EOG Resources Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income (loss)	2,734,910)	3,419,040)	2,582,579)	(1,096,686)	(4,524,515)
Net noncash charges	4,919,735)	4,880,756)	2,737,661)	3,555,981)	8,765,331)
Changes in components of working capital and other assets and liabilities	508,535)	(531,188)	(1,054,904)	(100,232)	(645,651)
Net cash provided by operating activities	8,163,180)	7,768,608)	4,265,336)	2,359,063)	3,595,165)
Net cash paid for interest, net of capitalized interest, net of tax¹	143,902)	189,806)	172,066)	177,454)	145,179)
Interest expense, capitalized, net of tax²	29,538)	19,113)	17,143)	22,292)	27,351)
Additions to oil and gas properties	(6,151,885)	(5,839,294)	(3,950,918)	(2,489,756)	(4,725,150)
Additions to other property, plant and equipment	(270,641)	(237,181)	(173,324)	(93,039)	(288,013)
Free cash flow to the firm (FCFF)	1,914,094)	1,901,052)	330,303)	(23,986)	(1,245,468)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the EOG Resources Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	EOG Resources Inc. FCFF increased from 2017 to 2018 and from 2018 to 2019.

EOG Resources Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR¹	22.86%	21.98%	37.50%	29.59%	34.63%
Interest Paid, Net of Tax
Net cash paid for interest, net of capitalized interest, before tax	186,546)	243,279)	275,305)	252,030)	222,088)
Less: Net cash paid for interest, net of capitalized interest, tax²	42,644)	53,473)	103,239)	74,576)	76,909)
Net cash paid for interest, net of capitalized interest, net of tax	143,902)	189,806)	172,066)	177,454)	145,179)
Interest Costs Capitalized, Net of Tax
Interest expense, capitalized, before tax	38,292)	24,497)	27,429)	31,660)	41,841)
Less: Interest expense, capitalized, tax³	8,754)	5,384)	10,286)	9,368)	14,490)
Interest expense, capitalized, net of tax	29,538)	19,113)	17,143)	22,292)	27,351)

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).

¹ See details »

² 2019 Calculation
Net cash paid for interest, net of capitalized interest, tax = Net cash paid for interest, net of capitalized interest × EITR
= 186,546 × 22.86% = 42,644

³ 2019 Calculation
Interest expense, capitalized, tax = Interest expense, capitalized × EITR
= 38,292 × 22.86% = 8,754

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EOG Resources Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	38,070,738)
Free cash flow to the firm (FCFF)	1,914,094)
Valuation Ratio
EV/FCFF	19.89
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	15.53
ConocoPhillips	17.70
Exxon Mobil Corp.	14.33
Marathon Petroleum Corp.	7.16
Occidental Petroleum Corp.	12.39
Valero Energy Corp.	7.37
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	36.31
EV/FCFF, Industry
Energy	36.09

Based on: 10-K (reporting date: 2019-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

EOG Resources Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	38,070,738)	59,000,426)	67,432,214)	61,864,092)	43,608,770)
Free cash flow to the firm (FCFF)²	1,914,094)	1,901,052)	330,303)	(23,986)	(1,245,468)
Valuation Ratio
EV/FCFF³	19.89	31.04	204.15	—	—
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	16.67	—	—	—	—
ConocoPhillips	13.21	—	—	—	—
Exxon Mobil Corp.	44.38	—	—	—	—
Marathon Petroleum Corp.	13.14	—	—	—	—
Occidental Petroleum Corp.	45.65	—	—	—	—
Valero Energy Corp.	9.96	—	—	—	—
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	21.17	—	—	—	—
EV/FCFF, Industry
Energy	21.44	—	—	—	—

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).

¹ See details »

² See details »

³ 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 38,070,738 ÷ 1,914,094 = 19.89

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	EOG Resources Inc. EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019.

EOG Resources Inc. (NYSE:EOG)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical