8-KMaterial AgreementsExhibits & Filings

EOG RESOURCES INC 8-K Report, Material Agreement (Apr 10, 2020)

Filed April 10, 2020For Securities:EOG

Summary

EOG Resources, Inc. (EOG) announced on April 9, 2020, its entry into an underwriting agreement to issue $1.5 billion in aggregate principal amount of senior notes. This offering comprises $750 million of 4.375% Senior Notes due 2030 and $750 million of 4.950% Senior Notes due 2050. The transaction, expected to close on April 14, 2020, was conducted under EOG's shelf registration statement and utilized a prospectus supplement filed with the SEC. This debt issuance indicates EOG's strategy to manage its capital structure and potentially fund ongoing operations or future investments during a period of market uncertainty. Investors should note the specific coupon rates and maturity dates for the new debt, as these will impact the company's future interest expenses and debt repayment obligations. The involvement of major financial institutions as underwriters, and the existing relationships some of these institutions have with EOG, are standard for such transactions.

Key Highlights

  • 1EOG Resources entered into an underwriting agreement to issue $1.5 billion in senior notes.
  • 2The offering includes $750 million of 4.375% Senior Notes due 2030.
  • 3The offering also includes $750 million of 4.950% Senior Notes due 2050.
  • 4The offering is expected to close on April 14, 2020.
  • 5The notes were issued under EOG's shelf registration statement (Form S-3).
  • 6The underwriting agreement contains customary representations, warranties, indemnification, and contribution provisions.
  • 7Underwriters and their affiliates have existing commercial relationships with EOG, including as lenders under its revolving credit agreement.

Frequently Asked Questions

While the filing doesn't explicitly state the purpose, such debt issuances are typically used to manage a company's capital structure, refinance existing debt, fund capital expenditures, or for general corporate purposes. This issuance could provide EOG with liquidity and flexibility, especially during uncertain economic times.

EOG issued $750 million of 4.375% Senior Notes due 2030 and $750 million of 4.950% Senior Notes due 2050. These represent two distinct debt instruments with different interest rates and maturity dates.

The offering of the Notes was expected to close on April 14, 2020, shortly after the filing date of April 9, 2020.

The filing notes that the underwriters and their affiliates have, and may in the future, engage in various commercial dealings with EOG, including investment banking and commercial banking services, for which they receive customary fees. This is a standard practice, and the filing discloses these relationships, including that an affiliate of one underwriter is the trustee for the notes.