Summary
EOG Resources, Inc. (EOG) filed a Form 8-K on April 5, 2004, to provide a regulatory disclosure regarding its financial commodity contracts for the first quarter of 2004. The company anticipates a net loss of $44.5 million from mark-to-market financial commodity price swap and collar contracts for Q1 2004, a slight improvement from a $45.2 million loss in the prior year period. This filing also clarifies that EOG has not entered into any new financial commodity contracts since its last 10-K filing on March 11, 2004.
Key Highlights
- 1Anticipated Q1 2004 loss from mark-to-market financial commodity contracts is $44.5 million.
- 2This Q1 2004 loss is a marginal improvement compared to a $45.2 million loss in the same period of the prior year.
- 3Net cash outflow for settled natural gas and crude oil financial price swap and collar contracts in Q1 2004 was $2.3 million.
- 4The Q1 2004 net cash outflow was significantly lower than the $27.9 million outflow in the prior year period.
- 5EOG has not entered into any new natural gas or crude oil financial price swap or collar contracts since its March 11, 2004, 10-K filing.
- 6The company uses mark-to-market accounting for these price swap and collar contracts.
- 7The filing includes a standard forward-looking statements disclaimer outlining various risks and uncertainties.