-----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, F7j9Ly9i8wtmcco9w3E5SvXbpxsjddPYvc88uukgXsdlGoGlyRAJu+S8kndofHI5 ZYjGF5bxkYLEIVTTZHb0lQ== 0000821189-07-000213.txt : 20071029 0000821189-07-000213.hdr.sgml : 20071029 20071029164125 ACCESSION NUMBER: 0000821189-07-000213 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071029 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20071029 DATE AS OF CHANGE: 20071029 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: 071196888 BUSINESS ADDRESS: STREET 1: 1111 BAGBY, SKY LOBBY2 CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 7136517000 MAIL ADDRESS: STREET 1: 1111 BAGBY, SKY LOBBY2 CITY: HOUSTON STATE: TX ZIP: 77002 FORMER COMPANY: FORMER CONFORMED NAME: ENRON OIL & GAS CO DATE OF NAME CHANGE: 19920703 8-K 1 eog8k10-29guide.htm EOG 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 (Date of earliest event reported): October 29, 2007

_______________

EOG RESOURCES, INC.
(Exact name of registrant as specified in its charter)

 

Delaware
(State or other jurisdiction
of incorporation)

1-9743
(Commission File
Number)

47-0684736
(I.R.S. Employer
Identification No.)

1111 Bagby, Sky Lobby 2
Houston, Texas
(Address of principal executive offices)


77002
(Zip code)

 

713-651-7000
(Registrant's telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

EOG RESOURCES, INC.

Item 7.01 Regulation FD Disclosure.

I. Fourth Quarter and Full Year 2007 Forecast and Benchmark Commodity Pricing

(a) Fourth Quarter and Full Year 2007 Forecast

The forecast items for the fourth quarter and full year 2007 set forth below for EOG Resources, Inc. and its subsidiaries (EOG) are based on current available information and expectations as of the date of this document. This forecast replaces and supersedes any previously issued guidance or forecast.

Estimates are provided in the attached table, which is incorporated by reference herein.

(b) Benchmark Commodity Pricing

EOG bases United States and Canada natural gas price differentials upon the natural gas price at Henry Hub, Louisiana, using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.

EOG bases United States, Canada and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma, using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.

II. 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. All statements other than statements of historical facts, including, among others, statements regarding EOG's future financial position, business strategy, budgets, reserve information, projected levels of production, projected costs and plans and objectives of management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "strategy," "intend," "plan," "target" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning future operating results, the ability to replace or increase reserves or to increase production, or the ability to generate income or cash flows are forward-looking statement s. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its 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 EOG's forward-looking statements include, among others:

  • the timing and extent of changes in commodity prices for crude oil, natural gas and related products, foreign currency exchange rates, interest rates and financial market conditions;
  • the extent and effect of any hedging activities engaged in by EOG;
  • the timing and impact of liquefied natural gas imports;
  • changes in demand or prices for ammonia or methanol;
  • 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;
  • the ability to achieve production levels from existing and future oil and gas development projects due to operating hazards, drilling risks and the inherent uncertainties in predicting oil and gas reservoir performance;
  • the availability and cost of drilling rigs, experienced drilling crews, tubular steel and other materials, equipment and services used in drilling and well completions;
  • the availability, terms and timing of mineral licenses and leases and governmental and other permits and rights of way;
  • access to surface locations for drilling and production facilities;
  • the availability and capacity of gathering, processing and pipeline transportation facilities;
  • the availability of compression uplift capacity;
  • the extent to which EOG can economically develop its Barnett Shale acreage outside of Johnson County, Texas;
  • whether EOG is successful in its efforts to more densely develop its acreage in the Barnett Shale and other production areas;
  • political developments around the world and the enactment of new government policies, legislation and regulations;
  • acts of war and terrorism and responses to these acts; and
  • weather, including weather-related delays in the installation of gathering and production facilities.

In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur. EOG's forward-looking statements speak only as of the date made and EOG undertakes no obligation 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

 

$/Mcf

US Dollars per thousand cubic feet

 

$/Mcfe

US Dollars per thousand cubic feet equivalent

 

$MM

US Dollars in millions

 

MBbld

Thousand barrels per day

 

MMcfd

Million cubic feet per day

 

MMcfed

Million cubic feet equivalent per day

 

NYMEX

New York Mercantile Exchange

 

WTI

West Texas Intermediate

 

SIGNATURES

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 hereunto duly authorized.

