EOG RESOURCES INC

Previous wording

For the first three months of 2024, the average U.S. New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $76.97 per barrel and $2.24 per million British thermal units (MMBtu), respectively, representing an increase of 1% and a decrease of 35%, respectively, from the average NYMEX prices for the same period in 2023. Market prices for NGLs are influenced by the components extracted, including ethane, propane and butane and natural gasoline, among others, and the respective market pricing for each component.

Current wording

For the first six months of 2024, the average U.S. New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $78.76 per barrel and $2.06 per million British thermal units (MMBtu), respectively, representing an increase of 5% and a decrease of 25%, respectively, from the average NYMEX prices for the same period in 2023. Market prices for NGLs are influenced by the components extracted, including ethane, propane and butane and natural gasoline, among others, and the respective market pricing for each component.

Previous wording

Inflation Considerations. As is further discussed in EOG's Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 22, 2024 (EOG's 2023 Annual Report), EOG has, beginning in the second quarter of 2023, seen the inflationary pressures on its operating costs and capital expenditures (i.e., costs of fuel, steel, labor and drilling and completion services) diminish and, in certain circumstances, EOG has seen a decline in prices.

Current wording

Inflation Considerations. As further discussed in EOG's Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 22, 2024 (EOG's 2023 Annual Report), EOG has, beginning in the second quarter of 2023, seen the inflationary pressures on its operating costs and capital expenditures (i.e., costs of fuel, steel, labor and drilling and completion services) diminish and, in certain circumstances, EOG has seen a decline in prices.

Previous wording

Climate Change. For discussion of climate change matters and related regulatory matters, including potential developments related to climate change and the potential impacts and risks of such developments on EOG, see ITEM 1A. Risk Factors and the related discussion in ITEM 1. Business - Regulation of EOG's 2023 Annual Report. EOG will continue to monitor and assess any climate change-related developments, including the SEC's climate-related disclosure rules issued in March 2024, that could impact EOG and the oil and gas industry, to determine the impact on its business and operations, and take appropriate actions where necessary.

Current wording

Climate Change. For discussion of climate change matters and related regulatory matters, including potential developments related to climate change and the potential impacts and risks of such developments on EOG, see ITEM 1A. Risk Factors and the related discussion in ITEM 1. Business - Regulation of EOG's 2023 Annual Report. EOG will continue to monitor and assess any climate change-related developments, including the SEC's climate-related disclosure rules adopted in March 2024, that could impact EOG and the oil and gas industry, to determine the impact on its business and operations, and take appropriate actions where necessary.

Previous wording

During the first three months of 2024, EOG continued to (i) focus on improving well performance and operating efficiencies, (ii) evaluate certain potential crude oil and condensate, NGLs and natural gas exploration and development prospects and (iii) look for opportunities to add drilling inventory through leasehold acquisitions, farm-ins, exchanges or tactical or bolt-on acquisitions. On a volumetric basis, as calculated using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas, crude oil and condensate and NGLs production accounted for approximately 72% and 73% of EOG's United States production during the first three months of 2024 and 2023, respectively. During the first three months of 2024, EOG's drilling and completion activities occurred primarily in the Delaware Basin play and the Eagle Ford play. EOG's major producing areas in the United States are in New Mexico and Texas.

Current wording

During the first six months of 2024, EOG continued to (i) focus on improving well performance and operating efficiencies, (ii) evaluate certain potential crude oil and condensate, NGLs and natural gas exploration and development prospects and (iii) look for opportunities to add drilling inventory through leasehold acquisitions, farm-ins, exchanges or tactical or bolt-on acquisitions. On a volumetric basis, as calculated using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas, crude oil and condensate and NGLs production accounted for approximately 72% and 73% of EOG's United States production during the first six months of 2024 and 2023, respectively. During the first six months of 2024, EOG's drilling and completion activities occurred primarily in the Delaware Basin play and the Eagle Ford play. EOG's major producing areas in the United States are in New Mexico and Texas.

