Our Commitment to the World Around Us

ur employees share the responsibility for EOG's commitment to excellence in health, safety and the environment. We have voluntarily adopted the member ethics of the Domestic Petroleum Council devoted to protecting land, air and water and have an outstanding operations safety record.
    We continually seek ways to enhance the safety of our operations such as implementing a program to pinpoint the exact routes of our underground natural gas flow lines using global positioning satellite technology. Also, EOG annually recognizes noteworthy accomplishments of our employees with regard to environmental, health and safety practices. Last year this included an Oklahoma City team, which created an innovative spill-free system on a waterflood project that is increasing oil recovery from a mature reservoir.
    EOG employees regularly provide leadership on the front lines of the communities in which they live and work. For example, for the fifth consecutive year, Houston employees donated gifts during the holiday season for children in crisis at Casa de Esperanza. EOG is a corporate sponsor of the Cactus & Crude MS 150 Bike Tour in Midland, and our employees are very involved in the March of Dimes WalkAmerica fundraising event in Corpus Christi. Across our operations, numerous other instances demonstrate our employees' respect and care for their neighbors and communities.

Looking Ahead

ith the election of W. D. (Bill) Stevens and H. Leighton Steward to the EOG Board of Directors last year, EOG added two more experts from the exploration and production industry to oversee its activities. Bill Stevens, who has had a long career in the energy industry, most recently was president and chief operating officer of Mitchell Energy and Development Corporation. Another industry leader for decades, Leighton Steward served as vice chairman of Burlington Resources until his retirement.
    Based on the strength of EOG's performance to date, we believe we have the employees, the assets and the game plan to steadily post superior shareholder returns for another five-year period and beyond. To reach our goal, we'll continue to focus on our long-term strategy that emphasizes financial returns, a strong balance sheet and organic production growth with a high reinvestment rate of return. We will rely on the proven performance of our operations in the United States, Canada and Trinidad, augmented by the new Texas Barnett Shale and North Sea discoveries, as we add other new plays to our portfolio. In all aspects of our business, we will strive for consistency because that is the foundation that underlies EOG.

Mark G. Papa
Chairman and Chief Executive Officer

Edmund P. Segner, III
President and Chief of Staff

February 24, 2005

⁽¹⁾ Refer to reconciliation schedule on page 55.

continued