Leases (Notes)

12 Months Ended

Dec. 31, 2019

Lessee Operating and Finance Leases [Text Block]

Leases

Lease costs are classified by the function of the ROU asset. The lease costs related to exploration and development activities are initially included in the Oil and Gas Properties line on the Consolidated Balance Sheets and subsequently accounted for in accordance with the Extractive Industries - Oil and Gas Topic of the ASC. Variable lease cost represents costs incurred above the contractual minimum payments and other charges associated with leased equipment, primarily for drilling and fracturing contracts classified as operating leases. The components of lease cost for the year ended December 31, 2019, were as follows (in millions):



	Year Ended December 31, 2019
Operating Lease Cost	$	497
Finance Lease Cost:
Amortization of Lease Assets	13
Interest on Lease Liabilities	2
Variable Lease Cost	138
Short-Term Lease Cost	333
Total Lease Cost	$	983

The following table sets forth the amounts and classification of EOG's outstanding ROU assets and related lease liabilities and supplemental information at December 31, 2019 (in millions, except lease terms and discount rates):



Description	Location on Balance Sheet	Amount
Assets
Operating Leases	Other Assets	$	773
Finance Leases	Property, Plant and Equipment, Net ⁽¹⁾	53
Total		$	826

Liabilities
Current
Operating Leases	Current Portion of Operating Lease Liabilities	$	369
Finance Leases	Current Portion of Long-Term Debt	15
Long-Term
Operating Leases	Other Liabilities	430
Finance Leases	Long-Term Debt	43
Total		$	857


(1)	Finance lease assets are recorded net of accumulated amortization of $60 million at December 31, 2019.



	Year Ended December 31, 2019
Weighted Average Remaining Lease Term (in years):
Operating Leases	3.2
Finance Leases	4.7

Weighted Average Discount Rate:
Operating Leases	3.5	%
Finance Leases	3.0	%

Cash paid for leases was as follows for the year ended December 31, 2019 (in millions):



	Year Ended December 31, 2019
Repayment of Operating Lease Liabilities Associated with Operating Activities	$	225
Repayment of Operating Lease Liabilities Associated with Investing Activities	270
Repayment of Finance Lease Liabilities	13

Upon adoption of ASU 2016-02 effective January 1, 2019, EOG recognized operating lease ROU assets of $566 million. Non-cash leasing activities for the twelve months ended December 31, 2019, included the addition of $784 million of operating leases.

At December 31, 2019, the future minimum lease payments under non-cancellable leases were as follows (in millions):



	Operating Leases		Finance Leases
2020	$	390	$	15
2021	209		15
2022	126		12
2023	56		8
2024	29		8
2025 and Beyond	40		6
Total Lease Payments	850		64
Less: Discount to Present Value	51		6
Total Lease Liabilities	799		58
Less: Current Portion of Lease Liabilities	369		15
Long-Term Lease Liabilities	$	430	$	43

At December 31, 2019, EOG had additional leases of $699 million, of which $521 million and $178 million were expected to commence in 2020 and 2021, respectively, with lease terms of one month to 10 years.

At December 31, 2018 and prior to the adoption of ASU 2016-02 and other related ASUs, the future minimum commitments under non-cancellable leases, including non-lease components and excluding contracts with lease terms of less than 12 months, were as follows (in millions):



	Operating Leases		Finance Leases
2019	$	380	$	15
2020	213		15
2021	86		15
2022	39		12
2023	30		8
2024 and Beyond	62		14
Total Lease Payments	$	810	$	79