8-KRegulation FD

EOG RESOURCES INC 8-K Report, Regulation FD Disclosure (Jan 21, 2021)

Filed January 21, 2021For Securities:EOG

Summary

EOG Resources Inc. (EOG) filed an 8-K on January 21, 2021, primarily to disclose updates on its commodity derivative contracts as of January 20, 2021. The company provided details on its hedging activities for crude oil, natural gas liquids (NGLs), and natural gas, utilizing financial price swap, option, swaption, collar, and basis swap contracts to manage price risk and enhance revenue certainty. For the fourth quarter of 2020, EOG anticipates a net gain of $69 million from the mark-to-market of its derivative contracts and received $72 million in net cash settlements. The filing details specific contracts entered into or modified since its last 10-Q, including crude oil basis swaps for ICE Brent and Houston differentials, roll differentials, and NYMEX WTI price swaps. Similar details are provided for Mont Belvieu propane price swaps and various natural gas price and basis swaps, including early terminations and new agreements for 2021 and beyond. The report also reiterates the company's standard forward-looking statements and risk factors.

Key Highlights

  • 1EOG Resources anticipates a net gain of $69 million from the mark-to-market of its financial commodity derivative contracts for Q4 2020.
  • 2The company received $72 million in net cash settlements for its derivative contracts during Q4 2020.
  • 3EOG has entered into new crude oil basis swap contracts to fix the differential between ICE Brent and Cushing, Oklahoma, as well as Houston, Texas, and Cushing, Oklahoma.
  • 4New crude oil NYMEX WTI price swap contracts have been established for 2021 at an average price of $50.06/Bbl for Q1 and $50.00/Bbl for Q2.
  • 5EOG has entered into Mont Belvieu propane price swap contracts for 2021 at an average price of $29.46/Bbl.
  • 6New natural gas price swap contracts are in place for 2021, averaging $2.43/MMBtu for Q1 and $2.83/MMBtu for the remainder of the year.
  • 7The filing includes extensive detail on the company's hedging strategies for various commodities through March 2021 and into 2022, aiming to secure revenue certainty.

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