-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AB0UdKiYZ5qUw9jx3LstTs9g3lTMuVdqFJG6bsabmS+EzVmROCvbwZDKQPK9ez8G KW055v+6vTW6x04x4x3NYg== 0000821189-02-000001.txt : 20020413 0000821189-02-000001.hdr.sgml : 20020413 ACCESSION NUMBER: 0000821189-02-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020115 ITEM INFORMATION: FILED AS OF DATE: 20020116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EOG RESOURCES INC CENTRAL INDEX KEY: 0000821189 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 470684736 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09743 FILM NUMBER: 2510044 BUSINESS ADDRESS: STREET 1: 333 CLAY SUITE 4200 CITY: HOUSTON STATE: TX ZIP: 77002-7361 BUSINESS PHONE: 7136517000 MAIL ADDRESS: STREET 1: 1200 SMITH STREET CITY: HOUSTON STATE: TX ZIP: 77002-7361 FORMER COMPANY: FORMER CONFORMED NAME: ENRON OIL & GAS CO DATE OF NAME CHANGE: 19920703 8-K 1 form8k011502.txt FORM 8-K FOR ITEM 9 - REGULATION FD DISCLOSURE ====================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: January 15, 2002 _______________ EOG RESOURCES, INC. (Exact name of registrant as specified in its charter) Delaware 1-9743 47-0684736 (State or other (Commission I.R.S. Employer jurisdiction File Identification No.) of incorporation or Number) organization) 333 Clay Suite 4200 Houston, Texas 77002 (Address of principal (Zip code) executive offices) 713/651-7000 (Registrant's telephone number, including area code) ====================================================================== 2 EOG RESOURCES, INC. Item 9. Regulation FD Disclosure I. Fourth Quarter 2001 ------------------- The forecast for fourth quarter 2001 set forth below for EOG Resources, Inc. ('the Company') is given as of the date of this document only and is based on current available information and expectations. The Company currently anticipates a mark-to-market gain in the fourth quarter from outstanding commodity price swaps of $2.7MM. During the fourth quarter, the cash realized from outstanding commodity price swaps and collars is expected to be $34.3MM. The Company does not provide guidance on other income, other expense, or gain or loss on sales of reserves and related assets unless specifically noted. As stated in a previous Form 8-K filing on October 2, 2001, during the fourth quarter the Company reduced production of North America natural gas and condensate production due to a weak natural gas price environment. Additional estimates are shown in the attached table. II. 2002 Natural Gas Financial Price Swaps -------------------------------------- Tabulated below is a summary of the Company's open natural gas price swap positions at January 15, 2002: 2002 Price Volume Month ($/MMBtu) (MMBtud) ------------------- --------- -------- January $ 3.21 140,000 February $ 3.13 190,000 March through May $ 3.09 140,000 June through December $ 3.24 100,000 III. 2002 Natural Gas Physical Contracts ----------------------------------- At January 15, 2002, the Company had outstanding natural gas physical contracts for 95,000 MMBtud at an average price of $3.03 per MMBtu for January and February 2002 in the U.S. and approximately 24,000 MMBtud at an average price of US$3.35 per MMBtu for the period January through December 2002 in Canada. 3 IV. Exposure to Enron Corp. ----------------------- Enron Corp. and certain of its affiliates, including Enron North America Corp., have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. The Company plans to record approximately $20MM in bad debt expense in the fourth quarter 2001 related to contracts with Enron affiliates, including 2001 and 2002 natural gas and crude oil derivative exposure related to Enron Corp. The Company has other contractual relationships including guarantees and indemnifications with Enron Corp. and certain of its affiliates that have filed for reorganization. Based on the Company's review of these other matters, at this time the Company believes that Enron Corp.'s Chapter 11 proceedings will not have a material adverse effect on the Company's position. V. Forward-Looking Statements -------------------------- This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are not guarantees of performance. Although the Company believes its expectations reflected in forward-looking statements are based on reasonable assumptions, no assurance can be given that these expectations will be achieved. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include, among others: the timing and extent of changes in commodity prices for crude oil, natural gas and related products and interest rates; the extent and effect of any hedging activities engaged in by the Company; the extent of the Company's success in discovering, developing, marketing and producing reserves and in acquiring oil and gas properties; the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; political developments around the world, including terrorist activities and responses to such activities; and financial market conditions. In light of these risks, uncertainties and assumptions, the events anticipated by the Company's forward-looking statements might not occur. The Company undertakes no obligations to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. 4 Definitions - ----------- $/Bbl US Dollars per barrel $/Mcf US Dollars per thousand cubic feet $/Mcfe US Dollars per thousand cubic feet equivalent $/MMBtu US Dollars per million British thermal units MMBtu Million British thermal units MMBtud Million British thermal units per day MMcfd Million cubic feet per day Mbd Thousand barrels per day WTI West Texas Intermediate MM Millions NYMEX New York Mercantile Exchange $MM US Dollars in millions SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EOG RESOURCES, INC. Date: January 15, 2002 By: /s/ TIMOTHY K. DRIGGERS ----------------------------- Timothy K. Driggers Vice President, Accounting and Land Administration (Principal Accounting Officer) 5 EOG Resources, Inc. Estimated Ranges 4Q 2001 ----------------------- Daily Production Natural Gas (MMcfd) US 630 - 635 Canada 137 - 140 Trinidad 118 - 120 Total 885 - 895 Crude Oil (Mbd) US 19.5 - 20.0 Canada 1.6 - 1.7 Trinidad 2.0 - 2.2 Total 23.1 - 23.9 Natural Gas Liquids (Mbd) US 3.3 - 3.7 Canada 0.4 - 0.6 Total 3.7 - 4.3 Operating Costs Unit Costs ($/Mcfe) Lease and Well $0.46 - $0.48 Depreciation, Depletion and Amortization $0.99 - $1.02 Expenses ($MM) Exploration 16.0 - 18.0 Dry Hole 32.0 - 34.0 Impairment 25.0 - 28.0 General and Administrative 21.0 - 23.0 Enron Exposure 20.0 Net Interest 10.0 - 12.0 Capitalized Interest 1.8 - 2.3 Taxes Other than Income (% of Revenue) 6.2 - 6.4 Taxes Effective Rate 48% - 52% Deferred Ratio 20% - 25% Preferred Dividends ($MM) 2.8 - 3.0 Shares Outstanding (MM) at December 31, 2001 Basic 115.0 - 115.3 Fully Diluted 116.4 - 116.8 Pricing Natural Gas ($/Mcf) Differentials US - below NYMEX Henry Hub of $2.49 $0.08 - $0.12 Canada - below NYMEX Henry Hub of $2.49 $0.16 - $0.20 Realizations Trinidad $1.22 Crude Oil ($/Bbl) Differentials US - below WTI of $20.43 $1.50 - $1.60 Canada - below WTI of $20.43 $4.00 - $4.10 Trinidad - below WTI of $20.43 $3.80 - $3.90
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