Previous wording

In the first three months of 2024, EOG completed one net developmental well and one net exploratory well from the recently installed Osprey B platform in the Modified U(a) Block and began drilling an exploratory well in the SECC Block. Additionally in 2024, EOG expects to drill two additional exploratory wells; one in the SECC Block and one in the deep Teak, Samaan and Poui Area; and complete construction and installation of the platform in the Mento Area.

Current wording

In the first six months of 2024, EOG completed one net developmental well and one net exploratory well from the recently installed Osprey B platform in the Modified U(a) Block and is in the process of completing two exploratory wells in the SECC Block. In June 2024, EOG relinquished its rights to a portion of the contract area governed by the Trinidad Northern Area License located offshore the southwest coast of Trinidad. In the second half of 2024, EOG expects to drill an exploratory well in the deep Teak, Samaan and Poui Area, and complete construction and installation of the platform and commence pipeline installation in the Mento Area.

Previous wording

Other International. In November 2021, a subsidiary of EOG was granted an exploration permit for the WA-488-P Block, located offshore Western Australia. In the first three months of 2024, EOG continued to prepare for the drilling of an exploration well subject to regulatory approvals and equipment availability.

Current wording

Other International. In November 2021, a subsidiary of EOG was granted an exploration permit for the WA-488-P Block, located offshore Western Australia. In the first half of 2024, EOG continued to prepare for the drilling of an exploration well in this block.

Previous wording

2024 Capital and Operating Plan. Total 2024 capital expenditures are estimated to range from approximately $6.0 billion to $6.4 billion, including facilities and gathering, processing, transportation and other expenditures, and excluding acquisitions, non-cash transactions and exploration costs. EOG plans to continue to focus a substantial portion of its exploration and development expenditures in its major producing areas in the United States. In particular, EOG will be focused on United States drilling activity in its plays where it generates the highest rates of return - specifically, in the Delaware Basin, Eagle Ford, Rocky Mountain area and Utica. To further enhance the economics of these plays, EOG expects to continue to improve well performance and to focus on improving operating efficiencies; see the above related discussion. Full-year 2024 total crude oil, NGLs and natural gas production is expected to increase modestly versus 2023. In addition, EOG plans to continue to spend a portion of its anticipated 2024 capital expenditures on leasing acreage, evaluating new prospects, transportation infrastructure and environmental projects.

Current wording

2024 Capital and Operating Plan. Total 2024 capital expenditures are estimated to range from approximately $6.0 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses. EOG plans to continue to focus a substantial portion of its exploration and development expenditures in its major producing areas in the United States. In particular, EOG will be focused on United States drilling activity in its plays where it generates the highest rates of return - specifically, in the Delaware Basin, Eagle Ford, Rocky Mountain area and Utica. To further enhance the economics of these plays, EOG expects to continue to improve well performance and to focus on improving operating efficiencies; see the above related discussion. Full-year 2024 total crude oil, NGLs and natural gas production is expected to increase modestly versus 2023. In addition, EOG plans to continue to spend a portion of its anticipated 2024 capital expenditures on leasing acreage, evaluating new prospects, transportation infrastructure and environmental projects.

Previous wording

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 12% at both March 31, 2024 and December 31, 2023. As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity.

Current wording

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 11% at June 30, 2024 and 12% at December 31, 2023. As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity.

Previous wording

At March 31, 2024, EOG maintained a strong financial and liquidity position, including $5.3 billion of cash and cash equivalents on hand and $1.9 billion of availability under its senior unsecured revolving credit facility.

Current wording

At June 30, 2024, EOG maintained a strong financial and liquidity position, including $5.4 billion of cash and cash equivalents on hand and $1.9 billion of availability under its senior unsecured revolving credit facility. EOG is currently evaluating whether or not to refinance the $500 million aggregate principal amount of its 3.15% Senior Notes due April 1, 2025.

Previous wording

EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its senior unsecured revolving credit facility, joint development agreements and similar agreements and equity and debt offerings.

Current wording

EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its senior unsecured revolving credit facility, joint development agreements and similar agreements and equity and debt offerings. For related discussion, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources and Liquidity included in EOG's 2023 Annual Report.

