EOG Resources Inc. (EOG, Financial) filed Quarterly Report for the period ended 2010-09-30.
Eog Resources Inc. has a market cap of $24.31 billion; its shares were traded at around $96.07 with a P/E ratio of 40.4 and P/S ratio of 5.1. The dividend yield of Eog Resources Inc. stocks is 0.7%. Eog Resources Inc. had an annual average earning growth of 17.4% over the past 10 years. GuruFocus rated Eog Resources Inc. the business predictability rank of 4.5-star.EOG is in the portfolios of Chris Davis of Davis Selected Advisers, Stanley Druckenmiller of Duquesne Capital Management, LLC, Westport Asset Management, PRIMECAP Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Tom Gayner of Markel Gayner Asset Management Corp, Paul Tudor Jones of The Tudor Group, Mario Gabelli of GAMCO Investors, Kenneth Fisher of Fisher Asset Management, LLC, Wallace Weitz of Weitz Wallace R & Co, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Net Operating Revenues. During the third quarter of 2010, net operating revenues increased $575 million, or 57%, to $1,582 million from $1,007 million for the same period of 2009. Total wellhead revenues, which are revenues generated from sales of EOG's production of natural gas, crude oil and condensate and natural gas liquids, for the third quarter of 2010 increased $367 million, or 43%, to $1,216 million from $849 million for the same period of 2009. During the third quarter of 2010, EOG recognized net gains on the mark-to-market of financial commodity derivative contracts of $61 million compared to net gains of $21 million for the same period of 2009. Gathering, processing and marketing revenues, which are revenues generated from sales of third-party natural gas, crude oil and condensate and natural gas liquids as well as gathering fees associated with gathering third-party natural gas, for the third quarter of 2010 increased $99 million, or 74%, to $234 million from $135 million for the same period of 2009. Gains (losses) on property dispositions of $65 million for the third quarter of 2010 primarily consist of gains on property dispositions in the Rocky Mountain area.
Wellhead crude oil and condensate revenues for the third quarter of 2010 increased $177 million, or 54%, to $507 million from $330 million for the same period of 2009, due to an increase of 18 MBbld, or 30%, in wellhead crude oil and condensate deliveries ($103 million) and a higher composite average wellhead crude oil and condensate price ($74 million). The increase in deliveries primarily reflects increased production in Texas (8 MBbld), North Dakota (5 MBbld), Trinidad (2 MBbld) and Colorado (2 MBbld). EOG's composite average wellhead crude oil and condensate price for the third quarter of 2010 increased 17% to $70.96 per barrel compared to $60.65 per barrel for the same period of 2009.
Natural gas liquids revenues for the third quarter of 2010 increased $38 million, or 56%, to $107 million from $69 million for the same period of 2009, due to an increase of 8 MBbld, or 32%, in natural gas liquids deliveries ($22 million) and a higher composite average price ($16 million). The increase in deliveries primarily reflects increased volumes in the Fort Worth Basin Barnett Shale area. EOG's composite average natural gas liquids price for the third quarter of 2010 increased 18% to $36.66 per barrel compared to $31.14 per barrel for the same period of 2009.
Lease and well expenses of $181 million for the third quarter of 2010 increased $39 million from $142 million for the same prior year period primarily due to higher operating and maintenance expenses in the United States ($19 million) and Canada ($7 million), increased lease and well administrative expenses in the United States ($8 million), increased workover expenditures in the United States ($3 million) and unfavorable changes in the Canadian exchange rate ($2 million).
DD&A expenses for the third quarter of 2010 increased $116 million to $501 million from $385 million for the same prior year period. DD&A expenses associated with oil and gas properties for the third quarter of 2010 were $114 million higher than the same prior year period primarily due to higher unit rates in the United States ($49 million), Canada ($20 million), Trinidad ($5 million) and China ($3 million); unfavorable changes in the Canadian exchange rate ($4 million); and increased production in the United States ($35 million) and Trinidad ($3 million); partially offset by decreased production in Canada ($3 million).
