What is EOG's sensitivity to oil price changes?

As of July 11, 2019, EOG Resources estimates that for every $1.00 per barrel increase or decrease in wellhead crude oil and condensate prices, combined with the estimated change in natural gas liquids price, its net income will change by approximately $103 million and its pretax cash flows from operating activities will change by approximately $134 million for the full-year 2019.

What is EOG's sensitivity to natural gas price changes?

EOG Resources estimates that for every $0.10 per thousand cubic feet increase or decrease in wellhead natural gas prices, its net income will change by approximately $25 million and its pretax cash flows from operating activities will change by approximately $32 million for the full-year 2019, based on its tax position and uncontracted volumes.

Has EOG entered into any new hedging contracts recently?

No, EOG Resources has not entered into any additional crude oil or natural gas derivative contracts since filing its Quarterly Report on Form 10-Q for the period ended March 31, 2019.

EOG 8-K: Regulation FD — Jul 11, 2019

Q: What is EOG's expected financial impact from its derivative contracts in Q2 2019?

EOG Resources anticipates a net gain of $177.3 million on the mark-to-market of its financial commodity derivative contracts for the second quarter of 2019.

Summary

EOG Resources, Inc. (EOG) filed an 8-K on July 11, 2019, providing an update on its "Price Matters" initiative and its commodity derivative contracts. The company detailed its sensitivity to changes in crude oil, natural gas, and natural gas liquids (NGL) prices for the full year 2019. For every $1.00 per barrel change in crude oil and NGL prices, EOG estimates an impact of approximately $103 million on net income and $134 million on pretax cash flows. Similarly, a $0.10 per thousand cubic feet change in natural gas prices is estimated to affect net income by $25 million and pretax cash flows by $32 million. Furthermore, the filing provided an update on EOG's hedging activities. As of July 11, 2019, EOG had not entered into new crude oil or natural gas derivative contracts since its last 10-Q filing. The company also provided details on its outstanding crude oil basis swap contracts, specifically for the Midland Differential and Gulf Coast Differential, as well as crude oil price swap contracts. For natural gas, EOG disclosed its natural gas price swap contracts. The company anticipates a net gain of $177.3 million on the mark-to-market of its financial commodity derivative contracts for the second quarter of 2019.

Key Highlights

1EOG Resources' (EOG) price sensitivity for 2019: A $1/Bbl change in oil/NGL prices impacts net income by ~$103M and pretax cash flow by ~$134M.
2For natural gas, a $0.10/MMBtu change impacts net income by ~$25M and pretax cash flow by ~$32M.
3No new crude oil or natural gas derivative contracts were entered into since the last 10-Q filing.
4EOG has outstanding crude oil basis swap contracts for Midland and Gulf Coast differentials, as well as crude oil price swap contracts.
5Natural gas price swap contracts are also in place for specific periods in 2019.
6The company expects a net gain of $177.3 million from the mark-to-market of its financial commodity derivative contracts for Q2 2019.
7Q2 2019 average NYMEX WTI was $59.83/Bbl, and Henry Hub natural gas was $2.62/MMBtu.

EOG RESOURCES INC 8-K Report, Regulation FD Disclosure (Jul 11, 2019)

Summary

Key Highlights

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