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 FIRST QUARTER 2006 RESULTS

• United States Natural Gas Production Increases by 10 Percent Over
  First Quarter 2005

• Announces Significant North Louisiana Natural Gas Discovery

FOR IMMEDIATE RELEASE: Thursday, May 4, 2006

HOUSTON - EOG Resources, Inc. (EOG) today reported first quarter 2006 net income available to common of $424.8 million, or $1.73 per share. This compares to first quarter 2005 net income available to common of $200.8 million, or $0.83 per share.

The results for the first quarter 2006 included a previously disclosed $107.0 million ($68.8 million after tax, or $0.28 per share) gain on the mark-to-market of financial commodity price transactions. During the quarter, the net cash realized related to financial commodity contracts was $30.1 million ($19.3 million after tax, or $0.08 per share). Consistent with some analysts' practice of matching realizations to settlement months, adjusted non-GAAP net income available to common for the quarter was $375.3 million, or $1.53 per share. Last year's first quarter results included a $0.9 million ($0.6 million after tax, or less than $0.01 per share) loss on the mark-to-market of financial commodity price transactions. The net cash inflow from the settlement of financial commodity price transactions was $9.8 million ($6.4 million after tax, or $0.03 per share). Reflecting these items, first quarter 2005 adjusted non-GAAP net income available to common was $207.8 million, or $0.86 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.)

Operational Highlights

United States natural gas production increased 10 percent over the first quarter 2005 with particularly strong performance from EOG's Rocky Mountain, North Louisiana and Fort Worth operations.

In the Rocky Mountains' Uinta Basin in western Utah, natural gas production increased from ongoing drilling success and development activity in the Mesaverde. EOG plans to drill more than 170 wells this year in the Uinta, the majority on its 64,000 net acre position in the Natural Buttes/Chapita Wells areas of the basin. The company has more than doubled its drilling activity from three rigs that were operating in January to the current seven rig program.

In North Louisiana, EOG is participating in several high potential prospects in the Expanded Cotton Valley Play. EOG has a 50 percent working interest in the Marr 24 No. 1, which began natural gas production in February at an initial rate of 7.8 million cubic feet per day (MMcfd), gross. With its partners, EOG is running four rigs across the play.

Also in the Expanded Cotton Valley Play on trend with the prolific Vernon Field, EOG reported a natural gas discovery on the Eros prospect. Drilled to 14,000 feet, the Spillers No.18-1, in which EOG has a 50 percent working interest, encountered significant natural gas pay. Three separate zones were completed, each testing at rates between 3 and 9 MMcfd, gross. A fourth zone remains to be completed. EOG plans to pursue immediate development of the estimated 100 to 200 net billion cubic feet natural gas discovery. Another high impact prospect will be tested in this region later in the year.

EOG reported excellent drilling results from Johnson County in the Fort Worth Basin. In eastern Johnson County, EOG completed the Raam No. 2H, which began flowing to sales in mid-April at 9 MMcfd of natural gas. EOG has a 100 percent working interest in the well, which was drilled as a 500 foot offset location to the previously announced discovery, the Raam No. 1H. In western Johnson County, the Clements No. 1H, in which EOG has a 100 percent working interest, tested at 5 MMcfd of natural gas.

"EOG's first quarter natural gas production from the Fort Worth Basin Barnett Shale Play exceeded our expectations. Across our operations, we added multiple wells at strong production rates that contributed to EOG's robust first quarter U.S. natural gas production growth," said Mark G. Papa, Chairman and Chief Executive Officer.

Capital Structure

During the first quarter, EOG further reduced long-term debt outstanding to $933 million at March 31, 2006. At quarter end, cash on the balance sheet was $821 million for net debt of $112 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 16 percent at March 31, 2006, down from 19 percent at December 31, 2005.

"EOG continues to execute its game plan to consistently deliver high organic growth, with low debt and a vigorous rate of return," said Papa.

Conference Call Scheduled for May 5, 2006

An updated investor presentation and reconciliation schedules will be posted to the EOG website prior to the conference call.

