OREANDA-NEWS. EOG Resources, Inc. today reported second quarter 2014 net income of USD 706.4 million, or USD 1.29 per share. This compares to second quarter 2013 net income of USD 659.7 million, or USD 1.21 per share.

Adjusted non-GAAP net income for the second quarter 2014 was USD 796.0 million, or USD 1.45 per share, and adjusted non-GAAP net income for the same prior year period was USD 573.8 million, or USD 1.05 per share.

Consistent with some analysts' practice of matching realizations to settlement months and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income for the second quarter 2014 excluded a previously disclosed non-cash net loss of USD 229.3 million (USD 147.0 million after-tax, or USD 0.27 per share) on the mark-to-market of financial commodity derivative contracts and net gains on asset dispositions of USD 3.9 million (USD 1.7 million net of tax, or USD 0.01 per share). During the second quarter 2014, the net cash outflow related to settlements of financial commodity derivative contracts was USD 86.9 million (USD 55.7 million after-tax, or USD 0.10 per share). (Please refer to the attached tables for the reconciliation of adjusted non-GAAP net income to GAAP net income.)

For the first half 2014, EOG posted strong financial metrics driven by reinvestment of capital into high rate-of-return drilling opportunities. Discretionary cash flow increased 22 percent and adjusted EBITDAX advanced 24 percent. In addition, adjusted non-GAAP earnings per share increased 46 percent, compared to the first half 2013. (Please refer to the attached tables for the reconciliation of non-GAAP discretionary cash flow to net cash provided by operating activities (GAAP), adjusted non-GAAP EBITDAX to income before interest expense and income taxes (GAAP) and adjusted non-GAAP net income to GAAP net income.)

In the U.S., crude oil and condensate production increased 33 percent in the second quarter 2014, compared to the same prior year period. Production gains from the South Texas Eagle Ford and North Dakota Bakken led EOG's U.S. crude oil production growth. Driven by the South Texas Eagle Ford and the Permian Basin, natural gas liquids (NGLs) production increased 22 percent, compared to the second quarter 2013. Natural gas production slightly increased due to EOG's Trinidad operations and strong associated gas production in the U.S. Overall, total company production increased 17 percent.