EX-99 2 ex99_1.htm PRESS RELEASE OF EOG RESOURCES, INC. EXHIBIT 99.1

EOG Resources, Inc.
News Release
For Further Information Contact:                                                                                            Investors
                                                                                                                                                   Maire A. Baldwin
                                                                                                                                                   (713) 651-6EOG (651-6364)

                                                                                                                                                   Media and Investors
                                                                                                                                                   Elizabeth M. Ivers
                                                                                                                                                   (713) 651-7132

EOG RESOURCES REPORTS 2005 NET INCOME

Achieves 16.2 Percent Daily Production Increase

Raises 2006 Total Company Organic Production Growth Target to 10.5 Percent - 16.5 Percent for United States and Canadian Natural Gas

Continues High Level of Economic Success in Johnson County Barnett Shale Activity and Increases Confidence in Western Counties

Announces Natural Gas Discovery in Trinidad

Reports 9.7 Percent Reserve Growth

Increases Common Stock Dividend 50 Percent

FOR IMMEDIATE RELEASE: Wednesday, February 1, 2006

HOUSTON - EOG Resources, Inc. (EOG) today reported fourth quarter 2005 net income available to common of $461.8 million, or $1.88 per share. This compares to fourth quarter 2004 net income available to common of $204.1 million, or $0.85* per share. For the full year 2005, EOG reported net income available to common of $1,252.1 million or $5.13 per share as compared to $614.0 million, or $2.58* per share, for the full year 2004.

The results for the fourth quarter 2005 included the following previously disclosed items: a one-time tax expense of $23.6 million ($0.10 per share) related to the repatriation of accumulated foreign earnings, an $11.4 million ($7.3 million after tax or $0.03 per share) gain on the mark-to-market of financial commodity price transactions and a one-time interest charge of $7.5 million ($4.9 million after tax or $0.02 per share) related to the early retirement of EOG's 2008 Notes. During the quarter, there was no cash realized related to financial commodity contracts. Consistent with some analysts' practice of matching realizations to settlement months and to exclude the impact of the above one-time items, adjusted non-GAAP net income available to common for the quarter was $482.9 million, or $1.97 per share. Last year's fourth quarter results included a $2.8 million ($1.8 million after tax, or $0.01* per share) gain on the mark-to-market of financial commodity price transactions. The net cash outflow from the settlement of financial commodity price transactions was $12.7 million ($8.1 million after tax, or $0.03* per share). Reflecting these items, fourth quarter 2004 adjusted non-GAAP net income available to common was $194.2 million, or $0.81* per share. On a similar basis, eliminating the one-time items detailed in the attached table, adjusted non-GAAP net income available to common for the full year 2005 was $1,271.5 million, or $5.21 per share and for the full year 2004 was $576.6 million, or $2.42* per share. (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income available to common to net income available to common.)

*Fourth quarter and full year 2004 per share amounts are restated for the two-for-one stock split effective March 1, 2005.
2006 Production Growth Target Increased

"Without a doubt, 2005 was EOG's strongest year to date. Through the consistent, successful execution of our drilling program, we exceeded our goals for total company production growth and increased North American natural gas production beyond our target while reducing net debt. Even though we are coming off a higher 2005 production base than we had targeted, we have the confidence to increase our 2006 production growth goals from the previously stated 9.5 percent to 10.5 percent. We expect a disproportionate amount of this 2006 production increase to emanate from our higher margin natural gas activities in the U.S. and Canada where we are targeting 16.5 percent growth," said Mark G. Papa, Chairman and Chief Executive Officer.

Operational Highlights

For the full year 2005, total company production increased 16.2 percent on a daily basis as compared to 2004, exceeding the most recently stated production growth target of 15.5 percent. In the United States and Canada, where EOG posted outstanding operational results, natural gas production increased 12.2 percent. The largest production increases were reported from the Fort Worth Basin Barnett Shale Play, East Texas, North Louisiana, the Mid-Continent and the Rocky Mountains.

EOG holds more than 500,000 total acres in the Barnett Shale where it currently operates 12-rigs. Over the course of 2006, EOG plans to expand its drilling program across the play to a 22-rig program.

