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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM10-Q
 
(Mark One)

           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
or
          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 1-9743
 
EOG RESOURCES, INC.
(Exact name of registrant as specified in its charter)
Delaware 47-0684736
(State or other jurisdiction
 of incorporation or organization)
 (I.R.S. Employer
Identification No.)
1111 Bagby, Sky Lobby 2, Houston, Texas 77002
(Address of principal executive offices)       (Zip Code)
713-651-7000
(Registrant's telephone number, including area code)

    Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareEOGNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes   No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer     Accelerated filer     Non-accelerated filer 
Smaller reporting company    Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
Yes   No 

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
Title of each class Number of shares
Common Stock, par value $0.01 per share 586,044,522 (as of July 28, 2022)

    


EOG RESOURCES, INC.

TABLE OF CONTENTS


PART I.FINANCIAL INFORMATIONPage No.
   
 ITEM 1.Financial Statements (Unaudited) 
    
  
    
  
    
  
    
  
    
 ITEM 2.
    
 ITEM 3.
    
 ITEM 4.
    
PART II.OTHER INFORMATION 
    
 ITEM 1.
 ITEM 2.
    
 ITEM 4.
    
 ITEM 6.
    
 
    
-2-

    


PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
EOG RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In Millions, Except Per Share Data)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2022202120222021
Operating Revenues and Other
Crude Oil and Condensate$4,699 $2,699 $8,588 $4,950 
Natural Gas Liquids777 367 1,458 681 
Natural Gas1,000 404 1,716 1,029 
Losses on Mark-to-Market Financial Commodity Derivative Contracts(1,377)(427)(4,197)(794)
Gathering, Processing and Marketing
2,169 1,022 3,638 1,870 
Gains on Asset Dispositions, Net97 51 122 45 
Other, Net42 23 65 52 
Total7,407 4,139 11,390 7,833 
Operating Expenses    
Lease and Well324 270 642 540 
Transportation Costs244 214 472 416 
Gathering and Processing Costs152 128 296 267 
Exploration Costs35 35 80 68 
Dry Hole Costs20 13 23 24 
Impairments91 44 146 88 
Marketing Costs2,127 991 3,410 1,829 
Depreciation, Depletion and Amortization911 914 1,758 1,814 
General and Administrative128 120 252 230 
Taxes Other Than Income472 239 862 454 
Total4,504 2,968 7,941 5,730 
Operating Income2,903 1,171 3,449 2,103 
Other Income (Expense), Net27 (2)26 (6)
Income Before Interest Expense and Income Taxes2,930 1,169 3,475 2,097 
Interest Expense, Net48 45 96 92
Income Before Income Taxes2,882 1,124 3,379 2,005 
Income Tax Provision644 217 751 421 
Net Income$2,238 $907 $2,628 $1,584 
Net Income Per Share    
Basic$3.84 $1.56 $4.52 $2.73 
Diluted$3.81 $1.55 $4.48 $2.72 
Average Number of Common Shares    
Basic583 580 582 580 
Diluted588 584 587 583 
Comprehensive Income    
Net Income$2,238 $907 $2,628 $1,584 
Other Comprehensive Income (Loss)    
Foreign Currency Translation Adjustments2 (1)1 (3)
Other, Net of Tax(1) (1) 
Other Comprehensive Income (Loss)1 (1) (3)
Comprehensive Income$2,239 $906 $2,628 $1,581 


The accompanying notes are an integral part of these condensed consolidated financial statements.
-3-

    


EOG RESOURCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions, Except Share Data)
(Unaudited)
June 30,
2022
December 31,
2021
ASSETS
Current Assets
Cash and Cash Equivalents$3,073 $5,209 
Accounts Receivable, Net3,735 2,335 
Inventories739 584 
Assets from Price Risk Management Activities1  
Other605 456 
Total8,153 8,584 
Property, Plant and Equipment  
Oil and Gas Properties (Successful Efforts Method)66,098 67,644 
Other Property, Plant and Equipment4,862 4,753 
Total Property, Plant and Equipment70,960 72,397 
Less:  Accumulated Depreciation, Depletion and Amortization(42,113)(43,971)
Total Property, Plant and Equipment, Net28,847 28,426 
Deferred Income Taxes12 11 
Other Assets1,127 1,215 
Total Assets$38,139 $38,236 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities  
Accounts Payable$2,896 $2,242 
Accrued Taxes Payable594 518 
Dividends Payable437 436 
Liabilities from Price Risk Management Activities79 269 
Current Portion of Long-Term Debt1,282 37 
Current Portion of Operating Lease Liabilities216 240 
Other264 300 
Total5,768 4,042 
Long-Term Debt3,809 5,072 
Other Liabilities2,067 2,193 
Deferred Income Taxes4,183 4,749 
Commitments and Contingencies (Note 8)
Stockholders' Equity  
 Common Stock, $0.01 Par, 1,280,000,000 Shares Authorized and 586,391,670 Shares Issued at June 30, 2022 and 585,521,512 Shares Issued at December 31, 2021
206 206 
Additional Paid in Capital6,128 6,087 
Accumulated Other Comprehensive Loss(12)(12)
Retained Earnings16,028 15,919 
 Common Stock Held in Treasury, 344,705 Shares at June 30, 2022 and 257,268 Shares at December 31, 2021
(38)(20)
Total Stockholders' Equity22,312 22,180 
Total Liabilities and Stockholders' Equity$38,139 $38,236 

