Summary
EOG Resources, Inc. (EOG) filed an 8-K on January 13, 2003, providing updated financial guidance for the fourth quarter of 2002 and initial projections for 2003. The company updated its forecast for Q4 2002, which replaces previous guidance. While the specifics of the Q4 2002 forecast are in an attached table, the filing indicates an anticipated loss of $7.1 million from mark-to-market commodity financial price swap and collar contracts, a significant change from a $2.7 million gain in the prior year period, and net cash outflows of $11.2 million related to these contracts. Looking ahead to 2003, EOG is targeting total company production growth of approximately 5-6% per basic share. The company also detailed its natural gas and crude oil hedging strategies for 2003, outlining various financial price swap and collar contracts for both commodities throughout the year. Investors should note the significant difference in hedging outcomes between Q4 2002 and Q4 2001, and the planned production growth for 2003.
Key Highlights
- 1Updated Q4 2002 financial guidance for EOG Resources, Inc. (EOG), replacing previous projections.
- 2Anticipated loss of $7.1 million from mark-to-market commodity financial price swap and collar contracts in Q4 2002.
- 3Q4 2002 saw net cash outflows of $11.2 million from commodity hedging contracts, a reversal from net cash inflows in the prior year period.
- 4EOG is targeting approximately 5-6% total company production growth per basic share for the full year 2003.
- 5Detailed breakdown of Q4 2002 closed natural gas and crude oil price swap contracts and natural gas costless collar contracts.
- 6Comprehensive disclosure of EOG's 2003 natural gas and crude oil financial price swap and collar contracts, including volumes, average prices, and floor/ceiling prices.