In Johnson County, the Raam Unit #1H well began natural gas production in January at an initial rate of 10 million cubic feet per day (MMcfd). After 10 days of sales, the well, in which EOG has a 100 percent working interest, is producing 8 MMcfd. In northeastern Johnson County, the Scottie Dog #2H, in which EOG has an 88 percent working interest, was completed in late December at an initial gross rate of 7.0 MMcfd. The well is currently producing 3.9 MMcfd, gross of natural gas. In western Johnson County, EOG has a 100 percent working interest in the Brown Unit #1H that began flowing to sales in January and is now producing 3.8 MMcfd.

"The Raam #1H is one of the best natural gas wells completed by any operator in the entire Barnett Shale Play, not just in Johnson County," Papa said. "With the results of our down spacing tests and the strength of our drilling activity, in 2006 we plan to pursue development in Johnson County on 500-foot spacing."

In the western counties of Jack, Erath and Hood, EOG is doubling its drilling activity to a four-rig program in the first quarter of 2006.

"We believe that the completion techniques that further improved our drilling economics in Johnson County can be applied to our acreage in the western counties where we have seen improved drilling results over the past three months," Papa said. "This provides the assurance to actively pursue development in these areas."

During 2005, total daily production increased 40 percent from 2004 in the United Kingdom North Sea and offshore Trinidad. EOG reported its first full year of production from the United Kingdom North Sea.

In Trinidad, total 2005 daily production increased 25 percent over the previous year. During 2005, EOG commenced natural gas production to supply two new long-term contracts. EOG is supplying natural gas that is being used as feedstock for the M5000 Methanol Plant, which began operation in September, and for Atlantic LNG Train 4, which started taking gas in December prior to plant commissioning. During the fourth quarter 2005, EOG's natural gas deliveries to the two plants exceeded expected volumes. EOG also reported exploration success from its first well, the 4(a) E-1, drilled on Block 4(a) offshore Trinidad, which encountered 399 feet of net gas pay from multiple sands. EOG has a 90 percent working interest in the block where it plans to immediately drill a second well, the E-2, into an adjoining fault block.

"Based on the drilling results from the E-1, we expect that together the E-1 and E-2 wells will prove up 200 to 400 net billion cubic feet of gas on Block 4(a). We intend to commence development work by mid-2006 and are targeting mid-2009 for on-line production," said Papa.

Reserves

At December 31, 2005, total company reserves were approximately 6.2 trillion cubic feet equivalent, an increase of 548 billion cubic feet equivalent (Bcfe), or almost 10 percent higher than 2004. From drilling alone, EOG added 1,046 Bcfe of reserves. For the year, total reserve replacement - the ratio of net reserve additions from drilling, acquisitions, revisions and dispositions to total production - was 204 percent. (Please see attached tables for supporting data.)

"In the current rising cost environment, we consider the all-in unit reserve replacement costs, which are essentially flat with those of 2004 to be excellent," said Papa. (Please see attached tables for supporting data.)

For the 18^th consecutive year, internal reserve estimates were within 5 percent of those prepared by the independent reserve engineering firm of DeGolyer and MacNaughton. The firm prepared an independent engineering analysis of properties containing 82 percent of EOG's proved reserves on a Bcfe basis.

Capital Structure

At December 31, 2005, EOG's total current and long-term debt outstanding was $985 million, and cash on the balance sheet was $644 million for net debt of $341 million. (Please refer to the attached tables for the reconciliation of non-GAAP net debt to current and long-term debt.) The company's debt-to-total capitalization ratio was 19 percent at December 31, 2005, down from 27 percent at December 31, 2004.

"In 2005, we executed a dynamic drilling program, posted a 16.2 percent daily production increase, achieved a 35.5 percent return on equity and a 30 percent return on capital employed, while paying down debt to end the year with a 7 percent net debt to total capitalization ratio," said Papa. "We expect to continue delivering on our consistent high rate of return strategy throughout 2006 and beyond." (Please refer to the attached tables for the calculation of return on equity, return on capital employed and the reconciliation of non-GAAP net debt to current and long-term debt.)

