EX-99 2 exh99.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 ANNOUNCES THIRD QUARTER 2008 RESULTS

Third Quarter United States Crude Oil and Condensate Production Increases By 65 Percent Year-Over-Year
On Track to Achieve 15 Percent Total Company Production Increase in 2008
Targets 2009 Total Company Organic Production Growth of 10 to 14 Percent
Projects 43 Percent Increase in Total Company Crude Oil and Condensate Production in 2009

FOR IMMEDIATE RELEASE: Monday, November 3, 2008

HOUSTON - EOG Resources, Inc. (EOG) today reported third quarter 2008 net income available to common stockholders of $1,556.3 million, or $6.20 per share. This compares to third quarter 2007 net income available to common stockholders of $202.4 million, or $0.82 per share.

The results for the third quarter 2008 included a previously disclosed $1,381.7 million ($889.2 million after tax, or $3.55 per share) gain on the mark-to-market of financial commodity transactions. During the quarter, the net cash outflow related to financial commodity contracts was $122.5 million ($78.8 million after tax, or $0.31 per share). Consistent with some analysts' practice of matching realizations to settlement months, adjusted non-GAAP net income available to common stockholders for the quarter was $588.3 million, or $2.34 per share. Adjusted non-GAAP net income available to common stockholders for the third quarter 2007 was $195.7 million, or $0.79 per share. (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income available to common stockholders to GAAP net income available to common stockholders.)

Operational Highlights

Excellent results from North American operations continue to position EOG to achieve its 2008 production goals set forth in February of this year. Despite plant downtime and hurricane interruptions, the company is on track to increase its 2008 total company production by 15 percent over 2007.

EOG's United States crude oil and condensate production increased 65 percent versus the third quarter 2007, led primarily by results from strong wells in the North Dakota Bakken. Condensate rich natural gas production from Johnson County and the western counties of the Fort Worth Basin Barnett Shale Play also contributed to the increased liquids production in the United States.

Currently, EOG is operating an eight rig program in the North Dakota Bakken with seven rigs running in the Parshall Field and one drilling step-out wells. Among the most prolific wells EOG drilled in the Bakken core area during the third quarter were the Austin #21-28H, #18-21H and #10-34H. The wells, in which EOG holds a 66, 100 and 70 percent working interest, respectively, posted corresponding peak gross production rates of 2,847, 3,029 and 3,477 barrels of oil per day.

In the Fort Worth Basin Barnett Shale Play, EOG continues to make improvements to individual well production rates and reserve recoveries. During the third quarter, EOG drilled and completed a pattern of four horizontal wells in northeastern Johnson County. The Little Buddy Units #3H, #5H, #6H and #7H began initial production in October at individual rates ranging from 6.5 to 10 million cubic feet per day (MMcfd) of natural gas, gross. EOG has an average 81 percent working interest in these wells. Also in Johnson County, the Raam Unit #4H, in which EOG has 100 percent working interest, began initial production at over 8.5 MMcfd.

In July, EOG brought its first two wells to sales in British Columbia's Horn River Basin natural gas play where the company holds approximately 150,000 net acres. Since then, EOG has drilled and completed three horizontal wells, which had initial production rates of 16, 12 and 9 MMcfd, respectively. EOG has a 100 percent working interest in the wells, which continue to produce at strong rates after being on-line for 30 to 60 days.

"EOG hit its volume targets again this quarter because of the inherent strength of our drilling inventory, not only in the North Dakota Bakken and Fort Worth Basin Barnett Shale, but across our North American operations," said Mark G. Papa, Chairman and CEO. "Our year-to-date results reflect EOG's technological expertise with regard to implementing drilling and well completion enhancements that give us an economic advantage in geologically challenging plays even during periods of low hydrocarbon prices. Our results in the Bakken and Barnett plays demonstrate the high quality completion results that EOG is achieving."

2009 Operational Plans and Targets

EOG is targeting 2009 total company production growth ranging from 10 to 14 percent, depending upon North American natural gas prices. Production growth in 2009 is expected to be driven by high reinvestment rate of return opportunities in the United States, particularly the Fort Worth Basin Barnett Shale and the North Dakota Bakken. Natural gas production from Canada, Trinidad and other international areas in 2009 is projected to remain relatively flat with 2008 production levels.

EOG is approaching its 2009 natural gas drilling and capital expenditure program with two alternate production growth targets, one more robust than the other.

