Summary
EOG Resources, Inc. (EOG) filed an 8-K on March 18, 2002, detailing its commodity price risk management activities for 2002. The report outlines EOG's strategic use of NYMEX-related commodity price swaps and physical contracts to enhance the certainty of future revenues. This proactive approach aims to mitigate the volatility inherent in energy commodity prices, providing investors with a clearer picture of the company's revenue stability. The company provided specific details on its natural gas and crude oil price swap positions for 2002, including average prices and notional volumes. EOG also disclosed its 2002 natural gas physical contracts in both the U.S. and Canada, specifying quantities and average prices for different periods throughout the year. The accounting treatment for these swap contracts is mark-to-market, which reflects their current market value.
Key Highlights
- 1EOG Resources is actively managing commodity price risk through swaps and physical contracts for 2002.
- 2The company's objective is to enhance the certainty of future revenues.
- 3Details provided on 2002 natural gas price swap positions, including average prices per MMBtu and notional volumes.
- 4Information on 2002 crude oil price swaps for 2,000 barrels per day at an average price of $21.50/barrel through December 2002.
- 5Specifics on 2002 natural gas physical contracts in the U.S. and Canada, with varying prices and volumes by period.
- 6All natural gas swap contracts are accounted for using mark-to-market methodology.
- 7The filing was made on March 18, 2002, covering events as of March 17, 2002.