Eog bombshell announcement

[Fraser921]

EOG

After hours announce 2.8 BILLION hedge loss
They also said they had to post 2.5 billion margin
Wondering out loud if recent high prices due to short squeeze

For the first quarter of 2022, EOG anticipates a net loss of $2,820 million on the mark-to-market of its financial commodity derivative contracts. During the first quarter of 2022, the net cash paid for settlements of financial commodity derivative contracts was $296 million.

For the quarter ended March 31, 2022, NYMEX WTI crude oil averaged $94.38 per Bbl, and NYMEX natural gas at Henry Hub averaged $4.91 per MMBtu. EOG's actual realizations for crude oil and natural gas for the quarter ended March 31, 2022, differ from these NYMEX prices due to delivery location (basis), quality and appropriate revenue adjustments. EOG's actual realizations for NGLs are influenced by the components extracted, including ethane, propane, butane and natural gasoline, among others, and the respective market pricing for each component.

In connection with its financial commodity derivative contracts, EOG had $2.5 billion of collateral posted at April 14, 2022. EOG expects this collateral to be applied to the settlement of financial commodity derivative contracts if market prices remain above contract prices. The amount of posted collateral will increase or decrease based on fluctuations in forward NYMEX WTI and Henry Hub prices.

buying oxy mgy clr you don’t have to worry about this crap

[dan_s]

Keep in mind that EOG has a market-cap over $70 billion and should generate over $13 of operating cash flow net of cash settlements on their hedges.
The higher the oil price goes the higher their operating cash flow goes. Meeting their cash settlements on hedges will not be a problem.