Previous wording

For discussion regarding our payment of dividends and share repurchases, see ITEM 1A, Risk Factors and ITEM 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in EOG's 2023 Annual Report and Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds in this Quarterly Report on Form 10-Q.

Current wording

For discussion regarding EOG's payment of dividends and share repurchases, see ITEM 1A, Risk Factors and ITEM 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in EOG's 2023 Annual Report and Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds in this Quarterly Report on Form 10-Q.

Previous wording

Dividend Declarations. On February 22, 2024, the Board declared a quarterly cash dividend on the common stock of $0.91 per share paid on April 30, 2024, to stockholders of record as of April 16, 2024.

Current wording

On May 2, 2024, the Board declared a quarterly cash dividend on the common stock of $0.91 per share paid on July 31, 2024, to stockholders of record as of July 17, 2024.

Previous wording

Share Repurchases. In November 2021, the Board established a new share repurchase authorization that allows for the repurchase by EOG of up to $5 billion of its common stock (November 2021 Authorization). Under the November 2021 Authorization, EOG may repurchase shares from time to time, at management's discretion, in accordance with applicable securities laws, including through open market transactions, privately negotiated transactions or any combination thereof. The timing and amount of repurchases is at the discretion of EOG's management and depends on a variety of factors, including the trading price of EOG's common stock, corporate and regulatory requirements, and other market and economic conditions. Repurchased shares are held as treasury shares and are available for general corporate purposes. The November 2021 Authorization has no time limit, does not require EOG to repurchase a specific number of shares and may be modified, suspended, or terminated by the Board at any time. During the three months ended March 31, 2024, EOG repurchased 6.4 million shares of common stock for approximately $750 million (inclusive of transaction fees and commissions) pursuant to the November 2021 Authorization. As of March 31, 2024, approximately $3.3 billion remained available for repurchases under the November 2021 Authorization. Included in the Treasury Stock Repurchased amounts on the Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024, is $6 million of estimated federal excise taxes.

Current wording

Share Repurchases. In November 2021, the Board established a new share repurchase authorization that allows for the repurchase by EOG of up to $5 billion of its common stock (November 2021 Authorization). Under the November 2021 Authorization, EOG may repurchase shares from time to time, at management's discretion, in accordance with applicable securities laws, including through open market transactions, privately negotiated transactions or any combination thereof. The timing and amount of repurchases is at the discretion of EOG's management and depends on a variety of factors, including the trading price of EOG's common stock, corporate and regulatory requirements, and other market and economic conditions. Repurchased shares are held as treasury shares and are available for general corporate purposes. The November 2021 Authorization has no time limit, does not require EOG to repurchase a specific number of shares and may be modified, suspended, or terminated by the Board at any time. During the three and six months ended June 30, 2024, EOG repurchased 5.5 million and 11.9 million shares of common stock for approximately $690 million and $1,440 million (inclusive of transaction fees and commissions), respectively, pursuant to the November 2021 Authorization. As of June 30, 2024, approximately $2.6 billion remained available for repurchases under the November 2021 Authorization. Included in the Treasury Stock Repurchased amounts on the Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024, are $7 million and $13 million, respectively, of estimated federal excise taxes.

Previous wording

The following review of operations for the three months ended March 31, 2024 and 2023 should be read in conjunction with the Condensed Consolidated Financial Statements of EOG and notes thereto included in this Quarterly Report on Form 10‑Q.

Current wording

The following review of operations for the three months and six months ended June 30, 2024 and 2023 should be read in conjunction with the Condensed Consolidated Financial Statements of EOG and notes thereto included in this Quarterly Report on Form 10‑Q.

