EOG_South Texas Eagle Ford-1

Transcription

1 EOG_South Texas Eagle Ford-1

2 Copyright; Assumption of Risk: Copyright This presentation and the contents of this presentation have been copyrighted by 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's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs and statements regarding the plans and objectives of EOG's management 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's future operating results and returns or EOG's ability 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's forward-looking statements may be affected by known and unknown risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-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 oil properties; 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 transportation facilities; 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 and services and, related thereto, the availability and cost of employees and other personnel, equipment, materials and services; EOG's ability to obtain access to surface locations for drilling and production facilities; the extent to which EOG's third-party-operated natural gas and crude oil properties are operated successfully and economically; EOG's ability to effectively integrate acquired natural gas and crude oil properties into its operations, fully identify existing and potential 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's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG; EOG's ability 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's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and any updates to those factors set forth in EOG s subsequent Quarterly Reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-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's forward-looking statements. EOG's forward-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. 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 gas that 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 s latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, available from EOG at P.O. Box 4362, Houston, Texas (Attn: Investor Relations). You can also obtain this report from the SEC by calling SEC-0330 or from the SEC s website at In addition, reconciliation and calculation schedules for non-gaap financial measures can be found on the EOG website at

3 Why Eagle Ford? Well-Defined Associated with Large Resource Play Good History of Vertical Well Production Shale Play with Haynesville Scale Permeability in the Large In-Situ Accumulation of 27 to 57 MMboe/Section Large Open Acreage Positions Significant Nearby Infrastructure with Access to Markets EOG_South Texas Eagle Ford-3

4 Numerous Vertical Penetrations - Including 12 Eagle Ford Producers Austin Chalk Production 554 MMboe - Points to Significant Bypassed Eagle Ford Accumulation First EOG Wells Over-Pressured - Most Eagle Ford Stayed in the Source Rock Focused Leasing in Peak Legacy Positions in Wet and Dry Gas s Net Acres 505,000 Wet Gas 26,000 Dry Gas 49,000 Total 580,000 EOG Leases Vertical Productive Eagle Ford Wells Eagle Ford Penetrations Austin Chalk Productive Wells EOG First Eagle Ford Completion 0 25 Miles EOG_South Texas Eagle Ford-4

5 November 1998 Garner 1054 C#1 Vertical Well Encountered Over-Pressured Eagle Ford Tested and Ultimately Completed Austin Chalk September 2007 Started Leasing in Karnes Trough October 2008 Drilled First Eagle Ford Gas Horizontal Well - Tully C Garner #97H Drilled Milton #1H Discovery Well and Delineation Wells Continued to Quietly Assemble Lease Block EOG_South Texas Eagle Ford-5

6 If All Eagle Ford is Good, Why? IP Gross CWC Play Area (Mcfd + Bopd) Bcfe Mboe ($M) ATROR* Dry Gas 9, ,500 27% NPV(10) ($M) $1,794 East West ,000 4,500 95% 66% $5,605 $3,647 Superior Returns * See reconciliation schedule; Based on the March 10, 2010 five year strip of $5.91 NYMEX Henry Hub and $86.90 WTI, then $5.50 and $90.00 held flat thereafter. EOG_South Texas Eagle Ford-6

7 Previously Seen by Others as a Source Rock, NOT a Reservoir Rock What Did We See? - Great Porosity Affords Excellent Storage - High Reservoir Pressure Helps Recovery - Vertical Wells With Reasonable EURs Vertical Well 2 Mbo Vertical Well 25 Mbo Vertical Well 22 Mbo Vertical Well 74 Mbo Vertical Well 7 Mbo Vertical Well 139 Mbo Vertical Well 4 Mbo Vertical Well 73 Mbo Vertical Well 196 Mbo Net Acres 505,000 Wet Gas 26,000 Dry Gas 49,000 Total 580,000 Wet Gas Dry Gas EOG Leases Vertical Well 16 Mbo Vertical Well 30 Mbo Vertical Well 6 Mbo 12 Vertical Wells Average 50 Mbo Production 0 25 Miles EOG_South Texas Eagle Ford-7

