8-KLeadership ChangesRegulation FDExhibits & Filings

EOG RESOURCES INC 8-K Report, Executive Changes (May 14, 2008)

Filed May 14, 2008For Securities:EOG

Summary

EOG Resources, Inc. (EOG) filed an 8-K on May 14, 2008, primarily announcing the stockholder approval of the EOG Resources, Inc. 2008 Omnibus Equity Compensation Plan (the "2008 Plan") on May 8, 2008. This plan allows for the issuance of various equity awards, including stock options, stock appreciation rights (SARs), restricted stock, and restricted stock units, to employees and non-employee directors. The plan has an aggregate authorized share pool of 6,000,000 shares of common stock and will be administered by the Compensation Committee. Additionally, the filing provides an update on EOG's commodity price risk management strategies. It details outstanding natural gas financial price swap contracts for 2008 and 2009, with average prices of $8.52/MMBtu and $8.99/MMBtu, respectively. It also outlines crude oil financial price swap contracts for 2008, with an average price of $92.19/Bbl. These hedging activities aim to enhance revenue certainty.

Key Highlights

  • 1Stockholder approval of the 2008 Omnibus Equity Compensation Plan (2008 Plan).
  • 2The 2008 Plan authorizes up to 6,000,000 shares of EOG Common Stock for equity awards.
  • 3Eligible participants for the 2008 Plan include employees and non-employee directors.
  • 4The plan allows for grants of incentive stock options, non-qualified stock options, SARs, restricted stock, RSUs, performance stock, and performance units.
  • 5Stock options generally vest over four years and expire after seven years.
  • 6Restricted stock and RSUs for employees typically "cliff" vest after five years, while for non-employee directors, they "cliff" vest after one year.
  • 7EOG maintains natural gas financial price swap contracts with an average price of $8.52/MMBtu for 2008 and $8.99/MMBtu for 2009.
  • 8EOG has crude oil financial price swap contracts with an average price of $92.19/Bbl for 2008.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce that EOG Resources, Inc.'s stockholders approved the EOG Resources, Inc. 2008 Omnibus Equity Compensation Plan (2008 Plan) at the annual meeting held on May 8, 2008. It also provides details about the plan's provisions and updates on the company's commodity hedging activities.

The 2008 Plan allows for the granting of various equity awards, including incentive stock options, non-qualified stock options, stock appreciation rights (SARs), restricted stock, restricted stock units (RSUs), performance stock, performance units, and other stock-based awards.

EOG utilizes financial commodity collar and price swap contracts to enhance the certainty of future revenues. The filing provides details on their outstanding natural gas and crude oil financial price swap contracts, indicating a proactive approach to hedging against commodity price volatility.

For employees, stock options and SARs generally vest in 25% increments over four years and expire after seven years. Restricted stock and RSUs for employees typically 'cliff' vest five years from the grant date. For non-employee directors, SARs vest over two years (50% increments) and expire after seven years, while restricted stock 'cliff' vests after one year.