An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

EOG Resources Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total undiscounted future operating lease payments	—	555,692	437,597	376,883	421,189
Discount rate¹	—	3.92%	4.08%	4.24%	3.96%

Total present value of future operating lease payments	—	499,411	380,358	323,191	363,395

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

¹ Weighted-average interest rate for EOG Resources Inc.’s debt

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.92%
2019	175,787	2019	175,787	169,156
2020	109,498	2020	109,498	101,393
2021	109,497	2021	109,497	97,567
2022	45,304	2022	45,304	38,845
2023	45,304	2023	45,304	37,380
2024 and thereafter	70,302	2024	45,304	35,970
		2025	24,998	19,099
Total:	555,692		555,692	499,411

Based on: 10-K (filing date: 2019-02-26).

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.08%
2018	118,412	2018	118,412	113,770
2019	59,292	2019	59,292	54,735
2020	59,291	2020	59,291	52,588
2021	44,020	2021	44,020	37,513
2022	44,019	2022	44,019	36,042
2023 and thereafter	112,563	2023	44,019	34,629
		2024	44,019	33,271
		2025	24,525	17,810
Total:	437,597		437,597	380,358

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

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.24%
2017	89,617	2017	89,617	85,972
2018	54,928	2018	54,928	50,550
2019	54,928	2019	54,928	48,494
2020	34,731	2020	34,731	29,416
2021	34,731	2021	34,731	28,219
2022 and thereafter	107,948	2022	34,731	27,071
		2023	34,731	25,970
		2024	34,731	24,914
		2025	3,755	2,584
Total:	376,883		376,883	323,191

Based on: 10-K (filing date: 2017-02-27).

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.96%
2016	104,459	2016	104,459	100,480
2017	56,977	2017	56,977	52,719
2018	56,976	2018	56,976	50,710
2019	37,421	2019	37,421	32,037
2020	37,421	2020	37,421	30,817
2021 and thereafter	127,935	2021	37,421	29,643
		2022	37,421	28,514
		2023	37,421	27,427
		2024	15,672	11,049
Total:	421,189		421,189	363,395

Based on: 10-K (filing date: 2016-02-25).

EOG Resources Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported)	37,124,608	33,934,474	29,833,078	29,459,433	26,975,244
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—	499,411	380,358	323,191	363,395
Total assets (adjusted)	37,124,608	34,433,885	30,213,436	29,782,624	27,338,639
Adjustment to Total Debt
Total debt (as reported)	5,175,443	6,083,262	6,387,071	6,986,358	6,660,264
Add: Operating lease liability (before adoption of FASB Topic 842)²	—	499,411	380,358	323,191	363,395
Add: Current portion of operating lease liabilities	369,365	—	—	—	—
Add: Operating lease liabilities, excluding current portion (located in Other liabilities)	430,000	—	—	—	—
Total debt (adjusted)	5,974,808	6,582,673	6,767,429	7,309,549	7,023,659

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

^{1, 2} Equal to total present value of future operating lease payments.

EOG Resources Inc., Financial Data: Reported vs. Adjusted

EOG Resources Inc., adjusted financial ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total Asset Turnover¹
Reported total asset turnover	0.47	0.51	0.38	0.26	0.32
Adjusted total asset turnover	0.47	0.50	0.37	0.26	0.32
Debt to Equity²
Reported debt to equity	0.24	0.31	0.39	0.50	0.51
Adjusted debt to equity	0.28	0.34	0.42	0.52	0.54
Return on Assets³ (ROA)
Reported ROA	7.37%	10.08%	8.66%	-3.72%	-16.77%
Adjusted ROA	7.37%	9.93%	8.55%	-3.68%	-16.55%

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	EOG Resources Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	EOG Resources Inc.’s adjusted debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	EOG Resources Inc.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

EOG Resources Inc., Financial Ratios: Reported vs. Adjusted

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Operating revenues and other	17,379,973	17,275,399	11,208,320	7,650,632	8,757,428
Total assets	37,124,608	33,934,474	29,833,078	29,459,433	26,975,244
Activity Ratio
Total asset turnover¹	0.47	0.51	0.38	0.26	0.32
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Operating revenues and other	17,379,973	17,275,399	11,208,320	7,650,632	8,757,428
Adjusted total assets	37,124,608	34,433,885	30,213,436	29,782,624	27,338,639
Activity Ratio
Adjusted total asset turnover²	0.47	0.50	0.37	0.26	0.32

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

¹ Total asset turnover = Operating revenues and other ÷ Total assets
= 17,379,973 ÷ 37,124,608 = 0.47

² Adjusted total asset turnover = Operating revenues and other ÷ Adjusted total assets
= 17,379,973 ÷ 37,124,608 = 0.47

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	EOG Resources Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total debt	5,175,443	6,083,262	6,387,071	6,986,358	6,660,264
Stockholders’ equity	21,640,716	19,364,188	16,283,273	13,981,581	12,943,035
Solvency Ratio
Debt to equity¹	0.24	0.31	0.39	0.50	0.51
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	5,974,808	6,582,673	6,767,429	7,309,549	7,023,659
Stockholders’ equity	21,640,716	19,364,188	16,283,273	13,981,581	12,943,035
Solvency Ratio
Adjusted debt to equity²	0.28	0.34	0.42	0.52	0.54

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

¹ Debt to equity = Total debt ÷ Stockholders’ equity
= 5,175,443 ÷ 21,640,716 = 0.24

² Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 5,974,808 ÷ 21,640,716 = 0.28

Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	EOG Resources Inc.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	2,734,910	3,419,040	2,582,579	(1,096,686)	(4,524,515)
Total assets	37,124,608	33,934,474	29,833,078	29,459,433	26,975,244
Profitability Ratio
ROA¹	7.37%	10.08%	8.66%	-3.72%	-16.77%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net income (loss)	2,734,910	3,419,040	2,582,579	(1,096,686)	(4,524,515)
Adjusted total assets	37,124,608	34,433,885	30,213,436	29,782,624	27,338,639
Profitability Ratio
Adjusted ROA²	7.37%	9.93%	8.55%	-3.68%	-16.55%

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 2,734,910 ÷ 37,124,608 = 7.37%

² Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 2,734,910 ÷ 37,124,608 = 7.37%

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	EOG Resources Inc.’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

EOG Resources Inc. (NYSE:EOG)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

EOG Resources Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

EOG Resources Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)