8 10,000 1, The Case For Matrix Flow Darlene #1H Forecast (Horizontal Well) EUR = 501 Mboe Gross Matrix Dominant High IP, Hyperbolic Decline, Long Life, b=1.5 Bopd Eagle Ford Vertical Model Forecast Ave 57 Mbo (12 Wells) Gross Matrix Dominant Low IP, Long Life Hyperbolic Decline, b= Years Uplift = 9:1 Eagle Ford Vertical Wells Acid Only or Simple Fracs Horizontal Well Single Lateral With Multistage Complex Fracs EOG_South Texas Eagle Ford-8

9 The Case For Matrix Flow Two Wells 30 Miles Apart Carbonate 60% - 75% Porosity 4% - 11% Permeability nd 1,300 Consistent Great Rock Quality! 1 μm 1,000 nm EOG_South Texas Eagle Ford-9

10 Leasing Focused on Thick Eagle Ford Section Higher Reservoir Pressure Best Porosity Best System Permeability Wet Gas Dry Gas Thickness (ft) Miles EOG_South Texas Eagle Ford-10

11 Cores and Logs From Delineation Wells Confirm Rock Quality Discovery Eagleville Field Milton #1H Little Darlene Milton Marshall Net Acres 505,000 Wet Gas 26,000 Dry Gas 49,000 Total 580,000 Wet Gas Dry Gas Garner Hoff Hundley EOG Leases Peeler Thickness (ft) Miles EOG_South Texas Eagle Ford-11

12 Excellent and Consistent Rock Quality Acreage in Peak High Rate Wells Average 46 MMbo/Section 900 MMboe, NAR Potential* Reserves San Antonio Milton Marshall Little Darlene Net Acres 505,000 Wet Gas 26,000 Dry Gas 49,000 Total 580, Wet Gas Dry Gas Garner Hoff Hundley EOG Leases Peeler Thickness (ft) Miles * Potential, not proved reserves EOG_South Texas Eagle Ford-12

13 EOG_South Texas Eagle Ford-13

14 San Antonio Wet Gas Discovery Well Milton #1H Net Acres Wet Gas Dry Gas 505,000 26,000 49,000 Total 580,000 Laredo Dry Gas EOG Leases Corpus Christi 0 25 Miles EOG_South Texas Eagle Ford-14

15 Type Log Milton Unit #1 Reservoir Parameters Eagle Ford Formation 10,500 TVD Initial Reservoir Pressure 7,350 Psi API Gravity 41.5º Thickness 290 Average Porosity 9% Eagle Ford Fm. Pay Zone Buda Fm. EOG_South Texas Eagle Ford-15

16 Milton #1H Discovery Well Drilled January 2009 Stimulated with Typical Barnett Style Completion - 1,800 Lateral, 2.1 MM# of Sand Encouraging Results - April 24, 2009 Flowed at 668 Bopd Inefficient Completion, EUR 117 Mboe, Gross Encouraged, But Needed to Improve Stimulations on Future Wells Milton #3H Well Drilled 2,400 Lateral August 2009 Stimulated with 3.0 MM # of Proppant Much Better Results - November 14, 2009 Flowed at 909 Bopd Estimated EUR 365 Mboe, Gross Well Has Produced 40 Mbo to Date EOG_South Texas Eagle Ford-16

17 Drilled 16 Delineation Wells over 120 Miles in Drilled 5 Microseismic Frac Monitor Wells Stimulated with New Style Completion - Microseismic Indicates Good Fracture Complexity EOG_South Texas Eagle Ford-17

