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 9, 2004
_______________
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 Year-End Debt Balance
EOG Resources, Inc. (EOG) anticipates its 2003 year-end
debt balance to be $1,109 million.
II. 2003 Fourth Quarter Financial Commodity Contracts
For the fourth quarter of 2003, EOG anticipates a loss from
mark-to-market financial commodity price swap and collar
contracts of $43 million compared to a loss of $7 million for the
prior year period. During the fourth quarter of 2003, the net
cash inflow related to settled natural gas and crude oil
financial price swap contracts, settled natural gas financial
collar contracts and premium payments associated with certain
natural gas financial collar contracts was $1 million compared to
a net cash outflow of $11 million for the comparable period in
2002.
III. 2004 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 enters into New York Mercantile
Exchange (NYMEX) related financial commodity price swap and
collar contracts. In addition to these financial transactions,
EOG is a party to various physical commodity contracts for the
sale of hydrocarbons that cover varying periods of time and have
varying pricing provisions. The financial impact of these
various physical commodity contracts is included in revenues at
the time of settlement, which in turn affects average realized
hydrocarbon prices.
(a) Natural Gas Financial Contracts
EOG did not enter into any additional natural gas financial
price swap or natural gas collar contracts since EOG filed its
Current Report on Form 8-K on November 3, 2003 (November 3, 2003
Form 8-K).
(b) Crude Oil Financial Contracts
Since EOG filed its November 3, 2003 Form 8-K, EOG entered
into additional crude oil financial price swap contracts covering
notional volumes of two thousand barrels per day (Bbld) for the
period January 2004 to August 2004 at an average price of $29.62
per barrel. EOG accounts for these price swap contracts using
the mark-to-market accounting method. Presented below is a
summary of EOG's 2004 crude oil financial price swap contracts as
of January 9, 2004.
Average Price Volume
($/Bbl) (Bbld)
2004
January $30.61 4,000
February 30.12 4,000
March 29.58 4,000
April 29.08 4,000
May 28.66 4,000
June 28.27 4,000
July 27.91 3,000
August 28.11 2,000
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 crude oil financial contract data
above, the natural gas financial contract data presented in the
November 3, 2003 Form 8-K 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 as
described above.
This mark-to-market computation is very sensitive to prices
(can move up or down), which could differ significantly from
those of the current market place.
IV. 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.
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 9, 2004 By: /s/TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President and Chief
Accounting Officer
(Principal Accounting Officer)