Company History
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2014

  • Since becoming the largest producer of oil in the onshore lower 48 states in 2013, EOG extended its lead and as of June 2014 was producing 19 percent more oil than its next closest competitor.
  • EOG’s momentum in the Delaware Basin in West Texas and New Mexico continued during the year. In November, EOG confirmed a highly over-pressured crude oil window on its Delaware Basin Wolfcamp acreage. Earlier in the year, EOG expanded its inventory of crude oil plays with successful drilling results in the Second Bone Spring Sand. In the Leonard Shale play, EOG achieved successful downspacing test results from wells in the same zone and in different zones.
  • In August, the board of directors increased the cash dividend on the common stock by 34 percent. Effective with the dividend payable October 31, 2014, to holders of record as of October 17, 2014, the board declared a quarterly dividend of $0.1675 per share on the common stock. The indicated annual rate of $0.67 per share represents the 16th increase in 15 years.
  • In May, EOG unveiled four crude oil and combo plays in the Rocky Mountain region with total estimated potential reserves of 400 MMboe, net to EOG. Over 700 drilling locations have been identified in these plays: the Codell and Niobrara in the DJ Basin in southern Wyoming and northern Colorado and the Parkman and Turner in the Powder River Basin in Wyoming.
  • EOG announced plans to continue its high-quality, high-return drilling program in 2014 and increased its production targets for 2014 crude oil growth. EOG is now targeting 31 percent crude oil production growth and 16.5 percent total company growth. (Production targets are based on the mid-point of full-year 2014 production estimates as of November 4, 2014.)
  • The board of directors approved a two-for-one stock split in the form of a stock dividend, paid to record holders as of March 17, 2014, and issued March 31, 2014. In addition, the board increased the cash dividend on the common stock by 33 percent. Effective with the dividend payable April 30, 2014 to holders of record as of April 16, 2014, the board declared a post-split quarterly dividend of $0.125 per share on the common stock. The post-split indicated annual rate of $0.50 per share represents the 15th increase in 15 years.
  • EOG was named to the 2014 FORTUNE “100 Best Companies to Work For” list for the eighth consecutive year.

2013

  • EOG became the largest producer of oil in the onshore lower 48 states, reaching 300 thousand barrels of oil per day of gross operated production by September 2013.
  • EOG’s portfolio of high rate-of-return drilling inventory delivered strong production and financial results in 2013. EOG grew year-over-year total company oil production 40 percent and total company production 9 percent. EOG reported year-over-year non-GAAP earnings per share(1) growth of 45 percent, discretionary cash flow(1) growth of 29 percent and adjusted EBITDAX(1) growth of 26 percent. Finally, EOG delivered return on equity of 15.6(1) percent, the highest among its large cap peers.
  • Total company proved reserves were 2,118.5 million barrels of oil equivalent at year–end, or 19 percent higher than year–end 2012. Additionally, EOG achieved 264 percent reserve replacement(1) for a low all-in finding cost(1) of $13.42 per barrel of oil equivalent.
  • During 2013, EOG’s South Texas Eagle Ford crude oil asset continued to surpass expectations. Due to ongoing refinements to completion techniques, the western acreage now mirrors the performance of EOG’s eastern acreage. With success in the West along with additional downspacing across the play, EOG again raised the estimated reserve potential(2) of the Eagle Ford 45 percent to 3.2 billion barrels of oil equivalent, net to EOG. This is the third increase in three years and is almost four times the initial reserve estimate since EOG discovered the play in 2010.
  • EOGs use of refined completion techniques in the Bakken/Three Forks in North Dakota started what the industry now refers to as Bakken’s “technical renaissance.” Throughout 2013, these refined completions dramatically improved both cumulative oil production and initial production rates on wells drilled in the Bakken Core and Antelope Extension acreage in 2013 versus 2012. In addition, based on the success of its downspacing program, EOG almost doubled its drilling inventory in the Bakken.
  • In February, EOG announced a new shale play on the Texas side of the Delaware Basin. EOG completed four horizontal Wolfcamp wells on its 134,000 net acre position. Based on the geologic characteristics of the formation, confirmed by data from over 200 previously drilled vertical wells on EOG’s acreage and the potential to drill multiple laterals, EOG estimated net potential(2) reserves of approximately 800 million barrels of oil equivalent, a mix of crude oil and liquids-rich natural gas. Total potential(2) reserves on EOG’s Delaware Basin horizontal Wolfcamp and Leonard Shale plays combined are estimated to be 1.35 billion barrels of oil equivalent, net.
  • Following an increase in the common stock dividend in 2012, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2013, to stockholders of record as of April 16, 2013, the quarterly dividend on the common stock was $0.1875 per share, an increase of 10 percent over the previous year. The annual rate of $0.75 per share was the 14th increase in 14 years.
  • EOG was named to FORTUNE’s 2013 list of “100 Best Companies to Work For” for the seventh consecutive year. EOG has made the list every year it has been eligible to apply.
Footnote
        (1)  See reconciliation schedules in press release dated February 24, 2014.
        (2)  Estimated potential reserves, not proved reserves.

