EOG
EnergyEOG Resources
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Financials
XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.2B | $7.1B | $4.8B | $6.1B | $10.1B | $11.7B | $14.5B | $18.0B | $8.8B | $7.7B | $11.2B | $17.3B | $17.4B | $11.0B | $18.6B | $25.7B | $24.2B | $23.7B | $22.6B | -4.5% |
| Operating Income | $1.6B | $3.8B | $970.8M | $523.3M | $2.1B | $1.5B | $3.7B | $5.2B | -$6.7B | -$1.2B | $926.4M | $4.5B | $3.7B | -$544.0M | $6.1B | $10.0B | $9.6B | $8.1B | $6.4B | -21.0% |
| Operating Margin | 38.9% | 52.9% | 20.3% | 8.6% | 20.9% | 12.7% | 25.4% | 29.1% | -76.3% | -16.0% | 8.3% | 25.9% | 21.3% | -4.9% | 32.7% | 38.8% | 39.7% | 34.1% | 28.2% | -5.9pp |
| Net Income | $1.1B | $2.4B | $546.6M | $160.7M | $1.1B | $570.3M | $2.2B | $2.9B | -$4.5B | -$1.1B | $2.6B | $3.4B | $2.7B | -$604.6M | $4.7B | $7.8B | $7.6B | $6.4B | $5.0B | -22.2% |
| Net Margin | 25.7% | 34.2% | 11.4% | 2.6% | 10.8% | 4.9% | 15.2% | 16.2% | -51.7% | -14.3% | 23.0% | 19.8% | 15.7% | -5.5% | 25.0% | 30.2% | 31.4% | 27.0% | 22.0% | -5.0pp |
| Free Cash Flow | $2.6B | $4.2B | $2.6B | $2.3B | $3.9B | $4.6B | $7.0B | $7.9B | $3.3B | $2.3B | $4.1B | $7.5B | $7.9B | $4.8B | $8.6B | $10.7B | $10.5B | $11.1B | $9.6B | -14.0% |
| FCF Margin | 61.9% | 58.3% | 54.2% | 38.3% | 38.7% | 39.5% | 48.1% | 43.9% | 37.8% | 29.6% | 36.5% | 43.6% | 45.4% | 43.4% | 46.0% | 41.7% | 43.6% | 46.9% | 42.3% | -4.7pp |
| EPS (Diluted) | $4.37 | $9.72 | $2.17 | $0.63 | $4.10 | $2.11 | $8.04 | $5.32 | $-8.29 | $-1.98 | $4.46 | $5.89 | $4.71 | $-1.04 | $7.99 | $13.22 | $13.00 | $11.25 | $9.12 | -18.9% |
1. THE BIG PICTURE
EOG Resources is effectively a high-tech manufacturing operation disguised as an oil company, using a decentralized structure and self-sourced materials to maintain a cost advantage that larger rivals struggle to match. While its revenue growth has dipped recently, it keeps more free cash flow from every dollar of revenue than any of its major peers, allowing it to fund expensive drilling programs and high shareholder returns simultaneously.
2. WHERE THE RISKS HIT HARDEST
EOG’s "low-cost producer" strategy is threatened by commodity price volatility because its substantial capital requirements for exploration and development are largely fixed, while its revenues are at the mercy of global markets (10-K Item 1). If prices drop significantly, the cash flows intended for dividends and buybacks—which currently offer a combined 7% yield—could be diverted to cover essential drilling costs or debt service. Furthermore, its reliance on "self-sourced materials" to control costs is vulnerable to the "inflationary pressures" management cited regarding tariffs and trade barriers, which could erode the very margin advantage that defines its competitive position (10-Q).
3. WHAT THE NUMBERS SAY TOGETHER
The metrics reveal a company prioritizing efficiency over raw scale. Despite a 2% decline in quarterly revenue and a 4.5% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue contraction—lagging behind peers like FANG (+35.8%) and EQT (+63.9%)—EOG leads the group with a 45.4% free cash flow margin (XBRL). This suggests that even as prices for crude oil fell 14%, EOG’s ability to increase production volumes by 8% and natural gas volumes by 39% mitigated the top-line hit (10-Q). The $1,471 million in quarterly net income supports a robust capital allocation strategy involving a 3.1% dividend and 3.9% buyback yield. The revenue divergence is structural: EOG focuses on "internally generated prospects" rather than the aggressive M&AM&AMergers & Acquisitions — the buying, selling, or combining of companies-driven growth seen in its faster-growing peers, though the August 2025 Encino acquisition marks a shift toward integration-led optimization.
