HOUSTON, May 6, 2021 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported first quarter 2021 results. The attached supplemental financial tables and schedules for the reconciliation of non-GAAP measures to GAAP measures and related definitions, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors.

Key Financial Results

In millions of USD, except per-share and ratio data

		1Q 2021	4Q 2020	1Q 2020
	Total Revenue	3,694	2,965	4,718
	Net Income	677	337	10
	Net Income Per Share	1.16	0.58	0.02
GAAP	Net Cash Provided by Operating Activities	1,870	1,121	2,585
GAAP	Total Expenditures	1,067	1,107	1,826
	Current and Long-Term Debt	5,133	5,816	5,222
	Cash and Cash Equivalents	3,388	3,329	2,907
	Debt-to-Total Capitalization	19.8%	22.3%	19.6%

	Adjusted Net Income	946	411	318
	Adjusted Net Income Per Share	1.62	0.71	0.55
	Discretionary Cash Flow	2,010	1,494	1,666
Non- GAAP	Cash Capital Expenditures before Acquisitions	945	828	1,685
	Free Cash Flow	1,065	666	(19)
	Net Debt	1,745	2,487	2,315
	Net Debt-to-Total Capitalization	7.8%	10.9%	9.7%

First Quarter 2021 Highlights

Declared special dividend of $1.00 per share and regular quarterly dividend of $0.4125 per share, an indicated annual total cash return to shareholders of $1.5 billion
Earned an adjusted $1.62 per share, second-highest quarterly EPS in EOG history
Generated $1.1 billion of free cash flow, a quarterly record
Capital expenditures 6% below guidance midpoint driven by sustainable efficiency improvements
Oil production above high-end of guidance range
Made significant progress toward 5% well cost reduction goal in 2021
Reached agreement to divest China assets

Volumes and Capital Expenditures

Wellhead Volumes	1Q 2021	1Q 2021 Guidance Midpoint	4Q 2020	1Q 2020
Crude Oil and Condensate (MBod)	431.0	425.1	444.8	483.3
Natural Gas Liquids (MBbld)	124.3	130.0	141.4	161.3
Natural Gas (MMcfd)	1,342	1,360	1,292	1,378
Total Crude Oil Equivalent (MBoed)	778.9	781.8	801.5	874.1

Cash Capital Expenditures before Acquisitions ($MM)	945	1,000	828	1,685

From William R. "Bill" Thomas, Chairman and Chief Executive Officer

"Our outstanding first quarter results and special dividend announcement reflect the power of EOG's returns-focused strategy. True to the EOG culture, our employees have embraced the higher hurdle rate with the shift to double-premium, which drove record returns in the first quarter. EOG continues to deliver sustainable improvements in operating performance, once again exceeding expectations.

"Our robust operating performance translates into financial results that allow us to deliver on our cash flow priorities. Earlier this year we raised the regular dividend and reduced debt outstanding. Our long-standing financial discipline now positions EOG to return additional cash to shareholders through a special dividend, bringing total expected return of cash to shareholders in 2021 to $1.5 billion.

"EOG is off to a great start in 2021 and I am confident that we will continue to get better going forward."

First Quarter 2021 Financial Performance

Adjusted Earnings per Share 1Q 2021 vs 4Q 2020

Prices and Hedges

Higher prices for crude oil, natural gas and natural gas liquids all contributed to higher earnings. Average crude oil prices increased to $58.02 per barrel in the 1Q from $41.81 per barrel in the 4Q, contributing about 60% of the $1.40 earnings per share increase attributable to higher prices. EOG also realized higher prices for a portion of natural gas sold on a spot basis during periods of strong demand related to winter storms and for natural gas sold at prices tied to LNG export markets. Price gains were partially offset by a decrease in hedge settlement value, to $30 million cash paid in 1Q from $72 million cash received in 4Q.

Volume

Overcoming downtime from Winter Storm Uri, which reduced 1Q production by approximately 3%, total company crude oil production of 431,000 Bopd was above the high end of the guidance range and just 3% lower than 4Q. NGL production was 12% lower, partially offset by a 4% increase in natural gas production, driven by the market-based decision to reduce ethane extraction. Total company equivalent volumes decreased 3%.

