Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (USD $) | |||
In Thousands, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Net Operating Revenues | |||
Natural Gas | $2,050,963 | $4,452,058 | $3,032,805 |
Crude Oil, Condensate and Natural Gas Liquids | 1,348,510 | 1,769,926 | 987,523 |
Gains on Mark-to-Market Commodity Derivative Contracts | 431,757 | 597,911 | 93,108 |
Gathering, Processing and Marketing | 407,116 | 164,535 | 73,539 |
Gains on Property Dispositions, Net | 535,436 | 123,473 | 43,628 |
Other, Net | 13,177 | 19,240 | 8,700 |
Total | 4,786,959 | 7,127,143 | 4,239,303 |
Operating Expenses | |||
Lease and Well | 579,290 | 559,185 | 452,044 |
Transportation Costs | 283,329 | 274,090 | 152,236 |
Gathering and Processing Costs | 57,632 | 40,550 | 27,775 |
Exploration Costs | 169,592 | 193,886 | 150,445 |
Dry Hole Costs | 51,243 | 55,167 | 115,382 |
Impairments | 305,832 | 192,859 | 147,517 |
Marketing Costs | 397,375 | 152,842 | 66,680 |
Depreciation, Depletion and Amortization | 1,549,188 | 1,326,875 | 1,065,545 |
General and Administrative | 248,274 | 243,708 | 205,210 |
Taxes Other Than Income | 174,363 | 320,796 | 208,073 |
Total | 3,816,118 | 3,359,958 | 2,590,907 |
Operating Income | 970,841 | 3,767,185 | 1,648,396 |
Other Income, Net | 2,071 | 31,012 | 29,250 |
Income Before Interest Expense and Income Taxes | 972,912 | 3,798,197 | 1,677,646 |
Interest Expense | |||
Incurred | 155,820 | 94,286 | 76,102 |
Capitalized | (54,919) | (42,628) | (29,324) |
Net Interest Expense | 100,901 | 51,658 | 46,778 |
Income Before Income Taxes | 872,011 | 3,746,539 | 1,630,868 |
Income Tax Provision | 325,384 | 1,309,620 | 540,950 |
Net Income | 546,627 | 2,436,919 | 1,089,918 |
Preferred Stock Dividends | 0 | 443 | 6,663 |
Net Income Available to Common Stockholders | 546,627 | 2,436,476 | 1,083,255 |
Net Income Per Share Available to Common Stockholders | |||
Basic | 2.2 | 9.88 | 4.45 |
Diluted | 2.17 | 9.72 | 4.37 |
Dividends Declared Per Common Share | 0.58 | 0.51 | 0.36 |
Average Number of Common Shares | |||
Basic | 248,996 | 246,662 | 243,469 |
Diluted | 251,884 | 250,542 | 247,637 |
Statement of Comprehensive Income | |||
Net Income | 546,627 | 2,436,919 | 1,089,918 |
Foreign Currency Translation Adjustments | 308,286 | (431,940) | 282,619 |
Foreign Currency Swap Transaction | 6,336 | (9,637) | 10,789 |
Income Tax Related to Foreign Currency Swap Transaction | (1,519) | 2,442 | (3,086) |
Defined Benefit Pension and Postretirement Plans | (1,469) | 608 | (595) |
Income Tax Related to Defined Benefit Pension and Postretirement Plans | 299 | (388) | 271 |
Comprehensive Income | $858,560 | $1,998,004 | $1,379,916 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets | ||
Cash and Cash Equivalents | $685,751 | $331,311 |
Accounts Receivable, Net | 771,417 | 722,695 |
Inventories | 261,723 | 187,970 |
Assets from Price Risk Management Activities | 20,915 | 779,483 |
Income Taxes Receivable | 37,009 | 27,053 |
Other | 62,726 | 59,939 |
Total | 1,839,541 | 2,108,451 |
Property, Plant and Equipment | ||
Oil and Gas Properties (Successful Efforts Method) | 24,614,311 | 20,803,629 |
Other Property, Plant and Equipment | 1,350,132 | 1,057,888 |
Total Property, Plant and Equipment | 25,964,443 | 21,861,517 |
Less: Accumulated Depreciation, Depletion and Amortization | (9,825,218) | (8,204,215) |
Total Property, Plant and Equipment, Net | 16,139,225 | 13,657,302 |
Other Assets | 139,901 | 185,473 |
Total Assets | 18,118,667 | 15,951,226 |
Current Liabilities | ||
Accounts Payable | 979,139 | 1,122,209 |
Accrued Taxes Payable | 92,858 | 86,265 |
Dividends Payable | 36,286 | 33,461 |
Liabilities from Price Risk Management Activities | 27,218 | 4,429 |
Deferred Income Taxes | 35,414 | 368,231 |
Current Portion of Long-Term Debt | 37,000 | 37,000 |
Other | 137,645 | 113,321 |
Total | 1,345,560 | 1,764,916 |
Long-Term Debt | 2,760,000 | 1,860,000 |
Other Liabilities | 632,652 | 498,291 |
Deferred Income Taxes | 3,382,413 | 2,813,522 |
Stockholders' Equity | ||
Common Stock, $0.01 Par, 640,000,000 Shares Authorized: 252,627,177 Shares and 249,758,577 Shares Issued at December 31, 2009 and 2008, respectively | 202,526 | 202,498 |
Additional Paid in Capital | 596,702 | 323,805 |
Accumulated Other Comprehensive Income | 339,720 | 27,787 |
Retained Earnings | 8,866,747 | 8,466,143 |
Common Stock Held in Treasury, 118,525 Shares and 126,911 Shares at December 31, 2009 and 2008, respectively | (7,653) | (5,736) |
Total Stockholders' Equity | 9,998,042 | 9,014,497 |
Total Liabilities and Stockholders' Equity | $18,118,667 | $15,951,226 |
Balance Sheet Parentheticals
Balance Sheet Parentheticals (USD $) | ||
Dec. 31, 2009
| Dec. 31, 2008
| |
Common Stock | ||
$ Par Value Per Share | 0.01 | 0.01 |
Shares Authorized | 640,000,000 | 640,000,000 |
Shares Issued | 252,627,177 | 249,758,577 |
Treasury Stock | ||
Common Stock Held in Treasury | 118,525 | 126,911 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (USD $) | |||||||
In Thousands | Additional Paid-in Capital
| Accumulated Other Comprehensive Income (Loss)
| Common Stock (CommonStockMember)
| Preferred Stock
| Retained Earnings (RetainedEarningsMember)
| Common Stock Held in Treasury (CommonStockHeldInTreasuryMember)
| Total
|
Balance at Dec. 31, 2006 | $129,986 | $176,704 | $202,495 | $52,887 | $5,151,034 | ($113,435) | $5,599,671 |
Net Income | 1,089,918 | 1,089,918 | |||||
Redemption of Preferred Stock | (48,260) | (48,260) | |||||
Amortization of Preferred Stock Discount | 350 | (350) | |||||
Preferred Stock Dividends Declared | (6,313) | (6,313) | |||||
Common Stock Dividends Declared | (88,368) | (88,368) | |||||
Foreign Currency Translation Adjustments | 282,619 | 282,619 | |||||
Foreign Currency Swap Transaction, Net of Tax | 7,703 | 7,703 | |||||
Defined Benefit Pension and Post Retirement Plans, Net of Tax | (324) | (324) | |||||
Treasury Stock Issued Under Stock Plans | 16,205 | 30,106 | 46,311 | ||||
Excess Tax Benefits from Stock-Based Compensation | 29,084 | 29,084 | |||||
Restricted Stock and Restricted Stock Units | (21,426) | 21,426 | |||||
Stock-Based Compensation Expenses | 67,253 | 67,253 | |||||
Adoption of Accounting Standard for Uncertainty in Income Taxes | 0 | 0 | 0 | 0 | 10,800 | 0 | 10,800 |
Balance at Dec. 31, 2007 | 221,102 | 466,702 | 202,495 | 4,977 | 6,156,721 | (61,903) | 6,990,094 |
Net Income | 2,436,919 | 2,436,919 | |||||
Redemption of Preferred Stock | (5,000) | (5,000) | |||||
Amortization of Preferred Stock Discount | 23 | (23) | |||||
Preferred Stock Dividends Declared | (420) | (420) | |||||
Common Stock Dividends Declared | (127,054) | (127,054) | |||||
Foreign Currency Translation Adjustments | (431,940) | (431,940) | |||||
Foreign Currency Swap Transaction, Net of Tax | (7,195) | (7,195) | |||||
Defined Benefit Pension and Post Retirement Plans, Net of Tax | 220 | 220 | |||||
Treasury Stock Issued Under Stock Plans | 7,260 | 47,649 | 54,909 | ||||
Excess Tax Benefits from Stock-Based Compensation | 6,446 | 6,446 | |||||
Restricted Stock and Restricted Stock Units | (8,515) | 3 | 8,512 | ||||
Stock-Based Compensation Expenses | 97,493 | 97,493 | |||||
