Delaware
(State or other jurisdiction of incorporation) |
1-9743
(Commission File Number) |
47-0684736
(I.R.S. Employer Identification No.) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Crude Oil Derivative Contracts
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Weighted
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Volume (1)
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Average Price
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(Bbld)
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($/Bbl)
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2012
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January 1, 2012 through February 29, 2012 (closed)
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34,000
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$
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104.95
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March 1, 2012 through June 30, 2012 (closed)
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52,000
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105.80
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July 1, 2012 through August 31, 2012 (closed)
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50,000
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106.90
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September 2012 (closed)
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32,000
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106.61
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October 2012 (closed)
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42,000
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105.19
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November 1, 2012 through December 31, 2012
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42,000
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105.19
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2013
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January 1, 2013 through June 30, 2013
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101,000
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$
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99.29
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July 1, 2013 through December 31, 2013
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93,000
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98.44
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(1) | EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for an additional six-month period. Options covering a notional volume of 25,000 Bbld are exercisable on December 31, 2012. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 25,000 Bbld at an average price of $106.27 per barrel for the period January 1, 2013 through June 30, 2013. Options covering a notional volume of 62,000 Bbld are exercisable on June 28, 2013. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 62,000 Bbld at an average price of $100.24 per barrel for the period July 1, 2013 through December 31, 2013. Options covering a notional volume of 54,000 Bbld are exercisable on December 31, 2013. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 54,000 Bbld at an average price of $98.91 per barrel for the period January 1, 2014 through June 30, 2014. |
Natural Gas Derivative Contracts
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Volume (MMBtud)
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Weighted Average Price ($/MMBtu)
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2012 (1)
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January 1, 2012 through November 30, 2012 (closed)
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525,000
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$
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5.44
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December 2012
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525,000
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5.44
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2013 (2)
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January 1, 2013 through December 31, 2013
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150,000
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$
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4.79
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2014 (3)
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(1) | EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates. Such options are exercisable monthly up until the settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 425,000 MMBtud at an average price of $5.44 per MMBtu for December 2012. |
(2) | EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates. Such options are exercisable monthly up until the settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 150,000 MMBtud at an average price of $4.79 per MMBtu for each month of 2013. |
(3) | In July 2012, EOG settled its natural gas financial price swap contracts for the period January 1, 2014 through December 31, 2014. In connection with these contracts, the counterparties retain an option of entering into derivative contracts at future dates. Such options are exercisable monthly up until the settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 150,000 MMbtud at an average price of $4.79 per MMBtu for each month of 2014. |
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the timing and extent of changes in prices for, and demand for, crude oil and condensate, natural gas liquids, natural gas and related commodities;
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the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
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the extent to which EOG can optimize reserve recovery and economically develop its plays utilizing horizontal and vertical drilling, advanced completion technologies and hydraulic fracturing;
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the extent to which EOG is successful in its efforts to economically develop its acreage in, and to produce reserves and achieve anticipated production levels from, its existing and future crude oil and natural gas exploration and development projects, given the risks and uncertainties and capital expenditure requirements inherent in drilling, completing and operating crude oil and natural gas wells and the potential for interruptions of development and production, whether involuntary or intentional as a result of market or other conditions;
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·
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the extent to which EOG is successful in its efforts to market its crude oil, natural gas and related commodity production;
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the availability, proximity and capacity of, and costs associated with, gathering, processing, compression and transportation facilities;
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the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights-of-way;
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the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations, environmental laws and regulations relating to air emissions, waste disposal, hydraulic fracturing and access to and use of water, laws and regulations imposing conditions and restrictions on drilling and completion operations and laws and regulations with respect to derivatives and hedging activities;
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·
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EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties;
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the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically;
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competition in the oil and gas exploration and production industry for employees and other personnel, equipment, materials and services and, related thereto, the availability and cost of employees and other personnel, equipment, materials and services;
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the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
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weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation of production, gathering, processing, compression and transportation facilities;
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the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
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EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
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the extent and effect of any hedging activities engaged in by EOG;
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the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
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political developments around the world, including in the areas in which EOG operates;
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the use of competing energy sources and the development of alternative energy sources;
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the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage;
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acts of war and terrorism and responses to these acts; and
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the other factors described under Item 1A, "Risk Factors," on pages 15 through 23 of EOG's Annual Report on Form 10-K for the year ended December 31, 2011.
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EOG RESOURCES, INC.
(Registrant) |
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Date: November 27, 2012
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By:
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/s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers Vice President and Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer) |