USA: EOG Profit Climbs

EOG Resources today reported fourth quarter 2011 net income of $120.7 million.

This compares to fourth quarter 2010 net income of $53.7 million. For the full year 2011, EOG reported net income of $1,091.1 million, as compared to $160.7 million for the full year 2010.

Highlights

• Achieves 9.4 Percent Year-Over-Year Total Company Production Growth
• Reports 52 Percent North American Annual Crude Oil, Condensate and Natural Gas Liquids Growth with 48 Percent Increase in Total Company Liquids Volumes Year-Over-Year

• Delivers Strong Year-Over-Year Growth in EPS, EBITDAX and Discretionary Cash Flow

• Increases Eagle Ford Potential Recoverable Reserve Estimate by 78 Percent — from 900 MMboe to 1,600 MMboe, Net After Royalty

• Realizes Continued Drilling Success in Permian Basin Wolfcamp and Leonard Shale

• Raises Total Company Proved Reserves 5.3 Percent at Attractive Finding Costs

• Increases 2012 Total Company Organic Liquids Growth Target from 27 Percent to 30 Percent

• Raises Dividend on Common Stock for 13th Time in 13 Years

Consistent with some analysts’ practice of matching realizations to settlement months, and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income for the quarter was $309.0 million. Adjusted non-GAAP net income for the fourth quarter 2010 was $92.0 million. The results for the fourth quarter 2011 included a $249.1 million, net of tax impairment of certain North American non-core natural gas assets, gains on asset dispositions of $33.3 million, net of tax, the write-off of fees associated with revolving credit facilities of $3.7 million, net of tax and a previously disclosed non-cash net gain of $145.5 million ($93.2 million after tax) on the mark-to-market of financial commodity contracts. During the quarter, the net cash inflow related to financial commodity contracts was $96.9 million ($62.0 million after tax).

Adjusted non-GAAP net income for the full year 2011 was $1,008.5 million, and for the full year 2010 was $296.4 million.

“EOG had an exceptional year in 2011 with a 551 percent increase in earnings per share versus 2010. This solidifies the completion of our goal of becoming an oil company. These strong returns are one of the traditional hallmarks of EOG,” said Mark G. Papa, Chairman and Chief Executive Officer.

[mappress]

LNG World News Staff, February 17, 2012