"We believe that cold winter weather - or lack of it - will be the determining factor of North American natural gas prices in 2009. If Henry Hub prices average above $8.00, we will target 14 percent total company production growth. However, if prices average $7.00, we expect to reduce our North American natural gas drilling activity and achieve an overall 10 percent production increase. In either case, our focus is on the balance sheet and our commitment to low debt ratios. We anticipate that total company crude oil and condensate production will increase 43 percent in 2009 over 2008 driven primarily by the North Dakota Bakken with a lesser contribution from our Barnett oil and other plays," said Papa.

"Based on EOG's projected 2009 activity level and our strong prospect inventory, we have confidence that EOG can achieve double-digit organic production growth with attractive reinvestment rates of return. In these uncertain times, the consistency of our long-term strategy and focus on ROCE and the balance sheet is paying off. Although we have abundant opportunities, EOG's goal remains the same: to pursue a high rate of return drilling program with a low unit cost structure while maintaining flat year-end net debt year over year."

Capital Structure

At September 30, 2008, EOG's total debt outstanding was $1,897 million for a debt-to-total capitalization ratio of 18 percent. Taking into account cash on the balance sheet of $886 million, at the end of the third quarter EOG's net debt was $1,011 million and the net debt-to-total capitalization ratio was 10 percent, down from 14 percent at year-end 2007. (Please refer to the attached tables for the reconciliation of net debt (non-GAAP) to current and long-term debt (GAAP) and the reconciliation of net debt-to-total capitalization ratio (non-GAAP) to debt-to-total capitalization ratio (GAAP).)

"With the recent issuance of our long-term notes of $750 million, essentially all of EOG's debt is termed up and we have minimized our short-term credit needs. Combined with our investment grade 'A' credit ratings category and conservative financials, EOG's capital structure remains in excellent shape. Because maintaining a low net debt-to-total capitalization ratio is a key strategy for EOG, we will manage our capital expenditures accordingly," said Papa.

Conference Call Scheduled for November 4, 2008

EOG's third quarter 2008 results conference call will be available via live audio webcast at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) on Tuesday, November 4, 2008. To listen, log on to www.eogresources.com. The webcast will be archived on EOG's website through Tuesday, November 18, 2008.

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, Trinidad, the United Kingdom North Sea and China. 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 or 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 the expectations reflected in its 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 EOG's 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, including environmental 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 may not occur. EOG's 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, 2007, available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report 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				Nine Months
			Ended September 30,				Ended September 30,
			2008		2007		2008		2007
Net Operating Revenues			$	3,219.5	$	986.2	$	5,353.0	$	2,925.9
Net Income Available to Common Stockholders			$	1,556.3	$	202.4	$	1,975.0	$	725.2
Net Income Per Share Available to Common Stockholders
	Basic		$	6.30	$	0.83	$	8.02	$	2.98
	Diluted		$	6.20	$	0.82	$	7.88	$	2.93
Average Number of Shares Outstanding
	Basic			247.2		243.5		246.3		243.1
	Diluted			250.9		247.4		250.8		247.3


SUMMARY INCOME STATEMENTS
(Unaudited; in thousands)


			Quarter				Nine Months
			Ended September 30,				Ended September 30,
			2008		2007		2008		2007
Net Operating Revenues
	Natural Gas		$	1,259,130	$	679,992	$	3,637,325	$	2,196,290
	Crude Oil, Condensate and Natural Gas Liquids			574,402		258,273		1,494,043		651,833
	Gains on Mark-to-Market Commodity Derivative Contracts			1,381,733		43,591		69,067		47,893
	Other, Net			4,241		4,307		152,570		29,871
		Total		3,219,506		986,163		5,353,005		2,925,887
Operating Expenses
	Lease and Well			151,342		120,091		422,679		347,604
	Transportation Costs			78,136		39,913		203,205		109,452
	Exploration Costs			37,943		38,840		145,397		106,440
	Dry Hole Costs			12,849		46,046		28,062		74,672
	Impairments			32,142		42,014		113,591		86,860
	Depreciation, Depletion and Amortization			346,247		279,189		958,740		783,311
	General and Administrative			70,893		48,101		185,459		139,163
	Taxes Other Than Income			97,771		47,111		279,866		149,806
		Total		827,323		661,305		2,336,999		1,797,308

Operating Income				2,392,183		324,858		3,016,006		1,128,579

Other Income, Net				13,864		6,311		28,756		22,236

Income Before Interest Expense and Income Taxes				2,406,047		331,169		3,044,762		1,150,815

