	(30)	—	—			—
Changes in Components of Working Capital Associated with Investing Activities	(143)	(90)	(74)	(375)	(35)	(250)			(285)
Net Cash Used in Investing Activities	(1,487)	(1,216)	(1,397)	(5,056)	(1,567)	(1,742)			(3,309)
Financing Cash Flows
Long-Term Debt Repayments	—	—	—	—	(1,250)	—			(1,250)
Dividends Paid	(1,486)	(1,312)	(1,327)	(5,148)	(1,067)	(480)			(1,547)
Treasury Stock Purchased	(15)	(37)	(23)	(118)	(317)	(302)			(619)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan	13	—	11	28	—	9			9
Debt Issuance Costs	—	—	—	—	—	(8)			(8)
Repayment of Finance Lease Liabilities	(9)	(8)	(8)	(35)	(8)	(8)			(16)
Net Cash Used in Financing Activities	(1,497)	(1,357)	(1,347)	(5,273)	(2,642)	(789)			(3,431)
Effect of Exchange Rate Changes on Cash	—	(1)	—	(1)	—	—			—
Increase (Decrease) in Cash and Cash Equivalents	(936)	2,199	700	763	(954)	(254)			(1,208)
Cash and Cash Equivalents at Beginning of Period	4,009	3,073	5,272	5,209	5,972	5,018			5,972
Cash and Cash Equivalents at End of Period	3,073	5,272	5,972	5,972	5,018	4,764			4,764

All values are in US Dollars.

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), Cash Flow from Operations Before Working Capital, Free Cash Flow, Net Debt and related statistics.

A reconciliation of each of these measures to their most directly comparable GAAP financial measure and related discussion is included in the tables on the following pages and can also be found in the “Reconciliations & Guidance” section of the “Investors” page of the EOG website at www.eogresources.com.

As further discussed in the tables on the following pages, 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 results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the company’s performance. As is discussed in the tables on the following pages, EOG uses these non-GAAP measures for purposes of (i) comparing EOG’s financial performance with the financial performance of other companies in the industry and (ii) analyzing EOG’s financial 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), Long-Term Debt (including Current Portion of Long-Term 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.

Direct ATROR

The calculation of EOG's direct after-tax rate of return (ATROR) is based on EOG’s net estimated recoverable reserves for a particular well(s) or play, the estimated net present value of the future net cash flows from such reserves (for which EOG utilizes certain assumptions regarding future commodity prices and operating costs) and EOG's direct net costs incurred in drilling or acquiring such well(s). As such, EOG's direct ATROR for a particular well(s) or play cannot be calculated from EOG’s consolidated financial statements.

Adjusted Net Income (Loss)
In millions of , except share data (in millions) and per share data (Unaudited)
The following tables adjust reported Net Income (Loss) (GAAP) to reflect actual net cash received from (payments for) settlements of financial commodity derivative contracts by eliminating the unrealized mark-to-market (gains) losses from these transactions, to eliminate the net (gains) losses on asset dispositions, to add back impairment charges related to certain of EOG's assets (which are generally (i) attributable to declines in commodity prices, (ii) related to sales of certain oil and gas properties or (iii) the result of certain other events or decisions (e.g., a periodic review of EOG's oil and gas properties or other assets)), and to make certain other adjustments to exclude non-recurring and certain other items as further described below. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match hedge realizations to production settlement months and make certain other adjustments to exclude non-recurring and certain other items. EOG management uses this information for purposes of comparing its financial performance with the financial performance of other companies in the industry.

	Income Tax Impact	After<br>Tax	Diluted Earnings per Share
Reported Net Income (GAAP)	(433)	1,553	2.66
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net	22	(79)	(0.14)
Net Cash Payments for Settlements of Financial Commodity Derivative Contracts (1)	6	(24)	(0.04)
Add: Losses on Asset Dispositions, Net	(2)	7	0.01
Adjustments to Net Income	26	(96)	(0.17)
Adjusted Net Income (Non-GAAP)	(407)	1,457	2.49
Average Number of Common Shares (Non-GAAP)
Basic			580
Diluted			584

All values are in US Dollars.

(1) Consistent with its customary practice, in calculating Adjusted Net Income (Loss) (non-GAAP), EOG subtracts from reported Net Income (Loss) (GAAP) the total net cash paid for settlements of financial commodity derivative contracts during such period. For the three months ended June 30, 2023, such amount was $30 million.

