EOG Resources Inc. (NYSE:EOG)

The data reveals the financial position of property, plant, and equipment over five consecutive years, highlighting developments in both asset acquisition and depreciation.

Oil and Gas Properties

There is a clear upward trend in the value of oil and gas properties calculated under the successful efforts method, increasing from approximately 50.6 billion to 62.8 billion USD. This suggests ongoing investment and expansion in core operational assets.

Other Property, Plant, and Equipment

The value of other property, plant, and equipment remains relatively stable, showing a slight increase from 3.99 billion to 4.47 billion USD. This moderate growth indicates incremental additions outside primary oil and gas assets.

Property, Plant and Equipment, Gross

The gross value, which aggregates all property, plant, and equipment before depreciation, demonstrates a consistent increase from 54.6 billion to 67.3 billion USD. This reflects active capital expenditures and asset growth during the period.

Accumulated Depreciation, Depletion, and Amortization

Accumulated depreciation and similar charges have also increased steadily, moving from approximately -30.4 billion to -36.9 billion USD. The rising absolute value indicates ongoing usage and aging of assets, which aligns with the increasing asset base.

Property, Plant, and Equipment, Net

Net property, plant, and equipment, representing the book value after depreciation, shows a positive trend, rising from 24.2 billion to 30.4 billion USD over the five years. This demonstrates asset growth exceeding the rate of depreciation, pointing to effective asset management and capital investment strategies.

In summary, the data depicts a company expanding its asset base steadily while managing depreciation in line with asset additions. The net increase in property, plant, and equipment underlines a strengthening of fixed assets, likely supporting operational capacity and future production potential.

The analysis of the average age ratio of property, plant, and equipment over the five-year period ending in 2019 reveals a relatively stable trend with minor fluctuations.

Trend Analysis

The average age ratio started at 55.66% in 2015, indicating that over half of the asset base was relatively aged. In 2016, this ratio decreased to 52.04%, representing a slight rejuvenation or replacement of older assets relative to the total asset base.

In the subsequent years, the ratio hovered around the mid-50s range, with 54.59% in 2017, 54.39% in 2018, and 54.88% in 2019. This suggests that after the initial decline in 2016, the average age of assets stabilized and experienced marginal increases and decreases that remained close to the historical average.

Insights

The data indicates a consistent approach to managing the asset portfolio, with no significant acceleration or deceleration in asset aging. The slight decrease in 2016 may reflect a period of asset replacement or investment in newer facilities, but the subsequent years show a tendency toward maintenance of existing asset age structure rather than drastic change.

This stability may imply a balanced capital expenditure strategy, aiming to sustain asset usefulness without aggressive expansion or teardown of older equipment.

Gross Property, Plant, and Equipment (PPE)

The gross value of property, plant, and equipment demonstrated a steady upward trend from 2015 to 2019. Beginning at approximately 54.6 billion US dollars in 2015, the gross PPE increased to around 67.3 billion US dollars by the end of 2019. This consistent growth indicates ongoing investment or acquisition of assets over the five-year period.

Accumulated Depreciation, Depletion, and Amortization

The accumulated depreciation, depletion, and amortization figures reveal a fluctuating but overall increasing pattern. The value started at roughly 30.4 billion US dollars in 2015, dipped in 2016 to about 27.9 billion, then climbed steadily through 2017 to 2019, reaching nearly 37 billion US dollars. The dip observed in 2016 could suggest unusual asset disposals or adjustments in accounting estimates during that year. From 2017 onward, the acceleration in accumulated depreciation aligns with the asset base growth as reflected in gross PPE.

Average Age Ratio

The average age ratio, expressed as a percentage, reflects the relative aging of the asset base and shows minor fluctuations throughout the five-year period. Starting at 55.66% in 2015, it declined to 52.04% in 2016, rose again to 54.59% in 2017, slightly dropped to 54.39% in 2018, and ended at 54.88% in 2019. This relatively stable ratio, hovering around the mid-50% range, suggests a balanced asset replacement or acquisition policy, maintaining the asset base age within a consistent bandwidth despite the growth in gross PPE.