Previous wording

Operating Revenues. During the first quarter of 2024, operating revenues increased $79 million, or 1%, to $6,123 million from $6,044 million for the same period of 2023. Total wellhead revenues, which are revenues generated from sales of EOG's production of crude oil and condensate, NGLs and natural gas, for the first quarter of 2024 increased $186 million, or 4%, to $4,375 million from $4,189 million for the same period of 2023. EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $237 million for the first quarter of 2024 compared to net gains of $376 million for the same period of 2023. Gathering, processing and marketing revenues for the first quarter of 2024 increased $69 million, or 5%, to $1,459 million from $1,390 million for the same period of 2023. Net gains on asset dispositions were $26 million for the first quarter of 2024 compared to net gains of $69 million for the same period of 2023.

Current wording

Operating Revenues. During the second quarter of 2024, operating revenues increased $452 million, or 8%, to $6,025 million from $5,573 million for the same period of 2023. Total wellhead revenues, which are revenues generated from sales of EOG's production of crude oil and condensate, NGLs and natural gas, for the second quarter of 2024 increased $515 million, or 13%, to $4,510 million from $3,995 million for the same period of 2023. EOG recognized net losses on the mark-to-market of financial commodity and other derivative contracts of $47 million for the second quarter of 2024 compared to net gains of $101 million for the same period of 2023. Gathering, processing and marketing revenues for the second quarter of 2024 increased $54 million, or 4%, to $1,519 million from $1,465 million for the same period of 2023. Net gains on asset dispositions were $20 million for the second quarter of 2024 compared to net losses of $9 million for the same period of 2023.

Previous wording

NGL revenues for the first quarter of 2024 increased $23 million, or 5%, to $513 million from $490 million for the same period of 2023 due to an increase of 19.5 MBbld, or 9%, in NGL deliveries ($51 million), partially offset by a lower composite average price ($28 million). Increased production was primarily from the Permian Basin. EOG's composite NGL price for the first quarter of 2024 decreased 5% to $24.32 per barrel compared to $25.67 per barrel for the same period of 2023.

Current wording

NGL revenues for the second quarter of 2024 increased $106 million, or 26%, to $515 million from $409 million for the same period of 2023 due to an increase of 29.1 MBbld, or 13%, in NGL deliveries ($56 million) and a higher composite average price ($50 million). Increased production was primarily from the Permian Basin. EOG's composite NGL price for the second quarter of 2024 increased 11% to $23.11 per barrel compared to $20.85 per barrel for the same period of 2023.

Previous wording

Wellhead natural gas revenues for the first quarter of 2024 decreased $135 million, or 26%, to $382 million from $517 million for the same period of 2023. The decrease was due to a lower composite average price ($208 million), partially offset by an increase in natural gas deliveries ($73 million). Natural gas deliveries for the first quarter of 2024 increased 219 MMcfd, or 13%, compared to the same period of 2023 due primarily to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in Trinidad, the Dorado gas play and the Rocky Mountain area. EOG's composite wellhead natural gas price for the first quarter of 2024 decreased 36% to $2.26 per Mcf compared to $3.51 per Mcf for the same period of 2023.

Current wording

Wellhead natural gas revenues for the second quarter of 2024 decreased $31 million, or 9%, to $303 million from $334 million for the same period of 2023. The decrease was due to a lower composite average price ($76 million), partially offset by an increase in natural gas deliveries ($45 million). Natural gas deliveries for the second quarter of 2024 increased 204 MMcfd, or 12%, compared to the same period of 2023 due primarily to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in Trinidad. EOG's composite wellhead natural gas price for the second quarter of 2024 decreased 19% to $1.78 per Mcf compared to $2.20 per Mcf for the same period of 2023.

Previous wording

During the first quarter of 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $237 million compared to net gains of $376 million for the same period of 2023. The net gains of $237 million included gains of $144 million related to the Brent Crude Oil (Brent) linked gas sales contract. During the first quarter of 2024, net cash received from settlements of financial commodity derivative contracts was $55 million compared to net cash paid for settlements of financial commodity derivative contracts of $123 million for the same period of 2023.

Current wording

During the second quarter of 2024, EOG recognized net losses on the mark-to-market of financial commodity and other derivative contracts of $47 million compared to net gains of $101 million for the same period of 2023. The net losses of $47 million included losses of $11 million related to the Brent crude oil (Brent) linked gas sales contract. During the second quarter of 2024, net cash received from settlements of financial commodity derivative contracts was $79 million compared to net cash paid for settlements of financial commodity derivative contracts of $30 million for the same period of 2023.

