EOG RESOURCES INC

Previous 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.

Current wording

For the first nine months of 2024, the average U.S. New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $77.55 per barrel and $2.10 per million British thermal units (MMBtu), respectively, representing an increase of 0.2% and a decrease of 22%, 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

Based on EOG's tax position, EOG's price sensitivity as of June 30, 2024, for each $1.00 per barrel increase or decrease in wellhead crude oil and condensate price, combined with the estimated change in NGL price, is approximately $152 million for net income and $195 million for pretax cash flows from operating activities, in each case for the full-year 2024.

Current wording

Based on EOG's tax position, EOG's price sensitivity as of September 30, 2024, for each $1.00 per barrel increase or decrease in wellhead crude oil and condensate price, combined with the estimated change in NGL price, is approximately $153 million for net income and $196 million for pretax cash flows from operating activities, in each case for the full-year 2024.

Previous wording

Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for which prices have not (as of June 30, 2024) been determined under long-term marketing contracts, EOG's price sensitivity as of June 30, 2024, for each $0.10 per thousand cubic feet increase or decrease in wellhead natural gas price, is approximately $26 million for net income and $34 million for pretax cash flows from operating activities, in each case for the full-year 2024.

Current wording

Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for which prices have not (as of September 30, 2024) been determined under long-term marketing contracts, EOG's price sensitivity as of September 30, 2024, for each $0.10 per thousand cubic feet increase or decrease in wellhead natural gas price, is approximately $27 million for net income and $34 million for pretax cash flows from operating activities, in each case for the full-year 2024.

Previous 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.

Current wording

During the first nine 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 nine months of 2024 and 2023, respectively. During the first nine 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 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.

Current wording

During the first nine 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. EOG also completed one net exploratory well and is currently completing another exploratory well from the Oilbird platform 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 July 2024, EOG signed a farmout agreement with BP Trinidad and Tobago LLC, which allows EOG to earn a 50% working interest to develop the Coconut gas field in the East Mayaro and South East Galeota Areas. Additionally, EOG is currently in discussions with the Government of Trinidad and Tobago regarding the potential award of the Lower Reverse L and NCMA 4(a) Blocks in respect of the 2023 shallow water bid round. In the fourth quarter of 2024, EOG expects to recomplete two wells in the Sercan Area and also drill an exploratory well in the deep Teak, Samaan and Poui Area. Additionally, EOG expects to 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 half of 2024, EOG continued to prepare for the drilling of an exploration well in this block.

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. During the first nine months 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 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.

Current wording

2024 Capital and Operating Plan. Total 2024 capital expenditures are estimated to range from approximately $6.1 billion to $6.3 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, Utica and Rocky Mountain area. 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

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.

Current wording

At September 30, 2024, EOG maintained a strong financial and liquidity position, including $6.1 billion of cash and cash equivalents on hand and $1.9 billion of availability under its senior unsecured revolving credit facility. At September 30, 2024, the $500 million aggregate principal amount of its 3.15% Senior Notes due 2025 was classified as long-term debt based upon EOG's intent and ability to ultimately replace such amount with other long-term debt.

Previous wording

The Internal Revenue Service has made several announcements of tax relief related to recent severe weather events occurring in various Texas counties, including Harris County where EOG's corporate offices are located. The tax relief permits eligible taxpayers to postpone certain tax filings and payments.

Current wording

The Internal Revenue Service previously announced tax relief related to 2024 severe weather events occurring in various Texas counties, including Harris County where EOG's corporate offices are located. The tax relief permits eligible taxpayers to postpone certain tax filings and payments.

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 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.

Current wording

Under the Share Repurchase 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 Share Repurchase 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.

Previous 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.

Current wording

The following review of operations for the three months and nine months ended September 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 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.

Current wording

Operating Revenues. During the third quarter of 2024, operating revenues decreased $247 million, or 4%, to $5,965 million from $6,212 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 third quarter of 2024 decreased $251 million, or 5%, to $4,384 million from $4,635 million for the same period of 2023. EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $79 million for the third quarter of 2024 compared to net gains of $43 million for the same period of 2023. Gathering, processing and marketing revenues for the third quarter of 2024 increased $3 million to $1,481 million from $1,478 million for the same period of 2023. Net losses on asset dispositions were $7 million for the third quarter of 2024 compared to net gains of $35 million for the same period of 2023.

Previous 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.

