Item 8.01 Other Events.
I. Price Risk Management
With the objective of enhancing the certainty of future revenues, from time to time EOG enters intoU.S. New York Mercantile Exchange (NYMEX) related financial price swap, option, swaption, collar and basis swap contracts. EOG accounts for financial commodity derivative contracts using the mark-to-market accounting method. EOG's actual realizations for crude oil and natural gas differ from NYMEX West Texas Intermediate (WTI) prices and NYMEX natural gas prices at Henry Hub, respectively, due to delivery location (basis), quality and appropriate revenue adjustments. Market prices for natural gas liquids (NGLs) are influenced by the components extracted, including ethane, propane, butane and natural gasoline, among others, and the respective market pricing for each component.
II. Crude Oil Derivative Contracts
Since filing its Quarterly Report on Form 10-Q for the quarterly period ended
Prices received by EOG for its crude oil production generally vary from NYMEX WTI prices due to adjustments for delivery location (basis) and other factors. EOG has entered into crude oil basis swap contracts in order to fix the differential between Intercontinental Exchange (ICE) Brent pricing and pricing inCushing, Oklahoma (ICE Brent Differential). Presented below is a comprehensive summary of EOG's ICE Brent Differential basis swap contracts throughMay 27, 2020 . The weighted average price differential expressed in dollars per barrel ($/Bbl) represents the amount of addition toCushing, Oklahoma , prices for the notional volumes expressed in barrels per day (Bbld) covered by the basis swap contracts. ICE Brent Differential Basis Swap Contracts Weighted Average Volume Price Differential (Bbld) ($/Bbl) 2020 May 2020 10,000 $ 4.92 EOG has also entered into crude oil basis swap contracts in order to fix the differential between pricing inHouston, Texas , andCushing, Oklahoma (Houston Differential). Presented below is a comprehensive summary of EOG'sHouston Differential basis swap contracts throughMay 27, 2020 . The weighted average price differential expressed in $/Bbl represents the amount of addition toCushing, Oklahoma , prices for the notional volumes expressed in Bbld covered by the basis swap contracts. Houston Differential Basis Swap Contracts Weighted Average Price Differential Volume (Bbld) ($/Bbl) 2020 May 2020 (closed) 10,000 $ 1.55 2
-------------------------------------------------------------------------------- EOG has also entered into crude oil swaps to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month (Roll Differential). Presented below is a comprehensive summary of EOG's Roll Differential swap contracts throughMay 27, 2020 . The weighted average price differential expressed in $/Bbl represents the amount of net addition (reduction) to delivery month prices for the notional volumes expressed in Bbld covered by the swap contracts. Roll Differential Swap Contracts Weighted Average Price Volume Differential (Bbld) ($/Bbl) 2020 February 1, 2020 through June 30, 2020 (closed) 10,000 $ 0.70 July 1, 2020 through September 30, 2020 88,000 (1.16 ) October 1, 2020 through December 31, 2020 66,000 (1.16 ) InMay 2020 , EOG entered into crude oil Roll Differential swap contracts for the period fromJuly 1, 2020 throughSeptember 30, 2020 , with notional volumes of 22,000 Bbld at a weighted average price differential of$(0.43) per Bbl, and for the period fromOctober 1, 2020 throughDecember 31, 2020 , with notional volumes of 44,000 Bbld