EOG Resources Inc. (EOG, Financial) filed Quarterly Report for the period ended 2009-03-31.
EOG Resources Inc. is engaged either directly or through a marketing subsidiary with regard to domestic operations or through various subsidiaries with regard to international operations in the exploration for and the development production and marketing of natural gas and crude oil primarily in major producing basins in the United States as well as in Canada and Trinidad. The company's business strategy is to maximize the rate of return on investment of capital by controlling all operating and capital costs. EOG Resources Inc. has a market cap of $18.03 billion; its shares were traded at around $72.04 with a P/E ratio of 9.6 and P/S ratio of 2.5. The dividend yield of EOG Resources Inc. stocks is 0.8%. EOG Resources Inc. had an annual average earning growth of 24.5% over the past 10 years. GuruFocus rated EOG Resources Inc. the business predictability rank of 4.5-star.
Natural gas liquids revenues for the first quarter of 2009 decreased $46 million, or 50%, to $46 million from $92 million for the same period of 2008, due to a lower composite average price ($71 million), partially offset by increased natural gas liquids deliveries ($25 million). The composite average natural gas liquids price for the first quarter of 2009 decreased 61% to $22.29 per barrel compared to $57.26 per barrel for the same period of 2008. The increase in deliveries primarily reflects increased volumes in the Fort Worth Basin Barnett Shale and Rocky Mountain areas.
Lease and well expenses of $146 million for the first quarter of 2009 increased $22 million from $124 million for the same prior year period primarily due to higher operating and maintenance expenses in the United States ($18 million) and Canada ($5 million) and higher lease and well administrative expenses ($4 million), partially offset by changes in the Canadian exchange rate ($7 million).
DD&A expenses for the first quarter of 2009 increased $92 million to $389 million from $297 million for the same prior year period. DD&A expenses associated with oil and gas properties for the first quarter of 2009 were $82 million higher than the same prior year period primarily due to higher unit rates in the United States ($45 million), Canada ($5 million) and Trinidad ($4 million) and as a result of increased production in the United States ($34 million) and in Canada ($3 million), partially offset by changes in the Canadian exchange rate ($11 million).
Impairments include amortization of unproved leases, as well as impairments under Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" (SFAS No. 144), which requires an entity to compute impairments to the carrying value of long-lived assets based on future cash flow analysis. Impairments of $65 million for the first quarter of 2009 were $32 million higher than impairments of $33 million for the same prior year period primarily due to increased amortization costs of unproved leases in the United States ($18 million) and increased SFAS No. 144 related impairments in the United States ($16 million), partially offset by decreased SFAS No. 144 related impairments in Canada ($2 million). Under SFAS No. 144, EOG recorded impairments of $23 million and $9 million for the first quarter of 2009 and 2008, respectively.
Exploration and development expenditures of $872 million for the first three months of 2009 were $236 million lower than the same period of 2008 due primarily to decreased drilling and facilities expenditures in the United States ($128 million) and Canada ($15 million), decreased leasehold acquisition expenditures in Canada ($48 million), changes in the Canadian exchange rate ($15 million) and decreased producing property acquisition expenditures in Trinidad ($15 million) and Canada ($14 million). The exploration and development expenditures for the first three months of 2009 of $872 million include $662 million in development, $194 million in exploration, $12 million in capitalized interest and $4 million in producing property acquisitions. The exploration and development expenditures for the first three months of 2008 of $1,108 million include $801 million in development, $269 million in exploration, $29 million in producing property acquisitions and $9 million in capitalized interest.
Read the The complete ReportEOG is in the portfolios of Chris Davis of Davis Selected Advisers, NWQ Managers of NWQ Investment Management Co, PRIMECAP Management, John Griffin, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Wallace Weitz of Weitz Wallace R & Co.
EOG Resources Inc. is engaged either directly or through a marketing subsidiary with regard to domestic operations or through various subsidiaries with regard to international operations in the exploration for and the development production and marketing of natural gas and crude oil primarily in major producing basins in the United States as well as in Canada and Trinidad. The company's business strategy is to maximize the rate of return on investment of capital by controlling all operating and capital costs. EOG Resources Inc. has a market cap of $18.03 billion; its shares were traded at around $72.04 with a P/E ratio of 9.6 and P/S ratio of 2.5. The dividend yield of EOG Resources Inc. stocks is 0.8%. EOG Resources Inc. had an annual average earning growth of 24.5% over the past 10 years. GuruFocus rated EOG Resources Inc. the business predictability rank of 4.5-star.
