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EOG RESOURCES INC (EOG)·Q1 2025 Earnings Summary

Executive Summary

  • Adjusted EPS of $2.87 beat Wall Street consensus $2.77; GAAP diluted EPS was $2.65. Total operating revenues were $5.67B; free cash flow was $1.33B and cash operating costs were $10.31/Boe . Consensus EPS and revenue figures from S&P Global indicate an EPS beat and a revenue outcome close to consensus depending on revenue definition (see Estimates Context) [*].
  • Management proactively cut 2025 capital by $200M to a $6.0B midpoint, maintaining oil production at Q1 levels and targeting 2% YoY oil growth and 5% total growth; FY25 current tax expense midpoint was reduced to $1.255B .
  • Operational catalysts: Dorado gas productivity improved and Janus gas processing plant was commissioned; TLIP capacity gives access to premium-priced Southeast markets, supporting superior gas realizations .
  • Strategic catalysts: Trinidad shallow-water oil discovery (“Barrel”) announced and Bahrain unconventional concession plans for H2’25 drilling; Eagle Ford bolt-on of ~30k net acres adds immediately competitive inventory .

What Went Well and What Went Wrong

What Went Well

  • “EOG is off to an exceptional start in 2025… we earned $1.6B in adjusted net income and generated $1.3B in free cash flow” (CEO) . Adjusted net income: $1.586B; FCF: $1.329B .
  • Dorado gas: “lowest cost dry gas play in North America” with breakeven ~$1.40/Mcf; drill feet/day up 15%, productivity up 10% per foot .
  • Infrastructure and marketing: Janus processing plant online; TLIP provides 364 MMcfd capacity to premium Southeast gas markets, supporting realizations above peers .

What Went Wrong

  • Hedging drag: mark-to-market derivative losses reduced GAAP EPS vs Q4; after-tax impact contributed a $0.18/share headwind QoQ .
  • NGL volumes fell QoQ to 241.7 MBbld from 252.5 MBbld; total equivalent volumes dipped modestly QoQ to 1,090.4 MBoed from 1,095.7 MBoed .
  • GP&T costs were slightly higher QoQ due to gas transportation and fuel costs, partly offset by lower compression-related costs vs guidance midpoint .

Financial Results

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Total Operating Revenues and Other ($USD Billions)$6.123 $5.965 $5.585 $5.669
GAAP Diluted EPS ($)$3.10 $2.95 $2.23 $2.65
Adjusted EPS (Non-GAAP) ($)$2.82 $2.89 $2.74 $2.87
Operating Income ($USD Billions)$2.271 $2.089 $1.592 $1.859
Composite Avg Operating Income per Boe ($)$24.26 $21.10 $15.79 $18.95
Composite Margin per Boe incl. Exploration (GAAP) ($)$20.24 $19.98 $15.88 $20.09
Cash Operating Costs ($/Boe)$10.37 $10.15 $10.15 $10.31
Free Cash Flow ($USD Billions)$1.225 $1.491 $1.277 $1.329

Segment/Commodity Revenue Mix (Wellhead), $USD Millions:

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Crude Oil & Condensate Revenue$3,480 $3,488 $3,261 $3,293
NGL Revenue$513 $524 $554 $572
Natural Gas Revenue$382 $372 $494 $637

Volumes & Operating KPIs:

MetricQ1 2024Q3 2024Q4 2024Q1 2025
Oil (MBod, total)487.4 493.0 494.6 502.1
NGL (MBbld)231.7 254.3 252.5 241.7
Gas (MMcfd, total)1,858 1,970 2,092 2,080
Total Equivalent (MBoed)1,028.8 1,075.7 1,095.7 1,090.4
CFO before WC ($MM)2,928 2,988 2,635 2,813
Total Capex (Non-GAAP) ($MM)1,703 1,497 1,358 1,484

Guidance Changes

MetricPeriodPrevious Guidance (Mid)Current Guidance (Mid)Change
Capital Expenditures (Non-GAAP) ($B)FY 2025$6.200 $6.000 Lowered ($200M)
Current Tax Expense ($MM)FY 2025$1,550 $1,255 Lowered
Oil Volumes (Total MBod)FY 2025504.6 502.5 Lowered
NGL Volumes (MBbld)FY 2025255.0 253.0 Lowered
Gas Volumes (Total MMcfd)FY 20252,175 2,175 Maintained
Cash Operating Costs (GAAP, $/Boe)FY 202510.50 10.35 Lowered
G&A (GAAP, $/Boe)FY 20251.80 1.75 Lowered
LOE ($/Boe)FY 20254.15 4.10 Lowered
GP&T ($/Boe)FY 20254.55 4.50 Lowered
DD&A ($/Boe)FY 202510.40 10.30 Lowered
Effective Tax Rate (%)FY 202522.5% 22.5% Maintained
Dividend per share ($)Next payment$0.975 (declared) $0.975 (declared; payable July 31, 2025) Maintained