Dividend Increase Announced

Following a 33 percent increase in 2005, EOG's Board of Directors again has increased the cash dividend on the common stock. Effective with the dividend payable on April 28, 2006 to record holders as of April 13, 2006, the quarterly dividend on the common stock will be $0.06 per share. This reflects a 50 percent increase to an indicated annual rate of $0.24 per share, the sixth increase in seven years.

Conference Call Scheduled for February 2, 2006

EOG's fourth quarter and full year 2005 conference call will be available via live audio webcast at 8:00 a.m. Central Standard Time (9:00 a.m. Eastern Standard Time) Thursday, February 2, 2006. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through Thursday, February 16, 2006.

EOG Resources, Inc. is one of the largest independent (non-integrated) oil and natural gas companies in the United States with proved reserves in the United States, Canada, offshore Trinidad and the United Kingdom North Sea. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG."

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts, including, among others, statements regarding EOG's future financial position, business strategy, budgets, reserve information, projected levels of production, projected costs and plans and objectives of management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "strategy," "intend," "plan," "target" and "believe" or the negative of those terms or other variations of them or by comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning future operating results, the ability to replace or increase reserves or to increase production, or the ability to generate income or cash flows are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes its expectations reflected in forward-looking statements are based on reasonable assumptions, no assurance can be given that these expectations will be achieved. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include, among others: the timing and extent of changes in commodity prices for crude oil, natural gas and related products, foreign currency exchange rates and interest rates; the timing and impact of liquefied natural gas imports and changes in demand or prices for ammonia or methanol; the extent and effect of any hedging activities engaged in by EOG; the extent of EOG's success in discovering, developing, marketing and producing reserves and in acquiring oil and gas properties; the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; the availability and cost of drilling rigs, experienced drilling crews, materials and equipment used in well completions, and tubular steel; the availability, terms and timing of governmental and other permits and rights of way; the availability of pipeline transportation capacity; the extent to which EOG can economically develop its Barnett Shale acreage outside of Johnson County, Texas; whether EOG is successful in its efforts to more densely develop its acreage in the Barnett Shale and other production areas; political developments around the world; acts of war and terrorism and responses to these acts; weather; and financial market conditions. In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements might not occur. Forward-looking statements speak only as of the date made and EOG undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. As noted above, statements of proved reserves are only estimates and may be imprecise. Any reserve estimates provided in this press release that are not specifically designated as being estimates of proved reserves may include not only proved reserves, but also other categories of reserves that the SEC's guidelines strictly prohibit EOG from including in filings with the SEC. Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for fiscal year ended December 31, 2004, available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this form from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.

EOG RESOURCES, INC.
FINANCIAL REPORT
(Unaudited; in millions, except per share data)

			Quarter					Twelve Months
			Ended December 31					Ended December 31
				2005	2004			2005		2004

Net Operating Revenues			$	1,213.7	$	693.7		$	3,620.2	$	2,271.2
Net Income Available to Common			$	461.8	$	204.1		$	1,252.1	$	614.0
Net Income Per Share Available to Common
	Basic		$	1.92	$	0.86	*	$	5.24	$	2.63	*
	Diluted		$	1.88	$	0.85	*	$	5.13	$	2.58	*
Average Number of Shares Outstanding
	Basic			240.4		236.1	*		238.8		233.8	*
	Diluted			245.5		241.1	*		244.0		238.4	*


SUMMARY INCOME STATEMENTS
(Unaudited; in thousands)

			Quarter					Twelve Months
			Ended December 31					Ended December 31
			2005		2004			2005		2004
Net Operating Revenues
	Wellhead Natural Gas		$	1,019,008	$	547,527		$	2,938,917	$	1,842,316
	Wellhead Crude Oil, Condensate and Natural Gas Liquids			184,489		142,208			668,073		458,446
	Gains (Losses) on Mark-to-Market Commodity Derivative Contracts			11,415		2,826			10,475		(33,449)
	Other, Net			(1,224)		1,093			2,748		3,912
		Total		1,213,688		693,654			3,620,213		2,271,225
Operating Expenses
	Lease and Well, including Transportation			111,619		72,110			373,355		271,086
	Exploration Costs			38,283		26,475			133,116		93,941
	Dry Hole Costs			8,563		41,937			64,812		92,142
	Impairments			23,237		30,241			77,932		81,530
	Depreciation, Depletion and Amortization			176,974		144,125			654,258		504,403
	General and Administrative			37,039		34,152			125,918		115,013
	Taxes Other Than Income			63,098		38,091			199,007		133,915
		Total		458,813		387,131			1,628,398		1,292,030
Operating Income				754,875		306,523			1,991,815		979,195