Previous wording

Operating and Other Expenses. For the first quarter of 2024, operating expenses of $3,852 million were $380 million higher than the $3,472 million incurred during the first quarter of 2023. The following table presents the costs per barrel of oil equivalent (Boe) for the three-month periods ended March 31, 2024 and 2023:

Current wording

Operating and Other Expenses. For the second quarter of 2024, operating expenses of $3,895 million were $292 million higher than the $3,603 million incurred during the second quarter of 2023. The following table presents the costs per barrel of oil equivalent (Boe) for the three-month periods ended June 30, 2024 and 2023:

Previous wording

The primary factors impacting the cost components of per-unit rates of lease and well; gathering, processing and transportation costs; DD&A; G&A and interest expense, net for the three months ended March 31, 2024, compared to the same period of 2023, are set forth below. See "Operating Revenues" above for a discussion of wellhead volumes.

Current wording

The primary factors impacting the cost components of per-unit rates of lease and well; GP&T; DD&A; G&A and interest expense, net for the three months ended June 30, 2024, compared to the same period of 2023, are set forth below. See "Operating Revenues" above for a discussion of wellhead volumes.

Previous wording

Lease and well expenses of $396 million for the first quarter of 2024 increased $37 million from $359 million for the same prior year period primarily due to increased operating and maintenance costs ($24 million) and increased workover expenditures ($11 million), all in the United States. Lease and well expenses increased in the United States primarily due to increased operating activities resulting from increased production.

Current wording

Lease and well expenses of $390 million for the second quarter of 2024 increased $42 million from $348 million for the same prior year period primarily due to increased operating and maintenance costs ($30 million) and increased lease and well administrative expenses ($9 million), all in the United States. Lease and well expenses increased in the United States primarily due to increased operating activities resulting from increased production.

Previous wording

Gathering, processing and transportation (GPT) costs represent costs to process and deliver hydrocarbon products from the lease to a downstream point of sale. GPT costs include operating and maintenance expenses from EOG-owned assets, fees paid to third party operators and administrative expenses associated with operating EOG's GPT assets. EOG pays third parties to process the majority of its natural gas production to extract NGLs.

Current wording

GP&T costs represent costs to process and deliver hydrocarbon products from the lease to a downstream point of sale. GP&T costs include operating and maintenance expenses from EOG-owned assets, fees paid to third party operators and administrative expenses associated with operating EOG's GP&T assets. EOG pays third parties to process the majority of its natural gas production to extract NGLs.

Previous wording

G&A expenses of $162 million for the first quarter of 2024 increased $17 million from $145 million for the same prior year period primarily due to increased employee-related costs.

Current wording

G&A expenses of $151 million for the second quarter of 2024 increased $9 million from $142 million for the same prior year period primarily due to increased employee-related costs.

Previous wording

The following table represents impairments for the first quarter of 2024 and 2023 (in millions):

Current wording

The following table represents impairments for the second quarter of 2024 and 2023 (in millions):

Previous wording

Taxes other than income for the first quarter of 2024 increased $9 million to $338 million (7.7% of wellhead revenues) from $329 million (7.8% of wellhead revenues) for the same prior year period. The increase in taxes other than income was primarily due to increased severance/production taxes ($11 million), partially offset by decreased ad valorem/property taxes ($3 million), all in the United States.

Current wording

Taxes other than income for the second quarter of 2024 increased $24 million to $337 million (7.5% of wellhead revenues) from $313 million (7.8% of wellhead revenues) for the same prior year period. The increase in taxes other than income was primarily due to increased severance/production taxes ($39 million), partially offset by decreased ad valorem/property taxes ($15 million), all in the United States.

Previous wording

EOG recognized an income tax provision of $511 million for the first quarter of 2024 compared to an income tax provision of $572 million for the first quarter of 2023 primarily due to decreased pretax income. The net effective tax rate for the first quarter of 2024 was unchanged from the prior year rate of 22%.

