HOUSTON, 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; and
- the 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.