Adjusted Net Income (Loss) (Continued)
In millions of , except share data (in millions) and per share data (Unaudited)

	Income Tax Impact	After<br>Tax	Diluted Earnings per Share
Reported Net Income (GAAP)	(572)	2,023	3.45
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net	81	(295)	(0.51)
Net Cash Payments for Settlements of Financial Commodity Derivative Contracts (1)	27	(96)	(0.16)
Less: Gains on Asset Dispositions, Net	15	(54)	(0.09)
Adjustments to Net Income	123	(445)	(0.76)
Adjusted Net Income (Non-GAAP)	(449)	1,578	2.69
Average Number of Common Shares (Non-GAAP)
Basic			584
Diluted			587

All values are in US Dollars.

Adjusted Net Income (Loss) (Continued)
In millions of , except share data (in millions) and per share data (Unaudited)

	Income Tax Impact	After<br>Tax	Diluted Earnings per Share
Reported Net Income (GAAP)	(582)	2,277	3.87
Adjustments:
Gains on Mark-to-Market Financial Commodity Derivative Contracts, Net	57	(176)	(0.31)
Net Cash Payments for Settlements of Financial Commodity Derivative Contracts (1)	48	(196)	(0.33)
Add: Losses on Asset Dispositions, Net	(6)	21	0.04
Add: Certain Impairments	(16)	15	0.03
Adjustments to Net Income	83	(336)	(0.57)
Adjusted Net Income (Non-GAAP)	(499)	1,941	3.30
Average Number of Common Shares (Non-GAAP)
Basic			584
Diluted			588

All values are in US Dollars.

Adjusted Net Income (Loss) (Continued)
In millions of , except share data (in millions) and per share data (Unaudited)

	Income Tax Impact	After<br>Tax	Diluted Earnings per Share
Reported Net Income (GAAP)	(809)	2,854	4.86
Adjustments:
Losses on Mark-to-Market Financial Commodity Derivative Contracts, Net	(4)	14	0.03
Net Cash Payments for Settlements of Financial Commodity Derivative Contracts (1)	184	(663)	(1.13)
Add: Losses on Asset Dispositions, Net	(3)	18	0.03
Add: Certain Impairments	(8)	38	0.06
Less: Severance Tax Refund	25	(90)	(0.15)
Add: Severance Tax Consulting Fees	(3)	13	0.02
Less: Interest on Severance Tax Refund	2	(5)	(0.01)
Adjustments to Net Income	193	(675)	(1.15)
Adjusted Net Income (Non-GAAP)	(616)	2,179	3.71
Average Number of Common Shares (Non-GAAP)
Basic			583
Diluted			587

All values are in US Dollars.

Adjusted Net Income (Loss) (Continued)
In millions of , except share data (in millions) and per share data (Unaudited)

	Income Tax Impact	After<br>Tax	Diluted Earnings per Share
Reported Net Income (GAAP)	(644)	2,238	3.81
Adjustments:
Losses on Mark-to-Market Financial Commodity Derivative Contracts, Net	(299)	1,078	1.82
Net Cash Payments for Settlements of Financial Commodity Derivative Contracts (1)	459	(1,655)	(2.81)
Less: Gains on Asset Dispositions, Net	21	(76)	(0.13)
Add: Certain Impairments	(7)	29	0.05
Adjustments to Net Income	174	(624)	(1.07)
Adjusted Net Income (Non-GAAP)	(470)	1,614	2.74
Average Number of Common Shares (Non-GAAP)
Basic			583
Diluted			588

All values are in US Dollars.

