What is the expected financial impact of EOG's derivative contracts in Q4 2014?

EOG anticipates a non-cash net gain of $750.2 million on the mark-to-market of its crude oil and natural gas derivative contracts for the fourth quarter of 2014. The company also received $222.9 million in net cash from settlements of these contracts during the same period.

What are the details of EOG's crude oil derivative positions for 2015?

As of January 20, 2015, EOG has crude oil derivative contracts covering 47,000 barrels per day at an average price of $91.22/Bbl for January 1, 2015, through June 30, 2015. Additionally, 10,000 barrels per day are hedged at $89.98/Bbl for July 1, 2015, through December 31, 2015. Importantly, counterparties have the option to extend certain contracts by an additional 37,000 barrels per day at $91.56/Bbl for the second half of 2015.

What are EOG's natural gas derivative positions for 2015?

EOG has entered into additional natural gas derivative contracts for 2015. For January 2015, 235,000 MMBtu/day are hedged at $4.47/MMBtu. Volumes remain at 235,000 MMBtu/day for February at $4.47/MMBtu, 225,000 MMBtu/day for March at $4.48/MMBtu, and 195,000 MMBtu/day for April at $4.49/MMBtu. From May 1, 2015, through December 31, 2015, 175,000 MMBtu/day are hedged at $4.51/MMBtu. Counterparties have monthly options to increase natural gas derivative volumes by up to 175,000 MMBtu/day at $4.51/MMBtu for most of 2015.

Has EOG entered into any new derivative contracts since its last quarterly report?

Since filing its Form 10-Q for the quarter ended September 30, 2014, EOG has not entered into any additional crude oil derivative contracts. However, the company has entered into additional natural gas derivative contracts.

EOG 8-K: Regulation FD — Jan 20, 2015

Summary

EOG Resources, Inc. (EOG) filed an 8-K on January 20, 2015, to disclose its updated derivative positions and provide a regulatory disclosure regarding its price risk management. The company anticipates a significant non-cash gain of $750.2 million from the mark-to-market accounting of its crude oil and natural gas derivative contracts for the fourth quarter of 2014. Additionally, EOG reported net cash proceeds of $222.9 million from derivative contract settlements during the same period. This filing also provides a detailed breakdown of EOG's crude oil and natural gas derivative contracts as of January 20, 2015, for the upcoming periods in 2015. The company has not entered into new crude oil derivative contracts since its last quarterly report but has added natural gas derivative contracts. Investors should note the notional volumes and weighted average prices for both commodities, as well as the details on counterparties' options to extend certain contracts, which could impact future volumes and prices.

Key Highlights

1EOG anticipates a non-cash mark-to-market gain of $750.2 million on derivative contracts for Q4 2014.
2Net cash received from derivative contract settlements in Q4 2014 was $222.9 million.
3No new crude oil derivative contracts have been entered into since the prior 10-Q filing.
4Summary of crude oil derivative contracts as of Jan 20, 2015, shows significant volumes hedged for H1 2015 at an average price of $91.22/Bbl.
5Counterparties have options to extend certain crude oil derivative contracts into H2 2015, potentially increasing hedged volumes.
6EOG has entered into additional natural gas derivative contracts for 2015, with an average price of $4.47-$4.51/MMBtu.
7Counterparties have monthly options to increase natural gas derivative volumes for much of 2015.

EOG RESOURCES INC 8-K Report, Regulation FD Disclosure (Jan 20, 2015)

Summary

Key Highlights

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