2012

  • EOG reported year-over-year non-GAAP earnings per share growth of 50 percent(1) and total company organic production growth of 10 percent driven by strong performance from plays such as the South Texas Eagle Ford and North Dakota Bakken.
  • For the second time in as many years, EOG raised the estimated reserve potential(2) of its premier South Texas Eagle Ford crude oil asset from 1.6 billion barrels of oil equivalent (BnBoe) to 2.2 BnBoe, net to EOG, and increased the field’s estimated recovery factor from 6 percent to 8 percent of the 26.4 BnBoe, net to EOG, in place on EOG’s acreage. With 569,000 net acres in the Eagle Ford oil window, EOG remains the top crude oil producer in the play, ending the year with production averaging 106,000 barrels of oil equivalent per day, net.
  • As part of its strategy to be a more liquids-focused company, total company liquids production (including crude oil, condensate and natural gas liquids) increased 37 percent in 2012 compared to the previous year, driven by a 39 percent increase in crude oil and condensate production. EOG’s crude oil and condensate production in the United States increased 46 percent in 2012 compared to 2011.
  • EOG opened its St. James, La., crude-by-rail unloading terminal in April, giving it expanded access to Gulf Coast refining markets with new connections to pipelines, storage and barge facilities in the area. In July, the company also marked a milestone with the departure of its 500th crude oil unit train from its Stanley, North Dakota, rail terminal, which opened in December 2009.
  • Following its first shipment of sand in January 2012, EOG ramped up operations at its state-of-the-art Chippewa Falls, Wis., sand processing plant, which is one of the largest facilities of its kind in the country.
  • Following an increase in the common stock dividend in 2011, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2012, to stockholders of record as of April 16, 2012, the quarterly dividend on the common stock was $0.17 per share, an increase of 6.25 percent over the previous indicated annual rate. The annual rate of $0.68 per share was the 13th increase in 13 years.
  • EOG was named to FORTUNE’s 2012 list of “100 Best Companies to Work For” for the sixth consecutive year. EOG has made the list every year it has been eligible to apply.
Footnote
        (1)  See reconciliation schedules in press release dated February 13, 2013.
        (2)  Estimated potential reserves, not proved reserves.

2011

  • For the full year 2011, EOG reported net income of $1,091.1 million as compared to $160.7 million for 2010.
  • In keeping with its strategy to be more liquids-focused while capitalizing on first-mover advantages in key North American unconventional resource plays, total company liquids production increased 48 percent in 2011 compared to the previous year, driven by a 52 percent increase in crude oil and condensate production.
  • In the United States, crude oil and condensate production increased 61 percent in 2011 compared to 2010 with continued strong performance from plays such as the South Texas Eagle Ford, the Fort Worth Barnett Shale Combo, the Leonard and Wolfcamp Shales in the Permian Basin and the North Dakota Bakken.
  • EOG finished the year as the top crude oil producer in the Eagle Ford in 2011.
  • Following an increase in the common stock dividend in 2010, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 29, 2011, to holders of record as of April 15, 2011, the quarterly dividend on the common stock increased 3 percent to $0.16 per share. The annual rate of $0.64 per share reflected the 12th increase in 12 years.
  • EOG was named to FORTUNE’s 2011 list of “100 Best Companies to Work For” for the fifth consecutive year. EOG has made the list every year it has been eligible to apply.
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2010

