IntrinsicIntrinsic
← All summaries

EOG RESOURCES INC

EOG
Financials & Chart →

Business Summary

EOG Resources, Inc. explores for, develops, produces and markets crude oil, natural gas liquids (NGLs) and natural gas primarily in major producing basins in the United States of America, the Republic of Trinidad and Tobago and, from time to time, select other international areas, including the Kingdom of Bahrain and the United Arab Emirates. At December 31, 2025, EOG's total estimated net proved reserves were 5,514 million barrels of oil equivalent (MMBoe), of which 1,905 million barrels (MMBbl) were crude oil and condensate reserves, 1,510 MMBbl were NGLs reserves and 12,592 billion cubic feet (Bcf), or 2,099 MMBoe, were natural gas reserves . At such date, approximately 99% of EOG's net proved reserves, on a crude oil equivalent basis, were located in the United States and 1% in Trinidad . EOG's operations are all crude oil and natural gas exploration and production related.

EOG competes with major integrated oil and gas companies, government-affiliated oil and gas companies and other independent oil and gas companies for the acquisition of licenses, concessions and leases, properties and reserves and access to the facilities, equipment, materials, services, and employees and other personnel necessary to explore for, develop, produce, market and transport crude oil, NGLs and natural gas. Certain of EOG's competitors have financial and other resources substantially greater than those EOG possesses and have established strategic long-term positions or strong governmental relationships in countries or areas in which EOG may seek new or expanded entry. EOG is focused on being among the highest return and lowest cost producers, committed to strong environmental performance and playing a significant role in the long-term future of energy.

EOG generates revenue through the exploration, development, production and marketing of crude oil, natural gas liquids (NGLs) and natural gas. The company's revenue mix is primarily transactional, derived from the sale of these commodities at market prices. EOG's primary customer segments include purchasers in the crude oil refining industry, and during 2025, two purchasers each accounted for more than 10% of EOG's total crude oil and condensate, NGLs and natural gas revenues and gathering, processing and marketing revenues . EOG operates under a consistent business and operational strategy that focuses on a comprehensive approach to developing acreage through industry cycles, evaluating rate of return, net present value, margins, payback period and other key metrics.

EOG's principal producing areas in the United States include the Delaware Basin, South Texas (including the Eagle Ford play and the Dorado gas play), the Appalachian Basin (including the Utica play), and the Rocky Mountain area (including the Powder River Basin and the Williston Basin). In the Delaware Basin, EOG completed 393 net wells in 2025, primarily in the Wolfcamp, Bone Spring and Leonard plays . In South Texas, EOG holds approximately 565,000 net acres in the Eagle Ford play and approximately 160,000 net acres in the Dorado gas play, completing 122 net wells in the Eagle Ford play and 27 net wells in the Dorado gas play in 2025 . In the Appalachian Basin, EOG holds approximately 1,100,000 net acres in the Utica play, including 135,000 net mineral acres, and completed 55 net wells in the Utica play in 2025 . In the Rocky Mountain area, EOG completed 22 net wells in 2025 in the Powder River Basin and 12 net wells in the Williston Basin . Outside the United States, EOG has operations offshore Trinidad, onshore Bahrain, and onshore United Arab Emirates. In Trinidad, EOG's net production in 2025 averaged approximately 230 MMcfd of natural gas and approximately 1.4 MBbld of crude oil and condensate . In Bahrain, a subsidiary of EOG signed an exploration participation agreement in February 2025, and in August 2025, the government approved the related concession agreement, with EOG having a working interest in several producing legacy wells . In the United Arab Emirates, a subsidiary of EOG was awarded a new oil exploration concession for Unconventional Onshore Block 3 (UCO3) in May 2025, holding a 100 percent equity interest and operatorship .

