Summary
EOG Resources, Inc. (EOG) filed an 8-K on February 7, 2008, providing updated forecasts for the first quarter and full year 2008, superseding any prior guidance. The company also detailed its updated price risk management strategies, specifically focusing on new natural gas and crude oil financial price swap contracts entered into since its January 9, 2008 filing. Key updates include the execution of additional natural gas financial price swaps covering significant notional volumes through 2009, with an average swap price of $8.51/MMBtu for 2008 and $8.48/MMBtu for 2009. For crude oil, new swap contracts were established for March through November 2008, averaging $91.00/Bbl, contributing to an overall outstanding crude oil swap average price of $90.78/Bbl. Additionally, EOG announced the full repurchase of its Series B Preferred Stock on January 18, 2008.
Key Highlights
- 1EOG Resources updated its 2008 first quarter and full year financial forecasts, replacing all previous guidance.
- 2The company has entered into new natural gas financial price swap contracts, covering substantial volumes through 2009, with an average 2008 swap price of $8.51/MMBtu and a 2009 average of $8.48/MMBtu.
- 3Additional crude oil financial price swap contracts were executed for March-November 2008 at an average of $91.00/Bbl.
- 4The overall weighted average price for outstanding crude oil swap contracts as of February 7, 2008, is $90.78/Bbl.
- 5EOG employs mark-to-market accounting for its financial commodity derivative contracts.
- 6The company fully repurchased all outstanding shares of its 7.195% Fixed Rate Cumulative Perpetual Preferred Stock, Series B, on January 18, 2008.
- 7The filing includes a comprehensive list of risk factors that could impact the company's forward-looking statements.