This is a summary of the fourth quarter fiscal 2008 earnings call conducted by EOG Resources, Inc. (EOG) on February 5, 2009.

Management:
– Chairman & CEO: Mark Papa
– VP & CFO: Tim Driggers
– Senior EVP, Operations: Gary Thomas
– Senior EVP, Exploration: Loren Leiker

Key Investor Issues:

- For the fourth quarter, EOG reported net income available to common stockholders of $461 million or $1.84 per share and $2.4 billion or $9.72 per share for the full year 2008.
- EOG''s fourth quarter adjusted net income available to common stockholders was $186 million or $0.74 per share and $1.9 billion or $7.50 per share for the full year.
- EOG Bcf for the fourth quarter was $911 million and $4.6 billion for the full year.

Fourth Quarter Highlights:

There are three salient points that emanate from these fourth quarter and full year results:

- On a GAAP net income basis, the company achieved a 26% ROCE for 2008.
- On a non-GAAP net income basis which includes realized gains from hedging but eliminate the mark-to-market impact and a gain on sale of the Appalachian assets the company achieved a 20% ROCE.
- In February 2008, EOG provided 15% as the total company organic growth target, and it hit that number exactly for the full year.
- The company had no significant financial writedowns and no major reserve revisions.

The company replaced 228% of its production at a $2.60 per Mcfe all-in cost including total revisions and excluding gathering systems, processing plants and other expenditures.

The vast majority of EOG reserve adds occurred in the U.S., the significant contributions from the Barnett shale and the Rocky Mountain areas.

In the U.S., EOG replaced 270% of production at a $2.52 per Mcfe all-in cost excluding gathering systems, processing plant and other expenditures. The total price related reserve revisions were a negative 75 Bcfe. And if these are excluded EOG finding costs would be $2.50 per Mcfe.

Total company reserves increased 12% to 8.7 Bcfe.

The ratio of PUDs at year-end 2008 was 24%, essentially the same as last year. For the 21st consecutive year, the Galier McNaughton has done a complete engineering analysis of EOG reserves, and their overall number was within 5% of the internal estimate. Their analysis covered 79% of EOG reserves this year.

Regarding North American gas, EOG expect the gas recount to average 950 in 2009 versus 1,500 last year.

The company expects domestic gas production to begin to decline by mid-year and by year-end EOG expects it will be down about 2.5 Bcf a day from December 2008 levels.

EOG also expects Canadian production to decline about 0.8 Bcf a day this year. The recession induced industrial demand weakness will override the effect of the gas supply decline during 2009, but EOG expects the gas price to rebound an average $8 to $8.50 in 2010 as the supply declines and recovery and industrial demand take effect.

Regarding oil, EOG expects prices to be weak in the first half of this year and strengthen during the second half, ending the year at about $60 to $75 as the OPEC cuts affect inventories.

Given that macro outlook and current gas prices, the 2009 business plan is predicated on the following items:
- Continue to run the company as a business with returns as the main criteria and not volume growth.
- Not spend capital to grow volume and cram them into currently oversupplied gas and oil markets.
- Keep CapEx and cash flow roughly balanced. And fourth, continue to generate horizontal resource play ideas.

EOG expects to grow volumes at roughly a 3% rate this year, predicated on $5 gas and the company is taking particularly critical steps regarding Bakken oil production.

Even with reduced production from the Bakken, EOG expects to increase its 2009 total company crude oil condensate and NGL production by 14% year-over-year.

- Based on this sober outlook for 2009 gas prices, EOG is throttling back its gas drilling and expect to generate minus 1% North American gas growth this year.
- Last year, EOG averaged 73 total drilling rigs, and this year it''ll average about 45 rigs in its overall drilling program.