Other Income, Net				13,330		7,296			35,828		9,945

Income Before Interest Expense and Income Taxes				768,205		313,819			2,027,643		989,140

Interest Expense, Net				19,985		14,919			62,506		63,128

Income Before Income Taxes				748,220		298,900			1,965,137		926,012

Income Tax Provision				284,564		92,145			705,561		301,157

Net Income				463,656		206,755			1,259,576		624,855

Preferred Stock Dividends				1,859		2,618			7,432		10,892

Net Income Available to Common			$	461,797	$	204,137		$	1,252,144	$	613,963

* Restated for 2-for-1 stock split effective March 1, 2005.

EOG RESOURCES, INC.
OPERATING HIGHLIGHTS
(Unaudited)

			Quarter				Twelve Months
			Ended December 31				Ended December 31
			2005		2004		2005			2004
Wellhead Volumes and Prices
Natural Gas Volumes (MMcf/d)
	United States			749		666		718			631
	Canada			225		234		228			212
		United States & Canada		974		900		946			843
	Trinidad			294		224		231			186
	United Kingdom			44		19		39			7
		Total		1,312		1,143		1,216			1,036

Average Natural Gas Prices ($/Mcf)
	United States		$	10.38	$	6.21	$	7.86		$	5.72
	Canada			9.73		5.79		7.14			5.22
		United States & Canada Composite		10.23		6.10		7.69			5.60
	Trinidad			2.25		1.63		2.20	^(A)		1.51
	United Kingdom			10.24		5.08		6.99			5.14
		Composite		8.44		5.20		6.62			4.86

Crude Oil and Condensate Volumes (MBD)
	United States			20.4		22.5		21.5			21.1
	Canada			2.5		2.9		2.4			2.7
		United States & Canada		22.9		25.4		23.9			23.8
	Trinidad			5.6		4.4		4.5			3.6
	United Kingdom			0.2		0.1		0.2			-
		Total		28.7		29.9		28.6			27.4

Average Crude Oil and Condensate Prices ($/Bbl)
	United States		$	57.20	$	46.68	$	54.57		$	40.73
	Canada			54.05		42.50		50.49			37.68
		United States & Canada Composite		56.86		46.19		54.16			40.39
	Trinidad			65.78		41.14		57.36			39.12
	United Kingdom			51.89		40.82		49.62			-
		Composite		58.55		45.43		54.63			40.22

Natural Gas Liquids Volumes (MBD)
	United States			6.9		4.9		6.6			4.8
	Canada			0.7		1.1		0.9			0.8
		Total		7.6		6.0		7.5			5.6

Average Natural Gas Liquids Prices ($/Bbl)
	United States		$	42.62	$	32.75	$	35.59		$	27.79
	Canada			46.68		26.09		35.59			23.23
		Composite		42.97		31.48		35.59			27.13

Natural Gas Equivalent Volumes (MMcfe/d)
	United States			913		830		886			786
	Canada			244		258		248			233
		United States & Canada		1,157		1,088		1,134			1,019
	Trinidad			327		251		259			207
	United Kingdom			45		20		40			7
		Total		1,529		1,359		1,433			1,233

Total Bcfe Deliveries				140.7		125.0		523.0			451.5


(A) Includes $0.23 per Mcf as a result of a revenue adjustment related to an amended Trinidad take-or-pay contract.