Per-Unit Costs

Total per-unit costs in 1Q were slightly above the mid-point of the guidance range, due to higher prices for fuel and power during the winter storm. Compared with 4Q, higher taxes other than income related to increased product prices accounted for about half the increase in per-unit costs. Higher fuel and power, DD&A and production-related costs also contributed to the increase.

Change in Cash 1Q 2021 vs 4Q 2020

Free Cash Flow

EOG generated discretionary cash flow (net cash provided by operating activities before exploration expense and changes in working capital) of $2.0 billion in 1Q. The company incurred $945 million of cash capital expenditures before acquisitions, resulting in $1.1 billion of free cash flow.

Capital Expenditures

Cash capital expenditures before acquisitions were below the midpoint of the guidance range due to lower well costs from sustainable efficiency improvements. Faster drilling times, more efficient completion operations and lower-cost sand and water sourcing contributed to lower overall well costs. EOG is well on track to meet or exceed its 5% well cost reduction goal for 2021.

Debt

On February 1, 2021, EOG repaid, with cash on hand, the $750 million aggregate principal amount of its 4.100% Senior Notes due 2021 that matured on that date.

First Quarter 2021 Operating Performance

Lease and Well

Per-unit LOE costs declined 7% compared with the prior‐year period due to lower water handling costs, workover costs and overall efficiency improvements. Per-unit LOE also was $0.10 below the 1Q 2021 guidance midpoint. Compared with the 4Q 2020, per-unit LOE costs increased slightly due to higher fuel and power prices during the winter storm and seasonal factors.

Transportation, Gathering and Processing

Per-unit transportation costs increased in 1Q as EOG expanded its transportation and storage capacity to provide greater flexibility and support higher price realizations. Higher fuel and power prices during the winter storm also contributed to increased transportation and gathering and processing costs.

General and Administrative

G&A costs on a per-unit basis were in-line with the 4Q 2020 and slightly below the guidance midpoint.

Depreciation, Depletion and Amortization

Per-unit DD&A costs in the 1Q were in-line with the target, which was higher compared with the 4Q due to negative price- related reserve revisions.

Special Dividend and China Divestiture

Declared $1.00 per Share Special Dividend

The Board of Directors declared a regular dividend of $0.4125 per share on EOG's Common Stock. The indicated annual rate is $1.65. The Board also declared a special dividend of $1.00 per share on EOG's Common Stock. Both dividends are payable July 30, 2021 to stockholders of record as of July 16, 2021.

China Divestiture

EOG reached an agreement to divest all of its assets in China for proceeds of approximately $140 million. Closing, subject to customary conditions, is expected in the second quarter of 2021. Current net production from the divested assets is approximately 25 MMcfd of natural gas.

First Quarter 2021 Results vs Guidance




Crude Oil and Condensate (MBod)	1Q 2021	1Q 2021 Guidance Midpoint	Variance	4Q 2020	3Q 2020	2Q 2020	1Q 2020
United States	428.7	423.0	5.7	442.4	376.6	330.9	482.7
Trinidad	2.2	2.0	0.2	2.3	1.0	0.1	0.5
Other International	0.1	0.1	0.0	0.1	0.0	0.1	0.1
Total	431.0	425.1	5.9	444.8	377.6	331.1	483.3
NGLs (MBbld)
Total	124.3	130.0	(5.7)	141.4	140.1	101.2	161.3
Natural Gas (MMcfd)
United States	1,100	1,125	(25)	1,075	1,008	939	1,139
Trinidad	217	215	2	192	151	174	201
Other International	25	20	5	25	31	34	38
Total	1,342	1,360	(18)	1,292	1,190	1,147	1,378

Total Crude Oil Equivalent Volumes (MBoed)	778.9	781.8	(2.9)	801.5	716.0	623.4	874.1
Total MMBoe	70.1	70.4	0.3	73.7	65.9	56.7	79.5

Capital Expenditures ($MM)	945	1,000	(55)	828	499	478	1,685

Benchmark Price
Oil (WTI) ($/Bbl)	57.80			42.67	40.94	27.85	46.08
Natural Gas (HH) ($/Mcf)	2.69			2.65	1.94	1.73	1.98

