Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

EOG Resources Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Crude oil and condensate	9,612,532)	9,517,440)	6,256,396)	4,317,341)	4,934,562)
Natural gas liquids	784,818)	1,127,510)	729,561)	437,250)	407,658)
Natural gas	1,184,095)	1,301,537)	921,934)	742,152)	1,061,038)
Gains (losses) on mark-to-market commodity derivative contracts	180,275)	(165,640)	19,828)	(99,608)	61,924)
Gathering, processing and marketing	5,360,282)	5,230,355)	3,298,087)	1,966,259)	2,253,135)
Gains (losses) on asset dispositions, net	123,613)	174,562)	(99,096)	205,835)	(8,798)
Other, net	134,358)	89,635)	81,610)	81,403)	47,909)
Operating revenues and other	17,379,973)	17,275,399)	11,208,320)	7,650,632)	8,757,428)
Lease and well	(1,366,993)	(1,282,678)	(1,044,847)	(927,452)	(1,182,282)
Transportation costs	(758,300)	(746,876)	(740,352)	(764,106)	(849,319)
Gathering and processing costs	(479,102)	(436,973)	(148,775)	(122,901)	(146,156)
Cost of operating revenues	(2,604,395)	(2,466,527)	(1,933,974)	(1,814,459)	(2,177,757)
Gross profit	14,775,578)	14,808,872)	9,274,346)	5,836,173)	6,579,671)
Exploration costs	(139,881)	(148,999)	(145,342)	(124,953)	(149,494)
Dry hole costs	(28,001)	(5,405)	(4,609)	(10,657)	(14,746)
Impairments	(517,896)	(347,021)	(479,240)	(620,267)	(6,613,546)
Marketing costs	(5,351,524)	(5,203,243)	(3,330,237)	(2,007,635)	(2,385,982)
Depreciation, depletion and amortization	(3,749,704)	(3,435,408)	(3,409,387)	(3,553,417)	(3,313,644)
General and administrative	(489,397)	(426,969)	(434,467)	(394,815)	(366,594)
Taxes other than income	(800,164)	(772,481)	(544,662)	(349,710)	(421,744)
Operating income (loss)	3,699,011)	4,469,346)	926,402)	(1,225,281)	(6,686,079)
Other income (expense), net	31,385)	16,704)	9,152)	(50,543)	1,916)
Income (loss) before interest expense and income taxes	3,730,396)	4,486,050)	935,554)	(1,275,824)	(6,684,163)
Net interest expense	(185,129)	(245,052)	(274,372)	(281,681)	(237,393)
Income (loss) before income taxes	3,545,267)	4,240,998)	661,182)	(1,557,505)	(6,921,556)
Income tax (provision) benefit	(810,357)	(821,958)	1,921,397)	460,819)	2,397,041)
Net income (loss)	2,734,910)	3,419,040)	2,582,579)	(1,096,686)	(4,524,515)

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).

Operating Revenues and Components: Operating revenues exhibited a general upward trend from 2015 to 2019, increasing significantly from approximately $8.76 billion in 2015 to around $17.38 billion by 2019. This growth was primarily driven by a rise in crude oil and condensate revenues, which surged from $4.93 billion in 2015 to about $9.61 billion in 2019. Natural gas liquids revenues showed substantial growth between 2015 and 2018, peaking at $1.13 billion in 2018 before declining to $784.8 million in 2019. Natural gas revenues fluctuated, decreasing in 2016, then increasing through 2018 and experiencing a slight decline in 2019. Gains and losses on mark-to-market commodity derivative contracts were volatile, with losses in 2016 and 2018 and gains in other years, indicating exposure to commodity price movements.
Cost Structure: Total cost of operating revenues increased over the period, from about $2.18 billion in 2015 to $2.60 billion in 2019. Lease and well costs remained consistently the largest single cost category within operating expenses, growing steadily each year from $1.18 billion in 2015 to $1.37 billion in 2019. Transportation costs showed modest fluctuations but remained relatively stable around $750 million annually. Gathering and processing costs increased sharply after 2017, from $148 million in 2017 to nearly $480 million in 2019. Marketing costs escalated significantly from $2.39 billion in 2015 to $5.35 billion in 2019, reflecting increased scale or market activity. Depreciation, depletion, and amortization expenses were relatively stable but showed a slight increasing trend in 2019 after a dip in prior years. General and administrative expenses showed a gradual increase throughout the period.
Profitability Metrics: Gross profit experienced a strong increase overall, rising from approximately $6.58 billion in 2015 to nearly $14.78 billion in 2019, indicating improved operational efficiency or higher product prices. Operating income/loss shifted from a significant loss of approximately $6.69 billion in 2015 to a positive operating income of $3.70 billion in 2019, reflecting considerable improvement in core operations. This transition was supported by a notable reduction in impairments expense, from a high of $6.61 billion in 2015 down to levels below $600 million in subsequent years. Income (loss) before income taxes turned positive from 2017 onward after initial losses in 2015 and 2016.
Income Tax and Net Income: The income tax provision displayed variability, with strong tax benefits recorded in 2015 through 2017, turning to tax expenses in 2018 and 2019. Net income improved significantly over the five-year span, moving from a net loss of approximately $4.52 billion in 2015 to a net profit of about $2.73 billion in 2019. This recovery reflects the combined effects of improved revenue, controlled costs, and reduced impairments.
Other Observations: Gains and losses on asset dispositions showed variability, with some years presenting gains and others losses, without a clear trend. Exploration and dry hole costs remained relatively stable, with minor fluctuations suggesting consistent investment in exploration activities. Net interest expense declined in 2019 compared to earlier years, potentially indicating debt reduction or refinancing benefits. Other income (expense) remained relatively minor, contributing moderately positive results in later years.

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EOG Resources Inc. (NYSE:EOG)

Income Statement