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Risk Management Activities (Notes) | 9 Months Ended
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Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Risk Management Activities | Risk Management Activities Commodity Price Risk. As more fully discussed in Note 12 to the Consolidated Financial Statements included in EOG's 2018 Annual Report, EOG engages in price risk management activities from time to time. These activities are intended to manage EOG's exposure to fluctuations in commodity prices for crude oil and natural gas. EOG utilizes financial commodity derivative instruments, primarily price swap, option, swaption, collar and basis swap contracts, as a means to manage this price risk. EOG has not designated any of its financial commodity derivative contracts as accounting hedges and, accordingly, accounts for financial commodity derivative contracts using the mark-to-market accounting method. Commodity Derivative Contracts. Prices received by EOG for its crude oil production generally vary from U.S. New York Mercantile Exchange (NYMEX) West Texas Intermediate 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 pricing in Midland, Texas, and Cushing, Oklahoma (Midland Differential). Presented below is a comprehensive summary of EOG's Midland Differential basis swap contracts for the nine months ended September 30, 2019. The weighted average price differential expressed in dollars per barrel ($/Bbl) represents the amount of reduction to Cushing, Oklahoma, prices for the notional volumes expressed in barrels per day (Bbld) covered by the basis swap contracts.
| Midland Differential Basis Swap Contracts
|  |  | Volume (Bbld) |  | Weighted Average Price Differential ($/Bbl)
| 2019 |  |  |  |
| January 1, 2019 through October 31, 2019 (closed) |  | 20,000 |  |  | $ | 1.075 |
| November 1, 2019 through December 31, 2019 |  | 20,000 |  |  | 1.075 |
EOG has also entered into crude oil basis swap contracts in order to fix the differential between pricing in the U.S. Gulf Coast and Cushing, Oklahoma (Gulf Coast Differential). Presented below is a comprehensive summary of EOG's Gulf Coast Differential basis swap contracts for the nine months ended September 30, 2019. The weighted average price differential expressed in $/Bbl represents the amount of addition to Cushing, Oklahoma, prices for the notional volumes expressed in Bbld covered by the basis swap contracts.
| Gulf Coast Differential Basis Swap Contracts
|  |  | Volume (Bbld) |  | Weighted Average Price Differential ($/Bbl)
| 2019 |  |  |  |
| January 1, 2019 through October 31, 2019 (closed) |  | 13,000 |  |  | $ | 5.572 |
| November 1, 2019 through December 31, 2019 |  | 13,000 |  |  | 5.572 |
Presented below is a comprehensive summary of EOG's crude oil price swap contracts for the nine months ended September 30, 2019, with notional volumes expressed in Bbld and prices expressed in $/Bbl.
Crude Oil Price Swap Contracts
|  | Volume (Bbld) |  | Weighted Average Price ($/Bbl)
2019 |  |  |  |
April 2019 (closed) |  | 25,000 |  |  | $ | 60.00 |
May 1, 2019 through September 30, 2019 (closed) |  | 150,000 |  |  | 62.50 |
October 1, 2019 through December 31, 2019 |  | 150,000 |  |  | 62.50 |
Prices received by EOG for its natural gas production generally vary from NYMEX Henry 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 the Rocky Mountain area and NYMEX Henry Hub prices (Rockies Differential). Presented below is a comprehensive summary of EOG's Rockies Differential basis swap contracts for the nine months ended September 30, 2019. The weighted average price differential expressed in dollars per million British thermal units ($/MMBtu) represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes expressed in MMBtu per day (MMBtud) covered by the basis swap contracts.
| Rockies Differential Basis Swap Contracts
|  |  | Volume (MMBtud) |  | Weighted Average Price Differential ($/MMBtu)
| 2020 |  |  |  |
| January 1, 2020 through December 31, 2020 |  | 14,000 |  |  | $ | 0.55 |
Presented below is a comprehensive summary of EOG's natural gas price swap contracts for the nine months ended September 30, 2019, with notional volumes expressed in MMBtud and prices expressed in $/MMBtu.
Natural Gas Price Swap Contracts
|  | Volume (MMBtud) |  | Weighted Average Price ($/MMBtu)
2019 |  |  |  |
April 1, 2019 through October 31, 2019 (closed) |  | 250,000 |  |  | $ | 2.90 |
The following table sets forth the amounts and classification of EOG's outstanding financial derivative instruments at September 30, 2019 and December 31, 2018. Certain amounts may be presented on a net basis on the Condensed Consolidated Financial Statements when such amounts are with the same counterparty and subject to a master netting arrangement (in thousands):
|  |  |  | Fair Value at
Description |  | Location on Balance Sheet |  | September 30, 2019 |  | December 31, 2018
Asset Derivatives |  |  |  |  |  |
Crude oil and natural gas derivative contracts - |  |  |  |  |  |
Current portion |  | Assets from Price Risk Management Activities (1) |  | $ | 122,627 |  |  | $ | 23,806 |
Liability Derivatives |  |  |  |  |  |
Crude oil and natural gas derivative contracts - |  |  |  |  |  |
Noncurrent portion |  | Other Liabilities |  | $ | 21 |  |  | $ | — |
(1) The current portion of Assets from Price Risk Management Activities consists of gross assets of $124 million, partially offset by gross liabilities of $1 million at September 30, 2019. Credit Risk. Notional contract amounts are used to express the magnitude of a financial derivative. The amounts potentially subject to credit risk, in the event of nonperformance by the counterparties, are equal to the fair value of such contracts (see Note 11). EOG evaluates its exposure to significant counterparties on an ongoing basis, including that arising from physical and financial transactions. In some instances, EOG renegotiates payment terms and/or requires collateral, parent guarantees or letters of credit to minimize credit risk. All of EOG's derivative instruments are covered by International Swap Dealers Association Master Agreements (ISDAs) with counterparties. The ISDAs may contain provisions that require EOG, if it is the party in a net liability position, to post collateral when the amount of the net liability exceeds the threshold level specified for EOG's then-current credit ratings. In addition, the ISDAs may also provide that as a result of certain circumstances, including certain events that cause EOG's credit ratings to become materially weaker than its then-current ratings, the counterparty may require all outstanding derivatives under the ISDAs to be settled immediately. See Note 11 for the aggregate fair value of all derivative instruments that were in a net asset position at September 30, 2019 and December 31, 2018. EOG had no collateral posted or held at September 30, 2019, or at December 31, 2018.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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