Financial Data and Key Metrics Changes - The company reported over 12 billion barrels of oil equivalent resources with a 55% average direct after-tax rate of return at bottom cycle prices of $45 oil and $2.50 gas [12][13] - The Encino acquisition, valued at $5.6 billion, is expected to generate synergies of approximately $150 million in the first year, primarily through well cost reductions and infrastructure integration [17][18] Business Line Data and Key Metrics Changes - The Delaware Basin continues to show significant growth potential, with nine additional landing zones developed in the past five years due to technological advancements and lower well costs [26] - The Eagle Ford has seen a level-loading of activity, maintaining margins despite a slowdown from pre-COVID investment levels [28] Market Data and Key Metrics Changes - North American gas demand is projected to grow at a compound annual growth rate of 4% to 6%, driven by LNG demand and power generation needs [29][30] - The company has secured $900 million in marketing agreements for LNG, with a ramp-up to full capacity expected by 2027 [35] Company Strategy and Development Direction - The company is focused on capital discipline, operational excellence, and leveraging technology to drive down well costs while maintaining a multi-basin portfolio [5][11] - The strategy includes balancing investments across foundational assets, emerging plays, and international exploration opportunities [14][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of the Encino acquisition and its potential to accelerate the development of the Utica play [16][24] - The company remains committed to organic exploration and innovation as key differentiators in the competitive landscape [43][44] Other Important Information - The company is exploring opportunities in the Middle East, specifically in Bahrain and the UAE, with a focus on leveraging technology to enhance productivity and lower costs [41][42] Q&A Session Summary Question: Concerns about shale maturation and new deals - Management clarified that recent deals are not indicative of shale maturation but rather a strategic move to leverage technological advancements and subsurface knowledge [2][3] Question: Capital allocation strategy - The company emphasized the importance of disaggregating individual assets and investing at the right pace to balance near-term returns with long-term growth [8][10] Question: Future of foundational plays like Delaware and Eagle Ford - Management indicated that both foundational plays still have significant growth potential and will continue to contribute to the overall portfolio [25][26] Question: Balancing dry gas opportunities with oil investments - The company highlighted the strategic importance of low-cost gas supply from Dorado, while maintaining a balanced approach to oil and gas investments [30][32] Question: Marketing agreements and growth opportunities - Management discussed the importance of securing long-term marketing agreements for consistent gas supply, particularly in the LNG market [33][35]

Core Insights - Investors are encouraged to consider dividend-paying stocks for steady returns amid macroeconomic uncertainties [1] - Top Wall Street analysts provide recommendations to help identify attractive dividend-paying stocks [2] MPLX LP - MPLX LP is a diversified master limited partnership (MLP) focused on midstream energy infrastructure and logistics, recently acquiring Northwind Delaware Holdings LLC for approximately $2.38 billion [3] - The company reported distributable cash flow (DCF) of $1.4 billion for Q2, allowing for a capital return of $1.1 billion, with a current dividend yield of 7.5% [4] - Analyst Selman Akyol from Stifel reaffirmed a buy rating on MPLX, raising the price forecast to $60 from $57, citing growth potential from the Northwind acquisition [5][6] - Akyol expects MPLX to grow its distribution at 12.5% over the next several years, with a historical EBITDA and DCF growth rate of 7% over the past four years [6][7] EOG Resources - EOG Resources, an oil and gas exploration and production company, paid $528 million in dividends and repurchased $600 million in shares during Q2, with a quarterly dividend of $1.02 per share, yielding 3.4% [8] - Analyst Scott Hanold from RBC Capital reiterated a buy rating on EOG, setting a price target of $140, while TipRanks' AI Analyst has an "outperform" rating with a price target of $133 [9] - EOG is expanding its position in the Utica shale through the acquisition of Encino Acquisition Partners, with expectations of significant operational improvements [11] - Hanold anticipates EOG's natural gas exposure to exceed 3 billion cubic feet per day by the end of 2025, supported by its Dorado development and opportunities in the Utica [12][13] - EOG's strong balance sheet allows for high shareholder returns, with a commitment to increasing dividends despite macro uncertainties [14][15] Home Depot - Home Depot's Q2 adjusted earnings and revenue fell short of expectations, but the company maintained its full-year guidance, with a quarterly dividend of $2.30, yielding 2.2% [16] - Analyst Scot Ciccarelli from Truist reiterated a buy rating on Home Depot, raising the price forecast to $454 from $433, citing improving trends in core business categories [17][18] - Home Depot experienced broad sales growth across categories and geographies, with a 2.6% increase in big-ticket transactions over $1,000 in Q2 [19] - The company is less affected by tariff volatility compared to peers, attributed to its buying power and diversified sourcing model [20]