The accompanying notes are an integral part of these condensed consolidated financial statements.
-4-

    


EOG RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In Millions, Except Per Share Data)
(Unaudited)
 Common
Stock
Additional
Paid In
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Common
Stock
Held In
Treasury
Total
Stockholders'
Equity
Balance at March 31, 2022$206 $6,095 $(13)$15,283 $(31)$21,540 
Net Income— — — 2,238 — 2,238 
Common Stock Dividends Declared, $2.55 Per Share
— — — (1,493)— (1,493)
Other Comprehensive Income— — 1 — — 1 
Common Stock Issued Under Stock Plans— 13 — — — 13 
Change in Treasury Stock - Stock Compensation Plans, Net
— (11)— — (6)(17)
Restricted Stock and Restricted Stock Units, Net
— 1 — — (1) 
Stock-Based Compensation Expenses— 30 — — — 30 
Treasury Stock Issued as Compensation— — — — —  
Balance at June 30, 2022$206 $6,128 $(12)$16,028 $(38)$22,312 

 Common
Stock
Additional
Paid In
Capital
Accumulated
Other
Comprehensive
Loss
Retained
Earnings
Common
Stock
Held In
Treasury
Total
Stockholders'
Equity
Balance at March 31, 2021$206 $5,979 $(14)$14,606 $(15)$20,762 
Net Income— — — 907 — 907 
Common Stock Dividends Declared, $1.4125 Per Share
— — — (824)— (824)
Other Comprehensive Loss— — (1)— — (1)
Common Stock Issued Under Stock Plans— 9 — — — 9 
Change in Treasury Stock - Stock Compensation Plans, Net
— (2)— — (1)(3)
Restricted Stock and Restricted Stock Units, Net
— — — — —  
Stock-Based Compensation Expenses— 31 — — — 31 
Treasury Stock Issued as Compensation— — — — —  
Balance at June 30, 2021$206 $6,017 $(15)$14,689 $(16)$20,881 

The accompanying notes are an integral part of these condensed consolidated financial statements.


-5-

    


EOG RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In Millions, Except Per Share Data)
(Unaudited)
 Common
Stock
Additional
Paid In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
Common
Stock
Held In
Treasury
Total
Stockholders'
Equity
Balance at December 31, 2021$206 $6,087 $(12)$15,919 $(20)$22,180 
Net Income— — — 2,628 — 2,628 
Common Stock Dividends Declared, $4.30 Per Share
— — — (2,519)— (2,519)
Other Comprehensive Loss— —  — —  
Common Stock Issued Under Stock Plans— 13 — — — 13 
Change in Treasury Stock - Stock Compensation Plans, Net
— (35)— — (20)(55)
Restricted Stock and Restricted Stock Units, Net
— (2)— — 2  
Stock-Based Compensation Expenses— 65 — — — 65 
Treasury Stock Issued as Compensation— — — — —  
Balance at June 30, 2022$206 $6,128 $(12)$16,028 $(38)$22,312 

 Common
Stock
Additional
Paid In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Retained
Earnings
Common
Stock
Held In
Treasury
Total
Stockholders'
Equity
Balance at December 31, 2020$206 $5,945 $(12)$14,170 $(7)$20,302 
Net Income— — — 1,584 — 1,584 
Common Stock Dividends Declared, $1.825 Per Share
— — — (1,065)— (1,065)
Other Comprehensive Loss— — (3)— — (3)
Common Stock Issued Under Stock Plans— 9 — — — 9 
Change in Treasury Stock - Stock Compensation Plans, Net
— (2)— — (10)(12)
Restricted Stock and Restricted Stock Units, Net
— (1)— — 1  
Stock-Based Compensation Expenses— 66 — — — 66 
Treasury Stock Issued as Compensation— — — — —  
Balance at June 30, 2021$206 $6,017 $(15)$14,689 $(16)$20,881 

The accompanying notes are an integral part of these condensed consolidated financial statements.