On August 1, 2025, EOG completed its acquisition of Encino Acquisition Partners, LLC (Encino) for $5.7 billion, inclusive of Encino's net debt . The assets of Encino include 675,000 core net acres in the Utica play . In January 2026, EOG signed a purchase and sale agreement for the sale of its entire interest and related fixed assets in the northern Midland Basin for $165 million, which closed on February 18, 2026 . During 2025, EOG funded $13.6 billion in exploration and development and other property, plant and equipment expenditures (excluding asset retirement obligations), paid $2.2 billion in dividends to common stockholders and paid $2.6 billion to repurchase shares of common stock . On April 1, 2025, EOG repaid upon maturity the $500 million aggregate principal amount of its 3.15% Senior Notes due 2025 . On July 1, 2025, EOG closed on its offering of $500 million aggregate principal amount of its 4.400% Senior Notes due 2028, $1.25 billion aggregate principal amount of its 5.000% Senior Notes due 2032, $1.25 billion aggregate principal amount of its 5.350% Senior Notes due 2036 and $500 million aggregate principal amount of its 5.950% Senior Notes due 2055, receiving net proceeds of $3.47 billion . On November 24, 2025, EOG closed on its offering of $750 million aggregate principal amount of its 4.400% Senior Notes due 2031 and $250 million aggregate principal amount of its 5.950% Senior Notes due 2055, receiving net proceeds of $996 million . On December 3, 2025, EOG entered into a new $3.0 billion senior unsecured Revolving Credit Agreement with a scheduled maturity date of December 3, 2030, replacing its $1.9 billion facility . On December 24, 2025, EOG redeemed the $750 million aggregate principal amount of its 4.15% Senior Notes prior to their maturity .

EOG realized net income of $4,980 million for 2025 as compared to net income of $6,403 million for 2024 . Total operating revenues decreased $1,066 million, or 4%, to $22,632 million from $23,698 million in 2024 . Total revenues from sales of EOG's production of crude oil and condensate, NGLs and natural gas, increased $90 million, or 1%, to $17,668 million in 2025 from $17,578 million in 2024 . Net cash provided by operating activities of $10,044 million in 2025 decreased $2,099 million from $12,143 million in 2024 . EOG's debt-to-total capitalization ratio was 21% at December 31, 2025 and 14% at December 31, 2024 . At December 31, 2025, EOG maintained $3.4 billion of cash and cash equivalents on hand and $3.0 billion of availability under its revolving credit facility .

Business Outlook

Total anticipated 2026 capital expenditures are estimated to range from approximately $6.3 billion to $6.7 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses . In 2026, crude oil and total crude oil equivalent production are expected to increase from 2025 levels .

In the Delaware Basin, EOG expects to complete approximately 300 net wells in 2026, with activity remaining focused on the Wolfcamp, Bone Spring and Leonard plays . In South Texas, EOG expects to complete approximately 115 net Eagle Ford play wells and 40 net Dorado gas play wells in 2026 . In the Appalachian Basin, EOG expects to complete approximately 85 net wells in the Utica play in 2026 . In the Rocky Mountain area, EOG expects to complete approximately 45 net wells across the Powder River Basin and the Williston Basin in 2026 . In Trinidad, EOG expects to complete the Mento drilling program, complete and install the Coconut Platform along with supporting pipelines, and continue to make progress on various opportunities including a new drilling program to drill exploration, appraisal and development wells . In Bahrain, EOG has commenced drilling of exploratory wells, which are expected to be completed in 2026 . In the United Arab Emirates, following a three-year appraisal period, EOG may enter into a production concession in which ADNOC has the option to participate .

Based on EOG's tax position, EOG's price sensitivity in 2026 for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGLs price, is approximately $174 million for net income and $223 million for pretax cash flows from operating activities . Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2026 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in natural gas price is approximately $64 million for net income and $83 million for pretax cash flows from operating activities .

In 2026, EOG expects to continue to undertake initiatives to increase its drilling, completion and operating efficiencies and improve the performance of its wells and, when available and advantageous, enter into agreements with its service providers to secure the costs and availability of certain drilling and completions services it utilizes as part of its operations . In 2026, EOG anticipates cash requirements of $2,246 million under minimum commitments, including $30 million for finance leases, $515 million for operating leases, $30 million for leases effective, not commenced, $1,031 million for transportation and storage service commitments, and $640 million for purchase and service obligations . In 2026, EOG has no senior notes maturing and expects to pay interest of $393 million on senior notes .

