EOG Resources Reports Over Seven Percent Increase in U.S. Natural Gas Production and Record First Quarter Net Income Available to Common Of $212.5 Million or $1.79 Per Share

Apr 23, 2001, 01:00 ET from EOG Resources, Inc.

    HOUSTON, April 23 /PRNewswire Interactive News Release/ -- EOG Resources,
 Inc. (NYSE:   EOG), an S&P 500 Index company, today reported record first
 quarter net income available to common of $212.5 million, or $1.79 per share
 compared to net income available to common of $38.8 million, or $.33 per share
 in the first quarter a year ago.
     "At a time when the industry as a whole is struggling to maintain flat gas
 production, EOG increased U.S. natural gas production by over seven percent.
 This demonstrates our ability to continue to grow our production organically,"
 said Mark G. Papa, chairman and chief executive officer.  "Our operations and
 drilling inventory are in the best shape ever; we are off to a great start in
 2001."
     Versus the same quarter a year ago, EOG's North American daily natural gas
 production increased 4.2 percent, crude and condensate production increased
 7.4 percent and natural gas liquids production decreased 31.4 percent.  This
 resulted in overall EOG North American production growth of approximately four
 percent, consistent with the 2001 full year target.  Based on shares
 outstanding, production per share increased approximately five percent in
 North America.
     "EOG has significantly ramped up its North American activity," Papa noted.
 "Over the last year, our acreage position (including trades) has increased
 over 50 percent, our geological and geophysical headcount has grown by over
 20 percent and EOG currently has 50 percent more rigs drilling than this time
 last year.  To position EOG for the future, North American capital
 expenditures increased during the first quarter to $185.0 million, compared to
 $85.3 million in the first quarter 2000."
     Results from the quarter further solidify EOG's focus on organic growth
 and its long-term financial strategy.  EOG continued to strengthen its
 financial structure with the following:
      --   Reduced the number of common shares outstanding by approximately
           700,000 to 116.2 million,
      --   Paid down $214.1 million of debt, reducing the debt to total
           capitalization ratio from 38.3 percent at year end 2000 to
           29.6 percent at the end of the first quarter 2001 and
      --   Increased the annual common dividend by 14 percent from $.14 to
           $.16 per share.
 
     EOG's first quarter conference call will be available via live audio
 webcast at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) on Monday,
 April 23, 2001.  To listen to this webcast, log on to www.eogresources.com.
 The webcast will be archived on EOG's website for 14 days.
     EOG Resources, Inc. is one of the largest independent (non-integrated) oil
 and gas companies in the United States and is the operator of substantial
 proved reserves in the U.S., Canada and offshore Trinidad.  EOG Resources,
 Inc. is listed on the New York Stock Exchange and is traded under the ticker
 symbol "EOG".
 
     This press release includes forward looking statements within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934.  Although EOG believes that its expectations are based
 on reasonable assumptions, it can give no assurance that such expectations
 will be achieved.  Important factors that could cause actual results to differ
 materially from those in the forward looking statements herein include, but
 are not limited to, the timing and extent of changes in reserve quantities and
 commodity prices for crude oil, natural gas and related products and interest
 rates, the extent of EOG's success in discovering, developing, producing and
 marketing reserves and in acquiring oil and gas properties, uncertainties and
 changes associated with international projects and operations including
 reserve estimates, markets, contract terms, construction, financing
 availability, operating costs, and political developments around the world,
 and conditions of the capital and equity markets during the periods covered by
 the forward looking statements.
 
 
                              EOG RE

SOURCES, INC. FINANCIAL REPORT (Unaudited; in millions except per share) Quarter Ended March 31 2001 2000 Net Operating Revenues $597.3 $259.9 Net Income Available to Common $212.5 $38.8 Net Income Per Share Available to Common Basic $1.83 $0.33 Diluted $1.79 $0.33 Average Number of Shares Outstanding Basic 116.4 117.8 Diluted 119.0 118.3 SUMMARY INCOME STATEMENT (Unaudited; in thousands) Quarter Ended March 31 2001 2000 Net Operating Revenues Natural Gas $521,477 $186,200 Crude Oil, Condensate and Natural Gas Liquids 75,194 73,067 Gains on Sales of Reserves and Related Assets and Other, Net 582 629 Total 597,253 259,896 Operating Expenses Lease and Well 42,574 33,739 Exploration 20,265 12,945 Dry Hole 15,684 5,761 Impairments 15,764 8,402 Depreciation, Depletion and Amortization 93,961 84,137 General and Administrative 17,949 16,287 Taxes Other Than Income 37,032 18,415 Total 243,229 179,686 Operating Income 354,024 80,210 Other Income (Expense), Net (639) 17 Income Before Interest Expense and Income Taxes 353,385 80,227 Interest Expense, Net 13,289 14,568 Income Before Income Taxes 340,096 65,659 Income Tax Provision 124,849 24,169 Net Income 215,247 41,490 Preferred Stock Dividends (2,721) (2,654) Net Income Available to Common $212,526 $38,836 EOG RE

