The results for the first quarter 2009 included a previously disclosed $351.4 million ($226.1 million after tax, or $0.90 per share) net gain on the mark-to-market of financial commodity transactions. During the quarter, the net cash inflow related to financial commodity contracts was $311.0 million ($200.1 million after tax, or $0.80 per share). Consistent with some analysts’ practice of matching realizations to settlement months, adjusted non-GAAP net income available to common stockholders for the quarter was $132.7 million, or $0.53 per share. Adjusted non-GAAP net income available to common stockholders for the first quarter 2008 was $473.0 million, or $1.89 per share.

Operational Highlights and Targets

EOG Resources increased its full year 2009 total company organic production growth target from 3% to 5.5% based on first quarter operational results and stronger than anticipated domestic crude oil and natural gas liquids volumes. During the first quarter, crude oil production in the US increased 47% over the same period last year. The higher level of total liquids recorded during the first quarter and projected for the second half of 2009 is primarily due to higher than expected production from the North Dakota Bakken and the Fort Worth Barnett Shale. In addition, EOG Resources projects greater natural gas production from its Trinidad operations due to reduced plant downtime. EOG Resources expects to achieve its new production target while maintaining its previously announced total capital expenditure budget of $3.1 billion.

Based on economic investments at current crude oil and natural gas prices, we are increasing our total 2009 production growth target to 5.5%, all organic. EOG Resources is positioned to achieve total company liquids growth of 22%, to about 75,000 barrels per day in 2009. The majority of the increases will come from US crude oil and natural gas liquids production during the second half of the year, said Mark G. Papa, chairman and chief executive officer. With this momentum, we are targeting total liquids growth of 20%, to roughly 90,000 barrels per day in 2010.

EOG Resources plans to resume full crude oil production in the North Dakota Bakken Parshall field by July 2009. The completion of wells drilled during EOG Resources’ winter program also is expected to commence early in the second half of 2009. To transport its Bakken crude oil production closer to markets, EOG Resources is moving forward with a project that would utilize rail to move volumes from North Dakota to a terminal in Oklahoma by early 2010.

By applying enhanced horizontal drilling and completion technology, EOG Resources has drilled and completed 29 successful horizontal crude oil wells in the Waskada Field in Manitoba, Canada. Recent well results indicate that EOG Resources’ current acreage position contains about 25 million barrels of net recoverable crude oil reserves.

EOG Resources is continuing its Fort Worth Barnett Shale natural gas development drilling program in Johnson and Hill Counties. With more than 750 remaining drilling locations in Johnson county alone, EOG Resources can remain active in the prolific play for several years.

EOG Resources estimates its total production from the Barnett Shale natural gas and Combo plays will average about 460 million cubic feet equivalent per day (MMcfed) in 2009, increasing to 700 MMcfed in 2012, contingent on hydrocarbon prices recovering from current levels.

We are optimistic that crude oil prices will strengthen in the latter part of 2009 and natural gas prices will recover in 2010, said Papa.

Given our rich inventory of prospects, we expect our production profile to increase during the second half of 2009, positioning EOG Resources to once again deliver double-digit production growth in 2010.