EOG Resources Q4 Earnings Beat Estimates on Higher Production Volumes

EOG Resources EOG reported fourth-quarter 2025 adjusted earnings per share of $2.27, which beat the Zacks Consensus Estimate of $2.20. The bottom line decreased from the year-ago quarter’s $2.74.

Total quarterly revenues of $5.64 billion missed the Zacks Consensus Estimate of $5.8 billion. The top line increased from $5.59 billion in the prior-year quarter.

The better-than-expected quarterly earnings were driven by higher oil-equivalent production volumes. A decline in the average realized price for crude oil and condensates partially offset the positives.

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 28% year over year to 128.7 million barrels of oil equivalent (MMBoe), driven by higher crude oil and natural gas volumes from its multi-basin portfolio in the United States. The figure surpassed our estimate of 125.6 MMBoe.

Crude oil and condensate production totaled 546.1 thousand barrels per day (MBbls/d), up 10.4% from the year-ago quarter’s level. The figure beat our estimate of 543.6 MBbls/d.

NGL volumes increased 35.5% year over year to 342.1 MBbls/d. The figure beat our estimate of 318.3 MBbls/d.

Natural gas volume rose to 3,065 million cubic feet per day (MMcf/d) from the year-ago quarter’s 2,092 MMcf/d. The reported figure beat our estimate of 3,020.5 MMcf/d.

The average price realization for the company’s crude oil and condensates was $59.54 per barrel compared with $71.66 in the prior-year quarter.

Natural gas was sold at $3.00 per Mcf, reflecting a year-over-year improvement of 16.7%.

Operating Cost of EOG

In the fourth quarter, lease and well expenses increased to $447 million from $394 million a year ago.

The company reported gathering, processing and transportation costs of $652 million, higher than the year-ago quarter’s $441 million. Exploration costs declined to $50 million from $52 million in the year-ago quarter. Total operating expenses were $4.7 billion, higher than $3.99 billion recorded a year ago.

Liquidity Position & Capital Expenditure of EOG

As of Dec. 31, 2025, EOG Resources had cash and cash equivalents worth $3.4 billion and long-term debt of $7.9 billion. The current portion of the long-term debt totaled $27 million.

In the reported quarter, the company generated $978 million in free cash flow. Capital expenditure amounted to $1.64 billion.

2026 Guidance

For the first quarter of 2026, EOG expects total production of 1,351.5 to 1,396.5 MBoe/d. For full-year 2026, the company has projected total production between 1,373.1 Mboe/d and 1,418.2 Mboe/d. EOG has outlined a capital plan of $6.5 billion for the year.

EOG’s Zacks Rank and Key Picks

EOG currently has a Zacks Rank #4 (Sell).

Some top-ranked stocks from the energy sector are Archrock Inc. AROC, Oceaneering International OII and W&T Offshore WTI. While Archrock sports a Zacks Rank #1 (Strong Buy), Oceaneering and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.

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

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