8-KRegulation FD

EOG RESOURCES INC 8-K Report, Regulation FD Disclosure (Jan 11, 2024)

Filed January 11, 2024For Securities:EOG

Summary

EOG Resources, Inc. (EOG) filed an 8-K report on January 11, 2024, providing an update on its financial risk management strategies and commodity derivative transactions as of December 31, 2023. The company anticipates a significant net gain of $298 million from the mark-to-market of its financial commodity derivative contracts for the fourth quarter of 2023. This non-cash gain will be excluded when calculating Adjusted Net Income (Non-GAAP), while $18 million in net cash received from derivative settlements will be added back. The filing also details EOG's extensive portfolio of financial commodity derivative contracts, including crude oil and natural gas swap contracts, and natural gas basis swap contracts, with various settlement periods extending into 2025. No collateral was posted or held by EOG as of December 31, 2023, related to these derivative contracts.

Key Highlights

  • 1EOG anticipates a $298 million net gain on the mark-to-market of its financial commodity derivative contracts for Q4 2023.
  • 2This $298 million gain is expected to be excluded from Adjusted Net Income (Non-GAAP) calculation.
  • 3EOG expects to add back $18 million in net cash received from derivative settlements to its Adjusted Net Income (Non-GAAP).
  • 4The company maintains a comprehensive suite of crude oil and natural gas derivative contracts.
  • 5Derivative contracts are in place for crude oil swaps, natural gas swaps, and natural gas basis swaps.
  • 6Settlement periods for natural gas swap contracts extend through December 2025.
  • 7EOG reported no collateral posted or held related to its derivative contracts as of December 31, 2023.

Frequently Asked Questions

EOG anticipates a significant non-cash gain of $298 million from the mark-to-market accounting of its financial commodity derivative contracts for the fourth quarter of 2023. This gain will be excluded from the Non-GAAP measure of Adjusted Net Income.

For Q4 2023, EOG expects to subtract the $298 million mark-to-market gain and add back $18 million in net cash received from derivative settlements when calculating Adjusted Net Income (Non-GAAP).

EOG utilizes financial price swap, option, swaption, collar, and basis swap contracts. The filing specifically details crude oil financial price swap contracts, natural gas financial price swap contracts, and natural gas basis swap contracts with various settlement periods.

As of December 31, 2023, EOG reported that it had no collateral posted and no collateral held in connection with its financial commodity derivative contracts.