Eog Resources Inc 10-Q for FY2023 Q1

Eog Resources Inc (EOG)

10-Q 2023-05-04 For: 2023-03-31

Added on April 09, 2026

About this 10-Q

Eog Resources Inc filed this 10-Q on May 4, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $6.04B; up 51.7% from $3.98B a year earlier
Net income: $2.02B; up 418.7% from net income of $390M a year earlier
Diluted EPS: $3.45; up 414.9% from $0.67 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware						47-0684736
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


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


Title of each class	Number of shares
Common Stock, par value $0.01 per share	584,858,641	(as of April 27, 2023)


PART I.	FINANCIAL INFORMATION		Page No.

	ITEM 1.	Financial Statements (Unaudited)

		Condensed Consolidated Statements of Income and Comprehensive Income - Three Months Ended March 31, 2023 and 2022	3

		Condensed Consolidated Balance Sheets - March 31, 2023 and December 31, 2022	4

		Condensed Consolidated Statements of Stockholders' Equity - Three Months Ended March 31, 2023 and 2022	5

		Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2023 and 2022	6

		Notes to Condensed Consolidated Financial Statements	7

	ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20

	ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	36

	ITEM 4.	Controls and Procedures	36

PART II.	OTHER INFORMATION

	ITEM 1.	Legal Proceedings	37

	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37

	ITEM 6.	Exhibits	38

SIGNATURES			40


	Three Months Ended March 31,
	2023		2022
Operating Revenues and Other
Crude Oil and Condensate	$	3,182	$	3,889
Natural Gas Liquids	490		681
Natural Gas	517		716
Gains (Losses) on Mark-to-Market Financial Commodity Derivative Contracts	376		(2,820)
Gathering, Processing and Marketing	1,390		1,469
Gains on Asset Dispositions, Net	69		25
Other, Net	20		23
Total	6,044		3,983
Operating Expenses
Lease and Well	359		318
Transportation Costs	236		228
Gathering and Processing Costs	159		144
Exploration Costs	50		45
Dry Hole Costs	1		3
Impairments	34		55
Marketing Costs	1,361		1,283
Depreciation, Depletion and Amortization	798		847
General and Administrative	145		124
Taxes Other Than Income	329		390
Total	3,472		3,437
Operating Income	2,572		546
Other Income (Expense), Net	65		(1)
Income Before Interest Expense and Income Taxes	2,637		545
Interest Expense, Net	42		48
Income Before Income Taxes	2,595		497
Income Tax Provision	572		107
Net Income	$	2,023	$	390
Net Income Per Share
Basic	$	3.46	$	0.67
Diluted	$	3.45	$	0.67
Average Number of Common Shares
Basic	584		582
Diluted	587		586
Comprehensive Income
Net Income	$	2,023	$	390
Other Comprehensive Loss
Foreign Currency Translation Adjustments	—		(1)
Other, Net of Tax	—		—
Other Comprehensive Loss	—		(1)
Comprehensive Income	$	2,023	$	389


	March 31, 2023		December 31, 2022
ASSETS
Current Assets
Cash and Cash Equivalents	$	5,018	$	5,972
Accounts Receivable, Net	2,455		2,774
Inventories	1,131		1,058
Income Taxes Receivable	—		97
Other	580		574
Total	9,184		10,475
Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method)	67,907		67,322
Other Property, Plant and Equipment	5,101		4,786
Total Property, Plant and Equipment	73,008		72,108
Less: Accumulated Depreciation, Depletion and Amortization	(42,785)		(42,679)
Total Property, Plant and Equipment, Net	30,223		29,429
Deferred Income Taxes	31		33
Other Assets	1,587		1,434
Total Assets	$	41,025	$	41,371
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable	$	2,438	$	2,532
Accrued Taxes Payable	637		405
Dividends Payable	482		482
Liabilities from Price Risk Management Activities	31		169
Current Portion of Long-Term Debt	33		1,283
Current Portion of Operating Lease Liabilities	354		296
Other	253		346
Total	4,228		5,513