Crude Oil and Condensate ($/Bbl) - above (below) WTI
United States	0.27	0.20	0.07	(0.81)	(0.75)	(7.45)	0.89
Trinidad	(8.03)	(10.50)	2.47	(9.76)	(15.53)	(27.25)	(11.15)
Other International	(19.19)	(18.00)	(1.19)	(6.77)	(15.65)	20.93	11.43

NGLs - Realizations (% of WTI)	48.5%	49.0%	(0.5%)	41.1%	35.0%	36.6%	23.7%

Nat Gas ($/Mcf) - above (below) HH
United States	2.83	3.00	(0.17)	(0.36)	(0.45)	(0.62)	(0.48)
Natural Gas Realizations ($/Mcf)
Trinidad	3.38	3.35	0.03	3.57	2.35	2.13	2.17
Other International	5.66	5.70	(0.04)	5.47	4.73	4.36	4.32

Unit Costs ($/Boe)
Lease and Well	3.85	3.95	(0.10)	3.54	3.45	4.32	4.14
Transportation Costs	2.88	2.80	0.08	2.64	2.74	2.67	2.62
General and Administrative	1.57	1.65	(0.08)	1.54	1.89	2.32	1.44
Gathering and Processing	1.98	1.80	0.18	1.62	1.74	1.71	1.62
Cash Operating Costs	10.28	10.20	0.08	9.34	9.82	11.02	9.82
Depreciation, Depletion and Amortization	12.84	12.85	(0.01)	11.81	12.49	12.46	12.57

Expenses ($MM)
Exploration and Dry Hole	44	40	4	40	51	27	40
Impairment (GAAP)	44			143	79	305	1,573
Impairment (excluding certain impairments (non-GAAP))	43	70	(27)	57	52	66	57
Capitalized Interest	8	8	0	7	7	8	9
Net Interest	47	48	(1)	53	53	54	45

Taxes Other Than Income (% of Wellhead Revenue)	6.7%	7.0%	(0.3%)	5.1%	7.2%	9.4%	6.5%
Income Taxes
Effective Rate	23.2%	23.5%	(0.3%)	21.1%	19.2%	20.6%	68.4%
Deferred Ratio	(18%)	0%	(18%)	60%	330%	107%	743%

Second Quarter and Full-Year 2021 Guidance¹


(Unaudited)

*See "Endnotes" below for related discussion and definitions.*	2Q 2021 Guidance Range			FY 2021 Guidance Range			2020 Actual	2019 Actual
Crude Oil and Condensate Volumes (MBod)
United States	436.0	-	446.0	433.0	-	444.0	408.1	455.5
Trinidad	1.5	-	2.3	1.0	-	1.8	1.0	0.6
Other International	0.0	-	0.2	0.0	-	0.2	0.1	0.1
Total	437.5	-	448.5	434.0	-	446.0	409.2	456.2
Natural Gas Liquids Volumes (MBbld)
Total	125.0	-	140.0	125.0	-	145.0	136.0	134.1
Natural Gas Volumes (MMcfd)
United States	1,110	-	1,210	1,110	-	1,210	1,040	1,069
Trinidad	195	-	225	180	-	220	180	260
Other International	10	-	22	5	-	15	32	37
Total	1,315	-	1,457	1,295	-	1,445	1,252	1,366
Crude Oil Equivalent Volumes (MBoed)
United States	746.0	-	787.7	743.0	-	790.7	717.5	767.8
Trinidad	34.0	-	39.8	31.0	-	38.5	30.9	44.0
Other International	1.7	-	3.9	0.8	-	2.7	5.4	6.2
Total	781.7	-	831.4	774.8	-	831.9	753.8	818.0

Benchmark Price
Oil (WTI) ($/Bbl)							39.40	57.04
Natural Gas (HH) ($/Mcf)							2.08	2.62

