Data Points From EOG 4Q13 Conference Call

Random data points from EOG's 4Q13 and full year 2013 earnings. As usual, numbers may be rounded.

Finances

• 4Q13: net income of $2.12/share
• full year: net income of $8.04/share
• 4Q13 discretionary cash flow: $2 billion
• For full year, EOG's net cash provided by operating activities exceeded financing investing cash outflows.
• debt/total cap: 28%; debt reduced by almost $1 billion during 2013

Operations

• best year on record
• increased crude oil production growth targets three times 
• ended year with total company production up 40% over 2012
• a 44% average increase over the last three years
• key assets: Eagle Ford, Bakken, and Leonard
• biggest driver: Eagle Ford

Eagle Ford

• biggest driver for EOG
• for third time since EOG discovered oil in the Eagle Ford in 2010, EOG has increased the net reserve potential
• EOG's estimated net reserve potential: 3.2 billion bbls equivalent; 45% increase over the previous 2.2 billion bbls
• 7,200 net drilling locations (includes the 1,200 net wells drilled to-date)
• 6,000 net wells remaining = 12-year drilling inventory
• increased by 12% net recoverable reserve per well; up from previous 400,000 boe to 450,000 boe

The Bakken

• in 2014, expect to again grow crude oil production
• localized in two areas: Bakken Core and Antelope Extension; majority in the Core
• downspace in each area
• operate a 6-rig program
• plan to drill 80 net wells this year, up from 54 last year

The Permian (Leonard)

• the Leonard is EOG's third best play in terms of rate of return; drilling in two zones, A and B
• CAPEX to remain flat
• shift from Midland Basin to higher return plays in the Delaware Basin, the Leonard, and Wolfcamp
• biggest increase in activity will be the Leonard where recent wells have been excellent
• will develop A zone with 8 to 10 wells/section

Pricing

• for March 2014, 181,000 bbls hedged at $96.55
• for April 1 through June 30, 2014, 168,000 bbls hedged at $96.48
• for second half of 2014, 64,000 bbls hedged at $95.18
• natural gas hedged at $4.55 through end of 2014
• for the sixth year in a row, EOG is not growing it North American natural gas production

Q&A

• downspacing to 160 acres in the Bakken
• new wells coming in extremely good
• not ready to comment on how much new wells interfering with existing wells