This summary is based on the fourth quarter fiscal 2007 earnings call conducted by EOG Resources Inc. (EOG: chart) on February 8, 2008.

Management:

Chairman and CEO: Mark G. Papa
VP and CFO: Timothy K. Driggers

Key Investor Issues:

- Full year EPS dropped from $5.24 in 2006 to $4.37 fiscal year 2007.
- Full year net operating revenues rose 7% to $4.190 million from $3.913 million past year.
- The common stock dividend was increased by 33% to 48 cents per share from last year.
- Preferred stock dividends were 39% lower at $6.7 million versus $11 million in 2006.

Fourth-Quarter Financial Highlights

The company reported fourth quarter net income of $358 million or $1.44 per share versus $237.2 million or 96 cents per share last year quarter.

The fourth quarter results included a tax benefit of $30.3 million, or 12 cents relating to a Canadian federal tax rate reduction and a previously disclosed $29.1 million after tax net gain on the mark-to-market of financial commodity price transactions.

The net cash realized from financial commodity contracts was $18.5 million after tax or 8 cents per share whilst the quarter adjusted non-GAAP net income to common shareholders was $319.4 million, or $1.29 per share versus the last year quarter figure of $252 million, or $1.02 per share.

The fourth quarter total exploration and development expenditures were $997 million.

This included asset retirement obligations and $18 million worth of acquisitions. The additional expenditures relating to gathering systems, processing plants and other property and equipment were $73 million. The full year exploration and development expenditures were $3.6 billion.

- The capitalized quarter interest was $8.6 million with the full year figure being $29.3 million.

The management declared a fourth quarter dividend on the common stock of 12 cents per share.

The dividend is payable on April 30, 2008 to registered shareholders as of April 16, 2008.

Fiscal Year 2007 Financial Highlights:

The total company production grew by 11% in fiscal year 2007.

- The growth in production was helped by operations at Fort Worth and Rocky Mountain.
- Natural gas production increased by 19% in the U.S. and 10% overall due to good performance from Forth Worth, East Texas and Rocky Mountain areas.

- Crude oil and condensate production firmed 19% in the U.S. and 11% overall. The most significant increase was in North Dakota Bakken.
- The natural gas liquid volumes increased by 31% against the 2006 levels, again helped by excellent operations from Forth Worth, South Texas and Rocky Mountain operating areas.

The total year end reserves were estimated at about 7.7 trillion cubic feet equivalent.

This represents an increase of 944 billion cubic feet equivalent (Bcfe), or 14% stronger than year-end fiscal 2006. The management reported that total reserve replacement from all sources was 248% at a total reserve replacement cost of $2.24 per thousand cubic feet equivalent (Mcfe). This is excluding gathering systems, processing plant and other expenditures.