Treasury Stock Issued as Compensation | 19 | 0 | 0 | 0 | 0 | 6 | 25 |
Balance at Dec. 31, 2008 | 323,805 | 27,787 | 202,498 | 0 | 8,466,143 | (5,736) | 9,014,497 |
Net Income | 546,627 | 546,627 | |||||
Common Stock Issued Under Stock Plans | 18,641 | 3 | 18,644 | ||||
Common Stock Dividends Declared | (146,023) | (146,023) | |||||
Foreign Currency Translation Adjustments | 308,286 | 308,286 | |||||
Foreign Currency Swap Transaction, Net of Tax | 4,817 | 4,817 | |||||
Defined Benefit Pension and Post Retirement Plans, Net of Tax | (1,170) | (1,170) | |||||
Treasury Stock Issued Under Stock Plans | (4,240) | (4,923) | (9,163) | ||||
Excess Tax Benefits from Stock-Based Compensation | 76,134 | 76,134 | |||||
Restricted Stock and Restricted Stock Units | (2,483) | 10 | 2,473 | ||||
Stock-Based Compensation Expenses | 95,037 | 95,037 | |||||
Shares Issued for Property Acquisition | 89,566 | 15 | 89,581 | ||||
Treasury Stock Issued as Compensation | 242 | 0 | 0 | 0 | 0 | 533 | 775 |
Balance at Dec. 31, 2009 | $596,702 | $339,720 | $202,526 | $0 | $8,866,747 | ($7,653) | $9,998,042 |
Stockholders' Equity Parentheti
Stockholders' Equity Parentheticals (USD $) | |||
1/1/2009 - 12/31/2009
| 1/1/2008 - 12/31/2008
| 1/1/2007 - 12/31/2007
| |
Common Stock Dividends Declared | |||
Common Stock Dividends Declared, $ Per Share | 0.58 | 0.51 | 0.36 |
Statement of Cash Flows
Statement of Cash Flows (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Cash Flows From Operating Activities | |||
Net Income | $546,627 | $2,436,919 | $1,089,918 |
Depreciation, Depletion and Amortization | 1,549,188 | 1,326,875 | 1,065,545 |
Impairments | 305,832 | 192,859 | 147,517 |
Stock-Based Compensation Expenses | 95,180 | 97,493 | 67,253 |
Deferred Income Taxes | 174,392 | 1,133,630 | 426,827 |
Gains on Property Dispositions, Net | (535,436) | (123,473) | (43,628) |
Other, Net | 6,761 | (14,919) | (510) |
Dry Hole Costs | 51,243 | 55,167 | 115,382 |
Total Gains | (431,757) | (597,911) | (93,108) |
Realized Gains (Losses) | 1,277,584 | (136,625) | 127,969 |
Excess Tax Benefits from Stock-Based Compensation | (76,134) | (6,446) | (27,339) |
Other, Net | 18,862 | 13,229 | 24,268 |
Accounts Receivable | (47,818) | 95,165 | (85,024) |
Inventories | (50,146) | (92,049) | 9,638 |
Accounts Payable | (153,565) | 30,253 | 228,354 |
Accrued Taxes Payable | 90,929 | 72,467 | (12,663) |
Other Assets | (5,515) | (10,715) | (8,416) |
Other Liabilities | (12,305) | 9,061 | 12,614 |
Changes in Components of Working Capital Associated with Investing and Financing Activities | 118,517 | 152,269 | (143,594) |
Net Cash Provided by Operating Activities | 2,922,439 | 4,633,249 | 2,901,003 |
Investing Cash Flows | |||
Additions to Oil and Gas Properties | (3,176,783) | (4,718,860) | (3,401,986) |
Additions to Other Property, Plant and Equipment | (326,226) | (476,611) | (277,076) |
Proceeds from Sales of Assets | 212,000 | 383,559 | 83,295 |
Changes in Components of Working Capital Associated with Investing Activities | (118,221) | (152,374) | 143,668 |
Other, Net | (5,321) | (2,232) | (3,675) |
Net Cash Used in Investing Activities | (3,414,551) | (4,966,518) | (3,455,774) |
Financing Cash Flows | |||
Long-Term Debt Borrowings | 900,000 | 750,000 | 610,000 |
Long-Term Debt Repayments | 0 | (38,000) | (158,442) |
Dividends Paid | (142,260) | (115,204) | (84,020) |
Redemption of Preferred Stock | 0 | (5,395) | (51,197) |
Excess Tax Benefits from Stock-Based Compensation | 76,134 | 6,446 | 27,339 |
Treasury Stock Purchased | (10,986) | (17,834) | (7,638) |
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan | 20,465 | 72,572 | 55,320 |
Debt Issuance Costs | (8,895) | (7,585) | (5,206) |
Other, Net | (296) | 105 | (71) |
Net Cash Provided by Financing Activities | 834,162 | 645,105 | 386,085 |
Effect of Exchange Rate Changes on Cash | 12,390 | (34,756) | 4,662 |
Increase (Decrease) in Cash and Cash Equivalents | 354,440 | 277,080 | (164,024) |
Cash and Cash Equivalents at Beginning of Period | 331,311 | 54,231 | 218,255 |
Cash and Cash Equivalents at End of Period | $685,751 | $331,311 | $54,231 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Principles of Consolidation. The consolidated financial statements of EOG Resources, Inc. (EOG) include the accounts of all domestic and foreign subsidiaries. Investments in unconsolidated affiliates, in which EOG is able to exercise significant influence, are accounted for using the equity method. All intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain reclassifications have been made to prior period financial statements to conform with the current presentation. Financial Instruments. EOG's financial instruments consist of cash and cash equivalents, commodity derivative contracts, accounts receivable, accounts payable and current and long-term debt. The carrying values of cash and cash equivalents, marketable securities, commodity derivative contracts, accounts receivable and accounts payable approximate fair value (see Notes 2 and 11). Cash and Cash Equivalents. EOG records as cash equivalents all highly liquid short-term investments with original maturities of three months or less. Oil and Gas Operations. EOG accounts for its natural gas and crude oil exploration and production activities under the successful efforts method of accounting. Oil and gas lease acquisition costs are capitalized when incurred. Unproved properties with individually significant acquisition costs are amortized over the lease term and analyzed on a property-by-property basis for any impairment in value. Unproved properties with acquisition costs that are not individually significant are aggregated, and the portion of such costs estimated to be nonproductive is amortized over the remaining lease term. If the unproved properties are determined to be productive, the appropriate related costs are transferred to proved oil and gas properties. Lease rentals are expensed as incurred. Oil and gas exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. The costs of drilling exploratory wells are capitalized pending determination of whether they have discovered proved commercial reserves. Exploratory drilling costs are capitalized when drilling is complete if it is determined that there is economic producibility supported by either actual production, a conclusive formation test or by certain technical data if the discovery is located offshore in the Gulf of Mexico. If proved commercial reserves are not discovered, such drilling costs are expensed. In some circumstances, it may be uncertain whether proved commercial reserves have been found when drilling has been completed. Such exploratory well drilling costs may continue to be capitalized if the reserve quantity i |
Long-Term Debt
Long-Term Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Long-Term Debt, Preferred Stock and Common Stock | |
