Leases (Notes)

12 Months Ended

Dec. 31, 2021

Lessee Operating and Finance Leases [Text Block]

Leases

Lease costs are classified by the function of the ROU asset. The lease costs related to exploration and development activities are initially included in the Oil and Gas Properties line on the Consolidated Balance Sheets and subsequently accounted for in accordance with the Extractive Industries - Oil and Gas Topic of the ASC. Variable lease cost represents costs incurred above the contractual minimum payments and other charges associated with leased equipment, primarily for drilling and fracturing contracts classified as operating leases. The components of lease cost for the years ended December 31, 2021, 2020 and 2019 were as follows (in millions):


	2021		2020		2019
Operating Lease Cost (1)	$	295	$	393	$	497
Finance Lease Cost:
Amortization of Lease Assets	39		21		13
Interest on Lease Liabilities	7		4		2
Variable Lease Cost	63		91		138
Short-Term Lease Cost	257		194		333
Total Lease Cost	$	661	$	703	$	983

(1) Operating lease cost includes impairment expenses of $35 million in 2020.

The following table sets forth the amounts and classification of EOG's outstanding ROU assets and related lease liabilities at December 31, 2021 and 2020 and supplemental information for the years ended December 31, 2021 and 2020 (in millions, except lease terms and discount rates):


Description	Location on Balance Sheet	2021		2020
Assets
Operating Leases	Other Assets	$	743	$	869
Finance Leases	Property, Plant and Equipment, Net (1)	241		206
Total		$	984	$	1,075

Liabilities
Current
Operating Leases	Current Portion of Operating Lease Liabilities	$	240	$	295
Finance Leases	Current Portion of Long-Term Debt	37		31
Long-Term
Operating Leases	Other Liabilities	558		641
Finance Leases	Long-Term Debt	213		181
Total		$	1,048	$	1,148

(1) Finance lease assets are recorded net of accumulated amortization of $119 million and $81 million at December 31, 2021 and 2020, respectively.


	2021		2020
Weighted Average Remaining Lease Term (in years):
Operating Leases	5.3		5.3
Finance Leases	7.0		7.6

Weighted Average Discount Rate:
Operating Leases	3.0	%	3.4	%
Finance Leases	2.6	%	2.8	%

Cash paid for leases for the years ended December 31, 2021, 2020 and 2019 was as follows (in millions):


	2021		2020		2019
Repayment of Operating Lease Liabilities Associated with Operating Activities	$	207	$	223	$	225
Repayment of Operating Lease Liabilities Associated with Investing Activities	98		130		270
Repayment of Finance Lease Liabilities	37		19		13

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. Non-cash leasing activities for the year ended December 31, 2020, included the additions of $893 million of operating leases and $174 million of finance leases. Non-cash leasing activities for the year ended December 31, 2019, included the addition of $784 million of operating leases. Upon adoption of ASU 2016-02 effective January 1, 2019, EOG recognized operating lease ROU of $566 million.

At December 31, 2021, the future minimum lease payments under non-cancellable leases were as follows (in millions):


	Operating Leases		Finance Leases
2022	$	262	$	42
2023	188		37
2024	113		37
2025	80		36
2026	59		30
2027 and Beyond	172		94
Total Lease Payments	874		276
Less: Discount to Present Value	76		26
Total Lease Liabilities	798		250
Less: Current Portion of Lease Liabilities	240		37
Long-Term Lease Liabilities	$	558	$	213

At December 31, 2021, EOG had additional leases of $98 million, which are expected to commence in 2022 with lease terms of three months to nine years.