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 (Date of earliest event reported): July 29, 2008

_______________

EOG RESOURCES, INC.
(Exact name of registrant as specified in its charter)

 

Delaware
(State or other jurisdiction
of incorporation)

1-9743
(Commission File
Number)

47-0684736
(I.R.S. Employer
Identification No.)

1111 Bagby, Sky Lobby 2
Houston, Texas
(Address of principal executive offices)


77002
(Zip code)

 

713-651-7000
(Registrant's telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] 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))

 

EOG RESOURCES, INC.

Item 7.01 Regulation FD Disclosure.

I. Third Quarter and Full Year 2008 Forecast and Benchmark Commodity Pricing

(a) Third Quarter and Full Year 2008 Forecast

The forecast items for the third quarter and full year 2008 set forth below for EOG Resources, Inc. (EOG) are based on current available information and expectations as of the date of this document. This forecast replaces and supersedes any previously issued guidance or forecast.

Estimates are provided in the attached table, which is incorporated by reference herein.

(b) Benchmark Commodity Pricing

EOG bases United States and Canada natural gas price differentials upon the natural gas price at Henry Hub, Louisiana using the simple average of the NYMEX settlement prices for the last three trading days of the applicable month.

EOG bases United States, Canada and Trinidad crude oil and condensate price differentials upon the West Texas Intermediate crude oil price at Cushing, Oklahoma using the simple average of the NYMEX settlement prices for each trading day within the applicable calendar month.

II. Forward-Looking Statements

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts, including, among others, statements regarding EOG's future financial position, business strategy, budgets, reserve information, projected levels of production, projected costs and plans and objectives of management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "strategy," "intend," "plan," "target" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning future operating results, the ability to replace or increase reserves or to increase production, or the ability to generate income or cash flows are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its 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 EOG's forward-looking statements include, among others:

In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur. EOG's forward-looking statements speak only as of the date made and EOG undertakes no obligation 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

 

$MM

US Dollars in millions

 

MBbld

Thousand barrels per day

 

MMcfd

Million cubic feet per day

 

MMcfed

Million cubic feet equivalent per day

 

NYMEX

New York Mercantile Exchange

 

WTI

West Texas Intermediate

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

   

EOG RESOURCES, INC.
(Registrant)

     
     
     

Date: July 29, 2008

By:

/s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

 

 

                     
Estimated Ranges
(See text for additional information)
          3Q 2008   Full Year 2008
Daily Production                 
  Natural Gas (MMcfd)                 
     United States   1,150 - 1,200   1,155 - 1,181
     Canada   216 - 227   220 - 226
     Trinidad   235 - 258   226 - 236
     Other International   15 - 25   13 - 17
     Total   1,616 - 1,710   1,614 - 1,660
                       
  Crude Oil and Condensate (MBbld)                 
     United States   35.0 - 40.0   35.0 - 37.0
     Canada   2.6 - 3.3   2.6 - 3.0
     Trinidad   3.4 - 3.8   3.3 - 3.5
     Total   41.0 - 47.1   40.9 - 43.5
                       
  Natural Gas Liquids (MBbld)                 
     United States   13.0 - 17.4   14.7 - 16.6
     Canada   0.6 - 1.0   0.7 - 0.9
     Total   13.6 - 18.4   15.4 - 17.5
                       
  Natural Gas Equivalent Volumes (MMcfed)                 
     United States   1,439 - 1,544   1,453 - 1,503
     Canada   235 - 253   240 - 249
     Trinidad   255 - 281   246 - 257
     Other International   15 - 25   13 - 17
     Total   1,944 - 2,103   1,952 - 2,026
                       
Operating Costs                 
  Unit Costs ($/Mcfe)                 
     Lease and Well   $ 0.81 - $ 0.85   $ 0.79 - $ 0.82
     Transportation Costs   $ 0.42 - $ 0.46   $ 0.40 - $ 0.42
     Depreciation, Depletion and Amortization   $ 1.83 - $ 1.87   $ 1.80 - $ 1.86
                       
Expenses ($MM)                 
  Exploration, Dry Hole and Impairment    $120.0 - $ 130.0   $ 440.0 - $ 470.0
  General and Administrative    $ 66.0 - $ 73.0   $ 232.5 - $ 251.5
  Capitalized Interest    $ 10.0 - $ 12.0   $ 40.0 - $ 45.0
  Net Interest    $ 10.0 - $ 12.5   $ 38.2 - $ 43.2
                       
Taxes Other Than Income (% of Revenue)    5.0% - 6.5%   5.3% - 6.0%
                       
Income Taxes                 
  Effective Rate    33% - 37%   32% - 36%
  Deferred Ratio    55% - 75%   55% - 75%
                       
Preferred Stock Dividends ($MM)              $ 0.4  
                       
Capital Expenditures ($MM) - FY 2008:                 
- Exploration and Development, excluding Acquisitions            Approximately   $ 4,375
- Gathering, Processing and Other             Approximately   $ 375
- Acquisitions             Approximately   $ 120
                       
Pricing - Refer to I.(b) Benchmark Commodity Pricing in text                
  Natural Gas ($/Mcf)                 
    Differentials (include the effect of physical contracts)                 
          United States - below NYMEX Henry Hub   $ 0.35 - $ 0.45   $ 0.27 - $ 0.34
          Canada - below NYMEX Henry Hub   $ 1.60 - $ 2.00   $ 1.20 - $ 1.38
                       
    Realizations                 
          Trinidad   $ 2.85 - $ 3.40   $ 3.15 - $ 3.42
          Other International   $ 5.00 - $ 8.00   $ 8.45 - $ 9.54
                       
  Crude Oil and Condensate ($/Bbl)                 
    Differentials                 
      United States - below WTI   $ 6.00 - $ 8.00   $ 5.07 - $ 6.07
      Canada - below WTI   $ 7.10 - $ 9.00   $ 7.27 - $ 8.24
      Trinidad - below WTI   $10.00 - $ 12.50   $ 10.57 - $ 11.69