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Eog Resources Inc. has a market cap of $24.31 billion; its shares were traded at around $96.07 with a P/E ratio of 40.4 and P/S ratio of 5.1. The dividend yield of Eog Resources Inc. stocks is 0.7%. Eog Resources Inc. had an annual average earning growth of 17.4% over the past 10 years. GuruFocus rated Eog Resources Inc. the business predictability rank of 4.5-star.EOG is in the portfolios of Chris Davis of Davis Selected Advisers, Stanley Druckenmiller of Duquesne Capital Management, LLC, Westport Asset Management, PRIMECAP Management, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Tom Gayner of Markel Gayner Asset Management Corp, Paul Tudor Jones of The Tudor Group, Mario Gabelli of GAMCO Investors, Kenneth Fisher of Fisher Asset Management, LLC, Wallace Weitz of Weitz Wallace R & Co, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Capital Structure. One of management's key strategies is to maintain a strong balance sheet with a consistently below average debt-to-total capitalization ratio as compared to those in EOG's peer group. EOG's debt-to-total capitalization ratio was 27% at September 30, 2010 compared to 22% at December 31, 2009. As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity. On May 20, 2010, EOG completed its public offering of $500 million aggregate principal amount of 2.95% Senior Notes due 2015 and $500 million aggregate principal amount of 4.40% Senior Notes due 2020 (together, Notes). Interest on the Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2010. Net proceeds from the offering of approximately $990 million were used for general corporate purposes, including the repayment of outstanding commercial paper borrowings. In September 2010, EOG entered into an additional $1.0 billion unsecured Revolving Credit Agreement with domestic and foreign lenders (2010 Agreement). The 2010 Agreement matures on September 10, 2013. At September 30, 2010, there were no borrowings or letters of credit outstanding under the 2010 Agreement. See Note 11 to the Consolidated Financial Statements. During the first nine months of 2010, EOG funded $4.1 billion in exploration and development and other property, plant and equipment expenditures, paid $114 million in dividends to common stockholders and repaid $37 million of long-term debt, primarily by utilizing cash provided from its operating activities, cash on hand, proceeds from the offering of the Notes, proceeds from sales of assets and commercial paper borrowings.Net Operating Revenues. During the third quarter of 2010, net operating revenues increased $575 million, or 57%, to $1,582 million from $1,007 million for the same period of 2009. Total wellhead revenues, which are revenues generated from sales of EOG's production of natural gas, crude oil and condensate and natural gas liquids, for the third quarter of 2010 increased $367 million, or 43%, to $1,216 million from $849 million for the same period of 2009. During the third quarter of 2010, EOG recognized net gains on the mark-to-market of financial commodity derivative contracts of $61 million compared to net gains of $21 million for the same period of 2009. Gathering, processing and marketing revenues, which are revenues generated from sales of third-party natural gas, crude oil and condensate and natural gas liquids as well as gathering fees associated with gathering third-party natural gas, for the third quarter of 2010 increased $99 million, or 74%, to $234 million from $135 million for the same period of 2009. Gains (losses) on property dispositions of $65 million for the third quarter of 2010 primarily consist of gains on property dispositions in the Rocky Mountain area.
Wellhead crude oil and condensate revenues for the third quarter of 2010 increased $177 million, or 54%, to $507 million from $330 million for the same period of 2009, due to an increase of 18 MBbld, or 30%, in wellhead crude oil and condensate deliveries ($103 million) and a higher composite average wellhead crude oil and condensate price ($74 million). The increase in deliveries primarily reflects increased production in Texas (8 MBbld), North Dakota (5 MBbld), Trinidad (2 MBbld) and Colorado (2 MBbld). EOG's composite average wellhead crude oil and condensate price for the third quarter of 2010 increased 17% to $70.96 per barrel compared to $60.65 per barrel for the same period of 2009.
Natural gas liquids revenues for the third quarter of 2010 increased $38 million, or 56%, to $107 million from $69 million for the same period of 2009, due to an increase of 8 MBbld, or 32%, in natural gas liquids deliveries ($22 million) and a higher composite average price ($16 million). The increase in deliveries primarily reflects increased volumes in the Fort Worth Basin Barnett Shale area. EOG's composite average natural gas liquids price for the third quarter of 2010 increased 18% to $36.66 per barrel compared to $31.14 per barrel for the same period of 2009.
Lease and well expenses of $181 million for the third quarter of 2010 increased $39 million from $142 million for the same prior year period primarily due to higher operating and maintenance expenses in the United States ($19 million) and Canada ($7 million), increased lease and well administrative expenses in the United States ($8 million), increased workover expenditures in the United States ($3 million) and unfavorable changes in the Canadian exchange rate ($2 million).
DD&A expenses for the third quarter of 2010 increased $116 million to $501 million from $385 million for the same prior year period. DD&A expenses associated with oil and gas properties for the third quarter of 2010 were $114 million higher than the same prior year period primarily due to higher unit rates in the United States ($49 million), Canada ($20 million), Trinidad ($5 million) and China ($3 million); unfavorable changes in the Canadian exchange rate ($4 million); and increased production in the United States ($35 million) and Trinidad ($3 million); partially offset by decreased production in Canada ($3 million).
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