Current wording

NGL revenues for the third quarter of 2024 increased $23 million, or 5%, to $524 million from $501 million for the same period of 2023 due to an increase of 23.2 MBbld, or 10%, 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 third quarter of 2024 decreased 5% to $22.42 per barrel compared to $23.56 per barrel for the same period of 2023.

Previous 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.

Current wording

Wellhead natural gas revenues for the third quarter of 2024 decreased $45 million, or 11%, to $372 million from $417 million for the same period of 2023. The decrease was due to a lower composite average price ($114 million), partially offset by an increase in natural gas deliveries ($69 million). Natural gas deliveries for the third quarter of 2024 increased 266 MMcfd, or 16%, 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 third quarter of 2024 decreased 23% to $2.05 per Mcf compared to $2.66 per Mcf for the same period of 2023.

Previous 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.

Current wording

During the third quarter of 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $79 million compared to net gains of $43 million for the same period of 2023. The net gains of $79 million included gains of $15 million related to the Brent crude oil (Brent) linked gas sales contract. During the third quarter of 2024, net cash received from settlements of financial commodity derivative contracts was $61 million compared to net cash received from settlements of financial commodity derivative contracts of $23 million for the same period of 2023.

Previous wording

Gathering, processing and marketing revenues less marketing costs for the second quarter of 2024 increased $20 million as compared to the same period of 2023 primarily due to higher margins on crude oil and natural gas marketing activities, partially offset by lower margins on sand sales.

Current wording

Gathering, processing and marketing revenues less marketing costs for the third quarter of 2024 decreased $114 million as compared to the same period of 2023 primarily due to lower margins on crude oil marketing activities.

Previous 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:

Current wording

Operating and Other Expenses. For the third quarter of 2024, operating expenses of $3,876 million were $221 million higher than the $3,655 million incurred during the third quarter of 2023. The following table presents the costs per barrel of oil equivalent (Boe) for the three-month periods ended September 30, 2024 and 2023:

Previous 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.

Current wording

Lease and well expenses of $392 million for the third quarter of 2024 increased $23 million from $369 million for the same prior year period primarily due to increased operating and maintenance costs ($18 million) and increased lease and well administrative expenses ($6 million), both 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

GP&T costs of $423 million for the second quarter of 2024 increased $27 million from $396 million for the same prior year period primarily due to increased GP&T costs related to increased production in the Permian Basin.

Current wording

GP&T costs of $445 million for the third quarter of 2024 increased $39 million from $406 million for the same prior year period primarily due to increased GP&T costs related to increased production in the Permian Basin and Utica.

Previous wording

DD&A expenses for the second quarter of 2024 increased $118 million to $984 million from $866 million for the same prior year period. DD&A expenses associated with oil and gas properties for the second quarter of 2024 were $114 million higher than the same prior year period. The increase primarily reflects increased production in the United States ($58 million), and increased unit rates in the United States ($38 million) and in Trinidad ($10 million).

Current wording

DD&A expenses for the third quarter of 2024 increased $133 million to $1,031 million from $898 million for the same prior year period. DD&A expenses associated with oil and gas properties for the third quarter of 2024 were $123 million higher than the same prior year period. The increase primarily reflects increased production in the United States ($54 million) and in Trinidad ($8 million), and increased unit rates in the United States ($50 million) and in Trinidad ($11 million). DD&A expenses associated with other property, plant and equipment for the third quarter of 2024 were $10 million higher than the same prior year period primarily due to an increase in expenses related to GP&T assets and equipment.

Previous 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.

Current wording

G&A expenses of $167 million for the third quarter of 2024 increased $6 million from $161 million for the same prior year period primarily due to increased professional and other services costs.

Previous 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.

Current wording

Taxes other than income for the third quarter of 2024 decreased $58 million to $283 million (6.5% of wellhead revenues) from $341 million (7.4% of wellhead revenues) for the same prior year period. The decrease in taxes other than income was primarily due to increased state severance tax refunds ($30 million) and decreased severance/production taxes ($25 million), all in the United States.

Previous wording

Other income, net of $66 million for the second quarter of 2024 increased $15 million from $51 million for the same prior year period. The increase was primarily due to increased interest income.

Current wording

Other income, net of $76 million for the third quarter of 2024 increased $24 million from $52 million for the same prior year period. The increase was primarily due to increased interest income.

Previous 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%.

Current wording

Income taxes of $461 million for the third quarter of 2024 decreased from income taxes of $543 million for the third quarter of 2023 primarily due to decreased pretax income. The net effective tax rate for the third quarter of 2024 increased to 22% from 21% for the third quarter of 2023.

