Acquisitions and Divestitures

3 Months Ended

Mar. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Divestitures [Text Block]

Acquisitions and Divestitures

Yates Entities. On October 4, 2016, EOG completed its previously announced mergers and related asset purchase transactions with Yates Petroleum Corporation (YPC), Abo Petroleum Corporation (ABO), MYCO Industries, Inc. (MYCO) and certain affiliated entities (collectively with YPC, ABO and MYCO, the Yates Entities). For a further discussion of these transactions, refer to Note 17 to the Consolidated Financial Statements in EOG's 2016 Annual Report. The assets of the Yates Entities include producing wells in addition to acreage in the Delaware Basin Core, the Powder River Basin, the Permian Basin Northwest Shelf and other Western basins.

EOG accounted for the mergers with YPC, ABO and MYCO and the related asset purchase transactions as a business combination under the acquisition method with EOG as the acquirer. Under the acquisition method, the consideration transferred is allocated to the assets acquired and liabilities assumed based on their estimated fair values, with any excess of the consideration transferred over the estimated fair value of the identifiable net assets acquired recorded as goodwill. EOG did not record goodwill in connection with these transactions.

There were no changes during the three months ended March 31, 2017, to the preliminary purchase price allocation. Certain data necessary to complete the purchase price allocation is preliminary, and includes, but is not limited to, the final valuations of oil and gas properties, the valuation of off-market transportation contracts and the calculation of deferred taxes based upon the underlying tax basis of assets acquired and liabilities assumed. EOG believes the estimates used are reasonable but are subject to change as additional information becomes available.

Other. During the three months ended March 31, 2017, EOG recognized a net loss on asset dispositions of $17 million and received proceeds of approximately $47 million primarily from the sale of other property, plant and equipment in Texas. Additionally, in the first quarter of 2017, EOG signed purchase and sale agreements for the sale of certain properties in the United States. At March 31, 2017, the book value of these proved oil and gas properties and other property, plant and equipment held for sale and the related asset retirement obligations were $88 million and $13 million, respectively. During the three months ended March 31, 2016, EOG recognized a net gain on asset dispositions of $9 million and received proceeds of approximately $7 million.