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EOG Resources, Inc. EOG reported first-quarter 2025 adjusted earnings per share of $2.87, which beat the Zacks Consensus Estimate of $2.74. The earnings also increased from the year-ago quarter’s $2.82. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total quarterly revenues of $5.67 billion missed the Zacks Consensus Estimate of $5.83 billion. The top line declined from $6.12 billion in the prior-year quarter.
The strong quarterly earnings were driven by higher oil-equivalent production volumes and lower total operating expenses.
EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote
In the quarter under review, total volumes increased 4.8% year over year to 98.1 million barrels of oil equivalent (MMBoe) on higher contributions from its multi-basin portfolio. This was above the mid-point of the company’s first-quarter 2025 guidance of 96.9 MMBoe. Our estimate for the same was pinned at 97.4 MMBoe.
Crude oil and condensate production totaled 502.1 thousand barrels per day (MBbls/d), up almost 3% from the year-ago quarter’s level. The figure beat our estimate of 497.3 MBbls/d.
NGL volumes increased 4.3% year over year to 241.7 MBbls/d. The figure lagged our estimate of 243.2 MBbls/d.
Natural gas volume rose to 2,080 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,858 MMcf/d. The reported figure also beat our estimate of 2,047.9 MMcf/d.
The average price realization for the company’s crude oil and condensates decreased 7.1% year over year to $72.87 per barrel.
Natural gas was sold at $3.41 per Mcf, reflecting a year-over-year improvement of almost 51%. Quarterly NGL prices increased to $26.29 per barrel from $24.32 in the previous year.
In the first quarter, lease and well expenses increased to $401 million from $396 million a year ago.
The company reported gathering, processing and transportation costs of $440 million, higher than the year-ago quarter’s $413 million. The figure was lower than our estimate of $466 million.
Exploration costs decreased from $45 million a year ago to $41 million. As such, total operating expenses were $3.81 billion, lower than $3.85 billion recorded a year ago.
As of March 31, 2025, EOG Resources had cash and cash equivalents worth $6.6 billion and long-term debt of $3.5 billion. The current portion of the long-term debt totaled $1.3 billion.
In the reported quarter, the company generated $1.33 billion in free cash flow. Capital expenditure amounted to $1.48 billion.
For 2025, EOG expects total production of 1,099.5-1,136.5 MBoe/d. It also anticipates a production of 1,096.2-1,133.3 MBoe/d for the second quarter.
The full-year 2025 capital expenditure is expected to be in the range of $5.8-$6.2 billion, with $1.5-$1.6 billion allocated for the second quarter of the year.
Currently, EOG carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and Enterprise Products Partners L.P. EPD. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and Enterprise Products 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. AROC provides natural gas contract compression services and generates stable fee-based revenues.
Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.
Kinder Morgan is a leading midstream player in North America with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. KMI operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030.
Kinder Morgan’s earnings missed estimates in three of the trailing four quarters and met once, delivering an average negative surprise of 3.33%.
Enterprise generates stable fee-based revenues from its vast network of oil and gas pipelines spanning 50,000 miles, connecting prolific U.S. shale plays. Notably, the acquisition of Pinon Midstream, which aims to provide services in the prolific Permian Basin, is expected to drive the partnership’s cash flows. This move enhances its NGL value chain and addresses regional infrastructure constraints, with strong customer demand expected to boost revenues.
EPD’s earnings beat estimates in one of the trailing four quarters and missed in the other three, delivering an average negative surprise of 0.77%.
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This article originally published on Zacks Investment Research (zacks.com).
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