Summary
This 8-K filing from EOG Resources, Inc. (EOG) dated January 6, 2005, primarily provides an update on the company's financial commodity contracts for the fourth quarter of 2004 and reiterates its position on entering into new contracts. The company anticipates a significant improvement in the mark-to-market accounting impact of its financial commodity collar and price swap contracts for Q4 2004, reporting a projected gain of $2.8 million compared to a loss of $43.1 million in the prior year period. Additionally, EOG confirms that it has not entered into any new natural gas financial collar or natural gas and crude oil financial price swap contracts since its last 10-Q filing on October 28, 2004. The company utilizes these contracts to enhance revenue certainty and accounts for them using the mark-to-market method. The filing also includes standard forward-looking statements outlining potential risks and uncertainties that could affect future performance.
Key Highlights
- 1EOG Resources projects a $2.8 million gain on mark-to-market financial commodity contracts for Q4 2004, a substantial improvement from a $43.1 million loss in Q4 2003.
- 2The net cash outflow related to settled natural gas financial contracts in Q4 2004 was $12.7 million, compared to a net cash inflow of $1.2 million in the prior year period.
- 3EOG has not entered into any new natural gas financial collar or natural gas and crude oil financial price swap contracts since its October 28, 2004, 10-Q filing.
- 4The company uses these financial contracts to enhance the certainty of future revenues.
- 5All financial commodity contracts are accounted for using the mark-to-market accounting method.
- 6The filing includes a comprehensive "Forward-Looking Statements" section detailing potential risks and uncertainties affecting the company's future performance.