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 12, 2002
_______________
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 and Fourth Quarters and Full Year 2002
The forecast items for the third and fourth quarters and
full year 2002 set forth below for EOG Resources, Inc. (EOG)
are based on current available information and expectations as
of the date of this document. Third and fourth quarter
production data includes the potential impact of production
moderation in North America due to current Henry Hub price and location
differentials and a revised current drilling and completion schedule.
Full Year 2002 production has been updated to reflect this information.
In the event that prices and/or location differentials significantly
change, EOG may modify drilling and production as appropriate.
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.
Estimates are provided in the attached table.
II. 2002 Natural Gas and Crude Oil Financial Price Swap Contracts
. Natural Gas Financial Price Swap Contracts - Tabulated below
is a summary of EOG's 2002 natural gas financial price swap
contracts. EOG accounts for these swap contracts under mark-to-
market accounting.
Average Price Volume
($/MMBtu) (MMBtud)
July (closed) $ 3.19 100,000
August (closed) $ 3.21 100,000
September and October $ 3.22 100,000
November and December $ 3.35 75,000
. Crude Oil Financial Price Swap Contracts - EOG has contracts
in place covering notional volumes of two thousand barrels of oil
per day at a price of $21.50 per barrel for the period March 2002
through December 2002. Crude oil financial price swap contracts
for the period March 2002 through July 2002 are closed. EOG
accounts for these swap contracts under mark-to-market
accounting.
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 and
interest rates; 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; 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
$/MMBtu US Dollars per million British thermal units
$/Mcf US Dollars per thousand cubic feet
$/Mcfe US Dollars per thousand cubic feet equivalent
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
$MM US Dollars in millions
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
EOG RESOURCES, INC.
Date: August 12, 2002 By: /s/TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)
EOG Resources, Inc.
Estimated Ranges
3Q 2002 4Q 2002 Full Year 2002
-------------- -------------- --------------
Daily Production
Natural Gas (MMcfd)
US 615 - 630 625 - 650 625 - 636
Canada 145 - 155 145 - 165 148 - 156
Trinidad 145 - 155 130 - 145 122 - 130
Total 905 - 940 900 - 960 895 - 922
Crude Oil (Mbd)
US 17.5 - 19.0 17.0 - 18.0 18.4 - 19.0
Canada 1.8 - 2.1 1.5 - 2.0 1.7 - 2.0
Trinidad 2.4 - 2.9 2.2 - 2.6 2.1 - 2.4
Total 21.7 - 24.0 20.7 - 22.6 22.2 - 23.4
Natural Gas Liquids (Mbd)
US 2.0 - 3.5 2.0 - 3.5 2.6 - 3.4
Canada 0.5 - 1.0 0.5 - 1.0 0.5 - 0.9
Total 2.5 - 4.5 2.5 - 4.5 3.1 - 4.3
Operating Costs
Unit Costs ($/Mcfe)
Lease and Well $0.43 - $0.46 $0.44 - $0.47 $0.43 - $0.46
Total Depreciation,
Depletion and
Amortization $0.96 - $0.99 $0.98 - $1.02 $0.98 - $1.01
Expenses ($MM)
Exploration, Dry Hole
and Impairment 37.0 - 47.0 32.0 - 47.0 140.0 - 170.0
General and Administrative 19.0 - 22.0 20.0 - 22.0 80.0 - 90.0
Capitalized Interest 2.0 - 2.2 2.0 - 2.2 8.5 - 9.0
Net Interest 14.0 - 16.0 15.0 - 18.0 55.0 - 60.0
Taxes Other than Income
(% of Revenue) 6.9 - 7.1 6.7 - 7.2 6.8 - 7.0
Taxes
Effective Rate 22% - 30% 22% - 30% 22% - 30%
Deferred Ratio 25% - 35% 35% - 45% 35% - 45%
Preferred Dividends ($MM) 2.5 - 3.0 2.5 - 3.0 11.0 - 11.5
Shares Outstanding (MM)
at June 30, 2002
Basic 115.8
Diluted (based on stock
price of $39.70) 117.7
Capital Expenditures Excluding Acquisitions and Trinidad Ammonia
Investments ($MM) - FY 2002
North America 700 - 745
International 45 - 55
Total 745 - 800
Pricing
Natural Gas ($/Mcf)
Differentials (include the effect of physical contracts)
United States - below
NYMEX Henry Hub $0.05 - $0.20 $0.15 - $0.30 $0.12 - $0.20
Canada - below NYMEX
Henry Hub $0.95 - $1.15 $0.50 - $0.70 $0.50 - $0.70
Realizations
Trinidad $1.10 - $1.20 $1.10 - $1.20 $1.19 - $1.24
Crude Oil ($/Bbl)
Differentials
US - below WTI $1.50 - $2.00 $1.50 - $2.00 $1.47 - $1.75
Canada - below WTI $3.00 - $4.00 $3.00 - $3.75 $2.75 - $3.25
Trinidad - below WTI $3.25 - $4.00 $3.25 - $4.00 $3.00 - $3.50