Company History

2008

• EOG increased its organic production growth estimates for 2009 and 2010 to 13 to 15 percent from the previously stated annual average of 10 percent.
• Announced crude oil discoveries in Fort Worth Barnett Shale and Colorado North Park Basins.
• EOG identified substantial natural gas potential in the British Columbia Horn River Basin.
• Reported first quarter 2008 net income available to common stockholders of $240.5 million of $0.96 per share.
• Following a 50 percent increase in 2007, the EOG Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2008 to record holders as of April 16, 2008, the quarterly dividend on the common stock will be $0.12 per share. This reflects a 33 percent increase from 2007 to an indicated annual rate of $0.48 per share, the eighth increase in nine years.
• EOG was named to FORTUNE’s list of “The 100 Best Companies to Work For” in both 2007 and 2008, the two consecutive years it has been eligible for consideration.

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2007

• In 2007, EOG reported net income available to common of $1,083 million as compared to $1,289 million for 2006.
• EOG’s overall organic year-over-year production increased 11 percent and United States natural gas production grew 19 percent. The Fort Worth Basin Barnett Shale, East Texas and Rocky Mountain areas led the production increases.
• Crude oil and condensate production grew by 11 percent over the prior year with the most significant increase recorded in the North Dakota Bakken Play. Natural gas liquids increased 31 percent over 2006 with excellent results from the Fort Worth, South Texas and Rocky Mountain operating areas.
• At December 31, 2007, total company reserves were approximately 7.7 Tcfe, an increase of 944 Bcfe, or 14 percent higher than year-end 2006. From drilling alone, EOG added 1,534 Bcfe of reserves.
• EOG maintained a conservative balance sheet, ending the year with a debt-to-total capitalization ratio of 14 percent. Recognizing the company’s strong financial position, Standard and Poor’s Credit Rating Services upgraded EOG to A–.
• Following a 50 percent increase in 2006, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2007 to record holders as of April 16, 2007, the quarterly dividend on the common stock will be $0.09 per share. This reflects a 50 percent increase from 2006 to an indicated annual rate of $0.36 per share, the seventh increase in eight years.
• EOG was named to FORTUNE’s 2007 list of “The 100 Best Companies to Work For”, the first year it was eligible for consideration.

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2006

• In 2006, EOG reported net income available to common of $1,289 million as compared to $1,252 million for 2005.
• EOG’s overall organic year-over-year production increased 9 percent and United States natural gas production grew 14 percent. The Fort Worth Basin Barnett Shale, Northeastern Utah Uinta Basin and South Texas Frio and Lobo Plays led the production increases.
• At December 31, 2006, total company reserves were approximately 6.8 Tcfe, an increase of 607 Bcfe, or 10 percent higher than year-end 2005. From drilling alone, EOG added 1,414 Bcfe of reserves.
• EOG’s results from the Fort Worth Basin Barnett Shale Play continue to exceed expectations. Production at year-end 2006 was 206 MMcfd, exceeding the original year-end goal of 155 MMcfd.
• EOG further reduced long-term debt outstanding to $733 million at December 31, 2006. EOG repurchased $47 million of preferred stock, leaving $53 million outstanding. The company’s debt-to-total capitalization ratio was 12 percent at December 31, 2006, down from 19 percent at December 31, 2005.
• Following a 33 percent increase in 2005, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 28, 2006 to record holders as of April 13, 2006, the quarterly dividend on the common stock was increased $0.06 per share. This reflects a 50 percent increase from 2005 to an indicated annual rate of $0.24 per share, the sixth increase in seven years.

2005

• For 2005, EOG reported net income available to common of $1,252 million as compared to $614 million for 2004.
• EOG’s total company production increased 16.2 percent on a daily basis in 2005 as compared to 2004. For 2006, EOG is targeting a 10.5 percent total production increase.
• At December 31, 2005, total company reserves were approximately 6.2 Tcfe, an increase of 548 Bcfe, or almost 10 percent higher than 2004. From drilling alone, EOG added 1,046 Bcfe of reserves.
• In Trinidad during 2005, EOG commenced natural gas production to supply feedstock for the M5000 Methanol Plant, which began operation in September, and Atlantic LNG Train 4, which started taking gas in December prior to plant commissioning.
• EOG reported its first full year of production in 2005 from the United Kingdom North Sea. It averaged 40 MMcfed.
• A two-for-one stock split in the form of a stock dividend, announced in February 2005, was effective March 1, 2005. EOG’s annual common stock dividend increased by 33 percent to an indicated annual rate of $0.16 per share, payable to shareholders of record at March 15, 2005, the fifth dividend increase in six years.

