Leases

12 Months Ended

Dec. 31, 2022

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, 2022, 2021 and 2020 were as follows (in millions):


	2022		2021		2020
Operating Lease Cost (1)	$	282	$	295	$	393
Finance Lease Cost:
Amortization of Lease Assets	36		39		21
Interest on Lease Liabilities	6		7		4
Variable Lease Cost	71		63		91
Short-Term Lease Cost	425		257		194
Total Lease Cost	$	820	$	661	$	703

(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, 2022 and 2021 and supplemental information for the years ended December 31, 2022 and 2021 (in millions, except lease terms and discount rates):


Description	Location on Balance Sheet	2022		2021
Assets
Operating Leases	Other Assets	$	846	$	743
Finance Leases	Property, Plant and Equipment, Net (1)	203		241
Total		$	1,049	$	984

Liabilities
Current
Operating Leases	Current Portion of Operating Lease Liabilities	$	296	$	240
Finance Leases	Current Portion of Long-Term Debt	33		37
Long-Term
Operating Leases	Other Liabilities	584		558
Finance Leases	Long-Term Debt	182		213
Total		$	1,095	$	1,048

(1) Finance lease assets are recorded net of accumulated amortization of $157 million and $119 million at December 31, 2022 and 2021, respectively.


	2022		2021
Weighted Average Remaining Lease Term (in years):
Operating Leases	4.9		5.3
Finance Leases	6.5		7.0

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

Cash paid for leases for the years ended December 31, 2022, 2021 and 2020 was as follows (in millions):


	2022		2021		2020
Repayment of Operating Lease Liabilities Associated with Operating Activities	$	199	$	207	$	223
Repayment of Operating Lease Liabilities Associated with Investing Activities	95		98		130
Repayment of Finance Lease Liabilities	35		37		19

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

At December 31, 2022, the future minimum lease payments under non-cancellable leases were as follows (in millions):


	Operating Leases		Finance Leases
2023	$	323	$	37
2024	213		37
2025	106		36
2026	80		30
2027	70		30
2028 and Beyond	172		65
Total Lease Payments	964		235
Less: Discount to Present Value	84		20
Total Lease Liabilities	880		215
Less: Current Portion of Lease Liabilities	296		33
Long-Term Lease Liabilities	$	584	$	182

At December 31, 2022, EOG had additional minimum lease payments of $622 million, which are expected to commence in 2023 with lease terms of one to fifteen years.