|This article relies too much on references to primary sources. (July 2012)|
|Traded as||NYSE: EOG
S&P 500 Component
|Industry||Oil and gas|
|Founder||William R. Thomas|
Houston, Texas, United States
|William R. Thomas
(CEO & Chairman)
|$3,675 million (2013)|
|$2,173 million (2013)|
Number of employees
EOG Resources Inc. (formerly Enron Oil and Gas) is a Fortune 500 company with its headquarters in the Heritage Plaza building in downtown Houston, Texas. The company is one of the largest independent oil and natural gas exploration and production companies in the United States with proven reserves in the United States, Canada, Trinidad and Tobago, the United Kingdom, and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG".
Enron Oil and Gas became independent from Enron in 1999, and changed its named to EOG Resources, Inc. (EOG). EOG elected Mark G. Papa Chairman Chief Executive Officer and named Edmund P. Segner as President and Chief of Staff. At that time, about 87 percent of EOG production in 1999 came from North America. In 2006, EOG Resources announced that it was moving its headquarters from Three Allen Center to the Heritage Plaza. The firm signed a 15-year lease for 200,000 square feet (19,000 m2). The firm planned to move around 400 employees from Three Allen Center to Heritage around early 2007.
Standard & Poor’s 500 Index added EOG to its oil and gas industry group after the close of trading on November 1, 2000.
In 2000, the annual common stock dividend increased from $.12 per share to $.14 per share, then to $.16 per share in 2001. A two-for-one stock split in the form of a stock dividend was announced in 2005. Following an increase in the common stock dividend in 2011, EOG’s Board of Directors again increased the cash dividend on the common stock. Effective with the dividend payable on April 30, 2012, the quarterly dividend on the common stock was raised to $0.17 per share, an increase of 6.25 percent compared to the previous indicated annual rate. The current indicated annual rate of $0.68 per share reflects the 13th increase in 13 years.
In 2002, for the eighth consecutive year, EOG reduced the number of shares outstanding. After repurchasing 0.7 million shares of common stock, net of option exercises, stock plans and other increases, EOG had 114.4 million basic shares outstanding at December 31. EOG further reduced long-term debt to $733 million in 2006. The same year, EOG repurchased $47 million of preferred stock, leaving $53 million outstanding. The company’s debt-to-total capitalization ratio was 12 percent at the end of 2006, down from 19 percent a year previous.
Mergers and Acquisitions
Property exchanges with Burlington Resources and OXY USA Inc. in 1999 significantly added prospect inventory in the Oklahoma Panhandle, Permian Basin, East Texas, and North Louisiana.
In 2000, EOG was the second most active driller in the US. In 2006, EOG’s overall organic year-over-year production increased 9 percent and United States natural gas production grew 14 percent. The Fort Worth Basin Barnett Shale, Northeastern Utah Uinta Basin and South Texas Frio and Lobo Plays led the production increases.
On February 18, 2015 EOG Resources said that is expects flat output growth in 2015 after the company’s fourth quarter results missed analysts expectations. The company also cut its 2015 capital expenditure budget down to $5 billion, a 40 percent drop from 2014.
In Canada, EOG increased total Canadian production 23 percent and natural gas production 22 percent in 2002, as compared to 2001. In 2003, EOG made the largest acquisition in its history with the purchase of primarily natural gas properties in southeast Alberta, Canada for approximately US $320 million.
In 2003, EOG established a new international venue in the Southern Gas Basin of the United Kingdom North Sea. EOG reported its first full year of production in 2005 from the United Kingdom North Sea. It averaged 40×106 cu ft/d (1,100,000 m3/d) equivalent. In the fourth quarter of 2004 and the first quarter of 2005, EOG started production from two Southern Gas Basin wells, EOG’s first producing assets in that region.
