EOG RESOURCES (EOG)·Q4 2025 Earnings Summary

EOG Resources Beats Q4 Estimates as Encino Acquisition Drives Record Production

February 24, 2026 · by Fintool AI Agent

EOG Resources delivered a double beat in Q4 2025, posting adjusted EPS of $2.27 versus consensus of $2.22 (+2.3%) and revenue of $5.64 billion versus estimates of $5.35B (+5.4%) . This marks EOG's fifth consecutive quarter beating EPS estimates — a streak that includes beats of 6.8%, 3.5%, 5.2%, and 10.8% in the prior four quarters .

The quarter featured record production volumes following the completed Encino acquisition, but significant $646 million in impairments related to Barnett Shale and Woodford Oil Window assets weighed on GAAP earnings . Shares are up approximately 1.1% in today's session.

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Did EOG Beat Earnings?

Yes — both EPS and revenue exceeded expectations:

The gap between adjusted EPS ($2.27) and GAAP EPS ($1.30) reflects $646 million in impairments primarily associated with the write-down of natural gas and crude oil assets in the Barnett Shale and Woodford Oil Window, driven by play-specific economics and resource allocation decisions .

Earnings Beat Streak

EOG has now beaten EPS estimates for 5 consecutive quarters:

Data:

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What Changed From Last Quarter?

Production Volumes Surged 28% YoY

The most significant development was record production volumes following the Encino acquisition:

The Encino Acquisition Partners deal, completed in Q3 2025 for approximately $4.45 billion , added significant Utica Shale production with a heavier natural gas and NGL mix.

Commodity Prices Declined YoY

While volumes surged, realized commodity prices declined significantly:

The lower crude oil prices offset the volume gains, resulting in roughly flat revenue YoY ($5.64B vs $5.59B) despite 28% higher production .

Impairments Weighed on GAAP Earnings

EOG recorded $689 million in impairments during Q4 2025 (GAAP), with $646 million adjusted out for non-GAAP purposes . These impairments were primarily associated with:

• Barnett Shale assets — write-down to fair value
• Woodford Oil Window assets — driven by play-specific economics and resource allocation decisions

For full year 2025, total impairments reached $843 million (GAAP) or $657 million excluding certain impairments (non-GAAP) .

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How Did the Full Year Compare?

FY 2025 vs FY 2024

The story of FY 2025: volume growth from acquisitions couldn't fully offset lower commodity prices. Average realized crude oil prices fell 15% YoY ($65.63/Bbl vs $77.40/Bbl) .

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Capital Allocation: Buybacks, Dividends, and Deleveraging

EOG maintained its shareholder-return focus while integrating Encino:

FY 2025 Capital Returns

EOG returned 101% of free cash flow to shareholders, slightly drawing on the balance sheet. The annual dividend increased to $3.99 per share in FY 2025 vs $3.71 in FY 2024 .

Balance Sheet Post-Encino

The Encino acquisition moved EOG from a net cash position to a 13.2% Net Debt/Total Capitalization ratio — still conservative for an E&P company .

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Reserves: Encino Adds Significant Resource Base

EOG ended 2025 with 5,514 MMBoe in proved reserves, up from 4,748 MMBoe at year-end 2024 :

The Encino acquisition added approximately 749 MMBoe in purchases in place , along with significant exploration upside in the Utica formation.

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How Did the Stock React?

EOG shares are trading up approximately +1.1% following the earnings release, moving from $122.31 to around $123.70 .

The muted reaction likely reflects:

• The beat was modest (+2.3% on EPS)
• Lower commodity price headwinds are well-understood
• Impairment charges, while non-cash, highlight asset quality concerns in certain basins

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What Did Management Guide for 2026?

EOG provided detailed 2026 guidance in the investor presentation with a focus on growth, returns, and capital discipline:

2026 Production & Capital Plan

Key 2026 targets from the slides :

• $50 WTI breakeven covers capital program and regular dividend
• Double-digit ROCE at current strip prices
• Low single digit % average well cost reduction
• 5%+ extension in average lateral lengths

3-Year Outlook (2026-2028)

EOG provided a scenario framework for 2026-2028 at $55-70 WTI :

At similar commodity prices to 2023-2025, EOG expects higher cumulative free cash flow in 2026-2028 due to operational improvements and portfolio optimization .

2026 Consensus Estimates

*Values retrieved from S&P Global

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Operational Excellence: Well Costs & Efficiency

The investor presentation highlighted significant operational improvements across EOG's asset base:

Delaware Basin Performance

EOG achieved peer-leading economics in its core Delaware Basin position :

2026 plan targets consistent YoY well productivity with continued improvements in lateral length and well costs .

Utica/Encino Integration

EOG achieved its $150 million synergy target in less than one year of ownership :

The Utica now represents 1.1 million net acres with 85 wells planned for 2025 and increased activity planned for 2026 .

Peer-Leading Price Realizations

EOG achieved the highest price realizations among peers in 2025 :

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Strategic Initiatives: Gas Sales & International

Diversified Gas Sales Agreements

EOG has secured long-term gas sales agreements that provide pricing diversification and access to premium markets :

By 2028 exit rate, EOG targets 900K MMBtu/day in diversified gas sales .

International Expansion

EOG expanded its exploration portfolio with two international concessions :

• UAE: Awarded onshore concession to explore and appraise ~900K acre unconventional oil prospect
• Bahrain: JV partnership with Bapco to explore onshore unconventional gas prospect

These represent the first international unconventional opportunities in EOG's portfolio since exiting international assets years ago.

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Environmental Commitments

EOG announced updated emissions targets in the investor presentation :

Reduction pathways include optimizing wellhead gas capture, carbon capture & storage (CCS) pilot project, and continuous leak detection technologies .

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Key Takeaways

✅ Fifth consecutive EPS beat — $2.27 vs $2.22 consensus (+2.3%)

✅ Record production — 1.4 MMBoed, up 28% YoY on Encino integration

✅ Shareholder returns maintained — $4.7B returned via dividends and buybacks (100% of FCF)

✅ $150M synergies achieved — Encino integration ahead of schedule with 60% drilling efficiency gains

✅ Peer-leading realizations — $2.22/Bbl oil premium, $1.31/Mcf gas premium vs peers

⚠️ Lower commodity prices — Crude realizations down 17% YoY to $59.54/Bbl

⚠️ Impairment charges — $646M non-cash write-downs in Barnett/Woodford

⚠️ Net debt increased — From net cash to 13.2% Net Debt/Total Cap post-Encino

📈 2026 outlook — 5% oil growth, 13% total volume growth, $4.5B FCF target at strip

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Last updated: February 25, 2026

Related: EOG Resources Company Profile | Q3 2025 Earnings | EOG Transcripts