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 21, 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. Fourth Quarter and Full Year 2002
The forecast items for the fourth quarter 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. The company continuously monitors
commodity prices and 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. Natural Gas and Crude Oil Financial Price Swap and
Costless Collar Contracts
. Natural Gas Financial Price Swap and Costless Collar
Contracts - Presented below is a summary of EOG's natural gas
financial price swap contracts and costless collar contracts.
EOG accounts for these price swap and costless collar contracts
utilizing the mark-to-market accounting method.
Price Swaps
Average Price Volume
2002 ($/MMBtu) (MMBtud)
October (closed) $ 3.13 200,000
November and December $ 3.35 75,000
Costless Collars
EOG has costless collar contracts in place with a floor
price of $3.10 per MMBtu and ceiling prices that average
$3.43 per MMBtu covering notional volumes of 100,000
MMBtud for October 2002 which are closed.
. 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 October 2002 through December 2002. For
the full year 2003, EOG has contracts in place covering
notional volumes of one thousand barrels of oil per day
at an average price of $25.89 per barrel. EOG accounts
for these price swap contracts utilizing the mark-to-
market accounting method.
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
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
$MM US Dollars in millions
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
EOG RESOURCES, INC.
Date: October 21, 2002 By: /s/ TIMOTHY K. DRIGGERS
Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)
EOG Resources, Inc.
Estimated Ranges
4Q 2002 Full Year 2002
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Daily Production
Natural Gas (MMcfd)
US 625 - 650 629 - 636
Canada 150 - 165 151 - 155
Trinidad 120 - 150 126 - 133
Total 895 - 965 906 - 924
Crude Oil (Mbd)
US 17.0 - 19.5 18.6 - 19.2
Canada 1.5 - 2.0 1.9 - 2.0
Trinidad 2.0 - 2.9 2.2 - 2.4
Total 20.5 - 24.4 22.7 - 23.6
Natural Gas Liquids (Mbd)
US 2.0 - 3.0 2.9 - 3.1
Canada 0.5 - 1.0 0.7 - 0.8
Total 2.5 - 4.0 3.6 - 3.9
Operating Costs
Unit Costs ($/Mcfe)
Lease and Well $0.44 - $0.47 $0.44 - $0.46
Total Depreciation, Depletion and Amortization $0.98 - $1.02 $0.99 - $1.01
Expenses ($MM)
Exploration, Dry Hole and Impairment 40.0 - 60.0 150.0 - 170.0
General and Administrative 20.0 - 22.0 84.0 - 86.0
Capitalized Interest 2.0 - 2.3 9.1 - 9.4
Net Interest 15.0 - 18.0 60.0 - 63.0
Taxes Other than Income (% of Revenue) 6.0 - 7.2 6.5 - 7.0
Taxes
Effective Rate 30% - 33% 30% - 33%
Deferred Ratio >100% >100%
Preferred Dividends ($MM) 2.5 - 3.0 11.0 - 11.5
Shares Outstanding (MM) at September 30, 2002
Basic 115.2
Diluted (based on stock price of $35.96) 116.7
Capital Expenditures Excluding Acquisitions
and Trinidad Ammonia Investments ($MM) - FY 2002
North America 700 - 745
International 50 - 55
Total 750 - 800
Pricing
Natural Gas ($/Mcf)
Differentials (include the effect of
physical contracts)
United States - below NYMEX Henry Hub $0.20 - $0.40 $0.15 - $0.20
Canada - below NYMEX Henry Hub $0.55 - $0.75 $0.55 - $0.60
Realizations
Trinidad $1.10 - $1.20 $1.18 - $1.21
Crude Oil ($/Bbl)
Differentials
US - below WTI $1.50 - $2.00 $1.30 - $1.50
Canada - below WTI $2.50 - $3.75 $2.30 - $2.65
Trinidad - below WTI $3.25 - $4.00 $3.00 - $3.30