Crude Oil and Condensate Differentials - above (below) WTI2 ($/Bbl)
United States	(0.25)	-	0.75	(0.55)	-	1.45	(0.75)	0.70
Trinidad	(12.50)	-	(10.50)	(12.40)	-	(10.40)	(9.20)	(9.88)
Other International	(10.50)	-	(6.50)	(16.20)	-	(13.20)	3.68	0.36
Natural Gas Liquids - Realizations as % of WTI
Total	35%	-	45%	36%	-	48%	34.0%	28.1%
Natural Gas Differentials - above (below) NYMEX Henry Hub3 ($/Mcf)
United States	(0.40)	-	0.00	(0.25)	-	1.25	(0.47)	(0.40)
Natural Gas Realizations ($/Mcf)
Trinidad	3.10	-	3.60	3.10	-	3.60	2.57	2.72
Other International	5.40	-	5.90	5.20	-	6.20	4.66	4.44

Capital Expenditures4 ($MM)	1,000	-	1,200	3,700	-	4,100	3,490	6,234

Operating Unit Costs ($/Boe)
Lease and Well	3.45	-	4.15	3.50	-	4.20	3.85	4.58
Transport Costs	2.60	-	3.00	2.65	-	3.05	2.66	2.54
General and Administrative	1.50	-	1.60	1.50	-	1.60	1.75	1.64
Gathering and Processing	1.75	-	1.95	1.75	-	1.95	1.66	1.60
Cash Operating Costs	9.30	-	10.70	9.40	-	10.80	9.92	10.36
Depreciation, Depletion and Amortization	12.00	-	12.60	11.70	-	12.70	12.32	12.56

Expenses ($MM)
Exploration and Dry Hole	40	-	50	140	-	180	159	168
Impairment (GAAP)							2,100	518
Impairment (excluding certain impairments (non-GAAP))	45	-	95	255	-	295	232	243
Capitalized Interest	5	-	10	25	-	30	31	38
Net Interest	45	-	50	180	-	185	205	185

Taxes Other Than Income (% of Wellhead Revenue)	6.0%	-	8.0%	6.5%	-	7.5%	6.6%	6.9%
Income Taxes
Effective Rate	20%	-	25%	21%	-	26%	18.2%	22.9%
Deferred Ratio	0%	-	15%	0%	-	15%	54.8%	107.4%

First Quarter 2021 Results Webcast

Friday, May 7, 2021, 9:00 a.m. Central time (10:00 a.m. Eastern time)

Webcast will be available on EOG's website for one year.

http://investors.eogresources.com/Investors

About EOG

EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States, Trinidad, and China. To learn more visit www.eogresources.com.

Investor Contacts

David Streit 713‐571‐4902

Neel Panchal 713‐571‐4884

Media and Investor Contact

Kimberly Ehmer 713‐571‐4676

Endnotes
1)	The forecast items for the second quarter and full year 2021 set forth above for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of the accompanying press release. EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. This forecast, which should be read in conjunction with the accompanying press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.

2)	EOG bases United States and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.

3)	EOG bases United States natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.

4)	The forecast includes expenditures for Exploration and Development Drilling, Facilities, Leasehold Acquisitions, Capitalized Interest, Exploration Costs, Dry Hole Costs and Other Property, Plant and Equipment. The forecast excludes Property Acquisitions, Asset Retirement Costs and any Non-Cash Transactions.

Glossary
Acq	Acquisitions
ATROR	After-tax rate of return
Bbl	Barrel
Bn	Billion
Boe	Barrels of oil equivalent
Bopd	Barrels of oil per day
Capex	Capital expenditures
CO2e	Carbon dioxide equivalent
DCF	Discretionary cash flow
DD&A	Depreciation, Depletion and Amortization
Disc	Discoveries
Divest	Divestitures
EPS	Earnings per share
Ext	Extensions
G&A	General and administrative expense
G&P	Gathering and processing expense
GHG	Greenhouse gas
HH	Henry Hub
LOE	Lease operating expense, or lease and well expense
MBbld	Thousand barrels of liquids per day
MBod	Thousand barrels of oil per day
MBoe	Thousand barrels of oil equivalent
MBoed	Thousand barrels of oil equivalent per day
Mcf	Thousand cubic feet of natural gas
MMBoe	Million barrels of oil equivalent
MMcfd	Million cubic feet of natural gas per day
NGLs	Natural gas liquids
OTP	Other than price
NYMEX	U.S. New York Mercantile Exchange
QoQ	Quarter over quarter
Trans	Transportation expense
USD	United States dollar
WTI	West Texas Intermediate
YoY	Year over year
$MM	Million United States dollars
$/Bbl	U.S. Dollars per barrel
$/Boe	U.S. Dollars per barrel of oil equivalent
$/Mcf	U.S. Dollars per thousand cubic feet

