8-KOther Events

EOG RESOURCES INC 8-K Report (Mar 19, 2002)

Filed March 19, 2002For Securities:EOG

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.

Frequently Asked Questions

The primary objective is to enhance the certainty of future revenues. By entering into these contracts, EOG aims to lock in certain prices for its natural gas and crude oil production, thereby reducing its exposure to market price volatility.

EOG Resources accounts for these natural gas swap contracts under mark-to-market accounting. This means the contracts are reported at their current fair market value, reflecting any gains or losses based on prevailing market prices.

EOG has crude oil price swaps for the period of March 2002 through December 2002. The notional volume is two thousand barrels of oil per day at an average price of $21.50 per barrel.

Yes, EOG has 2002 natural gas physical contracts in both the U.S. and Canada. The details, including volumes and average prices, differ for each region and for various periods within 2002.