Operating Profit Margin
since 2005
Calculation
EOG Resources Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Operating revenues and other1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 21.28% | = | 100 | × | 3,699,011) | ÷ | 17,379,973) |
| Dec 31, 2018 | 25.87% | = | 100 | × | 4,469,346) | ÷ | 17,275,399) |
| Dec 31, 2017 | 8.27% | = | 100 | × | 926,402) | ÷ | 11,208,320) |
| Dec 31, 2016 | -16.02% | = | 100 | × | (1,225,281) | ÷ | 7,650,632) |
| Dec 31, 2015 | -76.35% | = | 100 | × | (6,686,079) | ÷ | 8,757,428) |
| Dec 31, 2014 | 29.06% | = | 100 | × | 5,241,823) | ÷ | 18,035,340) |
| Dec 31, 2013 | 25.37% | = | 100 | × | 3,675,211) | ÷ | 14,487,118) |
| Dec 31, 2012 | 12.67% | = | 100 | × | 1,479,797) | ÷ | 11,682,636) |
| Dec 31, 2011 | 20.87% | = | 100 | × | 2,113,309) | ÷ | 10,126,115) |
| Dec 31, 2010 | 8.58% | = | 100 | × | 523,319) | ÷ | 6,099,896) |
| Dec 31, 2009 | 20.28% | = | 100 | × | 970,841) | ÷ | 4,786,959) |
| Dec 31, 2008 | 52.86% | = | 100 | × | 3,767,185) | ÷ | 7,127,143) |
| Dec 31, 2007 | 39.33% | = | 100 | × | 1,648,396) | ÷ | 4,190,791) |
| Dec 31, 2006 | 48.55% | = | 100 | × | 1,895,426) | ÷ | 3,904,415) |
| Dec 31, 2005 | 55.02% | = | 100 | × | 1,991,815) | ÷ | 3,620,213) |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The operating profit margin exhibits significant volatility over the observed 15-year period, characterized by dramatic fluctuations that suggest high sensitivity to external market conditions and operational shifts. While the period began with high profitability, it was punctuated by a severe downturn in the mid-2010s before returning to a stable positive range.
- Initial Volatility and Decline (2005–2010)
- The period began with a peak operating profit margin of 55.02% in 2005, which trended downward to 39.33% by 2007. A brief recovery occurred in 2008, with the margin rising to 52.86%, followed by a sharp decline to 20.28% in 2009 and a low of 8.58% in 2010. This indicates a period of inconsistent operational efficiency despite varying revenue levels.
- Recovery and Expansion (2011–2014)
- A sustained recovery phase is observed between 2011 and 2014. Operating margins climbed from 20.87% in 2011 to 29.06% in 2014. This growth coincided with a substantial increase in operating revenues, which rose from approximately 10.1 billion US dollars in 2011 to a peak of 18.0 billion US dollars in 2014, demonstrating improved scalability and profitability.
- Operational Crisis and Negative Margins (2015–2016)
- A severe contraction occurred in 2015 and 2016, where the company transitioned to negative operating income. The operating profit margin plummeted to -76.35% in 2015 and remained negative at -16.02% in 2016. This represents the most significant volatility in the dataset, reflecting a period of substantial operational losses.
- Stabilization and Recent Trends (2017–2019)
- Profitability returned in 2017 with a margin of 8.27%, followed by a strong rebound to 25.87% in 2018. By 2019, the margin settled at 21.28%. The operating revenues during this period remained high, stabilizing around 17.3 billion US dollars, suggesting a return to a sustainable operational baseline.
Overall, the financial trajectory reveals a cycle of expansion and contraction. The company demonstrated the ability to recover from deep negative margins to restore profitability levels consistent with its performance in the early 2010s.
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