Interest Expense, Net				12,095		12,571		33,315		31,027

Income Before Income Taxes				2,393,952		318,598		3,011,447		1,119,788

Income Tax Provision				837,667		114,595		1,036,000		391,065

Net Income				1,556,285		204,003		1,975,447		728,723

Preferred Stock Dividends				-		1,637		443		3,502

Net Income Available to Common Stockholders			$	1,556,285	$	202,366	$	1,975,004	$	725,221

EOG RESOURCES, INC.
OPERATING HIGHLIGHTS
(Unaudited)

			Quarter				Nine Months
			Ended September 30,				Ended September 30,
			2008		2007		2008		2007
Wellhead Volumes and Prices

Natural Gas Volumes (MMcfd) ^(A)
	United States			1,196		997		1,141		958
	Canada			224		216		218		223
	Trinidad			240		262		229		255
	Other International ^(D)			19		22		16		25
		Total		1,679		1,497		1,604		1,461

Average Natural Gas Prices ($/Mcf) ^(B)
	United States		$	8.99	$	5.52	$	9.15	$	6.19
	Canada			8.15		5.49		8.33		6.22
	Trinidad			4.04		2.20		3.86		2.35
	Other International ^(D)			7.41		5.89		8.90		5.29
		Composite		8.15		4.94		8.28		5.51

Crude Oil and Condensate Volumes (MBbld) ^(A)
	United States			41.8		25.3		35.9		23.6
	Canada			3.0		2.4		2.7		2.4
	Trinidad			3.4		4.2		3.4		4.2
	Other International ^(D)			0.1		0.1		0.1		0.1
		Total		48.3		32.0		42.1		30.3

Average Crude Oil and Condensate Prices ($/Bbl)^(B)
	United States		$	109.86	$	70.86	$	107.36	$	62.52
	Canada			109.71		69.99		104.57		60.54
	Trinidad			111.39		67.03		103.80		67.22
	Other International ^(D)			112.77		66.96		104.66		61.57
		Composite		109.96		70.27		106.89		63.01

Natural Gas Liquids Volumes (MBbld) ^(A)
	United States			13.2		10.8		14.7		10.3
	Canada			1.1		0.9		1.0		1.0
		Total		14.3		11.7		15.7		11.3

Average Natural Gas Liquids Prices ($/Bbl)^(B)
	United States		$	69.79	$	47.94	$	63.08	$	43.73
	Canada			64.01		46.71		62.45		41.52
		Composite		69.33		47.84		63.04		43.52

Natural Gas Equivalent Volumes (MMcfed)^(C)
	United States			1,525		1,213		1,445		1,161
	Canada			249		236		240		244
	Trinidad			261		288		250		280
	Other International ^(D)			20		22		16		25
		Total		2,055		1,759		1,951		1,710

Total Bcfe ^(C)				189.1		161.9		534.5		466.8

(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.
(D)	Other International includes EOG's United Kingdom and China operations.

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


				September 30,		December 31,
				2008		2007

ASSETS
Current Assets
	Cash and Cash Equivalents		$	885,977	$	54,231
	Accounts Receivable, Net			1,048,385		835,670
	Inventories			146,571		102,322
	Assets from Price Risk Management Activities			317,994		100,912
	Income Taxes Receivable			8,789		110,370
	Deferred Income Taxes			-		33,533
	Other			68,801		55,001
	Total			2,476,517		1,292,039

Property, Plant and Equipment
	Oil and Gas Properties (Successful Efforts Method)			20,216,168		16,981,836
	Other Property, Plant and Equipment			901,209		581,402
				21,117,377		17,563,238
	Less: Accumulated Depreciation, Depletion and Amortization			(7,985,007)		(7,133,984)
	Total Property, Plant and Equipment, Net			13,132,370		10,429,254
Long-Term Assets Held for Sale				-		254,376
Other Assets				223,843		113,238
Total Assets			$	15,832,730	$	12,088,907

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
	Accounts Payable		$	1,340,822	$	1,152,140
	Accrued Taxes Payable			136,254		104,647
	Dividends Payable			33,325		22,045
	Liabilities from Price Risk Management Activities			118		3,404
	Deferred Income Taxes			200,118		108,980
	Current Portion of Long-Term Debt			37,000		-
	Other			85,443		82,954
	Total			1,833,080		1,474,170


