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 6, 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. 2004 Second Quarter Financial Commodity Contracts
For the second quarter of 2004, EOG Resources, Inc. (EOG)
anticipates a loss of $14.6 million from mark-to-market financial
commodity price swap and collar contracts compared to a loss of
$15.8 million for the prior year period. During the second
quarter of 2004, the net cash outflow related to settled natural
gas and crude oil financial price swap contracts and settled
natural gas financial collar contracts was $35.9 million compared
to a net cash outflow of $11.2 million for the prior year period.
II. 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 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 and Crude Oil Financial Price Swap Contracts
EOG has not entered into any additional natural gas or crude
oil financial price swap contracts since EOG filed its Quarterly
Report on Form 10-Q on May 4, 2004, which provided an update of
all such financial price swap contracts as of that date. EOG
accounts for these financial price swap contracts using the mark-
to-market accounting method.
(b) Natural Gas Financial Collar Contracts
Since EOG filed its Quarterly Report on Form 10-Q on May 4,
2004, EOG entered into additional natural gas financial collar
contracts covering notional volumes of 100,000 million British
thermal units per day (MMBtud) for the month of November 2004 at
an average floor price of $6.35 per million British thermal units
(MMBtu) and an average ceiling price of $7.61 per MMBtu. EOG
accounts for these financial collar contracts using the mark-to-
market accounting method. Presented below is a summary of EOG's
remaining 2004 natural gas financial collar contracts as of July 6,
2004.
Floor Price Ceiling Price
Floor Weighted Ceiling Weighted
Volume Range Average Range Average
Month (MMBtud) ($/MMBtu) ($/MMBtu) ($/MMBtu) ($/MMBtu)
July (closed) 375,000 $4.47 - 4.75 $4.58 $4.93 - 5.19 $5.09
August 375,000 4.47 - 4.75 4.58 4.93 - 5.19 5.09
September 375,000 4.47 - 4.75 4.58 4.93 - 5.19 5.09
October 375,000 4.47 - 4.75 4.58 4.93 - 5.19 5.09
November 100,000 6.35 - 6.35 6.35 7.60 - 7.64 7.61
III. 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 and changes in demand or prices
for ammonia or methanol; 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; the extent
to which EOG can replicate on its other Barnett Shale acreage the
results of its most recent Barnett Shale wells; political
developments around the world; acts of war and terrorism and
responses to these acts; 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.
(Registrant)
Date: July 6, 2004 By: /s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President and Chief
Accounting Officer
(Principal Accounting Officer)