Summary
EOG Resources Inc. (EOG) filed an 8-K on February 6, 2001, providing forward-looking statements and operational guidance for the first quarter and full year 2001. The company anticipates continued production growth in North America, targeting 4% for the year. A reclassification of transportation costs will impact reported unit costs and pricing differentials for natural gas and crude oil. EOG has a portion of its crude oil production hedged through August 2001, but no price swap contracts are in place for natural gas in 2001.
Key Highlights
- 1EOG Resources is projecting 4% production growth in North America for the full year 2001.
- 2A reclassification of transportation costs will be implemented, affecting per-unit lease and well costs and pricing differentials.
- 3The company has price swap contracts for 3.0 Mbd of crude oil at an average price of $26.25 per barrel through August 31, 2001.
- 4There are no price swap contracts currently in place for EOG's 2001 natural gas production.
- 5Full-year 2001 capital expenditures (excluding acquisitions) are forecast to be between $700 million and $800 million.
- 6A tax benefit from employee stock options is expected to contribute $8.0 to $12.0 million in discretionary cash flow for the full year 2001.
- 7The Board of Directors authorized an additional 5 million shares for common stock repurchase, increasing the total authorization to 15 million shares.