-----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, KZtMY4lM62qgnLZhCTuxmsdTX+2MDc7K3FM+mVp81+Q0vg+EAMyxlyWUy0+34I2i ZCTyRhQwTGjCEN/N1SmAGQ== 0000821189-02-000041.txt : 20021022 0000821189-02-000041.hdr.sgml : 20021022 20021021175824 ACCESSION NUMBER: 0000821189-02-000041 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021021 ITEM INFORMATION: FILED AS OF DATE: 20021022 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: 02794346 BUSINESS ADDRESS: STREET 1: 333 CLAY SUITE 4200 CITY: HOUSTON STATE: TX ZIP: 77002-7361 BUSINESS PHONE: 7136517000 MAIL ADDRESS: STREET 1: 333 CLAY STREET SUITE 4200 CITY: HOUSTON STATE: TX ZIP: 77002-7361 FORMER COMPANY: FORMER CONFORMED NAME: ENRON OIL & GAS CO DATE OF NAME CHANGE: 19920703 8-K 1 eog8-k1021guid.txt FORM 8-K 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: October 21, 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 77002 Houston, Texas (Zip code) (Address of principal executive offices) 713/651-7000 (Registrant's telephone number, including area code) EOG RESOURCES, INC. Item 9. Regulation FD Disclosure I. Fourth Quarter and Full Year 2002 The forecast items for the fourth quarter and full year 2002 set forth below for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of this document. The company continuously monitors commodity prices and in the event that prices and/or location differentials significantly change, EOG may modify drilling and production as appropriate. 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. Estimates are provided in the attached table. II. Natural Gas and Crude Oil Financial Price Swap and Costless Collar Contracts . Natural Gas Financial Price Swap and Costless Collar Contracts - Presented below is a summary of EOG's natural gas financial price swap contracts and costless collar contracts. EOG accounts for these price swap and costless collar contracts utilizing the mark-to-market accounting method.
Price Swaps Average Price Volume 2002 ($/MMBtu) (MMBtud) October (closed) $ 3.13 200,000 November and December $ 3.35 75,000
Costless Collars EOG has costless collar contracts in place with a floor price of $3.10 per MMBtu and ceiling prices that average $3.43 per MMBtu covering notional volumes of 100,000 MMBtud for October 2002 which are closed. . Crude Oil Financial Price Swap Contracts - EOG has contracts in place covering notional volumes of two thousand barrels of oil per day at a price of $21.50 per barrel for the period October 2002 through December 2002. For the full year 2003, EOG has contracts in place covering notional volumes of one thousand barrels of oil per day at an average price of $25.89 per barrel. EOG accounts for these price swap contracts utilizing the mark-to- market accounting method. III. 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 EOG 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 EOG; the extent of EOG'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 terrorist activities; and financial market conditions. In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements might not occur. EOG undertakes no obligations to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. Definitions $/Bbl US Dollars per barrel $/MMBtu US Dollars per million British thermal units $/Mcf US Dollars per thousand cubic feet $/Mcfe US Dollars per thousand cubic feet equivalent 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 $MM US Dollars in millions SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EOG RESOURCES, INC. Date: October 21, 2002 By: /s/ TIMOTHY K. DRIGGERS Timothy K. Driggers Vice President, Accounting and Land Administration (Principal Accounting Officer) EOG Resources, Inc. Estimated Ranges
4Q 2002 Full Year 2002 ----------- -------------- Daily Production Natural Gas (MMcfd) US 625 - 650 629 - 636 Canada 150 - 165 151 - 155 Trinidad 120 - 150 126 - 133 Total 895 - 965 906 - 924 Crude Oil (Mbd) US 17.0 - 19.5 18.6 - 19.2 Canada 1.5 - 2.0 1.9 - 2.0 Trinidad 2.0 - 2.9 2.2 - 2.4 Total 20.5 - 24.4 22.7 - 23.6 Natural Gas Liquids (Mbd) US 2.0 - 3.0 2.9 - 3.1 Canada 0.5 - 1.0 0.7 - 0.8 Total 2.5 - 4.0 3.6 - 3.9 Operating Costs Unit Costs ($/Mcfe) Lease and Well $0.44 - $0.47 $0.44 - $0.46 Total Depreciation, Depletion and Amortization $0.98 - $1.02 $0.99 - $1.01 Expenses ($MM) Exploration, Dry Hole and Impairment 40.0 - 60.0 150.0 - 170.0 General and Administrative 20.0 - 22.0 84.0 - 86.0 Capitalized Interest 2.0 - 2.3 9.1 - 9.4 Net Interest 15.0 - 18.0 60.0 - 63.0 Taxes Other than Income (% of Revenue) 6.0 - 7.2 6.5 - 7.0 Taxes Effective Rate 30% - 33% 30% - 33% Deferred Ratio >100% >100% Preferred Dividends ($MM) 2.5 - 3.0 11.0 - 11.5 Shares Outstanding (MM) at September 30, 2002 Basic 115.2 Diluted (based on stock price of $35.96) 116.7 Capital Expenditures Excluding Acquisitions and Trinidad Ammonia Investments ($MM) - FY 2002 North America 700 - 745 International 50 - 55 Total 750 - 800 Pricing Natural Gas ($/Mcf) Differentials (include the effect of physical contracts) United States - below NYMEX Henry Hub $0.20 - $0.40 $0.15 - $0.20 Canada - below NYMEX Henry Hub $0.55 - $0.75 $0.55 - $0.60 Realizations Trinidad $1.10 - $1.20 $1.18 - $1.21 Crude Oil ($/Bbl) Differentials US - below WTI $1.50 - $2.00 $1.30 - $1.50 Canada - below WTI $2.50 - $3.75 $2.30 - $2.65 Trinidad - below WTI $3.25 - $4.00 $3.00 - $3.30
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