Long-Term Debt | 2. Long-Term Debt Long-Term Debt at December31, 2009 and 2008 consisted of the following (in thousands): 2009 2008 6.125% Senior Notes due 2013 $ 400,000 $ 400,000 5.875%Senior Notes due 2017 600,000 600,000 6.875% Senior Notes due 2018 350,000 350,000 5.625% Senior Notes due 2019 900,000 - 6.65% Senior Notes due 2028 140,000 140,000 Subsidiary Revolving Credit Facility due 2010 37,000 37,000 7.00% Subsidiary Debt due 2011 220,000 220,000 4.75% Subsidiary Debt due 2014 150,000 150,000 2,797,000 1,897,000 Less: Current Portion of Long-Term Debt 37,000 37,000 Total $ 2,760,000 $ 1,860,000 At December 31, 2009, the aggregate annual maturities of long-term debt were $37 million in 2010, $220 million in 2011, zero in 2012, $400 million in 2013, and $150 million in 2014. During 2009 and 2008, EOG utilized commercial paper and short-term borrowings under uncommitted credit facilities, bearing market interest rates, for various corporate financing purposes. EOG had no outstanding borrowings from commercial paper or uncommitted credit facilities at December 31, 2009. The weighted average interest rates for commercial paper and uncommitted credit facility borrowings for 2009 were 0.96% and 1.07%, respectively. On May 21, 2009, EOG completed its public offering of $900 million aggregate principal amount of 5.625% Senior Notes due 2019 (2019 Notes). Interest on the 2019 Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2009. Net proceeds from the offering of approximately $891 million were used for general corporate purposes, including repayment of outstanding commercial paper borrowings. On May 11, 2009, EOG Resources Trinidad Limited, a wholly owned foreign subsidiary of EOG, amended its 3-year, $75 million Revolving Credit Agreement (Credit Agreement) to extend the scheduled maturity date of the remaining outstanding balance of $37 million from May 12, 2009 to May 12, 2010. Borrowings under the Credit Agreement accrue interest based, at EOG's option, on either the Eurodollar rate or the base rate of the Credit Agreement's administrative agent. The applicable Eurodollar rate at December 31, 2009 was 2.73%. The weighted average Eurodollar rate for the amount outstanding during the year ended December 31, 2009 was 2.79%. On September 30, 2008, EOG completed its public offering of $400 million aggregate principal amount of 6.125% Senior Notes due 2013 and $350 million aggregate principal amount of 6.875% Senior Notes due 2018 (Notes). Interest on the Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning April 1, 2009. Net proceeds from the offering of approximately $743 million were used for general corporate purposes, including repayment of outstanding commercial paper and borrowings under other uncommitted credit facilities. EOG currently has a $1.0 billion unsecured Revolving Credit Agreement (Agreement) with domestic and foreign lenders. The Agreement |
Stockholders' Equity
Stockholders' Equity | |
1/1/2009 - 12/31/2009
USD / shares | |
Stockholders' Equity | |
Stockholders' Equity | 3. Stockholders' Equity Common Stock. EOG purchases shares of its common stock from time to time in the open market. In September 2001, EOG's Board of Directors (Board) authorized the purchase of an aggregate maximum of 10 million shares of common stock of EOG that superseded all previous authorizations. At December 31, 2009, 6,386,200 shares remained available for purchase under this authorization. In addition, shares of EOG's common stock are from time to time withheld by, or returned to, EOG in satisfaction of tax withholding obligations arising upon the exercise of employee stock options or stock-settled stock appreciation rights. the vesting of restricted stock or restricted stock unit grants or in payment of the exercise price of employee stock options. Such shares withheld or returned do not count against the Board authorization discussed above. Shares purchased, withheld and returned are held in treasury for, among other purposes, fulfilling any obligations arising under EOG's stock plans and any other approved transactions or activities for which such shares of common stock shall be required. The Board increased the quarterly cash dividend on EOG's common stock from $0.06 per share to $0.09 per share on January 31, 2007 effective beginning with the dividend paid on April 30, 2007, to $0.12 per share on February 7, 2008 effective beginning with the dividend paid on April 30, 2008, to $0.135 per share on July 29, 2008 effective beginning with the dividend paid on October 31, 2008 and to $0.145 per share on February 4, 2009 effective beginning with the dividend paid on April 30, 2009. On February 9, 2010, EOG's Board increased the quarterly cash dividend on the common stock from the current $0.145 per share to $0.155 per share effective beginning with the dividend to be paid on April 30, 2010. The following summarizes EOG's common stock activity for each of the years ended December 31, 2007, 2008 and 2009 (in thousands): Common Shares Issued Treasury Outstanding Balance at December 31, 2006 249,460 (5,725) 243,735 Treasury Stock Purchased (1) - (126) (126) Treasury Stock Issued Under Employee Stock Purchase Plan - 102 102 Treasury Stock Issued Under Other Equity Compensation Plans - 2,814 2,814 Balance at December 31, 2007 249,460 (2,935) 246,525 Common Stock Issued Under Equity Compensation Plans 299 - 299 Treasury Stock Purchased (1) - (195) (195) Treasury Stock Issued Under Employee Stock Purchase Plan - 103 103 Treasury Stock Issued Under Other Equity Compensation Plans - 2,900 2,900 Balance at December 31, 2008 249,759 (127) 249,632 Common Stock Issued Under Equity Compensation Plans 1,347 - 1,347 Treasury Stock Purchased (1) - (168) (168) Common Stock Issued Under Employee Stock Purchase Plan 71 - 71 Treasury Stock Issued Under Other Equity Compensation Plans - 177 177 Common Stock Issued for Property Acquisition 1,450 |
Other Income, Net
Other Income, Net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Income, Net | |
Other Income, Net | 4. Other Income, Net Other income, net for 2009 included equity income from investments in the Caribbean Nitrogen Company Limited (CNCL) and Nitrogen (2000) Unlimited (N2000) ammonia plants ($4 million), net foreign currency transaction gains ($4 million) and losses on sales of warehouse stock ($4 million). Other income, net for 2008 included interest income ($9 million), equity income from investments in CNCL and N2000 ammonia plants ($19 million), net foreign currency transaction losses ($5 million) and settlements received related to the Enron Corp. bankruptcy ($3 million). |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes | |
Income Taxes | 5. Income Taxes The principal components of EOG's net deferred income tax liabilities at December31, 2009 and 2008 were as follows (in thousands): 2009 2008 Current Deferred Income Tax (Assets) Liabilities Commodity Hedging Contracts $ 11,559 $ 276,438 Deferred Compensation Plans (11,121) (8,226) Timing Differences Associated With Different Year-ends in Foreign Jurisdictions 27,659 98,736 Other 7,317 1,283 Total Net Current Deferred Income Tax Liabilities $ 35,414 $ 368,231 Noncurrent Deferred Income Tax (Assets) Liabilities Oil and Gas Exploration and Development Costs Deducted for Tax Over Book Depreciation, Depletion and Amortization $ 3,746,302 $ 3,048,651 Non-Producing Leasehold Costs (67,347) (50,841) Seismic Costs Capitalized for Tax (64,917) (47,325) Equity Awards (76,978) (52,300) Capitalized Interest 76,852 62,488 Alternative Minimum Tax Credit Carryforward (200,034) (143,142) Other (31,465) (4,009) Total Net Noncurrent Deferred Income Tax Liabilities $ 3,382,413 $ 2,813,522 Total Net Deferred Income Tax Liabilities $ 3,417,827 $ 3,181,753 The components of Income Before Income Taxes for the years indicated below were as follows (in thousands): 2009 2008 2007 United States $ 784,248 $ 3,138,175 $ 1,191,093 Foreign 87,763 608,364 439,775 Total $ 872,011 $ 3,746,539 $ 1,630,868 The principal components of EOG's Income Tax Provision for the years indicated below were as follows (in thousands): 2009 2008 2007 Current: Federal $ 95,194 $ 50,776 $ (7,284) State 8,783 5,674 (3,999) Foreign 47,015 119,540 125,406 Total 150,992 175,990 114,123 Deferred: Federal 166,045 1,010,535 416,925 State 31,580 56,540 26,506 Foreign (23,233) 66,555 (16,604) Total 174,392 1,133,630 426,827 Income Tax Provision $ 325,384 $ 1,309,620 $ 540,950 The differences between taxes computed at the United States federal statutory tax rate and EOG's effective rate were as follows: 2009 2008 2007 Statutory Federal Income Tax Rate 35.00% 35.00% 35.00% State Income Tax, Net of Federal Benefit 3.00 1.08 0.90 Income Tax Provision Related to Foreign Operations (0.80) (0.72) (0.67) Change in Canadian Federal and Provincial Statutory Tax Rates and Other Canadian Adjustments - - (2.10) Domestic Production Activities Deduction 0.06 0.01 0.11 Other 0.05 (0.41) (0.07) Effective Income Tax Rate 37.31% 34.96% 33.17% The balance of unrecognized tax benefits at December 31, 2009 was $29 million ($16 m |
Employee Benefit Plans
Employee Benefit Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Pension and Postretirement Benefits | |
Pension and Postretirement Benefits | 6. Employee Benefit Plans Pension Plans and Postretirement Benefits At December 31, 2009, EOG and its subsidiaries in Canada and Trinidad maintained certain defined benefit pension and postretirement medical plans covering certain eligible employees. EOG plan assets and benefit obligations are currently measured as of the date of EOG's fiscal year-end. During 2009, approximately $0.1 million from such plans was amortized from accumulated other comprehensive income through net periodic benefit costs. Pension Plans. EOG has a non-contributory defined contribution pension plan and a matched defined contribution savings plan in place for most of its employees in the United States. EOG's contributions to these pension plans are based on various percentages of compensation and, in some instances, are based upon the amount of the employees' contributions. EOG's total costs recognized for these plans were $22 million, $20 million and $16 million for 2009, 2008 and 2007, respectively. In addition, EOG's Canadian subsidiary maintains both a non-contributory defined benefit pension plan and a non-contributory defined contribution pension plan, as well as a matched defined contribution savings plan. EOG's Trinidadian subsidiary maintains a contributory defined benefit pension plan and a matched savings plan. With the exception of Canada's non-contributory defined benefit pension plan, which is closed to new employees, these pension plans are available to most employees of the Canadian and Trinidadian subsidiaries. EOG's combined contributions to these plans were $2.3 million, $2.7 million and $2.7 million for 2009, 2008 and 2007, respectively. For the Canadian and Trinidadian defined benefit pension plans, the benefit obligation, fair value of plan assets and prepaid/(accrued) benefit cost totaled $9.1 million, $7.7 million and $(0.9) million, respectively, at December 31, 2009 and $6.2 million, $6.2 million and $0.3 million, respectively, at December 31, 2008. Weighted average discount rate, expected return on plan assets, rate of compensation increase and rate of pension increase assumptions used to determine net periodic benefit cost for the pension plans were 7.87%, 7.99%, 5.73% and 1.51%, respectively, at December 31, 2009; 7.90%, 8.05%, 5.80% and 1.46%, respectively, at December 31, 2008 and 6.85%, 7.47%, 5.15% and 1.90%, respectively, at December 31, 2007. Weighted average discount rate, rate of compensation increase and rate of pension increase assumptions used to determine benefit obligations for the pension plans were 5.76%, 4.14% and 1.74%, respectively, for the year ended December 31, 2009 and 7.59%, 5.02% and 1.99%, respectively, for the year ended December 31, 2008. The weighted average asset allocation at December 31, 2009 consisted of equities (46%), debt and fixed income securities (44%) and other assets (10%). The weighted average asset allocation at December 31, 2008 consisted of equities (48%), debt and fixed income securities (44%) and other assets (8%). The fair value of Canada's pension plan assets was $5.0 million at December 31, 2009. Such assets consisted of mutual funds valued using Level 1 inputs, whic |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments and Contingencies | |
Commitments and Contigencies | 7. Commitments and Contingencies Letters of Credit. At December 31, 2009, EOG had standby letters of credit and guarantees outstanding totaling approximately $681 million, of which $407 million represents guarantees of subsidiary indebtedness (see Note 2) and $274 million primarily represents guarantees of payment obligations on behalf of subsidiaries. At December 31, 2008, EOG had standby letters of credit and guarantees outstanding totaling approximately $568 million, of which $445 million represents guarantees of subsidiary indebtedness and $123 million primarily represents guarantees of payment obligations on behalf of subsidiaries. As of February 24, 2010, there were no demands for payment under these guarantees. Minimum Commitments. At December 31, 2009, total minimum commitments from long-term non-cancelable operating leases, drilling rig commitments, seismic purchase and other purchase obligations, and pipeline transportation service commitments, based on current pipeline transportation rates and the foreign currency exchange rates used to convert Canadian dollars and British pounds into United States dollars at December 31, 2009, are as follows (in thousands): Total Minimum Commitments 2010 $ 582,385 2011 - 2012 702,166 2013 - 2014 652,454 2015 and beyond 1,221,976 $ 3,158,981 Included in the table above are leases for buildings, facilities and equipment with varying expiration dates through 2022. Rental expenses associated with existing leases amounted to $77 million, $70 million and $60 million for 2009, 2008 and 2007, respectively. Contingencies. There are currently various suits and claims pending against EOG that have arisen in the ordinary course of EOG's business, including contract disputes, personal injury and property damage claims and title disputes. While the ultimate outcome and impact on EOG cannot be predicted with certainty, management believes that the resolution of these suits and claims will not, individually or in the aggregate, have a material adverse effect on EOG's consolidated financial position, results of operations or cash flow. EOG records reserves for contingencies when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. |