Long-Term Debt	3,787		3,795
Other Liabilities	2,620		2,574
Deferred Income Taxes	4,943		4,710
Commitments and Contingencies (Note 8)

Stockholders' Equity
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 588,534,131 Shares Issued at March 31, 2023 and 588,396,757 Shares Issued at December 31, 2022	206		206
Additional Paid in Capital	6,219		6,187
Accumulated Other Comprehensive Loss	(8)		(8)
Retained Earnings	19,423		18,472
Common Stock Held in Treasury, 3,694,718 Shares at March 31, 2023 and 700,281 Shares at December 31, 2022	(393)		(78)
Total Stockholders' Equity	25,447		24,779
Total Liabilities and Stockholders' Equity	$	41,025	$	41,371


	Common Stock		Additional Paid In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Common Stock Held In Treasury		Total Stockholders' Equity
Balance at December 31, 2022	$	206	$	6,187	$	(8)	$	18,472	$	(78)	$	24,779
Net Income	—		—		—		2,023		—		2,023
Common Stock Dividends Declared, $1.825 Per Share	—		—		—		(1,072)		—		(1,072)
Other Comprehensive Loss	—		—		—		—		—		—
Common Stock Issued Under Stock Plans	—		—		—		—		—		—
Restricted Stock and Restricted Stock Units, Net	—		1		—		—		(1)		—
Stock-Based Compensation Expenses	—		34		—		—		—		34
Treasury Stock Repurchased	—		—		—		—		(310)		(310)
Change in Treasury Stock - Stock Compensation Plans, Net	—		(3)		—		—		(4)		(7)
Balance at March 31, 2023	$	206	$	6,219	$	(8)	$	19,423	$	(393)	$	25,447


	Stock Options/SARs			ESPP
	Three Months Ended March 31,			Three Months Ended March 31,
	2022			2023			2022
Weighted Average Fair Value of Grants	$	28.30		$	32.31		$	23.07
Expected Volatility	42.20		%	42.97		%	39.72		%
Risk-Free Interest Rate	0.89		%	4.66		%	0.22		%
Dividend Yield	3.28		%	2.47		%	3.32		%
Expected Life	5.3 years			0.5 years			0.5 years


	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
	Number of Stock Options/SARs	Weighted Average Exercise Price		Number of Stock Options/SARs	Weighted Average Exercise Price
Outstanding at January 1	4,225	$	77.49	9,969	$	84.37
Granted	—	—		2	97.64
Exercised (1)	(175)	77.08		(2,324)	84.63
Forfeited	(31)	79.83		(81)	85.86
Outstanding at March 31 (2)	4,019	$	77.49	7,566	$	84.28
Vested or Expected to Vest (3)	3,875	$	77.86	7,256	$	85.05
Exercisable at March 31 (4)	2,294	$	84.89	3,886	$	101.26


	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
	Number of Shares and Units	Weighted Average Grant Date Fair Value		Number of Shares and Units	Weighted Average Grant Date Fair Value
Outstanding at January 1	4,113	$	80.77	4,680	$	69.37
Granted	36	122.34		14	110.66
Released (1)	(38)	55.23		(699)	93.37
Forfeited	(42)	84.23		(51)	66.77
Outstanding at March 31 (2)	4,069	$	81.33	3,944	$	65.30


	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
	Number of Units		Weighted Average Grant Date Fair Value		Number of Units	Weighted Average Grant Date Fair Value
Outstanding at January 1	688		$	83.82	679	$	84.97
Granted	—		—		—	—
Released (1)	(86)		79.98		(57)	136.74
Forfeited for Performance Multiple (2)	(86)		79.98		(56)	136.74
Outstanding at March 31 (3)	516	(4)	$	85.10	566	$	74.60


	At March 31, 2023		At December 31, 2022
Total Assets
United States	$	39,955	$	40,349
Trinidad	945		879
Other International (1)	125		143
Total	$	41,025	$	41,371


