Delaware
(State or other jurisdiction of incorporation) |
1-9743
(Commission File Number) |
47-0684736
(I.R.S. Employer Identification No.) |
[ ] | 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)) |
Crude Oil Derivative 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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($/Bbl)
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2013 (1)
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January 2013 (closed)
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101,000
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$
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99.29
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February 1, 2013 through April 30, 2013 (closed)
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109,000
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99.17
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May 1, 2013 through June 30, 2013 (closed)
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101,000
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99.29
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July 2013 (closed)
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111,000
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98.25
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August 1, 2013 through September 30, 2013 (closed)
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126,000
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98.80
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October 1, 2013 through December 31, 2013
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126,000
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98.80
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2014 (2)
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January 1, 2014 through March 31, 2014
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103,000
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$
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96.48
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April 1, 2014 through June 30, 2014
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93,000
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96.47
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(1)
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EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for additional six-month periods. Options covering a notional volume of 64,000 Bbld are exercisable on December 31, 2013. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 64,000 Bbld at an average price of $99.58 per barrel for each month during the period January 1, 2014 through June 30, 2014.
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(2)
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EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for additional six-month and nine-month periods. Options covering a notional volume of 10,000 Bbld are exercisable on or about March 31, 2014. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 10,000 Bbld at an average price of $96.60 per barrel for each month during the period April 1, 2014 through December 31, 2014. Options covering a notional volume of 93,000 Bbld are exercisable on or about June 30, 2014. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 93,000 Bbld at an average price of $96.47 per barrel for each month during the period July 1, 2014 through December 31, 2014. In addition, in connection with the crude oil derivative contracts settled in September 2013, counterparties retain the option to enter into derivative contracts on December 31, 2014. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 5,000 Bbld at an average price of $95.43 per barrel for each month during the period January 1, 2015 through June 30, 2015.
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Natural Gas Derivative Contracts
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Volume (MMBtud)
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Weighted Average Price ($/MMBtu)
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2013 (1)
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January 1, 2013 through April 30, 2013 (closed)
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150,000
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$
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4.79
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May 1, 2013 through October 31, 2013 (closed)
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200,000
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4.72
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November 1, 2013 through December 31, 2013
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150,000
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4.79
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2014 (2)
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January 1, 2014 through December 31, 2014
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170,000
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$
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4.54
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(1) | EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates. Such options are exercisable monthly up until the settlement date of each monthly contract. For the period November 1, 2013 through December 31, 2013, if the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 150,000 MMBtud at an average price of $4.79 per MMBtu for each month during that period. |
(2) | EOG has entered into natural gas derivative contracts which give counterparties the option of entering into derivative contracts at future dates. Additionally, in connection with certain natural gas derivative contracts settled in July 2012, counterparties retain an option of entering into derivative contracts at future dates. All such options are exercisable monthly up until the settlement date of each monthly contract. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 320,000 MMBtud at an average price of $4.66 per MMBtu for each month during the period January 1, 2014 through December 31, 2014. |
· | the timing and extent of changes in prices for, and demand for, crude oil and condensate, NGLs, natural gas and related commodities; |
· | the extent to which EOG is successful in its efforts to acquire or discover additional reserves; |
· | the extent to which EOG can optimize reserve recovery and economically develop its plays utilizing horizontal and vertical drilling, advanced completion technologies and hydraulic fracturing; |
· | 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 crude oil and natural gas exploration and development projects, given the risks and uncertainties and capital expenditure requirements inherent in drilling, completing and operating crude oil and natural gas wells and the potential for interruptions of development and production, whether involuntary or intentional as a result of market or other conditions; |
· | the extent to which EOG is successful in its efforts to market its crude oil, natural gas and related commodity production; |
· | the availability, proximity and capacity of, and costs associated with, gathering, processing, compression and transportation facilities; |
· | 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, and EOG's ability to retain mineral licenses and leases; |
· | the impact of, and changes in, government policies, laws and regulations, including tax laws and regulations, environmental laws and regulations relating to air emissions, waste disposal, hydraulic fracturing and access to and use of water, laws and regulations imposing conditions and restrictions on drilling and completion operations and laws and regulations with respect to derivatives and hedging activities; |
· | EOG's ability to effectively integrate acquired crude oil and natural gas 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; |
· | the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully and economically; |
· | 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; |
· | the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; |
· | weather, including its impact on crude oil and natural gas demand, and weather-related delays in drilling and in the installation and operation of production, gathering, processing, compression and transportation facilities; |
· | 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; |
· | 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, and to otherwise satisfy its capital expenditure requirements; |
· | the extent and effect of any hedging activities engaged in by EOG; |
· | 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; |
· | political conditions and developments around the world (such as political instability and armed conflict), including in the areas in which EOG operates; |
· | the use of competing energy sources and the development of alternative energy sources; |
· | the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; |
· | acts of war and terrorism and responses to these acts; |
· | physical, electronic and cyber security breaches; and |
· | the other factors described under ITEM 1A, Risk Factors, on pages 16 through 23 of EOG's Annual Report on Form 10-K for the year ended December 31, 2012. |
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EOG RESOURCES, INC.
(Registrant) |
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Date: October 10, 2013
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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) |