USA: EOG Resources Q1 Net Income Rises

EOG Resources, Inc. reported first quarter 2011 net income of $134.0 million, or $0.52 per share. This compares to first quarter 2010 net income of $118.0 million, or $0.46 per share.

Consistent with some analysts’ practice of matching cash flow realizations to settlement months, and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income for the quarter was $177.0 million, or $0.68 per share. Adjusted non-GAAP net income for the first quarter 2010 was $117.8 million, or $0.46 per share. The results for the first quarter 2011 included a $30.3 million, net of tax ($0.12 per share) impairment of certain non-core United States natural gas assets, gains on property dispositions, net of tax, of $45.9 million ($0.18 per share) and a previously disclosed non-cash net loss of $66.7 million ($42.7 million after tax, or $0.16 per share) on the mark-to-market of financial commodity contracts. During the quarter, the net cash inflow related to financial commodity contracts was $24.9 million ($15.9 million after tax, or $0.06 per share). (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income to GAAP net income.)

“EOG’s strategic shift to a product mix more heavily weighted to crude oil and natural gas liquids is paying off,” said Mark G. Papa, Chairman and Chief Executive Officer. “During the first quarter, EOG benefited from producing greater liquids volumes and rising crude oil prices.”

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Source: EOG Resources, May 6, 2011;