Delaware
(State or other jurisdiction of incorporation) |
1-9743
(Commission File Number) |
47-0684736
(I.R.S. Employer Identification No.) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. |
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EOG RESOURCES, INC.
(Registrant) |
|
|
|
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|
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|
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Date: August 2, 2012
|
By:
|
/s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers Vice President and Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer) |
99.1
|
Press Release of EOG Resources, Inc. dated August 2, 2012 (including the accompanying third quarter and full year 2012 forecast and benchmark commodity pricing information).
|
News Release
|
|
For Further Information Contact:
|
Investors
|
|
Maire A. Baldwin
|
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(713) 651-6EOG (651-6364)
|
|
Elizabeth M. Ivers
|
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(713) 651-7132
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|
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Media
|
|
K Leonard
|
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(713) 571-3870
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·
|
Reports Strong Year-Over-Year Growth in Earnings Per Share, Discretionary Cash Flow and Adjusted EBITDAX
|
·
|
Achieves 52 Percent Crude Oil and Condensate Production Increase and 49 Percent Increase in Total Liquids Production Over Second Quarter 2011
|
·
|
Increases 2012 Total Company Crude Oil Production Growth Target to 37 Percent from 33 Percent and Full Year Total Company Total Liquids Growth Target to 35 Percent from 33 Percent
|
·
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Raises 2012 Total Company Production Growth Target to 9 Percent from 7 Percent with Unchanged 2012 Capital Expenditure Budget
|
·
|
Realizes Premium Crude Oil Prices from Rail Offloading Facility at St. James, Louisiana
|
·
|
Attains New Marketing Opportunities for Eagle Ford Volumes Through Recently Completed Third-Party Crude Oil Pipeline and Natural Gas Processing Plant and Pipelines
|
·
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Delivers Best Crude Oil Well to Date as Solid Execution of Eagle Ford Drilling Program Continues
|
·
|
Sustains Successful Bakken Drilling Program in Core, Antelope Extension and Stateline Areas
|
·
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Closes on $1.1 Billion of Asset Sales through June 30, 2012; Targets $1.2 to $1.25 Billion of Sales for Full Year 2012
|
·
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the timing and extent of changes in prices for, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
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·
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the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
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·
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the extent to which EOG can optimize reserve recovery and economically develop its plays utilizing horizontal and vertical drilling, advanced completion technologies and hydraulic fracturing;
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·
|
the extent to which EOG is successful in its efforts to economically develop its acreage in, and to produce reserves and achieve anticipated production levels from, its existing and future crude oil and natural gas exploration and development projects, given the risks and uncertainties and capital expenditure requirements inherent in drilling, completing and operating crude oil and natural gas wells and the potential for interruptions of development and production, whether involuntary or intentional as a result of market or other conditions;
|
·
|
the extent to which EOG is successful in its efforts to market its crude oil, natural gas and related commodity production;
|
·
|
the availability, proximity and capacity of, and costs associated with, gathering, processing, compression and transportation facilities;
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·
|
the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way;
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·
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the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations, environmental laws and regulations relating to air emissions, waste disposal, hydraulic fracturing and access to and use of water, laws and regulations imposing conditions and restrictions on drilling and completion operations and laws and regulations with respect to derivatives and hedging activities;
|
·
|
EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties;
|
·
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the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
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·
|
competition in the oil and gas exploration and production industry for employees and other personnel, equipment, materials and services and, related thereto, the availability and cost of employees and other personnel, equipment, materials and services;
|
·
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the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
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·
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weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation of production, gathering, processing, compression and transportation facilities;
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·
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the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
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·
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EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
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·
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the extent and effect of any hedging activities engaged in by EOG;
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·
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the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
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·
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political developments around the world, including in the areas in which EOG operates;
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·
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the use of competing energy sources and the development of alternative energy sources;
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·
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the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
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·
|
acts of war and terrorism and responses to these acts; and
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·
|
the other factors described under Item 1A, "Risk Factors," on pages 15 through 23 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
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EOG RESOURCES, INC.
