Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The principal components of EOG's total net deferred income tax liabilities at December 31, 2020 and 2019 were as follows (in thousands):


	2020		2019
Deferred Income Tax Assets (Liabilities)
Foreign Oil and Gas Exploration and Development Costs Deducted for Tax Under Book Depreciation, Depletion and Amortization	$	25,129	$	5,825
Foreign Net Operating Loss	74,280		66,675
Foreign Valuation Allowances	(97,499)		(70,455)
Foreign Other	217		318
Total Net Deferred Income Tax Assets	$	2,127	$	2,363
Deferred Income Tax (Assets) Liabilities
Oil and Gas Exploration and Development Costs Deducted for Tax Over Book Depreciation, Depletion and Amortization	$	5,028,010	$	5,277,550
Commodity Hedging Contracts	14,518		(4,699)
Deferred Compensation Plans	(42,594)		(47,650)
Accrued Expenses and Liabilities	—		(8,502)
Equity Awards	(102,944)		(108,324)
Alternative Minimum Tax Credit Carryforward	—		(31,904)
Undistributed Foreign Earnings	9,843		15,746
Other	(47,506)		(46,116)
Total Net Deferred Income Tax Liabilities	$	4,859,327	$	5,046,101
Total Net Deferred Income Tax Liabilities	$	4,857,200	$	5,043,738

Components of Income (Loss) Before Income Taxes

The components of Income (Loss) Before Income Taxes for the years indicated below were as follows (in thousands):


	2020		2019		2018

United States	$	(756,479)	$	3,466,578	$	4,084,156
Foreign	17,425		78,689		156,842
Total	$	(739,054)	$	3,545,267	$	4,240,998

Components of Income Tax Provision (Benefit)

The principal components of EOG's Income Tax Provision (Benefit) for the years indicated below were as follows (in thousands):


	2020		2019		2018
Current:
Federal	$	(107,834)	$	(152,258)	$	(303,853)
State	6,790		10,819		17,048
Foreign	40,248		81,426		65,615
Total	(60,796)		(60,013)		(221,190)
Deferred:
Federal	(153,027)		626,901		862,075
State	(15,400)		32,541		43,293
Foreign	(17,963)		(27,784)		(11,212)
Total	(186,390)		631,658		894,156
Other Non-Current: (1)
Federal	112,704		245,125		148,992
Foreign	—		(6,413)		—
Total	112,704		238,712		148,992

Income Tax Provision (Benefit)	$	(134,482)	$	810,357	$	821,958

(1) Includes changes in certain amounts that are expected to be paid or received beyond the next twelve months. The primary component is refundable alternative minimum tax (AMT) credits.

Tax Rate Reconciliation

The differences between taxes computed at the U.S. federal statutory tax rate and EOG's effective rate for the years indicated below were as follows:


	2020		2019		2018
Statutory Federal Income Tax Rate	21.00	%	21.00	%	21.00	%
State Income Tax, Net of Federal Benefit	0.92		0.97		1.12
Income Tax Provision Related to Foreign Operations	(0.09)		0.87		0.51
Income Tax Provision Related to Canadian Operations	(2.43)		—		—
TCJA (1)	—		—		(2.60)		(2)
Share-Based Compensation	(2.94)		0.02		(0.47)
Other	1.74		—		(0.18)
Effective Income Tax Rate	18.20	%	22.86	%	19.38	%

(1) The Tax Cuts and Jobs Act (TCJA) was enacted in 2017 and required certain measurement-period adjustments in 2018.

(2) Includes impact of utilizing certain tax net operating losses (NOLs) ((1.2)%), the reversal of the federal sequestration charge ((1.0)%) and other TCJA impacts ((0.4)%).

Summary of Valuation Allowance

The principal components of EOG's rollforward of valuation allowances for deferred income tax assets for the years indicated below were as follows (in thousands):


	2020		2019		2018

Beginning Balance	$	200,831	$	167,142	$	466,421
Increase (1)	25,573		30,673		23,062
Decrease (2)	(11,343)		(75)		(26,219)
Other (3)	3,942		3,091		(296,122)
Ending Balance	$	219,003	$	200,831	$	167,142

(1) Increase in valuation allowance related to the generation of tax NOLs and other deferred tax assets.

(2) Decrease in valuation allowance associated with adjustments to certain deferred tax assets and their related allowances.

(3) Represents dispositions, revisions and/or foreign exchange rate variances and the effect of statutory income tax rate changes. The United Kingdom operations were sold in the fourth quarter of 2018.