What is the main purpose of this 8-K filing?

This 8-K filing serves to update investors on EOG Resources' price risk management activities, specifically detailing new crude oil and natural gas derivative contracts entered into since the company's last quarterly report (Form 10-Q for Q3 2012). It aims to provide transparency on the company's hedging strategies and their potential impact on future revenues.

What are the key crude oil hedging details for 2013?

For 2013, EOG Resources has entered into derivative contracts covering approximately 101,000 barrels per day at an average price of $99.29/bbl for the first half of the year (Jan-June) and 93,000 barrels per day at an average price of $98.44/bbl for the second half (July-Dec). The filing also notes potential increases in these hedged volumes due to counterparty options.

Has EOG Resources entered into any new natural gas hedges for 2013?

Yes, EOG Resources has derivative contracts for natural gas in place for 2013. The company has hedged 150,000 MMBtu per day at an average price of $4.79/MMBtu for the entire year. The filing indicates that counterparties have options that could potentially increase these hedged volumes.

What are the implications of the counterparty options mentioned in the filing?

The counterparty options mentioned in the filing represent potential increases to EOG's already hedged volumes. For crude oil, these options could add significant volumes in 2013 and 2014 at specified average prices. For natural gas, these options could also lead to increased volumes in 2012, 2013, and 2014, again at defined average prices. Investors should monitor whether these options are exercised as they could impact EOG's realized prices and revenue streams.

EOG 8-K: Regulation FD — Nov 27, 2012

Summary

EOG Resources, Inc. (EOG) filed an 8-K on November 27, 2012, to disclose updates on its price risk management activities and updated derivative contract positions. The filing details EOG's use of financial derivative contracts, such as NYMEX-related financial collars, price swaps, options, and basis swaps, to enhance revenue certainty. These contracts are accounted for using the mark-to-market method. The primary focus of the report is the disclosure of new crude oil and natural gas derivative contracts entered into since the company's third-quarter 2012 Form 10-Q filing. This includes a comprehensive summary of crude oil derivative contracts for the remainder of 2012 and through 2013, with specific notional volumes and weighted average prices. Additionally, the report provides details on natural gas derivative contracts for 2012 and 2013, including information on potential volume increases due to counterparty options. The filing also reiterates standard forward-looking statement disclosures and associated risks.

Key Highlights

1EOG Resources utilizes financial derivative contracts, including collars, swaps, and options, to manage price risk and enhance revenue certainty.
2The company entered into new crude oil derivative contracts since its Q3 2012 10-Q filing, with significant volumes hedged for 2012 and 2013.
3For crude oil derivatives in 2013, EOG has approximately 101,000 barrels per day hedged at an average price of $99.29 for the first half and 93,000 barrels per day at $98.44 for the second half.
4The filing outlines potential increases in hedged volumes for crude oil in 2013 and 2014 due to counterparty options, with specific average prices associated with these potential increases.
5EOG has not entered into new natural gas derivative contracts since its Q3 2012 10-Q filing.
6For natural gas derivatives in 2013, EOG has 150,000 MMBtu per day hedged at an average price of $4.79.
7The report includes a standard section on forward-looking statements, identifying key risks and uncertainties that could materially affect the company's actual results.

EOG RESOURCES INC 8-K Report, Regulation FD Disclosure (Nov 27, 2012)

Summary

Key Highlights

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