EOG Resources reported second quarter 2012 net income of $395.8 million. This compares to second quarter 2011 net income of $295.6 million.
Consistent with some analysts’ practice of matching realizations to settlement months and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income for the second quarter 2012 was $312.4 million. Adjusted non-GAAP net income for the second quarter 2011 was $299.2 million. The results for the second quarter 2012 included impairments of $1.5 million, net of tax related to certain non-core North American assets, net gains on asset dispositions of $75.1 million, net of tax and a previously disclosed non-cash net gain of $188.4 million ($120.7 million after tax) on the mark-to-market of financial commodity contracts. During the quarter, the net cash inflow related to financial commodity contracts was $173.2 million ($110.9 million after tax,).
With 86 percent of North American wellhead revenues currently derived from crude oil, condensate and natural gas liquids, EOG delivered strong earnings per share growth of 64 percent for the first half of 2012 compared to the same period in 2011. Discretionary cash flow increased 29 percent and adjusted EBITDAX rose 28 percent over the first half of 2011. (Please refer to the attached tables for the reconciliation of non-GAAP discretionary cash flow to net cash provided by operating activities (GAAP) and adjusted EBITDAX (non-GAAP) to income before interest expense and income taxes (GAAP).)
“EOG’s financial and operating results get better and better. We are achieving this consistent string of home runs because EOG has captured the finest inventory of onshore crude oil assets in the entire United States and has the technical acumen to maximize reserve recoveries,” said Mark G. Papa, Chairman and Chief Executive Officer. “EOG is the largest crude oil producer in the South Texas Eagle Ford and North Dakota Bakken with the sweet spot positions in both plays. In addition, we are uniquely positioned to market a significant portion of this crude oil at robust Brent-type pricing through our own rail offloading facility at St. James, Louisiana, and to reach the Houston Gulf Coast market via the recently completed Enterprise Eagle Ford pipeline.”
LNG World News Staff, August 03, 2012; Image: EOG Resources