EOG's first quarter 2006 conference call will be available via live audio webcast at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) Friday, May 5, 2006. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through Friday, May 19, 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, 2005, 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
			Ended March 31
				2006	2005
Net Operating Revenues			$	1,084.5	$	688.2
Net Income Available to Common			$	424.8	$	200.8
Net Income Per Share Available to Common
	Basic		$	1.76	$	0.85
	Diluted		$	1.73	$	0.83
Average Number of Shares Outstanding
	Basic			241.1		237.3
	Diluted			245.9		242.1
SUMMARY INCOME STATEMENTS
(Unaudited; in thousands)
			Quarter
			Ended March 31
			2006		2005
Net Operating Revenues
	Wellhead Natural Gas		$	789,061	$	543,106
	Wellhead Crude Oil, Condensate and Natural Gas Liquids			184,718		144,536
	Gains (Losses) on Mark-to-Market Commodity Derivative Contracts			107,024		(940)
	Other, Net			3,733		1,454
		Total		1,084,536		688,156
Operating Expenses
	Lease and Well			87,484		65,768
	Transportation Costs			28,096		17,107
	Exploration Costs			39,392		34,816
	Dry Hole Costs			10,726		14,582
	Impairments			22,773		12,172
	Depreciation, Depletion and Amortization			177,652		153,016
	General and Administrative			36,291		28,687
	Taxes Other Than Income			53,694		41,913
		Total		456,108		368,061
Operating Income				628,428		320,095
Other Income, Net				14,556		5,465
Income Before Interest Expense and Income Taxes				642,984		325,560
Interest Expense, Net				13,153		13,957
Income Before Income Taxes				629,831		311,603
Income Tax Provision				203,124		108,900
Net Income				426,707		202,703
Preferred Stock Dividends				1,858		1,858
Net Income Available to Common			$	424,849	$	200,845

EOG RESOURCES, INC.
OPERATING HIGHLIGHTS
(Unaudited)
			Quarter
			Ended March 31
			2006		2005
Wellhead Volumes and Prices
Natural Gas Volumes (MMcfd)
	United States			758		689
	Canada			229		234
		United States & Canada		987		923
	Trinidad			283		205
	United Kingdom			34		35
		Total		1,304		1,163
Average Natural Gas Prices ($/Mcf)
	United States		$	7.77	$	5.97
	Canada			7.87		5.69
		United States & Canada Composite		7.79		5.90
	Trinidad			2.44		1.74
	United Kingdom			11.56		6.65
		Composite		6.72		5.19
Crude Oil and Condensate Volumes (MBbld)
	United States			21.0		22.5
	Canada			2.6		2.5
		United States & Canada		23.6		25.0
	Trinidad			5.4		4.1
	United Kingdom			0.2		0.2
		Total		29.2		29.3
Average Crude Oil and Condensate Prices ($/Bbl)
	United States		$	60.42	$	48.79
	Canada			51.95		44.79
		United States & Canada Composite		59.48		48.39
	Trinidad			61.79		45.38
	United Kingdom			57.86		39.74
		Composite		59.90		47.91
Natural Gas Liquids Volumes (MBbld)
	United States			7.3		5.5
	Canada			0.7		1.5
		Total		8.0		7.0
Average Natural Gas Liquids Prices ($/Bbl)
	United States		$	37.19	$	29.28
	Canada			42.77		27.47
		Composite		37.69		28.89
Natural Gas Equivalent Volumes (MMcfed)
	United States			927		857
	Canada			249		258
		United States & Canada		1,176		1,115
	Trinidad			316		230
	United Kingdom			35		36
		Total		1,527		1,381
Total Bcfe Deliveries				137.5		124.3

	EOG RESOURCES, INC.
	SUMMARY BALANCE SHEETS
	(Unaudited; in thousands, except share data)
				March 31,		December 31,
				2006		2005
	ASSETS
Current Assets
	Cash and Cash Equivalents		$	821,327	$	643,811
	Accounts Receivable, Net			627,667		762,207
	Inventories			76,638		63,215
	Assets from Price Risk Management Activities			88,385		11,415
	Deferred Income Taxes			-		24,376
	Other			50,741		58,214
	Total			1,664,758		1,563,238
Oil and Gas Properties (Successful Efforts Method)				11,742,417		11,173,389
	Less: Accumulated Depreciation, Depletion and Amortization			(5,269,596)		(5,086,210)
	Net Oil and Gas Properties			6,472,821		6,087,179
Other Assets				105,811		102,903
Total Assets			$	8,243,390	$	7,753,320
	LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts Payable		$	673,914	$	679,548
	Accrued Taxes Payable			169,360		140,902
	Dividends Payable			14,760		9,912
	Deferred Income Taxes			36,228		164,659
	Current Portion of Long-Term Debt			124,075		126,075
	Other			49,188		50,945
	Total			1,067,525		1,172,041
Long-Term Debt				808,667		858,992
Other Liabilities				289,850		283,407
Deferred Income Taxes				1,333,988		1,122,588
Shareholders' Equity
	Preferred Stock, $0.01 Par, 10,000,000 Shares Authorized:
		Series B, 100,000 Shares Issued, Cumulative,
		$100,000,000 Liquidation Preference		99,121		99,062
	Common Stock, $0.01 Par, 640,000,000 Shares Authorized
		and 249,460,000 Shares Issued		202,495		202,495
	Additional Paid In Capital			60,905		84,705
	Unearned Compensation			-		(36,246)
	Accumulated Other Comprehensive Income			175,743		177,137
	Retained Earnings			4,330,772		3,920,483
	Common Stock Held in Treasury, 6,864,234 Shares at
		March 31, 2006 and 7,385,862 Shares at December 31, 2005		(125,676)		(131,344)
		Total Shareholders' Equity		4,743,360		4,316,292
Total Liabilities and Shareholders' Equity			$	8,243,390	$	7,753,320