|
||||||||||||||||
FINANCIAL REPORT
|
||||||||||||||||
(Unaudited; in millions, except per share data)
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
||||||||||||||||
Net Operating Revenues
|
$
|
2,909.3
|
$
|
2,570.3
|
$
|
5,716.0
|
$
|
4,467.4
|
||||||||
Net Income
|
$
|
395.8
|
$
|
295.6
|
$
|
719.8
|
$
|
429.5
|
||||||||
Net Income Per Share
|
||||||||||||||||
Basic
|
$
|
1.48
|
$
|
1.11
|
$
|
2.70
|
$
|
1.65
|
||||||||
Diluted
|
$
|
1.47
|
$
|
1.10
|
$
|
2.67
|
$
|
1.63
|
||||||||
Average Number of Common Shares
|
||||||||||||||||
Basic
|
266.9
|
265.8
|
266.7
|
259.8
|
||||||||||||
Diluted
|
270.0
|
269.3
|
270.1
|
263.4
|
SUMMARY INCOME STATEMENTS
|
||||||||||||||||
(Unaudited; in thousands, except per share data)
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Net Operating Revenues
|
||||||||||||||||
Crude Oil and Condensate
|
$
|
1,376,250
|
$
|
938,518
|
$
|
2,686,585
|
$
|
1,695,880
|
||||||||
Natural Gas Liquids
|
150,023
|
183,805
|
348,333
|
332,532
|
||||||||||||
Natural Gas
|
359,421
|
599,993
|
726,705
|
1,183,912
|
||||||||||||
Gains on Mark-to-Market Commodity Derivative Contracts
|
188,449
|
189,621
|
322,657
|
122,875
|
||||||||||||
Gathering, Processing and Marketing
|
710,748
|
487,698
|
1,428,905
|
883,281
|
||||||||||||
Gains on Asset Dispositions, Net
|
113,290
|
163,771
|
180,758
|
235,513
|
||||||||||||
Other, Net
|
11,138
|
6,844
|
22,027
|
13,363
|
||||||||||||
Total
|
2,909,319
|
2,570,250
|
5,715,970
|
4,467,356
|
||||||||||||
Operating Expenses
|
||||||||||||||||
Lease and Well
|
250,756
|
216,695
|
512,251
|
431,784
|
||||||||||||
Transportation Costs
|
135,393
|
101,965
|
267,235
|
199,598
|
||||||||||||
Gathering and Processing Costs
|
20,588
|
17,716
|
46,180
|
36,912
|
||||||||||||
Exploration Costs
|
48,149
|
41,238
|
90,956
|
92,147
|
||||||||||||
Dry Hole Costs
|
11,081
|
1,676
|
11,081
|
24,627
|
||||||||||||
Impairments
|
54,217
|
358,654
|
187,364
|
447,982
|
||||||||||||
Marketing Costs
|
694,118
|
469,437
|
1,399,586
|
854,846
|
||||||||||||
Depreciation, Depletion and Amortization
|
808,765
|
602,944
|
1,557,508
|
1,171,170
|
||||||||||||
General and Administrative
|
75,727
|
67,406
|
151,996
|
137,443
|
||||||||||||
Taxes Other Than Income
|
118,186
|
104,266
|
239,702
|
210,143
|
||||||||||||
Total
|
2,216,980
|
1,981,997
|
4,463,859
|
3,606,652
|
||||||||||||
|
||||||||||||||||
Operating Income
|
692,339
|
588,253
|
1,252,111
|
860,704
|
||||||||||||
|
||||||||||||||||
Other Income, Net
|
4,675
|
6,224
|
15,306
|
9,828
|
||||||||||||
|
||||||||||||||||
Income Before Interest Expense and Income Taxes
|
697,014
|
594,477
|
1,267,417
|
870,532
|
||||||||||||
|
||||||||||||||||
Interest Expense, Net
|
50,775
|
51,253
|
101,044
|
101,586
|
||||||||||||
|
||||||||||||||||
Income Before Income Taxes
|
646,239
|
543,224
|
1,166,373
|
768,946
|
||||||||||||
|
||||||||||||||||
Income Tax Provision
|
250,461
|
247,650
|
446,586
|
339,399
|
||||||||||||
|
||||||||||||||||
Net Income
|
$
|
395,778
|
$
|
295,574
|
$
|
719,787
|
$
|
429,547
|
||||||||
|
||||||||||||||||
Dividends Declared per Common Share
|
$
|
0.17
|
$
|
0.16
|
$
|
0.34
|
$
|
0.32
|
EOG RESOURCES, INC.
|
||||||||||||||||
OPERATING HIGHLIGHTS
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Wellhead Volumes and Prices
|
||||||||||||||||
Crude Oil and Condensate Volumes (MBbld) (A)
|
||||||||||||||||
United States
|
150.5
|
92.3
|
140.7
|
86.8
|
||||||||||||
Canada
|
6.4
|
8.8
|
7.0
|
8.6
|
||||||||||||
Trinidad
|
1.7
|
3.3
|
1.9
|
3.9
|
||||||||||||
Other International (B)
|
0.1
|
0.1
|
0.1
|
0.1
|
||||||||||||
Total
|
158.7
|
104.5
|
149.7
|
99.4
|
||||||||||||
|
||||||||||||||||
Average Crude Oil and Condensate Prices ($/Bbl) (C)
|
||||||||||||||||
United States
|
$
|
95.80
|
$
|
99.50
|
$
|
98.61
|
$
|
94.05
|
||||||||
Canada
|
82.78
|
102.65
|
86.33
|
93.65
|
||||||||||||
Trinidad
|
88.68
|
99.49
|
94.76
|
92.33
|
||||||||||||
Other International (B)
|
91.20
|
101.52
|
96.49
|
93.67
|
||||||||||||
Composite
|
95.20
|
99.77
|
98.00
|
93.95
|
||||||||||||
|
||||||||||||||||
Natural Gas Liquids Volumes (MBbld) (A)
|
||||||||||||||||
United States
|
54.6
|
38.4
|
52.4
|
36.5
|
||||||||||||
Canada
|
0.9
|
0.7
|
0.9
|
0.8
|
||||||||||||
Total
|
55.5
|
39.1
|
53.3
|
37.3
|
||||||||||||
|
||||||||||||||||
Average Natural Gas Liquids Prices ($/Bbl) (C)
|
||||||||||||||||
United States
|
$
|
33.54
|
$
|
51.50
|
$
|
38.12
|
$
|
49.21
|
||||||||
Canada
|
42.89
|
60.39
|