EOG Resources Conference Call Summary Company Overview - **Company**: EOG Resources - **Industry**: Exploration and Production (E&P) in the Oil and Gas sector - **Headquarters**: Houston, Texas - **Recent Activity**: Active in acquisitions, including the recent acquisition of Encino [1] Core Value Proposition - **Sustainable Value Creation**: EOG aims to create sustainable value through industry cycles, focusing on being among the highest return and lowest cost producers while maintaining strong environmental performance [2] - **Four Pillars**: 1. Capital Discipline 2. Operational Excellence 3. Sustainability 4. Culture [3] Capital Discipline - **Investment Focus**: EOG targets returns-focused investments at bottom cycle prices, defined as $45 WTI and $2.50 Henry Hub [4] - **Balance Sheet**: Maintains a pristine balance sheet and generates significant free cash flow [4] - **Dividend Policy**: EOG has paid a dividend for 27 years without cuts or suspensions, returning a minimum of 70% of annual free cash flow to investors [5] Operational Excellence - **Exploration Strategy**: Focus on organic exploration to maintain a low-cost, high-quality multi-basin inventory [6] - **Cost Control**: Utilizes in-house technical expertise and proprietary technology to enhance well performance and control costs [6] Sustainability Initiatives - **Environmental Focus**: EOG has set new emissions targets and emphasizes safe operations and community engagement [7] Company Culture - **Decentralized Decision-Making**: EOG's culture promotes local decision-making, allowing field teams to drive value creation [8] Financial Performance - **Q2 Results**: - Adjusted net income: $1.3 billion - Free cash flow: $1 billion - Increased regular dividend rate by 5% [12] - **2025 Guidance**: - CapEx: $6.3 billion (up 5% from previous guidance) - Full-year production: 521,000 BOE per day (up 9% year-over-year) [13] Recent Acquisitions - **Encino Acquisition**: - Added 1,100,000 net acres and 2+ billion BOE of undeveloped resources - Estimated $150 million in synergies within the first year [11][18] - **International Expansion**: - Acquired an onshore concession in the UAE for a 900,000-acre unconventional oil prospect [11] Asset Performance - **Foundational Assets**: - EOG identifies three foundational assets: Utica, Delaware Basin, and Eagle Ford, with competitive payback periods and well costs [19][20] - **Dorado Asset**: Positioned as the lowest cost dry gas play in North America with a breakeven price of $1.40 per MMBtu [22] Marketing Strategy - **Strategic Infrastructure**: Built gas processing plants and pipelines to enhance market access and price realizations [27][29] - **Price Realizations**: EOG's gas price realizations were $2.87 per MMBtu, nearly double that of peers [31] Dividend and Cash Returns - **Dividend Growth**: EOG has committed approximately $2.1 billion in cash to investors for the year, with a strong growth trajectory [32] - **Total Cash Return**: Over the past five years, EOG has returned $21 billion to shareholders [32] Environmental Goals - **Emission Targets**: Aiming to reduce greenhouse gas emissions intensity by 25% from 2019 levels by 2030, with a focus on zero methane emissions and routine flaring [33] Conclusion - **Investment Appeal**: EOG Resources presents a compelling investment opportunity due to its sustainable value creation strategy, strong financial performance, and commitment to environmental sustainability [33]

Financial Data and Key Metrics Changes - EOG Resources reported adjusted earnings per share of $2.32 and adjusted cash flow per share of $4.57 for Q2 2025, with free cash flow of $973 million during the quarter [15][17] - The company returned over $1.1 billion to shareholders through dividends and share repurchases, maintaining a commitment to return at least $3.5 billion in cash during 2025 [6][31] - A 5% increase in the regular dividend was announced, bringing the annual dividend rate to $4.8 per share, yielding 3.5% at current share prices [15][31] Business Line Data and Key Metrics Changes - Oil, natural gas, and NGL volumes exceeded guidance, with strong operational performance translating into financial results [5][20] - The company updated its 2025 CapEx guidance to $6.3 billion, with forecasted average oil production of 