8-KOther Events

EOG RESOURCES INC 8-K Report (Feb 7, 2001)

Filed February 7, 2001For Securities:EOG

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.

Frequently Asked Questions

EOG Resources is targeting 4 percent growth in North America production for the full year 2001.

The reclassification of transportation costs, previously deducted from operating revenues, will result in an expected increase of approximately $0.07 per Mcfe in lease and well unit costs. This will also lead to a corresponding decrease in per-unit pricing differentials for US natural gas and crude oil, and Canadian natural gas.

Yes, EOG Resources has price swap contracts for 3.0 Mbd of crude oil at an average price of $26.25 per barrel through August 31, 2001. However, the company has no price swap contracts in place for its 2001 natural gas production.

Excluding acquisitions, capital expenditures for the full year 2001 are expected to be between $700 million and $800 million.