Summary
This 8-K filing by EOG Resources, Inc. (EOG) on July 14, 2016, primarily discloses information regarding its financial derivative contracts related to commodity price risk management. For the second quarter of 2016, EOG anticipates a non-cash net loss of $44.4 million from the mark-to-market of these contracts, with $14.8 million in net cash paid for settlements during the period. The company also provided an update on its derivative positions. Notably, EOG had no outstanding crude oil derivative contracts as of July 14, 2016. For natural gas, the filing details outstanding contracts, including a closed position for March 1, 2016, through July 31, 2016, at a weighted average price of $2.49/MMBtu, and an open position for August 2016 at the same price. This filing offers transparency into EOG's hedging activities and their financial impact for the specified periods.
Key Highlights
- 1EOG anticipates a non-cash net loss of $44.4 million for Q2 2016 due to the mark-to-market accounting of its financial commodity derivative contracts.
- 2The company made net cash payments of $14.8 million related to derivative contract settlements in Q2 2016.
- 3As of July 14, 2016, EOG had no outstanding crude oil derivative contracts.
- 4EOG had a closed natural gas derivative contract position for March 1, 2016, through July 31, 2016, with a weighted average price of $2.49/MMBtu.
- 5There is an open natural gas derivative contract position for August 2016 with a price of $2.49/MMBtu.
- 6The filing includes standard forward-looking statements and risk factors relevant to EOG's operations and market conditions.