46.54
|
52.77
|
||||||||||||
Composite
|
33.72
|
51.65
|
38.27
|
49.29
|
||||||||||||
|
||||||||||||||||
Natural Gas Volumes (MMcfd) (A)
|
||||||||||||||||
United States
|
1,070
|
1,114
|
1,067
|
1,124
|
||||||||||||
Canada
|
96
|
139
|
100
|
141
|
||||||||||||
Trinidad
|
422
|
349
|
396
|
367
|
||||||||||||
Other International (B)
|
10
|
13
|
10
|
13
|
||||||||||||
Total
|
1,598
|
1,615
|
1,573
|
1,645
|
||||||||||||
|
||||||||||||||||
Average Natural Gas Prices ($/Mcf) (C)
|
||||||||||||||||
United States
|
$
|
2.09
|
$
|
4.24
|
$
|
2.28
|
$
|
4.17
|
||||||||
Canada
|
2.21
|
4.16
|
2.33
|
3.91
|
||||||||||||
Trinidad
|
3.42
|
3.51
|
3.21
|
3.35
|
||||||||||||
Other International (B)
|
5.64
|
5.61
|
5.72
|
5.62
|
||||||||||||
Composite
|
2.47
|
4.08
|
2.54
|
3.98
|
||||||||||||
|
||||||||||||||||
Crude Oil Equivalent Volumes (MBoed) (D)
|
||||||||||||||||
United States
|
383.3
|
316.4
|
370.9
|
310.7
|
||||||||||||
Canada
|
23.4
|
32.6
|
24.6
|
32.9
|
||||||||||||
Trinidad
|
72.0
|
61.4
|
67.9
|
65.0
|
||||||||||||
Other International (B)
|
1.8
|
2.2
|
1.8
|
2.3
|
||||||||||||
Total
|
480.5
|
412.6
|
465.2
|
410.9
|
||||||||||||
|
||||||||||||||||
Total MMBoe (D)
|
43.7
|
37.5
|
84.7
|
74.4
|
||||||||||||
|
||||||||||||||||
(A) Thousand barrels per day or million cubic feet per day, as applicable.
|
||||||||||||||||
(B) Other International includes EOG's United Kingdom, China and Argentina operations.
|
||||||||||||||||
(C) Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity derivative instruments.
|
||||||||||||||||
(D) Thousand barrels of oil equivalent per day or million barrels of oil equivalent, as applicable; includes crude oil and condensate, natural gas liquids and natural
gas. Crude oil equivalents are determined using the ratio of 1.0 barrel of crude oil and condensate or natural gas liquids to 6.0 thousand cubic feet of natural gas. MMBoe is calculated by multiplying the MBoed amount by the number of days in the period and then dividing that amount by one thousand. |
||||||||||||||||
EOG RESOURCES, INC.
|
||||||||
SUMMARY BALANCE SHEETS
|
||||||||
(Unaudited; in thousands, except share data)
|
||||||||
|
||||||||
|
||||||||
|
June 30,
|
December 31,
|
||||||
|
2012 |
2011
|
||||||
|
||||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and Cash Equivalents
|
$
|
280,374
|
$
|
615,726
|
||||
Accounts Receivable, Net
|
1,375,092
|
1,451,227
|
||||||
Inventories
|
620,260
|
590,594
|
||||||
Assets from Price Risk Management Activities
|
421,135
|
450,730
|
||||||
Income Taxes Receivable
|
28,448
|
26,609
|
||||||
Other
|
222,749
|
119,052
|
||||||
Total
|
2,948,058
|
3,253,938
|
||||||
|
||||||||
Property, Plant and Equipment
|
||||||||
Oil and Gas Properties (Successful Efforts Method)
|
35,562,446
|
33,664,435
|
||||||
Other Property, Plant and Equipment
|
2,375,862
|
2,149,989
|
||||||
Total Property, Plant and Equipment
|
37,938,308
|
35,814,424
|
||||||
Less: Accumulated Depreciation, Depletion and Amortization
|
(15,248,594
|
)
|
(14,525,600
|
)
|
||||
Total Property, Plant and Equipment, Net
|
22,689,714
|
21,288,824
|
||||||
Other Assets
|
360,805
|
296,035
|
||||||
Total Assets
|
$
|
25,998,577
|
$
|
24,838,797
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts Payable
|
$
|
2,235,637
|
$
|
2,033,615
|
||||
Accrued Taxes Payable
|
142,223
|
147,105
|
||||||
Dividends Payable
|
45,441
|
42,578
|
||||||
Deferred Income Taxes
|
121,059
|
135,989
|
||||||
Other
|
135,580
|
163,032
|
||||||
Total
|
2,679,940
|
2,522,319
|
||||||
|
||||||||
|
||||||||
Long-Term Debt
|
5,011,893
|
5,009,166
|
||||||
Other Liabilities
|
791,297
|
799,189
|
||||||
Deferred Income Taxes
|
4,160,306
|
3,867,219
|
||||||
Commitments and Contingencies
|
||||||||
|
||||||||
Stockholders' Equity
|
||||||||
Common Stock, $0.01 Par, 640,000,000 Shares Authorized and
|
||||||||
270,226,599 Shares Issued at June 30, 2012 and
|
||||||||
269,323,084 Shares Issued at December 31, 2011
|
202,702
|
202,693
|
||||||
Additional Paid in Capital
|
2,374,122
|
2,272,052
|
||||||
Accumulated Other Comprehensive Income
|
400,086
|
401,746
|
||||||
Retained Earnings
|
10,417,405
|
9,789,345
|
||||||
Common Stock Held in Treasury, 419,651 Shares at June 30, 2012
|
||||||||
and 303,633 Shares at December 31, 2011
|
(39,174
|
)
|
(24,932
|
)
|
||||
Total Stockholders' Equity
|
13,355,141
|
12,640,904
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
25,998,577
|
$
|
24,838,797
|
EOG RESOURCES, INC.