In November 2023, EOG announced an increase in its cash return commitment, specifically a commitment, effective beginning with fiscal year 2024, to return a minimum of 70 percent of annual net cash provided by operating activities before certain balance sheet-related changes, less total capital expenditures, to stockholders through a combination of regular dividends, special dividends and share repurchases . On February 24, 2026, the Board declared a quarterly cash dividend on the common stock of $1.02 per share to be paid on April 30, 2026, to stockholders of record as of April 16, 2026 . As of December 31, 2025, approximately $3.3 billion remained available for repurchases under the Share Repurchase Authorization .

Prices for crude oil and condensate, NGLs and natural gas have historically been volatile, and this volatility is expected to continue due to the many uncertainties associated with the world political and economic environment, the global supply of, and demand for, crude oil, NGLs and natural gas, the availability of other energy supplies and other factors, including tariffs, trade policies and agreements and trade barriers or other restrictions imposed by the U.S. government or other governments and the related impact of such measures on commodity and financial markets . As of February 18, 2026, the average 2026 NYMEX crude oil and natural gas prices were $63.23 per barrel and $3.84 per MMBtu, respectively, representing a decrease of 2% for crude oil and an increase of 12% for natural gas from the average NYMEX prices in 2025 .

EOG's continued initiatives to increase operating efficiencies may not be successful in offsetting any future inflationary pressures on its operating costs and capital expenditures, and there can be no assurance that such efforts will be successful and sufficient to offset the impacts of any future inflationary pressures (such as from tariffs, other trade barriers or other macroeconomic factors) on EOG's operating costs and capital expenditures, cash flows and results of operations . Further, there can be no assurance that any such pressures or factors will not impact EOG's ability to conduct its future day-to-day drilling, completion and production operations .

Risk Factors

Crude oil, NGLs and natural gas prices are volatile, and a substantial and extended decline in commodity prices can have a material and adverse effect on EOG, as lower prices reduce cash flows available for capital expenditures, dividends, and share repurchases, and can render uneconomic a portion of exploration and development projects, potentially requiring write-downs to estimated reserves and asset impairments . EOG has substantial capital requirements, and its ability to obtain needed financing on satisfactory terms may be impacted by lower commodity prices or a material decline in credit and capital markets conditions, with a reduction in cash flows potentially increasing interest rates on borrowings . The company's hedging activities may prevent it from fully benefiting from increases in commodity prices, and a majority of its forecasted production for 2026 is subject to fluctuating market prices, exposing it to declines in commodity prices to the extent not hedged . Developments and concerns related to climate change may result in the enactment of regulations, policies, and initiatives that could adversely affect demand for hydrocarbon products, increase compliance costs, and negatively impact the availability and cost of capital . EOG's operations outside the United States are subject to political, economic, and competitive risks, including increases in taxes and governmental royalties, expropriation of assets, and unilateral renegotiation of contracts .

