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: August 5, 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. Third Quarter and Full Year 2003 Forecast
The forecast items for the third 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. This forecast replaces and supersedes
any previously issued guidance or forecast.
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 financial impact of
these various physical commodity contracts is included in natural
gas revenues which in turn affects average realized natural gas
prices.
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 August 5, 2003. These contracts
remain unchanged from EOG's Current Report on Form 8-K filed on
July 1, 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 Net Volume
($/MMBtu) (MMBtud)
July (closed) $4.77 100,000
August (closed) $4.46 75,000
September $4.42 75,000
October $4.41 75,000
(b) Crude Oil Financial Price Swap Contracts
Average Price Volume
($/Bbl) (Bbld)
July (closed) $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
July (closed) $3.91 $5.91 $3.89 $5.90 $3.79 $4.73
August (closed) $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
July (closed) $3.91 $5.77 $3.59 $4.97
August (closed) $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
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 described
above.
The third quarter mark-to-market computation is very
sensitive to prices (can move up or down) and will largely be
determined by closing NYMEX prices at September 30, 2003, which
could differ significantly from those of the current market
place.
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; 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
$MM US Dollars in millions
Bbld Barrels per day
Mbd Thousand barrels per day
MM Millions
MMBtud Million British thermal units per day
MMcfd Million cubic feet per day
NYMEX New York Mercantile Exchange
WTI West Texas Intermediate
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
EOG RESOURCES, INC.
Date: August 5, 2003 By: /s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)
Estimated Ranges
(See text for additional information)
3Q 2003 Full Year 2003
------------ --------------
Daily Production
Natural Gas (MMcfd)
US 625 - 655 640 - 655
Canada 150 - 170 155 - 175
Trinidad 145 - 165 140 - 160
Total 920 - 990 935 - 990
Crude Oil (Mbd)
US 17.5 - 19.0 18.0 - 19.0
Canada 2.0 - 2.5 1.7 - 2.2
Trinidad 2.0 - 2.5 2.0 - 2.6
Total 21.5 - 24.0 21.7 - 23.8
Natural Gas Liquids (Mbd)
US 1.5 - 2.5 1.7 - 2.8
Canada 0.3 - 0.9 0.5 - 1.0
Total 1.8 - 3.4 2.2 - 3.8
Operating Costs
Unit Costs ($/Mcfe)
Lease and Well $0.48 - $0.54 $0.49 - $0.53
Depreciation, Depletion and Amortization $1.02 - $1.09 $1.03 - $1.08
Expenses ($MM)
Exploration, Dry Hole and Impairment 40.0 - 55.0 180.0 - 230.0
General and Administrative 25.0 - 30.0 95.0 - 105.0
Capitalized Interest 2.0 - 2.4 8.0 - 9.0
Net Interest 10.0 - 16.0 50.0 - 60.0
Taxes Other than Income (% of Revenue) 6.0 - 6.5 5.0 - 5.5
Taxes
Effective Rate 32% - 37% 32% - 37%
Deferred Ratio 70% - 95% 60% - 80%
Preferred Dividends ($MM) 2.5 - 3.0 10.5 - 11.5
Shares Outstanding (MM) at June 30, 2003
Basic 114.6
Fully Diluted (based on stock price
of $41.84) 116.4
Capital Expenditures Excluding
Acquisitions ($MM) - FY 2003 925 - 1,000
Pricing
Natural Gas ($/Mcf)
Differentials (include the effect
of physical contracts)
United States - below NYMEX Henry Hub $0.30 - $0.50 $0.40 - $0.50
Canada - below NYMEX Henry Hub $0.65 - $0.75 $0.85 - $0.95
Realizations
Trinidad $1.10 - $1.25 $1.15 - $1.35
Crude Oil ($/Bbl)
Differentials
US - below WTI $1.00 - $1.40 $0.75 - $1.25
Canada - below WTI $4.50 - $6.00 $3.50 - $4.00
Trinidad - below WTI $3.75 - $4.25 $2.50 - $3.25