EOG Resources

EOG Resources is a Fortune 500 company with its headquarters in the Heritage Plaza building in downtown Houston, Texas. The company is one of the largest independent oil and natural gas companies in the United States with proven reserves in the United States, Canada, Trinidad and Tobago, the United Kingdom, and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG".

History

1999

Enron Oil and Gas declared independence from Enron and changed its named to EOG Resources, Inc. (EOG). EOG elected Mark G. Papa Chairman Chief Executive Officer and named Edmund P. Segner as President and Chief of Staff.
As of December 31, 1999, EOG had net proved reserves of 3.6 trillion cubic feet (1.0×10¹¹ m³) equivalent.
Reserve replacement for 1999 from all sources, including acquisitions and dispositions, was 136 percent. Reserve replacement from drilling activities alone was 109 percent.
About 87 percent of EOG’s production in 1999 came from North America.
Property exchange transactions with Burlington Resources and OXY USA Inc. significantly added prospect inventory in the Oklahoma Panhandle, Permian Basin, East Texas and North Louisiana.^[5]

2000

EOG’s stock appreciated 211 percent, more than tripling in price. EOG was ranked as the third best performer in Standard and Poor’s 500 Index.
EOG was the second most active driller in the US.
On a per share basis, compared to as-adjusted 1999, EOG’s total production increased 8.9 percent. Production in North America increased 8 percent.
The annual common stock dividend increased from $.12 per share to $.14 per share.
Standard & Poor’s 500 Index added EOG to its oil and gas industry group after the close of trading on November 1, 2000.
EOG opened its ninth division office in Pittsburgh, Pennsylvania to focus on opportunities in the Appalachian Basin.
EOG and Calpine Corporation signed the first of its kind one-year marketing agreement that linked the daily price of natural gas to the price of electricity.
EOG signed a 15-year natural gas supply contract for approximately 60×10^⁶ cu ft/d (1,700,000 m³/d) with the National Gas Company of Trinidad and Tobago Limited (NGC) to supply an ammonia plant from the U(a) block.^[5]

2001

EOG reported record net income available to common of $387.6 million, or $3.30 per share.
Return on common shareholders’ equity was 28.4 percent for the year. For the five-year period, 1997-2001, the average return was 25.5 percent.
EOG replaced 201 percent of production from all sources at a finding cost of $1.36 per thousand cu ft equivalent.
Reserves increased by 11 percent to 4,229 billion cubic feet (1.198×10¹¹ m³) equivalent.
For the seventh consecutive year, EOG reduced the number of its basic shares outstanding to 115.1 million.
EOG’s debt to total capitalization ratio, one of the lowest in the industry, improved to 34 percent.
The common stock dividend increased by $.02 to $.16 per share.^[5]

2002

EOG’s total reserves increased by 9 percent to approximately 4.6 trillion cubic feet (1.3×10¹¹ m³) equivalent.
From all sources, EOG replaced 193 percent of production at a finding cost of $1.06 per thousand cubic feet equivalent. Reserve replacement in North America was 158 percent with a total all–in finding cost of $1.42, down 10 percent from 2001. From drilling alone, EOG replaced 160 percent of production at a finding cost of $1.17 per thousand cu ft equivalent.
In Canada, EOG increased total Canadian production 23 percent and natural gas production 22 percent, as compared to 2001.
In Trinidad, EOG announced the Parula natural gas discovery, added two new offshore exploration blocks, successfully started up the CNC Ammonia Plant and signed a 25-year extension on the offshore SECC Block.
For the eighth consecutive year, EOG reduced the number of shares outstanding. After repurchasing 0.7 million shares of common stock, net of option exercises, stock plans and other increases, EOG had 114.4 million basic shares outstanding at December 31.^[5]

