EOG RESOURCES INC

Previous wording

EOG Resources, Inc., together with its subsidiaries (collectively, EOG), is one of the largest independent (non-integrated) crude oil and natural gas companies in the United States of America (United States) with proved reserves in the United States and the Republic of Trinidad and Tobago (Trinidad). EOG is focused on being among the lowest-cost, highest-return and lowest-emissions producers, playing a significant role in the long-term future of energy. EOG operates under a consistent business and operational strategy that focuses predominantly on maximizing the rate of return on investment of capital by controlling operating costs and capital expenditures and maximizing reserve recoveries. Pursuant to this strategy, each prospective drilling location is evaluated by its estimated rate of return. This strategy is intended to enhance the generation of cash flow and earnings from each unit of production on a cost-effective basis, allowing EOG to maximize long-term shareholder value and maintain a strong balance sheet. EOG implements its strategy primarily by emphasizing the drilling of internally generated prospects in order to find and develop low-cost reserves. Maintaining the lowest possible operating cost structure, coupled with efficient and safe operations and robust environmental stewardship practices and performance, is integral in the implementation of EOG's strategy.

Current wording

EOG Resources, Inc., together with its subsidiaries (collectively, EOG), is one of the largest independent (non-integrated) crude oil and natural gas companies in the United States of America (United States) with proved reserves in the United States and the Republic of Trinidad and Tobago (Trinidad). EOG is focused on being among the highest return and lowest cost producers, committed to strong environmental performance and playing a significant role in the long-term future of energy. EOG operates under a consistent business and operational strategy that focuses on a comprehensive approach to developing acreage through industry cycles. EOG evaluates rate of return, net present value, margins, payback period and other key metrics. This strategy is intended to enhance the generation of cash flow and earnings from each unit of production on a cost-efficient basis, allowing EOG to maximize long-term growth in shareholder value and maintain a strong balance sheet. EOG implements its strategy primarily by emphasizing the drilling of internally generated prospects in order to find and develop low-cost reserves. Maintaining the lowest possible operating cost structure, coupled with efficient and safe operations and robust environmental stewardship practices and performance, is integral in the implementation of EOG's strategy.

Previous wording

Commodity Prices. Prices for crude oil and condensate, natural gas liquids (NGLs) and natural gas have historically been volatile. This volatility is expected to continue due to the many uncertainties associated with the world political and economic environment and the global supply of, and demand for, crude oil, NGLs and natural gas and the availability of other energy supplies, the relative competitive relationships of the various energy sources in the view of consumers and other factors.

Current wording

Commodity Prices. Prices for crude oil and condensate, natural gas liquids (NGLs) and natural gas have historically been volatile. This volatility is expected to continue due to the many uncertainties associated with the world political and economic environment, the global supply of, and demand for, crude oil, NGLs and natural gas, the availability of other energy supplies and other factors, including tariffs, trade policies and agreements and trade barriers or other restrictions imposed by the U.S. government or other governments and the related impact of such measures on commodity and financial markets.

Previous 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.

Current wording

For the first three months of 2025, the average U.S. New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $71.42 per barrel and $3.66 per million British thermal units (MMBtu), respectively, representing a decrease of 7% and an increase of 63%, respectively, from the average NYMEX prices for the same period in 2024. 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 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.

Current wording

Based on EOG's tax position, EOG's price sensitivity as of March 31, 2025, for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGL price, is approximately $159 million for net income and $204 million for pretax cash flows from operating activities, in each case for the full-year 2025.

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 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.

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 March 31, 2025) been determined under long-term marketing contracts, EOG's price sensitivity as of March 31, 2025, for each $0.10 per thousand cubic feet increase or decrease in natural gas price, is approximately $33 million for net income and $43 million for pretax cash flows from operating activities, in each case for the full-year 2025.

Previous 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.

