EX-99 2 exh99_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 SECOND QUARTER 2007 RESULTS,

INCREASES FULL YEAR 2007 PRODUCTION GROWTH TARGET TO 11.5 PERCENT

High Rate Oil Wells Announced in North Dakota

Improved Completions Reflected in Johnson County Well Results

Plans to Divest Shallow Natural Gas Assets in Appalachia

FOR IMMEDIATE RELEASE: Thursday, August 2, 2007

HOUSTON - EOG Resources, Inc. (EOG) today reported second quarter 2007 net income available to common of $306.1 million, or $1.24 per share. This compares to second quarter 2006 net income available to common of $329.6 million, or $1.34 per share.

The results for the second quarter 2007 included a previously disclosed $44.1 million ($28.4 million after tax, or $0.12 per share) net gain on the mark-to-market of financial commodity price transactions. During the quarter, the net cash realized related to financial commodity contracts was $18.6 million ($12.0 million after tax, or $0.05 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 $289.7 million, or $1.17 per share. Adjusted non-GAAP net income available to common for the second quarter 2006 was $285.3 million, or $1.16 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.)

2007 Production Growth Target Increased

"Based on the increased momentum of our production growth, we are raising our full year 2007 total company growth target from 10 to 11.5 percent," said Mark G. Papa, Chairman and Chief Executive Officer. "One hundred percent of this growth is organic, which is significant for a company our size."

The increased 2007 production growth target is primarily driven by higher than anticipated United States crude oil and natural gas liquids (NGL) production for the second half of the year. Outstanding results from recent horizontal oil wells drilled in the North Dakota Bakken Play have boosted EOG's confidence in increasing oil production targets. In the western counties of the Fort Worth Basin Barnett Shale, recent wells have produced natural gas yielding stronger than anticipated NGL production.

Operational Highlights

EOG's natural gas production in the United States increased approximately 24 percent for the second quarter over the same period a year ago with particularly robust growth from the Fort Worth Basin Barnett Shale, East Texas, Rocky Mountain and Mid Continent areas.

In the Barnett Shale, EOG continues to make improvements in the application of well completion technology that has led to higher initial production rates and potentially higher recovery efficiencies, particularly in Johnson County. In East Texas, a new natural gas processing facility has provided additional capacity for EOG's natural gas production from the Branton Field where eight wells are producing approximately 14 million cubic feet per day (MMcfd), net.

Outside of the Barnett Shale, total production in the United States and Canada increased approximately 7 percent for the first six months of 2007 as compared to the same period a year ago, in part due to a 12 percent increase in United States crude oil and condensate production driven by drilling programs in North Dakota, Texas and Kansas. EOG is applying horizontal drilling technology to oil plays in both North Dakota and the Mid Continent. Currently operating a four-rig drilling program in the North Dakota Bakken, EOG plans to add an additional rig in the fourth quarter. In the Mid Continent area, recent success has set up several offset drilling locations for the second half of 2007.

While maintaining an active exploration effort in the pursuit of shale gas opportunities in Appalachia, EOG announced its intention to sell its shallow gas assets and associated 18 MMcfd of current natural gas production in the area. The sale is expected to close in either late 2007 or early 2008. Proceeds from the sale will be used to fund EOG's core portfolio and resource plays that have greater potential for production and reserve growth. Following the divestiture, EOG will continue to target an average of 9 percent total company production growth for 2008.

Well Highlights

North Dakota Bakken

Zacher 1-24H - EOG has a 75 percent working interest in the Zacher 1-24H that was completed in June with a peak production rate of 1,774 barrels of oil per day (Bopd), gross.

Hoff 1-10H - EOG has a 75 percent working interest in the Hoff 1-10H, which began flowing to sales in June at a peak rate of 2,034 Bopd, gross.

N&D 1-05H - EOG holds a 67 percent working interest in the N&D 1-05H, which was completed in July at an initial peak production rate of 1,610 Bopd, gross.

