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Risk Management Activities | 6 Months Ended
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Jun. 30, 2021
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 2020 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, NGLs 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. Presented below is a comprehensive summary of EOG's financial commodity derivative contracts as of June 30, 2021. Crude oil and NGL volumes are presented in thousand barrels per day (MBbld) and prices are presented in dollars per barrel ($/Bbl). Natural gas volumes are presented in million British Thermal Units per day (MMBtud) and prices are presented in dollars per million British Thermal Units ($/MMBtu).
Crude Oil Financial Price Swap Contracts
|  |  |  | Contracts Sold
Period |  | Settlement Index |  | Volume (MBbld) |  | Weighted Average Price ($/Bbl)
January 2021 (closed) |  | New York Mercantile Exchange (NYMEX) West Texas Intermediate (WTI) |  | 151 |  |  | $ | 50.06 |
February - March 2021 (closed) |  | NYMEX WTI |  | 201 |  |  | 51.29 |
April - June 2021 (closed) |  | NYMEX WTI |  | 150 |  |  | 51.68 |
July - September 2021 |  | NYMEX WTI |  | 150 |  |  | 52.71 |
January - March 2022 |  | NYMEX WTI |  | 140 |  |  | 65.58 |
April - June 2022 |  | NYMEX WTI |  | 100 |  |  | 64.98 |
July - September 2022 |  | NYMEX WTI |  | 60 |  |  | 64.26 |
October - December 2022 |  | NYMEX WTI |  | 30 |  |  | 63.59 |
Crude Oil Basis Swap Contracts
|  |  |  | Contracts Sold
Period |  | Settlement Index |  | Volume (MBbld) |  | Weighted Average Price Differential ($/Bbl)
February 2021 (closed) |  | NYMEX WTI Roll Differential (1) |  | 30 |  |  | $ | 0.11 |
March - July 2021 (closed) |  | NYMEX WTI Roll Differential (1) |  | 125 |  |  | 0.17 |
August - December 2021 |  | NYMEX WTI Roll Differential (1) |  | 125 |  |  | 0.17 |
January - December 2022 |  | NYMEX WTI Roll Differential (1) |  | 125 |  |  | 0.15 |
_________________ (1) This settlement index is used to fix the differential in pricing between the NYMEX calendar month average and the physical crude oil delivery month.
NGL Financial Price Swap Contracts
|  |  |  | Contracts Sold
Period |  | Settlement Index |  | Volume (MBbld) |  | Weighted Average Price ($/Bbl)
January - June 2021 (closed) |  | Mont Belvieu Propane (non-Tet) |  | 15 |  |  | $ | 29.44 |
July - December 2021 |  | Mont Belvieu Propane (non-Tet) |  | 15 |  |  | 29.44 |
Natural Gas Financial Price Swap Contracts
|  |  |  | Contracts Sold |  | Contracts Purchased
Period |  | Settlement Index |  | Volume (MMBtud in thousands) |  | Weighted AveragePrice ($/MMBtu) |  | Volume (MMBtud in thousands) |  | Weighted Average Price ($/MMBtu)
January - March 2021 (closed) |  | NYMEX Henry Hub |  | 500 |  |  | $ | 2.99 |  |  | 500 |  |  | $ | 2.43 |
April - July 2021 (closed) |  | NYMEX Henry Hub |  | 500 |  |  | 2.99 |  |  | 570 |  |  | 2.81 |
August - September 2021 |  | NYMEX Henry Hub |  | 500 |  |  | 2.99 |  |  | 570 |  |  | 2.81 |
October - December 2021 |  | NYMEX Henry Hub |  | 500 |  |  | 2.99 |  |  | 500 |  |  | 2.83 |
January - December 2022 (closed) (1) |  | NYMEX Henry Hub |  | 20 |  |  | 2.75 |  |  | — |  |  | — |
April - July 2021 (closed) |  | Japan Korea Marker (JKM) |  | 70 |  |  | 6.65 |  |  | — |  |  | — |
August - September 2021 |  | JKM |  | 70 |  |  | 6.65 |  |  | — |  |  | — |
_________________ (1) In January 2021, EOG executed the early termination provision granting EOG the right to terminate all of its open 2022 natural gas price swap contracts. EOG received net cash of $0.6 million for the settlement of these contracts. Commodity Derivatives Location on Balance Sheet. The following table sets forth the amounts and classification of EOG's outstanding financial derivative instruments at June 30, 2021 and December 31, 2020. 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 millions):
|  |  |  | Fair Value at
Description |  | Location on Balance Sheet |  | June 30, 2021 |  | December 31, 2020
Asset Derivatives |  |  |  |  |  |
Crude oil, NGLs and natural gas derivative contracts - |  |  |  |  |  |
Current portion |  | Assets from Price Risk Management Activities |  | $ | — |  |  | $ | 65 |
Noncurrent Portion |  | Other Assets |  | — |  |  | 1 |
Liability Derivatives |  |  |  |  |  |
Crude oil, NGLs and natural gas derivative contracts - |  |  |  |  |  |
Current portion |  | Liabilities from Price Risk Management Activities (1) |  | $ | 396 |  |  | $ | — |
Noncurrent portion |  | Other Liabilities |  | 14 |  |  | 1 |
(1) The current portion of Liabilities from Price Risk Management Activities consists of gross liabilities of $430 million, partially offset by gross assets of $34 million, at June 30, 2021. 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 exposures to significant counterparties on an ongoing basis, including those 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 liability position at June 30, 2021 and a net asset position at December 31, 2020. EOG had $107 million of collateral posted and no collateral held at June 30, 2021, and had no collateral posted or held at December 31, 2020.

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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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