EOG Resources Inc. (EOG)

Capitalized Interest Costs

Interest costs have been capitalized as a part of the historical cost of unproved oil and gas properties. The amount capitalized is an allocation of the interest cost incurred during the reporting period. Capitalized interest is computed only during the exploration and development phases and ceases once production begins. The interest rate used for capitalization purposes is based on the interest rates on EOG’s outstanding borrowings. The capitalization of interest is excluded on significant acquisitions of unproved oil and gas properties financed through non-interest-bearing instruments, such as the issuance of shares of Common Stock, or through non-cash property exchanges.

Source: 10-K (filing date: 2018-02-27).

EOG Resources Inc., Statement of Financial Position, Debt

USD $ in thousands

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-18), 10-K (filing date: 2014-02-24).

Item	Description	The company
Total long-term debt and capital lease obligation (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	EOG Resources Inc.’s total debt increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

Based on: 10-K (filing date: 2018-02-27).

Weighted-average interest rate on debt:

Based on: 10-K (filing date: 2018-02-27).

EOG Resources Inc.

USD $ in thousands

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-18), 10-K (filing date: 2014-02-24).

Item	Description	The company
Net interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	EOG Resources Inc.’s net interest expense increased from 2015 to 2016 but then slightly declined from 2016 to 2017.
Interest expense, capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	EOG Resources Inc.’s interest expense, capitalized declined from 2015 to 2016 and from 2016 to 2017.
Interest expense, incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	EOG Resources Inc.’s interest expense, incurred increased from 2015 to 2016 but then slightly declined from 2016 to 2017.

Based on: 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-18), 10-K (filing date: 2014-02-24).

2017 Calculations

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Ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	EOG Resources Inc.’s adjusted interest coverage ratio improved from 2015 to 2016 and from 2016 to 2017.