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: February 28, 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. First Quarter and Full Year 2003 Forecast
The forecast items for the first quarter and full year
2003 set forth below for EOG Resources, Inc. (EOG) are based
on current available information and expectations as of the
date of this document.
Estimates are provided in the attached table which is
incorporated by reference herein.
II. 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 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 impact resulting from
these various physical commodity contracts is included in natural
gas revenues and impact the average realized natural gas prices.
Guidance is provided in the attached table.
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 February 28, 2003. These
contracts remain unchanged from EOG's Current Report on
Form 8-K filed February 3, 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 Volume
($/MMBtu) (MMBtud)
March (closed) $5.19 100,000
April $4.96 100,000
May $4.82 100,000
June $4.77 100,000
July $4.77 100,000
August $4.77 100,000
September $4.74 100,000
October $4.74 100,000
(b) Crude Oil Financial Price Swap Contracts
Average Price Volume
($/Bbl) (Bbld)
January (closed) $27.34 2,000
February $26.91 2,000
March $27.96 4,000
April $27.77 5,000
May $27.04 5,000
June $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
February (closed) $4.22 $6.22 $4.30 $6.30 $4.19 $5.05
March (closed) $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 (closed) - - $3.87 $6.09
February (closed) $4.22 $6.08 $3.76 $5.98
March (closed) $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
Mark-to-Market Line Item on the Income Statement
Based on current commodity prices, and under the mark-to-
market accounting method, EOG anticipates its entire portfolio of
financial price swaps and collar transactions would result in a
loss for the mark-to-market line item for the first quarter 2003,
including first quarter cash outflows and the current "out-of-the-
money" mark-to-market of contracts in place for the
balance of the year. This line item, which can be approximated
using the data above and prices for closed and open NYMEX
contracts at any time, would include not only actual first
quarter cash outflows, but also the gains or losses resulting
from the changes in mark-to-market values at the
beginning and end of the first quarter for contracts in place for
the balance of the year 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 at March 31,
2003, which could differ significantly from those of the current
market place. The actual mark-to-market results and cash outflow
amounts for the first quarter are expected to be
released shortly after the quarter ends in a subsequent Current
Report on Form 8-K filing by EOG.
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 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; 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
$/Mcf US Dollars per thousand cubic feet
$/Mcfe US Dollars per thousand cubic feet equivalent
$/MMBtu US Dollars per million British thermal units
$MM US Dollars in millions
Bbld Barrels per day
Mbd Thousand barrels per day
MM Millions
MMBtud Million British thermal units per day
MMcfd Million cubic feet per day
NYMEX New York Mercantile Exchange
WTI West Texas Intermediate
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
EOG RESOURCES, INC.
Date: February 28, 2003 By: /s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)
EOG Resources, Inc.
Estimated Ranges
(See text for additional information)
1Q 2003 Full Year 2003
-------------- --------------
Daily Production
Natural Gas (MMcfd)
US 635 - 650 640 - 670
Canada 155 - 165 155 - 175
Trinidad 150 - 160 140 - 160
Total 940 - 975 935 - 1,005
Crude Oil (Mbd)
US 17.0 - 19.0 17.7 - 18.7
Canada 1.7 - 2.2 1.7 - 2.2
Trinidad 2.3 - 2.8 2.3 - 2.8
Total 21.0 - 24.0 21.7 - 23.7
Natural Gas Liquids (Mbd)
US 2.0 - 2.6 1.7 - 2.8
Canada 0.5 - 1.0 0.5 - 1.0
Total 2.5 - 3.6 2.2 - 3.8
Operating Costs
Unit Costs ($/Mcfe)
Lease and Well $0.45 - $0.47 $0.45 - $0.48
Depreciation, Depletion and Amortization $0.98 - $1.02 $0.98 - $1.02
Expenses ($MM)
Exploration, Dry Hole and Impairment 40.0 - 55.0 180.0 - 220.0
General and Administrative 22.0 - 26.0 95.0 - 105.0
Capitalized Interest 2.0 - 2.2 8.0 - 8.5
Net Interest 14.0 - 15.0 50.0 - 60.0
Cumulative After-Tax Loss for Change
in Accounting Principle ($MM) ~ 6.5 ~ 6.5
Taxes Other than Income (% of Revenue) 5.9 - 6.2 5.7 - 6.2
Taxes
Effective Rate 32% - 37% 32% - 37%
Deferred Ratio 50% - 70% 50% - 70%
Preferred Dividends ($MM) 2.5 - 3.0 11.0 - 11.5
Shares Outstanding (MM) at December 31, 2002
Basic 114.4
Fully Diluted (based on stock price of $39.92) 116.4
Capital Expenditures Excluding Acquisitions ($MM) - FY 2003 800 - 950
Pricing
Natural Gas ($/Mcf)
Differentials (include the effect of physical contracts)
United States - below NYMEX Henry Hub $0.45 - $0.55 $0.30 - $0.50
Canada - below NYMEX Henry Hub $1.50 - $2.00 $0.80 - $1.20
Realizations
Trinidad $1.15 - $1.25 $1.15 - $1.25
Crude Oil ($/Bbl)
Differentials
US - below WTI $1.00 - $1.50 $1.25 - $1.75
Canada - below WTI $4.00 - $5.50 $4.50 - $6.50
Trinidad - below WTI $2.75 - $3.75 $2.50 - $5.00