Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

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 years ended December 31, 2023, 2022 and 2021 were as follows (in millions):

	2023		2022		2021
Operating Lease Cost	$	387	$	282	$	295
Finance Lease Cost:
Amortization of Lease Assets	33		36		39
Interest on Lease Liabilities	5		6		7
Variable Lease Cost	91		71		63
Short-Term Lease Cost	567		425		257
Total Lease Cost	$	1,083	$	820	$	661

The following table sets forth the amounts and classification of EOG's outstanding ROU assets and related lease liabilities at December 31, 2023 and 2022 and supplemental information for the years ended December 31, 2023 and 2022 (in millions, except lease terms and discount rates):

Description	Location on Balance Sheet	2023		2022
Assets
Operating Leases	Other Assets	$	974	$	846
Finance Leases	Property, Plant and Equipment, Net (1)	170		203
Total		$	1,144	$	1,049
Liabilities
Current
Operating Leases	Current Portion of Operating Lease Liabilities	$	325	$	296
Finance Leases	Current Portion of Long-Term Debt	34		33
Long-Term
Operating Leases	Other Liabilities	676		584
Finance Leases	Long-Term Debt	149		182
Total		$	1,184	$	1,095

(1)    Finance lease assets are recorded net of accumulated amortization of $190 million and $157 million at December 31, 2023 and 2022, respectively.

	2023		2022
Weighted Average Remaining Lease Term (in years):
Operating Leases	5.3		4.9
Finance Leases	5.5		6.5
Weighted Average Discount Rate:
Operating Leases	4.3	%	3.4	%
Finance Leases	2.6	%	2.6	%

Cash paid for leases for the years ended December 31, 2023, 2022 and 2021 was as follows (in millions):

	2023		2022		2021
Repayment of Operating Lease Liabilities Associated with Operating Activities	$	226	$	199	$	207
Repayment of Operating Lease Liabilities Associated with Investing Activities	172		95		98
Repayment of Finance Lease Liabilities	32		35		37

Non-cash leasing activities for the year ended December 31, 2023, included the additions of $727 million of operating leases and no finance leases. Non-cash leasing activities for the year ended December 31, 2022, included the additions of $511 million of operating leases and no finance leases. Non-cash leasing activities for the year ended December 31, 2021, included the additions of $333 million of operating leases and $74 million of finance leases.

At December 31, 2023, the future minimum lease payments under non-cancellable leases were as follows (in millions):

	Operating Leases		Finance Leases
2024	$	363	$	37
2025	213		35
2026	129		30
2027	100		30
2028	99		30
2029 and beyond	222		35
Total Lease Payments	1,126		197
Less: Discount to Present Value	125		14
Total Lease Liabilities	1,001		183
Less: Current Portion of Lease Liabilities	325		34
Long-Term Lease Liabilities	$	676	$	149

At December 31, 2023, EOG had additional minimum lease payments of $350 million, which are expected to commence beginning in 2024 with lease terms of two to ten years.

Leases

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 years ended December 31, 2023, 2022 and 2021 were as follows (in millions):

	2023		2022		2021
Operating Lease Cost	$	387	$	282	$	295
Finance Lease Cost:
Amortization of Lease Assets	33		36		39
Interest on Lease Liabilities	5		6		7
Variable Lease Cost	91		71		63
Short-Term Lease Cost	567		425		257
Total Lease Cost	$	1,083	$	820	$	661

The following table sets forth the amounts and classification of EOG's outstanding ROU assets and related lease liabilities at December 31, 2023 and 2022 and supplemental information for the years ended December 31, 2023 and 2022 (in millions, except lease terms and discount rates):

Description	Location on Balance Sheet	2023		2022
Assets
Operating Leases	Other Assets	$	974	$	846
Finance Leases	Property, Plant and Equipment, Net (1)	170		203
Total		$	1,144	$	1,049
Liabilities
Current
Operating Leases	Current Portion of Operating Lease Liabilities	$	325	$	296
Finance Leases	Current Portion of Long-Term Debt	34		33
Long-Term
Operating Leases	Other Liabilities	676		584
Finance Leases	Long-Term Debt	149		182
Total		$	1,184	$	1,095

(1)    Finance lease assets are recorded net of accumulated amortization of $190 million and $157 million at December 31, 2023 and 2022, respectively.

	2023		2022
Weighted Average Remaining Lease Term (in years):
Operating Leases	5.3		4.9
Finance Leases	5.5		6.5
Weighted Average Discount Rate:
Operating Leases	4.3	%	3.4	%
Finance Leases	2.6	%	2.6	%

Cash paid for leases for the years ended December 31, 2023, 2022 and 2021 was as follows (in millions):

	2023		2022		2021
Repayment of Operating Lease Liabilities Associated with Operating Activities	$	226	$	199	$	207
Repayment of Operating Lease Liabilities Associated with Investing Activities	172		95		98
Repayment of Finance Lease Liabilities	32		35		37

Non-cash leasing activities for the year ended December 31, 2023, included the additions of $727 million of operating leases and no finance leases. Non-cash leasing activities for the year ended December 31, 2022, included the additions of $511 million of operating leases and no finance leases. Non-cash leasing activities for the year ended December 31, 2021, included the additions of $333 million of operating leases and $74 million of finance leases.

At December 31, 2023, the future minimum lease payments under non-cancellable leases were as follows (in millions):

	Operating Leases		Finance Leases
2024	$	363	$	37
2025	213		35
2026	129		30
2027	100		30
2028	99		30
2029 and beyond	222		35
Total Lease Payments	1,126		197
Less: Discount to Present Value	125		14
Total Lease Liabilities	1,001		183
Less: Current Portion of Lease Liabilities	325		34
Long-Term Lease Liabilities	$	676	$	149

At December 31, 2023, EOG had additional minimum lease payments of $350 million, which are expected to commence beginning in 2024 with lease terms of two to ten years.