EOG Resources - Eog Resources

EOG Resources, Inc. (successor to Enron Oil & Gas Company) is a petroleum and natural gas exploration company headquartered in the Heritage Plaza building in Houston, Texas.

Current operations

The company is ranked #167 on the Fortune 500.

The company has reserves in the United States, Canada, Trinidad, the United Kingdom, and China.

As of December 31, 2015, the company had 2.118 billion barrels of oil equivalent (1.296×10¹⁰ GJ) of estimated proved reserves, of which 52% was petroleum, 18% was natural gas liquids, and 30% was natural gas. Of these proved reserves, 97% were located in the United States and 3% were located in Trinidad.

In 2015, the company's production averaged 572.2 thousand barrels of oil equivalent (3,501,000 GJ) per day, of which 89% was in the United States (including 42% in the Eagle Ford shale), 10% was in Trinidad, and 1% was in other areas.

United States

As of December 31, 2015, of the company's total proved reserves in the United States, 53% was petroleum, 19% was natural gas liquids, and 28% was natural gas.

Eagle Ford Shale

As of December 31, 2015, EOG is the largest petroleum producer in the Eagle Ford. In 2015, production by the company in the Eagle Ford averaged 238.8 million barrels of oil equivalent (1.461×10⁹ GJ) per day, which was a 3% increase from 2014 levels.

In 2014, the company realized a 39% increase in well productivity on certain wells in the Eagle Ford as a result of a new technology that it developed that "involves stimulating the rock more evenly along the wellbore".

In 2015, the company has cited technology and cost reductions as reasons for improved production.

Permian Basin

In 2015, production by the company in the Permian Basin averaged 43 thousand barrels of oil equivalent (260,000 GJ) per day, which was a 30% increase from 2014 levels. The company owns properties in the Leonard, Wolfcamp, Second Bone Spring Sand, and the Delaware Basin shale plays.

Rocky Mountains

In the Rocky Mountains, the company owns properties in the Williston Basin Bakken Formation and the Turner, Parkman and Niobrara Formations in the Powder River Basin. In 2015, production in the Rocky Mountains averaged 65 million barrels of oil equivalent (400,000,000 GJ) per day.

Other areas

EOG also owns properties in the Anadarko Basin, Haynesville Shale, Barnett Shale, and the Marcellus Shale.

North Sea

In 2007, EOG was awarded a license for two blocks in the East Irish Sea and, in 2009, the company drilled a successful test well. First production from the Conwy field is anticipated in March 2016.

Trinidad

As of December 31, 2015, EOG held approximately 40,000 net undeveloped acres in Trinidad.

China

In 2008, EOG acquired assets in the Chuan Zhong Block exploration area in the Sichuan Basin, Sichuan Province, China from ConocoPhillips.

In 2015, EOG drilled four wells in China, providing a positive outlook for future development.

History

1998-2000

In 1998, the board of directors of the company elected Mark G. Papa Chairman and Chief Executive Officer. Its predecessor company, Enron Oil and Gas Company became independent from Enron Corp. in 1999, and changed its named to EOG Resources, Inc. (EOG). In 2000, the company swapped properties with Occidental Petroleum. EOG received properties in East Texas and the Oklahoma Panhandle in exchange for properties in California and the Gulf of Mexico.

In 2000, the company also swapped properties with Burlington Resources. EOG received properties in West Texas and the New Mexico, specifically in the Permian Basin, in exchange for properties in Texas and Oklahoma. Also in 2000, the company was added to the S&P 500 index.

2003-2005

In 2003, the company acquired properties in Canada from Husky Energy for $320 million.

2006-2008

In 2006, the company signed a 225,648 square feet (20,963.4 m²) lease for office space in the Heritage Plaza building in Houston, Texas. In 2008, EOG acquired assets in the Chuan Zhong Block exploration area in the Sichuan Basin, Sichuan Province, China from ConocoPhillips.

2009-2011

In 2010, the company announced major discoveries in the Eagle Ford shale.

2012-2014

In 2014, EOG sold its assets in Canada. In 2014, founder Mark G. Papa resigned from the board of directors.

2015-2017

In 2015, the company spent $368 million to acquire additional acreage in the Delaware Basin. In 2015, as a result of a decline in commodity prices, the company reduced its capital expenditure budget by over 40%. In 2016, the company plans to reduce its capital expenditure budget by an additional 31%.

In September 2016, EOG Resources and Yates Petroleum agreed to combine assets under the terms of a private, negotiated transaction in which EOG agreed to issue 26 million shares of common stock valued at 2.3 billion and pay 37 million in cash. The acquisition increased EOG's holdings by 176,000 net acres in the Delaware Basin, 200,000 net acres in the Powder River Basin, and 138,000 net acres on the Northwest Shelf in New Mexico. The acquisition adds 1,740 "premium wells" (defined as those which produce an after-tax rate of return of 30% or greater at $40/bbl oil) within the Powder River and Delaware Basins alone. Closing is anticipated to occur in early October 2016.

References

External links

• EOG Resources