This press release may include forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward‐looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward‐looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet goals or ambitions with respect to emissions, other environmental matters, safety matters or other ESG (environmental/social/governance) matters, or pay and/or increase dividends are forward‐looking statements. Forward‐looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward‐looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG's forward‐looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Furthermore, this press release and any accompanying disclosures may include or reference certain forward‐looking, non‐GAAP financial measures, such as free cash flow or discretionary cash flow, and certain related estimates regarding future performance, results and financial position. Because we provide these measures on a forward‐looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward‐looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, we are unable to present a quantitative reconciliation of such forward‐looking, non‐GAAP financial measures to the respective most directly comparable forward‐looking GAAP financial measures. Management believes these forward‐looking, non‐GAAP measures may be a useful tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward‐looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward‐looking statements include, among others:

the timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion, operating and capital costs related to, and (iv) maximize reserve recovery from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, natural gas liquids, and natural gas;
security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;
the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, and export facilities;
the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses and leases;
the impact of, and changes in, government policies, laws and regulations, including any changes or other actions which may result from the recent U.S. elections and change in U.S. administration and including tax laws and regulations; climate change and other environmental, health and safety laws and regulations relating to air emissions, disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil and natural gas; laws and regulations with respect to derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and drilling, completing and operating costs with respect to such properties;
the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
competition in the oil and gas exploration and production industry for the acquisition of licenses, leases and properties, employees and other personnel, facilities, equipment, materials and services;
the availability and cost of employees and other personnel, facilities, equipment, materials (such as water and tubulars) and services;
the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, compression, storage, transportation, and export facilities;
the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and
to otherwise satisfy its capital expenditure requirements;
the extent to which EOG is successful in its completion of planned asset dispositions;
the extent and effect of any hedging activities engaged in by EOG;
the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
the duration and economic and financial impact of epidemics, pandemics or other public health issues, including the COVID-19 pandemic;
geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflict), including in the areas in which EOG operates;
the use of competing energy sources and the development of alternative energy sources;
the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
acts of war and terrorism and responses to these acts; and
the other factors described under ITEM 1A, Risk Factors, of EOG's Annual Report on Form 10‐K for the fiscal year ended December 31, 2020 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10‐Q or Current Reports on Form 8‐K.

In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10‐K for the fiscal year ended December 31, 2020, available from EOG at P.O. Box 4362, Houston, Texas 77210‐4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1‐800‐SEC‐0330 or from the SEC's website at www.sec.gov. In addition, reconciliation and calculation schedules for non‐GAAP financial measures can be found on the EOG website at www.eogresources.com.

Income Statements

In millions of USD, except per share data (Unaudited)
	1Q 2021	4Q 2020	1Q 2020
Operating Revenues and Other
Crude Oil and Condensate	2,251	1,711	2,065
Natural Gas Liquids	314	229	161
Natural Gas	625	302	210
Gains (Losses) on Mark-to-Market Commodity Derivative Contracts	(367)	70	1,206
Gathering, Processing and Marketing	848	643	1,039
Gains (Losses) on Asset Dispositions, Net	(6)	(6)	16
Other, Net	29	16	21
Total	3,694	2,965	4,718

Operating Expenses
Lease and Well	270	261	330
Transportation Costs	202	195	208
Gathering and Processing Costs	139	119	128
Exploration Costs	33	41	40
Dry Hole Costs	11	—	—
Impairments	44	143	1,573
Marketing Costs	838	621	1,110
Depreciation, Depletion and Amortization	900	870	1,000
General and Administrative	110	113	114
Taxes Other Than Income	215	114	157
Total	2,762	2,477	4,660