Net Income Per Share Available
Net Income Per Share Available to Common Stockholders | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Earnings Per Share | |
Earnings Per Share | 8. Net Income Per Share Available to Common Stockholders The following table sets forth the computation of Net Income Per Share Available to Common Stockholders for the years ended December 31, 2009, 2008 and 2007 (in thousands, except per share data): 2009 2008 2007 Numerator for Basic and Diluted Earnings per Share - Net Income $ 546,627 $ 2,436,919 $ 1,089,918 Less: Preferred Stock Dividends - 443 6,663 Net Income Available to Common Stockholders $ 546,627 $ 2,436,476 $ 1,083,255 Denominator for Basic Earnings per Share - Weighted Average Shares 248,996 246,662 243,469 Potential Dilutive Common Shares - Stock Options/SARs 1,691 2,629 2,915 Restricted Stock and Restricted Stock Units 1,197 1,251 1,253 Denominator for Diluted Earnings per Share - Adjusted Diluted Weighted Average Shares 251,884 250,542 247,637 Net Income Per Share Available to Common Stockholders Basic $ 2.20 $ 9.88 $ 4.45 Diluted $ 2.17 $ 9.72 $ 4.37 The diluted earnings per share calculation excludes stock options and SARs that were anti-dilutive. The excluded stock options and SARs totaled 2.5 million, 0.1 million and 2.4 million for the years ended December 31, 2009, 2008 and 2007, respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 9. Supplemental Cash Flow Information Cash paid for interest and income taxes, net of refunds received, was as follows for the years ended December31, 2009, 2008 and 2007 (in thousands): 2009 2008 2007 Interest $ 100,939 $ 48,029 $ 38,616 Income Taxes, Net of Refunds Received $ 51,684 $ 94,598 $ 144,234 Non-cash investing and financing activities for the year ended December 31, 2009 included the following (see Note 17): the issuance of 1,450,000 shares of EOG common stock valued at $90 million at the transaction closing date in connection with EOG's purchase of certain proved developed and undeveloped reserves and unproved acreage; non-cash additions to EOG's oil and gas properties in the amount of $353 million in connection with EOG's asset exchange agreement; and non-cash additions to EOG's oil and gas properties in connection with contingent consideration valued at $35 million at December 31, 2009 in connection with EOG's acquisition of certain unproved properties. |
Business Segment Information
Business Segment Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Segment Information | |
Segment Information | 10. Business Segment Information EOG's operations are all natural gas and crude oil exploration and production related. The Segment Reporting Topic of the ASC establishes standards for reporting information about operating segments in annual financial statements. Operating segments are defined as components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. EOG's chief operating decision making process is informal and involves the Chairman of the Board and Chief Executive Officer and other key officers. This group routinely reviews and makes operating decisions related to significant issues associated with each of EOG's major producing areas in the United States, Canada, Trinidad, the United Kingdom and China. For segment reporting purposes, the chief operating decision maker considers the major United States producing areas to be one operating segment. Financial information by reportable segment is presented below as of and for the years ended December31, 2009, 2008 and 2007 (in thousands): United Other States Canada Trinidad International (1) Total 2009 Natural Gas $ 1,540,042 $ 315,792 $ 172,560 $ 22,569 $ 2,050,963 Crude Oil, Condensate and Natural Gas Liquids 1,192,045 98,118 57,089 1,258 1,348,510 Gains on Mark-to-Market Commodity Derivative Contracts 431,757 - - - 431,757 Gathering, Processing and Marketing 407,097 - 19 - 407,116 Gains on Property Dispositions, Net 535,295 141 - - 535,436 Other, Net 9,693 (16) 3,500 - 13,177 Net Operating Revenues (2) 4,115,929 414,035 233,168 23,827 4,786,959 Depreciation, Depletion and Amortization 1,282,180 211,514 47,119 8,375 1,549,188 Operating Income (Expense) 896,937 (31,767) 143,993 (38,322) 970,841 Interest Income 137 612 146 205 1,100 Other Income (Expense) (7,396) 5,212 4,387 (1,232) 971 Net Interest Expense 84,411 28,934 1,332 (13,776) 100,901 Income Before Income Taxes 805,267 (54,877) 147,194 (25,573) 872,011 Income Tax Provision (Benefit) 290,473 (27,073) 57,363 4,621 325,384 Additions to Oil and Gas Properties, Excluding Dry Hole Costs 2,770,482 268,604 31,219 55,235 3,125,540 Total Property, Plant and Equipment, Net 12,769,240 2,740,473 532,989 96,523 16,139,225 Total Assets 14,108,129 2,888,949 813,901 307,688 18,118,667 2008 Natural Gas $ 3,497,620 $ 619,792 $ 285,184 $ 49,462 $ 4,452,058 Crude Oil, Condensate and Natural Gas Liquids 1,552,163 107,915 107,87 |
Risk Management Activities
Risk Management Activities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Risk Management Activities | |
Risk Management Activities | 11. Risk Management Activities Commodity Price Risks. EOG engages in price risk management activities from time to time. These activities are intended to manage EOG's exposure to fluctuations in commodity prices for natural gas and crude oil. EOG utilizes financial commodity derivative instruments, primarily price swap, collar and basis swap contracts, as a means to manage this price risk. In addition to financial transactions, EOG is a party to various physical commodity contracts for the sale of hydrocarbons that cover varying periods of time and have varying pricing provisions. Under the provisions of ASC Topic 815 (Derivatives and Hedging), these physical commodity contracts qualify for the normal purchases and normal sales exception and, therefore, are not subject to hedge accounting or mark-to-market accounting. The financial impact of physical commodity contracts is included in revenues at the time of settlement, which in turn affects average realized hydrocarbon prices. During 2009, 2008 and 2007, EOG elected not to designate any of its financial commodity derivative contracts as accounting hedges and, accordingly, accounted for these financial commodity derivative contracts using the mark-to-market accounting method. During 2009, EOG recognized net gains on mark-to-market financial commodity derivative contracts of $432 million, which included net realized gains of $1,278 million. During 2008, EOG recognized net gains on mark-to-market financial commodity derivative contracts of $598 million, which included net realized losses of $137 million. During 2007, EOG recognized net gains on mark-to-market financial commodity derivative contracts of $93 million, which included net realized gains of $128 million. At December 31, 2009, the fair value of EOG's financial commodity derivative contracts was reflected in the Consolidated Balance Sheets as Current Assets - Assets From Price Risk Management Activities ($21 million), Current Liabilities - Liabilities from Price Risk Management Activities ($27 million) and Other Liabilities ($10 million). At December 31, 2008, the fair value of EOG's financial commodity derivative contracts was reflected in the Consolidated Balance Sheets as Current Assets - Assets From Price Risk Management Activities ($779 million), Other Assets ($57 million), Current Liabilities - Liabilities from Price Risk Management Activities ($4 million) and Other Liabilities ($8 million). Financial Collar Contracts. Presented below is a comprehensive summary of EOG's natural gas financial collar contracts at December 31, 2009. The notional volumes are expressed in million British thermal units per day (MMBtud) and prices are expressed in dollars per million British thermal units ($/MMBtu). The average floor price of EOG's outstanding natural gas financial collar contracts for 2010 is $10.10 per million British thermal units (MMBtu) and the average ceiling price is $12.38 per MMBtu. Natural Gas Financial Collar Contracts Floor Price Ceiling Price Weighted Weighted Average Ceiling Average Volume Floor Range Price Range Price (MMBtud) ($/MMBtu) ( |
Fair Value Measurements
Fair Value Measurements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Fair Value Measurements | |
Fair Value Measurements | 12. Fair Value Measurements Certain of EOG's financial and nonfinancial assets and liabilities are reported at fair value on the accompanying Consolidated Balance Sheets. Effective January 1, 2008, EOG adopted the provisions of the Fair Value Measurements and Disclosures Topic of the ASC (ASC Topic 820) for its financial assets and liabilities. ASC Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC Topic 820 establishes a fair value hierarchy that prioritizes the relative reliability of inputs used in fair value measurements. The hierarchy gives highest priority to Level 1 inputs that represent unadjusted quoted market prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are directly or indirectly observable inputs other than quoted prices included within Level 1. Level 3 inputs are unobservable inputs and have the lowest priority in the hierarchy. ASC Topic 820 requires that an entity give consideration to the credit risk of its counterparties, as well as its own credit risk, when measuring financial assets and liabilities at fair value. EOG adopted the provisions of ASC Topic 820 relating to nonfinancial assets and liabilities effective January 1, 2009. The following table provides fair value measurement information within the hierarchy for certain of EOG's financial assets and liabilities carried at fair value at December 31, 2009 and 2008 (in millions): Fair Value Measurements Using: Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total At December 31, 2009 Financial Assets: Natural gas collars, price swaps and basis swaps $ - $ 21 $ - $ 21 Financial Liabilities: Natural gas collars, price swaps and basis swaps $ - $ 37 $ - $ 37 Foreign currency rate swap - 49 - 49 Contingent consideration (see Note 17) - - 35 35 At December 31, 2008 Financial Assets: Natural gas collars, price swaps and basis swaps $ - $ 836 $ - $ 836 Financial Liabilities: Natural gas collars, price swaps and basis swaps $ - $ 12 $ - $ 12 Foreign currency rate swap - 26 - 26 The estimated fair value of natural gas collar, price swap and basis swap contracts was based upon forward commodity price curves based on quoted market prices. The estimated fair value of the foreign currency rate swap was based upon forward currency rates. In connection with the acquisition of certain unproved acreage in Nacogdoches County, Texas, during the fourth quarter of 2009, EOG could be required to make an additional one-time payment to the sellers contingent u |
Accounting for Certain Long-Liv
Accounting for Certain Long-Lived Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Accounting for Certain Long-Lived Assets | |
Accounting for Certain Long-Lived Assets | 13. Accounting for Certain Long-Lived Assets EOG reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a producing field level to the unamortized capitalized cost of the asset. During 2009, 2008 and 2007, such reviews indicated that unamortized capitalized costs of certain properties were higher than their expected undiscounted future cash flows due primarily to downward reserve revisions, drilling of marginal or uneconomic wells, or development dry holes in certain producing fields. As a result, EOG recorded pretax charges of $90 million, $58 million and $60 million in the United States operating segment during 2009, 2008 and 2007, respectively, and $4 million, $2 million and $22 million in the Canada operating segment during 2009, 2008 and 2007, respectively. Additionally, during 2008, EOG recorded pretax charges of $20 million and $6 million in the Trinidad and United Kingdom operating segments, respectively. The pretax charges are included in Impairments on the Consolidated Statements of Income and Comprehensive Income. The carrying values for assets determined to be impaired were adjusted to estimated fair values based on projected future net cash flows discounted using an appropriate risk-adjusted discount rate. Amortization of unproved oil and gas property costs, including amortization of capitalized interest, was $212 million, $107 million and $66 million for 2009, 2008 and 2007, respectively. |
Asset Retirement Obligations
Asset Retirement Obligations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Asset Retirement Obligations | |
Asset Retirement Obligations | 14. Asset Retirement Obligations The following table presents the reconciliation of the beginning and ending aggregate carrying amounts of short-term and long-term legal obligations associated with the retirement of property, plant and equipment for the years ended December 31, 2009 and 2008 (in thousands): 2009 2008 Carrying Amount at Beginning of Period $ 368,159 $ 211,124 Liabilities Incurred 70,932 58,942 Liabilities Settled (29,920) (18,813) Accretion 24,218 15,356 Revisions (1) 10,564 111,112 Foreign Currency Translations 12,531 (9,562) Carrying Amount at End of Period $ 456,484 $ 368,159 Current Portion $ 29,630 $ 19,459 Noncurrent Portion $ 426,854 $ 348,700 (1) Revisions to asset retirement obligations primarily reflect changes in abandonment cost estimates. The current and noncurrent portions of EOG's asset retirement obligations are included in Current Liabilities - Other and Other Liabilities, respectively, on the Consolidated Balance Sheets. |
Investment in Caribbean Nitroge
Investment in Caribbean Nitrogen Company Limited and Nitrogen (2000) Unlimited | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Investment in Caribbean Nitrogen Company Limited and Nitrogen (2000) Unlimited | |