521,000 barrels per day and total production of 1.224 million barrels of oil equivalent per day [22][31] - The Utica asset is expected to contribute significantly to growth, with a focus on operational efficiencies and cost reductions [9][24] Market Data and Key Metrics Changes - The demand for natural gas is projected to grow at a compound annual growth rate of 4% to 6% through 2030, driven by LNG and power demand [12][13] - EOG is well-positioned to capture incremental gas demand with its Dorado asset and the newly acquired Utica dry gas volumes [13][48] - The company anticipates a balanced market for oil in 2026, with less non-OPEC supply growth and historically low inventory levels [64][65] Company Strategy and Development Direction - EOG's strategy focuses on capital discipline, operational excellence, sustainability, and culture, with a commitment to being among the highest return, lowest cost producers [11][32] - The integration of the nCino assets is expected to enhance returns and growth, with a target of $150 million in annual run rate synergies within the first year post-acquisition [23][32] - The company is exploring new opportunities in the UAE and expanding its presence in the Gulf States, leveraging its technical expertise [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong operational performance and a commitment to shareholder returns [6][31] - The outlook for oil demand is expected to moderate in 2025 before increasing in 2026, with a focus on maintaining a disciplined investment approach [11][64] - The recent tax legislation is projected to provide a recurring benefit of approximately $200 million annually, supporting free cash flow [59] Other Important Information - EOG has repurchased over 46 million shares since initiating buybacks in 2023, representing approximately 8% of shares outstanding [16] - The company has a pristine balance sheet, maintaining total debt levels versus EBITDA at roughly one time [76] Q&A Session Summary Question: Sustaining capital requirements for Utica production - Management indicated it is too early to provide specific sustaining capital requirements for the Utica, but operational efficiency gains are expected to contribute to lower costs [37][40] Question: Geological concept and commercial development in UAE - Management expressed excitement about the UAE concession, highlighting good geological data and the importance of infrastructure and logistics for scaling production [42][44] Question: Marketing strategy for gas market - Management emphasized a thoughtful approach to marketing agreements, focusing on good partners and premium pricing, particularly with the new gas assets [47][50] Question: Quick wins in Utica operations - Management identified several operational efficiencies and cost-saving opportunities in the Utica, including shared infrastructure and EOG technology [79][81] Question: Impact of high-frequency sensors on costs and EUR - Management noted that while it is early in the implementation of high-frequency sensors, they expect significant improvements in well performance and cost efficiency [84][86]

Core Viewpoint - EOG Resources, Inc. reported better-than-expected second-quarter 2025 results, with adjusted earnings per share of $2.32, surpassing estimates but down from $3.16 year-over-year. Total revenues of $5.48 billion also exceeded expectations but declined from the previous year's $6.03 billion [1][9]. Operational Performance - Total oil-equivalent production volumes increased by 8.3% year-over-year to 103.2 million barrels of oil equivalent (MMBoe), exceeding the company's guidance midpoint of 101.4 MMBoe [3]. - Crude oil and condensate production reached 504.2 thousand barrels per day (MBbls/d), up 2.8% from the prior year, and beat estimates [4]. - Natural gas volumes rose to 2,229 million cubic feet per day (MMcf/d), significantly higher than the previous year's 1,872 MMcf/d and also above estimates [4]. Price Realization - Average price realization for crude oil and condensates fell by 21.6% year-over-year to $64.82 per barrel, while natural gas prices improved by almost 66% to $2.96 per Mcf [5]. Operating Costs - Lease and well expenses increased to $396 million, while gathering, processing, and transportation costs rose to $455 million, both higher than the previous year [6]. - Total operating expenses were reported at $3.73 billion, down from $3.89 billion year-over-year [6]. Liquidity and Capital Expenditure - As of June 30, 2025, EOG had cash and cash equivalents of $5.2 billion and long-term debt of $3.5 billion, with free cash flow generated in the quarter amounting to $973 million [7]. - Capital expenditure for the quarter was $1.52 billion, with full-year expectations set between $6.2 billion and $6.4 billion [10]. Guidance - For 2025, EOG anticipates total production between 1,206.8 and 1,241.1 MBoe/d, with third-quarter production expected to be between 1,273.2 and 1,313.3 MBoe/d [10].