Previous wording

Operating Revenues. During the first six months of 2024, operating revenues increased $531 million, or 5%, to $12,148 million from $11,617 million for the same period of 2023. Total wellhead revenues for the first six months of 2024 increased $701 million, or 9%, to $8,885 million from $8,184 million for the same period of 2023. During the first six months of 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $190 million compared to net gains of $477 million for the same period of 2023. Gathering, processing and marketing revenues for the first six months of 2024 increased $123 million, or 4%, to $2,978 million from $2,855 million for the same period of 2023. Net gains on asset dispositions were $46 million for the first six months of 2024 compared to net gains of $60 million for the same period of 2023.

Current wording

Operating Revenues. During the first nine months of 2024, operating revenues increased $284 million, or 2%, to $18,113 million from $17,829 million for the same period of 2023. Total wellhead revenues for the first nine months of 2024 increased $450 million, or 4%, to $13,269 million from $12,819 million for the same period of 2023. During the first nine months of 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $269 million compared to net gains of $520 million for the same period of 2023. Gathering, processing and marketing revenues for the first nine months of 2024 increased $126 million, or 3%, to $4,459 million from $4,333 million for the same period of 2023. Net gains on asset dispositions were $39 million for the first nine months of 2024 compared to net gains of $95 million for the same period of 2023.

Previous wording

Wellhead volume and price statistics for the six-month periods ended June 30, 2024 and 2023 were as follows:

Current wording

Wellhead volume and price statistics for the nine-month periods ended September 30, 2024 and 2023 were as follows:

Previous wording

Wellhead crude oil and condensate revenues for the first six months of 2024 increased $738 million, or 11%, to $7,172 million from $6,434 million for the same period of 2023 due to a higher composite average price ($402 million) and an increase of 21.8 MBbld, or 5%, in wellhead crude oil and condensate production ($336 million). Increased production was primarily in the Permian Basin and the Utica Shale. EOG's composite wellhead crude oil and condensate price for the first six months of 2024 increased 6% to $80.58 per barrel compared to $76.09 per barrel for the same period of 2023.

Current wording

Wellhead crude oil and condensate revenues for the first nine months of 2024 increased $509 million, or 5%, to $10,660 million from $10,151 million for the same period of 2023 due to an increase of 17.8 MBbld, or 4%, in wellhead crude oil and condensate production ($420 million) and a higher composite average price ($89 million). Increased production was primarily in the Permian Basin and Utica. EOG's composite wellhead crude oil and condensate price for the first nine months of 2024 increased 1% to $79.34 per barrel compared to $78.67 per barrel for the same period of 2023.

Previous wording

NGL revenues for the first six months of 2024 increased $129 million, or 14%, to $1,028 million from $899 million for the same period of 2023 due to an increase of 24.4 MBbld, or 11%, in NGL deliveries ($109 million) and a higher composite average price ($20 million). Increased production was primarily from the Permian Basin. EOG's composite NGL price for the first six months of 2024 increased 2% to $23.70 per barrel compared to $23.23 per barrel for the same period of 2023.

Current wording

NGL revenues for the first nine months of 2024 increased $152 million, or 11%, to $1,552 million from $1,400 million for the same period of 2023 due to an increase of 24.0 MBbld, or 11%, in NGL deliveries ($159 million), partially offset by a lower composite average price ($7 million). Increased production was primarily from the Permian Basin. EOG's composite NGL price for the first nine months of 2024 decreased to $23.25 per barrel compared to $23.35 per barrel for the same period of 2023.

Previous wording

Wellhead natural gas revenues for the first six months of 2024 decreased $166 million, or 20%, to $685 million from $851 million for the same period of 2023. The decrease was due to a lower composite average price ($281 million), partially offset by an increase in natural gas deliveries ($115 million). Natural gas deliveries for the first six months of 2024 increased 211 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. EOG's composite wellhead natural gas price for the first six months of 2024 decreased 29% to $2.02 per Mcf compared to $2.84 per Mcf for the same period of 2023.

Current wording

Wellhead natural gas revenues for the first nine months of 2024 decreased $211 million, or 17%, to $1,057 million from $1,268 million for the same period of 2023. The decrease was due to a lower composite average price ($393 million), partially offset by an increase in natural gas deliveries ($182 million). Natural gas deliveries for the first nine months of 2024 increased 229 MMcfd, or 14%, 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 first nine months of 2024 decreased 27% to $2.03 per Mcf compared to $2.78 per Mcf for the same period of 2023.