Current wording

Inflation Considerations. As further discussed in EOG's Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 27, 2025 (EOG's 2024 Annual Report), during 2024 and the early part of 2025, EOG continued to see diminished inflationary pressures on its operating costs and capital expenditures (e.g., for fuel, wellbore tubulars, facilities manufactured using steel, labor and drilling and completion services) and, in certain circumstances, saw declines in prices. However, because the market for such materials, services and labor continues to fluctuate, there can be no assurance that the inflationary pressures experienced by EOG in prior periods will not resume (for example, as a result of the imposition of tariffs or other trade barriers). Further, the timing and impact of any future price changes on EOG's operating costs and capital expenditures is uncertain.

Previous wording

However, there can be no assurance that such efforts will offset, largely or at all, the impacts of any future inflationary pressures on EOG's operating costs and capital expenditures. Further, EOG expects the market for drilling and completion services and related labor and materials will continue to fluctuate and, as a result, there can be no assurance regarding the timing and impact of any future price changes on EOG's operating costs and capital expenditures and, in turn, on EOG's cash flows, results of operations, liquidity, capital resources, cash requirements or financial position or its ability to conduct its day-to-day drilling, completion and production operations.

Current wording

EOG plans to continue with these initiatives and actions, though there can be no assurance that such efforts will offset, largely or at all, the impacts of any future inflationary pressures (such as from tariffs or other trade barriers) on EOG's operating costs and capital expenditures, cash flows and results of operations. Further, there can be no assurance that the factors contributing to any such future inflationary pressures will not impact EOG's ability to conduct its future day-to-day drilling, completion and production operations.

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 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.

Current wording

Climate Change. For a 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 2024 Annual Report. EOG will continue to monitor and assess any climate change-related developments 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 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.

Current wording

During the first three months of 2025, EOG continued to focus on initiatives to increase its drilling, completion and operating efficiencies and improve well performance and, in turn, mitigate the inflationary pressures on its operating costs and capital expenditures experienced in prior periods. In addition, EOG continued to evaluate certain potential crude oil and condensate, NGLs and natural gas exploration and development prospects and to 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 71% and 72% of EOG's United States production during the first three months of 2025 and 2024, respectively. During the first three months of 2025, EOG's drilling and completion activities occurred primarily in the Delaware Basin and the Eagle Ford play. EOG's major producing areas in the United States are in New Mexico and Texas.

Previous wording

Trinidad. In Trinidad, EOG continues to deliver natural gas under existing supply contracts. Several fields in the South East Coast Consortium (SECC) Block, Modified U(a) Block, Block 4(a), the Banyan Field and the Sercan Area have been developed and are producing natural gas which is sold to the National Gas Company of Trinidad and Tobago Limited, and crude oil and condensate which is sold to Heritage Petroleum Company Limited.

Current wording

Trinidad. In Trinidad, EOG continues to deliver natural gas under existing supply contracts. Several fields in the South East Coast Consortium (SECC) Block, Modified U(a) Block, Block 4(a) and Banyan and Sercan Areas have been developed and are producing natural gas which is sold to the National Gas Company of Trinidad and Tobago Limited and its subsidiary, and crude oil and condensate which is sold to Heritage Petroleum Company Limited.

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. During the first nine months of 2024, EOG continued to prepare for the drilling of an exploration well in this block.

Current wording

In November 2021, a subsidiary of EOG was granted an exploration permit for the WA-488-P Block, located offshore Western Australia. The company has deferred drilling plans to further evaluate the prospect.

Previous 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.

Current wording

2025 Capital and Operating Plan. Total 2025 capital expenditures are estimated to range from approximately $5.8 billion to $6.2 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 2025 total crude oil, NGLs and natural gas production is expected to increase modestly versus 2024. In addition, EOG plans to continue to spend a portion of its anticipated 2025 capital expenditures on leasing acreage, evaluating new prospects and transportation infrastructure.

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 11% at September 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.

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 14% at both March 31, 2025 and December 31, 2024. As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity.

Previous 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.

