Summary
EOG Resources, Inc. (EOG) filed an 8-K on December 15, 2004, to report the redemption of all 500 outstanding shares of its Flexible Money Market Cumulative Preferred Stock, Series D. The redemption occurred on December 15, 2004, at a price of $100,000 per share, plus any accrued and unpaid dividends. This action was taken in accordance with the terms outlined in the stock's Certificate of Designations, Preferences and Rights. This event signifies a financial maneuver by EOG Resources to retire a specific class of preferred stock. Investors should note that this redemption removes a fixed financial obligation from the company's capital structure, potentially impacting its debt-to-equity ratio and freeing up future dividend payments. The total cash outflow for this redemption would be $50 million, plus any accumulated dividends, which represents a significant but planned financial event.
Key Highlights
- 1EOG Resources Inc. redeemed all 500 outstanding shares of its Flexible Money Market Cumulative Preferred Stock, Series D.
- 2The redemption date was December 15, 2004.
- 3The redemption price was $100,000 per share.
- 4Accrued and unpaid dividends through the redemption date were also paid.
- 5The redemption was conducted according to Section 5(a)(i) of the stock's Certificate of Designations.
- 6The total value of the redemption, excluding dividends, was $50 million (500 shares * $100,000/share).