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Delaware
(State or other jurisdiction
of incorporation)
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1-9743
(Commission File
Number)
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47-0684736
(I.R.S. Employer
Identification No.)
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1111 Bagby, Sky Lobby 2
Houston, Texas
(Address of principal executive offices)
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77002
(Zip code)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Natural Gas Financial Price Swap Contracts
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Volume (MMBtud)
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Weighted Average Price ($/MMBtu)
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2011 (1)
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January 1, 2011 through December 31, 2011
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150,000
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$5.44
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2012 (2)
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January 1, 2012 through December 31, 2012
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200,000
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$5.57
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(1)
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Includes unexercised swaption contracts which give a counterparty the option of entering into a price swap contract at a future date. Such option is exercisable on December 22, 2010. If the counterparty exercises this option, the notional volume of EOG's existing natural gas financial price swap contracts will increase by 100,000 MMBtud at an average price of $5.48 per MMBtu for the full year 2011.
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(2)
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Includes unexercised swaption contracts which give counterparties the option of entering into price swap contracts at future dates. Such options are exercisable monthly up until settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas financial price swap contracts will increase by 100,000 MMBtud at an average price of $5.71 per MMBtu for each month of 2012.
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Crude Oil Financial Price Swap Contracts
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Weighted
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Volume
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Average Price
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(Bbld)
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($/Bbl)
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2010
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October 1, 2010 through December 31, 2010
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2,000
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$91.50
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2011
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January 1, 2011 through December 31, 2011
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10,000
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$90.39
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Natural Gas Financial Basis Swap Contracts
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Weighted
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|||
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Average Price
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Volume
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Differential
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(MMBtud)
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($/MMBtu)
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2010
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Fourth Quarter (1)
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65,000
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$(3.73)
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2011
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First Quarter
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65,000
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$(1.89)
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(1)
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Includes closed contracts for the month of October 2010.
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·
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the timing and extent of changes in prices for natural gas, crude oil and related commodities;
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·
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changes in demand for natural gas, crude oil and related commodities, including ammonia and methanol;
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·
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the extent to which EOG is successful in its efforts to discover and market reserves and to acquire natural gas and crude oil properties;
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·
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the extent to which EOG can optimize reserve recovery and economically develop its plays utilizing horizontal and vertical drilling and advanced completion technologies;
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·
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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 natural gas and crude oil exploration and development projects, given the risks and uncertainties inherent in drilling, completing and operating natural gas and crude oil wells and the potential for interruptions of production, whether involuntary or intentional as a result of market or other conditions;
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·
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the availability, proximity and capacity of, and costs associated with, gathering, processing, compression and transportation facilities;
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·
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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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·
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changes in government policies, laws and regulations, including environmental and tax laws and regulations;
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·
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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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·
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EOG's ability to obtain access to surface locations for drilling and production facilities;
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·
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the extent to which EOG's third-party-operated natural gas and crude oil properties are operated successfully and economically;
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·
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EOG's ability to effectively integrate acquired natural gas and crude oil 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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·
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weather, including its impact on natural gas and crude oil 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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·
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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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·
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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;
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·
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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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·
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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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·
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political developments around the world, including in the areas in which EOG operates;
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·
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the extent and effect of any hedging activities engaged in by EOG;
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·
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the timing and impact of liquefied natural gas imports;
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·
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the use of competing energy sources and the development of alternative energy sources;
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·
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the extent to which EOG incurs uninsured losses and liabilities;
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·
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acts of war and terrorism and responses to these acts; and
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·
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the other factors described under Item 1A, "Risk Factors," on pages 14 through 19 of EOG's Annual Report on Form 10-K for the year ended December 31, 2009.
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EOG RESOURCES, INC.
(Registrant)
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Date: October 14, 2010
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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)
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