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).

Between 2015 and 2019, the financial performance of the organization underwent a significant transition from substantial net losses to consistent profitability. This trajectory was primarily driven by a robust expansion in total operating revenues, which nearly doubled from 8.76 billion US dollars in 2015 to 17.38 billion US dollars in 2019. The recovery is characterized by a sharp reduction in non-cash impairment charges and a steady increase in core commodity production value.

Revenue Stream Dynamics: The most significant growth occurred in crude oil and condensate revenues, which increased from 4.93 billion US dollars in 2015 to 9.61 billion US dollars in 2019. Additionally, revenues from gathering, processing, and marketing experienced substantial growth, rising from 2.25 billion US dollars to 5.36 billion US dollars over the same period. Natural gas and natural gas liquids also showed overall upward trends, although they remained secondary to crude oil in terms of total contribution.
Cost Structure and Gross Margin: Gross profit exhibited a strong upward trend, climbing from 6.58 billion US dollars in 2015 to a peak of 14.81 billion US dollars in 2018. While the cost of operating revenues increased from 2.18 billion US dollars to 2.60 billion US dollars, this growth was modest compared to the surge in top-line revenue, indicating an improvement in operational efficiency and margin expansion.
Operating Expenses and Impairments: The primary driver of early net losses was a massive impairment charge of 6.61 billion US dollars in 2015. Following this event, impairment charges decreased significantly, remaining below 621 million US dollars annually from 2016 through 2019. Other operating costs, such as depreciation, depletion, and amortization, remained relatively stable, ranging between 3.31 billion and 3.75 billion US dollars, suggesting a consistent level of capital asset consumption relative to production.
Profitability and Net Income Trends: The organization shifted from an operating loss of 6.69 billion US dollars in 2015 to an operating income of 3.70 billion US dollars by 2019. Net income followed a similar recovery path, moving from a loss of 4.52 billion US dollars in 2015 to a profit of 2.73 billion US dollars in 2019. The peak net income was achieved in 2018 at 3.42 billion US dollars.
Financial Obligations and Taxation: Net interest expenses showed a gradual decline from 237 million US dollars in 2015 to 185 million US dollars in 2019, indicating a reduction in the cost of debt or a decrease in total borrowings. The tax position also shifted; the organization benefited from tax credits and benefits between 2015 and 2017, transitioning to income tax provisions of approximately 810 to 822 million US dollars in 2018 and 2019 as profitability stabilized.

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EOG Resources Inc. (NYSE:EOG)

Income Statement