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2004

• For the full year 2004, EOG reported net income available to common of $614 million, compared to $419 million for 2003.
• At December 31, 2004, total company reserves were approximately 5.6 trillion cubic feet equivalent, an increase of 430 billion cubic feet equivalent (Bcfe), or 8 percent higher than 2003. From drilling alone, EOG added 850 Bcfe of reserves.
• During 2004, total company production increased 10.4 percent on a daily basis, compared to 2003.
• At year-end, EOG had approximately 400,000 acres under lease in the Texas Barnett Shale Play with net natural gas production reaching 30 MMcfd during December.
• In the United Kingdom North Sea, in the fourth quarter of 2004 and the first quarter of 2005, EOG commenced production from two Southern Gas Basin wells, EOG's first producing assets in that region.
• In Trinidad, total 2004 production increased 25 percent, compared to 2003. EOG began natural gas sales to the Nitro 2000 (N2000) Ammonia Plant in mid-2004.

2003

• EOG delivered net income available to common of $419.1 million, or $3.60 per share as compared to $76.1 million, or $0.65 per share for the full year 2002.
• At December 31, 2003, total company reserves were approximately 5.2 trillion cubic feet equivalent, an increase of 614 billion cubic feet equivalent, or 13 percent higher than 2002.
• EOG's total reserve replacement from all sources was 249 percent of production and total company all-in finding costs were $1.28 per thousand cubic feet equivalent (Mcfe). From drilling alone, EOG replaced 183 percent of production at a finding cost of $1.21 per Mcfe.
• EOG closed the largest acquisition in its history with the purchase of primarily natural gas properties in southeast Alberta, Canada for approximately US $320 million. EOG also established a new international venue in the Southern Gas Basin of the United Kingdom North Sea.
• EOG's annual common stock dividend increased by 25 percent to $0.20 per share, effective July 31, 2003, the third dividend increase in four years.
• At December 31, 2003, EOG's debt-to-total capitalization ratio was 33.3 percent, down from 40.6 percent at year-end 2002.

2002

• EOG's total reserves increased by 9 percent to approximately 4.6 trillion cubic feet equivalent.
• From all sources, EOG replaced 193 percent of production at a finding cost of $1.06 per thousand cubic feet equivalent (Mcfe). Reserve replacement in North America was 158 percent with a total all-in finding cost of $1.42, down 10 percent from 2001. From drilling alone, EOG replaced 160 percent of production at a finding cost of $1.17 per Mcfe.
• In Canada, EOG increased total Canadian production 23 percent and natural gas production 22 percent, as compared to 2001.
• In Trinidad, EOG announced the Parula natural gas discovery, added two new offshore exploration blocks, successfully started up the CNC Ammonia Plant and signed a 25-year extension on the offshore SECC Block.
• For the eighth consecutive year, EOG reduced the number of shares outstanding. After repurchasing 0.7 million shares of common stock, net of option exercises, stock plans and other increases, EOG had 114.4 million basic shares outstanding at December 31.

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2001

• EOG reported record net income available to common of $387.6 million, or $3.30 per share.
• Return on common shareholders' equity was 28.4 percent for the year. For the five-year period, 1997-2001, the average return was 25.5 percent.
• EOG replaced 201 percent of production from all sources at a finding cost of $1.36 per Mcfe.
• Reserves increased by 11 percent to 4,229 billion cubic feet equivalent (Bcfe).
• For the seventh consecutive year, EOG reduced the number of its basic shares outstanding to 115.1 million.
• EOG's debt to total capitalization ratio, one of the lowest in the industry, improved to 34 percent.
• The common stock dividend increased by $.02 to $.16 per share.

2000

• EOG's stock appreciated 211 percent, more than tripling in price. EOG was ranked as the third best performer in Standard and Poor's 500 Index.
• EOG was the second most active driller in the US.
• On a per share basis, compared to as-adjusted 1999, EOG's total production increased 8.9 percent. Production in North America increased 8 percent.
• The annual common stock dividend increased from $.12 per share to $.14 per share.
• Standard & Poor's 500 Index added EOG to its oil and gas industry group after the close of trading on November 1, 2000.
• EOG opened its ninth division office in Pittsburgh, Pennsylvania to focus on opportunities in the Appalachian Basin.
• EOG and Calpine Corporation signed the first of its kind one-year marketing agreement that linked the daily price of natural gas to the price of electricity.
• EOG signed a 15-year natural gas supply contract for approximately 60 MMcf/d with the National Gas Company of Trinidad and Tobago Limited (NGC) to supply an ammonia plant from the U(a) block.

1999

• EOG Resources, Inc. (EOG), formerly Enron Oil & Gas Company, adopted a new name and declared its independence from Enron Corp. Simultaneously, Chairman and Chief Executive Officer Forrest E. Hoglund retired, Mark G. Papa was elected Chairman and Chief Executive Officer and Edmund P. Segner was named President and Chief of Staff of EOG.

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