What are EOG Resources' primary business segments?

EOG Resources' operations are primarily focused on the exploration, development, production, and marketing of natural gas and crude oil. The company's operations are broadly categorized into North America and International segments, with specific business units focused on distinct geological basins within North America.

How does EOG Resources manage commodity price volatility?

EOG Resources actively engages in price risk management activities to mitigate exposure to fluctuations in commodity prices. This is achieved through the use of derivative financial instruments, such as price swaps and costless collars, as well as fixed-price physical contracts.

What was the impact of the Enron bankruptcy on EOG Resources?

EOG Resources recorded a $19.2 million charge in the fourth quarter of 2001 related to certain contracts with Enron affiliates due to Enron's Chapter 11 bankruptcy filing. While other contractual relationships exist, the company believes Enron's bankruptcy proceedings will not have a material adverse effect on its overall financial position.

What is EOG's strategy for growth and profitability?

EOG's business strategy is centered on maximizing the rate of return on invested capital by controlling operating and capital costs. This involves focusing on the cost-effective utilization of advanced technologies, drilling internally generated prospects for low-cost reserves, and pursuing selected tactical acquisitions.

EOG 10-K FY2001 Annual Report — Revenue, Net Income, EPS

Summary

EOG Resources, Inc. (EOG) in its 2001 10-K filing highlights a robust year of exploration and production, demonstrating strategic growth across its North American and international operations. The company's core strategy revolves around maximizing return on investment through cost control and the efficient application of advanced technologies, particularly in natural gas exploration and development. Key operational highlights include significant production increases in several North American divisions, such as Midland, Texas, and the Mid-Continent region, driven by successful drilling campaigns and expansion into new plays like the Devonian horizontal trend. Internationally, EOG continues to develop its promising assets offshore Trinidad, with new fields coming online and new contracts secured for ammonia plants, underscoring a growing international presence. The company's financial health appears solid, with strong net income and a strategic approach to managing commodity price risks through derivative instruments, although the impact of the Enron bankruptcy is noted with a charge for related contracts.

Key Highlights

1EOG Resources experienced strong operational performance in 2001, with a strategic focus on cost-effective exploration and production, particularly in natural gas.

2The company's North American operations, organized into eight autonomous business units, showed significant production growth in key regions like the Delaware Basin and the Mid-Continent, driven by technological advancements and successful drilling.

3International operations, especially offshore Trinidad, are expanding with new field developments and long-term natural gas supply contracts for ammonia plants, diversifying EOG's reserve base.

4EOG actively utilizes advanced technologies, including 3D seismic data and reservoir simulation, to reduce exploration and development risks and enhance cost efficiency.

5The company managed commodity price risk through derivative financial instruments, including price swaps and collars, and fixed-price physical contracts.

6EOG reported a $19.2 million charge in the fourth quarter of 2001 related to contracts with Enron affiliates due to Enron's bankruptcy filing.

7Significant investments were made in drilling and acquisitions, totaling $1,163 million in 2001, reflecting a commitment to expanding reserves and production capacity.

EOG RESOURCES INC Annual Report, Year Ended Dec 31, 2001

Summary

Key Highlights

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