   

EOG RESOURCES, INC.
(Registrant)

     
     
     

Date: October 29, 2007

By:

/s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

 

Estimated Ranges  
(See text for additional information)  
                           4Q 2007      Full Year 2007  
Daily Production                   
  Natural Gas (MMcfd)                   
      United States   975 - 1,065 * 962 - 985 *
      Canada   212 - 228   220 - 224  
      Trinidad   230 - 262   248 - 257  
      United Kingdom   17 - 25   23 - 25  
      Total   1,434 - 1,580   1,453 - 1,491  
                         
  Crude Oil and Condensate (MBbld)                   
      United States   24.0 - 29.0   23.5 - 25.0  
      Canada   2.2 - 2.8   2.3 - 2.7  
      Trinidad   3.5 - 4.1   3.8 - 4.2  
      Total   29.7 - 35.9   29.6 - 31.9  
                         
  Natural Gas Liquids (MBbld)                   
      United States   9.2 - 12.5   9.5 - 11.5  
      Canada   0.7 - 0.9   0.9 - 1.0  
      Total   9.9 - 13.4   10.4 - 12.5  
                         
  Natural Gas Equivalent Volumes (MMcfed)                   
      United States   1,174 - 1,314   1,160 - 1,204  
      Canada   229 - 250   239 - 246  
      Trinidad   251 - 287   271 - 282  
      United Kingdom   17 - 25   23 - 25  
      Total   1,671 - 1,876   1,693 - 1,757  
                         
Operating Costs                   
  Unit Costs ($/Mcfe)                   
      Lease and Well   $ 0.73 - $ 0.77   $ 0.73 - $ 0.77  
      Transportation Costs   $ 0.28 - $ 0.34   $ 0.26 - $ 0.30  
      Depreciation, Depletion and Amortization   $ 1.74 - $ 1.81   $ 1.69 - $ 1.73  
                         
Expenses ($MM)                   
  Exploration, Dry Hole and Impairment    $ 115.0 - $ 145.0   $ 385.0 - $ 415.0  
  General and Administrative    $   48.0 - $   52.0   $ 187.0 - $ 192.0  
  Capitalized Interest    $     7.2 - $     9.0   $   28.0 - $   30.0  
  Net Interest    $   12.0 - $   16.0   $   43.0 - $   47.0  
                         
Taxes Other Than Income (% of Revenue)    5.0% - 6.2%   5.2% - 5.5%  
                         
Income Taxes                   
  Effective Rate    34% - 37%   34% - 37%  
  Deferred Ratio    80% - 100%   80% - 100%  
                         
Preferred Stock Dividends ($MM)    $ 0.7 - $ 0.9   $ 4.2 - $ 4.6  
                         
Capital Expenditures, excluding Acquisitions ($MM) - FY 2007            Approximately   $ 3,700  
                         
Pricing - Refer to I.(b) Benchmark Commodity Pricing in text                  
  Natural Gas ($/Mcf)                   
    Differentials (include the effect of physical contracts)                   
      United States - below NYMEX Henry Hub   $ 0.55 - $ 1.00   $ 0.60 - $ 0.72  
      Canada - below NYMEX Henry Hub   $ 0.80 - $ 1.10   $ 0.71 - $ 0.78  
                         
    Realizations                   
      Trinidad   $ 2.25 - $ 2.75   $ 2.30 - $ 2.45  
      United Kingdom   $ 6.75 - $ 9.50   $ 5.40 - $ 6.40  
                         
  Crude Oil and Condensate ($/Bbl)                   
    Differentials                   
      United States - below WTI   $ 3.50 - $ 5.50   $ 3.25 - $ 3.85  
      Canada - below WTI   $ 7.00 - $ 9.25   $ 5.70 - $ 6.50  
      Trinidad - below WTI   $ 7.00 - $ 9.00   $ 0.80 - $ 2.00  
                         
  * Contingent on natural gas prices in the Rocky Mountain Area.                   
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