at a weighted average price differential of$(0.73) per Bbl. These contracts partially offset certain outstanding Roll Differential swap contracts for the same time periods and volumes at a weighted average price differential of$(1.16) per Bbl. EOG expects to pay net cash of$3.2 million for the settlement of these contracts. The offsetting contracts were excluded from the above table. Presented below is a comprehensive summary of EOG's crude oil NYMEX WTI price swap contracts throughMay 27, 2020 , with notional volumes expressed in Bbld and prices expressed in $/Bbl. Crude Oil NYMEX WTI Price Swap Contracts Volume Weighted Average (Bbld) Price ($/Bbl) 2020 January 1, 2020 through March 31, 2020 (closed) 200,000 $ 59.33 April 2020 (closed) 265,000 51.36 May 2020 265,000 51.36 In April andMay 2020 , EOG entered into crude oil NYMEX WTI price swap contracts for the period fromJune 1, 2020 throughJune 30, 2020 , with notional volumes of 265,000 Bbld at a weighted average price of$33.80 per Bbl, for the period fromJuly 1, 2020 throughJuly 31, 2020 , with notional volumes of 254,000 Bbld at a weighted average price of$33.75 per Bbl, for the period fromAugust 1, 2020 throughSeptember 30, 2020 , with notional volumes of 154,000 Bbld at a weighted average price of$34.18 per Bbl and for the period fromOctober 1, 2020 throughDecember 31, 2020 , with notional volumes of 47,000 Bbld at a weighted average price of$30.04 per Bbl. These contracts offset the remaining NYMEX WTI price swap contracts for the same time periods and volumes at a weighted average price of$51.36 per Bbl for the period fromJune 1, 2020 throughJune 30, 2020 ,$42.36 per Bbl for the period fromJuly 1, 2020 throughJuly 31, 2020 ,$50.42 per Bbl for the period fromAugust 1, 2020 throughSeptember 30, 2020 and$31.00 per Bbl for the period fromOctober 1, 2020 throughDecember 31, 2020 . EOG expects to receive net cash of$364.0 million for the settlement of these contracts. The offsetting contracts were excluded from the above table. 3 -------------------------------------------------------------------------------- Presented below is a comprehensive summary of EOG's crude oil ICE Brent price swap contracts throughMay 27, 2020 , with notional volumes expressed in Bbld and prices expressed in $/Bbl. Crude Oil ICE Brent Price Swap Contracts Volume (Bbld) Weighted Average Price ($/Bbl) 2020 April 2020 (closed) 75,000 $ 25.66 May 2020 35,000 26.53
III. Natural Gas Liquids Derivative Contracts
Since filing its Form 10-Q, EOG has entered into additional NGL derivative contracts for propane.
Presented below is a comprehensive summary of EOG's
Mont Belvieu Propane Price Swap Contracts Volume Weighted Average (Bbld) Price ($/Bbl) 2020January 1, 2020 throughFebruary 29, 2020 (closed) 4,000
$ 21.34
March 1, 2020 throughApril 30, 2020 (closed) 25,000
17.92
In April andMay 2020 , EOG entered into Mont Belvieu Propane Price Swap Contracts for the period fromMay 1, 2020 throughDecember 31, 2020 , with notional volumes of 25,000 Bbld at a weighted average price of$16.41 per Bbl. These contracts offset the remaining Mont Belvieu Propane Price Swap Contracts for the same time period with notional volumes of 25,000 Bbld at a weighted average price of$17.92 per Bbl. EOG expects to receive net cash of$9.2 million for the settlement of these contracts. The offsetting contracts were excluded from the above table.
IV. Natural Gas Derivative Contracts
Since filing its Form 10-Q, EOG has not entered into additional natural gas derivative contracts.