Highlight of Business Operations:
Net Operating Revenues. During the first quarter of 2009, net operating revenues increased $24 million, or 2%, to $1,158 million from $1,134 million for the same period of 2008. Total wellhead revenues for the first quarter of 2009, which are revenues generated from sales of EOG's production of natural gas, crude oil and condensate and natural gas liquids, decreased $664 million, or 46%, to $768 million from $1,432 million for the same period of 2008. During the first quarter of 2009, EOG recognized net gains on mark-to-market financial commodity derivative contracts of $351 million compared to net losses of $470 million for the same period of 2008. Gathering, processing and marketing revenues, which are revenues generated from sales of third-party natural gas, crude oil and natural gas liquids as well as gathering fees associated with gathering third-party natural gas, for the first quarter of 2009 increased $2 million, or 5%, to $38 million from $36 million for the same period of 2008. Other, net operating revenues in 2008 primarily consist of a gain of $128 million on the sale of EOG's Appalachian assets in February 2008.Natural gas liquids revenues for the first quarter of 2009 decreased $46 million, or 50%, to $46 million from $92 million for the same period of 2008, due to a lower composite average price ($71 million), partially offset by increased natural gas liquids deliveries ($25 million). The composite average natural gas liquids price for the first quarter of 2009 decreased 61% to $22.29 per barrel compared to $57.26 per barrel for the same period of 2008. The increase in deliveries primarily reflects increased volumes in the Fort Worth Basin Barnett Shale and Rocky Mountain areas.
Lease and well expenses of $146 million for the first quarter of 2009 increased $22 million from $124 million for the same prior year period primarily due to higher operating and maintenance expenses in the United States ($18 million) and Canada ($5 million) and higher lease and well administrative expenses ($4 million), partially offset by changes in the Canadian exchange rate ($7 million).
DD&A expenses for the first quarter of 2009 increased $92 million to $389 million from $297 million for the same prior year period. DD&A expenses associated with oil and gas properties for the first quarter of 2009 were $82 million higher than the same prior year period primarily due to higher unit rates in the United States ($45 million), Canada ($5 million) and Trinidad ($4 million) and as a result of increased production in the United States ($34 million) and in Canada ($3 million), partially offset by changes in the Canadian exchange rate ($11 million).
Impairments include amortization of unproved leases, as well as impairments under Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" (SFAS No. 144), which requires an entity to compute impairments to the carrying value of long-lived assets based on future cash flow analysis. Impairments of $65 million for the first quarter of 2009 were $32 million higher than impairments of $33 million for the same prior year period primarily due to increased amortization costs of unproved leases in the United States ($18 million) and increased SFAS No. 144 related impairments in the United States ($16 million), partially offset by decreased SFAS No. 144 related impairments in Canada ($2 million). Under SFAS No. 144, EOG recorded impairments of $23 million and $9 million for the first quarter of 2009 and 2008, respectively.
Exploration and development expenditures of $872 million for the first three months of 2009 were $236 million lower than the same period of 2008 due primarily to decreased drilling and facilities expenditures in the United States ($128 million) and Canada ($15 million), decreased leasehold acquisition expenditures in Canada ($48 million), changes in the Canadian exchange rate ($15 million) and decreased producing property acquisition expenditures in Trinidad ($15 million) and Canada ($14 million). The exploration and development expenditures for the first three months of 2009 of $872 million include $662 million in development, $194 million in exploration, $12 million in capitalized interest and $4 million in producing property acquisitions. The exploration and development expenditures for the first three months of 2008 of $1,108 million include $801 million in development, $269 million in exploration, $29 million in producing property acquisitions and $9 million in capitalized interest.
Read the The complete ReportEOG is in the portfolios of Chris Davis of Davis Selected Advisers, NWQ Managers of NWQ Investment Management Co, PRIMECAP Management, John Griffin, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Wallace Weitz of Weitz Wallace R & Co.