Current wording

Income taxes of $470 million for the second quarter of 2024 increased from income taxes of $433 million for the second quarter of 2023 primarily due to increased pretax income. The net effective tax rate for the second quarter of 2024 was unchanged from the prior year rate of 22%.

Previous wording

Gathering, processing and marketing revenues less marketing costs for the first quarter of 2024 increased $26 million as compared to the same period of 2023 primarily due to higher margins on crude oil marketing activities, partially offset by lower margins on natural gas marketing activities.

Current wording

Gathering, processing and marketing revenues less marketing costs for the first six months of 2024 increased $46 million as compared to the same period of 2023 primarily due to higher margins on crude oil marketing activities, partially offset by lower margins on sand sales and natural gas marketing activities.

Previous wording

DD&A expenses for the first quarter of 2024 increased $276 million to $1,074 million from $798 million for the same prior year period. DD&A expenses associated with oil and gas properties for the first quarter of 2024 were $265 million higher than the same prior year period. The increase primarily reflects the recording of an adjustment to DD&A ($117 million) primarily related to natural gas production used by EOG's domestic gathering systems. In addition, increased production ($77 million) and unit rates ($68 million), primarily in the United States, also contributed to the variance. Unit rates in the United States increased primarily due to reserves additions at higher costs per Boe. DD&A expenses associated with other property, plant and equipment for the first quarter of 2024 were $11 million higher than the same prior year period primarily due to an increase in costs related to GPT assets and equipment.

Current wording

DD&A expenses for the first six months of 2024 increased $394 million to $2,058 million from $1,664 million for the same prior year period. DD&A expenses associated with oil and gas properties for the first six months of 2024 were $378 million higher than the same prior year period. The increase primarily reflects increased production in the United States ($131 million) and in Trinidad ($9 million), and increased unit rates in the United States ($98 million) and in Trinidad ($19 million). In addition, the recording of an adjustment to DD&A ($117 million) primarily related to natural gas production used by EOG's domestic gathering systems also contributed to the variance. DD&A expenses associated with other property, plant and equipment for the first six months of 2024 were $16 million higher than the same prior year period primarily due to an increase in expenses related to GP&T assets and equipment.

Previous wording

Interest expense, net of $33 million for the first quarter of 2024 decreased $9 million compared to the same prior year period primarily due to the repayment in March 2023 of the $1,250 million aggregate principal amount of 2.625% Senior Notes due 2023.

Current wording

Interest expense, net of $69 million for the first six months of 2024 decreased $8 million compared to the same prior year period primarily due to the repayment in March 2023 of the $1,250 million aggregate principal amount of 2.625% Senior Notes due 2023.

Previous wording

Exploration costs of $45 million for the first quarter of 2024 decreased $5 million from $50 million for the same prior year period due primarily to decreased geological and geophysical expenditures ($14 million), partially offset by increased delay rentals ($3 million) and increased administrative expenses ($3 million), all in the United States.

Current wording

Exploration costs of $79 million for the first six months of 2024 decreased $18 million from $97 million for the same prior year period due primarily to decreased geological and geophysical expenditures ($25 million), partially offset by increased administrative expenses ($4 million) and delay rentals ($3 million).

Previous wording

Cash Flow. The primary sources of cash for EOG during the three months ended March 31, 2024, were funds generated from operations and, to a lesser extent, net cash received from settlements of financial commodity derivative contracts. The primary uses of cash were exploration and development expenditures; funds used in operations; purchases of treasury stock; dividend payments to stockholders; and other property, plant and equipment expenditures. During the first three months of 2024, EOG's cash balance increased $14 million to $5,292 million from $5,278 million at December 31, 2023.

Current wording

Cash Flow. The primary sources of cash for EOG during the six months ended June 30, 2024, were funds generated from operations and, to a lesser extent, net cash received from settlements of financial commodity derivative contracts. The primary uses of cash were exploration and development expenditures; funds used in operations; dividend payments to stockholders; purchases of treasury stock; and other property, plant and equipment expenditures. During the first six months of 2024, EOG's cash balance increased $153 million to $5,431 million from $5,278 million at December 31, 2023.