18 Delineation Wells Initial Production Rates Marshall 2H - 1,658 Bopd Marshall 3H - 1,492 Bopd Marshall 5H Bopd Net Acres Wet Gas Dry Gas 505,000 26,000 49,000 Total 580,000 Wet Gas Dry Gas Hoff 4H Bopd Hundley 2H Bopd Hundley 4H Bopd EOG Leases Peeler 2H Bopd Peeler 10H Bopd Little 1 H Bopd Darlene 1H Bopd 0 25 Miles Milton 1H Bopd Milton 3H Bopd Milton 10H Bopd Harper 1H Bopd Harper 2H Bopd Harper 8H Bopd EOG_South Texas Eagle Ford-18

19 Gross Estimated Reserves Per Well Marshall 2H Mboe Marshall 3H Mboe Marshall 5H Mboe Net Acres Wet Gas Dry Gas 505,000 26,000 49,000 Total 580,000 Wet Gas Dry Gas Hoff 4H Mboe Hundley 2H Mboe Hundley 4H Mboe EOG Leases Peeler 2H Mboe Peeler 10H Mboe Little Mboe Darlene 1H Mboe 0 25 Miles Milton 1H Mboe Milton 3H Mboe Milton 10H Mboe Harper 1H Mboe Harper 2H Mboe Harper 8H Mboe EOG_South Texas Eagle Ford-19

20 Per Well Reserves Based on Longer Laterals than Early Wells Optimized Fracture Stimulations Access to Gas Processing to Capture NGLs Eagleford Isopach Map East Area 227,000 Acres, Net 42 MMbo/Section 385 Mboe/Well RF = 3.8% Net Acres Wet Gas Dry Gas West Area 278,000 Acres, Net 49 MMbo/Section 254 Mboe/Well RF = 2.6% 505,000 26,000 49,000 Total 580,000 Wet Gas Dry Gas EOG Leases Thickness (ft) Miles EOG_South Texas Eagle Ford-20

21 Marshall T. R. Unit 2H IP: 1,658 Bopd 520 Gross / 416 Net, Mboe 3,711 in Zone 3H IP: 1,492 Bopd 348 Gross / 278 Net, Mboe 2,757 in Zone 5H IP: 703 Bopd 489 Gross / 391 Net, Mboe 3,168 in Zone Eagle Ford Drilled Wells Eagle Ford Planned Wells 0 3,000 6,000 EOG_South Texas Eagle Ford-21

22 West Area Decline Curves East Area Decline Curves Peeler 2H 4,050 ft Lateral EUR ~ 258 Mboe, Gross Peeler 10H 4,400 ft Lateral EUR ~ 356 Mboe, Gross Darlene 1H 2,450 ft Lateral EUR ~ 501 Mboe, Gross Milton 3H 2,400 ft Lateral EUR ~ 365 Mboe, Gross 1, ,000 1, ,000 Bopd ,000 1, GOR (scf/bbl) Bopd ,000 1, GOR (scf/bbl) Days Peeler 2H Rate Peeler 10H Rate Peeler 2H GOR Peeler 10H GOR Days Darlene 1H Rate Milton 3H Rate Darlene 1H GOR Milton 3H GOR West Area Production Analysis Early Time Production Analysis 90% Matrix Flow, Lower IPs, but Flat Production Decline East Area Production Analysis Initial Decline is Hyperbolic ~ 70% Matrix Flow Higher Fracture Porosity Contributes to High IPs EOG_South Texas Eagle Ford-22

23 East Area NGLs 16% Recovery Factor 3.8% Gas 359 MMbo 15% East 69% Gas 478 Bcf NGLs 85 MMbl West Area Recovery Factor 2.6% 331 MMbo Gas 183 Bcf NGLs 15 MMbl NGLs 4% Gas 8% 88% West Total Total Gas Total NGLs 690 MMbo 661 Bcf 100 MMbl NGLs 11% Gas 12% 77% Total Total Equivalent 900 MMboe, NAR * Potential, not proved reserves EOG_South Texas Eagle Ford-23