4. IS IT WORTH IT AT THIS PRICE?
At 11.5x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, EOG trades at a modest discount to the peer median of 14.1x. This pricing appears conservative given that EOG maintains the highest FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin (45.4%) and the second-highest net margin (25.9%) in its peer group (XBRL). At this multiple, the market is pricing in a long-term growth rate of just 0.5% (CAPM analysis). This is a low hurdle for a company that just expanded its footprint through the Encino acquisition and is seeing double-digit volume growth in gas and NGLs. The 19% discount to the peer median likely reflects investor caution over EOG's negative revenue growth, but the underlying cash generation suggests the discount is unjustified if production volumes continue to offset price weakness.
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if production volumes from the newly acquired Encino assets exceed integration targets, proving EOG can grow through acquisition without losing its low-cost edge.
- Cautious if capital expenditures rise significantly due to the "inflationary pressures" management flagged, particularly if this coincides with a sustained drop in crude oil prices.
- Cautious if reserve estimates are revised downward, as EOG Resources notes these rely on complex technical interpretations that could materially impact its financial position (10-K Item 1A).
6. BOTTOM LINE
Structural Advantage: A decentralized, self-sufficient operational model that produces the industry's highest free cash flow margins. Bottom Line: EOG is an elite operator priced as a laggard, offering a high-yield entry point for investors who believe its volume growth can outrun commodity price swings.
1. Top 5 Material Risks
- Commodity Price Volatility: Prices for crude oil, NGLs, and natural gas fluctuate widely due to global supply/demand, geopolitical factors, and OPEC actions. Extended price declines can render projects uneconomic, leading to reserve write-downs and asset impairments.
- Capital Access and Financing: EOG Resources requires substantial capital for exploration, development, and infrastructure. Weakness in financial markets or lower commodity prices can increase interest rates or restrict access to debt and equity markets, hindering the ability to fund operations.
- Operational Hazards: Exploration and production involve high-risk activities such as well blowouts, pipeline ruptures, and fires. These events can cause loss of life, environmental damage, and regulatory penalties that may exceed insurance coverage.
- Reserve Estimation Uncertainty: The process of estimating reserves is complex and relies on interpretations of technical data and economic assumptions. Significant inaccuracies or downward revisions in these estimates can materially affect EOG Resources's financial position.
- Infrastructure Dependency: The ability to sell production depends on third-party gathering, processing, and transportation facilities. If these facilities are unavailable due to mechanical failure, market conditions, or lack of capacity, EOG Resources may be unable to deliver its products to market.
2. Company-Specific Risks
- Efficiency Program Limitations: EOG Resources’ initiatives to improve performance—such as its downhole drilling motor program, extended laterals, and self-sourced sand program—may fail to offset future inflationary pressures on operating costs.
- Water Availability: Operations are heavily dependent on water for drilling and completions. Droughts or local restrictions on water use can force EOG Resources to source water from more distant locations, significantly increasing operating costs.
- Acquisition Integration: EOG Resources periodically acquires properties, but these transactions carry risks related to undisclosed environmental liabilities, title defects, and the potential failure to achieve anticipated synergies or integrate operations effectively.
- Cybersecurity and AI Threats: EOG Resources relies on complex IT systems for reserve estimation and financial recording. The emergence of generative AI allows malicious actors to create more sophisticated attacks, which could disrupt production or lead to the unauthorized release of proprietary strategic data.
3. Regulatory/Legal Risks
- Climate Change Disclosure Mandates: The SEC’s finalized climate-related disclosure rules (currently stayed) and California’s broader mandates could increase compliance costs and require significant expansion of disclosures in SEC filings.