2003

EOG delivered net income available to common of $419.1 million, or $3.60 per share as compared to $76.1 million, or $0.65 per share for the full year 2002.
At December 31, 2003, total company reserves were approximately 5.2 trillion cubic feet (1.5×10¹¹ m³) equivalent, an increase of 614 billion cubic feet (1.74×10¹⁰ m³) equivalent, or 13 percent higher than 2002.
EOG’s total reserve replacement from all sources was 249 percent of production and total company all-in finding costs were $1.28 per thousand cubic feet equivalent. From drilling alone, EOG replaced 183 percent of production at a finding cost of $1.21 per thousand cu ft equivalent.
EOG closed the largest acquisition in its history with the purchase of primarily natural gas properties in southeast Alberta, Canada for approximately US $320 million. EOG also established a new international venue in the Southern Gas Basin of the United Kingdom North Sea.
EOG’s annual common stock dividend increased by 25 percent to $0.20 per share, effective July 31, 2003, the third dividend increase in four years.
At December 31, 2003, EOG’s debt-to-total capitalization ratio was 33.3 percent, down from 40.6 percent at year-end 2002.^[5]

2004

For the full year 2004, EOG reported net income available to common of $614 million, compared to $419 million for 2003.
At December 31, 2004, total company reserves were approximately 5.6 trillion cubic feet (1.6×10¹¹ m³) equivalent, an increase of 430 billion cubic feet (1.2×10¹⁰ m³) equivalent, or 8 percent higher than 2003. From drilling alone, EOG added 850×10^⁹ cu ft (2.4×10¹⁰ m³) equivalent of reserves.
During 2004, total company production increased 10.4 percent on a daily basis, compared to 2003.
At year-end, EOG had approximately 400,000 acres (1,600 km²) under lease in the Texas Barnett Shale Play with net natural gas production reaching 30×10^⁶ cu ft/d (850,000 m³/d) during December.
In the United Kingdom North Sea, in the fourth quarter of 2004 and the first quarter of 2005, EOG commenced production from two Southern Gas Basin wells, EOG’s first producing assets in that region.
In Trinidad, total 2004 production increased 25 percent, compared to 2003. EOG began natural gas sales to the Nitro 2000 (N2000) Ammonia Plant in mid-2004.^[5]

2005

For 2005, EOG reported net income available to common of $1,252 million as compared to $614 million for 2004.
EOG’s total company production increased 16.2 percent on a daily basis in 2005 as compared to 2004. For 2006, EOG is targeting a 10.5 percent total production increase.
At December 31, 2005, total company reserves were approximately 6.2×10^¹² cu ft (1.8×10¹¹ m³) equivalent, an increase of 548×10^⁹ cu ft (1.55×10¹⁰ m³) equivalent, or almost 10 percent higher than 2004. From drilling alone, EOG added 1,046×10^⁹ cu ft (2.96×10¹⁰ m³) equivalent of reserves.
In Trinidad during 2005, EOG commenced natural gas production to supply feedstock for the M5000 Methanol Plant, which began operation in September, and Atlantic LNG Train 4, which started taking gas in December prior to plant commissioning.
EOG reported its first full year of production in 2005 from the United Kingdom North Sea. It averaged 40×10^⁶ cu ft/d (1,100,000 m³/d) equivalent.
A two-for-one stock split in the form of a stock dividend, announced in February 2005, was effective March 1, 2005. EOG’s annual common stock dividend increased by 33 percent to an indicated annual rate of $0.16 per share, payable to shareholders of record at March 15, 2005, the fifth dividend increase in six years.^[5]