Presented below is a comprehensive summary of EOG's natural gas price swap contracts throughMay 27, 2020 , with notional volumes expressed in million British thermal units (MMBtu) per day (MMBtud) and prices expressed in dollars per MMBtu ($/MMBtu). Natural Gas Price Swap Contracts Volume Weighted Average (MMBtud) Price ($/MMBtu) 2020 January 1, 2020 through December 31, 2020 50,000 $ 2.75 4
-------------------------------------------------------------------------------- EOG has entered into natural gas collar contracts, which establish ceiling and floor prices for the sale of notional volumes of natural gas as specified in the collar contracts. The collars require that EOG pay the difference between the ceiling price and the NYMEX Henry Hub natural gas price for the contract month (Henry Hub Index Price) in the event the Henry Hub Index Price is above the ceiling price. The collars grant EOG the right to receive the difference between the floor price and the Henry Hub Index Price in the event the Henry Hub Index Price is below the floor price. OnMarch 24, 2020 , EOG executed the early termination provision granting EOG the right to terminate certain 2020 natural gas collar contracts with notional volumes of 250,000 MMBtud at a weighted average ceiling price of$2.50 per MMBtu and a weighted average floor price of$2.00 per MMBtu for the period fromApril 1, 2020 throughJuly 31, 2020 . The net cash EOG received for settling these contracts was$7.8 million . Presented below is a comprehensive summary of EOG's natural gas collar contracts throughMay 27, 2020 , with notional volumes expressed in MMBtud and prices expressed in $/MMBtu. Natural Gas Collar Contracts
Weighted Average Price ($/MMBtu)
Volume (MMBtud)
Ceiling Price Floor Price
2020 April 1, 2020 through July 31, 2020 (closed) 250,000 $ 2.50 $ 2.00 OnApril 14, 2020 , EOG entered into natural gas collar contracts for the period fromAugust 1, 2020 throughOctober 31, 2020 , with notional volumes of 250,000 MMBtud at a ceiling price of$2.50 per MMBtu and a floor price of$2.00 per MMBtu. These contracts offset the remaining natural gas collar contracts for the same time period with notional volumes of 250,000 MMBtud at a ceiling price of$2.50 per MMBtu and a floor price of$2.00 per MMBtu. EOG expects to receive net cash of$1.1 million for the settlement of these contracts. The offsetting contracts were excluded from the above table. Prices received by EOG for its natural gas production generally vary from NYMEXHenry Hub prices due to adjustments for delivery location (basis) and other factors. EOG has entered into natural gas basis swap contracts in order to fix the differential between pricing in theRocky Mountain area and NYMEX Henry Hub prices (Rockies Differential). Presented below is a comprehensive summary of EOG's Rockies Differential basis swap contracts throughMay 27, 2020 . The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts. Rockies Differential Basis Swap Contracts Weighted Average Volume Price Differential (MMBtud) ($/MMBtu) 2020 January 1, 2020 through May 31, 2020 (closed) 30,000 $ 0.55 June 1, 2020 through December 31, 2020 30,000 0.55 5
-------------------------------------------------------------------------------- EOG has also entered into natural gas basis swap contracts in order to fix the differential between pricing at the Houston Ship Channel (HSC) and NYMEX Henry Hub prices (HSC Differential). OnMarch 27, 2020 , EOG executed the early termination provision granting EOG the right to terminate certain 2020 HSC Differential basis swaps with notional volumes of 60,000 MMBtud at a weighted average price differential of$0.05 per MMBtu for the period fromApril 1, 2020 throughDecember 31, 2020 . The net cash EOG paid for settling these contracts was$0.4 million . Presented below is a comprehensive summary of EOG's HSC Differential basis swap contracts throughMay 27, 2020 . The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts. HSC Differential Basis Swap Contracts Weighted Average Volume Price Differential (MMBtud) ($/MMBtu) 2020 January 1, 2020 through December 31, 2020 (closed) 60,000 $ 0.05 EOG has also entered into natural gas basis swap contracts in order to fix the differential between pricing at the Waha Hub inWest Texas and NYMEX Henry Hub prices (Waha Differential). Presented below is a comprehensive summary of EOG's Waha Differential basis swap contracts throughMay 27, 2020 . The weighted average price differential expressed in $/MMBtu represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtud covered by the basis swap contracts. Waha Differential Basis Swap Contracts Weighted Average Volume Price Differential (MMBtud) ($/MMBtu) 2020 January 1, 2020 through April 30, 2020 (closed) 50,000 $ 1.40 InApril 2020 , EOG entered into Waha Differential basis swap contracts for the period fromMay 1, 2020 throughDecember 31, 2020 , with notional volumes of 50,000 MMBtud at a weighted average price differential of$0.43 per MMBtu. These contracts offset the remaining Waha Differential basis swap contracts for the same time period with notional volumes of 50,000 MMBtud at a weighted average price differential of$1.40 MMBtu. EOG expects to pay net cash of$11.9 million for the settlement of these contracts. The offsetting contracts were excluded from the above table. 6
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