Table Of ContentEOG_2010 AC-1
Copyright; Assumption of Risk: Copyright 2010. This presentation and the contents of this presentation have been copyrightedby EOG Resources, Inc. All rights reserved. Copying of the presentation
is forbidden without the prior written consent of EOG Resources, Inc. Information in this presentation is provided “as is” without warranty of any kind, either express or implied, including but not
limited to the implied warranties of merchantability, fitness for a particular purpose and the timeliness of the information.You assume all risk in using the information. In no event shall EOG or its
representatives be liable for any direct, special, indirect or consequential damages resulting from the use of the information.
Cautionary Notice Regarding Forward-Looking Statements: This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG'sfuture
financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs and statements regarding the plans and objectives of EOG'smanagement for
future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "goal," "may," "will" and
"believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG'sfuture
operating results and returns or EOG'sability to replace or increase reserves, increase production or generate income or cash flows are forward-looking statements. Forward-looking statements are
not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be
given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG'sforward-looking statements may be
affected by known and unknown risks, events or circumstances that may be outside EOG'scontrol. Important factors that could cause EOG'sactual results to differ materially from the expectations
reflected in EOG'sforward-looking statements include, among others:
•the timing and extent of changes in prices for natural gas, crude oil and related commodities;
•changes in demand for natural gas, crude oil and related commodities, including ammonia and methanol;
•the extent to which EOG is successful in its efforts to discover and market reserves and to acquire natural gas and crude oilproperties;
•the extent to which EOG can optimize reserve recovery and economically develop its plays utilizing horizontal and vertical drilling and advanced completion technologies;
•the extent to which EOG is successful in its efforts to economically develop its acreage in, and to produce reserves and achieve anticipated production levels from, its existing and future natural gas
and crude oil exploration and development projects, given the risks and uncertainties inherent in drilling, completing and operating natural gas and crude oil wells and the potential for interruptions of
production, whether involuntary or intentional as a result of market or other conditions;
•the availability, proximity and capacity of, and costs associated with, gathering, processing, compression and transportationfacilities;
•the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights of way;
•changes in government policies, laws and regulations, including environmental and tax laws and regulations;
•competition in the oil and gas exploration and production industry for employees and other personnel, equipment, materials andservices and, related thereto, the availability and cost of employees and
other personnel, equipment, materials and services;
•EOG'sability to obtain access to surface locations for drilling and production facilities;
•the extent to which EOG'sthird-party-operated natural gas and crude oil properties are operated successfully and economically;
•EOG'sability to effectively integrate acquired natural gas and crude oil properties into its operations, fully identify existing andpotential problems with respect to such properties and accurately
estimate reserves, production and costs with respect to such properties;
•weather, including its impact on natural gas and crude oil demand, and weather-related delays in drilling and in the installation and operation of production, gathering, processing, compression and
transportation facilities;
•the ability of EOG'scustomers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the creditand capital markets to obtain financing needed to satisfy
their obligations to EOG;
•EOG'sability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all;
•the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
•the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic
conditions;
•political developments around the world, including in the areas in which EOG operates;
•the extent and effect of any hedging activities engaged in by EOG;
•the timing and impact of liquefied natural gas imports;
•the use of competing energy sources and the development of alternative energy sources;
•the extent to which EOG incurs uninsured losses and liabilities;
•acts of war and terrorism and responses to these acts; and
•the other factors described under Item 1A, "Risk Factors," on pages 14 through 19 of EOG'sAnnual Report on Form 10-K for the fiscal year ended December 31, 2009 and any updates to those factors
set forth in EOG’ssubsequent Quarterly Reports on Form 10-Q.
In light of these risks, uncertainties and assumptions, the events anticipated by EOG'sforward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing
of their occurrence or the extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG'sforward-looking statements. EOG'sforward-looking
statements speak only as of the date made and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new
information, subsequent events, anticipated or unanticipated circumstances or otherwise.
Oil and Gas Reserves; Non-GAAP Financial Measures: Effective January 1, 2010, the United States Securities and Exchange Commission (SEC) now permits oil and gas companies, in their filings with
the SEC, to disclose not only “proved” reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also “probable” reserves (i.e., quantities of oil
and gas that are as likely as not to be recovered) as well as “possible” reserves (i.e., additional quantities of oil and gasthat might be recovered, but with a lower probability than probable reserves).
As noted above, statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not
specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC’slatest reserve reporting
guidelines. Investors are urged to consider closely the disclosure in EOG’sAnnual Report on Form 10-K for the fiscal year ended December 31, 2009, available from EOG at P.O. Box 4362, Houston,
Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC’swebsite at www.sec.gov. In addition, reconciliation and
calculation schedules for non-GAAP financial measures can be found on the EOG website at www.eogresources.com.
