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 13, 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. Fourth Quarter 2002 Forecast
The forecast items for fourth quarter 2002 set forth
below for EOG Resources, Inc. (EOG) are based on current
available information and expectations as of the date of this
document, and replace the guidance for these items set forth
in EOG's Current Report on Form 8-K filed October 21, 2002.
Estimates are provided in the attached table which is
incorporated by reference herein.
II. 2003 Forecast
EOG has not completed its capital budgeting and planning
process for calendar year 2003. It is currently targeting
total company production growth of approximately 5-6% per
basic share for the full year 2003.
III. Fourth Quarter 2002 Natural Gas and Crude Oil Financial
Price Swap and Natural Gas Costless Collar Contracts
Presented below is a summary of EOG's fourth quarter 2002
natural gas and crude oil financial price swap contracts and
natural gas costless collar contracts. EOG accounts for these
price swap and costless collar contracts using the mark-to-market
accounting method.
. Natural Gas Financial Price Swap Contracts
EOG had price swap contracts in place, which are closed,
covering notional volumes of 200,000 MMBtud at an average
price of $3.13 per MMBtu for October 2002 and notional
volumes of 75,000 MMBtud at an average price of $3.35 per
MMBtu for November and December 2002.
. Crude Oil Financial Price Swap Contract
EOG had a price swap contract in place, which is closed,
covering notional volumes of two thousand barrels of oil
per day at a price of $21.50 per barrel for the period
October 2002 through December 2002.
. Natural Gas Costless Collar Contracts
EOG had costless collar contracts in place covering notional
volumes of 100,000 MMBtud with a floor price of $3.10 per
MMBtu and ceiling prices that averaged $3.43 per MMBtu for
October 2002. These contracts closed at a settlement price
greater than the ceiling price.
For the fourth quarter 2002, EOG anticipates a loss from
outstanding mark-to-market commodity financial price swap and
collar contracts of $7.1 million compared to a gain of $2.7
million for the prior year period. During the same period,
net cash outflows from outstanding commodity price swap and
collar contracts were $11.2 million, which included a $1.8
million premium payment in October 2002 for a 2003 collar
contract, compared to net cash inflows of $34.3 million for
the comparable period in 2001.
IV. 2003 Natural Gas and Crude Oil Financial Price Swap and
Natural Gas Collar Contracts
Presented below is a summary of EOG's 2003 natural gas and
crude oil financial price swap contracts and natural gas collar
contracts. EOG accounts for these price swap and collar
contracts using the mark-to-market accounting method.
(a) Natural Gas Financial Price Swap Contracts
Average Price Volume
($/MMBtu) (MMBtud)
March $5.12 50,000
April $4.90 50,000
May $4.78 50,000
June $4.73 50,000
July $4.74 50,000
August $4.74 50,000
September $4.71 50,000
October $4.70 50,000
(b) Crude Oil Financial Price Swap Contracts
Average Price Volume
($/Bbl) (Bbld)
January $27.34 2,000
February $26.91 2,000
March $27.96 4,000
April $27.30 4,000
May $26.63 4,000
June $26.10 4,000
July $25.63 4,000
August $25.28 4,000
September $24.98 4,000
October $24.71 4,000
November $24.52 4,000
December $24.32 4,000
(c) Natural Gas Collar Contracts - Presented below are EOG's 2003
natural gas 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 $4.22 $6.22 $4.30 $6.30 $4.19 $5.05
March $4.15 $6.15 $4.20 $6.20 $4.08 $5.00
April $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 - - $3.87 $6.09
February $4.22 $6.08 $3.76 $5.98
March $4.15 $6.01 $3.61 $5.83
April $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
*Contract purchased at a premium of $0.10 per MMBtu, that was
recognized in fourth quarter 2002 earnings and cash flows. The
January portion of this contract closed at a settlement price
within the price range without any first quarter 2003 financial
impact.
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 and
interest rates; 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; 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
$/Mcf US Dollars per thousand cubic feet
$/Mcfe US Dollars per thousand cubic feet equivalent
$MM US Dollars in millions
Bbld Barrels per day
MMBtu Million British thermal units
MMBtud Million British thermal units per day
MMcfd Million cubic feet per day
Mbd Thousand barrels per day
MM Millions
NYMEX New York Mercantile Exchange
WTI West Texas Intermediate
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
EOG RESOURCES, INC.
Date: January 13, 2003 By: /s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)
EOG Resources, Inc.
Estimated Ranges
4Q 2002
Daily Production
Natural Gas (MMcfd)
US 625 - 650
Canada 150 - 165
Trinidad 145 - 160
Total 920 - 975
Crude Oil (Mbd)
US 17.0 - 19.0
Canada 1.5 - 2.5
Trinidad 2.0 - 2.9
Total 20.5 - 24.4
Natural Gas Liquids (Mbd)
US 2.0 - 3.0
Canada 0.5 - 1.0
Total 2.5 - 4.0
Operating Costs
Unit Costs ($/Mcfe)
Lease and Well $0.45 - $0.48
Total Depreciation, Depletion
and Amortization $0.98 - $1.02
Expenses ($MM)
Exploration, Dry Hole and Impairment 60.0 - 70.0
General and Administrative 20.0 - 25.0
Capitalized Interest 1.9 - 2.3
Net Interest 14.0 - 16.0
Taxes Other than Income (% of Revenue) 6.0 - 7.2
Taxes
Effective Rate 20% - 30%
Deferred Ratio > 100%
Preferred Dividends ($MM) 2.5 - 3.0
Shares Outstanding (MM) at December 31, 2002
Basic 114.4
Diluted (based on stock price of $39.92) 116.4
Capital Expenditures Excluding Acquisitions and Trinidad Ammonia
Investments ($MM) - FY 2002
North America 700 - 740
International 30 - 50
Total 730 - 790
Pricing
Natural Gas ($/Mcf)
Differentials (include the effect of
physical contracts)
United States - below NYMEX Henry Hub $0.25 - $0.45
Canada - below NYMEX Henry Hub $0.50 - $0.70
Realizations
Trinidad $1.15 - $1.25
Crude Oil ($/Bbl)
Differentials
US - below WTI $0.60 - $1.00
Canada - below WTI $2.50 - $3.75
Trinidad - below WTI $1.50 - $2.00