Long-Term Debt				1,860,000		1,185,000
Other Liabilities				512,006		368,336
Deferred Income Taxes				2,707,684		2,071,307

Stockholders' Equity
	Preferred Stock, $0.01 Par, 10,000,000 Shares Authorized:
		Series B, Cumulative, $1,000 Liquidation Preference per Share,
		5,000 Shares Outstanding at December 31, 2007		-		4,977
Common Stock, $0.01 Par, 640,000,000 Shares Authorized:
		249,752,807 Shares Issued at September 30, 2008 and
		249,460,000 Shares Issued at December 31, 2007		202,498		202,495
	Additional Paid In Capital			369,128		221,102
	Accumulated Other Comprehensive Income			314,982		466,702
	Retained Earnings			8,038,477		6,156,721
	Common Stock Held in Treasury, 168,395 Shares at
		September 30, 2008 and 2,935,313 Shares at December 31, 2007		(5,125)		(61,903)
		Total Stockholders' Equity		8,919,960		6,990,094
Total Liabilities and Stockholders' Equity			$	15,832,730	$	12,088,907

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

			Nine Months
			Ended September 30,
			2008		2007
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
	Net Income		$	1,975,447	$	728,723
	Items Not Requiring (Providing) Cash
		Depreciation, Depletion and Amortization		958,740		783,311
		Impairments		113,591		86,860
		Stock-Based Compensation Expenses		76,344		46,732
		Deferred Income Taxes		790,699		328,005
		Other, Net		(135,325)		(21,080)
	Dry Hole Costs			28,062		74,672
	Mark-to-Market Commodity Derivative Contracts
		Total Gains		(69,067)		(47,893)
		Realized (Losses) Gains		(237,326)		99,188
	Other, Net			14,390		20,778
	Changes in Components of Working Capital and Other Assets and Liabilities
		Accounts Receivable		(219,947)		78,283
		Inventories		(45,354)		4,232
		Accounts Payable		221,449		42,830
		Accrued Taxes Payable		135,747		(22,834)
		Other Assets		(18,756)		(7,780)
		Other Liabilities		(3,397)		2,732
	Changes in Components of Working Capital Associated with
	Investing and Financing Activities			14,389		(44,314)
Net Cash Provided by Operating Activities				3,599,686		2,152,445

Investing Cash Flows
	Additions to Oil and Gas Properties			(3,532,343)		(2,472,902)
	Additions to Other Property, Plant and Equipment			(320,699)		(204,000)
	Proceeds from Sales of Assets			369,669		43,972
	Changes in Components of Working Capital Associated with
	Investing Activities			(14,501)		44,325
	Other, Net			(1,316)		(3,966)
Net Cash Used in Investing Activities				(3,499,190)		(2,592,571)

Financing Cash Flows
	Long-Term Debt Borrowings			750,000		610,000
	Long-Term Debt Repayments			(38,000)		(60,000)
	Dividends Paid			(81,453)		(61,253)
	Redemptions of Preferred Stock			(5,395)		(10,641)
	Excess Tax Benefits from Stock-Based Compensation			69,824		17,422
	Treasury Stock Purchased			(11,266)		(6,497)
	Proceeds from Stock Options Exercised and Employee Stock Purchase Plan			67,414		32,747
	Debt Issuance Costs			(6,704)		(4,752)
	Other, Net			112		(11)
Net Cash Provided by Financing Activities				744,532		517,015

Effect of Exchange Rate Changes on Cash				(13,282)		6,800

Increase in Cash and Cash Equivalents				831,746		83,689
Cash and Cash Equivalents at Beginning of Period				54,231		218,255
Cash and Cash Equivalents at End of Period			$	885,977	$	301,944

EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (Non-GAAP)
TO NET INCOME AVAILABLE TO COMMON STOCKHOLDERS (GAAP)
(Unaudited; in thousands, except per share data)


The following chart adjusts three-month and nine-month periods ended September 30 reported Net Income Available to Common Stockholders (GAAP) to reflect actual net cash realized from financial commodity price transactions by eliminating the unrealized mark-to-market (gains) losses from these transactions and for the gain on the sale of Appalachian assets. 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				Nine Months
		Ended September 30,				Ended September 30,
		2008		2007		2008		2007

Reported Net Income Available to Common Stockholders (GAAP)		$	1,556,285	$	202,366	$	1,975,004	$	725,221

