Summary
EOG Resources Inc. (EOG) filed an 8-K on July 30, 2001, disclosing its financial forecasts and hedging activities for the remainder of 2001 and for 2002. The company reaffirmed its target of 4 percent growth in North America production for the full year 2001. This filing provides investors with a look into the company's production expectations and its strategies to manage commodity price volatility through various derivative contracts.
Key Highlights
- 1EOG Resources reaffirmed its 2001 target of 4% growth in North America production.
- 2The company has natural gas price swap contracts for August-December 2001 covering 115,000 MMBtud at an average price of $3.38/MMBtu.
- 3Additional natural gas price collars are in place for July-November 2001 with a floor of $4.40/MMBtu and a ceiling averaging $6.15/MMBtu for 200,000 MMBtud.
- 4Crude oil price swap contracts are in place for 3Q 2001 (7.0 Mbd at $27.72/Bbl) and 4Q 2001 (5.0 Mbd at $27.48/Bbl).
- 5Full-year 2001 capital expenditures, excluding acquisitions, are projected to be between $800 million and $900 million.
- 6For 2002, natural gas price swap contracts are in place for 50,000 MMBtud at an average of $3.56/MMBtu for the full year.
- 7Crude oil price swap contracts for 2002 cover 3,000 Bpd at an average of $26.74/Bbl for January-May 2002.