Fort Worth Basin Barnett Shale - Johnson, Palo Pinto and Hood Counties

Hughes Unit #1H - EOG completed the Hughes Unit #1H during the second quarter. The well, located in central Johnson County, flowed to sales at a peak production rate of 12 MMcfd, gross. EOG has an 86 percent working interest in the well.

Eagle Ford C Unit #4H and #5H - Drilled in the eastern part of Johnson County, the two wells were completed in June with initial production rates of 6.7 and 7.7 MMcfd, respectively. EOG has a 100 percent working interest in both wells.

Maples Unit #1H, #2H and #3H - EOG completed the three Maples Unit wells during July in eastern Johnson County. EOG has a 54 percent working interest in these three wells that began flowing to sales at initial production rates ranging from 5.8 to 9.9 MMcfd, gross.

McInroe A Unit #1H - EOG has a 100 percent working interest in this western extension well in Palo Pinto County. The McInroe A Unit #1H, which tested at a rate of 2.6 MMcfd, will be connected to sales during the third quarter.

Mabery A and B Unit #1H - Drilled in EOG's western extension acreage in Hood County, the wells began initial production in July at 1.8 and 2.1 MMcfd, gross, respectively. EOG has a 78 percent working interest in both the Mabery A and B Unit #1H.

Mid Continent

Willis 23 #1 - EOG's second oil discovery from the St. Louis Formation in Kansas, the Willis 23 #1, began flowing to sales at a rate of 800 Bopd. EOG has a 100 percent working interest in the well.

Cooper 358 #1H - A horizontal Cleveland well in the Texas Panhandle, the Cooper 358 #1H tested at 3.0 MMcfd and 700 Bopd. EOG has a 100 percent working interest in the well.

Conference Call Scheduled for August 3, 2007

EOG's second quarter 2007 conference call will be available via live audio webcast at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) Friday, August 3, 2007. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through Friday, August 17, 2007.

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, interest rates and financial market conditions;

the extent and effect of any hedging activities engaged in by EOG;

the timing and impact of liquefied natural gas imports;
changes in demand or prices for ammonia or methanol;

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 ability to achieve production levels from existing and future oil and gas development projects due to operating hazards, drilling risks and the inherent uncertainties in predicting oil and gas reservoir performance;

the availability and cost of drilling rigs, experienced drilling crews, tubular steel and other materials, equipment and services used in drilling and well completions;

the availability, terms and timing of mineral licenses and leases and governmental and other permits and rights of way;

access to surface locations for drilling and production facilities;

the availability and capacity of gathering, processing and pipeline transportation facilities;

the availability of compression uplift 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 and the enactment of new government policies, legislation and regulations;

acts of war and terrorism and responses to these acts; and

weather, including weather-related delays in the installation of gathering and production facilities.

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 (SEC) 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, 2006, 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				Six Months
			Ended June 30,				Ended June 30,
				2007	2006		2007		2006
Net Operating Revenues			$	1,055.2	$	919.1	$	1,930.5	$	2,003.6
Net Income Available to Common			$	306.1	$	329.6	$	522.9	$	754.4
Net Income Per Share Available to Common
	Basic		$	1.26	$	1.36	$	2.15	$	3.13
	Diluted		$	1.24	$	1.34	$	2.12	$	3.07
Average Number of Common Shares
	Basic			243.2		241.6		243.0		241.4
	Diluted			247.3		245.9		247.0		245.8


SUMMARY INCOME STATEMENTS
(Unaudited; in thousands)

			Quarter				Six Months
			Ended June 30,				Ended June 30,
			2007		2006		2007		2006
Net Operating Revenues
	Wellhead Natural Gas		$	790,456	$	642,969	$	1,526,098	$	1,432,030
	Wellhead Crude Oil, Condensate and Natural Gas Liquids			218,696		185,036		393,560		369,754
	Gains on Mark-to-Market Commodity Derivative Contracts			44,103		91,022		4,302		198,046
	Other, Net			1,988		61		6,496		3,794
		Total		1,055,243		919,088		1,930,456		2,003,624
Operating Expenses
	Lease and Well			123,188		87,287		227,513		174,771
	Transportation Costs			41,591		25,913		79,339		54,009
	Exploration Costs			41,216		35,313		67,600		74,705
	Dry Hole Costs			11,816		14,668		28,626		25,394
	Impairments			20,804		22,680		44,846		45,453
	Depreciation, Depletion and Amortization			259,780		192,928		504,122		370,580
	General and Administrative			47,183		38,607		91,062		74,898
	Taxes Other Than Income			62,047		46,858		102,695		100,552
		Total		607,625		464,254		1,145,803		920,362

