Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Deferred Income Tax Assets (Liabilities), Net

The principal components of EOG's total net deferred income tax liabilities at December 31, 2021 and 2020 were as follows (in millions):


	2021		2020
Deferred Income Tax Assets (Liabilities)
Foreign Oil and Gas Exploration and Development Costs Deducted for Tax Under Book Depreciation, Depletion and Amortization	$	(19)	$	25
Foreign Asset Retirement Obligations	51		—
Foreign Accrued Expenses and Liabilities	15		—
Foreign Net Operating Loss	80		74
Foreign Valuation Allowances	(111)		(97)
Foreign Other	(5)		—
Total Net Deferred Income Tax Assets	$	11	$	2
Deferred Income Tax (Assets) Liabilities
Oil and Gas Exploration and Development Costs Deducted for Tax Over Book Depreciation, Depletion and Amortization	$	5,063	$	5,028
Commodity Hedging Contracts	(97)		15
Deferred Compensation Plans	(57)		(43)
Equity Awards	(86)		(103)
Undistributed Foreign Earnings	—		10
Other	(74)		(48)
Total Net Deferred Income Tax Liabilities	$	4,749	$	4,859
Total Net Deferred Income Tax Liabilities	$	4,738	$	4,857

Components of Income (Loss) Before Income Taxes

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


	2021		2020		2019

United States	$	5,787	$	(756)	$	3,466
Foreign	146		17		79
Total	$	5,933	$	(739)	$	3,545

Components of Income Tax Provision (Benefit)

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


	2021		2020		2019
Current:
Federal	$	1,203	$	(108)	$	(152)
State	85		7		10
Foreign	105		40		81
Total	1,393		(61)		(61)
Deferred:
Federal	(41)		(153)		627
State	(62)		(15)		33
Foreign	(19)		(18)		(28)
Total	(122)		(186)		632
Other Non-Current: (1)
Federal	—		113		245
Foreign	(2)		—		(6)
Total	(2)		113		239

Income Tax Provision (Benefit)	$	1,269	$	(134)	$	810

(1) Includes changes in certain amounts that are expected to be paid or received beyond the next twelve months. The primary component in 2020 and 2019 is refundable alternative minimum tax (AMT) credits.

Tax Rate Reconciliation

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


	2021		2020		2019
Statutory Federal Income Tax Rate	21.0	%	21.0	%	21.0	%
State Income Tax, Net of Federal Benefit	0.3		0.9		1.0
Income Tax Provision Related to Foreign Operations	0.9		(0.1)		0.9
Income Tax Provision Related to Canadian Operations	—		(2.4)		—
Stock-Based Compensation	0.2		(2.9)		—
Other	(1.0)		1.7		—
Effective Income Tax Rate	21.4	%	18.2	%	22.9	%

Summary of Valuation Allowance

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


	2021		2020		2019

Beginning Balance	$	219	$	201	$	167
Increase (1)	15		25		31
Decrease (2)	(14)		(11)		—
Other (3)	(1)		4		3
Ending Balance	$	219	$	219	$	201

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

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

(3) Represents dispositions, revisions and/or foreign exchange rate variances and the effect of statutory income tax rate changes.