SOURCES, INC. OPERATING HIGHLIGHTS (Unaudited) Quarter Ended March 31 2001 2000 Wellhead Volumes and Prices Natural Gas Volumes (MMcf/d) United States 704 656 Canada 117 132 North America 821 788 Trinidad 120 128 Total 941 916 Average Natural Gas Prices ($/Mcf) United States $6.97 $2.53 Canada 6.60 2.17 North America Composite 6.91 2.47 Trinidad 1.22 1.17 Total Composite 6.19 2.29 Crude Oil/Condensate Volumes (MBD) United States 23.0 20.7 Canada 1.7 2.3 North America 24.7 23.0 Trinidad 2.2 2.9 Total 26.9 25.9 Average Crude Oil/Condensate Prices ($/Bbl) United States $28.09 $28.14 Canada 25.25 26.83 North America Composite 27.89 28.01 Trinidad 28.84 27.85 Total Composite 27.97 27.99 Natural Gas Liquids Volumes (MBD) United States 3.0 4.3 Canada 0.5 0.8 Total 3.5 5.1 Average Natural Gas Liquids Prices ($/Bbl) United States $23.95 $20.64 Canada 23.46 13.64 Total Composite 23.88 19.58 Natural Gas Equivalent Volumes (MMcfe/d) United States 860 805 Canada 131 151 North America 991 956 Trinidad 132 145 Total 1,123 1,101 Total Bcfe Deliveries 101.1 100.2 EOG RE

SOURCES, INC. SUPPLEMENTAL FINANCIAL INFORMATION DISCRETIONARY CASH FLOW AVAILABLE TO COMMON (Unaudited; in thousands) Quarter Ended March 31 2001 2000 Net Income Available to Common $212,526 $38,836 Items Not Requiring Cash Depreciation, Depletion, and Amortization 93,961 84,137 Impairments 15,764 8,402 Deferred Income Taxes 34,452 17,045 Other, Net 5,497 826 Exploration Expenses 20,265 12,945 Dry Hole Expense 15,684 5,761 Losses on Sales of Reserves and Related Assets and Other, Net 316 1,571 Other, Net 2,013 (1,890) Total Discretionary Cash Flow Available to Common $400,478 $167,633 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X24879237

SOURCE EOG Resources, Inc.
    HOUSTON, April 23 /PRNewswire Interactive News Release/ -- EOG Resources,
 Inc. (NYSE:   EOG), an S&P 500 Index company, today reported record first
 quarter net income available to common of $212.5 million, or $1.79 per share
 compared to net income available to common of $38.8 million, or $.33 per share
 in the first quarter a year ago.
     "At a time when the industry as a whole is struggling to maintain flat gas
 production, EOG increased U.S. natural gas production by over seven percent.
 This demonstrates our ability to continue to grow our production organically,"
 said Mark G. Papa, chairman and chief executive officer.  "Our operations and
 drilling inventory are in the best shape ever; we are off to a great start in
 2001."
     Versus the same quarter a year ago, EOG's North American daily natural gas
 production increased 4.2 percent, crude and condensate production increased
 7.4 percent and natural gas liquids production decreased 31.4 percent.  This
 resulted in overall EOG North American production growth of approximately four
 percent, consistent with the 2001 full year target.  Based on shares
 outstanding, production per share increased approximately five percent in
 North America.
     "EOG has significantly ramped up its North American activity," Papa noted.
 "Over the last year, our acreage position (including trades) has increased
 over 50 percent, our geological and geophysical headcount has grown by over
 20 percent and EOG currently has 50 percent more rigs drilling than this time
 last year.  To position EOG for the future, North American capital
 expenditures increased during the first quarter to $185.0 million, compared to
 $85.3 million in the first quarter 2000."
     Results from the quarter further solidify EOG's focus on organic growth
 and its long-term financial strategy.  EOG continued to strengthen its
 financial structure with the following:
      --   Reduced the number of common shares outstanding by approximately
           700,000 to 116.2 million,
      --   Paid down $214.1 million of debt, reducing the debt to total
           capitalization ratio from 38.3 percent at year end 2000 to
           29.6 percent at the end of the first quarter 2001 and
      --   Increased the annual common dividend by 14 percent from $.14 to
           $.16 per share.
 
     EOG's first quarter conference call will be available via live audio
 webcast at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) on Monday,
 April 23, 2001.  To listen to this webcast, log on to www.eogresources.com.
 The webcast will be archived on EOG's website for 14 days.
     EOG Resources, Inc. is one of the largest independent (non-integrated) oil
 and gas companies in the United States and is the operator of substantial
 proved reserves in the U.S., Canada and offshore Trinidad.  EOG Resources,
 Inc. is listed on the New York Stock Exchange and is traded under the ticker
 symbol "EOG".
 
     This press release includes forward looking statements within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934.  Although EOG believes that its expectations are based
 on reasonable assumptions, it can give no assurance that such expectations
 will be achieved.  Important factors that could cause actual results to differ
 materially from those in the forward looking statements herein include, but
 are not limited to, the timing and extent of changes in reserve quantities and
 commodity prices for crude oil, natural gas and related products and interest
 rates, the extent of EOG's success in discovering, developing, producing and
 marketing reserves and in acquiring oil and gas properties, uncertainties and
 changes associated with international projects and operations including
 reserve estimates, markets, contract terms, construction, financing
 availability, operating costs, and political developments around the world,
 and conditions of the capital and equity markets during the periods covered by
 the forward looking statements.
 