- Greenhouse Gas (GHG) Regulation: International agreements like the Paris Agreement and the UAE Consensus, alongside domestic EPA and Bureau of Land Management regulations, may force EOG Resources to install new emission controls, purchase emissions credits, or pay carbon taxes.
- Hydraulic Fracturing Restrictions: While primarily regulated at the state and local level, federal proposals to regulate hydraulic fracturing could lead to operational delays or prevent the development of formations that are not economically viable without the technique.
- Tax Law Changes: Proposed legislation, such as the elimination of the immediate deduction for intangible drilling and development costs or the implementation of a global minimum tax (GMT), could materially increase EOG Resources's tax burden.
4. Financial Impact Map
Commodity Price Volatility → Cash Flows from Operating Activities → Determines funds available for capital expenditures, dividends, and share repurchases. Capital Access and Financing → Interest Expense → Increased interest rates from lenders and commercial paper investors would decrease net cash flows available for reinvestment. Operational Hazards → Results of Operations → Uninsured losses or liabilities in excess of insurance coverage reduce funds available for operations. Reserve Estimation Uncertainty → Net Book Value of Properties → Significant downward revisions require impairment expenses if expected future cash flows fall below net book values. Infrastructure Dependency → Revenue → Inability to transport or market production due to facility unavailability results in a loss of revenues.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Feb 2026 | — |
| 10-K | Feb 2026 | Dec 2025 |
| 10-Q | Nov 2025 | Sep 2025 |
| 14A | Mar 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
EOG Resources Q1 Net Income $2.0B, Raises Full-Year Oil and NGL Production Guidance
- ▸Q1 net income $2.0B, or $3.70 per share
- ▸Generated $1.5B in free cash flow during Q1
- ▸Returned $950M to shareholders via $544M dividends and $402M share repurchases
- ▸Declared regular quarterly dividend of $1.02 per share
- ▸Increased full-year oil and NGL production guidance via capital reallocation
EOG Resources issues 2026 production guidance, analysts raise price targets on oil outlook
- ▸Q1 2026 crude oil guidance 544.0–549.0 MBod
- ▸FY 2026 total crude oil equivalent guidance 1,373.1–1,418.2 MBoed
- ▸Q4 2025 total crude oil equivalent production 1,399.0 MBoed
- ▸Repurchased 6.3M shares for $675M in Q4 2025
- ▸Multiple analysts raised price targets citing higher oil price assumptions
EOG Q4 adjusted EPS $2.27 beats estimates, revenue $5.64B misses expectations
- ▸Q4 adjusted EPS $2.27, beating consensus estimate of $2.20
- ▸Q4 revenue $5.64B, missing consensus estimate of $5.8B
- ▸Total production volumes +28% YoY to 128.7 MMBoe
- ▸Crude oil and condensate production +10.4% YoY to 546.1 MBbls/d
- ▸Average crude oil price realization fell to $59.54/bbl from $71.66/bbl
Oil prices top $90 per barrel, boosting earnings outlook for North American producers
- ▸Crude oil prices surpass $90 per barrel threshold
- ▸EOG Resources, FANG, and MGY outlooks improve amid price surge
- ▸Increased investor interest in North American oil and gas producers
- ▸Sector-wide earnings potential rising with commodity price strength
EOG Resources Q4 production hits 1.4M boepd following $5.6B Encino acquisition
- ▸Q4 production reached 1.40 million barrels of oil equivalent per day
- ▸Encino Acquisition Partners deal integration remains a primary operational focus
- ▸Projected 2028 revenue of $27.1 billion and earnings of $6.6 billion
- ▸Stronger natural gas prices provided tailwinds amid Middle East geopolitical tensions
- ▸Fair value estimates for EOG range widely from $101 to $285 per share
EOG Q4 EPS $2.27 beats $2.19 estimate; production rises to 1.40M boepd
- ▸Q4 adjusted EPS $2.27, exceeding analyst consensus of $2.19
- ▸Q4 production 1.40 million boepd, up from 1.09 million boepd YoY
- ▸2026 full-year production guidance set at 1.37M–1.42M boepd
- ▸2026 annual capital expenditure forecast range of $6.3B–$6.7B
- ▸Q1 2026 production guidance range of 1.35M–1.40M boepd