Investment in Caribbean Nitrogen Company Limited and Nitrogen (2000) Unlimited | 15. Investment in Caribbean Nitrogen Company Limited and Nitrogen (2000) Unlimited EOG, through certain wholly-owned subsidiaries, owns equity interests in two Trinidadian companies: Caribbean Nitrogen Company Limited (CNCL) and Nitrogen (2000) Unlimited (N2000). At December 31, 2009, EOG's equity interests in CNCL and N2000 were 12% and 10%, respectively. At December 31, 2009, the investment in CNCL was $22 million. CNCL commenced ammonia production in June 2002. At December 31, 2009, CNCL had a long-term debt balance of $59 million, which is non-recourse to CNCL's shareholders. EOG would be liable for its share of any post-completion deficiency funds, loans to fund the costs of operation, payment of principal and interest to the principal creditor and other cash deficiencies of CNCL up to $15 million, approximately $2 million of which is net to EOG's interest. Since inception, there have been no borrowings under this agreement. The shareholders' agreement governing CNCL requires the consent of the holders of 90% or more of the shares to take certain material actions. Accordingly, given its current level of equity ownership, EOG is able to exercise significant influence over the operating and financial policies of CNCL and, therefore, it accounts for the investment using the equity method. During 2009, EOG recognized equity income of $0.5 million and received cash dividends of $3 million from CNCL. At December 31, 2009, the investment in N2000 was $19 million. N2000 commenced ammonia production in August 2004. At December 31, 2009, N2000 had a long-term debt balance of $74 million, which is non-recourse to N2000's shareholders. EOG would be liable for its share of any post-completion deficiency funds, loans to fund the costs of operation, payment of principal and interest to the principal creditor and other cash deficiencies of N2000 up to $15 million, approximately $2 million of which is net to EOG's interest. Since inception, there have been no borrowings under this agreement. The shareholders' agreement governing N2000 requires the consent of the holders of 100% of the shares to take certain material actions. Accordingly, given its current level of equity ownership, EOG is able to exercise significant influence over the operating and financial policies of N2000 and, therefore, it accounts for the investment using the equity method. During 2009, EOG recognized equity income of $3 million and received cash dividends of $4 million from N2000. |
Suspended Well Costs
Suspended Well Costs | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Suspended Well Costs | |
Suspended Well Costs | 16. Suspended Well Costs EOG's net changes in suspended well costs for the years ended December 31, 2009, 2008 and 2007 are presented below (in thousands): Year Ended December 31, 2009 2008 2007 Balance at January 1 $ 85,255 $ 148,881 $ 77,365 Additions Pending the Determination of Proved Reserves 75,362 96,698 132,993 Reclassifications to Proved Properties (40,614) (120,110) (23,716) Charged to Dry Hole Costs (11,223) (22,116) (18,232) Foreign Currency Translations 9,679 (18,098) 6,105 Other - - (25,634) (1) Balance at December 31 $ 118,459 $ 85,255 $ 148,881 (1) During 2007, EOG decided to no longer participate in the further evaluation of the Northwest Territories discovery and sold all of its interest to the outside operator for $5 million. Prior to the sale, EOG recorded an impairment charge of approximately $21 million. The following table provides an aging of suspended well costs at December 31, 2009, 2008 and 2007 (in thousands, except well count): Year Ended December 31, 2009 2008 2007 Capitalized exploratory well costs that have been capitalized for a period less than one year $ 51,141 $ 31,784 $ 97,624 Capitalized exploratory well costs that have been capitalized for a period greater than one year 67,318 (1) 53,471 (2) 51,257 (3) Total $ 118,459 $ 85,255 $ 148,881 Number of exploratory wells that have been capitalized for a period greater than one year 4 3 2 (1) Consists of costs related to three shale projects in British Columbia, Canada (B.C.) ($45 million) and an outside operated, offshore Central North Sea project in the United Kingdom (U.K.) ($22 million). In the B.C. shale projects, EOG is currently evaluating infrastructure alternatives for delivery of product. In the Central North Sea project, EOG is currently evaluating an export route for production from the project. The operator expects to submit a revised field development plan to the U.K. Department of Energy and Climate Change during the second quarter of 2010 and anticipates approval in late 2010. (2) Costs related to two shale projects in British Columbia, Canada (B.C.) ($35 million) and an outside operated, offshore Central North Sea project in the United Kingdom ($19 million). (3) Costs related to a shale project in B.C. ($38 million) and an outside operated, offshore Central North Sea project in the United Kingdom ($13 million). |
Property Acquisitions and Dives
Property Acquisitions and Divestitures | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Property Acquisitions and Divestitures | |
Property Acquisitions and Divestitures | 17. Property Acquisitions and Divestitures In December 2009, EOG and a third party entered into an asset exchange agreement whereby the two parties exchanged certain natural gas related properties in the Rocky Mountain area. In accordance with provisions of ASC Topic 805 (Business Combinations), EOG realized a pretax gain of $390 million on the exchange to reflect the excess of the fair value of the properties received over the book basis of the properties given up in the transaction (see Note 12). In November 2009, EOG entered into an agreement to sell its crude oil and natural gas related assets located in California for consideration of $202 million subject to customary adjustments under the agreement. The assets sold accounted for less than 1% of EOG's total 2009 production. The transaction closed on December 10, 2009. EOG realized a pretax gain of approximately $146 million on the sale. In October 2009, EOG entered into an agreement to acquire unproved acreage located in Nacogdoches County, Texas within the Haynesville and Bossier Shale formations (Haynesville Assets). EOG acquired a portion of the unproved acreage at the principal and supplemental closings held in October 2009 and December 2009, respectively. The acquisition agreement provides for an additional one-time supplemental cash payment to the sellers of the Haynesville Assets that is contingent on the satisfaction of certain conditions (within a five-year period beginning on the principal closing date) set forth in the acquisition agreement with respect to future natural gas prices. EOG estimated the fair value of the contingent consideration as of the acquisition dates in accordance with the provisions of the ASC Topic 805 and has included such amount in Other Liabilities on the Consolidated Balance Sheets. The fair value of such contingent consideration was $35 million at December 31, 2009 (see Note 12). The aggregate consideration recorded in 2009 for the acquisition of the Haynesville Assets was $134 million, including the contingent consideration. During the third quarter of 2009, EOG completed three transactions to acquire certain crude oil and natural gas properties and related assets located in Montague and Cooke Counties, Texas (Barnett Shale Combo Assets). The Barnett Shale Combo Assets consist of proved developed and undeveloped reserves and unproved acreage. The aggregate purchase price of the transactions totaled $197 million, consisting of cash consideration of $107 million and 1,450,000 shares of EOG common stock valued at $89.6 million on the closing date of the applicable transaction. In February 2008, EOG completed a sale of the majority of its producing shallow gas assets and surrounding acreage in the Appalachian Basin to a subsidiary of EXCO Resources, Inc., an independent oil and gas company. The Appalachian area divested included approximately 2,400 operated wells that accounted for approximately 1% of EOG's total 2007 production and approximately 2% of its total year-end 2007 proved reserves. Proceeds on the sale totaled $386 million and EOG realized a pretax gain of $128 million on the sale. |