EOG RESOURCES, INC.
SUMMARY STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
				Quarter
				Ended March 31
				2006		2005
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
	Net Income		$	426,707	$	202,703
	Items Not Requiring Cash
		Depreciation, Depletion and Amortization		177,652		153,016
		Impairments		22,773		12,172
		Stock-Based Compensation Expenses		9,003		2,719
		Deferred Income Taxes		106,326		44,928
		Other, Net		(4,444)		(1,462)
	Dry Hole Costs			10,726		14,582
	Mark-to-Market Commodity Derivative Contracts
		Total (Gains) Losses		(107,024)		940
		Realized Gains		30,054		9,807
	Tax Benefits From Stock Options Exercised			-		9,348
	Other, Net			4,299		(2,113)
	Changes in Components of Working Capital and Other Liabilities
		Accounts Receivable		135,150		5,518
		Inventories		(13,370)		(8,701)
		Accounts Payable		(9,535)		(26,352)
		Accrued Taxes Payable		29,298		41,807
		Other Liabilities		5,429		3,666
		Other, Net		(3,090)		(6,459)
	Changes in Components of Working Capital Associated with
		Investing and Financing Activities		(33,187)		25,720
Net Cash Provided by Operating Activities				786,767		481,839
Investing Cash Flows
	Additions to Oil and Gas Properties			(589,048)		(363,760)
	Proceeds from Sales of Assets			2,741		19,752
	Changes in Components of Working Capital Associated with
		Investing Activities		33,288		(25,671)
	Other, Net			(5,253)		(7,394)
Net Cash Used in Investing Activities				(558,272)		(377,073)
Financing Cash Flows
	Net Commercial Paper and Line of Credit Borrowings			-		42,175
	Long-Term Debt Repayments			(52,325)		-
	Dividends Paid			(11,432)		(8,880)
	Excess Tax Benefits from Stock-Based Compensation Expenses			7,177		-
	Proceeds from Stock Options Exercised			6,129		14,264
	Changes in Components of Working Capital Associated with
		Financing Activities		(101)		(49)
Net Cash (Used in) Provided by Financing Activities				(50,552)		47,510
Effect of Exchange Rate Changes on Cash				(427)		129
Increase in Cash and Cash Equivalents				177,516		152,405
Cash and Cash Equivalents at Beginning of Period				643,811		20,980
Cash and Cash Equivalents at End of Period			$	821,327	$	173,385

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 first quarter reported Net Income Available to Common to reflect actual cash realized from previously disclosed gas hedges by eliminating the unrealized mark-to-market gains or losses from these transactions. 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. EOG management uses this information for comparative purposes within the industry.
		Quarter
		Ended March 31
		2006		2005
Reported Net Income Available to Common		$	424,849	$	200,845
Mark-to-Market (MTM) Commodity Derivative Contracts Impact
	Total (Gains) Losses		(107,024)		940
	Realized Gains		30,054		9,807
	Subtotal		(76,970)		10,747
	After Tax MTM Impact		(49,530)		6,916
Adjusted Non-GAAP Net Income Available to Common		$	375,319	$	207,761
Adjusted Non-GAAP Net Income Per Share Available to Common
	Basic	$	1.56	$	0.88
	Diluted	$	1.53	$	0.86
Average Number of Shares Outstanding
	Basic		241,118		237,293
	Diluted		245,923		242,114

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 periods ended March 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
			Ended March 31
			2006		2005
Net Cash Provided by Operating Activities (GAAP)			$	786,767	$	481,839
Adjustments
	Exploration Costs			39,392		34,816
	Changes in Components of Working Capital and Other Liabilities
		Accounts Receivable		(135,150)		(5,518)
		Inventories		13,370		8,701
		Accounts Payable		9,535		26,352
		Accrued Taxes Payable		(29,298)		(41,807)
		Other Liabilities		(5,429)		(3,666)
		Other, Net		3,090		6,459
	Changes in Components of Working Capital Associated
		with Investing and Financing Activities		33,187		(25,720)
	Preferred Stock Dividends			(1,858)		(1,858)
Discretionary Cash Flow Available to Common (Non-GAAP)			$	713,606	$	479,598

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 data)
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.
			December 31,		March 31,
			2005		2006
	Total Shareholders' Equity - (a)	$	4,316	$	4,743
	Current and Long-Term Debt		985		933
	Less: Cash		(644)		(821)
	Net Debt (Non-GAAP) - (b)		341		112
	Total Capitalization (Non-GAAP) - (a) + (b)	$	4,657	$	4,855
	Net Debt-to-Total Capitalization - (b) / [(a) + (b)]		7%		2%