	EOG RESOURCES, INC.
	SUMMARY BALANCE SHEETS
	(Unaudited; in thousands, except share data)


				December 31,		December 31,
				2005		2004

	ASSETS
Current Assets
	Cash and Cash Equivalents		$	643,811	$	20,980
	Accounts Receivable, Net			762,207		447,742
	Inventories			63,215		40,037
	Assets from Price Risk Management Activities			11,415		10,747
	Income Taxes Receivable			255		3,232
	Deferred Income Taxes			24,376		22,227
	Other			57,959		41,838
	Total			1,563,238		586,803

Oil and Gas Properties (Successful Efforts Method)				11,173,389		9,599,276
	Less: Accumulated Depreciation, Depletion and Amortization			(5,086,210)		(4,497,673)
	Net Oil and Gas Properties			6,087,179		5,101,603
Other Assets				102,903		110,517
Total Assets			$	7,753,320	$	5,798,923

	LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts Payable		$	679,548	$	424,581
	Accrued Taxes Payable			140,902		51,116
	Dividends Payable			9,912		7,394
	Deferred Income Taxes			164,659		103,933
	Current Portion of Long-Term Debt			126,075		-
	Other			50,945		45,180
	Total			1,172,041		632,204


Long-Term Debt				858,992		1,077,622
Other Liabilities				283,407		241,319
Deferred Income Taxes				1,122,588		902,354

Shareholders' Equity
	Preferred Stock, $0.01 Par, 10,000,000 Shares Authorized:
		Series B, 100,000 Shares Issued, Cumulative,
		$100,000,000 Liquidation Preference		99,062		98,826
	Common Stock, $0.01 Par, 640,000,000 Shares Authorized and
		249,460,000* Shares Issued		202,495		201,247
	Additional Paid In Capital			84,705		21,047
	Unearned Compensation			(36,246)		(29,861)
	Accumulated Other Comprehensive Income			177,137		148,015
	Retained Earnings			3,920,483		2,706,845
	Common Stock Held in Treasury, 7,385,862 Shares at
		December 31, 2005 and 11,605,112* Shares at December 31, 2004		(131,344)		(200,695)
		Total Shareholders' Equity		4,316,292		2,945,424
Total Liabilities and Shareholders' Equity			$	7,753,320	$	5,798,923


* Restated for 2-for-1 stock split effective March 1, 2005.

EOG RESOURCES, INC.
SUMMARY STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)


				Twelve Months
				Ended December 31
				2005		2004
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
	Net Income		$	1,259,576	$	624,855
	Items Not Requiring Cash
		Depreciation, Depletion and Amortization		654,258		504,403
		Impairments		77,932		81,530
		Deferred Income Taxes		270,291		204,231
		Other, Net		9,642		4,580
	Dry Hole Costs			64,812		92,142
	Mark-to-Market Commodity Derivative Contracts
		Total (Gains) Losses		(10,475)		33,449
		Realized Gains (Losses)		9,807		(82,644)
		Collar Premium		-		(520)
	Tax Benefits From Stock Options Exercised			50,880		29,396
	Other, Net			(5,086)		537
	Changes in Components of Working Capital and Other Liabilities
		Accounts Receivable		(315,557)		(151,799)
		Inventories		(23,085)		(17,898)
		Accounts Payable		248,411		136,716
		Accrued Taxes Payable		88,151		18,197
		Other Liabilities		(1,213)		(1,764)
		Other, Net		(10,347)		(2,683)
	Changes in Components of Working Capital Associated with
	Investing and Financing Activities			1,429		(28,381)
Net Cash Provided by Operating Activities				2,369,426		1,444,347

Investing Cash Flows
	Additions to Oil and Gas Properties			(1,724,763)		(1,416,684)
	Proceeds from Sales of Assets			70,987		13,459
	Changes in Components of Working Capital Associated with
	Investing Activities			(1,538)		26,788
	Other, Net			(22,794)		(20,471)
Net Cash Used in Investing Activities				(1,678,108)		(1,396,908)