-6-


EOG RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)
Six Months Ended
June 30,
20222021
Cash Flows from Operating Activities
Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Net Income$2,628 $1,584 
Items Not Requiring (Providing) Cash  
Depreciation, Depletion and Amortization1,758 1,814 
Impairments146 88 
Stock-Based Compensation Expenses65 66 
Deferred Income Taxes(567)(133)
Gains on Asset Dispositions, Net(122)(45)
Other, Net(10)13 
Dry Hole Costs23 24 
Mark-to-Market Financial Commodity Derivative Contracts  
Total Losses4,197 794 
Net Cash Payments for Settlements of Financial Commodity Derivative Contracts(2,410)(223)
Other, Net21 1 
Changes in Components of Working Capital and Other Assets and Liabilities  
Accounts Receivable(1,400)(494)
Inventories(171)101 
Accounts Payable389 183 
Accrued Taxes Payable77 80 
Other Assets(142)(222)
Other Liabilities(1,817)(57)
Changes in Components of Working Capital Associated with Investing Activities211 (145)
Net Cash Provided by Operating Activities2,876 3,429 
Investing Cash Flows  
Additions to Oil and Gas Properties(2,288)(1,843)
Additions to Other Property, Plant and Equipment(145)(97)
Proceeds from Sales of Assets231 146 
Other Investing Activities(30) 
Changes in Components of Working Capital Associated with Investing Activities(211)145 
Net Cash Used in Investing Activities(2,443)(1,649)
Financing Cash Flows  
Long-Term Debt Repayments (750)
Dividends Paid(2,509)(458)
Treasury Stock Purchased(58)(12)
Proceeds from Stock Options Exercised and Employee Stock Purchase Plan17 9 
Repayment of Finance Lease Liabilities(19)(18)
Net Cash Used in Financing Activities(2,569)(1,229)
Effect of Exchange Rate Changes on Cash  
Increase (Decrease) in Cash and Cash Equivalents(2,136)551 
Cash and Cash Equivalents at Beginning of Period5,209 3,329 
Cash and Cash Equivalents at End of Period$3,073 $3,880 

The accompanying notes are an integral part of these condensed consolidated financial statements.
-7-

EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.    Summary of Significant Accounting Policies

General. The condensed consolidated financial statements of EOG Resources, Inc., together with its subsidiaries (collectively, EOG), included herein have been prepared by management without audit pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). Accordingly, they reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the financial results for the interim periods presented. Certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. However, management believes that the disclosures included either on the face of the financial statements or in these notes are sufficient to make the interim information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in EOG's Annual Report on Form 10-K for the year ended December 31, 2021, filed on February 24, 2022 (EOG's 2021 Annual Report).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The operating results for the three and six months ended June 30, 2022, are not necessarily indicative of the results to be expected for the full year.

Recently Issued Accounting Standards. In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (Topic 848)" (ASU 2020-04), which provides optional expedients and exceptions for accounting treatment of contracts which are affected by the anticipated discontinuation of the London InterBank Offered Rate (LIBOR) and other rates resulting from rate reform. Contract terms that are modified due to the replacement of a reference rate are not required to be remeasured or reassessed under relevant accounting standards. Early adoption is permitted. ASU 2020-04 covers certain contracts which reference these rates and that are entered into on or before December 31, 2022. EOG has evaluated the provisions of ASU 2020-04 and has concluded the application of ASU 2020-04 will not have a material impact on its consolidated financial statements and related disclosures related to its $2.0 billion senior unsecured Revolving Credit Agreement.

-8-

EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)

2.    Stock-Based Compensation

As more fully discussed in Note 7 to the Consolidated Financial Statements included in EOG's 2021 Annual Report, EOG maintains various stock-based compensation plans. Stock-based compensation expense is included on the Condensed Consolidated Statements of Income and Comprehensive Income based upon the job function of the employees receiving the grants as follows (in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Lease and Well$10 $11 $23 $25 
Gathering and Processing Costs1 1 2 1 
Exploration Costs5 5 10 11 
General and Administrative14 14 30 29 
Total$30 $31 $65 $66 

The Amended and Restated EOG Resources, Inc. 2008 Omnibus Equity Compensation Plan (2008 Plan) provided for grants of stock options, stock-settled stock appreciation rights (SARs), restricted stock and restricted stock units, performance units and other stock-based awards.