Financial Performance & Capital Allocation - EOG reported adjusted net income of $1.3 billion, resulting in adjusted EPS of $2.32 and adjusted CFPS of $4.57 for 2Q 2025[9] - The company generated $1.0 billion in free cash flow during 2Q 2025[9] - EOG increased its regular quarterly dividend rate by 5%[10] - The company returned $1.1 billion to shareholders, including $0.5 billion in regular dividends and $0.6 billion in share repurchases during 2Q 2025[10] - EOG is targeting approximately $4.3 billion in free cash flow for full-year 2025, based on $65 WTI and $3.50 HH[14] - The company has committed $3.5 billion of cash return year-to-date through regular dividends and share repurchases[14] - EOG's regular dividend represents a $2.1 billion cash return commitment for 2025[63] Operational Highlights & Strategic Initiatives - EOG acquired Encino, creating a premier Utica asset position totaling 1.1 million net acres[10] - The company was awarded an onshore concession in the UAE to explore and appraise approximately 900,000 acre unconventional oil prospect[10] - EOG's average total production is projected to be 1,224 MBOED for 2025[13,16] - The company's average oil production is projected to be 521 MBOD for 2025[13,16] - EOG estimates $150 million of synergies to be realized in the first year following the Encino acquisition[27] - EOG's Janus Gas Processing Plant has a capacity of 300 MMcfd and supports Permian operations[54] Environmental Targets - EOG is targeting a 25% reduction in GHG emissions intensity rate from 2019 levels by 2030[70] - The company aims to maintain near-zero methane emissions, at 0.20% or less[69] - EOG is committed to zero routine flaring[69]

Core Insights - EOG Resources reported Q2 2025 non-GAAP EPS of $2.32, exceeding estimates of $2.23, while facing a challenging pricing environment for oil and gas [1][2] - The company proactively reduced capital expenditures to protect free cash flow and shareholder returns, reflecting strong operational discipline [1][4] Financial Performance - Non-GAAP EPS decreased by 26.6% year-over-year from $3.16 in Q2 2024 to $2.32 in Q2 2025 [2] - GAAP revenue for Q2 2025 was $5.48 billion, slightly above the estimate of $5.45 billion [2] - Free cash flow fell by 29.0% year-over-year to $973 million from $1.37 billion in Q2 2024 [2][6] - Average realized price per barrel of oil equivalent dropped to $39.80 from $45.88 in Q1 2025, with U.S. crude oil averaging $64.84 per barrel, down from $72.90 [5][6] Operational Highlights - Production volumes reached 1,134.1 thousand barrels of oil equivalent per day, with oil volumes at 504.2 thousand barrels per day and natural gas liquids at 258.4 thousand barrels daily [6] - The composite margin per Boe decreased to $14.94 from $21.70 in 2024, indicating pressure on profit margins due to weaker pricing [6] - EOG's drilling efficiency improved by 15% year-over-year at the Dorado project, maintaining low gas breakeven costs of approximately $1.40 per Mcf [8] Strategic Focus - EOG Resources operates primarily in the U.S., focusing on developing large proved reserves and leveraging advanced drilling technologies [3][4] - The company reduced its 2025 capital budget by $200 million and narrowed drilling activity in key areas to maintain steady oil production [7] - EOG completed a $275 million acquisition in the Eagle Ford, adding 30,000 net acres [7] Future Outlook - Management expects flat oil production for the remainder of the year, with approximately 2% oil production growth and 5% total production growth anticipated [10] - Free cash flow guidance is set at $4 billion, assuming oil prices at $65 per barrel and natural gas at $3.75 per Mcf [10] - The company maintained a net cash position of $980 million as of June 30, 2025, and paid $528 million in dividends [9]

