Summary
EOG Resources Inc. reported a net loss of $26.999 million for the first quarter of 2002, a significant turnaround from a net income of $212.526 million in the same period of 2001. This decline was primarily driven by substantially lower average wellhead prices for natural gas and crude oil in North America, which impacted net operating revenues. Despite a decrease in production volumes for both natural gas and crude oil, the price drop was the more dominant factor. Total operating expenses were reduced compared to the prior year, largely due to lower taxes other than income. However, this reduction was insufficient to offset the sharp decline in revenues. The company's financial performance in the first quarter of 2002 was negatively affected by a substantial mark-to-market loss on commodity derivative contracts, which contrasts with a much smaller loss in the prior year. Management believes its operating cash flow and financing alternatives are sufficient to meet future requirements.
Key Highlights
- 1Reported a net loss of $26.999 million for Q1 2002, compared to a net income of $212.526 million in Q1 2001.
- 2Net operating revenues decreased by 68.8% to $186.503 million in Q1 2002 from $597.253 million in Q1 2001.
- 3Average natural gas prices in the US decreased significantly to $2.25/Mcf from $6.97/Mcf year-over-year.
- 4Average crude oil prices in the US decreased to $20.07/Bbl from $28.09/Bbl year-over-year.
- 5Recognized a $34.3 million loss from mark-to-market commodity price swaps in Q1 2002, compared to a $0.6 million loss in Q1 2001.
- 6Total exploration and development expenditures were $199 million in Q1 2002, a slight decrease from $205 million in Q1 2001.
- 7Cash flow from operations significantly decreased to $121.444 million in Q1 2002 from $479.207 million in Q1 2001.