2006

In 2006, EOG reported net income available to common of $1,289 million as compared to $1,252 million for 2005.
EOG’s overall organic year-over-year production increased 9 percent and United States natural gas production grew 14 percent. The Fort Worth Basin Barnett Shale, Northeastern Utah Uinta Basin and South Texas Frio and Lobo Plays led the production increases.
At December 31, 2006, total company reserves were approximately 6.8×10^¹² cu ft (1.9×10¹¹ m³) equivalent, an increase of 607×10^⁹ cu ft (1.72×10¹⁰ m³) equivalent, or 10 percent higher than year-end 2005. From drilling alone, EOG added 1,414×10^⁹ cu ft (4.00×10¹⁰ m³) equivalent of reserves.
EOG’s results from the Fort Worth Basin Barnett Shale Play continue to exceed expectations. Production at year-end 2006 was 206×10^⁶ cu ft/d (5,800,000 m³/d), exceeding the original year-end goal of 155×10^⁶ cu ft/d (4,400,000 m³/d).
EOG further reduced long-term debt outstanding to $733 million at December 31, 2006. EOG repurchased $47 million of preferred stock, leaving $53 million outstanding. The company’s debt-to-total capitalization ratio was 12 percent at December 31, 2006, down from 19 percent at December 31, 2005.
Following a 33 percent increase in 2005, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 28, 2006 to record holders as of April 13, 2006, the quarterly dividend on the common stock was increased $0.06 per share. This reflects a 50 percent increase from 2005 to an indicated annual rate of $0.24 per share, the sixth increase in seven years.^[5]
In 2006 EOG Resources announced that it was moving its headquarters from Three Allen Center to the Heritage Plaza. The firm signed a 15-year lease for 200,000 square feet (19,000 m²). The firm planned to move around 400 employees from Three Allen Center to Heritage around early 2007.

2007

In 2007, EOG reported net income available to common of $1,083 million as compared to $1,289 million for 2006.
EOG’s overall organic year-over-year production increased 11 percent and United States natural gas production grew 19 percent. The Fort Worth Basin Barnett Shale, East Texas and Rocky Mountain areas led the production increases.
Crude oil and condensate production grew by 11 percent over the prior year with the most significant increase recorded in the North Dakota Bakken Play. Natural gas liquids increased 31 percent over 2006 with excellent results from the Fort Worth, South Texas and Rocky Mountain operating areas.
At December 31, 2007, total company reserves were approximately 7.7×10^¹² cu ft (2.2×10¹¹ m³) equivalent, an increase of 944×10^⁹ cu ft (2.67×10¹⁰ m³) equivalent, or 14 percent higher than year-end 2006. From drilling alone, EOG added 1,534×10^⁹ cu ft (4.34×10¹⁰ m³) equivalent of reserves.
EOG maintained a conservative balance sheet, ending the year with a debt-to-total capitalization ratio of 14 percent. Recognizing the company’s strong financial position, Standard and Poor’s Credit Rating Services upgraded EOG to A–.
Following a 50 percent increase in 2006, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2007 to record holders as of April 16, 2007, the quarterly dividend on the common stock will be $0.09 per share. This reflects a 50 percent increase from 2006 to an indicated annual rate of $0.36 per share, the seventh increase in eight years.
EOG was named to Fortune’s 2007 list of “The 100 Best Companies to Work For”, the first year it was eligible for consideration.^[5]

2008

In 2008, EOG reported net income available to common stockholders of $2,436 million as compared to $1,083 million for 2007.
EOG’s overall production increased 15 percent year–over–year — all organic.
Crude oil and condensate production increased 46 percent overall, driven primarily by continued drilling success from the North Dakota Bakken Play.
At December 31, 2008, total company reserves were approximately 8.7×10^¹² cu ft (2.5×10¹¹ m³) equivalent, an increase of 944×10^⁹ cu ft (2.67×10¹⁰ m³) equivalent, or 12 percent higher than year–end 2007.
EOG maintained a conservative balance sheet, ending the year with a debt–to–total capitalization ratio of 17 percent.
Following a 33 percent increase in the common stock dividend in February, EOG’s Board of Directors increased the cash dividend on the common stock for the second time in 2008. Effective with the dividend payable on October 31, 2008 to holders of record as of October 17, 2008, the quarterly dividend on the common stock will be $0.135 per share. The indicated annual rate of $0.54 reflects a 12.5 percent increase from the previously stated rate, the ninth increase in nine years.
EOG was named to Fortune’s list of “The 100 Best Companies to Work For” in both 2007 and 2008, the two consecutive years it has been eligible for consideration.^[5]