Core Insights - EOG Resources reported a revenue of $5.48 billion for the quarter ended June 2025, reflecting a 9.1% decrease year-over-year, while EPS was $2.32, down from $3.16 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 0.3%, and the EPS surpassed the consensus estimate by 4.98% [1] Financial Performance Metrics - Crude Oil and Condensate production was 504.2 million barrels per day, slightly above the analyst estimate of 502.78 million barrels per day [4] - Natural Gas production reached 2229 million cubic feet per day, exceeding the average estimate of 2161.91 million cubic feet per day [4] - Natural Gas Liquids production was 258.4 million barrels per day, surpassing the analyst estimate of 249.55 million barrels per day [4] - Total production was reported at 103.20 MBOE, higher than the estimated 101.38 MBOE [4] Revenue Breakdown - Natural Gas revenues were $600 million, significantly up by 98% year-over-year, and above the average estimate of $589.88 million [4] - Crude Oil and Condensate revenues were $2.97 billion, down 19.5% compared to the previous year, and slightly below the estimated $3.01 billion [4] - Natural Gas Liquids revenues totaled $534 million, reflecting a 3.7% increase year-over-year, and above the average estimate of $484 million [4] - Revenues from Gathering, Processing, and Marketing were $1.25 billion, down 17.9% year-over-year, and below the estimate of $1.43 billion [4] - Other revenues were reported at $16 million, a decrease of 30.4% year-over-year, compared to the average estimate of $21.13 million [4] Stock Performance - EOG Resources' shares have returned -4.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - EOG Resources reported quarterly earnings of $2.32 per share, exceeding the Zacks Consensus Estimate of $2.21 per share, but down from $3.16 per share a year ago, representing an earnings surprise of +4.98% [1] - The company posted revenues of $5.48 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.30%, but down from $6.03 billion year-over-year [2] - EOG Resources has surpassed consensus EPS estimates in all four of the last quarters, while it has only topped consensus revenue estimates once in the same period [2] Group 2 - The stock has underperformed the market, losing about 4.9% since the beginning of the year compared to the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the coming quarter is $2.40 on revenues of $5.85 billion, and for the current fiscal year, it is $10.05 on revenues of $23.33 billion [7] Group 3 - The Zacks Industry Rank indicates that the Oil and Gas - Exploration and Production - United States sector is currently in the bottom 28% of over 250 Zacks industries, which may impact stock performance [8] - The estimate revisions trend for EOG Resources was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements) EOG Resources, Inc. presents unaudited condensed consolidated financial statements for Q2 and H1 2025, showing decreased net income and operating cash flow [Condensed Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) EOG reported decreased net income for Q2 and H1 2025, primarily driven by lower crude oil and condensate revenues despite higher natural gas revenues Financial Performance Summary (In Millions, Except Per Share Data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $5,478 | $6,025 | $11,147 | $12,148 | | **Operating Income** | $1,747 | $2,130 | $3,606 | $4,401 | | **Net Income** | $1,345 | $1,690 | $2,808 | $3,479 | | **Diluted EPS** | $2.46 | $2.95 | $5.11 | $6.05 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, EOG's total assets slightly decreased to $46.3 billion, mainly due to a reduction in cash and cash equivalents Balance Sheet Summary (In Millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and Cash Equivalents | $5,216 | $7,092 | | Total Current Assets | $9,245 | $11,230 | | **Total Assets** | **$46,284** | **$47,186** | | **Current Liabilities** | | | | Current Portion of Long-Term Debt | $778 | $532 | | Total Current Liabilities | $5,175 | $5,354 | | **Long-Term Debt** | $3,458 | $4,220 | | **Total Stockholders' Equity** | **$29,238** | **$29,351** | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity slightly decreased for H1 2025, driven by net income offset by dividends and treasury stock