EOG Resources, Inc.

EOG · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

EOG keeps getting cheaper to drill, and that is how it makes new inventory: rock that used to miss the return bar now clears it. It spends the same money either way and lets the oil price, not more rigs, set the size of the payout.How much new drilling inventory have lower well costs unlocked?

  • Cheaper wells are the product, not just the savings.

    Management repeats the same point: cheaper wells turn rock that missed the return bar into inventory. A newly leased Austin Chalk sweet spot added a full extra year of drilling in South Texas, growth the company did not have to buy.What does it cost per foot to drill the Austin Chalk wells?

  • Record cash is coming from oil prices, not from growth.

    Cash flow and payouts hit records in Q2 FY2026, with revenue up 57% from a year earlier while oil output was held flat on purpose. Management did not add rigs, kept spending flat, and wants cash held back to buy assets when prices fall.How much cash is EOG holding back before it buys something?

  • The overseas growth story keeps slipping to the right.

    UAE and Bahrain results slipped from Q2 FY2026 to the second half, and Bahrain drilling is now intermittent because of the conflict. Neither is commercial yet, and these are the plays management points to as its next leg of growth.

Bullish
  • Capital reallocation across basins
    The bull case rests on a multi-basin portfolio that lets EOG move capital between oil and gas within a fixed budget whenever prices shift.
  • Well cost reductions
    Longer laterals and in-house drilling technology keep lowering the oil price at which its wells pay back, which protects returns when prices fall.
  • UAE unconventional exploration
    Early international wells suggest EOG can apply its domestic unconventional methods abroad, opening a resource base that rivals cannot easily copy.
Bearish
  • Oil and gas price dependence
    The bear case is that results still track oil and gas prices, and a sustained decline would cut the cash available for drilling, dividends and buybacks.
  • Delaware well productivity
    Delaware wells are increasingly drilled in secondary zones with lower output per foot, so per-well productivity drifts down as the best rock is developed.
  • Cash return target reset
    Management moved from promising nearly all free cash flow back to shareholders to promising a floor of seventy percent while saying it may hold more cash.
See the full bull & bear case
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Purchase≥$100KAug 21Oct 8
Donald Trump
Republican · Executive
Sale≥$15KJul 17Sep 22
Donald Trump
Republican · Executive
Sale≥$1KJun 23Aug 22
Donald Trump
Republican · Executive
Purchase≥$1KMay 15Jul 1
Donald Trump
Republican · Executive
Purchase≥$1KMar 17May 13

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Product segmentsGeography
FY2025 · USD

How EOG Resources turned $22.6B of revenue into $6.4B of operating income.

Revenue
Oil and Condensate$12.5B▼ 10.20% YoY
Natural Gas, Gathering, Transportation, Marketing and Processing$4.9B▼ 15.28% YoY
Natural Gas, Production$2.8B▲ 79.95% YoY
Other, Net$72.0M▼ 28.00% YoY
Total revenue$22.6B
Gross profit$14.1B62.1%
Operating income$6.4B28.2%
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