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: July 1, 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 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 EOG Resources, Inc. (EOG) enters
into NYMEX-related financial commodity price swap and collar
contracts. Over and above these financial transactions, EOG
occasionally enters into various physical commodity contracts.
The financial impact of these various physical commodity contracts
is included in natural gas revenues which in turn affects average
realized natural gas prices.
Presented below is a summary of EOG's 2003 natural gas and
crude oil financial price swap contracts and natural gas
financial collar contracts as of June 30, 2003. EOG accounts for
these price swap and collar contracts using the mark-to-market
accounting method. EOG has no contracts in place beyond 2003.
(a) Natural Gas Financial Price Swap Contracts
Average Price Net Volume
($/MMBtu) (MMBtud)
April (closed) $4.96 100,000
May (closed) $4.82 100,000
June (closed) $4.77 100,000
July (closed) $4.77 100,000
August $4.46 75,000
September $4.42 75,000
October $4.41 75,000
(b) Crude Oil Financial Price Swap Contracts
Average Price Volume
($/Bbl) (Bbld)
April (closed) $27.77 3,000
May (closed) $27.04 3,000
June (closed) $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
EOG'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
April (closed) $4.01 $6.01 $4.02 $6.03 $3.88 $4.80
May (closed) $3.92 $5.92 $3.88 $5.89 $3.78 $4.70
June (closed) $3.89 $5.89 $3.89 $5.90 $3.78 $4.70
July (closed) $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
April (closed) $4.01 $5.87 $3.59 $4.97
May (closed) $3.92 $5.78 $3.54 $4.92
June (closed) $3.89 $5.75 $3.56 $4.94
July (closed) $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 the
effect of cash settlements 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 second quarter of 2003, EOG expects to
recognize a mark-to-market loss from these contracts of $15.8
million compared to a gain of $0.7 million for the prior year
period. During the second 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
$11.2 million compared to a net cash outflow of $19.8 million for
the comparable period in 2002.
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. 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, foreign
currency exchange rates and interest rates; the timing and impact
of liquefied natural gas imports; 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; acts of war; 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
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: July 1, 2003 By: /s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)