Current wording

At March 31, 2025, EOG maintained a strong financial and liquidity position, including $6.6 billion of cash and cash equivalents on hand and $1.9 billion of availability under its senior unsecured revolving credit facility.

Previous 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.

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 permitted eligible taxpayers to postpone certain tax filings and payments. In February 2025, EOG paid approximately $700 million of such federal tax payments related to the 2024 tax year.

Previous wording

Dividend Declarations. On February 22, 2024, the Board of Directors (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

Dividend Declarations. On February 27, 2025, the Board of Directors (Board) declared a quarterly cash dividend on the common stock of $0.975 per share paid on April 30, 2025, to stockholders of record as of April 16, 2025.

Previous wording

On November 7, 2024, the Board increased the quarterly cash dividend on the common stock from the previous $0.91 per share to $0.975 per share, effective beginning with the dividend payable on January 31, 2025, to stockholders of record as of January 17, 2025.

Current wording

On May 1, 2025, the Board declared a quarterly cash dividend on the common stock of $0.975 per share to be paid on July 31, 2025, to stockholders of record as of July 17, 2025.

Previous 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.

Current wording

The following review of operations for the three months ended March 31, 2025 and 2024 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 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.

Current wording

Operating Revenues and Other. During the first quarter of 2025, operating revenues decreased $454 million, or 7%, to $5,669 million from $6,123 million for the same period of 2024. Total revenues from sales of EOG's production of crude oil and condensate, NGLs and natural gas for the first quarter of 2025 increased $127 million, or 3%, to $4,502 million from $4,375 million for the same period of 2024. EOG recognized net losses on the mark-to-market of financial commodity and other derivative contracts of $191 million for the first quarter of 2025 compared to net gains of $237 million for the same period of 2024. Gathering, processing and marketing revenues for the first quarter of 2025 decreased $119 million to $1,340 million from $1,459 million for the same period of 2024. EOG recognized net losses on asset dispositions of $1 million for the first quarter of 2025 compared to net gains of $26 million for the same period of 2024.

Previous wording

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

Current wording

Volume and price statistics for the three-month periods ended March 31, 2025 and 2024 were as follows:

Previous 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.

Current wording

Natural gas revenues for the first quarter of 2025 increased $255 million, or 67%, to $637 million from $382 million for the same period of 2024. The increase was due to a higher composite average price ($214 million) and an increase in natural gas deliveries ($41 million). Natural gas deliveries for the first quarter of 2025 increased 222 MMcfd, or 12%, compared to the same period of 2024 due primarily to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in Dorado and Trinidad. EOG's composite natural gas price for the first quarter of 2025 increased 51% to $3.41 per Mcf compared to $2.26 per Mcf for the same period of 2024.

Previous 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.

Current wording

During the first quarter of 2025, EOG recognized net losses on the mark-to-market of financial commodity and other derivative contracts of $191 million compared to net gains of $237 million for the same period of 2024. The net losses of $191 million included gains of $6 million related to the Brent Crude Oil (Brent) linked gas sales contract. During the first quarter of 2025, net cash paid for settlements of financial commodity derivative contracts was $38 million compared to net cash received from settlements of financial commodity derivative contracts of $55 million for the same period of 2024.

Previous wording

Gathering, processing and marketing revenues are revenues generated from sales of third-party crude oil, NGLs and natural gas, as well as fees associated with gathering third-party natural gas and revenues from sales of EOG-owned sand. Purchases and sales of third-party crude oil and natural gas may be utilized in order to balance firm capacity at third-party facilities with production in certain areas and to utilize excess capacity at EOG-owned facilities. EOG sells sand primarily in order to balance the timing of firm purchase agreements with completion operations. Marketing costs represent the costs to purchase third-party crude oil, natural gas and sand and the associated transportation costs, as well as costs associated with EOG-owned sand sold to third parties.

