8-KOther Events

EOG RESOURCES INC 8-K Report (Oct 22, 2002)

Filed October 22, 2002For Securities:EOG

Summary

EOG Resources, Inc. (EOG) filed an 8-K on October 21, 2002, to provide forward-looking guidance for the fourth quarter and full year of 2002. The company emphasized that these estimates are based on current information and are subject to change due to fluctuations in commodity prices and differentials. EOG also detailed its commodity hedging activities, specifically natural gas and crude oil financial price swap and costless collar contracts, utilized under mark-to-market accounting. Investors should note that EOG does not typically provide guidance on other income, other expense, or gains/losses on asset sales unless explicitly stated. The filing also includes standard forward-looking statement disclosures, cautioning that actual results may differ materially from expectations due to various market and operational risks, including commodity price volatility, hedging effectiveness, reserve estimation accuracy, and geopolitical factors. EOG does not undertake to update these statements.

Key Highlights

  • 1EOG Resources provided updated forecasts for Q4 and Full Year 2002, subject to commodity price changes.
  • 2The company detailed its natural gas hedging, including price swaps for October ($3.13/MMBtu) and Nov/Dec 2002 ($3.35/MMBtu).
  • 3Natural gas costless collars for October 2002 had a floor of $3.10/MMBtu and an average ceiling of $3.43/MMBtu.
  • 4Crude oil price swaps are in place for 2,000 barrels/day at $21.50/barrel from Oct-Dec 2002.
  • 5Crude oil price swaps for 2003 cover 1,000 barrels/day at an average price of $25.89/barrel.
  • 6All derivative contracts mentioned are accounted for using the mark-to-market method.
  • 7The filing includes a standard cautionary note regarding forward-looking statements and associated risks.

Frequently Asked Questions

The main purpose of this 8-K filing is to provide EOG Resources, Inc. with updated financial guidance for the fourth quarter and full year of 2002, as well as to disclose details of their commodity hedging activities (natural gas and crude oil price swaps and collars).

EOG accounts for its natural gas financial price swap and costless collar contracts, as well as its crude oil financial price swap contracts, using the mark-to-market accounting method.

No, the forecasts are based on current information and expectations and are subject to change. EOG explicitly states that commodity price fluctuations and other factors could cause actual results to differ materially. The company also includes a standard forward-looking statement disclaimer.

For natural gas, EOG has price swaps for October 2002 at $3.13/MMBtu (200,000 MMBtu) and for Nov/Dec 2002 at $3.35/MMBtu (75,000 MMBtu). They also had costless collars for October 2002 with a floor of $3.10/MMBtu and a ceiling of $3.43/MMBtu (100,000 MMBtu). For crude oil, EOG has swaps for Oct-Dec 2002 at $21.50/barrel (2,000 bbl/day) and for the full year 2003 at $25.89/barrel (1,000 bbl/day).