What is EOG's exposure to commodity price fluctuations for the full year 2021?

As of October 8, 2021, EOG estimates that a $1.00 per barrel increase or decrease in combined crude oil and NGL prices would impact its full-year 2021 net income by approximately $101 million and pretax cash flows from operating activities by $130 million. For natural gas, a $0.10 per thousand cubic feet change would affect net income by approximately $32 million and pretax cash flows by $41 million.

How did EOG's derivative positions impact its Q3 2021 results?

EOG anticipates a net loss of $494 million on the mark-to-market accounting of its financial commodity derivative contracts for the third quarter of 2021. The company also made net cash payments of $293 million for the settlement of these derivative contracts during the same period.

What is the duration and extent of EOG's hedging program?

EOG has a comprehensive hedging program in place, with derivative contracts detailed as of October 8, 2021. These contracts include swaps for crude oil, NGLs, and natural gas, with settlement periods extending out to 2025. For crude oil, significant swap positions are held through Q1 2023, and for natural gas, hedging extends through 2025 at various price points.

Are there any specific risks highlighted regarding commodity prices?

The filing lists the 'timing, extent and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities' as a key risk factor that could affect EOG's forward-looking statements. This highlights the company's sensitivity to market volatility and the importance of its hedging strategies.

EOG 8-K: Regulation FD — Oct 14, 2021

Summary

This 8-K filing from EOG Resources (EOG) dated October 14, 2021, provides an update on commodity price sensitivity and its derivative positions. For the full year 2021, EOG estimates that a $1.00 per barrel change in crude oil and NGL prices would impact net income by approximately $101 million and pretax cash flows by $130 million. Similarly, a $0.10 per thousand cubic feet change in natural gas prices is estimated to affect net income by $32 million and pretax cash flows by $41 million. The company also disclosed its third-quarter 2021 derivative activities, anticipating a net loss of $494 million from mark-to-market accounting of its financial commodity derivative contracts, with $293 million in net cash paid for settlements during the quarter. The filing details EOG's extensive portfolio of financial commodity derivative contracts, including swap contracts for crude oil, NGLs, and natural gas, with various settlement periods and pricing indices extending into 2025, aiming to enhance revenue certainty.

Key Highlights

1EOG estimates a significant price sensitivity, with a $1/bbl change in oil prices impacting full-year 2021 net income by $101 million and pretax cash flow by $130 million.
2A $0.10/MMBtu change in natural gas prices is estimated to impact full-year 2021 net income by $32 million and pretax cash flow by $41 million.
3The company anticipates a $494 million net loss on the mark-to-market of its financial commodity derivative contracts for Q3 2021.
4EOG paid $293 million in net cash for the settlement of financial commodity derivative contracts during Q3 2021.
5The filing provides a detailed summary of EOG's outstanding crude oil, NGL, and natural gas financial derivative contracts as of October 8, 2021, with positions extending through 2025.
6Significant hedging positions are in place for crude oil, with contracts extending through Q1 2023 at weighted average prices around $65.58 - $67.33 per barrel.
7Natural gas hedging includes positions through 2025, with varying weighted average prices, reflecting strategies to manage price volatility.

EOG RESOURCES INC 8-K Report, Regulation FD Disclosure (Oct 14, 2021)

Summary

Key Highlights

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