Operating Income	932	488	58
Other Income (Expense), Net	(4)	(7)	18
Income Before Interest Expense and Income Taxes	928	481	76
Interest Expense, Net	47	53	45
Income Before Income Taxes	881	428	31
Income Tax Provision	204	91	21
Net Income	677	337	10

Dividends Declared per Common Share	0.4125	0.3750	0.3750
Net Income Per Share
Basic	1.17	0.58	0.02
Diluted	1.16	0.58	0.02
Average Number of Common Shares
Basic	580	580	578
Diluted	583	581	580

Wellhead Volumes and Prices
(Unaudited)
	1Q 2021	1Q 2020	% Change	4Q 2020

Crude Oil and Condensate Volumes (MBbld) ⁽¹⁾
United States	428.7	482.7	-11%	442.4
Trinidad	2.2	0.5	340%	2.3
Other International ⁽²⁾	0.1	0.1	0%	0.1
Total	431.0	483.3	-11%	444.8

Average Crude Oil and Condensate Prices ($/Bbl) ⁽³⁾
United States	58.07	46.97	24%	41.86
Trinidad	49.77	34.93	43%	32.91
Other International ⁽²⁾	38.61	57.51	-33%	35.9
Composite	58.02	46.96	24%	41.81

Natural Gas Liquids Volumes (MBbld) ⁽¹⁾
United States	124.3	161.3	-23%	141.4
Total	124.3	161.3	-23%	141.4

Average Natural Gas Liquids Prices ($/Bbl) ⁽³⁾
United States	28.03	10.94	156%	17.54
Composite	28.03	10.94	156%	17.54

Natural Gas Volumes (MMcfd) ⁽¹⁾
United States	1,100	1,139	-3%	1,075
Trinidad	217	201	8%	192
Other International ⁽²⁾	25	38	-34%	25
Total	1,342	1,378	-3%	1,292

Average Natural Gas Prices ($/Mcf) ⁽³⁾
United States	5.52	1.50	268%	2.29
Trinidad	3.38	2.17	56%	3.57
Other International ⁽²⁾	5.66	4.32	31%	5.47
Composite	5.17	1.67	209%	2.54

Crude Oil Equivalent Volumes (MBoed) ⁽⁴⁾
United States	736.4	833.8	-12%	763.0
Trinidad	38.5	34.0	13%	34.2
Other International ⁽²⁾	4.0	6.3	-37%	4.3
Total	778.9	874.1	11%	801.5

Total MMBoe ⁽⁴⁾	70.1	79.5	-12%	73.7


(1)	Thousand barrels per day or million cubic feet per day, as applicable.
(2)	Other International includes EOG's China and Canada operations.
(3)	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 fiscal quarter ended March 31, 2021).
(4)	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.

Balance Sheets
In millions of USD, except share data (Unaudited)
	March 31,	December 31,
	2021	2020
Current Assets
Cash and Cash Equivalents	3,388	3,329
Accounts Receivable, Net	1,828	1,522
Inventories	562	629
Assets from Price Risk Management Activities	—	65
Income Taxes Receivable	—	23
Other	413	294
Total	6,191	5,862

Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method)	65,645	64,793
Other Property, Plant and Equipment	4,590	4,479
Total Property, Plant and Equipment	70,235	69,272
Less: Accumulated Depreciation, Depletion and Amortization	(41,569)	(40,673)
Total Property, Plant and Equipment, Net	28,666	28,599
Deferred Income Taxes	4	2
Other Assets	1,310	1,342
Total Assets	36,171	35,805

Current Liabilities
Accounts Payable	1,945	1,681
Accrued Taxes Payable	449	206
Dividends Payable	239	217
Liabilities from Price Risk Management Activities	188	—
Current Portion of Long-Term Debt	39	781
Current Portion of Operating Lease Liabilities	269	295
Other	183	280
Total	3,312	3,460

Long-Term Debt	5,094	5,035
Other Liabilities	2,178	2,149
Deferred Income Taxes	4,825	4,859
Commitments and Contingencies

