This summary is based on the second quarter fiscal 2007 earnings call conducted by EOG Resources, Inc. (EOG: chart) on August 3, 2007.

Chairman and CEO: Mark G. Papa
VP and CFO: Timothy K. Driggers
Senior EVP, Exploration Loren M. Leiker

Key Investors Issues

- Capital expenditure increased from $3.4 billion to $3.6 billion with the extra $200 million devoted to the North Dakota drilling and infrastructure and Barnett infrastructure.
- Incremental volume growth from 10% to 11.5% is comprised primarily of domestic oil and NGOs.
- Domestic oil play in North Dakota is generating high rate wells and 100% direct reinvestment rate of return.
- New capital plan to take advantage of the MLP arbitrage at high 2007 and 2008 production growth rates.

Second Quarter Highlights

Net income available fell 7% from $329.6 million a year ago to $306 million.

- Earnings per share were down 10 cents from $1.34 a share in 2006 to $1.24 a share.
- Operating revenues increased from $919 million in 2006 to $1 billion.

Discretionary cash flow was $736 million, or $2.98 per share, from $621 million, or $2.53 per share a year ago.

- Exploration and development expenditures, including asset retirement obligations, were $1.827 billion to $1.5 million of acquisition.
- Debt outstanding was $884 million and the debt to total cap ratio was 12%.

- Increase in production growth estimates from 10% for 11.5% organic due to higher domestic crude oil and NGO production.
- Production mix includes both 17% organic North American gas growth and 17% total North American growth.

In Appalachia, a shallow gas asset was sold in order to focus capital expenditure on larger potential plays.

- Proceeds from this asset sale will be used to execute the capital program while maintaining the lowest net debt ratio.
- Disposal will not affect previously disclosed 2008 production growth target of 9%.

- Organic production growth generated was 13%, highlighted by 24% organic gas growth in the U.S., driven primarily by production in the Barnett.
- Domestic oil production was up 20% from the prior year.

Well Highlights

North Dakota Bakken Horizontal Oil Play:

- By applying Barnett Shale completion techniques relative play economics have been raised to a standard, exceeding those of the Barnett Shale.
- Now producing initial rates of 1,500 to 1,600 barrels of oil per day from initial rates of 400 to 500 barrels of oil a day.

- Well costs $5.75 million, recovered 700,000 barrels of oil a day net and generates a 100% direct after tax rate of return, i.e. $7.50 barrel net direct finding costs.
- Currently four rigs are running and plans are to ramp up to eight rigs in early 2008.

- The company has a 75 % working interest in the Zacher 1-24H that was completed in June with a peak production rate of 1,774 barrels of oil per day (Bopd), gross.
- The company has a 75 % working interest in the Hoff 1-10H, which began flowing to sales in June at a peak rate of 2,034 Bopd, gross.
- The company holds a 67 % working interest in the N&D 1-05H, which was completed in July at an initial peak production rate of 1,610 Bopd, gross.

Fort Worth Barnett:

- Performance exceeded previously stated production target of $280 MMcfe per day.
- This is the highest ROR large natural gas asset in North America because of its unique ratio of well cost reserves and decline characteristics.

- The company completed the Hughes Unit #1H. The well, which EOG has an 86% interest, flowed to sales at a peak production rate of 12 MMcfd, gross.
- The wholly owned Eagle Ford C Unit #4H and #5H were completed in June with initial production rates of 6.7 and 7.7 MMcfd, respectively.

- The company completed the three Maples Unit wells and these began flowing to sales at initial production rates ranging from 5.8 to 9.9 MMcfd, gross.