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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: January 29, 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)
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EOG RESOURCES, INC.
Item 9. Regulation FD Disclosure
I. First Quarter and Full Year 2002
--------------------------------
The forecasts for first quarter and full year 2002 set
forth below for EOG Resources, Inc. ('the Company') are given
as of the date of this document only and are based on current
available information and expectations.
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 Financial and Physical Contracts
-------------------------------------------------
The outstanding Natural Gas Financial Price Swaps and
Natural Gas Physical Contracts for 2002 were delineated in the
Company's Form 8-K filing on January 16, 2002.
III. North America 2002 Production Target
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As previously stated, the Company had targeted four
percent 2002 production growth for North America predicated on
the assumption of $3.00 per MMBtu average annualized Henry Hub
natural gas price. In view of the current price environment,
the Company believes that $3.00 per MMBtu average annualized
natural gas price will most likely not be achieved during
2002. The Company's North American production forecast in the
attached table uses a $2.50 (+/- $0.10) per MMBtu average
annualized Henry Hub assumption for 2002. The midpoint of the
estimated ranges in the attached table results in flat
production in North America for the full year 2002 as
compared to 2001.
IV. Income Taxes
------------
No guidance is given at this time for income taxes,
reflecting the current forward price strip for natural gas and
crude oil and the volatility in taxes caused by small
movements in prices.
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V. Forward-Looking Statements
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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 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 judgment and may therefore be imprecise; political
developments around the world, including terrorist activities and
responses to such activities; 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.
Definitions
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$/Bbl US Dollars per barrel
$/Mcf US Dollars per thousand cubic feet
$/Mcfe US Dollars per thousand cubic feet equivalent
MMBtu Million British thermal units
MMcfd Million cubic feet per day
Mbd Thousand barrels per day
WTI West Texas Intermediate
MM Millions
NYMEX New York Mercantile Exchange
$MM US Dollars in millions
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SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
EOG RESOURCES, INC.
Date: January 29, 2002 By: /s/ TIMOTHY K. DRIGGERS
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Timothy K. Driggers
Vice President, Accounting
and Land Administration
(Principal Accounting Officer)
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EOG Resources, Inc.
Estimated Ranges
1Q 2002 Full Year 2002
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Daily Production
Natural Gas (MMcfd)
US 640 - 655 650 - 680
Canada 135 - 145 145 - 155
Trinidad 110 - 115 125 - 135
Total 885 - 915 920 - 970
Crude Oil (Mbd)
US 19.0 - 20.0 20.0 - 21.0
Canada 1.5 - 2.0 1.5 - 2.0
Trinidad 1.7 - 2.1 1.8 - 2.5
Total 22.2 - 24.1 23.3 - 25.5
Natural Gas Liquids (Mbd)
US 3.0 - 3.5 3.0 - 3.5
Canada 0.5 - 0.7 0.5 - 1.0
Total 3.5 - 4.2 3.5 - 4.5
Operating Costs
Unit Costs ($/Mcfe)
Lease and Well $0.43 - $0.46 $0.41 - $0.45
Depreciation, Depletion and Amortization $0.98 - $1.01 $0.97 - $1.00
Expenses ($MM)
Exploration, Dry Hole and Impairment 35.0 - 50.0 120.0 - 180.0
General and Administrative 20.0 - 22.0 85.0 - 90.0
Capitalized Interest 2.0 - 2.5 8.0 - 9.0
Net Interest 12.0 - 14.0 50.0 - 58.0
Taxes Other than Income (% of Revenue) 7.0 - 8.0 7.0 - 8.0
Preferred Dividends ($MM) 2.7 - 2.8 11.0 - 11.2
Basic Shares Outstanding (MM) at December 31, 2001 - 115.1
Capital Expenditures Excluding Acquisitions ($MM)
North America 560 - 700
International 40 - 50
Total 600 - 750
Pricing
Natural Gas ($/Mcf)
Differentials
US - below NYMEX Henry Hub $0.10 - $0.20 $0.10 - $0.20
Canada - below NYMEX Henry Hub $0.30 - $0.60 $0.30 - $0.60
Realizations
Trinidad $1.26 $1.15 - $1.26
Crude Oil ($/Bbl)
Differentials
US - below WTI $1.10 - $1.40 $1.00 - $1.30
Canada - below WTI $2.00 - $4.00 $2.00 - $4.00
Trinidad - below WTI $3.50 - $4.00 $3.00 - $4.00