Shift to Significantly Higher Liquids Mix
Add Even More Horizontal Oil Resource Plays
Generate Peer Leading ROCEs
Strong Debt Adjusted Per Share Growth
Maintain Low Debt and Low Costs
Don’t Want to be The Biggest Independent E&P Company
Goal – Best Long Term Equity Performance
EOG_2010 AC-3
Increasing
Reinvestment
Rate of Return
Organic Growth – First Mover
Organic Growth – Subsequent Mover
Producing Property Acquisitions
Growth Via M&A
EOG_2010 AC-4
2005
EOG is Industry First Mover in Horizontal Gas From Shales
- Johnson Co. Barnett
2007
EOG is Industry Early Mover in Horizontal Oil From Unconventional Rock
- North Dakota Bakken
2010
EOG is Industry First Mover in Additional Big Horizontal Oil Plays
We Believe Horizontal Oil From Unconventional Rock Will be a North
American Industry Game Changer
- Impact on Crude Oil Prices Will be Much Less Than North American
Horizontal Gas
EOG_2010 AC-5
Onshore Unconventional Rock Unlocked via Horizontal Technology
High ROR
Can Scale in Investments
High Oil Quality
Canadian Heavy Oil
~~ $90 WTI Required for ~~ 10% ROR
Can’t Scale in Investments
Oil Quality Issues
Deep Water – GOM or International
Long Lead Time
Can’t Scale in Investments
High International Government Takes
Why Don’t Companies Quote ROR for Deep Water Projects?
EOG_2010 AC-6
Net After Royalty (NAR) Estimate
Total Resource Potential*
Previous Current
South Texas Eagle Ford - 900 MMboe
Bakken Core 80 MMboe 90 MMboe
Bakken Lite - 210 MMboe
Three Forks - 120 MMboe
Barnett Combo Core 50 MMboe 370 MMboe
DJ Basin Niobrara - Too Soon
Waskada South - 20 MMboe
Haynesville/Bossier 3 - 4 Tcf 10 Tcf
Horn River 6 Tcf 9 Tcf
Uinta Basin 1.8 Tcfe 6.8 Tcfe
Marcellus 2 - 3 Tcf 3.5 Tcf
130 MMboe + 14 Tcf 1.7 Bnboe + 29 Tcf**
* Potential, not proved reserves
** Includes 143 MMboe + 3.8 Tcfproved reserves booked at December 31, 2009
EOG_2010 AC-7
2010E* 2011E 2012E
Total Company 13% 19% 21%
Crude Oil and Condensate 55% 65% 40%
NGLs 28% 50% 45%
Total Company Liquids 47% 60% 41%
North American Gas 2% –** 13%**
Other Gas 7% 10% (9%)
* Based on the Mid-point of Full-Year 2010 production estimates as of February 9, 2010. Liquids converted at 6:1 ratio.
** Above numbers are absolute and not pro-forma for dispositions. Assumes $1.0 -$1.5 Bnof North American gas properties are sold on 12/31/10.
EOG_2010 AC-8
3,440
2,840
2,391 1,880
2,118
1,988
1,730
1,729
1,561
1,433
1,697
1,233
1,645
1,619
1,470
1,216 1,337 260
1,036
185
116
79
62
33 36 37 43
2004 2005 2006 2007 2008 2009 2010E* 2011E 2012E
Oil/NGLs (Mbd) Gas (MMcfd)
* Based on the Mid-point of Full-Year 2010 production estimates as of February 9, 2010. Liquids converted at 6:1 ratio.
EOG_2010 AC-9
Annual YOY Growth
BTU Liquids ‘Value Based’ % Revenues
Conversion Conversion* from
(6:1) (15:1 Oil, 7.5:1 NGL) Liquids**
2010E 13% 21% ~ 50%
~
2011E 19% 30% ~ 60%
~
2012E 21% 27% ~65%
~
* Value Conversion based on $84 WTI (15:1), $42 NGL (7.5:1), and $5.50 NYMEX Henry Hub.
** Based on forward prices; NYMEX Henry Hub and WTI on April 1, 2010.
EOG_2010 AC-10
Description:statements speak only as of the date made and EOG undertakes no obligation, other than as required by applicable law, to update or revise its Oil and Gas Reserves; Non-GAAP Financial Measures: Effective January 1, 2010, the United States Securities and Exchange Commission (SEC) now permits
