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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)
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EOG RESOURCES, INC.
Item 9. Regulation FD Disclosure
I. Fourth Quarter 2001
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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 $34.3MM.
The Company does not provide guidance on other income,
other expense, or gain or loss on sales of reserves and
related assets unless specifically noted.
As stated in a previous Form 8-K filing on October 2,
2001, during the fourth quarter the Company reduced production
of North America natural gas and condensate production due to
a weak natural gas price environment.
Additional estimates are shown in the attached table.
II. 2002 Natural Gas Financial Price Swaps
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Tabulated below is a summary of the Company's open natural
gas price swap positions at January 15, 2002:
2002 Price Volume
Month ($/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.
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IV. Exposure to Enron Corp.
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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.
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Definitions
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$/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
$MM US Dollars in millions
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
EOG RESOURCES, INC.
Date: January 15, 2002 By: /s/ TIMOTHY K. DRIGGERS
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Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)
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EOG Resources, Inc.
Estimated Ranges
4Q 2001
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Daily Production
Natural Gas (MMcfd)
US 630 - 635
Canada 137 - 140
Trinidad 118 - 120
Total 885 - 895
Crude Oil (Mbd)
US 19.5 - 20.0
Canada 1.6 - 1.7
Trinidad 2.0 - 2.2
Total 23.1 - 23.9
Natural Gas Liquids (Mbd)
US 3.3 - 3.7
Canada 0.4 - 0.6
Total 3.7 - 4.3
Operating Costs
Unit Costs ($/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