Net Income per Share
In millions of , except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
1Q 2023 Net Income per Share (GAAP)	3.45
Realized Price
2Q 2023 Composite Average Wellhead Revenue per Boe
Less: 1Q 2023 Composite Average Wellhead Revenue per Boe
Subtotal
Multiplied by: 2Q 2023 Crude Oil Equivalent Volumes (MMBoe)
Total Change in Revenue
Less: Income Tax Benefit (Provision) Imputed (based on 22%)
Change in Net Income
Change in Diluted Earnings per Share	(0.49)
Wellhead Volumes
2Q 2023 Crude Oil Equivalent Volumes (MMBoe)
Less: 1Q 2023 Crude Oil Equivalent Volumes (MMBoe)
Subtotal
Multiplied by: 2Q 2023 Composite Average Margin per Boe (Non-GAAP)(Including Total Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)
Change in Margin
Less: Income Tax Benefit (Provision) Imputed (based on 22%)
Change in Net Income
Change in Diluted Earnings per Share	0.09
Certain Operating Costs per Boe
1Q 2023 Total Cash Operating Costs (GAAP) and Total DD&A per Boe (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)
Less: 2Q 2023 Total Cash Operating Costs (GAAP) and Total DD&A per Boe (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)
Subtotal
Multiplied by: 2Q 2023 Crude Oil Equivalent Volumes (MMBoe)
Change in Before-Tax Net Income
Less: Income Tax Benefit (Provision) Imputed (based on 22%)
Change in Net Income
Change in Diluted Earnings per Share	0.02

All values are in US Dollars.

Net Income Per Share(Continued)
In millions of , except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts, Net
2Q 2023 Net Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts
Less: Income Tax Benefit (Provision)
After Tax - (a)
Less: 1Q 2023 Net Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts
Less: Income Tax Benefit (Provision)
After Tax - (b)
Change in Net Income - (a) - (b)
Change in Diluted Earnings per Share	(0.37)
Other (1)	(0.04)
2Q 2023 Net Income per Share (GAAP)	2.66
2Q 2023 Average Number of Common Shares (GAAP) - Diluted

All values are in US Dollars.

(1)Includes gathering, processing and marketing revenue, gains (losses) on asset dispositions, other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.

Adjusted Net Income Per Share
In millions of , except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
1Q 2023 Adjusted Net Income per Share (Non-GAAP)	2.69
Realized Price
2Q 2023 Composite Average Wellhead Revenue per Boe
Less: 1Q 2023 Composite Average Wellhead Revenue per Boe
Subtotal
Multiplied by: 2Q 2023 Crude Oil Equivalent Volumes (MMBoe)
Total Change in Revenue
Less: Income Tax Benefit (Provision) Imputed (based on 22%)
Change in Net Income
Change in Diluted Earnings per Share	(0.49)
Wellhead Volumes
2Q 2023 Crude Oil Equivalent Volumes (MMBoe)
Less: 1Q 2023 Crude Oil Equivalent Volumes (MMBoe)
Subtotal
Multiplied by: 2Q 2023 Composite Average Margin per Boe (Non-GAAP) (Including Total Exploration Costs) (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)
Change in Margin
Less: Income Tax Benefit (Provision) Imputed (based on 22%)
Change in Net Income
Change in Diluted Earnings per Share	0.09
Certain Operating Costs per Boe
1Q 2023 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)
Less: 2Q 2023 Total Cash Operating Costs (Non-GAAP) and Total DD&A per Boe (refer to "Revenues, Costs and Margins Per Barrel of Oil Equivalent" schedule)
Subtotal
Multiplied by: 2Q 2023 Crude Oil Equivalent Volumes (MMBoe)
Change in Before-Tax Net Income
Less: Income Tax Benefit (Provision) Imputed (based on 22%)
Change in Net Income
Change in Diluted Earnings per Share	0.02

All values are in US Dollars.

Adjusted Net Income Per Share(Continued)
In millions of , except share data (in millions), per share data, production volume data and per Boe data (Unaudited)
Net Cash Received from (Payments for) Settlements of Financial Commodity Derivative Contracts
2Q 2023 Net Cash Received from (Payments for) Settlement of Financial Commodity Derivative Contracts
Less: Income Tax Benefit (Provision)
After Tax - (a)
1Q 2023 Net Cash Received from (Payments for) Settlement of Financial Commodity Derivative Contracts
Less: Income Tax Benefit (Provision)
After Tax - (b)
Change in Net Income - (a) - (b)
Change in Diluted Earnings per Share	0.12
Other (1)	0.06
2Q 2023 Adjusted Net Income per Share (Non-GAAP)	2.49
2Q 2023 Average Number of Common Shares (Non-GAAP) - Diluted

All values are in US Dollars.