Operating Income				447,618		454,834		784,653		1,083,262

Other Income, Net				29,069		21,844		34,993		36,400

Income Before Interest Expense and Income Taxes				476,687		476,678		819,646		1,119,662

Interest Expense, Net				10,818		12,384		18,456		25,537

Income Before Income Taxes				465,869		464,294		801,190		1,094,125

Income Tax Provision				158,816		132,877		276,470		336,001

Net Income				307,053		331,417		524,720		758,124

Preferred Stock Dividends				990		1,858		1,865		3,716

Net Income Available to Common			$	306,063	$	329,559	$	522,855	$	754,408

EOG RESOURCES, INC.
OPERATING HIGHLIGHTS
(Unaudited)

			Quarter				Six Months
			Ended June 30,				Ended June 30,
			2007		2006		2007		2006
Wellhead Volumes and Prices
Natural Gas Volumes (MMcfd) ^(A)
	United States			960		776		938		767
	Canada			232		225		227		227
		United States & Canada		1,192		1,001		1,165		994
	Trinidad			250		265		251		274
	United Kingdom			22		25		26		30
		Total		1,464		1,291		1,442		1,298

Average Natural Gas Prices ($/Mcf)^(B)
	United States		$	6.80	$	6.33	$	6.61	$	7.04
	Canada			6.70		6.28		6.57		7.08
		United States & Canada Composite		6.78		6.32		6.60		7.04
	Trinidad			2.04		2.18		2.42		2.31
	United Kingdom			4.35		6.34		5.04		9.32
		Composite		5.93		5.47		5.85		6.10

Crude Oil and Condensate Volumes (MBbld)^(A)
	United States			23.4		19.5		22.6		20.2
	Canada			2.4		2.4		2.5		2.5
		United States & Canada		25.8		21.9		25.1		22.7
	Trinidad			4.0		4.8		4.2		5.2
	United Kingdom			0.1		0.1		0.1		0.1
		Total		29.9		26.8		29.4		28.0

Average Crude Oil and Condensate Prices ($/Bbl) ^(B)
	United States		$	61.38	$	67.69	$	57.75	$	63.70
	Canada			60.08		62.62		55.88		57.12
		United States & Canada Composite		61.26		67.06		57.56		62.92
	Trinidad			75.16		67.47		67.32		64.45
	United Kingdom			68.82		65.80		59.61		61.04
		Composite		63.15		67.13		58.96		63.21

Natural Gas Liquids Volumes (MBbld)^(A)
	United States			10.4		9.0		10.0		8.1
	Canada			1.1		0.6		1.1		0.7
		Total		11.5		9.6		11.1		8.8

Average Natural Gas Liquids Prices ($/Bbl)^(B)
	United States		$	45.35	$	41.02	$	41.40	$	39.32
	Canada			42.30		46.55		39.39		44.56
		Composite		45.04		41.38		41.20		39.72

Natural Gas Equivalent Volumes (MMcfed) ^(C)
	United States			1,163		947		1,134		937
	Canada			253		244		248		246
		United States & Canada		1,416		1,191		1,382		1,183
	Trinidad			274		293		276		305
	United Kingdom			23		26		27		30
		Total		1,713		1,510		1,685		1,518

Total Bcfe^(C)				155.8		137.4		305.0		274.8

(A) Million cubic feet per day or thousand barrels per day, as applicable.
(B) Dollars per thousand cubic feet or per barrel, as applicable.
(C) Million cubic feet equivalent per day or billion cubic feet equivalent, as applicable; includes natural gas, crude oil, condensate and natural gas liquids. Natural gas equivalents are determined using the ratio of 6.0 thousand cubic feet of natural gas to 1.0 barrel of crude oil, condensate or natural gas liquids.