	Three Months Ended March 31, 2023
Balance at January 1	$	15
Additions Pending the Determination of Proved Reserves	4
Reclassifications to Proved Properties	(5)
Costs Charged to Expense	—
Balance at March 31	$	14


	Three Months Ended March 31, 2023
Capitalized exploratory well costs that have been capitalized for a period of one year or less	$	13
Capitalized exploratory well costs that have been capitalized for a period greater than one year (1)	1
Balance at March 31	$	14

Number of exploratory wells that have been capitalized for a period greater than one year	1


	Fair Value Measurements Using:
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
At March 31, 2023
Financial Assets:
Natural Gas Swaps	$	—	$	21	$	—	$	21
Natural Gas Basis Swaps	—		12		—		12
Financial Liabilities:
Crude Oil Swaps	—		49		—		49
Natural Gas Swaps	—		391		—		391

At December 31, 2022
Financial Assets:
Natural Gas Basis Swaps	$	—	$	29	$	—	$	29
Financial Liabilities:
Natural Gas Swaps	—		703		—		703
Crude Oil Swaps	—		190		—		190



FORM			10-Q


	Three Months Ended March 31,
	2023		2022
Carrying Amount at January 1	$	1,328	$	1,231
Liabilities Incurred	6		20
Liabilities Settled (1)	(30)		(131)
Accretion	13		11
Revisions	1		2
Carrying Amount at March 31	$	1,318	$	1,133

Current Portion	$	39	$	41
Noncurrent Portion	$	1,279	$	1,092


Crude Oil Financial Price Swap Contracts
		Contracts Sold			Contracts Purchased
Period	Settlement Index	Volume (MBbld)	Weighted Average Price ($/Bbl)		Volume (MBbld)	Weighted Average Price ($/Bbl)

January - March 2023 (closed)	New York Mercantile Exchange (NYMEX) West Texas Intermediate (WTI)	95	$	67.90	6	$	102.26
April - May 2023	NYMEX WTI	91	67.63		2	98.15
June 2023	NYMEX WTI	2	69.10		2	98.15


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Value of Shares Purchased as Part of Publicly Announced Plans or Programs (2)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)


January 1, 2023 - January 31, 2023	11,621	$	130.57	$	—	$	5,000,000,000
February 1, 2023 - February 28, 2023	32,989	114.40		—		$	5,000,000,000
March 1, 2023 - March 31, 2023	2,956,488	105.50		310,256,971		$	4,689,743,029
Total	3,001,098	105.70		310,256,971


Exhibit No.		Description

3.1(a)	-	Restated Certificate of Incorporation, dated September 3, 1987 (incorporated by reference to Exhibit 3.1(a) to EOG's Annual Report on Form 10-K for the year ended December 31, 2008) (SEC File No. 001-09743).

3.1(b)	-	Certificate of Amendment of Restated Certificate of Incorporation, dated May 5, 1993 (incorporated by reference to Exhibit 4.1(b) to EOG's Registration Statement on Form S-8, SEC File No. 33-52201, filed February 8, 1994).

3.1(c)	-	Certificate of Amendment of Restated Certificate of Incorporation, dated June 14, 1994 (incorporated by reference to Exhibit 4.1(c) to EOG's Registration Statement on Form S-8, SEC File No. 33-58103, filed March 15, 1995).

3.1(d)	-	Certificate of Amendment of Restated Certificate of Incorporation, dated June 11, 1996 (incorporated by reference to Exhibit 3(d) to EOG's Registration Statement on Form S-3, SEC File No. 333-09919, filed August 9, 1996).

3.1(e)	-	Certificate of Amendment of Restated Certificate of Incorporation, dated May 7, 1997 (incorporated by reference to Exhibit 3(e) to EOG's Registration Statement on Form S-3, SEC File No. 333-44785, filed January 23, 1998).