(1)Includes gathering, processing and marketing revenue, other revenue, exploration, dry hole, impairments and marketing costs, taxes other than income, other income (expense), interest expense and the impact of changes in the effective income tax rate.

Cash Flow from Operations and Free Cash Flow
In millions of (Unaudited)
The following tables reconcile Net Cash Provided by Operating Activities (GAAP) to Cash Flow from Operations Before Working Capital (Non-GAAP). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Changes in Components of Working Capital and Other Assets and Liabilities, Changes in Components of Working Capital Associated with Investing and Financing Activities and certain other adjustments to exclude non-recurring and certain other items as further described below. EOG defines Free Cash Flow (Non-GAAP) for a given period as Cash Flow from Operations Before Working Capital (Non-GAAP) (see below reconciliation) for such period less the total capital expenditures (Non-GAAP) during such period, as is illustrated below. EOG management uses this information for comparative purposes within the industry.
					2023
	2nd Qtr	3rd Qtr	4th Qtr	Year	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Net Cash Provided by Operating Activities (GAAP)	2,048	4,773	3,444	11,093	3,255	2,277			5,532
Adjustments:
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable	522	(392)	(661)	347	(338)	(137)			(475)
Inventories	157	140	223	534	77	226			303
Accounts Payable	(259)	88	211	(90)	77	231			308
Accrued Taxes Payable	536	53	137	113	(232)	212			(20)
Other Assets	(71)	129	93	364	(52)	(43)			(95)
Other Liabilities	(433)	(1,269)	(282)	266	(193)	47			(146)
Changes in Components of Working Capital Associated with Investing Activities	(143)	(90)	(74)	(375)	(35)	(250)			(285)
Cash Flow from Operations Before Working Capital (Non-GAAP)	2,357	3,432	3,091	12,252	2,559	2,563			5,122
Cash Flow from Operations Before Working Capital (Non-GAAP)	2,357	3,432	3,091	12,252	2,559	2,563			5,122
Less:
Total Capital Expenditures (Non-GAAP) (a)	(1,071)	(1,166)	(1,361)	(4,607)	(1,489)	(1,521)			(3,010)
Free Cash Flow (Non-GAAP)	1,286	2,266	1,730	7,645	1,070	1,042			2,112
(a) See below reconciliation of Total Expenditures (GAAP) to Total Capital Expenditures (Non-GAAP):
					2023
	2nd Qtr	3rd Qtr	4th Qtr	Year	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Total Expenditures (GAAP)	1,521	1,410	1,535	5,610	1,717	1,664			3,381
Less:
Asset Retirement Costs	(43)	(139)	(89)	(298)	(10)	(26)			(36)
Non-Cash Acquisition Costs of Unproved Properties	(21)	(28)	(20)	(127)	(31)	(28)			(59)
Non-Cash Development Drilling	—	—	—	—	—	(35)			(35)
Acquisition Costs of Proved Properties	(351)	(42)	(21)	(419)	(4)	(6)			(10)
Acquisition Costs of Other Property, Plant and Equipment	—	—	—	—	(133)	(1)			(134)
Exploration Costs	(35)	(35)	(44)	(159)	(50)	(47)			(97)
Total Capital Expenditures (Non-GAAP)	1,071	1,166	1,361	4,607	1,489	1,521			3,010

All values are in US Dollars.

Net Debt-to-Total Capitalization Ratio
In millions of , except ratio data (Unaudited)
The following tables reconcile Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation. A portion of the cash is associated with international subsidiaries; tax considerations may impact debt paydown. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt and Total Capitalization (Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation. EOG management uses this information for comparative purposes within the industry.
		March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022
Total Stockholders' Equity - (a)		25,447		24,779		23,849		22,312
Current and Long-Term Debt (GAAP) - (b)		3,820		5,078		5,084		5,091
Less: Cash		(5,018)		(5,972)		(5,272)		(3,073)
Net Debt (Non-GAAP) - (c)		(1,198)		(894)		(188)		2,018
Total Capitalization (GAAP) - (a) + (b)		29,267		29,857		28,933		27,403
Total Capitalization (Non-GAAP) - (a) + (c)		24,249		23,885		23,661		24,330
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]	%	13.1	%	17.0	%	17.6	%	18.6	%
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]	%	-4.9	%	-3.7	%	-0.8	%	8.3	%

All values are in US Dollars.