|
||||||||
SUMMARY STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited; in thousands)
|
||||||||
|
||||||||
|
Six Months Ended
|
|||||||
|
June 30,
|
|||||||
|
2012
|
2011
|
||||||
Cash Flows from Operating Activities
|
||||||||
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
|
||||||||
Net Income
|
$
|
719,787
|
$
|
429,547
|
||||
Items Not Requiring (Providing) Cash
|
||||||||
Depreciation, Depletion and Amortization
|
1,557,508
|
1,171,170
|
||||||
Impairments
|
187,364
|
447,982
|
||||||
Stock-Based Compensation Expenses
|
55,466
|
53,427
|
||||||
Deferred Income Taxes
|
278,826
|
206,130
|
||||||
Gains on Asset Dispositions, Net
|
(180,758
|
)
|
(235,513
|
)
|
||||
Other, Net
|
(3,404
|
)
|
(834
|
)
|
||||
Dry Hole Costs
|
11,081
|
24,627
|
||||||
Mark-to-Market Commodity Derivative Contracts
|
||||||||
Total Gains
|
(322,657
|
)
|
(122,875
|
)
|
||||
Realized Gains
|
306,780
|
31,285
|
||||||
Excess Tax Benefits from Stock-Based Compensation
|
(22,115
|
)
|
-
|
|||||
Other, Net
|
9,890
|
13,268
|
||||||
Changes in Components of Working Capital and Other Assets and Liabilities
|
||||||||
Accounts Receivable
|
115,419
|
(165,300
|
)
|
|||||
Inventories
|
(103,576
|
)
|
(127,062
|
)
|
||||
Accounts Payable
|
176,355
|
189,250
|
||||||
Accrued Taxes Payable
|
14,363
|
94,311
|
||||||
Other Assets
|
(102,303
|
)
|
(4,796
|
)
|
||||
Other Liabilities
|
(27,355
|
)
|
(12,017
|
)
|
||||
Changes in Components of Working Capital Associated with Investing and
|
||||||||
Financing Activities
|
(97,453
|
)
|
76,640
|
|||||
Net Cash Provided by Operating Activities
|
2,573,218
|
2,069,240
|
||||||
|
||||||||
Investing Cash Flows
|
||||||||
Additions to Oil and Gas Properties
|
(3,748,278
|
)
|
(3,122,567
|
)
|
||||
Additions to Other Property, Plant and Equipment
|
(315,542
|
)
|
(340,140
|
)
|
||||
Proceeds from Sales of Assets
|
1,111,517
|
944,481
|
||||||
Changes in Components of Working Capital Associated with Investing
|
||||||||
Activities
|
97,746
|
(76,852
|
)
|
|||||
Net Cash Used in Investing Activities
|
(2,854,557
|
)
|
(2,595,078
|
)
|
||||
|
||||||||
Financing Cash Flows
|
||||||||
Common Stock Sold
|
-
|
1,388,270
|
||||||
Dividends Paid
|
(88,892
|
)
|
(81,562
|
)
|
||||
Excess Tax Benefits from Stock-Based Compensation
|
22,115
|
-
|
||||||
Treasury Stock Purchased
|
(22,663
|
)
|
(16,736
|
)
|
||||
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan
|
32,986
|
24,619
|
||||||
Other, Net
|
(293
|
)
|
212
|
|||||
Net Cash (Used in) Provided by Financing Activities
|
(56,747
|
)
|
1,314,803
|
|||||
|
||||||||
Effect of Exchange Rate Changes on Cash
|
2,734
|
(380
|
)
|
|||||
|
||||||||
(Decrease) Increase in Cash and Cash Equivalents
|
(335,352
|
)
|
788,585
|
|||||
Cash and Cash Equivalents at Beginning of Period
|
615,726
|
788,853
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
280,374
|
$
|
1,577,438
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
||||||||||||||||
Reported Net Income (GAAP)
|
$
|
395,778
|
$
|
295,574
|
$
|
719,787
|
$
|
429,547
|
||||||||
|
||||||||||||||||
Mark-to-Market (MTM) Commodity Derivative Contracts Impact
|
||||||||||||||||
Total Gains
|
(188,449
|
)
|
(189,621
|
)
|
(322,657
|
)
|
(122,875
|
)
|
||||||||
Realized Gains
|
173,179
|
6,348
|
306,780
|
31,285
|
||||||||||||
Subtotal
|
(15,270
|
)
|
(183,273
|
)
|
(15,877
|
)
|
(91,590
|
