EOG Q2 Earnings Beat Estimates on Higher Oil Equivalent Production

EOG Resources, Inc. EOG reported second-quarter 2025 adjusted earnings per share of $2.32, which beat the Zacks Consensus Estimate of $2.21. The bottom line decreased from the year-ago quarter’s $3.16.

Total quarterly revenues of $5.48 billion beat the Zacks Consensus Estimate of $5.46 billion. The top line declined from $6.03 billion in the prior-year quarter.

The better-than-expected quarterly results were driven by higher oil-equivalent production volumes. This was partially offset by lower price realization.

EOG Resources, Inc. Price, Consensus and EPS Surprise

EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote

EOG’s Operational Performance

In the quarter under review, total volumes increased 8.3% year over year to 103.2 million barrels of oil equivalent (MMBoe), driven by higher contributions from its multi-basin portfolio. This was above the mid-point (101.4 MMBoe) of the company’s second-quarter 2025 guidance. Our estimate for the same was pinned at 101.3 MMBoe.

Crude oil and condensate production totaled 504.2 thousand barrels per day (MBbls/d), up almost 2.8% from the year-ago quarter’s level. The figure beat our estimate of 502.7 MBbls/d.

NGL volumes increased 5.5% year over year to 258.4 MBbls/d. The figure beat our estimate of 247.4 MBbls/d.

Natural gas volume rose to 2,229 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,872 MMcf/d. The reported figure also beat our estimate of 2,178.1 MMcf/d.

The average price realization for the company’s crude oil and condensates decreased 21.6% year over year to $64.82 per barrel.

Natural gas was sold at $2.96 per Mcf, reflecting a year-over-year improvement of almost 66%. Quarterly NGL prices decreased to $22.70 per barrel from $23.11 in the previous year.

Operating Cost of EOG

In the second quarter, lease and well expenses increased to $396 million from $390 million a year ago.

The company reported gathering, processing and transportation costs of $455 million, higher than the year-ago quarter’s $423 million. The figure was higher than our estimate of $449 million.

Exploration costs increased from $34 million a year ago to $74 million. As such, total operating expenses were $3.73 billion, lower than $3.89 billion recorded a year ago.

Liquidity Position & Capital Expenditure of EOG

As of June 30, 2025, EOG Resources had cash and cash equivalents worth $5.2 billion and long-term debt of $3.5 billion. The current portion of the long-term debt totaled $778 million.

In the reported quarter, the company generated $973 million in free cash flow. Capital expenditure amounted to $1.52 billion.

Guidance

For 2025, EOG expects total production of 1,206.8-1,241.1 MBoe/d. It also anticipates a production of 1,273.2-1,313.3 MBoe/d for the third quarter.

The full-year 2025 capital expenditure is expected to be in the range of $6.2-$6.4 billion, with $1.6-$1.7 billion allocated for the third quarter of the year.

EOG’s Zacks Rank and Key Picks

Currently, EOG carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM, Delek Logistics Partners, LP DKL and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.

Delek Logistics owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks.

Delek Logistics’ earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 79.8%. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 30.43% year-over-year growth.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.

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This article originally published on Zacks Investment Research (zacks.com).

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