EOG's stockholders approved the EOG Resources, Inc. 2021 Omnibus Equity Compensation Plan (2021 Plan) at the 2021 Annual Meeting of Stockholders. Therefore, no further grants were made from the 2008 Plan from and after the April 29, 2021 effective date of the 2021 Plan. The 2021 Plan provides for grants of stock options, SARs, restricted stock and restricted stock units, restricted stock units with performance-based conditions (together with the performance units granted under the 2008 Plan, Performance Units) and other stock-based awards, up to an aggregate maximum of 20 million shares of common stock, plus any shares that are subject to outstanding awards under the 2008 Plan as of April 29, 2021, that are subsequently canceled, forfeited, expire or are otherwise not issued or are settled in cash. Under the 2021 Plan, grants may be made to employees and non-employee members of EOG's Board of Directors (Board).

At June 30, 2022, approximately 18 million common shares remained available for grant under the 2021 Plan. EOG's policy is to issue shares related to the 2021 Plan grants from previously authorized unissued shares or treasury shares to the extent treasury shares are available.

Stock Options and Stock-Settled Stock Appreciation Rights and Employee Stock Purchase Plan. The fair value of stock option grants and SAR grants is estimated using the Hull-White II binomial option pricing model. The fair value of Employee Stock Purchase Plan (ESPP) grants is estimated using the Black-Scholes-Merton model. Stock-based compensation expense related to stock option, SAR and ESPP grants totaled $8 million and $9 million during the three months ended June 30, 2022 and 2021, respectively, and $17 million and $19 million during the six months ended June 30, 2022 and 2021, respectively.

Weighted average fair values and valuation assumptions used to value stock option, SAR and ESPP grants during the six-month periods ended June 30, 2022 and 2021 are as follows:
 Stock Options/SARsESPP
Six Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Weighted Average Fair Value of Grants$28.30 $20.73 $23.07 $14.69 
Expected Volatility42.20 %46.40 %39.72 %54.99 %
Risk-Free Interest Rate0.89 %0.36 %0.22 %0.09 %
Dividend Yield3.28 %2.87 %3.32 %3.41 %
Expected Life5.3 years5.2 years0.5 years0.5 years

-9-

EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)

Expected volatility is based on an equal weighting of historical volatility and implied volatility from traded options in EOG's common stock. The risk-free interest rate is based upon United States Treasury yields in effect at the time of grant. The expected life is based upon historical experience and contractual terms of stock option, SAR and ESPP grants.

The following table sets forth stock option and SAR transactions for the six-month periods ended June 30, 2022 and 2021 (stock options and SARs in thousands):
Six Months Ended
June 30, 2022
Six Months Ended
June 30, 2021
Number of
Stock
Options/SARs
Weighted
Average
Exercise
Price
Number of
Stock
Options/SARs
Weighted
Average
Exercise
Price
Outstanding at January 19,969 $84.37 10,186 $84.08 
Granted2 97.64 14 64.97 
Exercised (1)
(3,928)93.12 (239)69.85 
Forfeited(137)87.54 (234)91.54 
Outstanding at June 30 (2)
5,906 $78.49 9,727 $84.23 
Vested or Expected to Vest (3)
5,603 $79.15 9,421 $84.91 
Exercisable at June 30 (4)
2,305 $97.46 6,023 $97.08 
(1)The total intrinsic value of stock options/SARs exercised during the six months ended June 30, 2022 and 2021 was $108 million and $3 million, respectively. The intrinsic value is based upon the difference between the market price of EOG's common stock on the date of exercise and the exercise price of the stock options/SARs.
(2)The total intrinsic value of stock options/SARs outstanding at June 30, 2022 and 2021 was $202 million and $114 million, respectively. At June 30, 2022 and 2021, the weighted average remaining contractual life was 4.5 years and 3.8 years, respectively.
(3)The total intrinsic value of stock options/SARs vested or expected to vest at June 30, 2022 and 2021 was $189 million and $106 million, respectively. At June 30, 2022 and 2021, the weighted average remaining contractual life was 4.4 years and 3.8 years, respectively.
(4)The total intrinsic value of stock options/SARs exercisable at June 30, 2022 and 2021 was $44 million and $16 million, respectively. At June 30, 2022 and 2021, the weighted average remaining contractual life was 2.7 years.

At June 30, 2022, unrecognized compensation expense related to non-vested stock option, SAR and ESPP grants totaled $46 million. Such unrecognized expense will be amortized on a straight-line basis over a weighted average period of 1.6 years.

Restricted Stock and Restricted Stock Units. Employees may be granted restricted (non-vested) stock and/or restricted stock units without cost to them. Stock-based compensation expense related to restricted stock and restricted stock units totaled $20 million and $21 million for the three months ended June 30, 2022 and 2021, respectively, and $45 million for both the six months ended June 30, 2022 and 2021.