Current wording

Gathering, processing and marketing revenues are revenues generated from sales of third-party crude oil, NGLs and natural gas, as well as fees associated with gathering third-party natural gas and revenues from sales of EOG-owned sand. Purchases and sales of third-party crude oil and natural gas may be utilized in order to balance firm capacity at third-party facilities with production in certain areas and to utilize excess capacity at EOG-owned facilities. Marketing costs represent the costs to purchase third-party crude oil, natural gas and sand and the associated transportation costs, as well as costs associated with EOG-owned sand sold to third parties.

Previous 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.

Current wording

Gathering, processing and marketing revenues less marketing costs for the first quarter of 2025 decreased $40 million as compared to the same period of 2024 primarily due to lower margins on crude oil marketing activities, partially offset by higher margins on natural gas marketing activities.

Previous 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:

Current wording

Operating and Other Expenses. For the first quarter of 2025, operating expenses of $3,810 million were $42 million lower than the $3,852 million incurred during the first quarter of 2024. The following table presents the costs per barrel of oil equivalent (Boe) for the three-month periods ended March 31, 2025 and 2024:

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 three 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.

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 March 31, 2025, compared to the same period of 2024, are set forth below. See "Operating Revenues and Other" above for a discussion of volumes.

Previous 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.

Current wording

GP&T costs of $440 million for the first quarter of 2025 increased $27 million from $413 million for the same prior year period primarily due to increased GP&T costs related to increased production in the Permian Basin and Utica, as well as increased third-party fees in the Utica, partially offset by a decrease in GP&T costs related to lower third-party fees in the Eagle Ford.

Previous 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.

Current wording

DD&A expenses for the first quarter of 2025 decreased $61 million to $1,013 million from $1,074 million for the same prior year period. DD&A expenses associated with oil and gas properties for the first quarter of 2025 were $72 million lower than the same prior year period. The decrease primarily reflects an adjustment to DD&A recorded in 2024 ($117 million) primarily related to natural gas production used by EOG's domestic gathering systems. In addition, increased production ($49 million), primarily in the United States, also contributed to the variance. DD&A expenses associated with other property, plant and equipment for the first quarter of 2025 were $11 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 $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.

Current wording

G&A expenses of $171 million for the first quarter of 2025 increased $9 million from $162 million for the same prior year period primarily due to increased professional services costs and information systems costs.

Previous 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).

Current wording

Interest expense, net of $47 million for the first quarter of 2025 increased $14 million compared to the same prior year period primarily due to the issuance in November 2024 of the $1,000 million aggregate principal amount of 5.650% Senior Notes due 2054.

Previous wording

Impairments include: amortization of unproved oil and gas property costs as well as impairments of proved oil and gas properties; other property, plant and equipment; and other assets. Unproved properties with acquisition costs that are not individually significant are aggregated, and the portion of such costs estimated to be nonproductive is amortized over the remaining lease term. Unproved properties with individually significant acquisition costs are reviewed individually for impairment.

Current wording

Impairments include: amortization of individually insignificant unproved oil and gas property costs as well as impairments of proved oil and gas properties; other property, plant and equipment; individually significant unproved oil and gas property costs; and other assets. Unproved properties with acquisition costs that are not individually significant are aggregated, and the portion of such costs estimated to be nonproductive is amortized over the remaining lease term. Unproved properties with individually significant acquisition costs are reviewed individually for impairment.

Previous wording

The following table sets forth impairments for the third quarter of 2024 and 2023 (in millions):

Current wording

The following table sets forth impairments for the first quarter of 2025 and 2024 (in millions):

Previous wording

Income taxes of $1,442 million for the first nine months of 2024 decreased from income taxes of $1,548 million for the first nine months of 2023 primarily due to decreased pretax income. The net effective tax rate for the first nine months of 2024 was unchanged from the prior year rate of 22%.

Current wording

Income taxes of $414 million for the first quarter of 2025 decreased from $511 million for the first quarter of 2024 primarily due to decreased pretax income. The net effective tax rate for the first quarter of 2025 was unchanged from the prior year rate of 22%.