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


			June 30,		December 31,
			2007		2006

	ASSETS
Current Assets
	Cash and Cash Equivalents		$	58,534	$	218,255
	Accounts Receivable, Net			741,907		754,134
	Inventories			116,300		113,591
	Assets from Price Risk Management Activities			60,850		130,612
	Income Taxes Receivable			39,671		94,311
	Other			46,506		39,177
	Total			1,063,768		1,350,080

Oil and Gas Properties (Successful Efforts Method)				15,890,787		13,893,851
	Less: Accumulated Depreciation, Depletion and Amortization			(6,550,931)		(5,949,804)
	Net Oil and Gas Properties			9,339,856		7,944,047
Other Assets				120,640		108,033
Total Assets			$	10,524,264	$	9,402,160

	LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Accounts Payable		$	925,829	$	896,572
	Accrued Taxes Payable			101,372		130,984
	Dividends Payable			22,052		14,718
	Deferred Income Taxes			54,895		144,615
	Other			54,384		68,123
	Total			1,158,532		1,255,012


Long-Term Debt				883,842		733,442
Other Liabilities				328,121		300,907
Deferred Income Taxes				1,861,180		1,513,128

Shareholders' Equity
	Preferred Stock, $0.01 Par, 10,000,000 Shares Authorized:
		Series B, Cumulative, $1,000 Liquidation Preference Per Share,
		53,260 Shares Outstanding at June 30, 2007 and December
		31, 2006		52,951		52,887
	Common Stock, $0.01 Par, 640,000,000 Shares Authorized and
		249,460,000 Shares Issued		202,495		202,495
	Additional Paid In Capital			162,594		129,986
	Accumulated Other Comprehensive Income			328,918		176,704
	Retained Earnings			5,640,660		5,151,034
	Common Stock Held in Treasury, 4,655,082 Shares at
		June 30, 2007 and 5,724,959 Shares at December 31, 2006		(95,029)		(113,435)
		Total Shareholders' Equity		6,292,589		5,599,671
Total Liabilities and Shareholders' Equity			$	10,524,264	$	9,402,160

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


			Six Months
			Ended June 30,
			2007		2006
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
	Net Income		$	524,720	$	758,124
	Items Not Requiring Cash
		Depreciation, Depletion and Amortization		504,122		370,580
		Impairments		44,846		45,453
		Stock-Based Compensation Expenses		29,542		19,618
		Deferred Income Taxes		223,591		153,552
		Other, Net		(4,912)		(7,485)
	Dry Hole Costs			28,626		25,394
	Mark-to-Market Commodity Derivative Contracts
		Total Gains		(4,302)		(198,046)
		Realized Gains		65,880		93,913
	Other, Net			(3,951)		4,710
	Changes in Components of Working Capital and Other Assets and Liabilities
		Accounts Receivable		20,734		169,350
		Inventories		(2,476)		(35,066)
		Accounts Payable		14,651		(5,225)
		Accrued Taxes Payable		26,191		(11,470)
		Other Assets		(4,683)		28,160
		Other Liabilities		(20,420)		(25,422)
	Changes in Components of Working Capital Associated with
	Investing and Financing Activities			(20,471)		(9,708)
Net Cash Provided by Operating Activities				1,421,688		1,376,432

Investing Cash Flows
	Additions to Oil and Gas Properties			(1,748,483)		(1,189,927)
	Proceeds from Sales of Assets			37,988		14,553
	Changes in Components of Working Capital Associated with
	Investing Activities			20,412		9,742
	Other, Net			(32,114)		(14,256)
Net Cash Used in Investing Activities				(1,722,197)		(1,179,888)

