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: October 26, 2004
_______________
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)
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. Fourth Quarter and Full Year 2004 Forecast
The forecast items for the fourth quarter and full year
2004 set forth in, and incorporated herein by reference from,
the table 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.
II. 2004 Natural Gas Financial Collar Contracts and Natural
Gas and Crude Oil Financial Price Swap Contracts
With the objective of enhancing the certainty of future
revenues, from time to time EOG enters into New York Mercantile
Exchange related financial commodity collar and price swap
contracts. In addition to these financial transactions, EOG is a
party to various physical commodity contracts for the sale of
hydrocarbons that cover varying periods of time and have varying
pricing provisions. The financial impact of these various
physical commodity contracts is included in revenues at the time
of settlement, which in turn affects average realized hydrocarbon
prices.
(a) Natural Gas Financial Collar Contracts
Since EOG filed its Current Report on Form 8-K on October 1,
2004, EOG has entered into additional natural gas financial
collar contracts covering notional volumes of 50,000 MMBtud for
the month of December 2004 with a floor price of $7.65 per MMBtu
and a ceiling price of $8.90 per MMBtu, and notional volumes of
75,000 MMBtud for the period January 2005 through March 2005 with
an average floor price of $7.77 per MMBtu and an average ceiling
price of $9.24 per MMBtu. EOG accounts for these financial
collar contracts using the mark-to-market accounting method.
(b) Natural Gas Financial Price Swap Contracts
Since EOG filed its Current Report on Form 8-K on October 1,
2004, EOG has entered into additional natural gas financial price
swap contracts covering notional volumes of 200,000 MMBtud for
the month of November 2004 at an average price of $6.82 per
MMBtu. EOG accounts for these financial price swap contracts
using the mark-to-market accounting method.
(c) Crude Oil Financial Price Swap Contracts
EOG has not entered into any additional crude oil financial
price swap contracts since EOG filed its Current Report on Form
8-K on October 1, 2004, which provided an update of all such
financial price swap contracts as of that date. Currently, EOG
does not have any crude oil financial price swap contracts.
(d) Summary of EOG's natural gas financial collar and price swap
contracts as of October 26, 2004
Natural Gas Financial Contracts
Collar Contracts Price Swap Contracts
Floor Price Ceiling Price Weighted
Floor Range/ Weighted Ceiling Range/ Weighted Average
Volume Floor Average Ceiling Average Volume Price
(MMBtud) ($/MMBtu) ($/MMBtu) ($/MMBtu) ($/MMBtu) (MMBtud) ($/MMBtu)
2004
Oct 375,000 $4.47 - 4.75 $4.58 $4.93 - 5.19 $5.09 30,000 $4.80
Nov 100,000 6.35 6.35 7.60 - 7.64 7.61 200,000 6.82
Dec 50,000 7.65 7.65 8.90 8.90 - -
2005
Jan(1) 75,000 $7.65 - 8.00 $7.77 $8.90 - 9.50 $ 9.10 - $ -
Feb(2) 75,000 7.65 - 8.00 7.77 9.19 - 9.50 9.32 - -
Mar(2) 75,000 7.65 - 8.00 7.77 9.19 - 9.50 9.32 - -
(1) Notional volumes of 25,000 MMBtud of the January 2005 collar
contracts were purchased at a premium of $0.10 per MMBtu.
(2) The collar contracts for February 2005 and March 2005 were
purchased at a premium of $0.10 per MMBtu.
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 and changes in demand or prices
for ammonia or methanol; 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; the
availability and cost of drilling rigs, experienced drilling
crews and tubular steel; the availability of pipeline
transportation capacity; the extent to which EOG can replicate on
its other Barnett Shale acreage the results of its most recent
Barnett Shale wells; the results of wells yet to be drilled that
are necessary to test whether substantial Barnett Shale acreage
positions in Erath, Somervell, Hood, Jack, Palo Pinto and Hill
Counties, Texas, contain suitable drilling prospects; whether EOG
is successful in its efforts to more densely develop its acreage
in the Barnett Shale and other production areas; political
developments around the world; acts of war and terrorism and
responses to these acts; 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
$MM US Dollars in millions
$/MMBtu US Dollars per million British thermal units
Mbd Thousand barrels per day
MMBtud Million British thermal units per day
MMBtu Million British thermal units
MMcfd Million cubic feet per day
MMcfed Million cubic feet equivalent per day
NYMEX New York Mercantile Exchange
WTI West Texas Intermediate
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
EOG RESOURCES, INC.
(Registrant)
Date: October 26, 2004 By: /s/TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President and Chief Accounting Officer
(Principal Accounting Officer)
Estimated Ranges
(See text for additional information)
4Q 2004 Full Year 2004
Daily Production
Natural Gas (MMcfd)
US 640 - 670 625 - 631
Canada 220 - 235 208 - 212
Trinidad 200 - 220 180 - 185
UK North Sea 19 - 23 7 - 8
Total 1,079 - 1,148 1,020 - 1,036
Crude Oil (Mbd)
US 21.0 - 22.0 20.8 - 20.9
Canada 2.3 - 2.7 2.5 - 2.7
Trinidad 3.9 - 4.5 3.4 - 3.6
Total 27.2 - 29.2 26.7 - 27.2
Natural Gas Liquids (Mbd)
US 4.0 - 5.0 4.5 - 4.8
Canada 0.5 - 1.0 0.6 - 0.8
Total 4.5 - 6.0 5.1 - 5.6
Natural Gas Equivalent Volumes (MMcfed)
US 790 - 832 777 - 785
Canada 237 - 257 227 - 233
Trinidad 223 - 247 200 - 207
UK North Sea 19 - 23 7 - 8
Total 1,269 - 1,359 1,211 - 1,233
Operating Costs
Unit Costs ($/Mcfe)
Lease and Well $0.59 - $0.63 $0.60 - $0.62
Depreciation, Depletion and Amortization $1.14 - $1.18 $1.11 - $1.13
Expenses ($MM)
Exploration, Dry Hole and Impairment 70.0 - 85.0 239.0 - 254.0
General and Administrative 29.0 - 32.0 110.0 - 113.0
Capitalized Interest 2.4 - 2.8 9.0 - 9.4
Net Interest 12.0 - 18.0 60.2 - 66.2
Taxes Other than Income (% of Revenue) 5.0 - 6.0 5.7 - 6.0
Taxes
Effective Rate 32% - 36% 33% - 35%
Deferred Ratio 50% - 80% 68% - 75%
Preferred Dividends ($MM) 2.5 - 3.0 10.8 - 11.3
Capital Expenditures Excluding Acquisitions
($MM) - FY 2004 Approximately 1,400
Acquisitions ($MM) - FY 2004 Approximately 50
Pricing
Natural Gas ($/Mcf)
Differentials (include the effect of
physical contracts)
United States - below NYMEX Henry Hub $0.30 - $0.70 $0.29 - $0.39
Canada - below NYMEX Henry Hub $0.80 - $1.30 $0.83 - $0.95
Realizations
Trinidad $1.25 - $1.60 $1.40 - $1.49
Crude Oil ($/Bbl)
Differentials
US - below WTI $0.95 - $1.34 $0.55 - $0.85
Canada - below WTI $3.00 - $5.00 $3.22 - $3.72
Trinidad - below WTI $3.75 - $6.25 $1.00 - $2.00