 
                              EOG RESOURCES, INC.
                                FINANCIAL REPORT
                   (Unaudited; in millions except per share)
 
                                                             Quarter
                                                          Ended March 31
                                                      2001              2000
 
     Net Operating Revenues                          $597.3            $259.9
     Net Income Available to Common                  $212.5             $38.8
     Net Income Per Share Available to Common
       Basic                                          $1.83             $0.33
       Diluted                                        $1.79             $0.33
     Average Number of Shares Outstanding
       Basic                                          116.4             117.8
       Diluted                                        119.0             118.3
 
 
                            SUMMARY INCOME STATEMENT
                           (Unaudited; in thousands)
 
                                                            Quarter
                                                         Ended March 31
                                                     2001              2000
     Net Operating Revenues
       Natural Gas                                 $521,477          $186,200
       Crude Oil, Condensate and Natural
        Gas Liquids                                  75,194            73,067
       Gains on Sales of Reserves and
        Related Assets and Other, Net                   582               629
         Total                                      597,253           259,896
     Operating Expenses
       Lease and Well                                42,574            33,739
       Exploration                                   20,265            12,945
       Dry Hole                                      15,684             5,761
       Impairments                                   15,764             8,402
       Depreciation, Depletion and
        Amortization                                 93,961            84,137
       General and Administrative                    17,949            16,287
       Taxes Other Than Income                       37,032            18,415
         Total                                      243,229           179,686
     Operating Income                               354,024            80,210
 
     Other Income (Expense), Net                       (639)               17
 
     Income Before Interest Expense and
      Income Taxes                                  353,385            80,227
 
     Interest Expense, Net                           13,289            14,568
 
     Income Before Income Taxes                     340,096            65,659
 
     Income Tax Provision                           124,849            24,169
 
     Net Income                                     215,247            41,490
 
     Preferred Stock Dividends                       (2,721)           (2,654)
 
     Net Income Available to Common                $212,526           $38,836
 
 
                              EOG RESOURCES, INC.
                              OPERATING HIGHLIGHTS
                                  (Unaudited)
 
                                                              Quarter
                                                           Ended March 31
                                                       2001              2000
     Wellhead Volumes and Prices
     Natural Gas Volumes (MMcf/d)
       United States                                    704               656
       Canada                                           117               132
         North America                                  821               788
       Trinidad                                         120               128
         Total                                          941               916
 
     Average Natural Gas Prices ($/Mcf)
       United States                                  $6.97             $2.53
       Canada                                          6.60              2.17
         North America Composite                       6.91              2.47
       Trinidad                                        1.22              1.17
         Total Composite                               6.19              2.29
 
     Crude Oil/Condensate Volumes (MBD)
       United States                                   23.0              20.7
       Canada                                           1.7               2.3
         North America                                 24.7              23.0
       Trinidad                                         2.2               2.9
         Total                                         26.9              25.9
 
     Average Crude Oil/Condensate Prices
      ($/Bbl)
       United States                                 $28.09            $28.14
       Canada                                         25.25             26.83
         North America Composite                      27.89             28.01
       Trinidad                                       28.84             27.85
         Total Composite                              27.97             27.99
 
     Natural Gas Liquids Volumes (MBD)
       United States                                    3.0               4.3
       Canada                                           0.5               0.8
         Total                                          3.5               5.1
 
     Average Natural Gas Liquids Prices
      ($/Bbl)
       United States                                 $23.95            $20.64
       Canada                                         23.46             13.64
         Total Composite                              23.88             19.58
 
     Natural Gas Equivalent Volumes
      (MMcfe/d)
       United States                                    860               805
       Canada                                           131               151
         North America                                  991               956
       Trinidad                                         132               145
         Total                                        1,123             1,101
 
     Total Bcfe Deliveries                            101.1             100.2
 
 
                              EOG RESOURCES, INC.
                       SUPPLEMENTAL FINANCIAL INFORMATION
                  DISCRETIONARY CASH FLOW AVAILABLE TO COMMON
                           (Unaudited; in thousands)
 
                                                            Quarter
                                                         Ended March 31
                                                     2001              2000
 
     Net Income Available to Common                $212,526           $38,836
     Items Not Requiring Cash
       Depreciation, Depletion, and
        Amortization                                 93,961            84,137
       Impairments                                   15,764             8,402
       Deferred Income Taxes                         34,452            17,045
       Other, Net                                     5,497               826
     Exploration Expenses                            20,265            12,945
     Dry Hole Expense                                15,684             5,761
     Losses on Sales of Reserves and
      Related Assets and Other, Net                     316             1,571
     Other, Net                                       2,013            (1,890)
       Total Discretionary Cash Flow
        Available to Common                        $400,478          $167,633
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X24879237
 
 SOURCE  EOG Resources, Inc.