8-KOther Events

EOG RESOURCES INC 8-K Report (Apr 5, 2004)

Filed April 5, 2004For Securities:EOG

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.

Frequently Asked Questions

EOG anticipates a loss of $44.5 million from mark-to-market financial commodity price swap and collar contracts for the first quarter of 2004.

The anticipated loss of $44.5 million in Q1 2004 is slightly better than the $45.2 million loss recorded in the same period of the prior year. Additionally, the net cash outflow related to settled contracts in Q1 2004 was $2.3 million, a substantial decrease from $27.9 million in the prior year period.

No, EOG states that it has not entered into any additional natural gas or crude oil financial price swap contracts or natural gas financial collar contracts since filing its Annual Report on Form 10-K on March 11, 2004.

EOG accounts for these price swap and collar contracts using the mark-to-market accounting method.