Management Priorities

Management's message emphasizes EOG's focus on being among the highest return and lowest cost producers, committed to strong environmental performance and playing a significant role in the long-term future of energy. Key strategic priorities include maintaining a strong balance sheet with a consistently below average debt-to-total capitalization ratio as compared to those in EOG's peer group, with the debt-to-total capitalization ratio at 21% at December 31, 2025 . Management also highlights the commitment to return a minimum of 70 percent of annual net cash provided by operating activities before certain balance sheet-related changes, less total capital expenditures, to stockholders through a combination of regular dividends, special dividends and share repurchases, effective beginning with fiscal year 2024 . Forward-looking statements include the expectation that crude oil and total crude oil equivalent production are expected to increase from 2025 levels in 2026, and total anticipated 2026 capital expenditures are estimated to range from approximately $6.3 billion to $6.7 billion .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — General
  2. [2] Item 1, Business — General
  3. [3] Item 1, Business — Marketing
  4. [4] Item 1, Business — Exploration and Production
  5. [5] Item 1, Business — Exploration and Production
  6. [6] Item 1, Business — Exploration and Production
  7. [7] Item 1, Business — Exploration and Production
  8. [8] Item 1, Business — Exploration and Production
  9. [9] Item 1, Business — Exploration and Production
  10. [10] Item 1, Business — Exploration and Production
  11. [11] Item 7, MD&A — Overview — Operations
  12. [12] Item 7, MD&A — Overview — Operations
  13. [13] Item 7, MD&A — Overview — Operations
  14. [14] Item 7, MD&A — Overview — Capital Structure
  15. [15] Item 7, MD&A — Overview — Capital Structure
  16. [16] Item 7, MD&A — Overview — Capital Structure
  17. [17] Item 7, MD&A — Overview — Capital Structure
  18. [18] Item 7, MD&A — Overview — Capital Structure
  19. [19] Item 7, MD&A — Overview — Capital Structure
  20. [20] Item 7, MD&A — Overview
  21. [21] Item 7, MD&A — Results of Operations — Operating Revenues and Other
  22. [22] Item 7, MD&A — Results of Operations — Operating Revenues and Other
  23. [23] Item 7, MD&A — Capital Resources and Liquidity — Cash Flow
  24. [24] Item 7, MD&A — Overview — Capital Structure
  25. [25] Item 7, MD&A — Overview — Capital Structure
  26. [26] Item 7, MD&A — Outlook — Capital
  27. [27] Item 7, MD&A — Outlook — Operations
  28. [28] Item 1, Business — Exploration and Production
  29. [29] Item 1, Business — Exploration and Production
  30. [30] Item 1, Business — Exploration and Production
  31. [31] Item 1, Business — Exploration and Production
  32. [32] Item 1, Business — Exploration and Production
  33. [33] Item 1, Business — Exploration and Production
  34. [34] Item 1, Business — Exploration and Production
  35. [35] Item 7, MD&A — Outlook — Pricing
  36. [36] Item 7, MD&A — Outlook — Pricing
  37. [37] Item 7, MD&A — Outlook — Operations
  38. [38] Item 7, MD&A — Outlook — Cash Requirements
  39. [39] Item 7, MD&A — Outlook — Cash Requirements
  40. [40] Item 7, MD&A — Overview — Capital Structure
  41. [41] Item 7, MD&A — Overview — Capital Structure
  42. [42] Note 3, Stockholders' Equity
  43. [43] Item 7, MD&A — Recent Developments
  44. [44] Item 7, MD&A — Outlook — Pricing
  45. [45] Item 7, MD&A — Recent Developments
  46. [46] Item 7, MD&A — Recent Developments
  47. [47] Item 1A, Risk Factors — Risks Related to our Financial Condition, Results of Operations and Cash Flows
  48. [48] Item 1A, Risk Factors — Risks Related to our Financial Condition, Results of Operations and Cash Flows
  49. [49] Item 1A, Risk Factors — Risks Related to our Financial Condition, Results of Operations and Cash Flows
  50. [50] Item 1A, Risk Factors — Risks Related to Sustainability, Regulatory and Legal Matters
  51. [51] Item 1A, Risk Factors — Risks Related to Our International Operations
  52. [52] Item 7, MD&A — Overview — Capital Structure
  53. [53] Item 7, MD&A — Overview — Capital Structure
  54. [54] Item 7, MD&A — Outlook — Capital
  55. [55] Item 8, Consolidated Statements of Income and Comprehensive Income
  56. [56] Item 8, Consolidated Statements of Income and Comprehensive Income
  57. [57] Item 8, Consolidated Statements of Income and Comprehensive Income
  58. [58] Item 8, Consolidated Statements of Income and Comprehensive Income
  59. [59] Item 8, Consolidated Statements of Cash Flows
  60. [60] Item 8, Consolidated Balance Sheets
  61. [61] Item 8, Consolidated Balance Sheets
  62. [62] Item 7, MD&A — Results of Operations — Operating and Other Expenses
  63. [63] Item 7, MD&A — Results of Operations — Operating and Other Expenses
  64. [64] Note 11, Business Segment Information
  65. [65] Note 11, Business Segment Information
  66. [66] Note 11, Business Segment Information

Analysis on 6/21/2026