)
|
||||||||
|
||||||||||||||||
After-Tax MTM Impact
|
(9,776
|
)
|
(117,281
|
)
|
(10,165
|
)
|
(58,641
|
)
|
||||||||
|
||||||||||||||||
Add: Impairment of Certain North American Assets, Net of Tax
|
1,526
|
226,177
|
38,575
|
256,460
|
||||||||||||
Less: Net Gains on Asset Dispositions, Net of Tax
|
(75,087
|
)
|
(105,224
|
)
|
(118,298
|
)
|
(151,110
|
)
|
||||||||
|
||||||||||||||||
Adjusted Net Income (Non-GAAP)
|
$
|
312,441
|
$
|
299,246
|
$
|
629,899
|
$
|
476,256
|
||||||||
|
||||||||||||||||
Net Income Per Share (GAAP)
|
||||||||||||||||
Basic
|
$
|
1.48
|
$
|
1.11
|
$
|
2.70
|
$
|
1.65
|
||||||||
Diluted
|
$
|
1.47
|
$
|
1.10
|
$
|
2.67
|
(a)
|
$
|
1.63
|
(b)
|
||||||
|
||||||||||||||||
Percentage Increase - [(a) - (b)] / (b)
|
64
|
%
|
||||||||||||||
|
||||||||||||||||
Adjusted Net Income Per Share (Non-GAAP)
|
||||||||||||||||
Basic
|
$
|
1.17
|
$
|
1.13
|
$
|
2.36
|
$
|
1.83
|
||||||||
Diluted
|
$
|
1.16
|
$
|
1.11
|
$
|
2.33
|
$
|
1.81
|
||||||||
|
||||||||||||||||
Average Number of Common Shares
|
||||||||||||||||
Basic
|
266,874
|
265,830
|
266,718
|
259,766
|
||||||||||||
Diluted
|
269,985
|
269,332
|
270,083
|
263,363
|
EOG RESOURCES, INC.
|
||||||||||||||||
QUANTITATIVE RECONCILIATION OF DISCRETIONARY CASH FLOW (NON-GAAP)
|
||||||||||||||||
TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP)
|
||||||||||||||||
(Unaudited; in thousands)
|
||||||||||||||||
|
||||||||||||||||
The following chart reconciles the three-month and six-month periods ended June 30, 2012 and 2011 Net Cash Provided by Operating Activities (GAAP) to Discretionary Cash Flow (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), Excess Tax Benefits from Stock-Based Compensation, Changes in Components of Working Capital and Other Assets and Liabilities, and Changes in Components of Working Capital Associated with Investing and Financing Activities. EOG management uses this information for comparative purposes within the industry.
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
||||||||||||||||
Net Cash Provided by Operating Activities (GAAP)
|
$
|
1,495,613
|
$
|
1,111,752
|
$
|
2,573,218
|
$
|
2,069,240
|
||||||||
|
||||||||||||||||
Adjustments
|
||||||||||||||||
Exploration Costs (excluding Stock-Based Compensation Expenses)
|
41,890
|
35,775
|
78,078
|
80,542
|
||||||||||||
Excess Tax Benefits from Stock-Based Compensation
|
5,464
|
-
|
22,115
|
-
|
||||||||||||
Changes in Components of Working Capital and Other Assets and Liabilities
|
||||||||||||||||
Accounts Receivable
|
(205,367
|
)
|
51,445
|
(115,419
|
)
|
165,300
|
||||||||||
Inventories
|
113,784
|
59,329
|
103,576
|
127,062
|
||||||||||||
Accounts Payable
|
60,270
|
(23,753
|
)
|
(176,355
|
)
|
(189,250
|
)
|
|||||||||
Accrued Taxes Payable
|
(19,526
|
)
|
(14,563
|
)
|
(14,363
|
)
|
(94,311
|
)
|
||||||||
Other Assets
|
(6,537
|
)
|
(13,860
|
)
|
102,303
|
4,796
|
||||||||||
Other Liabilities
|
22,296
|
20,638
|
27,355
|
12,017
|
||||||||||||
Changes in Components of Working Capital Associated
|
||||||||||||||||
with Investing and Financing Activities
|
(126,222
|
)
|
(74,655
|
)
|
97,453
|
(76,640
|
)
|
|||||||||
|
||||||||||||||||
Discretionary Cash Flow (Non-GAAP)
|
$
|
1,381,665
|
$
|
1,152,108
|
$
|
2,697,961
|
(a) |
$
|
2,098,756
|
(b) | ||||||
|
||||||||||||||||
Percentage Increase - [(a) - (b)] / (b)
|
29
|
%
|
EOG RESOURCES, INC.
