EOG Resources Inc. (EOG, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $19.58 billion; its shares were traded at around $78.22 with a P/E ratio of 12.7 and P/S ratio of 2.7. 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.
Lease and well expenses of $135 million for the second quarter of 2009 increased $5 million from $130 million for the same prior year period primarily due to higher operating and maintenance expenses in the United States ($9 million) and Canada ($2 million), partially offset by changes in the Canadian exchange rate ($4 million) and decreased expenditures for workovers in the United States ($2 million).
DD&A expenses for the second quarter of 2009 increased $61 million to $376 million from $315 million for the same prior year period. DD&A expenses associated with oil and gas properties for the second quarter of 2009 were $53 million higher than the same prior year period primarily due to higher unit rates in the United States ($29 million), Trinidad ($3 million) and Canada ($3 million) and as a result of increased production in the United States ($16 million) and in Canada ($2 million), partially offset by changes in the Canadian exchange rate ($7 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 $47 million for the second quarter of 2009 decreased $2 million from $49 million for the same prior year period primarily due to decreased SFAS No. 144 related impairments ($24 million), partially offset by increased amortization costs of unproved leases in the United States ($22 million). The decreased SFAS No. 144 related impairments is a result of no SFAS No. 144 related impairments recorded in the second quarter of 2009 and SFAS No. 144 related impairments recorded in the second quarter of 2008 in Trinidad as a result of EOG\'s relinquishment of its rights to Block Lower Reverse "L" (LRL) ($20 million) and in the United States ($4 million). Under SFAS No. 144, EOG recorded impairments of zero and $24 million for the second quarter of 2009 and 2008, respectively.
Taxes other than income for the second quarter of 2009 decreased $72 million to $23 million (3.1% of wellhead revenues) from $95 million (5.1% of wellhead revenues) for the same prior year period. The decrease in taxes other than income was primarily due to a decrease in severance/production taxes as a result of decreased wellhead revenues in the United States ($43 million) and Trinidad ($5 million), an increase in credits taken in 2009 for Texas high cost gas severance tax rate reductions ($15 million) and lower ad valorem/property taxes in the United States ($13 million), partially offset by an increase in franchise taxes in the United States ($6 million). The decline in taxes other than income as a percentage of wellhead revenues primarily reflects an increase in credits taken in 2009 for Texas high cost gas severance tax rate reductions combined with a decline in non-revenue based taxes.
Net Operating Revenues. During the first six months of 2009, net operating revenues decreased $211 million, or 9%, to $2,019 million from $2,230 million for the same period of 2008. Total wellhead revenues for the first six months of 2009 decreased $1,783 million, or 54%, to $1,515 million from $3,298 million for the same period of 2008. During the first six months of 2009, EOG recognized a net gain on mark-to-market financial commodity derivative contracts of $385 million compared to a net loss of $1,313 million for the same period of 2008. Gathering, processing and marketing revenues for the first six months of 2009 increased $15 million, or 15%, to $115 million from $100 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.
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, Wallace Weitz of Weitz Wallace R & Co, Kenneth Fisher of Fisher Asset Management, LLC.
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 $19.58 billion; its shares were traded at around $78.22 with a P/E ratio of 12.7 and P/S ratio of 2.7. 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 second quarter of 2009, net operating revenues decreased $235 million, or 21%, to $861 million from $1,096 million for the same period of 2008. Total wellhead revenues for the second 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 $1,118 million, or 60%, to $747 million from $1,865 million for the same period of 2008. During the second quarter of 2009, EOG recognized a net gain on mark-to-market commodity derivative contracts of $34 million compared to a loss of $843 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 second quarter of 2009 increased $13 million, or 21%, to $77 million from $64 million for the same period of 2008.Lease and well expenses of $135 million for the second quarter of 2009 increased $5 million from $130 million for the same prior year period primarily due to higher operating and maintenance expenses in the United States ($9 million) and Canada ($2 million), partially offset by changes in the Canadian exchange rate ($4 million) and decreased expenditures for workovers in the United States ($2 million).
DD&A expenses for the second quarter of 2009 increased $61 million to $376 million from $315 million for the same prior year period. DD&A expenses associated with oil and gas properties for the second quarter of 2009 were $53 million higher than the same prior year period primarily due to higher unit rates in the United States ($29 million), Trinidad ($3 million) and Canada ($3 million) and as a result of increased production in the United States ($16 million) and in Canada ($2 million), partially offset by changes in the Canadian exchange rate ($7 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 $47 million for the second quarter of 2009 decreased $2 million from $49 million for the same prior year period primarily due to decreased SFAS No. 144 related impairments ($24 million), partially offset by increased amortization costs of unproved leases in the United States ($22 million). The decreased SFAS No. 144 related impairments is a result of no SFAS No. 144 related impairments recorded in the second quarter of 2009 and SFAS No. 144 related impairments recorded in the second quarter of 2008 in Trinidad as a result of EOG\'s relinquishment of its rights to Block Lower Reverse "L" (LRL) ($20 million) and in the United States ($4 million). Under SFAS No. 144, EOG recorded impairments of zero and $24 million for the second quarter of 2009 and 2008, respectively.
Taxes other than income for the second quarter of 2009 decreased $72 million to $23 million (3.1% of wellhead revenues) from $95 million (5.1% of wellhead revenues) for the same prior year period. The decrease in taxes other than income was primarily due to a decrease in severance/production taxes as a result of decreased wellhead revenues in the United States ($43 million) and Trinidad ($5 million), an increase in credits taken in 2009 for Texas high cost gas severance tax rate reductions ($15 million) and lower ad valorem/property taxes in the United States ($13 million), partially offset by an increase in franchise taxes in the United States ($6 million). The decline in taxes other than income as a percentage of wellhead revenues primarily reflects an increase in credits taken in 2009 for Texas high cost gas severance tax rate reductions combined with a decline in non-revenue based taxes.
Net Operating Revenues. During the first six months of 2009, net operating revenues decreased $211 million, or 9%, to $2,019 million from $2,230 million for the same period of 2008. Total wellhead revenues for the first six months of 2009 decreased $1,783 million, or 54%, to $1,515 million from $3,298 million for the same period of 2008. During the first six months of 2009, EOG recognized a net gain on mark-to-market financial commodity derivative contracts of $385 million compared to a net loss of $1,313 million for the same period of 2008. Gathering, processing and marketing revenues for the first six months of 2009 increased $15 million, or 15%, to $115 million from $100 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.
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, Wallace Weitz of Weitz Wallace R & Co, Kenneth Fisher of Fisher Asset Management, LLC.