2009

For 2009, EOG reported net income available to common stockholders of $546.6 million as compared to $2,436.5 million for 2008.
EOG delivered 6.5 percent year–over–year total company organic production growth.
Total North American liquids production increased 30 percent: 23 percent growth in crude oil and condensate and 48 percent in natural gas liquids, driven by ongoing exploration and development drilling in the North Dakota Bakken and Fort Worth Barnett Shale Combo Plays.
Total company proved reserves were approximately 10.8×10^¹² cu ft (3.1×10¹¹ m³) equivalent, an increase of 2,087×10^⁹ cu ft (5.91×10¹⁰ m³) equivalent, or 24 percent higher than year–end 2008.
EOG maintained a conservative balance sheet, ending the year with a net debt–to–total capitalization ratio of 17 percent.
Following two increases during 2008, the EOG Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2009 to holders of record as of April 16, 2009, the quarterly dividend on the common stock will be $0.145 per share, an increase of 7 percent over the previous indicated annual rate. The current indicated annual rate of $0.58 per share is the tenth increase in 10 years.
EOG was named to Fortune’s list of “The 100 Best Companies to Work For” in 2009 for the third consecutive year it has been eligible for consideration.
The first train to transport crude oil for EOG Resources, Inc. and its subsidiary companies departed Stanley, North Dakota on December 31, 2009.^[5]

2010

For the full year 2010, EOG reported net income of $160.7 million as compared to $546.6 million for 2009. For the first year in EOG's history, total revenues generated from crude oil, condensate and natural gas liquids production exceeded those from natural gas.
Continuing its transition to a more heavily weighted liquids portfolio, EOG secured a 520,000 acres (2,100 km²) net position in the mature oil window of the South Texas Eagle Ford Play that has an estimated reserve potential of 900 Mbbl (140,000,000 m³) equivalent, net after royalty, 77 percent of which is crude oil.
Development drilling activity increased in crude oil plays such as the North Dakota Bakken/Three Forks in the Williston Basin and the Fort Worth Barnett Shale Combo. Strong positions in the Leonard Shale in the Permian Basin, as well as the Denver-Julesberg Basin Horizontal Niobrara, were added to EOG’s cadre of liquids-rich assets.
EOG reported 9.5 percent year-over-year total company organic production growth. Total company liquids production increased 33 percent last year, driven by a 35 percent increase in crude oil and condensate production, all organic.
Led by exploration and development drilling in its North Dakota Bakken/Three Forks and South Texas Eagle Ford Plays, 53 percent of North American revenues came from liquids and 47 percent from natural gas. This compares to 24 percent and 76 percent, respectively, when the transition to liquids began four years ago.
Following an increase in the common stock dividend in 2009, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2010 to holders of record as of April 16, 2010, the quarterly dividend on the common stock will be $0.155 per share, an increase of 7 percent over the previous indicated annual rate. The current indicated annual rate of $0.62 per share is the 11th increase in 11 years.
EOG was named to Fortune’s list of “The 100 Best Companies to Work For” in 2010 for the fourth consecutive year it has been eligible for consideration.
The first train to transport crude oil for EOG Resources, Inc. and its subsidiary companies arrived in Stroud, Oklahoma on January 3, 2010.^[5]

2011

EOG has targeted full year 49 percent total liquids growth and 9.5 percent total company organic production growth for 2011, based on the strong performance of its North American liquids plays.
EOG expanded its inventory of organic horizontal liquids plays with first-mover drilling success in the West Texas Permian Basin Wolfcamp Shale.
Following an increase in the common stock dividend in 2010, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 29, 2011 to holders of record as of April 15, 2011, the quarterly dividend on the common stock will be $0.16 per share, an increase of 3 percent over the previous indicated annual rate. The current indicated annual rate of $0.64 per share reflects the 12th increase in 12 years.
EOG was named to FORTUNE’s list of “100 Best Companies to Work For“ for the fifth consecutive year it has been eligible for consideration.^[5]

References

^ [1]
^ ^a ^b EOG Resources: FactSheet
^ Google Finance: EOG
^ EOG Resources: Area of Operations
^ ^a ^b ^c ^d ^e ^f ^g ^h ⁱ ^j ^k ^l ^m EOG Resources, Company History.

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References

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