| Commodity Derivative Contracts - Crude Oil |
Commodity Derivative Contracts. Presented below is a comprehensive summary of EOG's crude oil derivative contracts at September 30, 2012, with notional volumes expressed in barrels per day (Bbld) and prices expressed in dollars per barrel ($/Bbl).
Crude Oil Derivative Contracts | | | | | | | Weighted | | | | Volume (1) | | | Average Price | | | | (Bbld) | | | ($/Bbl) | | 2012 | | | | | | | January 1, 2012 through February 29, 2012 (closed) | | | 34,000 | | | $ | 104.95 | | March 1, 2012 through June 30, 2012 (closed) | | | 52,000 | | | | 105.80 | | July 1, 2012 through August 31, 2012 (closed) | | | 50,000 | | | | 106.90 | | September 2012 (closed) | | | 32,000 | | | | 106.61 | | October 1, 2012 through December 31, 2012 | | | 42,000 | | | | 105.19 | | | | | | | | | | | 2013 | | | | | | | | | January 1, 2013 through June 30, 2013 | | | 98,000 | | | $ | 99.39 | | July 1, 2013 through December 31, 2013 | | | 54,000 | | | | 99.38 | |
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(1) | EOG has entered into crude oil derivative contracts which give counterparties the option to extend certain current derivative contracts for an additional six-month period. Options covering a notional volume of 25,000 Bbld are exercisable on December 31, 2012. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 25,000 Bbld at an average price of $106.27 per barrel for the period January 1, 2013 through June 30, 2013. Options covering a notional volume of 59,000 Bbld are exercisable on June 28, 2013. If the counterparties exercise all such options, the notional volume of EOG's existing crude oil derivative contracts will increase by 59,000 Bbld at an average price of $100.45 per barrel for the period July 1, 2013 through December 31, 2013. Options covering a notional volume of 15,000 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 15,000 Bbld at an average price of $103.54 per barrel for the period from January 1, 2014 through June 30, 2014. |
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| Commodity Derivative Contracts - Natural Gas |
Presented below is a comprehensive summary of EOG's natural gas derivative contracts at September 30, 2012, with notional volumes expressed in million British thermal units (MMBtu) per day (MMBtud) and prices expressed in dollars per MMBtu ($/MMBtu).
Natural Gas Derivative Contracts | | | | Volume (MMBtud) | | | Weighted Average Price ($/MMBtu) | | 2012 (1) | | | | | | | January 2012 through October 31, 2012 (closed) | | | 525,000 | | | $ | 5.44 | | November 1, 2012 through December 31, 2012 | | | 525,000 | | | | 5.44 | | | | | | | | | | | 2013 (2) | | | | | | | | | January 1, 2013 through December 31, 2013 | | | 150,000 | | | $ | 4.79 | | | | | | | | | | | 2014 (3) | | | | | | | | |
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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. If the counterparties exercise all such options, the notional volume of EOG's existing natural gas derivative contracts will increase by 425,000 MMBtud at an average price of $5.44 per MMBtu for the period from November 1, 2012 through December 31, 2012. |
| (2) | 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. 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 of 2013. |
| (3) | In July 2012, EOG settled its natural gas derivative contracts for the period January 1, 2014 through December 31, 2014 and received proceeds of $36.6 million. In connection with these contracts, the counterparties retain an option of entering into derivative contracts at future dates. 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 150,000 MMBtud at an average price of $4.79 per MMBtu for each month of 2014. |
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| Schedule of Derivative Instruments In Statement Of Financial Position, Fair Value |
The following table sets forth the amounts, on a gross basis, and classification of EOG's outstanding financial derivative instruments at September 30, 2012 and December 31, 2011. Certain amounts may be presented on a net basis in the consolidated financial statements when such amounts are with the same counterparty and subject to a master netting arrangement (in millions):
| | | Fair Value at | | | | | September 30, | | | December 31, | | Description | Location on Balance Sheet | | 2012 | | | 2011 | | | | | | | | | | Asset Derivatives | | | | | | | | Crude oil and natural gas derivative contracts - | | | | | | | | Current portion | Assets from Price Risk Management Activities | | $ | 238 | | | $ | 451 | | | | Noncurrent portion | Other Assets | | | 14 | | | | 35 | | | | | | | | | | | | Liability Derivatives | | | | | | | | | | Crude oil and natural gas derivative contracts – | | | | | | | | | | Current portion | Current Liabilities - Other | | $ | 1 | | | $ | - | | Noncurrent portion | Other Liabilities | | | 6 | | | | - | | Foreign currency swap - Noncurrent portion | Other Liabilities | | | 57 | | | | 52 | | | | | | | | | | | | Interest rate swap - Noncurrent portion | Other Liabilities | | | 4 | | | | 3 | |
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