What was the financial impact of EOG's derivative contracts in Q4 2012?

For the fourth quarter of 2012, EOG Resources anticipated a non-cash gain of $66.4 million from the mark-to-market of its crude oil and natural gas derivative contracts. Additionally, the company reported a net cash inflow of $155.5 million related to the settlement of these derivative contracts during the same period.

How is EOG hedging its crude oil production for 2013?

As of January 17, 2013, EOG has entered into significant crude oil derivative contracts to hedge its 2013 production. The company has hedged varying volumes throughout the year, with notional volumes ranging from 93,000 to 109,000 barrels per day, at weighted average prices between approximately $98.44 and $99.29 per barrel. The filing also notes potential increases in covered volumes due to counterparty options to extend contracts.

What is EOG's hedging strategy for natural gas in 2013 and 2014?

EOG has natural gas derivative contracts covering 150,000 MMBtu per day for the period from February 1, 2013, through December 31, 2013, at a weighted average price of $4.79 per MMBtu. For 2014, the company also has potential coverage of 150,000 MMBtu per day at the same average price, subject to counterparties exercising options to enter into these contracts.

Does this filing indicate any new information about EOG's operational performance or outlook?

This specific 8-K filing focuses primarily on updates to EOG's commodity derivative contracts and the associated financial impacts. While it includes standard forward-looking statements and risk factors relevant to operations, it does not provide specific new guidance on production levels, reserve additions, or detailed operational performance metrics beyond what is implied by the hedging strategies. Investors should refer to other filings, such as the 10-K and 10-Q, for more comprehensive operational and financial performance data.

EOG 8-K: Regulation FD — Jan 17, 2013

Summary

EOG Resources Inc. (EOG) filed an 8-K on January 17, 2013, to provide an update on its price risk management activities, specifically detailing its crude oil and natural gas derivative contracts as of January 17, 2013. The filing highlights anticipated non-cash gains from mark-to-market accounting for derivative contracts in Q4 2012, estimating a gain of $66.4 million. It also reports a net cash inflow of $155.5 million from settled derivative contracts during the same quarter. Key details were provided on extensive crude oil hedging for 2013, with substantial volumes covered at average prices around $99 per barrel. EOG also has natural gas derivative contracts in place for 2013 and 2014, with significant volumes hedged at an average price of $4.79 per MMBtu. The report also includes standard forward-looking statements and risk factors relevant to the company's operations and market conditions.

Key Highlights

1EOG Resources anticipates a non-cash gain of $66.4 million from the mark-to-market of its crude oil and natural gas derivative contracts for the fourth quarter of 2012.
2The company experienced a net cash inflow of $155.5 million from settled crude oil and natural gas derivative contracts in Q4 2012.
3As of January 17, 2013, EOG had substantial crude oil derivative contracts covering 2013, with volumes ranging from 93,000 to 109,000 barrels per day at weighted average prices between $98.44 and $99.29 per barrel.
4Additional crude oil derivative contracts have options to extend volumes beyond their initial terms, potentially increasing coverage by up to 124,000 barrels per day in 2013-2014 at various specified prices.
5EOG has natural gas derivative contracts in place for 2013, covering 150,000 MMBtu/day at a weighted average price of $4.79/MMBtu.
6Natural gas derivative contracts for 2014 also involve potential coverage of 150,000 MMBtu/day at an average price of $4.79/MMBtu, with counterparties holding options to enter into these contracts.
7The filing includes a comprehensive list of forward-looking statements and associated risks, common for SEC filings, covering market prices, operational success, regulatory changes, and financial market conditions.

EOG RESOURCES INC 8-K Report, Regulation FD Disclosure (Jan 17, 2013)

Summary

Key Highlights

Frequently Asked Questions