Previous wording

Net cash provided by operating activities of $2,903 million for the first three months of 2024 decreased $352 million compared to the same period of 2023 primarily due to an increase in net cash used in working capital and other assets and liabilities ($477 million) and the return of cash collateral posted for financial commodity derivative contracts in the first three months of 2023 ($324 million), partially offset by an increase in wellhead revenues ($186 million) and an increase in net cash received from settlements of financial commodity derivative contracts ($178 million).

Current wording

Net cash provided by operating activities of $5,792 million for the first six months of 2024 increased $260 million compared to the same period of 2023 primarily due to an increase in wellhead revenues ($701 million) and an increase in net cash received from settlements of financial commodity derivative contracts ($287 million), partially offset by an increase in net cash used in working capital and other assets and liabilities ($346 million), the return of cash collateral posted for financial commodity derivative contracts in the first six months of 2023 ($324 million) and an increase in cash operating expenses ($144 million).

Previous wording

Net cash used in investing activities of $1,597 million for the first three months of 2024 increased $30 million compared to the same period of 2023 due to an increase in additions to oil and gas properties ($180 million), an increase in additions to other property, plant and equipment ($31 million) and a decrease in proceeds from the sale of assets ($83 million), partially offset by a decrease in cash used in working capital associated with investing activities ($264 million).

Current wording

Net cash used in investing activities of $3,130 million for the first six months of 2024 decreased $179 million compared to the same period of 2023 due to a decrease in cash used in working capital associated with investing activities ($641 million), partially offset by an increase in additions to oil and gas properties ($196 million), an increase in additions to other property, plant and equipment ($164 million) and a decrease in proceeds from the sale of assets ($102 million).

Previous wording

Net cash used in financing activities of $1,292 million for the first three months of 2024 included purchases of treasury stock ($759 million) and cash dividend payments ($525 million). Net cash used in financing activities of $2,642 million for the first three months of 2023 included repayments of long-term debt ($1,250 million), cash dividend payments ($1,067 million), purchases of treasury stock ($317 million) and repayment of finance lease liabilities ($8 million).

Current wording

Net cash used in financing activities of $2,509 million for the first six months of 2024 included purchases of treasury stock ($1,458 million), cash dividend payments ($1,045 million) and repayment of finance lease liabilities ($17 million). Net cash used in financing activities of $3,431 million for the first six months of 2023 included cash dividend payments ($1,547 million), repayments of long-term debt ($1,250 million), purchases of treasury stock ($619 million) and repayment of finance lease liabilities ($16 million).

Previous wording

Total Expenditures. For the full-year 2024, EOG's updated budget for exploration and development and other property, plant and equipment expenditures is estimated to range from approximately $6.0 billion to $6.4 billion, excluding acquisitions, non-cash transactions and exploration costs. The table below sets out components of total expenditures for the three-month periods ended March 31, 2024 and 2023 (in millions):

Current wording

Total Expenditures. For the full-year 2024, EOG's updated budget for exploration and development and other property, plant and equipment expenditures is estimated to range from approximately $6.0 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses. The table below sets out components of total expenditures for the six-month periods ended June 30, 2024 and 2023 (in millions):

Previous wording

(1) Leasehold acquisitions included $31 million for each of the three-month periods ended March 31, 2024 and 2023, related to non-cash property exchanges.

Current wording

(2) Leasehold acquisitions included $65 million and $59 million for the six-month periods ended June 30, 2024 and 2023, respectively, related to non-cash property exchanges.

Previous wording

(2) Property acquisitions included $20 million and $2 million for the three-month periods ended March 31, 2024 and 2023, respectively, related to non-cash property exchanges.

Current wording

(3) Property acquisitions included $24 million and $9 million for the six-month periods ended June 30, 2024 and 2023, respectively, related to non-cash property exchanges.

