EOG Resources Inc (EOG) has disclosed a new risk, in the Accounting & Financial Operations category.
EOG Resources Inc. regularly participates in financial commodity and derivative transactions as a strategy to hedge against commodity price volatility. The company utilizes various instruments such as price swaps and collars without designating them as accounting hedges, opting instead for mark-to-market accounting. This approach results in gains or losses being reflected immediately in financial statements, which can introduce significant earnings volatility. As of the first quarter of 2024, EOG reported a net asset of $184 million from these activities, highlighting the material impact such transactions have on their financial position.
Overall, Wall Street has a Moderate Buy consensus rating on EOG stock based on 10 Buys and 12 Holds.
To learn more about EOG Resources Inc’s risk factors, click here.