OREANDA-NEWS. EOG Resources, Inc. (NYSE: EOG) (EOG) reported second quarter 2015 net income of USD 5.3 million, or USD 0.01 per share. This compares to second quarter 2014 net income of USD 706.4 million, or USD 1.29 per share.

Adjusted non-GAAP net income for the second quarter 2015 was USD 153.1 million, or USD 0.28 per share, compared to the same prior year period adjusted non-GAAP net income of USD 796.0 million, or USD 1.45 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. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP.)

Higher cash settlements from commodity derivative contracts and lower operating expenses were offset by lower commodity price realizations, resulting in decreases in adjusted non-GAAP net income, discretionary cash flow and EBITDAX during the second quarter 2015 compared to the second quarter 2014. (Please refer to the attached tables for the reconciliation of non-GAAP measures to GAAP measures.)

In the second quarter 2015, total crude oil and condensate production increased by one percent compared to the second quarter 2014, excluding production related to EOG's Canadian operations which were divested in December 2014. On the same basis, overall total company production decreased three percent compared to the same prior year period. Total capital expenditures decreased 40 percent compared to the prior year.

In the second quarter 2015, EOG continued to improve well productivity and reduce completed well costs and operating costs. The integration of the latest high-density completion designs in combination with improved wellbore placement resulted in increased well productivity. EOG achieved significant well and operating cost reductions through operational efficiencies and service cost reductions. The combination of increased well productivity and lower costs is enabling the company to make higher returns at lower oil prices.

"EOG's return-driven culture is responding extremely well to low oil prices, and we are excited about the company's continued improvement," said William R. "Bill" Thomas, Chairman and Chief Executive Officer. "The company is generating good returns in all our key assets with USD 50 oil. Our goal is to continue our progress and remain the industry leader in capital returns."

For the period August 1 through December 31, 2015, EOG has crude oil financial price swap contracts in place for 10,000 Bopd at a weighted average price of USD 89.98 per barrel.

For the period September 1 through December 31, 2015, EOG has natural gas financial price swap contracts in place for 175,000 million British thermal units per day at a weighted average price of USD 4.51 per million British thermal units, excluding unexercised options.