|
||||||||||||||||||
QUANTITATIVE RECONCILIATION OF ADJUSTED EARNINGS BEFORE INTEREST EXPENSE,
|
||||||||||||||||||
INCOME TAXES, DEPRECIATION, DEPLETION AND AMORTIZATION, EXPLORATION COSTS,
|
||||||||||||||||||
DRY HOLE COSTS, IMPAIRMENTS AND ADDITIONAL ITEMS (ADJUSTED EBITDAX)
|
||||||||||||||||||
(NON-GAAP) TO INCOME BEFORE INTEREST EXPENSE AND INCOME TAXES (GAAP)
|
||||||||||||||||||
(Unaudited; in thousands)
|
||||||||||||||||||
|
|
|
||||||||||||||||
The following chart adjusts the three-month and six-month periods ended June 30, 2012 and 2011 reported Income Before Interest Expense and Income Taxes (GAAP) to Earnings Before Interest Expense, Income Taxes, Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments (EBITDAX) (Non-GAAP) and further adjusts such amount to reflect actual net cash realized from financial commodity derivative transactions by eliminating the unrealized mark-to-market (MTM) (gains) losses from these transactions and to eliminate the net gains on asset dispositions primarily in North America in 2012 and 2011. EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Income Before Interest Expense and Income Taxes (GAAP) to add back Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments and further adjust such amount to match realizations to production settlement months and make certain other adjustments to exclude non-recurring items. EOG management uses this information for comparative purposes within the industry.
|
||||||||||||||||||
|
|
|
||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
|
|||||||||||||||
|
June 30,
|
June 30,
|
|
|||||||||||||||
|
2012
|
2011
|
2012
|
|
2011
|
|
||||||||||||
|
|
|
||||||||||||||||
Income Before Interest Expense and Income Taxes (GAAP)
|
$
|
697,014
|
$
|
594,477
|
$
|
1,267,417
|
|
$
|
870,532
|
|
||||||||
|
|
|
||||||||||||||||
Adjustments:
|
|
|
||||||||||||||||
Depreciation, Depletion and Amortization
|
808,765
|
602,944
|
1,557,508
|
|
1,171,170
|
|
||||||||||||
Exploration Costs
|
48,149
|
41,238
|
90,956
|
|
92,147
|
|
||||||||||||
Dry Hole Costs
|
11,081
|
1,676
|
11,081
|
|
24,627
|
|
||||||||||||
Impairments
|
54,217
|
358,654
|
187,364
|
|
447,982
|
|
||||||||||||
EBITDAX (Non-GAAP)
|
1,619,226
|
1,598,989
|
3,114,326
|
|
2,606,458
|
|
||||||||||||
Total (Gains) Losses on MTM Commodity Derivative Contracts
|
(188,449
|
)
|
(189,621
|
)
|
(322,657
|
)
|
|
(122,875
|
)
|
|
||||||||
Realized Gains on MTM Commodity Derivative Contracts
|
173,179
|
6,348
|
306,780
|
|
31,285
|
|
||||||||||||
Net Gains on Asset Dispositions
|
(113,290
|
)
|
(163,771
|
)
|
(180,758
|
)
|
|
(235,513
|
)
|
|
||||||||
Adjusted EBITDAX (Non-GAAP)
|
$
|
1,490,666
|
$
|
1,251,945
|
$
|
2,917,691
|
(a)
|
$
|
2,279,355
|
(b)
|
||||||||
|
|
|
||||||||||||||||
Percentage Increase - [(a) - (b)] / (b)
|
28
|
%
|
|
|
EOG RESOURCES, INC.
|
||||||||||||||
CRUDE OIL AND NATURAL GAS FINANCIAL
|
||||||||||||||
COMMODITY DERIVATIVE CONTRACTS
|
||||||||||||||
|
|
|
||||||||||||
Presented below is a comprehensive summary of EOG's crude oil and natural gas derivative contracts at August 2, 2012, with notional volumes expressed in Bbld and MMBtud and prices expressed in $/Bbl and $/MMBtu. EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method.
|
||||||||||||||
|
|
|
||||||||||||
CRUDE OIL DERIVATIVE CONTRACTS
|
||||||||||||||
|
|
|
||||||||||||
|
|
|
Weighted
|
|||||||||||
|
|
|
Volume
|
Average Price
|
||||||||||
|
|
|
(Bbld)
|
($/Bbl)
|
||||||||||
2012 (1)
|
|
|||||||||||||
January 1, 2012 through February 29, 2012 (closed)
|
34,000
|
$
|
104.95
|
|||||||||||
March 1, 2012 through June 30, 2012 (closed)
|
52,000
|
105.80
|
||||||||||||
July 2012 (closed)
|
50,000
|
106.90
|
||||||||||||
August 2012
|
50,000
|
106.90
|
||||||||||||
September 1, 2012 through December 31, 2012
|
32,000
|
106.61
|
||||||||||||
|
|
|
||||||||||||
2013 (2)
|
|
|||||||||||||
January 1, 2013 through June 30, 2013
|
16,000
|
$
|
98.12
|
|||||||||||
|
||||||||||||||
|
|
|
||||||||||||
(1)
|
EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for an additional six-month period. Options covering a notional volume of 18,000 Bbld are exercisable on August 31, 2012. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 18,000 Bbld at an average price of $107.42 per barrel for the period September 1, 2012 through February 28, 2013. Options covering a notional volume of 15,000 Bbld are exercisable on December 31, 2012. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 15,000 Bbld at an average price of $110.03 per barrel for the period January 1, 2013 through June 30, 2013.