Previous wording

(3) Other Property, Plant and Equipment included $131 million related to the acquisition of a gathering system in South Texas and $133 million related to the acquisition of a gathering and processing system in the Powder River Basin for the three-month periods ended March 31, 2024 and 2023, respectively.

Current wording

(5) Other Property, Plant and Equipment included $132 million related to the acquisition of a gathering system in South Texas and $134 million related to the acquisition of a gathering and processing system in the Powder River Basin for the six-month periods ended June 30, 2024 and 2023, respectively.

Previous wording

Exploration and development expenditures of $1,581 million for the first three months of 2024 were $193 million higher than the same period of 2023 primarily due to increased facilities expenditures ($61 million), increased exploration and development drilling expenditures in the United States ($52 million), increased leasehold acquisitions ($37 million), increased exploration and development drilling expenditures in Trinidad ($29 million) and increased property acquisitions ($17 million). Exploration and development expenditures for the first three months of 2024 of $1,581 million consisted of $1,356 million in development drilling and facilities, $194 million in exploration, $21 million in property acquisitions and $10 million in capitalized interest. Exploration and development expenditures for the first three months of 2023 of $1,388 million consisted of $1,254 million in development drilling and facilities, $122 million in exploration, $8 million in capitalized interest and $4 million in property acquisitions.

Current wording

Exploration and development expenditures of $3,010 million for the first six months of 2024 were $164 million higher than the same period of 2023 primarily due to increased facilities expenditures ($78 million), increased exploration and development drilling expenditures in Trinidad ($44 million) and increased leasehold acquisitions ($42 million). Exploration and development expenditures for the first six months of 2024 of $3,010 million consisted of $2,629 million in development drilling and facilities, $335 million in exploration, $26 million in property acquisitions and $20 million in capitalized interest. Exploration and development expenditures for the first six months of 2023 of $2,846 million consisted of $2,545 million in development drilling and facilities, $275 million in exploration, $16 million in capitalized interest and $10 million in property acquisitions.

Previous wording

Financial Commodity and Other Derivative Transactions. As more fully discussed in Note 12 to the Consolidated Financial Statements included in EOG's 2023 Annual Report, EOG engages in price risk management activities from time to time. These activities are intended to manage EOG's exposure to fluctuations in commodity prices for crude oil, NGLs and natural gas. EOG utilizes financial commodity derivative instruments, primarily price swap, option, swaption, collar and basis swap contracts, as a means to manage this price risk. EOG has not designated any of its financial commodity and other derivative contracts as accounting hedges and, accordingly, accounts for financial commodity and other derivative contracts using the mark-to-market accounting method, including the Brent linked gas sales contract. Under this accounting method, changes in the fair value of outstanding financial and other derivative instruments are recognized as gains or losses in the period of change and are recorded as Gains on Mark-to-Market Financial Commodity and Other Derivative Contracts on the Condensed Consolidated Statements of Income and Comprehensive Income. The related cash flow impact is reflected in Cash Flows from Operating Activities on the Condensed Consolidated Statements of Cash Flows.

Current wording

Financial Commodity and Other Derivative Transactions. As more fully discussed in Note 12 to the Consolidated Financial Statements included in EOG's 2023 Annual Report, EOG engages in price risk management activities from time to time. These activities are intended to manage EOG's exposure to fluctuations in commodity prices for crude oil, NGLs and natural gas. EOG utilizes financial commodity derivative instruments, primarily price swap, option, swaption, collar and basis swap contracts, as a means to manage this price risk. EOG has not designated any of its financial commodity and other derivative contracts as accounting hedges and, accordingly, accounts for financial commodity and other derivative contracts using the mark-to-market accounting method, including the Brent linked gas sales contract. Under this accounting method, changes in the fair value of outstanding financial and other derivative instruments are recognized as gains or losses in the period of change and are recorded as Gains (Losses) on Mark-to-Market Financial Commodity and Other Derivative Contracts on the Condensed Consolidated Statements of Income and Comprehensive Income. The related cash flow impact is reflected in Cash Flows from Operating Activities on the Condensed Consolidated Statements of Cash Flows.