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: April 9, 2003
_______________
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 5. Other Information
On March 12, 2003, the Audit Committee of EOG Resources,
Inc. and subsidiaries ("the Company") preapproved the
retention of Deloitte & Touche LLP ("Deloitte"), the Company's
independent auditors, to provide the following services:
(a) the audit of the Company's financial statements (including
benefit plans) for the year ending December 31, 2003;
(b) advice and research during calendar year 2003 regarding the
accounting and tax treatment of matters arising in the ordinary
course of business and in connection with potential acquisitions
or dispositions of businesses or assets;
(c) comfort letters during calendar year 2003 in connection with
(i) securities offerings under the Company's Registration
Statement on Form S-3, filed with the Securities and Exchange
Commission ("SEC") on September 28, 2000, or any other
Registration Statement filed by the Company or any of its
subsidiaries and declared effective by the SEC, and (ii)
securities offerings exempt from registration under the
Securities Act of 1933, as amended;
(d) advice and assistance related to refunds and estimated
payments of federal income taxes;
(e) training and educational services, including conferences,
seminars and presentations sponsored by Deloitte;
(f) providing tax return preparation software and training and
information technology services relating to such software; and
(g) any other services that are customarily provided or
necessary in connection with the foregoing.
Item 9. Regulation FD Disclosure
I. 2003 Natural Gas and Crude Oil Financial Price Swap and
Natural Gas Financial Collar Contracts
With the objective of enhancing the certainty of future
revenues, from time to time the Company enters into NYMEX-related
financial commodity price swap and collar contracts. Over and
above these financial transactions, the Company occasionally
enters into various physical commodity contracts. The impact
resulting from these various physical commodity contracts is
included in natural gas revenues and impact the average realized
natural gas prices. Guidance is provided in the attached table.
Presented below is a summary of the Company's 2003 natural
gas and crude oil financial price swap contracts and natural gas
financial collar contracts as of April 9, 2003. The Company
accounts for these price swap and collar contracts using the
mark-to-market accounting method. The Company has no contracts
in place beyond 2003.
(a) Natural Gas Financial Price Swap Contracts
Average Price Volume
($/MMBtu) (MMBtud)
March (closed) $5.19 100,000
April (closed) $4.96 100,000
May $4.82 100,000
June $4.77 100,000
July $4.77 100,000
August $4.77 100,000
September $4.74 100,000
October $4.74 100,000
(b) Crude Oil Financial Price Swap Contracts
Average Price Volume
($/Bbl) (Bbld)
January (closed) $27.34 2,000
February (closed) $26.91 2,000
March (closed) $27.96 4,000
April $27.77 3,000
May $27.04 3,000
June $26.43 5,000
July $25.90 5,000
August $25.49 5,000
September $25.19 5,000
October $24.90 5,000
November $24.70 5,000
December $24.47 5,000
(c) Natural Gas Financial Collar Contracts - Presented below are
the Company's 2003 natural gas financial collar contracts and
their respective volumes, with floor and ceiling prices expressed
in $/MMBtu.
10,000 MMBtud 15,000 MMBtud 25,000 MMBtud
Floor Price Ceiling Price Floor Price Ceiling Price Floor Price Ceiling Price
February (closed) $4.22 $6.22 $4.30 $6.30 $4.19 $5.05
March (closed) $4.15 $6.15 $4.20 $6.20 $4.08 $5.00
April (closed) $4.01 $6.01 $4.02 $6.03 $3.88 $4.80
May $3.92 $5.92 $3.88 $5.89 $3.78 $4.70
June $3.89 $5.89 $3.89 $5.90 $3.78 $4.70
July $3.91 $5.91 $3.89 $5.90 $3.79 $4.73
August $3.91 $5.91 $3.91 $5.91 $3.79 $4.73
September $3.89 $5.89 $3.87 $5.87 $3.77 $4.73
October $3.90 $5.90 $3.87 $5.87 $3.77 $4.73
November $4.04 $6.04 $4.02 $6.03 $3.91 $4.90
December $4.18 $6.18 $4.15 $6.16 $4.04 $5.05
25,000 MMBtud 50,000 MMBtud
Floor Price Ceiling Price Floor Price Ceiling Price
January (closed) - - $3.87 $6.09
February (closed) $4.22 $6.08 $3.76 $5.98
March (closed) $4.15 $6.01 $3.61 $5.83
April (closed) $4.01 $5.87 $3.59 $4.97
May $3.92 $5.78 $3.54 $4.92
June $3.89 $5.75 $3.56 $4.94
July $3.91 $5.77 $3.59 $4.97
August $3.91 $5.77 $3.60 $4.98
September $3.89 $5.75 $3.60 $4.98
October $3.90 $5.76 $3.60 $4.98
November $4.04 $5.90 $3.77 $5.15
December $4.18 $6.04 $3.92 $5.30
Mark-to-Market Line Item on the Income Statement
The mark-to-market line item on the income statement, which
can be approximated using the data above and prices for closed
and open NYMEX contracts at any time, would include not only
actual cash outflows for the period, but also the gains or losses
resulting from the changes in mark-to-market values at the
beginning and end of the period for contracts in place for the
balance of the year described above.
Accordingly, for the first quarter of 2003, the Company will
recognize a mark-to-market loss from these contracts of $45.2 million
compared to a loss of $34.3 million for the prior year period.
During the first quarter of 2003, net cash outflows related to settled
natural gas and crude oil financial price swap contracts and
settled natural gas financial collar contracts were $27.9 million
compared to a net cash inflow of $11.0 million for the comparable
period in 2002.
Definitions
$/Bbl US Dollars per barrel
$/MMBtu US Dollars per million British thermal units
Bbld Barrels per day
MMBtud Million British thermal units per day
NYMEX New York Mercantile Exchange
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: April 9, 2003 By: /s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)