Profile: EOG Resources Inc (EOG.N)

EOG Resources, Inc.(EOG),incorporated on June 12, 1985, explores , develops, produces and markets crude oil and natural gas primarily in producing basins in the United States of America , Canada, The Republic of Trinidad and Tobago (Trinidad), the United Kingdom , The People's Republic of China (China), the Argentine Republic (Argentina) and, from time to time, select other international areas.

As of December 31, 2012, EOG's total estimated net proved reserves were 1,811 million barrels of oil equivalent, of which 701 million barrels were crude oil and condensate reserves, 320 million barrels were natural gas liquids (NGLs) reserves and 4,740 billion cubic feet, or 790 million barrels of oil equivalent, were natural gas. EOG's operations are all crude oil and natural gas exploration and production related.

United States and Canada Operations

EOG's operations are focused in the United States and Canada, with a focus on crude oil and to a lesser extent, liquids-rich natural gas plays. As of December 31, 2012, 40% of EOG's net proved reserves in the United States and Canada were crude oil and condensate, 19% were NGLs and 41% were natural gas. During the year ended December 31, 2012, EOG drilled 352 net wells. During 2012, EOG drilled 190 net Barnett Combo wells and continued to upgrade the quality of its acreage position and add potential drilling locations in the liquids-rich Combo core area. In 2012, the average net daily total production in the Barnett Shale averaged approximately 38.8 thousand barrels per day of crude oil and condensate and NGLs and approximately 368 million cubic feet per day of natural gas. In the Williston Basin, where production is approximately 85% crude oil, 62 net wells were drilled in 2012. EOG has continued its development of the Turner Sand formation in the Powder River Basin, where EOG has drilled 12 net wells, each producing liquids-rich natural gas.

In 2012, EOG drilled and participated in 105 net wells in the Permian Basin to develop its liquids-rich Leonard-Avalon, Bone Spring and Wolfcamp plays. EOG is well positioned with approximately 73,000 net acres in the Leonard-Avalon Shale and Bone Spring, and 114,000 net acres in the Wolfcamp Shale, all within the Delaware Basin. Additionally, EOG has approximately 133,000 net acres in the Wolfcamp Shale within the Midland Basin. Net production for 2012 averaged 16.5 million barrels per day of crude oil and condensate and NGLs and 44 million cubic feet per day of natural gas. In the South Texas area, EOG drilled 34 net wells in 2012. Net production during 2012, averaged 5.2 million barrels per day of crude oil and condensate and NGLs and 116 million cubic feet per day of natural gas. In December 2012, EOG entered into a joint venture with respect to the King Ranch (Ranch) in South Texas. The net production from the Ranch is approximately 1.1 million barrels per day of crude oil and condensate, 1.5 million barrels per day of NGLs and 28 million cubic feet per day of natural gas. In the Upper Gulf Coast region, EOG drilled 19 net wells, and net production averaged 191 million cubic feet per day of natural gas and 0.4 million barrels per day of crude oil and condensate and NGLs in 2012. EOG holds a total of approximately 485,000 net acres in the Upper Gulf Coast region and plans to drill 15 net wells targeting crude oil projects during 2013. At December 31, 2012, EOGRC held approximately 638,000 net undeveloped acres in Canada.

During 2012, EOG continued the development of its Pennsylvania Marcellus Shale asset, completing 19 net wells. EOG reduced its operations in the second half of 2012, dropping from three drilling rigs to one drilling rig, with activities focused on its Bradford County, Pennsylvania, acreage. EOG holds approximately 170,000 net acres in the Pennsylvania Marcellus Shale play. EOG-owned natural gas processing capacity at December 31, 2012, in the Barnett Shale and Eagle Ford Shale was 120 million cubic feet per day and 250 million cubic feet per day, respectively. During 2012, EOG shipped 70 sand unit trains of approximately 100 cars each to EOG sand storage facility in Refugio, Texas. EOG conducts operations in Canada through its wholly-owned subsidiary, EOG Resources Canada Inc. (EOGRC), from its offices in Calgary, Alberta. During 2012, EOGRC continued its focus on horizontal crude oil growth, mainly through its development of the shallow Spearfish formation in southwest Manitoba. Other drilling activity was directed to acreage retention in its bigger target horizontal natural gas play in the Horn River Basin of British Columbia. Of the 135 net wells EOGRC drilled or participated in during 2012, 124 were horizontal wells in oil plays, seven were horizontal natural gas acreage retention wells and the remaining four were vertical wells. In 2012, net crude oil and condensate and NGL production was 7.8 million barrels per day and net natural gas production was 95 million cubic feet per day.

Operations Outside the United States and Canada

EOG has operations offshore Trinidad, in the United Kingdom North Sea and East Irish Sea, in the China Sichuan Basin and in the Neuquen Basin of Argentina, and is evaluating additional exploration, development and exploitation opportunities in these and other select international areas. EOG, through several of its subsidiaries, including EOG Resources Trinidad Limited, held 80% working interest in the exploration and production license covering the South East Coast Consortium (SECC) Block offshore Trinidad; held 80% working interest in the exploration and production license covering the Pelican Field and its related facilities; held 50% working interest in the exploration and production license covering the EMZ Area offshore Trinidad; held 100% working interest in a production sharing contract with the Government of Trinidad and Tobago for each of the Modified U(a) Block, Modified U(b) Block and Block 4(a); owns a 12% equity interest in an anhydrous ammonia plant in Point Lisas, Trinidad, which is owned and operated by Caribbean Nitrogen Company Limited, and owns a 10% equity interest in an anhydrous ammonia plant in Point Lisas, Trinidad, that is owned and operated by Nitrogen (2000) Unlimited.

In 2012, EOG's average net production from Trinidad was 378 million cubic feet per day of natural gas and 1.5 million barrels per day of crude oil and condensate. At December 31, 2012, EOG held approximately 39,000 net undeveloped acres in Trinidad. EOG's subsidiary, EOG Resources United Kingdom Limited (EOGUK), owns a 25% non-operating working interest in a portion of Block 49/16a, located in the Southern Gas Basin of the North Sea. During 2012, production continued from the Valkyrie field in this block. EOGUK also owns a 30% non-operating working interest in a portion of Blocks 53/1 and 53/2. These blocks are also located in the Southern Gas Basin of the North Sea. In 2012, production averaged two million cubic feet per day of natural gas, net, in the United Kingdom. In 2012, production averaged eight million cubic feet per day of natural gas, net, in China. As of December 31, 2012, EOG held approximately 131,000 net developed acres in China.