Stockholders' Equity
Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 583,843,561 Shares Issued at March 31, 2021 and 583,694,850 Shares Issued at December 31, 2020	206	206
Additional Paid in Capital	5,979	5,945
Accumulated Other Comprehensive Loss	(14)	(12)
Retained Earnings	14,606	14,170
Common Stock Held in Treasury, 232,249 Shares at March 31, 2021 and 124,265 Shares at December 31, 2020	(15)	(7)
Total Stockholders' Equity	20,762	20,302
Total Liabilities and Stockholders' Equity	36,171	35,805

Cash Flows Statements
In millions of USD (Unaudited)
	1Q 2021	4Q 2020	1Q 2020
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Net Income	677	337	10
Items Not Requiring (Providing) Cash
Depreciation, Depletion and Amortization	900	870	1,000
Impairments	44	143	1,573
Stock-Based Compensation Expenses	35	33	40
Deferred Income Taxes	(36)	55	45
(Gains) Losses on Asset Dispositions, Net	6	6	(16)
Other, Net	7	10	(9)
Dry Hole Costs	11	—	—
Mark-to-Market Commodity Derivative Contracts
Total (Gains) Losses	367	(70)	(1,206)
Net Cash Received from (Payments for) Settlements of Commodity Derivative Contracts	(30)	72	84
Other, Net	1	2	—
Changes in Components of Working Capital and Other Assets and Liabilities
Accounts Receivable	(308)	(464)	722
Inventories	64	31	103
Accounts Payable	172	427	434
Accrued Taxes Payable	243	(61)	(55)
Other Assets	(103)	(90)	58
Other Liabilities	(89)	21	(66)
Changes in Components of Working Capital Associated with Investing Activities	(91)	(201)	(132)
Net Cash Provided by Operating Activities	1,870	1,121	2,585
Investing Cash Flows
Additions to Oil and Gas Properties	(875)	(785)	(1,566)
Additions to Other Property, Plant and Equipment	(42)	(56)	(123)
Proceeds from Sales of Assets	5	3	26
Changes in Components of Working Capital Associated with Investing Activities	91	201	132
Net Cash Used in Investing Activities	(821)	(637)	(1,531)
Financing Cash Flows
Long-Term Debt Repayments	(750)	—	—
Dividends Paid	(219)	(220)	(167)
Treasury Stock Purchased	(10)	(1)	(5)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan	—	8	—
Repayment of Finance Lease Liabilities	(9)	(6)	(3)
Net Cash Used in Financing Activities	(988)	(219)	(175)
Effect of Exchange Rate Changes on Cash	(2)	(2)	—
Increase in Cash and Cash Equivalents	59	263	879
Cash and Cash Equivalents at Beginning of Period	3,329	3,066	2,028
Cash and Cash Equivalents at End of Period	3,388	3,329	2,907

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), Discretionary Cash Flow, Free Cash Flow, Adjusted EBITDAX, Net Debt and related statistics.

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

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 and operating results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting the company's performance. EOG uses these non-GAAP measures for purposes of (i) comparing EOG's financial and operating performance with the financial and operating performance of other companies in the industry and (ii) analyzing EOG's financial and operating 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), Total 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.

Adjusted Net Income (Loss)
In millions of USD, except per share data (Unaudited)
	1Q 2021
	Before Tax	Income Tax Impact	After Tax	Diluted Earnings per Share

Reported Net Income (GAAP)	881	(204)	677	1.16
Adjustments:
Losses on Mark-to-Market Commodity Derivative Contracts	367	(81)	286	0.49
Net Cash Payments for Settlements of Commodity Derivative Contracts	(30)	7	(23)	(0.04)
Add: Losses on Asset Dispositions, Net	6	(1)	5	0.01
Add: Certain Impairments	1	—	1	—
Adjustments to Net Income	344	(75)	269	0.46

Adjusted Net Income (Non-GAAP)	1,225	(279)	946	1.62

Average Number of Common Shares (GAAP)
Basic				580
Diluted				583


	4Q 2020
	Before Tax	Income Tax Impact	After Tax	Diluted Earnings per Share

Reported Net Income (GAAP)	428	(91)	337	0.58
Adjustments:
Gains on Mark-to-Market Commodity Derivative Contracts	(70)	15	(55)	(0.10)
Net Cash Received from Settlements of Commodity Derivative Contracts	72	(16)	56	0.10
Add: Losses on Asset Dispositions, Net	6	(1)	5	0.01
Add: Certain Impairments	86	(18)	68	0.12
Adjustments to Net Income	94	(20)	74	0.13

