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Risk Management Activities | 9 Months Ended
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Sep. 30, 2022
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 2021 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. Financial Commodity Derivative Contracts. Presented below is a comprehensive summary of EOG's financial commodity derivative contracts settled during the nine-month period ended September 30, 2022 (closed) and outstanding as of September 30, 2022. Crude oil 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 |  | Contracts Purchased
Period |  | Settlement Index |  | Volume (MBbld) |  | Weighted Average Price ($/Bbl) |  | Volume (MBbld) |  | Weighted Average Price ($/Bbl)
January - March 2022 (closed) |  | New York Mercantile Exchange (NYMEX) West Texas Intermediate (WTI) |  | 140 |  |  | $ | 65.58 |  |  | — |  |  | $ | — |
April - June 2022 (closed) |  | NYMEX WTI |  | 140 |  |  | 65.62 |  |  | — |  |  | — |
July - September 2022 (closed) |  | NYMEX WTI |  | 140 |  |  | 65.59 |  |  | — |  |  | — |
October - December 2022 (closed) (1) |  | NYMEX WTI |  | 53 |  |  | 66.11 |  |  | — |  |  | — |
October - December 2022 |  | NYMEX WTI |  | 87 |  |  | 65.41 |  |  | 87 |  |  | 88.85 |
January - March 2023 (closed) (1) (2) |  | NYMEX WTI |  | 55 |  |  | 67.96 |  |  | — |  |  | — |
January - March 2023 |  | NYMEX WTI |  | 95 |  |  | 67.90 |  |  | 6 |  |  | 102.26 |
April - May 2023 (closed) (1) |  | NYMEX WTI |  | 29 |  |  | 68.28 |  |  | — |  |  | — |
April - May 2023 |  | NYMEX WTI |  | 91 |  |  | 67.63 |  |  | 2 |  |  | 98.15 |
June 2023 (closed) (1) |  | NYMEX WTI |  | 118 |  |  | 67.77 |  |  | — |  |  | — |
June 2023 |  | NYMEX WTI |  | 2 |  |  | 69.10 |  |  | 2 |  |  | 98.15 |
July - September 2023 (closed) (1) |  | NYMEX WTI |  | 100 |  |  | 70.15 |  |  | — |  |  | — |
October - December 2023 (closed) (1) |  | NYMEX WTI |  | 69 |  |  | 69.41 |  |  | — |  |  | — |
(1) In the second quarter of 2022, EOG executed the early termination provision granting EOG the right to terminate certain of its October 2022 - December 2023 crude oil financial price swap contracts which were open at that time. EOG paid net cash of $593 million for the settlement of these contracts. (2) In the third quarter of 2022, EOG executed the early termination provision granting EOG the right to terminate certain of its January 2023 - March 2023 crude oil financial price swap contracts which were open at that time. EOG paid net cash of $63 million for the settlement of these contracts.
Crude Oil Basis Swap Contracts
|  |  |  | Contracts Sold
Period |  | Settlement Index |  | Volume (MBbld) |  | Weighted Average Price Differential ($/Bbl)
January - October 2022 (closed) |  | NYMEX WTI Roll Differential (1) |  | 125 |  |  | $ | 0.15 |
November - 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.
Natural Gas Financial Price Swap Contracts
|  |  |  | Contracts Sold
Period |  | Settlement Index |  | Volume (MMBtud in thousands) |  | Weighted Average Price ($/MMBtu)
January - September 2022 (closed) |  | NYMEX Henry Hub |  | 725 |  |  | $ | 3.57 |
October - December 2022 (closed) (1) |  | NYMEX Henry Hub |  | 425 |  |  | 3.05 |
October (closed) |  | NYMEX Henry Hub |  | 300 |  |  | 4.32 |
November - December 2022 |  | NYMEX Henry Hub |  | 300 |  |  | 4.32 |
January - December 2023 (closed) (1) |  | NYMEX Henry Hub |  | 425 |  |  | 3.05 |
January - December 2023 |  | NYMEX Henry Hub |  | 300 |  |  | 3.36 |
January - December 2024 |  | NYMEX Henry Hub |  | 725 |  |  | 3.07 |
January - December 2025 |  | NYMEX Henry Hub |  | 725 |  |  | 3.07 |
(1) In the second quarter of 2022, EOG executed the early termination provision granting EOG the right to terminate certain of its October 2022 - December 2023 natural gas financial price swap contracts which were open at that time. EOG paid net cash of $735 million for the settlement of these contracts.
Natural Gas Basis Swap Contracts
|  |  |  | Contracts Sold
Period |  | Settlement Index |  | Volume (MMBtud in thousands) |  | Weighted Average Price Differential ($/MMBtu)
January - September 2022 (closed) |  | NYMEX Henry Hub Houston Ship Channel (HSC) Differential (1) |  | 210 |  |  | $ | 0.01 |
October - December 2022 |  | NYMEX Henry Hub HSC Differential (1) |  | 210 |  |  | 0.01 |
January - December 2023 |  | NYMEX Henry Hub HSC Differential (1) |  | 135 |  |  | 0.01 |
January - December 2024 |  | NYMEX Henry Hub HSC Differential (1) |  | 10 |  |  | 0.00 |
January - December 2025 |  | NYMEX Henry Hub HSC Differential (1) |  | 10 |  |  | 0.00 |
(1) This settlement index is used to fix the differential between pricing at the Houston Ship Channel and NYMEX Henry Hub prices. Financial Commodity Derivatives Location on Balance Sheet. The following table sets forth the amounts and classification of EOG's outstanding financial commodity derivative instruments at September 30, 2022 and December 31, 2021. 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 |  | September 30, 2022 |  | December 31, 2021
Asset Derivatives |  |  |  |  |  |
Crude oil and natural gas derivative contracts - |  |  |  |  |  |
Noncurrent Portion |  | Other Assets (1) |  | $ | — |  |  | $ | 6 |
Liability Derivatives |  |  |  |  |  |
Crude oil and natural gas derivative contracts - |  |  |  |  |  |
Current portion |  | Liabilities from Price Risk Management Activities (2) |  | 243 |  |  | 269 |
Noncurrent portion |  | Other Liabilities (3) |  | 399 |  |  | 37 |
(1) The noncurrent portion of Assets from Price Risk Management Activities consists of gross assets of $7 million, partially offset by gross liabilities of $1 million at December 31, 2021. (2) The current portion of Liabilities from Price Risk Management Activities consists of gross liabilities of $547 million, partially offset by gross assets of $25 million and collateral posted with counterparties of $279 million at September 30, 2022. The current portion of Liabilities from Price Risk Management Activities consists of gross liabilities of $421 million, partially offset by gross assets of $29 million and collateral posted with counterparties of $123 million, at December 31, 2021. (3) The noncurrent portion of Liabilities from Price Risk Management Activities consists of gross liabilities of $810 million, partially offset by gross assets of $4 million and collateral posted with counterparties of $407 million at September 30, 2022. The noncurrent portion of Liabilities from Price Risk Management Activities consists of gross liabilities of $64 million, partially offset by gross assets of $10 million and collateral posted with counterparties of $17 million, at December 31, 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 both September 30, 2022 and December 31, 2021. EOG had $686 million of collateral posted and no collateral held at September 30, 2022. EOG had $140 million of collateral posted and no collateral held at December 31, 2021. Due to changes in contracted volumes and commodity prices subsequent to September 30, 2022, EOG had $623 million of collateral posted at November 2, 2022.

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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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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