Financing Cash Flows
	Commercial Paper Repayments			(91,800)		(6,250)
	Long-Term Debt Borrowings			250,000		150,000
	Long-Term Debt Repayments			(250,755)		(175,000)
	Dividends Paid			(42,986)		(37,595)
	Redemption of Preferred Stock			-		(50,000)
	Proceeds from Stock Options Exercised			64,668		75,510
	Changes in Components of Working Capital Associated with
	Financing Activities			109		1,593
	Other, Net			(1,546)		(1,496)
Net Cash Used in Financing Activities				(72,310)		(43,238)

Effect of Exchange Rate Changes on Cash				3,823		12,336

Increase in Cash and Cash Equivalents				622,831		16,537
Cash and Cash Equivalents at Beginning of Period				20,980		4,443
Cash and Cash Equivalents at End of Period			$	643,811	$	20,980

EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON (Non-GAAP)
TO NET INCOME AVAILABLE TO COMMON (GAAP)
(Unaudited; in thousands, except per share data)

The following chart adjusts three-month and twelve-month periods ended December 31 reported Net Income Available to Common to reflect actual cash realized from oil and gas hedges by eliminating the unrealized mark-to-market gains or losses from these transactions, to add the one-time interest charge related to early retirement of the 2008 Notes and the one-time tax expense related to the repatriation of accumulated foreign earnings in the fourth quarter 2005, to eliminate the upward revenue adjustment for an amended Trinidad gas sales agreement recorded in the second quarter of 2005 and to eliminate a tax benefit related to the Alberta (Canada) corporate tax rate reduction recorded in the second quarter of 2004. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match realizations to production settlement months and make certain other adjustments to exclude one-time items. EOG management uses this information for comparative purposes within the industry.


		Quarter					Twelve Months
		Ended December 31					Ended December 31
		2005		2004			2005		2004

Reported Net Income Available to Common		$	461,797	$	204,137		$	1,252,144	$	613,963

Mark-to-Market (MTM) Commodity Derivative Contracts Impact
	Total (Gains) Losses		(11,415)		(2,826)			(10,475)		33,449
	Realized (Losses) Gains		-		(12,137)			9,807		(82,644)
	Collar Premium		-		(520)			-		(520)
	Subtotal		(11,415)		(15,483)			(668)		(49,715)

	After Tax MTM Impact		(7,346)		(9,963)			(430)		(31,992)

Add: Interest charge related to early retirement of the 2008 Notes,
	net of tax		4,855		-			4,855		-
Add: Tax expense related to the repatriation of accumulated foreign
	earnings		23,625		-			23,625		-
Less: Revenue adjustment for an amended Trinidad gas sales
	agreement, net of tax		-		-			(8,672)		-
Less: Tax benefit related to the Alberta (Canada) corporate tax
	rate reduction		-		-			-		(5,335)


Adjusted Non-GAAP Net Income Available to Common		$	482,931	$	194,174		$	1,271,522	$	576,636

Adjusted Non-GAAP Net Income Per Share Available to Common
	Basic	$	2.01	$	0.82	*	$	5.32	$	2.47	*
	Diluted	$	1.97	$	0.81	*	$	5.21	$	2.42	*

Average Number of Shares Outstanding
	Basic		240,427		236,140	*		238,797		233,751	*
	Diluted		245,463		241,113	*		243,975		238,376	*

* Restated for 2-for-1 stock split effective March 1, 2005.

EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF DISCRETIONARY CASH FLOW AVAILABLE TO COMMON (Non-GAAP)
TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)
(Unaudited; in thousands)

The following chart reconciles three-month and twelve-month periods ended December 31 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow Available to Common (Non-GAAP). EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust Net Cash Provided by Operating Activities for Exploration Costs, Changes in Components of Working Capital, Other Liabilities and Preferred Stock Dividends. EOG management uses this information for comparative purposes within the industry.

