EOG Resources (EOG) Achieves $4.7B Free Cash Flow and Returns 100% to Shareholders

EOG Resources Inc. (NYSE:EOG) is one of the cheap energy stocks to buy right now. On February 24, EOG Resources delivered financial results for 2025, generating $4.7 billion in free cash flow and maintaining a peer-leading 19% return on capital employed. The company achieved its target of returning 100% of this free cash flow to shareholders through $2.2 billion in dividends and $2.5 billion in share repurchases. Operationally, EOG reduced average well costs by 7% through sustainable efficiency gains and expanded its proved reserves by 16% to a total of 5.5 billion barrels of oil equivalent.

The company’s 2026 outlook focuses on high-return foundational plays, with a capital plan of $6.5 billion designed to hold oil production flat to Q4 levels while delivering 13% total production growth year-over-year. A key strategic priority is the Dorado gas play, which EOG identifies as the lowest-cost gas supply in the US with a breakeven price of $1.40 per Mcf. The 2026 plan is resilient, designed to break-even at $50 WTI oil prices, and includes increased activity in the Utica and international exploration in the UAE and Bahrain.

Management addressed concerns regarding inventory quality by highlighting a 30% extension in lateral lengths and a 20% reduction in costs, which have effectively unlocked new high-return targets. Despite a planned reduction in well activity in the Delaware Basin (dropping from 390 to 300 wells in 2026), EOG Resources Inc. (NYSE:EOG) expects to maintain robust cash generation.

EOG Resources Inc. (NYSE:EOG), together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins in the US, the Republic of Trinidad and Tobago, and internationally.

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