EOG signed a 15-year natural gas supply contract in 2000, for approximately 60×106 cu ft/d (1,700,000 m3/d) with the National Gas Company of Trinidad and Tobago Limited (NGC) to supply an ammonia plant from the U(a) block. In Trinidad in 2002, EOG announced the Parula natural gas discovery, added two new offshore exploration blocks, successfully started up the CNC Ammonia Plant and signed a 25-year extension on the offshore SECC Block.In Trinidad, total 2004 production increased 25 percent, compared to 2003. EOG began natural gas sales to the Nitro 2000 (N2000) Ammonia Plant in mid-2004. During 2005, EOG started natural gas production to supply feedstock for the M5000 Methanol Plant, which began operation in September, and Atlantic LNG Train 4, which started taking gas in December prior to plant commissioning.
U.S. Unconventional Resources
In 2000, EOG opened its ninth division office in Pittsburgh, Pennsylvania to focus on opportunities in the Appalachian Basin.
At year-end 2004, EOG had approximately 400,000 acres (1,600 km2) under lease in the Texas Barnett Shale Play with net natural gas production reaching 30×106 cu ft/d (850,000 m3/d) during December. In 2006, EOG’s results from the Fort Worth Basin Barnett Shale Play continue to exceed expectations. Production at year-end 2006 was 206×106 cu ft/d (5,800,000 m3/d), exceeding the original year-end goal of 155×106 cu ft/d (4,400,000 m3/d).
In 2007, EOG’s overall organic year-over-year production increased 11 percent and United States natural gas production grew 19 percent. The Fort Worth Basin Barnett Shale, East Texas and Rocky Mountain areas led the production increases. Crude oil and condensate production grew by 11 percent over the prior year with the most significant increase recorded in the North Dakota Bakken Play. Natural gas liquids increased 31 percent over 2006 with good results from the Fort Worth, South Texas and Rocky Mountain operating areas.
In 2009, EOG North American liquids production increased 30 percent: 23 percent growth in crude oil and condensate and 48 percent in natural gas liquids, driven by ongoing exploration and development drilling in the North Dakota Bakken and Fort Worth Barnett Shale Combo Plays. In 2010, led by exploration and development drilling in North Dakota Bakken/Three Forks and South Texas Eagle Ford plays, 53 percent of North American revenues came from liquids and 47 percent from natural gas. This compares to 24 percent and 76 percent, respectively, when the transition to liquids began four years previous. For the first year in company history, total revenues generated from crude oil, condensate and natural gas liquids production exceeded those from natural gas. Development drilling activity increased in crude oil plays such as the North Dakota Bakken/Three Forks in the Williston Basin and the Fort Worth Barnett Shale Combo. Strong positions in the Leonard Shale in the Permian Basin, as well as the Denver-Julesberg Basin Horizontal Niobrara, were added to EOG’s liquids-rich assets. In 2011, EOG targeted full year 49 percent total liquids growth and 9.5 percent total company organic production growth for 2011, based on its North American liquids plays. EOG expanded its inventory of organic horizontal liquids plays with drilling success in the West Texas Permian Basin Wolfcamp Shale.
In 2010, continuing its transition to a more heavily weighted liquids portfolio, EOG secured a 520,000 acres (2,100 km2) net position in the mature oil window of the South Texas Eagle Ford Play that has an estimated reserve potential of 900 Mbbl (140,000,000 m3) equivalent, net after royalty, 77 percent of which is crude oil. In 2012, EOG raised the estimated reserve potential in its premier South Texas Eagle Ford crude oil asset from 900 million barrels of oil equivalent (MMboe) to 1,600 MMboe, net after royalty, reflecting a 78 percent increase.
EOG played a major role in starting the Bakken Shale play in North Dakota, by drilling the discovery well of the Parshall Oil Field in 2006. In 2008, EOG crude oil and condensate production increased 46 percent overall, driven primarily by continued drilling success from the Bakken Play. EOG was the first company get around limited pipeline capacity out of the Williston Basin by transporting crude oil by train to Oklahoma, in 2010.
They are drilling more wells.
- EOG Resources, Company History.
- "EOG Resources slashes 2015 capex by 40 percent". Petro Global News. Retrieved 20 February 2015.
- "Oil Producers Cluster Wells in Classic Push to Extend Boom".