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.