-10-

EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)

The following table sets forth restricted stock and restricted stock unit transactions for the six-month periods ended June 30, 2022 and 2021 (shares and units in thousands):
Six Months Ended
June 30, 2022
Six Months Ended
June 30, 2021
Number of
Shares and
Units
Weighted
Average
Grant Date
Fair Value
Number of
Shares and
Units
Weighted
Average
Grant Date
Fair Value
Outstanding at January 14,680 $69.37 4,742 $74.97 
Granted48 115.48 45 72.56 
Released (1)
(780)91.98 (523)87.61 
Forfeited(85)66.23 (47)70.24 
Outstanding at June 30 (2)
3,863 $65.45 4,217 $73.43 
(1)The total intrinsic value of restricted stock and restricted stock units released during the six months ended June 30, 2022 and 2021 was $91 million and $38 million, respectively. The intrinsic value is based upon the closing price of EOG's common stock on the date the restricted stock and restricted stock units are released.
(2)The total intrinsic value of restricted stock and restricted stock units outstanding at June 30, 2022 and 2021 was $427 million and $352 million, respectively.

At June 30, 2022, unrecognized compensation expense related to restricted stock and restricted stock units totaled $151 million. Such unrecognized expense will be amortized on a straight-line basis over a weighted average period of 1.3 years.

Performance Units. EOG grants Performance Units annually to its executive officers without cost to them. As more fully discussed in the grant agreements, the performance metric applicable to the Performance Units is EOG's total shareholder return over a three-year performance period relative to the total shareholder return of a designated group of peer companies (Performance Period). Upon the application of the performance multiple at the completion of the Performance Period, a minimum of 0% and a maximum of 200% of the Performance Units granted could be outstanding. The fair value of the Performance Units is estimated using a Monte Carlo simulation. Stock-based compensation expense related to the Performance Unit grants totaled $2 million and $1 million for the three months ended June 30, 2022 and 2021, respectively, and $3 million and $2 million for the six months ended June 30, 2022 and 2021, respectively.


-11-

EOG RESOURCES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)

The following table sets forth the Performance Unit transactions for the six-month periods ended June 30, 2022 and 2021 (units in thousands):
Six Months Ended
June 30, 2022
Six Months Ended
June 30, 2021
Number of
Units
Weighted
Average
Grant Date Fair Value
Number of
Units
Weighted
Average
Grant Date Fair Value
Outstanding at January 1679 $84.97 613 $88.38 
Granted  8 55.69 
Granted for Performance Multiple (1)
  19 113.81 
Released (2)
(57)136.74 (98)113.81 
Forfeited for Performance Multiple (3)
(56)136.74   
Outstanding at June 30 (4)
566 (5)$74.60 542 $84.23 
(1)Upon completion of the Performance Period for the Performance Units granted in 2017, a performance multiple of 125% was applied to the grants resulting in an additional grant of Performance Units in February 2021.
(2)The total intrinsic value of Performance Units released was $7 million and $6 million for the six months ended June 30, 2022 and 2021, respectively. The intrinsic value is based upon the closing price of EOG's common stock on the date the Performance Units are released.
(3)Upon completion of the Performance Period for the Performance Units granted in 2018, a performance multiple of 50% was applied to the grants resulting in a forfeiture of Performance Units in February 2022.
(4)The total intrinsic value of Performance Units outstanding at June 30, 2022 and 2021 was approximately $62 million and $45 million, respectively.
(5)Upon the application of the relevant performance multiple at the completion of each of the remaining Performance Periods, a minimum of zero and a maximum of 1,132 Performance Units could be outstanding.

At June 30, 2022, unrecognized compensation expense related to Performance Units totaled $10 million. Such unrecognized expense will be amortized on a straight-line basis over a weighted average period of 1.7 years.

3.    Net Income Per Share

The following table sets forth the computation of Net Income Per Share for the three-month and six-month periods ended June 30, 2022 and 2021 (in millions, except per share data):
Three Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Numerator for Basic and Diluted Earnings Per Share -
Net Income$2,238 $907 $2,628 $1,584 
Denominator for Basic Earnings Per Share -    
Weighted Average Shares583 580 582 580 
Potential Dilutive Common Shares -    
Stock Options/SARs/ESPP2 1 2 1 
Restricted Stock/Units and Performance Units3 3 3 2 
Denominator for Diluted Earnings Per Share -    
Adjusted Diluted Weighted Average Shares588 584 587 583 
Net Income Per Share    
Basic$3.84 $1.56 $4.52 $2.73 
Diluted$