OREANDA-NEWS. EOG Resources, Inc. reported fourth quarter 2014 net income of USD 445 million, or USD 0.81 per share. This compares to fourth quarter 2013 net income of USD 580 million, or USD 1.06 per share. For the full year, EOG reported net income of USD 2,915 million, or USD 5.32 per share, compared to USD 2,197 million, or USD 4.02 per share, for the full year 2013.

Adjusted non-GAAP net income for the fourth quarter 2014 was USD 432 million, or USD 0.79 per share, and for the fourth quarter 2013 was USD 548 million, or USD 1.00 per share. Adjusted non-GAAP net income for the full year 2014 was USD 2,716 million, or USD 4.95 per share, and for the full year 2013 was USD 2,246 million, or USD 4.11 per share. Adjusted non-GAAP net income is calculated by matching realizations to settlement months and making certain other adjustments in order to exclude one-time items.

EOG achieved strong financial metrics for 2014. Adjusted non-GAAP net income per share increased 20 percent and discretionary cash flow increased 14 percent, compared to 2013. For the year, EOG posted ROE of 16 percent and ROCE of 14 percent. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP and for return calculations.)

In the fourth quarter 2014, EOG increased its U.S. crude oil and condensate production by 28 percent, while total company crude oil and condensate production rose by 26 percent, compared to the same prior year period.

For the full year, crude oil and condensate production increased 31 percent year over year, driven by 33 percent growth in the United States. Natural gas liquids (NGLs) production increased 23 percent, while natural gas production was flat. Overall total company production increased 17 percent.

"EOG delivered both high returns and strong growth in 2014, a unique accomplishment in the energy sector," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "Our returns-focused capital discipline has been at the core of EOG's culture since the very beginning. We are confident we will continue to earn healthy returns on our capital program during this commodity down cycle and, more importantly, emerge stronger and poised for significant long-term growth."

The board of directors declared a dividend of USD 0.1675 per share on EOG's Common Stock, payable April 30, 2015, to stockholders of record as of April 16, 2015. The indicated annual rate is USD 0.67 per share.

EOG's primary goal for 2015 is to position the company to resume long-term growth once crude oil prices recover. The company is not interested in accelerating crude oil production in a low-price environment.

Capital expenditures for 2015 are expected to range from USD 4.9 to USD 5.1 billion, including production facilities and midstream expenditures, and excluding acquisitions. This 40 percent reduction compared to 2014 reflects EOG's commitment to capital discipline in a low crude oil price environment.

Capital will be allocated primarily to EOG's highest rate-of-return oil assets, the Eagle Ford, Delaware Basin and Bakken plays. To further enhance capital efficiency, EOG plans to utilize rigs under existing commitments and delay a significant number of completions. Delaying completions increases returns, adds substantial net present value and prepares the company to resume strong oil growth when commodity prices recover.

Due to reduced capital spending and delayed completions, EOG expects to complete approximately 45 percent fewer wells in 2015 versus 2014. Therefore, the midpoint for 2015 total company crude oil production guidance is essentially flat year over year. Once again, EOG plans to minimize investment in domestic dry natural gas drilling. As a result, its U.S. natural gas production and total company production are expected to decline modestly.

Year after year, EOG has relentlessly focused on advancing its industry-leading completion technology and driving down unit costs through efficiency gains. That will not change in 2015.

Finally, the company expects to use its strong balance sheet to capitalize on unique opportunities created by this low-price environment to add high-quality acreage.

"The downturn in oil prices will drive significant reductions in global supply and the market will rebalance," Thomas said. "Our goal at EOG is to exit this downturn in better shape than we entered it.

"The current environment brings more opportunities to lower our finding costs, improve our returns and add high-quality drilling inventory. As prices recover, EOG will be poised to resume strong U.S. oil growth," Thomas added.