v2.4.0.6
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2012
Stock-Based Compensation [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
As more fully discussed in Note 6 to the Consolidated Financial Statements included in EOG's 2011 Annual Report, EOG maintains various stock-based compensation plans. Stock-based compensation expense is included in the Consolidated Statements of Income and Comprehensive Income based upon the job function of the employee receiving the grants as follows (in millions):

 
 
Three Months Ended
 
 
Nine Months Ended
 
 
 
September 30,
 
 
September 30,
 
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
 
 
Lease and Well
 
$
9.9
 
 
$
9.5
 
 
$
26.4
 
 
$
24.4
 
Gathering and Processing Costs
 
 
0.3
 
 
 
0.2
 
 
 
0.8
 
 
 
0.6
 
Exploration Costs
 
 
7.4
 
 
 
7.8
 
 
 
20.3
 
 
 
19.4
 
General and Administrative
 
 
28.3
 
 
 
24.1
 
 
 
53.8
 
 
 
50.6
 
   Total
 
$
45.9
 
 
$
41.6
 
 
$
101.3
 
 
$
95.0
 
Weighted Average Fair Values and Valuation Assumptions
Weighted average fair values and valuation assumptions used to value stock option, SAR and ESPP grants during the nine-month periods ended September 30, 2012 and 2011 were as follows:

 
 
Stock Options/SARs
 
 
ESPP
 
 
 
Nine Months Ended
 
 
Nine Months Ended
 
 
 
September 30,
 
 
September 30,
 
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
 
 
 
 
 
 
 
 
 
Weighted Average Fair Value of Grants
 
$
37.94
 
 
$
29.87
 
 
$
25.17
 
 
$
22.35
 
Expected Volatility
 
 
39.68
%
 
 
40.92
%
 
 
41.04
%
 
 
29.68
%
Risk-Free Interest Rate
 
 
0.45
%
 
 
0.58
%
 
 
0.11
%
 
 
0.18
%
Dividend Yield
 
 
0.6
%
 
 
0.7
%
 
 
0.6
%
 
 
0.7
%
Expected Life
 
5.6 yrs
 
 
5.6 yrs
 
 
0.5 yrs
 
 
0.5 yrs
 
Stock Options and SARs Transactions
The following table sets forth stock option and SAR transactions for the nine-month periods ended September 30, 2012 and 2011 (stock options and SARs in thousands):
 
 
 
Nine Months Ended
 
 
Nine Months Ended
 
 
 
September 30, 2012
 
 
September 30, 2011
 
 
 
 
 
Weighted
 
 
 
 
Weighted
 
 
 
Number of
 
 
Average
 
 
Number of
 
 
Average
 
 
 
Stock
 
 
Grant
 
 
Stock
 
 
Grant
 
 
 
Options/SARs
 
 
Price
 
 
Options/SARs
 
 
Price
 
 
 
 
 
 
 
 
 
 
Outstanding at January 1
 
 
8,374
 
 
$
70.01
 
 
 
8,445
 
 
$
64.49
 
Granted
 
 
1,223
 
 
 
111.91
 
 
 
1,470
 
 
 
85.25
 
Exercised (1)
 
 
(2,044
)
 
 
53.52
 
 
 
(1,150
)
 
 
48.41
 
Forfeited
 
 
(124
)
 
 
89.95
 
 
 
(133
)
 
 
87.75
 
Outstanding at September 30 (2)
 
 
7,429
 
 
$
81.11
 
 
 
8,632
 
 
$
69.80
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested or Expected to Vest (3)
 
 
7,184
 
 
$
80.57
 
 
 
8,387
 
 
$
69.29
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at September 30 (4)
 
 
4,315
 
 
$
69.87
 
 
 
5,382
 
 
$
59.25
 
______________________________________________________________________________________________________________________________________
(1)The total intrinsic value of stock options/SARs exercised for the nine months ended September 30, 2012 and 2011 was $110.8 million and $69.3 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 grant price of the stock options/SARs.
(2)The total intrinsic value of stock options/SARs outstanding at September 30, 2012 and 2011 was $231.1 million and $91.0 million, respectively.  At September 30, 2012 and 2011, the weighted average remaining contractual life was 4.1 years and 3.9 years, respectively.
(3)The total intrinsic value of stock options/SARs vested or expected to vest at September 30, 2012 and 2011 was $227.3 million and $91.0 million, respectively.  At September 30, 2012 and 2011, the weighted average remaining contractual life was 4.0 years and 3.8 years, respectively.
(4)The total intrinsic value of stock options/SARs exercisable at September 30, 2012 and 2011 was $182.7 million and $90.9 million, respectively.  At September 30, 2012 and 2011, the weighted average remaining contractual life was 2.7 years and 2.6 years, respectively.
Restricted Stock and Restricted Stock Unit Transactions
The following table sets forth restricted stock and restricted stock units transactions for the nine-month periods ended September 30, 2012 and 2011 (shares and units in thousands):
 
 
 
Nine Months Ended
 
 
Nine Months Ended
 
 
 
September 30, 2012
 
 
September 30, 2011
 
 
 
 
 
Weighted
 
 
 
 
Weighted
 
 
 
Number of
 
 
Average
 
 
Number of
 
 
Average
 
 
 
Shares and
 
 
Grant Date
 
 
Shares and
 
 
Grant Date
 
 
 
Units
 
 
Fair Value
 
 
Units
 
 
Fair Value
 
 
 
 
 
 
 
 
 
 
Outstanding at January 1
 
 
4,240
 
 
$
82.93
 
 
 
4,009
 
 
$
79.13
 
Granted
 
 
757
 
 
 
112.13
 
 
 
917
 
 
 
90.93
 
Released (1)
 
 
(977
)
 
 
72.97
 
 
 
(410
)
 
 
65.77
 
Forfeited
 
 
(106
)
 
 
88.36
 
 
 
(202
)
 
 
82.51
 
Outstanding at September 30 (2)
 
 
3,914
 
 
$
90.91
 
 
 
4,314
 
 
$
82.75
 
______________________________________________________________________________________________________________________________________
(1)The total intrinsic value of restricted stock and restricted stock units released for the nine months ended September 30, 2012 and 2011 was $110.7 million and $40.0 million, respectively.  The intrinsic value is based upon the closing price of EOG's common stock on the date restricted stock and restricted stock units are released.
(2)The total intrinsic value of restricted stock and restricted stock units outstanding at September 30, 2012 and 2011 was $438.6 million and $306.4 million, respectively.