			Quarter					Twelve Months
			Ended December 31					Ended December 31
			2005		2004			2005		2004

Net Cash Provided by Operating Activities (GAAP)			$	865,214	$	426,473	$	2,369,426	$	1,444,347

Adjustments
	Exploration Costs			38,283		26,475		133,116		93,941
	Changes in Components of Working Capital and Other Liabilities
		Accounts Receivable		144,129		97,627		315,557		151,799
		Inventories		8,349		9,187		23,085		17,898
		Accounts Payable		(169,172)		(80,159)		(248,411)		(136,716)
		Accrued Taxes Payable		(80,133)		(11,769)		(88,151)		(18,197)
		Other Liabilities		49		6,384		1,213		1,764
		Other, Net		11,151		(2,518)		10,347		2,683
	Changes in Components of Working Capital Associated
		with Investing and Financing Activities		(3,371)		10,785		(1,429)		28,381
	Preferred Dividends			(1,859)		(2,618)		(7,432)		(10,892)

Discretionary Cash Flow Available to Common (Non-GAAP)			$	812,640	$	479,867	$	2,507,321	$	1,575,008

EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF NET DEBT (NON-GAAP)
AS USED IN THE CALCULATION OF THE NET DEBT-TO-TOTAL
CAPITALIZATION RATIO TO CURRENT AND LONG-TERM DEBT (GAAP)
(Unaudited; in millions, except ratio information)

The following chart reconciles Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) as used in the Net Debt-to-Total Capitalization ratio calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt in their Net Debt-to-Total Capitalization calculation. EOG management uses this information for comparative purposes within the industry.

		12/31/2005

	Total Shareholders' Equity - (a)	$ 4,316.3

	Current and Long-Term Debt	985.1
	Less: Cash	(643.8)
	Net Debt (Non-GAAP) - (b)	341.3

	Total Capitalization (Non-GAAP) - (a) + (b)	$ 4,657.6

	Net Debt-to-Total Capitalization - (b) / [(a) + (b)]	7%

EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF COMMON SHAREHOLDERS'
EQUITY (NON-GAAP) AS USED IN THE CALCULATION OF
THE RETURN ON EQUITY (ROE) TO SHAREHOLDERS' EQUITY (GAAP)
(Unaudited; in millions, except ratio information)

The following chart reconciles Shareholders' Equity (GAAP) to Common Shareholders' Equity (Non-GAAP) as used in the Return on Equity (ROE) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Common Shareholders' Equity in their ROE calculation. EOG management uses this information for comparative purposes within the industry.

	2004	2005

Shareholders' Equity	$ 2,945.4	$ 4,316.3
Less: Preferred Stock	(98.8)	(99.1)
Common Shareholders' Equity (Non-GAAP)	$ 2,846.6	$ 4,217.2

Average Common Shareholders' Equity - (a)		$ 3,531.9

Net Income Available to Common - (b)		$ 1,252.1

Return on Equity (ROE) - (b) / (a)		35.5%

EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF AFTER-TAX INTEREST EXPENSE
(NON-GAAP) AND NET DEBT (NON-GAAP) AS USED IN THE CALCULATION
OF THE RETURN ON CAPITAL EMPLOYED (ROCE)
TO INTEREST EXPENSE (GAAP) AND
CURRENT AND LONG-TERM DEBT (GAAP), RESPECTIVELY
(Unaudited; in millions, except ratio information)

The following chart reconciles Interest Expense (GAAP) and Current and Long-Term Debt (GAAP) to After-Tax Interest Expense (Non-GAAP) and Net Debt (Non-GAAP), respectively, as used in the Return on Capital Employed (ROCE) calculation. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize After-Tax Interest Expense and Net Debt in their ROCE calculation. EOG management uses this information for comparative purposes within the industry.

	2004	2005

Interest Expense		$ 62.5
Tax Benefit Imputed (based on 35%)		(21.9)
After Tax Interest Expense (Non-GAAP) - (a)		$ 40.6

Net Income - (b)		$ 1,259.6

Shareholders' Equity	$ 2,945.4	$ 4,316.3

Current and Long-Term Debt	1,077.6	985.1
Less: Cash	(21.0)	(643.8)
Net Debt (Non-GAAP)	1,056.6	341.3

Total Capitalization (Non-GAAP)	$ 4,002.0	$ 4,657.6

Average Total Capitalization (Non-GAAP) - (c)		$ 4,329.8

Return on Capital Employed (ROCE) - [(a) + (b)] / (c)		30%

EOG RESOURCES, INC.
RESERVES SUPPLEMENTAL DATA
(Unaudited)