Previous wording

During the first six months of 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $190 million compared to net gains of $477 million for the same period of 2023. The net gains of $190 million included gains of $133 million related to the Brent linked gas sales contract. During the first six months of 2024, net cash received from settlements of financial commodity derivative contracts was $134 million. Net cash paid for settlements of financial commodity derivative contracts was $153 million for the same period of 2023.

Current wording

During the first nine months of 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $269 million compared to net gains of $520 million for the same period of 2023. The net gains of $269 million included gains of $148 million related to the Brent linked gas sales contract. During the first nine months of 2024, net cash received from settlements of financial commodity derivative contracts was $195 million. Net cash paid for settlements of financial commodity derivative contracts was $130 million for the same period of 2023.

Previous 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.

Current wording

Gathering, processing and marketing revenues less marketing costs for the first nine months of 2024 decreased $68 million as compared to the same period of 2023 primarily due to lower margins on crude oil marketing activities, sand sales and natural gas marketing activities.

Previous wording

Operating and Other Expenses. For the first six months of 2024, operating expenses of $7,747 million were $672 million higher than the $7,075 million incurred during the same period of 2023. The following table presents the costs per Boe for the six-month periods ended June 30, 2024 and 2023:

Current wording

Operating and Other Expenses. For the first nine months of 2024, operating expenses of $11,623 million were $893 million higher than the $10,730 million incurred during the same period of 2023. The following table presents the costs per Boe for the nine-month periods ended September 30, 2024 and 2023:

Previous 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 six 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.

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 nine months ended September 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 $786 million for the first six months of 2024 increased $79 million from $707 million for the same prior year period primarily due to increased operating and maintenance costs ($54 million), increased workover expenditures ($17 million) and increased lease and well administrative expenses ($13 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 $1,178 million for the first nine months of 2024 increased $102 million from $1,076 million for the same prior year period primarily due to increased operating and maintenance costs ($71 million), increased lease and well administrative expenses ($19 million) and increased workover expenditures ($14 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

GP&T costs of $836 million for the first six months of 2024 increased $45 million from $791 million for the same prior year period primarily due to increased GP&T costs related to increased production in the Permian Basin.

Current wording

GP&T costs of $1,281 million for the first nine months of 2024 increased $84 million from $1,197 million for the same prior year period primarily due to increased GP&T costs related to increased production in the Permian Basin and Utica.

Previous 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.

Current wording

DD&A expenses for the first nine months of 2024 increased $527 million to $3,089 million from $2,562 million for the same prior year period. DD&A expenses associated with oil and gas properties for the first nine months of 2024 were $502 million higher than the same prior year period. The increase primarily reflects increased production in the United States ($185 million) and in Trinidad ($18 million), and increased unit rates in the United States ($147 million) and in Trinidad ($30 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 nine months of 2024 were $25 million higher than the same prior year period primarily due to an increase in expenses related to GP&T assets and equipment.

Previous wording

G&A expenses of $313 million for the first six months of 2024 increased $26 million from $287 million for the same prior year period primarily due to increased employee-related costs.

Current wording

G&A expenses of $480 million for the first nine months of 2024 increased $32 million from $448 million for the same prior year period primarily due to increased employee-related costs ($20 million), professional and other services costs ($9 million) and information systems costs ($8 million).

Previous 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.

Current wording

Interest expense, net of $100 million for the first nine months of 2024 decreased $13 million compared to the same prior year period primarily due to higher capitalized interest ($8 million) and the repayment in March 2023 of the $1,250 million aggregate principal amount of 2.625% Senior Notes due 2023 ($7 million).

Previous 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).

Current wording

Exploration costs of $122 million for the first nine months of 2024 decreased $18 million from $140 million for the same prior year period due primarily to decreased geological and geophysical expenditures ($27 million), partially offset by increased administrative expenses ($6 million) and delay rentals ($3 million).

Previous wording

Taxes other than income for the first six months of 2024 increased $33 million to $675 million (7.6% of wellhead revenues) from $642 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 ($50 million), partially offset by decreased ad valorem/property taxes ($18 million), all in the United States.

Current wording

Taxes other than income for the first nine months of 2024 decreased $25 million to $958 million (7.2% of wellhead revenues) from $983 million (7.7% of wellhead revenues) for the same prior year period. The decrease in taxes other than income was primarily due to increased state severance tax refunds ($30 million) and decreased ad valorem/property taxes ($21 million), partially offset by increased severance/production taxes ($24 million), all in the United States.