Financing Cash Flows
	Net Commercial Paper and Revolving Credit Facility Borrowings			180,400		10,000
	Long-Term Debt Repayments			(30,000)		(102,550)
	Dividends Paid			(38,370)		(27,712)
	Excess Tax Benefits from Stock-Based Compensation Expenses			11,122		20,841
	Proceeds from Stock Options Exercised and Employee Stock Purchase Plan			14,089		11,143
	Other, Net			(194)		(214)
Net Cash Provided by (Used in) Financing Activities				137,047		(88,492)

Effect of Exchange Rate Changes on Cash				3,741		7,245

(Decrease) Increase in Cash and Cash Equivalents				(159,721)		115,297
Cash and Cash Equivalents at Beginning of Period				218,255		643,811
Cash and Cash Equivalents at End of Period			$	58,534	$	759,108

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 six-month periods ended June 30 reported Net Income Available to Common to reflect actual cash realized from oil and gas hedges by eliminating the unrealized mark-to-market gains from these transactions, to add the one-time tax expense related to Texas (US) franchise tax law revision in the second quarter of 2006 and to eliminate tax benefits related to the Alberta (Canada) provincial tax rate reduction and Canadian federal tax rate reduction in the second quarter of 2006. 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				Six Months
		Ended June 30,				Ended June 30,
		2007		2006		2007		2006

Reported Net Income Available to Common (GAAP)		$	306,063	$	329,559	$	522,855	$	754,408

Mark-to-Market (MTM) Commodity Derivative Contracts Impact
	Total Gains		(44,103)		(91,022)		(4,302)		(198,046)
	Realized Gains		18,613		63,859		65,880		93,913
	Subtotal		(25,490)		(27,163)		61,578		(104,133)

	After Tax MTM Impact		(16,403)		(17,479)		39,625		(67,010)

Add: Tax Expense Related to Texas (US) Franchise Tax Law Revision			-		5,221		-		5,221
Less: Tax Benefit Related to Alberta (Canada) Provincial Tax
	Rate Reduction		-		(13,449)		-		(13,449)
Less: Tax Benefit Related to Canadian Federal Tax Rate Reduction			-		(18,593)		-		(18,593)


Adjusted Net Income Available to Common (Non-GAAP)		$	289,660	$	285,259	$	562,480	$	660,577

Adjusted Net Income Per Share Available to Common (Non-GAAP)
	Basic	$	1.19	$	1.18	$	2.31	$	2.74
	Diluted	$	1.17	$	1.16	$	2.28	$	2.69

Average Number of Common Shares
	Basic		243,227		241,613		242,976		241,370
	Diluted		247,261		245,887		247,009		245,827

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 six-month periods ended June 30 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 (excluding Stock-Based Compensation Expenses), Changes in Components of Working Capital, Other Assets and Liabilities and Preferred Stock Dividends. EOG management uses this information for comparative purposes within the industry.

			Quarter					Six Months
			Ended June 30,				Ended June 30,
			2007		2006			2007		2006
Net Cash Provided by Operating Activities (GAAP)			$	723,208	$	589,665	$	1,421,688	$	1,376,432

Adjustments
	Exploration Costs (excluding Stock-Based Compensation Expenses)			38,230		32,995		61,574		70,660
	Changes in Components of Working Capital and Other Assets and Liabilities
		Accounts Receivable		2,201		(34,200)		(20,734)		(169,350)
		Inventories		(6,368)		21,696		2,476		35,066
		Accounts Payable		8,780		(4,310)		(14,651)		5,225
		Accrued Taxes Payable		(24,224)		40,768		(26,191)		11,470
		Other Assets		1,060		(20,775)		4,683		(28,160)
		Other Liabilities		6,064		20,376		20,420		25,422
	Changes in Components of Working Capital Associated
	with Investing and Financing Activities			(12,223)		(23,479)		20,471		9,708
	Preferred Stock Dividends			(990)		(1,858)		(1,865)		(3,716)

Discretionary Cash Flow Available to Common (Non-GAAP)			$	735,738	$	620,878	$	1,467,871	$	1,332,757