3.1(f)	-	Certificate of Ownership and Merger Merging EOG Resources, Inc. into Enron Oil & Gas Company, dated August 26, 1999 (incorporated by reference to Exhibit 3.1(f) to EOG's Annual Report on Form 10-K for the year ended December 31, 1999) (SEC File No. 001-09743).

3.1(g)	-	Certificate of Designations of Series E Junior Participating Preferred Stock, dated February 14, 2000 (incorporated by reference to Exhibit 2 to EOG's Registration Statement on Form 8-A, SEC File No. 001-09743, filed February 18, 2000).

3.1(h)	-	Certificate of Elimination of the Fixed Rate Cumulative Perpetual Senior Preferred Stock, Series A, dated September 13, 2000 (incorporated by reference to Exhibit 3.1(j) to EOG's Registration Statement on Form S-3, SEC File No. 333-46858, filed September 28, 2000).

3.1(i)	-	Certificate of Elimination of the Flexible Money Market Cumulative Preferred Stock, Series C, dated September 13, 2000 (incorporated by reference to Exhibit 3.1(k) to EOG's Registration Statement on Form S-3, SEC File No. 333-46858, filed September 28, 2000).

3.1(j)	-	Certificate of Elimination of the Flexible Money Market Cumulative Preferred Stock, Series D, dated February 24, 2005 (incorporated by reference to Exhibit 3.1(k) to EOG's Annual Report on Form 10-K for the year ended December 31, 2004) (SEC File No. 001-09743).

3.1(k)	-	Amended Certificate of Designations of Series E Junior Participating Preferred Stock, dated March 7, 2005 (incorporated by reference to Exhibit 3.1(m) to EOG's Annual Report on Form 10-K for the year ended December 31, 2007) (SEC File No. 001-09743).

3.1(l)	-	Certificate of Amendment of Restated Certificate of Incorporation, dated May 3, 2005 (incorporated by reference to Exhibit 3.1(l) to EOG's Quarterly Report on Form 10-Q for the quarter ended June 30, 2005) (SEC File No. 001-09743).

3.1(m)	-	Certificate of Elimination of Fixed Rate Cumulative Perpetual Senior Preferred Stock, Series B, dated March 6, 2008 (incorporated by reference to Exhibit 3.1 to EOG's Current Report on Form 8-K, filed March 6, 2008) (SEC File No. 001-09743).

3.1(n)	-	Certificate of Amendment of Restated Certificate of Incorporation, dated April 28, 2017 (incorporated by reference to Exhibit 3.1 to EOG's Current Report on Form 8-K, filed May 2, 2017) (SEC File No. 001-09743).

3.2(a)	-	Bylaws, dated August 23, 1989, as amended and restated effective as of September 22, 2015 (incorporated by reference to Exhibit 3.1 to EOG's Current Report on Form 8-K, filed September 28, 2015) (SEC File No. 001-09743).
3.2(b)	-	Bylaws, dated August 23, 1989, as amended and restated effective as of February 23, 2023 (incorporated by reference to Exhibit 3.2(b) to EOG's Annual Report on Form 10-K for the year ended December 31, 2022) (SEC File No. 001-09743).


Exhibit No.		Description

31.1	-	Section 302 Certification of Periodic Report of Principal Executive Officer.

31.2	-	Section 302 Certification of Periodic Report of Principal Financial Officer.

32.1	-	Section 906 Certification of Periodic Report of Principal Executive Officer.

32.2	-	Section 906 Certification of Periodic Report of Principal Financial Officer.

101.INS	-	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

*101.SCH	-	Inline XBRL Schema Document.

*101.CAL	-	Inline XBRL Calculation Linkbase Document.

*101.DEF	-	Inline XBRL Definition Linkbase Document.

*101.LAB	-	Inline XBRL Label Linkbase Document.

*101.PRE	-	Inline XBRL Presentation Linkbase Document.

104	-	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


			EOG RESOURCES, INC.
			(Registrant)



Date:	May 4, 2023	By:	/s/ TIMOTHY K. DRIGGERS Timothy K. Driggers Executive Vice President and Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer)