Name: EOG Resources Inc. (NYSE:EOG) | Common-Size Income Statement
Creator: Stock Analysis on Net

Common-Size Income Statement

EOG Resources Inc., common-size consolidated income statement

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Crude oil and condensate	55.31%	55.09%	55.82%	56.43%	56.35%
Natural gas liquids	4.52%	6.53%	6.51%	5.72%	4.65%
Natural gas	6.81%	7.53%	8.23%	9.70%	12.12%
Gains (losses) on mark-to-market commodity derivative contracts	1.04%	-0.96%	0.18%	-1.30%	0.71%
Gathering, processing and marketing	30.84%	30.28%	29.43%	25.70%	25.73%
Gains (losses) on asset dispositions, net	0.71%	1.01%	-0.88%	2.69%	-0.10%
Other, net	0.77%	0.52%	0.73%	1.06%	0.55%
Operating revenues and other	100.00%	100.00%	100.00%	100.00%	100.00%
Lease and well	-7.87%	-7.42%	-9.32%	-12.12%	-13.50%
Transportation costs	-4.36%	-4.32%	-6.61%	-9.99%	-9.70%
Gathering and processing costs	-2.76%	-2.53%	-1.33%	-1.61%	-1.67%
Cost of operating revenues	-14.99%	-14.28%	-17.25%	-23.72%	-24.87%
Gross profit	85.01%	85.72%	82.75%	76.28%	75.13%
Exploration costs	-0.80%	-0.86%	-1.30%	-1.63%	-1.71%
Dry hole costs	-0.16%	-0.03%	-0.04%	-0.14%	-0.17%
Impairments	-2.98%	-2.01%	-4.28%	-8.11%	-75.52%
Marketing costs	-30.79%	-30.12%	-29.71%	-26.24%	-27.25%
Depreciation, depletion and amortization	-21.57%	-19.89%	-30.42%	-46.45%	-37.84%
General and administrative	-2.82%	-2.47%	-3.88%	-5.16%	-4.19%
Taxes other than income	-4.60%	-4.47%	-4.86%	-4.57%	-4.82%
Operating income (loss)	21.28%	25.87%	8.27%	-16.02%	-76.35%
Other income (expense), net	0.18%	0.10%	0.08%	-0.66%	0.02%
Income (loss) before interest expense and income taxes	21.46%	25.97%	8.35%	-16.68%	-76.33%
Net interest expense	-1.07%	-1.42%	-2.45%	-3.68%	-2.71%
Income (loss) before income taxes	20.40%	24.55%	5.90%	-20.36%	-79.04%
Income tax (provision) benefit	-4.66%	-4.76%	17.14%	6.02%	27.37%
Net income (loss)	15.74%	19.79%	23.04%	-14.33%	-51.66%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

The financial performance from 2015 to 2019 is characterized by a significant recovery from deep losses to consistent profitability, driven primarily by the reduction of non-cash impairment charges and improved operational efficiencies.

Revenue Mix and Diversification: Crude oil and condensate remained the primary revenue driver, maintaining a stable contribution between 55% and 56% of total operating revenues throughout the period. A notable shift occurred in the natural gas segment, which saw its contribution decline steadily from 12.12% in 2015 to 6.81% in 2019. Conversely, gathering, processing, and marketing activities grew as a proportion of total revenue, increasing from 25.73% in 2015 to 30.84% in 2019, indicating a strategic shift or growth in midstream-related activities.
Operating Cost Efficiency: The cost of operating revenues decreased significantly, falling from 24.87% of total revenues in 2015 to 14.99% in 2019. This improvement was largely supported by a reduction in lease and well costs and a substantial drop in transportation costs, which fell from 9.70% to 4.36% over the five-year period. Consequently, the gross profit margin expanded from 75.13% in 2015 to a peak of 85.72% in 2018, before stabilizing at 85.01% in 2019.
Operating Expense Trends: The most volatile element of the income statement was impairments, which reached a peak of 75.52% of revenue in 2015, causing a severe operating loss. These charges normalized drastically, falling to 2.98% by 2019. Depreciation, depletion, and amortization also showed significant fluctuation, peaking at 46.45% in 2016 before trending downward to 21.57% in 2019. General and administrative expenses demonstrated improved lean management, decreasing from a high of 5.16% in 2016 to 2.82% in 2019.
Profitability and Net Income: Operating income underwent a complete reversal, moving from a loss of 76.35% of revenue in 2015 to a positive margin of 21.28% in 2019. Net interest expense also trended downward, improving from 3.68% in 2016 to 1.07% in 2019, suggesting a stronger balance sheet or reduced debt burden relative to revenue. The final net income margin reflects this overall trajectory, transitioning from a deficit of 51.66% in 2015 to a positive 15.74% in 2019.

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