Press release from PR Newswire
EOG Resources Signs Agreement to Sell Portion of Marcellus Shale Position
Monday, November 15, 2010
EOG Resources Signs Agreement to Sell Portion of Marcellus Shale Position18:34 EST Monday, November 15, 2010HOUSTON, Nov. 15, 2010 /PRNewswire-FirstCall/ -- EOG Resources, Inc. (NYSE: EOG) today announced the signing of a purchase and sale agreement with Newfield Exploration Company (NYSE: NFX) for approximately 50,000 net acres in Bradford County, Pennsylvania. The transaction, valued at $405 million, is expected to close by year-end 2010.Representing less than one-half of one percent of EOG's total North American production, this Marcellus Shale acreage in northeastern Pennsylvania includes five producing natural gas wells with 7 million cubic feet per day of gross production. Following the close of the divestiture, EOG retains approximately 170,000 net acres in the Marcellus Shale in northwestern Pennsylvania.With this transaction and others that EOG has signed or anticipates signing by year-end 2010, EOG estimates that the total proceeds from these asset sales will be approximately $1.0 billion."The sale of this Marcellus acreage is a part of EOG's previously announced tactical plan to sell certain producing and non-producing natural gas assets in North America. These sales will add liquidity to partially fund EOG's liquids weighted capital expenditure program," said Mark G. Papa, Chairman and Chief Executive Officer.EOG Resources, Inc. is one of the largest independent (non-integrated) oil and natural gas companies in the United States with proved reserves in the United States, Canada, Trinidad, the United Kingdom and China. EOG Resources, Inc. is listed on the New York Stock Exchange and is traded under the ticker symbol "EOG." This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs and statements regarding the plans and objectives of EOG's management for future operations, are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "goal," "may," "will" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning EOG's future operating results and returns or EOG's ability to replace or increase reserves, increase production or generate income or cash flows are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, EOG's forward-looking statements may be affected by known and unknown risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:the timing and extent of changes in prices for natural gas, crude oil and related commodities; changes in demand for natural gas, crude oil and related commodities, including ammonia and methanol;the extent to which EOG is successful in its efforts to discover and market reserves and to acquire natural gas and crude oil properties; the extent to which EOG can optimize reserve recovery and economically develop its plays utilizing horizontal and vertical drilling and advanced completion technologies;the extent to which EOG is successful in its efforts to economically develop its acreage in, and to produce reserves and achieve anticipated production levels from, its existing and future natural gas and crude oil exploration and development projects, given the risks and uncertainties inherent in drilling, completing and operating natural gas and crude oil wells and the potential for interruptions of production, whether involuntary or intentional as a result of market or other conditions; the availability, proximity and capacity of, and costs associated with, gathering, processing, compression and transportation facilities; the availability, cost, terms and timing of issuance or execution of, and competition for, mineral licenses and leases and governmental and other permits and rights of way; changes in government policies, laws and regulations, including environmental and tax laws and regulations;competition in the oil and gas exploration and production industry for employees and other personnel, equipment, materials and services and, related thereto, the availability and cost of employees and other personnel, equipment, materials and services;EOG's ability to obtain access to surface locations for drilling and production facilities; the extent to which EOG's third-party-operated natural gas and crude oil properties are operated successfully and economically;EOG's ability to effectively integrate acquired natural gas and crude oil properties into its operations, fully identify existing and potential problems with respect to such properties and accurately estimate reserves, production and costs with respect to such properties;weather, including its impact on natural gas and crude oil demand, and weather-related delays in drilling and in the installation and operation of production, gathering, processing, compression and transportation facilities;the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all;the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;political developments around the world, including in the areas in which EOG operates;the extent and effect of any hedging activities engaged in by EOG;the timing and impact of liquefied natural gas imports;the use of competing energy sources and the development of alternative energy sources;the extent to which EOG incurs uninsured losses and liabilities;acts of war and terrorism and responses to these acts; andthe other factors described under Item 1A, "Risk Factors," on pages 14 through 19 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2009.In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. SOURCE EOG Resources, Inc.For further information: Media and Investors, Elizabeth M. Ivers, +1-713-651-7132, or Investors, Maire A. Baldwin, +1-713-651-6364, both of EOG Resources, Inc.