Selected Q2 2025 guidance midpoints (execution setup): Oil 502.1 MBod; NGL 251.0 MBbld; Gas 2,170 MMcfd; MBoed 1,114.8; Cash Op Costs $10.45/Boe; DD&A $10.30/Boe; Effective tax rate 22.5% .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 & Q4 2024)Current Period (Q1 2025)Trend
Capital discipline & cash returnsPlan for 2025 growth with steady Delaware activity; raised dividend; buybacks ongoing $200M CapEx cut to protect FCF; ability to return >100% of near-term FCF; ~$788M buybacks in Q1 More defensive CapEx, sustained returns
Tariffs/macroGeneral macro caution; pricing variability Near-term demand uncertainty from tariff discussions cited; expect fundamentals to reassert Elevated macro watch
Natural gas outlook & DoradoBuilding LNG linkages; TLIP plans; gas volumes rising 2025 inflection for NA gas demand (LNG/power); Dorado breakeven ~$1.40/Mcf; productivity +10%/ft Stronger long-term gas narrative
Infrastructure & marketingVerde pipeline; optimization of capital structure Janus plant online; TLIP service start (364 MMcfd reserved) supporting premium realizations Margin expansion via midstream/marketing
Eagle Ford strategyLonger laterals; cost reductions Testing 4+ mile laterals; target $515/ft direct well cost; strategic ~30k acre bolt-on Efficiency gains; inventory depth
International (Trinidad/Bahrain/UAE)Announced Bahrain participation Trinidad oil discovery (“Barrel”) progressing to FID; Bahrain unconventional tight gas sand drilling H2’25; UAE unconventional concession announced May 16 Growing international optionality
SustainabilityEmissions targets achieved for 2025 New targets: -25% GHG intensity by 2030 vs 2019; maintain near-zero methane (≤0.2%) 2025–2030 Strengthened ESG commitments
Service costs/supply chainInflation management; GP&T trends Expect flat high-spec service pricing; flexibility to capture potential rate declines; no 2025 tariff cost impact Cost vigilance, secured supply

Management Commentary

  • “EOG is off to an exceptional start in 2025… we earned $1.6 billion in adjusted net income and generated $1.3 billion in free cash flow” (Ezra Yacob, CEO) .
  • “We have optimized our 2025 plan and are reducing capital investments by $200 million… we now expect to generate $4 billion in free cash flow at $65 WTI and $3.75 Henry Hub” (Ann Janssen, CFO) .
  • “Dorado is the lowest cost dry gas play in North America… breakeven approximately $1.40 per Mcf” (Jeff Leitzell, COO) .
  • “The Barrel well… encountered 125+ feet of high-quality oil-bearing net pay… progressing to FID” (COO) .
  • “Our marketing team and projects like TLIP allow EOG to deliver superior gas realizations versus peers” (COO) .

Q&A Highlights

  • CapEx reduction rationale: Protect shareholder returns and FCF amid potential near-term demand impacts from tariffs; not a deterioration in reinvestment economics; flexibility to adjust legacy assets first if needed .
  • Cash return stance: Ability to return >100% of near-term FCF via regular dividend and opportunistic buybacks; active repurchases in April post quarter .
  • Gas allocation: Bullish multi-year gas demand (LNG/power); maintain pace in Dorado without outrunning learnings or takeaway; breakeven ~$1.40/Mcf .
  • Service costs/tariffs: Expect flat high-spec pricing in 2025; no tariff impact; built contract flexibility to step activity up/down; supply chain prepared .
  • Eagle Ford bolt-on specifics: ~30k net acres; high NRI; adds 123 long-lateral locations; immediate competition for capital with minimal PDP .

Estimates Context

Consensus vs actual (S&P Global; “Primary EPS” = reported EPS; revenue/EBITDA per S&P definitions)

MetricQ1 2024Q4 2024Q1 2025
EPS Consensus Mean* ($)2.70162.56582.7719
EPS Actual ($)2.82 2.74 2.87
Revenue Consensus Mean* ($MM)5,626.75,945.05,851.0
Revenue Actual ($MM)5,860.0*5,673.0*5,861.0*
EBITDA Consensus Mean* ($MM)3,165.33,066.63,154.9
EBITDA Actual* ($MM)3,338.02,910.02,917.0

Values marked with * retrieved from S&P Global.

Implications:

  • EPS: Q1 2025 beat consensus ($2.87 vs $2.77); Q4 2024 also beat ($2.74 vs $2.57) [*].
  • Revenue: Q1 2025 near/above consensus on S&P-defined revenue; note company-reported “Total Operating Revenues and Other” was $5.669B (definition differences can drive variances) [*].
  • EBITDA: Q1 2025 slightly below consensus ($2.917B vs $3.155B), reflecting hedge impacts and mix; Q4 2024 slightly below as well [*].

Key Takeaways for Investors

  • EOG delivered an EPS beat, strong FCF, and modest margin expansion QoQ; non-GAAP margins per Boe rose to $20.09 including exploration costs, back near YoY levels .
  • Proactive $200M CapEx cut should enhance FY25 FCF and ROCE while holding oil volumes flat at Q1 levels; FY25 cash cost midpoints nudged lower, signaling ongoing efficiency .
  • Gas optionality is strengthening: Dorado productivity and cost structure plus TLIP/marketing access position EOG to benefit from a multi-year demand inflection (LNG/power) .
  • International upside optionality is building with Trinidad oil discovery and Bahrain/UAE concessions without altering the 2025 capital plan .
  • Shareholder returns remain aggressive: sustainable $0.975 quarterly dividend and ongoing buybacks (~$788M in Q1, >100% near-term FCF return capacity) .
  • Hedge losses were a notable GAAP EPS headwind QoQ; adjusted EPS better reflects underlying operations and pricing realizations .
  • Watch catalysts: clarity on tariff regime, execution of Eagle Ford 4+ mile laterals and Janus/TLIP throughput, Dorado activity cadence, Trinidad Barrel FID .
Note: S&P Global consensus/actuals are marked with * in the Estimates table and used for “vs estimates” comparisons as required. Company-reported revenue (“Total Operating Revenues and Other”) is $5.669B; S&P revenue definitions may differ.

Citations:

  • Q1 2025 8-K and press release, including financials, volumes, margins, guidance:
  • Q4 2024 press release:
  • Q3 2024 press release:
  • Earnings call transcript:
  • Bahrain/UAE concession press release: