Summary
EOG Resources, Inc. (EOG) filed an 8-K on February 20, 2002, detailing its commodity price swap and physical contract positions for 2002. The filing aims to provide transparency regarding the company's strategies to mitigate commodity price volatility and enhance revenue certainty. Investors can gain insight into EOG's hedging activities, which are crucial for understanding the company's exposure to fluctuations in natural gas and crude oil prices.
Key Highlights
- 1EOG Resources has entered into various natural gas and crude oil price swap and physical contracts for 2002 to secure future revenues.
- 2The company is utilizing mark-to-market accounting for its swap contracts, providing a current valuation of these positions.
- 3For natural gas, EOG has price swap positions covering January through December 2002, with varying average prices and volumes per MMBtu and MMBtud.
- 4Specific natural gas price swap positions closed in January and February 2002 are reported with their respective prices and volumes.
- 5Crude oil price swaps are in place for March 2002 to December 2002, covering 2,000 barrels of oil per day at an average price of $21.50 per barrel.
- 6EOG also holds 2002 natural gas physical contracts in the U.S. and Canada, with specified volumes and average prices for different periods.