2005 RESERVES RECONCILIATION SUMMARY
	United		U.S. and		United	Other	Total
NATURAL GAS (Bcf)	States	Canada	Canada	Trinidad	Kingdom	Int'l	Int'l	Total

Beginning Reserves	2,382.5	1,298.3	3,680.8	1,309.4	56.8	-	1,366.2	5,047.0
Revisions of previous estimates	(21.3)	3.1	(18.2)	26.7	(22.6)	-	4.1	(14.1)
Purchases in place	30.2	-	30.2	-	-	-	-	30.2
Extensions, discoveries and other additions	835.9	104.7	940.6	-	15.0	-	15.0	955.6
Sales in place	(11.8)	-	(11.8)	-	-	-	-	(11.8)
Production	(267.4)	(83.3)	(350.7)	(84.5)	(14.3)	-	(98.8)	(449.5)

Ending Reserves	2,948.1	1,322.8	4,270.9	1,251.6	34.9	-	1,286.5	5,557.4

LIQUIDS (MMBbls) (A)
Beginning Reserves	75.8	7.8	83.6	16.3	0.1	-	16.4	100.0
Revisions of previous estimates	3.6	1.3	4.9	(1.4)	-	-	(1.4)	3.5
Purchases in place	1.3	-	1.3	-	-	-	-	1.3
Extensions, discoveries and other additions	14.0	0.9	14.9	-	0.1	-	0.1	15.0
Sales in place	(0.4)	-	(0.4)	-	-	-	-	(0.4)
Production	(10.2)	(1.2)	(11.4)	(1.7)	(0.1)	-	(1.8)	(13.2)

Ending Reserves	84.1	8.8	92.9	13.2	0.1	-	13.3	106.2

NATURAL GAS EQUIVALENTS (Bcfe)
Beginning Reserves	2,837.2	1,344.9	4,182.1	1,407.0	57.6	-	1,464.6	5,646.7
Revisions of previous estimates	(0.1)	11.3	11.2	18.1	(22.6)	-	(4.5)	6.7
Purchases in place	38.2	-	38.2	-	-	-	-	38.2
Extensions, discoveries and other additions	920.0	110.2	1,030.2	-	15.4	-	15.4	1,045.6
Sales in place	(14.2)	-	(14.2)	-	-	-	-	(14.2)
Production	(328.7)	(90.7)	(419.4)	(94.4)	(14.8)	-	(109.2)	(528.6)

Ending Reserves	3,452.4	1,375.7	4,828.1	1,330.7	35.6	-	1,366.3	6,194.4


Net Proved Developed Reserves (Bcfe)
At December 31, 2004	2,218.5	1,114.7	3,333.2	826.2	57.6	-	883.8	4,217.0
At December 31, 2005	2,509.9	1,192.9	3,702.8	750.7	29.5	-	780.2	4,483.0

(A) Includes crude oil, condensate and natural gas liquids.


2005 EXPLORATION AND DEVELOPMENT EXPENDITURES (In Millions)

Acquisition Cost of Unproved Properties	$ 102.7	$ 24.3	$ 27.0	$ 4.5	$ -	$ -	$ 4.5	$ 131.5
Exploration Costs	286.9	42.4	329.3	19.9	18.1	2.8	40.8	370.1
Development Costs	983.5	276.6	1,260.1	25.8	14.4	-	40.2	1,300.3

Total Drilling	1,373.1	343.3	1,716.4	50.2	32.5	2.8	85.5	1,801.9

Acquisition Cost of Proved Properties	55.5	0.5	56.0	-	-	-	-	56.0

Total	1,428.6	343.8	1,772.4	50.2	32.5	2.8	85.5	1,857.9

Proceeds from Sales in Place	(49.6)	(3.4)	(53.0)	-	-	-	-	(53.0)

Net Expenditures	$ 1,379.0	$ 340.4	$ 1,719.4	$ 50.2	$ 32.5	$ 2.8	$ 85.5	$ 1,804.9

Asset Retirement Costs	$ 8.3	$ 10.7	$ 19.0	$ -	$ 0.8	$ -	$ 0.8	$ 19.8