|
|||||||||||||
(2)
|
EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for an additional six-month period. Options covering a notional volume of 16,000 Bbld are exercisable on June 28, 2013. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 16,000 Bbld at an average price of $98.12 per barrel for the period July 1, 2013 through December 31, 2013.
|
|||||||||||||
|
|
|
||||||||||||
NATURAL GAS DERIVATIVE CONTRACTS
|
||||||||||||||
|
|
|
||||||||||||
|
|
|
Weighted
|
|||||||||||
|
|
|
Volume
|
Average Price
|
||||||||||
|
|
|
(MMBtud)
|
($/MMBtu)
|
||||||||||
2012 (3)
|
|
|||||||||||||
January 1, 2012 through August 31, 2012 (closed)
|
525,000
|
$
|
5.44
|
|||||||||||
September 1, 2012 through December 31, 2012
|
525,000
|
$
|
5.44
|
|||||||||||
|
|
|
||||||||||||
2013 (4)
|
|
|||||||||||||
January 1, 2013 through December 31, 2013
|
150,000
|
$
|
4.79
|
|||||||||||
|
|
|
||||||||||||
2014 (5)
|
|
|||||||||||||
|
||||||||||||||
|
|
|
||||||||||||
(3)
|
EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates. Such options are exercisable monthly up until the settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 425,000 MMBtud at an average price of $5.44 per MMBtu for the period from September 1, 2012 through December 31, 2012.
|
|||||||||||||
(4)
|
EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates. Such options are exercisable monthly up until the settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 150,000 MMBtud at an average price of $4.79 per MMBtu for each month of 2013.
|
|||||||||||||
(5)
|
EOG settled natural gas financial price swap contracts for the period January 1, 2014 through December 31, 2014. In connection with these contracts, the counterparties retain an option of entering into derivative contracts at future dates. Such options are exercisable monthly up until the settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 150,000 MMbtud at an average price of $4.79 per MMBtu for each month of 2014.
|
|||||||||||||
|
|
|
Definitions
|
|
Bbld
|
Barrels per day.
|
$/Bbl
|
Dollars per barrel.
|
MMBtud
|
Million British thermal units per day.
|
$/MMBtu
|
Dollars per million British thermal units.
|
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 (NON-GAAP)
|
||||
TO LONG-TERM DEBT (GAAP) AND TOTAL CAPITALIZATION (GAAP)
|
||||
(Unaudited; in millions, except ratio data)
|
||||
|
||||
The following chart reconciles 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 and Total Capitalization (Non-GAAP) in their Net Debt-to-Total Capitalization ratio calculation. EOG management uses this information for comparative purposes within the industry.
|
||||
|
||||
|
June 30,
|
|||
|
2012 | |||
|
||||
Total Stockholders' Equity - (a)
|
$
|
13,355
|
||
|
||||
Long-Term Debt - (b)
|
5,012
|
|||
Less: Cash
|
(280
|
)
|
||
Net Debt (Non-GAAP) - (c)
|
4,732
|
|||
|
||||
Total Capitalization (GAAP) - (a) + (b)
|
$
|
18,367
|
||
|
||||
Total Capitalization (Non-GAAP) - (a) + (c)
|
$
|
18,087
|
||
|
||||
Debt-to-Total Capitalization (GAAP) - (b) / [(a) + (b)]
|
27
|
%
|
||
|
||||
Net Debt-to-Total Capitalization (Non-GAAP) - (c) / [(a) + (c)]
|
26
|
%
|
EOG RESOURCES, INC.
|
|||||||||||
THIRD QUARTER AND FULL YEAR 2012 FORECAST AND BENCHMARK COMMODITY PRICING
|
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(a) Third Quarter and Full Year 2012 Forecast
The forecast items for the third quarter and full year 2012 set forth below for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of the accompanying press release. EOG undertakes no obligation, other than as required by applicable law, to update or revise this forecast, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. This forecast, which should be read in conjunction with the accompanying press release and EOG's related Current Report on Form 8-K filing, replaces and supersedes any previously issued guidance or forecast.
(b) Benchmark Commodity Pricing
EOG bases United States, Canada and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.
EOG bases United States and Canada natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.
