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: July 30, 2001
_______________
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)
1
EOG Resources, Inc.
Item 9. Regulation FD Disclosure
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
Resources, Inc. (`the Company') 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 the Company; the
extent of the Company'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 judgement and may
therefore be imprecise; political developments around the world;
and financial market conditions. In light of these risks,
uncertainties and assumptions, the events anticipated by the
Company's forward-looking statements might not occur. The
Company undertakes no obligations to update or revise its forward-
looking statements, whether as a result of new information,
future events or otherwise.
Third Quarter and Full Year 2001
--------------------------------
The third quarter and full year 2001 forecasts set forth
below are given as of the date of this document only and are
based on current available information and expectations.
The Company continues to target 4 percent growth in North
America production for 2001.
There are price swap contracts in place covering notional
volumes of 115,000 MMBtud of natural gas for August - December
2001 at an average price of $3.38 per MMBtu. A Canadian
subsidiary of the Company has fixed prices on approximately
41,000 MMBtud of its physical gas sales for August - December
2001 at an average price of US$3.44 per MMBtu less applicable
basis (location) adjustments.
There are price collars in place for natural gas for the
period July 2001 to November 2001 that set a floor price of
$4.40 per MMBtu and a ceiling price that averages $6.15 per
MMBtu covering notional volumes of 200,000 MMBtud at an
average premium of $0.15 per MMBtu.
2
There are price swap contracts in place for crude oil as
detailed below.
Average Average
Quarter Mbd $/Bbl
------- ------- -------
3Q 2001 7.0 $27.72
4Q 2001 5.0 $27.48
Capital expenditures for the full year 2001, excluding
acquisitions, are expected to be between $800 and $900
million.
The Company does not provide guidance on other income,
other expense, or gain or loss on sales of reserves and
related assets unless specifically noted.
2002
----
There are price swap contracts in place covering notional
volumes of 50,000 MMBtud of natural gas for January - December
2002 at an average price of $3.56 per MMBtu. A Canadian
subsidiary of the Company has fixed prices on approximately
48,000 MMBtud of its physical sales for January - December
2002 at an average price of US$3.56 per MMBtu less applicable
basis (location) adjustments.
There are crude oil price swap contracts in place
covering notional volumes of 3,000 Bpd at an average price of
$26.74 per barrel for January - May 2002.
Additional estimates are shown in the attached table.
Definitions
-----------
$/Bbl US Dollars per barrel
$/Mcf US Dollars per thousand cubic feet
$/Mcfe US Dollars per thousand cubic feet equivalent
Bcfe Billion cubic feet equivalent
Bpd Barrels per day
MMBtu Million British thermal units
MMBtud Million British thermal units per day
MMcfd Million cubic feet per day
Mbd Thousand barrels per day
WTI West Texas Intermediate
MM Millions
NYMEX New York Mercantile Exchange
$MM US Dollars in millions
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
EOG RESOURCES, INC.
Date: July 30, 2001 By: /s/ TIMOTHY K. DRIGGERS
---------------------------
Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)
4
EOG Resources, Inc.
Estimated Ranges
3Q 2001 Full Year 2001
------------------------ -----------------------
North America Production Growth Target (Bcfe) 4%
Daily Production
Natural Gas (MMcfd)
US 685 - 700 695 - 705
Canada 120 - 130 125 - 135
Trinidad 100 - 125 100 - 125
Total 905 - 955 920 - 965
Crude Oil (Mbd)
US 23.0 - 25.0 23.0 - 24.0
Canada 1.5 - 2.0 1.5 - 2.0
Trinidad 1.5 - 2.0 1.5 - 2.0
Total 26.0 - 29.0 26.0 - 28.0
Natural Gas Liquids (Mbd)
US 2.5 - 3.0 3.0 - 3.5
Canada 0.5 - 1.0 0.5 - 1.0
Total 3.0 - 4.0 3.5 - 4.5
Operating Costs
Unit Costs ($/Mcfe)
Lease and Well $0.39 - $0.42 $0.39 - $0.42
Depreciation, Depletion and Amortization $0.95 - $1.00 $0.95 - $1.00
Expenses ($MM)
Exploration, Dry Hole and Impairment 40.0 - 50.0 180.0 - 210.0
General and Administrative 20.0 - 22.0 80.0 - 85.0
Net Interest 11.0 - 14.0 50.0 - 55.0
Capitalized Interest 1.8 - 2.0 8.0 - 9.0
Taxes Other than Income (% of Revenue) 6.8 - 7.2 6.0 - 7.0
Taxes
Effective Rate 35% - 45% 35% - 40%
Deferred Ratio 75% - 100% 45% - 55%
Preferred Dividends ($MM) 2.8 - 3.0 10.0 - 12.0
Average Shares Outstanding (MM)
Basic 115.8 - 116.1 115.8 - 116.2
Fully Diluted 118.0 - 118.3 118.0 - 118.4
Capital Expenditures Excluding Acquisitions ($MM)
North America 725 - 820
International 75 - 80
Total 800 - 900
Pricing
Natural Gas ($/Mcf)
Differentials
US - below NYMEX Henry Hub $0.10 - $0.20 $0.05 - $0.15
Canada - below NYMEX Henry Hub $0.60 - $0.90 $0.60 - $0.90
Realizations
Trinidad $1.22 $1.22
Crude Oil ($/Bbl)
Differentials
US - below WTI $0.75 - $1.00 $0.75 - $1.00
Canada - below WTI $3.00 - $3.50 $3.00 - $3.50
Trinidad - below WTI $2.00 - $2.75 $1.00 - $2.00