Previous wording

Cash Flow. The primary sources of cash for EOG during the nine months ended September 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 nine months of 2024, EOG's cash balance increased $844 million to $6,122 million from $5,278 million at December 31, 2023.

Current wording

Cash Flow. The primary source of cash for EOG during the three months ended March 31, 2025, were funds generated from operations. The primary uses of cash were funds used in operations; exploration and development expenditures; dividend payments to stockholders; purchases of treasury stock; other property, plant and equipment expenditures; and net cash paid for settlements of financial commodity derivative contracts. During the first three months of 2025, EOG's cash balance decreased $493 million to $6,599 million from $7,092 million at December 31, 2024.

Previous wording

Net cash provided by operating activities of $9,380 million for the first nine months of 2024 increased $1,144 million compared to the same period of 2023 primarily due to an increase in wellhead revenues ($450 million), a decrease in net cash used in working capital and other assets and liabilities ($450 million), an increase in net cash received from settlements of financial commodity derivative contracts ($325 million), and a decrease in net cash paid for income taxes ($289 million), partially offset by the return of cash collateral posted for financial commodity derivative contracts in the first nine months of 2023 ($324 million) and an increase in cash operating expenses ($153 million).

Current wording

Net cash provided by operating activities of $2,289 million for the first three months of 2025 decreased $614 million compared to the same period of 2024 primarily due to an increase in net cash paid for income taxes ($730 million), net cash paid for settlements of financial commodity derivative contracts ($93 million), a decrease in gathering, processing and marketing revenues less marketing costs ($40 million) and an increase in cash operating expenses ($35 million), partially offset by a decrease in net cash used in working capital and other assets and liabilities ($162 million) and an increase in revenues from sales of crude oil and condensate, NGLs and natural gas ($127 million).

Previous wording

Net cash used in investing activities of $4,691 million for the first nine months of 2024 decreased $150 million compared to the same period of 2023 due to a decrease in cash used in working capital associated with investing activities ($610 million), partially offset by an increase in additions to other property, plant and equipment ($264 million), a decrease in proceeds from the sale of assets ($116 million) and an increase in additions to oil and gas properties ($80 million).

Current wording

Net cash used in investing activities of $1,430 million for the first three months of 2025 decreased $167 million compared to the same period of 2024 due to a decrease in additions to other property, plant and equipment ($248 million) and a decrease in additions to oil and gas properties ($104 million), partially offset by a decrease in net cash used in working capital associated with investing activities ($188 million).

Previous wording

Net cash used in financing activities of $3,845 million for the first nine months of 2024 included purchases of treasury stock ($2,253 million), cash dividend payments ($1,578 million) and repayment of finance lease liabilities ($25 million). Net cash used in financing activities of $4,041 million for the first nine months of 2023 included cash dividend payments ($2,041 million), repayments of long-term debt ($1,250 million), purchases of treasury stock ($728 million) and repayment of finance lease liabilities ($24 million).

Current wording

Net cash used in financing activities of $1,352 million for the first three months of 2025 included purchases of treasury stock ($806 million) and dividend payments to stockholders ($538 million). 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 dividend payments to stockholders ($525 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 $6.1 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. The table below sets out components of total expenditures for the nine-month periods ended September 30, 2024 and 2023 (in millions):

Current wording

Total Expenditures. For the full-year 2025, EOG's updated budget for exploration and development and other property, plant and equipment expenditures is estimated to range from approximately $5.8 billion to $6.2 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 three-month periods ended March 31, 2025 and 2024 (in millions):

Previous wording

(2) Leasehold acquisitions included $82 million and $60 million for the nine-month periods ended September 30, 2024 and 2023, respectively, related to non-cash property exchanges.

Current wording

(1) Leasehold acquisitions included $9 million and $31 million for the three-month periods ended March 31, 2025 and 2024, respectively, related to non-cash property exchanges.

Previous wording

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

Current wording

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