Mark-to-Market (MTM) Commodity Derivative Contracts Impact
	Total Gains		(1,381,733)		(43,591)		(69,067)		(47,893)
	Realized (Losses) Gains		(122,467)		33,308		(237,326)		99,188
	Subtotal		(1,504,200)		(10,283)		(306,393)		51,295

	After Tax MTM Impact		(967,953)		(6,617)		(197,164)		33,008

Less: Gain on Sale of Appalachian Assets, Net of Tax			-		-		(84,748)		-

Adjusted Net Income Available to Common Stockholders (Non-GAAP)		$	588,332	$	195,749	$	1,693,092	$	758,229

Net Income Per Share Available to Common Stockholders (GAAP)
	Basic	$	6.30	$	0.83	$	8.02	$	2.98
	Diluted	$	6.20	$	0.82	$	7.88	$	2.93

Adjusted Net Income Per Share Available to Common Stockholders (Non-GAAP)
	Basic	$	2.38	$	0.80	$	6.87	$	3.12
	Diluted	$	2.34	$	0.79	$	6.75	$	3.07

Average Number of Shares Outstanding
	Basic		247,155		243,486		246,343		243,140
	Diluted		250,930		247,425		250,765		247,275

EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF DISCRETIONARY CASH FLOW AVAILABLE TO COMMON STOCKHOLDERS (Non-GAAP)
TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)
(Unaudited; in thousands)

The following chart reconciles three-month and nine-month periods ended September 30 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow Available to Common Stockholders (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 and Other Assets and Liabilities, Changes in Components of Working Capital Associated with Investing and Financing Activities and Preferred Stock Dividends. EOG management uses this information for comparative purposes within the industry.

			Quarter				Nine Months
			Ended September 30,				Ended September 30,
			2008		2007		2008		2007
Net Cash Provided by Operating Activities (GAAP)			$	1,537,065	$	725,829	$	3,599,686	$	2,152,445

Adjustments
	Exploration Costs (excluding Stock-Based Compensation Expenses)			32,818		35,268		131,909		96,842
	Changes in Components of Working Capital and Other Assets and Liabilities
		Accounts Receivable		(175,579)		(57,549)		219,947		(78,283)
		Inventories		36,178		(6,708)		45,354		(4,232)
		Accounts Payable		34,046		(28,179)		(221,449)		(42,830)
		Accrued Taxes Payable		(228,485)		49,025		(135,747)		22,834
		Other Assets		(42,867)		3,097		18,756		7,780
		Other Liabilities		(5,043)		(18,224)		3,397		(2,732)
	Changes in Components of Working Capital Associated
	with Investing and Financing Activities			(15,164)		23,843		(14,389)		44,314
	Preferred Stock Dividends			-		(1,637)		(443)		(3,502)

Discretionary Cash Flow Available to Common Stockholders (Non-GAAP)			$	1,172,969	$	724,765	$	3,647,021	$	2,192,636

EOG RESOURCES, INC.
QUANTITATIVE RECONCILIATION OF NET DEBT (Non-GAAP) AND TOTAL
CAPITALIZATION (Non-GAAP) AS USED IN THE CALCULATION OF
THE NET DEBT-TO-TOTAL CAPITALIZATION RATIO
TO CURRENT AND LONG-TERM DEBT (GAAP) AND TOTAL CAPITALIZATION (GAAP)
(Unaudited; in millions, except ratio information)

The following chart reconciles Current and Long-Term Debt (GAAP) to Net Debt (Non-GAAP) and Total Capitalization (GAAP) to Total Capitalization (Non-GAAP), as used in the Net Debt-to-Total Capitalization ratio calculation. A portion of the cash is associated with international subsidiaries; tax considerations may impact debt paydown. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who utilize Net Debt in their Net Debt-to-Total Capitalization ratio calculation. EOG management uses this information for comparative purposes within the industry.



			09/30/2008		12/31/2007

	Total Stockholders' Equity (GAAP) - (a)	$	8,920	$	6,990

	Current and Long-Term Debt (GAAP) - (b)		1,897		1,185
	Less: Cash (GAAP)		(886)		(54)
	Net Debt (Non-GAAP) - (c)		1,011		1,131

	Total Capitalization (Non-GAAP) - (a) + (c)	$	9,931	$	8,121

	Total Capitalization (GAAP) - (a) + (b)	$	10,817	$	8,175

	Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]		10%		14%

	Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]		18%		14%