24 ATROR* 120% 100% 95% Net EUR 385 Mboe Lateral 3,000-3,500 Current Inventory 1,360 Wells Price for 15% ATROR* $44/Bbl 80% 77% 67% 60% 40% 57% 49% 20% Goal ATROR* 95% Current ATROR* 77% 0% 4,500 5,000 5,500 6,000 6,500 7,000 Well Cost ($M) * See reconciliation schedule. Based on the March 10, 2010 five-year strip of $5.91 NYMEX Henry Hub and $86.90 WTI, then $5.50 and $90.00 held flat thereafter. EOG_South Texas Eagle Ford-24

25 ATROR* 80% 70% 60% 50% 66% 52% 43% Net EUR 254 Mboe Lateral 4,500-5,000 5,000 Current Inventory 1,480 Wells Price for 15% ATROR* $55/Bbl 40% 36% 30% 30% 26% 20% 10% Goal ATROR* 66% Current ATROR* 52% 0% 4,000 4,500 5,000 5,500 6,000 6,500 7,000 Well Cost ($M) * See reconciliation schedule. Based on the March 10, 2010 five-year strip of $5.91 NYMEX Henry Hub and $86.90 WTI, then $5.50 and $90.00 held flat thereafter. EOG_South Texas Eagle Ford-25

26 Net* Acreage % Drillable Well Spacing (Acres) Net Locations** Net After Royalty (NAR) Resource/ Well** Potential*** East tarea 227,000 75% 125 1, Mboe 524 MMboe West Area 278,000 75% 140 1, Mboe 376 MMboe Total 505, , MMboe Acreage Potential ti Does Not Currently Translate to Proved Reserves, Will Require Successful Drilling * As of April 2010, excludes 75,000 acres in gas window. ** Remaining to be drilled at January 1, Assumes 100% WI, 80% NRI. *** Potential, not proved reserves. Includes 6.4 MMboe booked at December 31, Assumes continued economic drilling success. EOG_South Texas Eagle Ford-26

27 E 2011E 2012E 2013E 2014E 2015E 2016E 2017E Gas NGL EOG_South Texas Eagle Ford-27

28 Executed LOI for and Gas Gathering/Transportation Access to Significant Nearby Refining Capacity - Corpus Christi, Houston and Cushing Markets High BTU Gas Transportation and Sales to Nearby NGL Markets Overall Infrastructure to Meet Future and Gas Production Growth New and Gas Pipelines Gas Processing Plants EOG_South Texas Eagle Ford-28

29 Takeaways Leased over 505, Net Acres in the Eagle Ford Confirmed Play Viability Over 120 Miles Estimate 900 MMboe Recoverable Reserves*, NAR Identified 2,840 Potential Horizontal Drilling Locations - Current 6 Rig Program Key Factors Impacting Recoverable Reserves* - Downspacing Reserve Estimates Assume Acre Spacing - Frac Design Continue to Work on Optimization - Lateral Length Varies with Geological l Setting * Potential, not proved reserves EOG_South Texas Eagle Ford-29

30 Copyright; Assumption of Risk: Copyright This presentation and the contents of this presentation have been copyrighted by 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's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs and statements regarding the plans and objectives of EOG's management 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's future operating results and returns or EOG's ability 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's forward-looking statements may be affected by known and unknown risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-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 oil properties; 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 transportation facilities; 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 and services and, related thereto, the availability and cost of employees and other personnel, equipment, materials and services; EOG's ability to obtain access to surface locations for drilling and production facilities; the extent to which EOG's third-party-operated natural gas and crude oil properties are operated successfully and economically; EOG's ability to effectively integrate acquired natural gas and crude oil properties into its operations, fully identify existing and potential 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's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG; EOG's ability 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's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and any updates to those factors set forth in EOG s subsequent Quarterly Reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-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's forward-looking statements. EOG's forward-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. 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 gas that 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 s latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG s Annual Report on Form 10-K for the fiscal year ended December 31, 2009, available from EOG at P.O. Box 4362, Houston, Texas (Attn: Investor Relations). You can also obtain this report from the SEC by calling SEC-0330 or from the SEC s website at In addition, reconciliation and calculation schedules for non-gaap financial measures can be found on the EOG website at