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: September 10, 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 Second Half and 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 Resources, Inc. (EOG) enters into
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 which in turn
affects average realized hydrocarbon prices.
Presented below is a summary of EOG's 2003 second half and
2004 natural gas and crude oil financial price swap contracts and
natural gas financial collar contracts as of September 10, 2003.
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 Net Volume
($/MMBtu) (MMBtud)
2003
July (closed) $4.77 100,000
August (closed) 4.46 75,000
September (closed) 4.42 75,000
October 4.70 205,000
November 5.28 10,000
December 5.49 10,000
2004
January $5.57 30,000
February 5.50 30,000
March 5.37 30,000
April 4.89 30,000
May 4.80 30,000
June 4.80 30,000
July 4.80 30,000
August 4.80 30,000
September 4.78 30,000
October 4.80 30,000
(b) Crude Oil Financial Price Swap Contracts
Average Price Volume
2003 ($/Bbl) (Bbld)
July (closed) $25.90 5,000
August (closed) 25.49 5,000
September 25.19 5,000
October 24.90 5,000
November 24.70 5,000
December 24.47 5,000
(c) Natural Gas Financial Collar Contracts
Natural Gas Financial Collar Contracts
Floor Price Ceiling Price
Floor Weighted Ceiling Weighted
Volume Range Average Range Average
(MMBtud) ($/MMBtu) ($/MMBtu) ($/MMBtu) ($/MMBtu)
2003(1)
July (closed) 125,000 $3.59 - 3.91 $3.76 $4.73 - 5.91 $5.27
August (closed) 125,000 3.60 - 3.91 3.76 4.73 - 5.91 5.27
September (closed) 125,000 3.60 - 3.89 3.75 4.73 - 5.89 5.26
October 125,000 3.60 - 3.90 3.75 4.73 - 5.90 5.27
November 255,000 3.77 - 5.07 4.38 4.90 - 6.04 5.42
December 255,000 3.92 - 5.27 4.57 5.05 - 6.18 5.61
2004
January(2) 150,000 $5.10 - 5.39 $5.25 $6.11 - 6.43 $6.25
February(2) 150,000 5.05 - 5.32 5.19 6.06 - 6.37 6.20
March(2) 150,000 4.94 - 5.19 5.08 5.96 - 6.27 6.09
April 195,000 4.47 - 4.71 4.58 5.00 - 5.30 5.14
May 195,000 4.47 - 4.75 4.58 5.00 - 5.17 5.07
June 195,000 4.47 - 4.75 4.58 5.00 - 5.17 5.07
July 195,000 4.47 - 4.75 4.58 5.00 - 5.17 5.07
August 195,000 4.47 - 4.75 4.58 5.00 - 5.17 5.07
September 195,000 4.47 - 4.75 4.58 5.00 - 5.17 5.07
October 195,000 4.47 - 4.75 4.58 5.00 - 5.17 5.07
(1) 50,000 MMBtud of each of the 2003 monthly contract volumes
were purchased at a premium of $0.10 per MMBtu.
(2) The collar contracts for January 2004 to March 2004 were
purchased at a premium of $0.10 per MMBtu.
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 as
described above.
This mark-to-market computation is very sensitive to prices
(can move up or down) and will largely be determined by closing
NYMEX prices on the last day of the reporting period, which could
differ significantly from those of the current market place.
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: September 10, 2003 By: /s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President and Chief
Accounting Officer
(Principal Accounting Officer)