Adjusted Net Income (Non-GAAP)	522	(111)	411	0.71

Average Number of Common Shares (GAAP)
Basic				580
Diluted				581


Adjusted Net Income (Loss)
In millions of USD, except per share data (Unaudited)
	1Q 2020
	Before Tax	Income Tax Impact	After Tax	Diluted Earnings per Share

Reported Net Income (GAAP)	31	(21)	10	0.02
Adjustments:
Gains on Mark-to-Market Commodity Derivative Contracts	(1,206)	265	(941)	(1.62)
Net Cash Received from Settlements of Commodity Derivative Contracts	84	(18)	66	0.11
Less: Gains on Asset Dispositions, Net	(16)	3	(13)	(0.02)
Add: Certain Impairments	1,516	(320)	1,196	2.06
Adjustments to Net Income	378	(70)	308	0.53

Adjusted Net Income (Non-GAAP)	409	(91)	318	0.55

Average Number of Common Shares (GAAP)
Basic				578
Diluted				580

Adjusted Net Income per Share
In millions of USD, except share and per Boe data (Unaudited)
4Q 2020 Adjusted Net Income per Share (Non-GAAP)		0.71

Realized Price
1Q 2021 Composite Average Wellhead Revenue per Boe	45.49
Less: 4Q 2020 Composite Average Wellhead Revenue per Boe	(30.39)
Subtotal	15.10
Multiplied by: 1Q 2021 Crude Oil Equivalent Volumes (MMBoe)	70.1
Total Change in Revenue	1,059
Less: Income Tax Benefit (Cost) Imputed (based on 23%)	(243)
Change in Net Income	815
Change in Diluted Earnings per Share		1.40

Net Cash Received (Paid) from Settlements of Commodity Derivative Contracts
1Q 2021 Net Cash Received (Paid) from Settlement of Commodity Derivative Contracts	(30)
Less: Income Tax Benefit (Cost)	7
After Tax - (a)	(23)
4Q 2020 Net Cash Received (Paid) from Settlement of Commodity Derivative Contracts	72
Less: Income Tax Benefit (Cost)	(16)
After Tax - (b)	56
Change in Net Income - (a) - (b)	(79)
Change in Diluted Earnings per Share		(0.14)

Wellhead Volumes
1Q 2021 Crude Oil Equivalent Volumes (MMBoe)	70.1
Less: 4Q 2020 Crude Oil Equivalent Volumes (MMBoe)	(73.7)
Subtotal	(3.6)
Times: 1Q 2021 Composite Average Margin per Boe (Non-GAAP) (Including Total Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)	17.38
Change in Revenue	(63)
Less: Income Tax Benefit (Cost) Imputed (based on 23%)	14
Change in Net Income	(48)
Change in Diluted Earnings per Share		(0.08)

Operating Cost per Boe
4Q 2020 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)	24.72
Less: 1Q 2021 Total Operating Cost per Boe (Non-GAAP) (including Total Exploration Costs) (refer to "Costs per Barrel of Oil Equivalent" schedule)	(28.11)
Subtotal	(3.39)
Times: 1Q 2021 Crude Oil Equivalent Volumes (MMBoe)	70.1
Change in Before-Tax Net Income	(238)
Less: Income Tax Benefit (Cost) Imputed (based on 23%)	55
Change in Net Income	(183)
Change in Diluted Earnings per Share		(0.31)

Other Items		0.04

1Q 2021 Adjusted Net Income per Share (Non-GAAP)		1.62

1Q 2021 Average Number of Common Shares (Non-GAAP) - Diluted	583

Discretionary Cash Flow and Free Cash Flow
In millions of USD (Unaudited)
	1Q 2021	4Q 2020	1Q 2020

Net Cash Provided by Operating Activities (GAAP)	1,870	1,121	2,585

Adjustments:
Exploration Costs (excluding Stock-Based Compensation Expenses)	28	36

EOG Resources Reports Excellent First Quarter 2021 Results; Declares $1.00 per Share Special Dividend