  • For the full year 2010, EOG reported net income of $160.7 million as compared to $546.6 million for 2009. For the first year in EOG’s history, total revenues generated from crude oil, condensate and natural gas liquids production exceeded those from natural gas.
  • Continuing its transition to a more heavily weighted liquids portfolio, EOG secured a 520,000 net acre position in the mature oil window of the South Texas Eagle Ford Play that has an estimated reserve potential of 900 MMBoe, net after royalty, 77 percent of which is crude oil.
  • Development drilling activity increased in crude oil plays such as the North Dakota Bakken/Three Forks in the Williston Basin and the Fort Worth Barnett Shale Combo. Strong positions in the Leonard Shale in the Permian Basin, as well as the Denver-Julesberg Basin Horizontal Niobrara, were added to EOG’s cadre of liquids-rich assets.
  • EOG reported 9.5 percent year-over-year total company organic production growth. Total company liquids production increased 33 percent last year, driven by a 35 percent increase in crude oil and condensate production, all organic.
  • Led by exploration and development drilling in its North Dakota Bakken/Three Forks and South Texas Eagle Ford Plays, 53 percent of North American revenues came from liquids and 47 percent from natural gas. This compares to 24 percent and 76 percent, respectively, when the transition to liquids began four years ago.
  • Following an increase in the common stock dividend in 2009, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2010 to holders of record as of April 16, 2010, the quarterly dividend on the common stock was $0.155 per share, an increase of 7 percent over the previous indicated annual rate. The current indicated annual rate of $0.62 per share is the 11th increase in 11 years.
  • EOG was named to Fortune’s list of “The 100 Best Companies to Work For” in 2010 for the fourth consecutive year it has been eligible for consideration.
  • The first train to transport crude oil for EOG Resources, Inc. and its subsidiary companies arrived in Stroud, Oklahoma on January 3, 2010.

2009

  • For 2009, EOG reported net income available to common stockholders of $546.6 million as compared to $2,436.5 million for 2008.
  • EOG delivered 6.5 percent year–over–year total company organic production growth.
  • Total North American liquids production increased 30 percent, comprised of 23 percent growth in crude oil and condensate and 48 percent in natural gas liquids, driven by ongoing exploration and development drilling in the North Dakota Bakken and Fort Worth Barnett Shale Combo Plays.
  • Total company proved reserves were approximately 10.8 Tcfe, an increase of 2,087 Bcfe, or 24 percent higher than year–end 2008.
  • EOG maintained a conservative balance sheet, ending the year with a net debt–to–total capitalization ratio of 17 percent.
  • Following two increases during 2008, the EOG Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2009 to holders of record as of April 16, 2009, the quarterly dividend on the common stock was $0.145 per share, an increase of 7 percent over the previous indicated annual rate. The current indicated annual rate of $0.58 per share is the tenth increase in 10 years.
  • EOG was named to Fortune’s list of “The 100 Best Companies to Work For” in 2009 for the third consecutive year it has been eligible for consideration.
  • The first train to transport crude oil for EOG Resources, Inc. and its subsidiary companies departed Stanley, North Dakota on December 31, 2009.
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2008

  • In 2008, EOG reported net income available to common stockholders of $2,436 million as compared to $1,083 million for 2007.
  • EOG’s overall production increased 15 percent year–over–year — all organic.
  • Crude oil and condensate production increased 46 percent overall, driven primarily by continued drilling success from the North Dakota Bakken Play.
  • At December 31, 2008, total company reserves were approximately 8.7 Tcfe, an increase of 944 Bcfe, or 12 percent higher than year–end 2007.
  • EOG maintained a conservative balance sheet, ending the year with a debt–to–total capitalization ratio of 17 percent.
  • Following a 33 percent increase in the common stock dividend in February, EOG’s Board of Directors increased the cash dividend on the common stock for the second time in 2008. Effective with the dividend payable on October 31, 2008 to holders of record as of October 17, 2008, the quarterly dividend on the common stock was $0.135 per share. The indicated annual rate of $0.54 reflects a 12.5 percent increase from the previously stated rate, the ninth 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.

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 was $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 to $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.
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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.

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.
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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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