EOG Resources' geography is determined by where it can locate primary energy resources -- natural gas, natural gas liquids, and oil. The independent oil and gas company is engaged in exploring for natural gas and crude oil and developing, producing, and marketing those resources. In 2011, EOG's total estimated net proved reserves were 2.05 billion barrels of oil equivalent, of which 517 million barrels were crude oil and condensate reserves, 228 million barrels were natural gas liquids reserves and 7,851 billion cubic feet (or 1.3 billion barrels of oil equivalent) were natural gas reserves.
EOG Resources is developing major shale plays in North America -- the Eagle Ford Shale and Barnett Shale in Texas and the Bakken Formation in North Dakota. EOG also has operations in Canada, offshore Trinidad, the UK North Sea and East Irish Sea, the China Sichuan Basin and the Neuquén Basin of Argentina.
In 2011 EOG's revenue increased by 66% thanks to a 92% rise in crude oil and condensate revenues primarily due to an increase in wellhead crude oil and condensate deliveries as a result of stronger production in Texas and Colorado; a 69% increase in natural gas liquids revenue due to a jump in natural gas liquids deliveries and a higher average price as a result of increased volumes in the Fort Worth Basin Barnett Shale, the Eagle Ford Shale, and the Rocky Mountain area; and a more than 132% increase in gathering, processing, and marketing revenues due to a surge in crude oil marketing activities.
Net income spiked by 579% in 2011 thanks to strong revenue growth and a decrease in exploration costs due to lower geological and geophysical expenditures in the US.
EOG's strategy is to focus on organic growth of its North American shale plays and through strategic acquisitions of properties in North America and internationally.
EOG announced significant oil finds in Texas, North Dakota, and Colorado in 2011 and targeted double-digit growth in its organic production through 2012. In 2011 EOG was the largest oil producer in the Eagle Ford shale play in Texas where its net production was 30,200 barrels per day of crude oil and condensate, 3,900 barrels per day of natural gas liquids and 21 million cubic feet per day of natural gas.
Expanding its energy portfolio, in 2010 EOG Resources Canada acquired Galveston LNG for $210 million, giving it a 24.5% stake in Pacific Trail Pipelines Limited Partnership and a 49% share of Kitimat LNG, a planned liquefied natural gas export terminal in British Columbia.
Moving into a new exploration area, in 2010 EOG acquired rights from ConocoPhillips in a Petroleum Contract covering the Chuanzhong Block exploration area in China's Sichuan Basin. In 2011 the company held 131,000 net acres in China. – less