Supplemental Information to Con
Supplemental Information to Consolidated Financial Statements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Supplemental Oil and Gas Information | |
Supplemental Oil and Gas Information (Unaudited) | SUPPLEMENTAL INFORMATION TO CONSOLIDATED FINANCIAL STATEMENTS (In Thousands, Except Per Share Data Unless Otherwise Indicated) (Unaudited) Oil and Gas Producing Activities In December 2008, the United States Securities and Exchange Commission (SEC) released a final rule, Modernization of Oil and Gas Reporting, which amends the oil and gas reporting requirements effective January 1, 2010. The key revisions include: using a 12-month average price to determine reserves; including nontraditional resources in reserves if they are intended to be upgraded to synthetic oil and gas; the ability to use reliable technologies to determine and estimate reserves; permitting the optional disclosure of probable and possible reserves; reporting the independence and qualifications of the reserve preparer or auditor and filing a report as an exhibit when a third party is relied upon to prepare reserve estimates or conduct reserve audits; and disclosing the development of any proved undeveloped reserves, including the total quantity of proved undeveloped reserves at year-end, material changes to proved undeveloped reserves during the year, investments and progress toward the development of proved undeveloped reserves and an explanation of the reasons why material concentrations of proved undeveloped reserves have remained undeveloped for five years or more after disclosure as proved undeveloped reserves In January 2010, the Financial Accounting Standards Board (FASB) issued FASB Accounting Standards Update (ASU) No. 2010-03, Oil and Gas Reserve Estimations and Disclosures (ASU No. 2010-03). This update aligns the current oil and gas reserve estimation and disclosure requirements of the Extractive Industries - Oil and Gas topic of the FASB Accounting Standards Codification (ASC Topic 932) with the changes required by the SEC final rule, Modernization of Oil and Gas Reporting. ASU No. 2010-03 must be applied prospectively as a change in accounting principle that is inseparable from a change in accounting estimate and is effective for entities with annual reporting periods ending on or after December 31, 2009. Oil and Gas Reserves. Users of this information should be aware that the process of estimating quantities of proved, proved developed and proved undeveloped natural gas and liquids reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history and continual reassessment of the viability of production under varying economic conditions. Consequently, material revisions (upward or downward) to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure that reserve estimates reported represent the most accurate assessments possible, the significance of the subjective decisions required and variances in available data for various reservoirs make these estimates generally less prec |
Supplemental Unaudited Quarterl
Supplemental Unaudited Quarterly Financial Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Supplemental Unaudited Quarterly Financial Information | |
Supplemental Unaudited Quarterly Financial Information | SUPPLEMENTAL INFORMATION TO CONSOLIDATED FINANCIAL STATEMENTS (Concluded) Unaudited Quarterly Financial Information (In Thousands, Except Per Share Data) Quarter Ended Mar 31 Jun 30 Sep 30 Dec 31 2009 Net Operating Revenues $ 1,158,209 $ 861,039 $ 1,006,849 $ 1,760,862 Operating Income $ 281,412 $ 18 $ 35,303 $ 654,108 Income Before Income Taxes $ 264,775 $ (23,556) $ 4,557 $ 626,235 Income Tax Provision 106,065 (6,850) 361 225,808 Net Income Available to Common Stockholders $ 158,710 $ (16,706) $ 4,196 $ 400,427 Net Income Per Share Available to Common Stockholders (1) Basic $ 0.64 $ (0.07) $ 0.02 $ 1.60 Diluted $ 0.63 $ (0.07) $ 0.02 $ 1.58 Average Number of Common Shares Basic 247,991 248,207 249,535 250,127 Diluted 250,204 248,207 252,422 253,493 2008 Net Operating Revenues $ 1,134,018 $ 1,095,512 $ 3,263,886 $ 1,633,727 Operating Income $ 380,720 $ 243,103 $ 2,392,183 $ 751,179 Income Before Income Taxes $ 370,112 $ 247,383 $ 2,393,952 $ 735,092 Income Tax Provision 129,156 69,177 837,667 273,620 Net Income 240,956 178,206 1,556,285 461,472 Preferred Stock Dividends (2) 443 - - - Net Income Available to Common Stockholders $ 240,513 $ 178,206 $ 1,556,285 $ 461,472 Net Income Per Share Available to Common Stockholders (1) Basic $ 0.98 $ 0.72 $ 6.30 $ 1.86 Diluted $ 0.96 $ 0.71 $ 6.20 $ 1.84 Average Number of Common Shares Basic 245,430 246,536 247,155 247,672 Diluted 249,763 251,135 250,930 250,162 (1) The sum of quarterly net income per share available to common stockholders may not agree with total year net income per share available to common stockholders as each quarterly computation is based on the weighted average of common shares outstanding. (2) Includes premium and fees associated with the repurchase of preferred stock in the first quarter of 2008. See Note 3 to Consolidated Financial Statements. |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Schedule of Valuation and Qualifying Accounts | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II EOG RESOURCES,INC. VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December31, 2009, 2008 and 2007 (In Thousands) Column A Column B Column C Column D Column E Additions Balance at Charged to Deductions Balance at Beginning of Costs and From End of Description Year Expenses Reserves Year 2009 Allowance deducted from Accounts Receivable $ 13,131 $ 145 $ 48 $ 13,228 2008 Allowance deducted from Accounts Receivable $ 16,019 $ 57 $ 2,945 $ 13,131 2007 Allowance deducted from Accounts Receivable $ 17,299 $ 16 $ 1,296 $ 16,019 |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Information | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 19, 2010
| Jun. 30, 2009
| |
Entity Information | |||
Entity Registrant Name | EOG RESOURCES INC | ||
Entity Central Index Key | 0000821189 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $16,923,094,790 | ||
Entity Common Stock, Shares Outstanding | 252,578,053 |