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ESTIMATED RANGES
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(Unaudited)
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3Q 2012
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Full Year 2012
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Daily Production
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Crude Oil and Condensate Volumes (MBbld)
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United States
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148.0
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-
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160.0
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142.0
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-
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152.0
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Canada
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5.0
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-
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6.0
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6.3
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-
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7.3
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Trinidad
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0.8
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-
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2.0
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1.2
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-
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1.6
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Other International
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0.0
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-
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0.2
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0.1
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-
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0.2
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Total
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153.8
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-
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168.2
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149.6
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-
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161.1
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Natural Gas Liquids Volumes (MBbld)
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United States
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52.0
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-
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58.0
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51.0
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-
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58.3
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Canada
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0.6
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-
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1.0
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0.7
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-
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0.9
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Total
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52.6
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-
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59.0
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51.7
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-
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59.2
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Natural Gas Volumes (MMcfd)
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United States
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1,000
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-
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1,025
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1,021
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-
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1,041
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Canada
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80
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-
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100
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89
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-
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99
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Trinidad
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333
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-
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362
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358
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-
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373
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Other International
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8
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-
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10
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10
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-
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11
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Total
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1,421
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-
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1,497
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1,478
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-
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1,524
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Crude Oil Equivalent Volumes (MBoed)
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United States
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366.7
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-
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388.8
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363.2
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-
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383.8
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Canada
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18.9
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-
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23.7
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21.8
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-
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24.7
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Trinidad
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56.3
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-
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62.3
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60.9
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-
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63.8
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Other International
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1.3
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-
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1.8
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1.8
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-
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2.0
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Total
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443.2
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-
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476.6
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447.7
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-
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474.3
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ESTIMATED RANGES
(Unaudited)
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3Q 2012
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Full Year 2012
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Operating Costs
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Unit Costs ($/Boe)
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Lease and Well
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$
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6.65
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-
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$
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6.85
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$
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6.36
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-
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$
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6.54
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Transportation Costs
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$
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3.60
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-
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$
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3.75
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$
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3.30
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-
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$
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3.48
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Depreciation, Depletion and Amortization
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$
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19.35
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-
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$
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20.00
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$
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18.84
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-
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$
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19.44
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Expenses ($MM)
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Exploration, Dry Hole and Impairment
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$
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122.0
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-
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$
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142.0
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$
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476.2
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-
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$
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516.2
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General and Administrative
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$
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102.0
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-
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$
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107.0
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$
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339.0
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-
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$
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348.8
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Gathering and Processing
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$
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23.2
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-
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$
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27.2
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$
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93.6
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-
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$
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101.6
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Capitalized Interest
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$
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10.8
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-
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$
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14.8
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$
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46.4
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-
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$
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54.4
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Net Interest
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$
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47.0
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-
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$
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53.0
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$
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195.3
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-
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$
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205.9
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Taxes Other Than Income (% of Wellhead Revenue)
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5.8
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%
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-
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6.4
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%
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5.9
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%
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-
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6.3
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%
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Income Taxes
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Effective Rate
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35
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%
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-
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45
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%
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35
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%
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-
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45
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%
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Current Taxes ($MM)
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$
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75
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-
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$
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90
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$
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320
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-
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$
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340
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Capital Expenditures ($MM) - FY 2012 (Excluding Acquisitions)
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Exploration and Development, Excluding Facilities
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$
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6,200
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-
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$
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6,300
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Exploration and Development Facilities
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$
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630
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-
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$
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675
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Gathering, Processing and Other
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$
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570
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-
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$
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600
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Pricing - (Refer to Benchmark Commodity Pricing in text)
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Crude Oil and Condensate ($/Bbl)
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Differentials
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United States - (above) below WTI
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$
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(2.00
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)
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-
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$
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(4.00
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$
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(1.29
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)
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-
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$
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(2.37
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)
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Canada - (above) below WTI
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$
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6.50
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-
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$
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8.00
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$
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9.41
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-
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$
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10.17
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Trinidad - (above) below WTI
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$
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8.75
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-
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$
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10.25
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$
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3.00
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-
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$
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4.00
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Natural Gas Liquids
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Realizations as % of WTI
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United States
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34
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%
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-
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40
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%
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36
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%
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-
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39
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%
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Canada
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50
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%
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-
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54
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%
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49
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%
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-
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51
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%
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Natural Gas ($/Mcf)
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Differentials
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United States - (above) below NYMEX Henry Hub
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$
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0.15
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-
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$
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0.30
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$
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0.20
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-
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$
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0.27
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Canada - (above) below NYMEX Henry Hub
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$
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0.57
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-
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$
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0.77
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$
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0.37
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-
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$
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0.47
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Realizations
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Trinidad
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$
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3.30
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-
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$
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3.80
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$
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2.96
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-
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$
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3.43
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Other International
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$
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5.00
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-
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$
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5.80
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$
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5.36
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-
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$
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5.76
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Definitions
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$/Bbl U.S. Dollars per barrel
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$/Boe U.S. Dollars per barrel of oil equivalent
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$/Mcf U.S. Dollars per thousand cubic feet
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$MM U.S. Dollars in millions
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MBbld Thousand barrels per day
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Mboed Thousand barrels of oil equivalent per day
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MMcfd Million cubic feet per day
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NYMEX New York Mercantile Exchange
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WTI West Texas Intermediate
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