8-KRegulation FD

EOG RESOURCES INC 8-K Report, Regulation FD Disclosure (Oct 11, 2022)

Filed October 11, 2022For Securities:EOG

Summary

EOG Resources, Inc. (EOG) filed an 8-K on October 11, 2022, providing an update on its price sensitivity and hedging activities as of September 30, 2022. The filing indicates that for every $1.00 per barrel change in crude oil and condensate prices (combined with NGL price changes), EOG's net income is impacted by approximately $115 million, and pretax cash flows by $148 million for the full year 2022. Similarly, for every $0.10 per thousand cubic feet change in natural gas prices, net income is affected by about $18 million, and pretax cash flows by $24 million for the full year 2022. The report also details EOG's third-quarter 2022 financial commodity derivative activities. The company anticipates a net loss of $18 million on the mark-to-market of its derivative contracts and incurred significant cash payments of $847 million for settlements, including $63 million for early termination of certain contracts. These figures will be adjusted in the calculation of Adjusted Net Income (Non-GAAP) for the quarter, which is expected to be reported on November 3, 2022.

Key Highlights

  • 1EOG's sensitivity analysis shows that a $1/bbl change in oil prices impacts full-year 2022 net income by ~$115 million and pretax cash flow by ~$148 million.
  • 2A $0.10/MMBtu change in natural gas prices impacts full-year 2022 net income by ~$18 million and pretax cash flow by ~$24 million.
  • 3EOG anticipates an $18 million net loss on the mark-to-market of its financial commodity derivative contracts for Q3 2022.
  • 4The company made significant net cash payments of $847 million for settlements of financial commodity derivative contracts in Q3 2022.
  • 5This includes $63 million for the early termination of certain derivative contracts scheduled to settle after December 31, 2022.
  • 6Collateral posted for derivative contracts decreased from $1,906 million at June 30, 2022, to $686 million at September 30, 2022.
  • 7The filing details various crude oil and natural gas financial price swap contracts and basis swap contracts, including those with early termination provisions.

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