repurchases Changes in Stockholders' Equity (Six Months Ended June 30, 2025, In Millions) | Item | Amount | | :--- | :--- | | Balance at Dec 31, 2024 | $29,351 | | Net Income | $2,808 | | Common Stock Dividends Declared | $(1,618) | | Treasury Stock Repurchased | $(1,402) | | Other Changes | $(1) | | **Balance at June 30, 2025** | **$29,238** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased for H1 2025, leading to a $1.9 billion decrease in cash and cash equivalents Cash Flow Summary (Six Months Ended June 30, In Millions) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $4,321 | $5,792 | | Net Cash Used in Investing Activities | $(3,211) | $(3,130) | | Net Cash Used in Financing Activities | $(2,987) | $(2,509) | | **Decrease in Cash and Cash Equivalents** | **$(1,876)** | **$153** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on segment performance, debt management, share repurchases, and the significant Encino acquisition - For the six months ended June 30, 2025, the United States segment generated **$11.0 billion in revenue** and **$3.6 billion in operating income**, representing the vast majority of the company's performance[42](index=42&type=chunk) - On April 1, 2025, EOG repaid **$500 million** of its 3.15% Senior Notes, and subsequently issued **$3.5 billion** in new senior notes on July 1, 2025, to fund the Encino acquisition[49](index=49&type=chunk)[50](index=50&type=chunk) - During the first six months of 2025, EOG repurchased **11.7 million shares** of common stock for approximately **$1.4 billion**, with **$4.5 billion** remaining available under the authorization as of June 30, 2025[53](index=53&type=chunk) - On August 1, 2025, EOG completed the acquisition of Encino Acquisition Partners for approximately **$4.48 billion in cash** and assumed **$1.2 billion in senior notes**, adding significant assets in the Utica play[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operations, highlighting the impact of volatile commodity prices, the Encino acquisition, and a strong capital structure - EOG's strategy focuses on being a high-return, low-cost producer, emphasizing internally generated prospects and maintaining a strong balance sheet[80](index=80&type=chunk) - The company completed the acquisition of Encino on August 1, 2025, adding **675,000 core net acres** in the Utica play[93](index=93&type=chunk) - Total 2025 capital expenditures are estimated to be between **$6.2 billion and $6.4 billion**, focusing on high-return plays in key basins[98](index=98&type=chunk) - EOG maintains a strong capital structure with a debt-to-total capitalization ratio of **13%** at June 30, 2025[100](index=100&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Operating revenues decreased in Q2 and H1 2025 due to lower crude oil prices, partially offset by increased natural gas revenues from higher prices and volumes Q2 2025 vs Q2 2024 Production Volumes | Product | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Crude Oil & Condensate (MBbld) | 504.2 | 490.7 | +2.7% | | Natural Gas Liquids (MBbld) | 258.4 | 244.8 | +5.6% | | Natural Gas (MMcfd) | 2,229 | 1,872 | +19.1% | Q2 2025 vs Q2 2024 Average Realized Prices | Product | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Crude Oil & Condensate ($/Bbl) | $64.82 | $82.69 | -21.6% | | Natural Gas Liquids ($/Bbl) | $22.70 | $23.11 | -1.8% | | Natural Gas ($/Mcf) | $2.96 | $1.78 | +66.3% | - For the six months ended June 30, 2025, crude oil revenues decreased **13% to $6.3 billion** due to a **15% lower average price**, partially offset by a **3% increase in production volume**[140](index=140&type=chunk) - Natural gas revenues for the first six months of 2025 increased **81% to $1.2 billion**, driven by a **57% higher average price** and a **16% increase in delivery volumes**[142](index=142&type=chunk) [Capital Resources and Liquidity](index=37&type=section&id=Capital%20Resources%20and%20Liquidity) EOG maintained strong liquidity with $5.2 billion in cash and an undrawn credit facility, despite decreased operating cash flow and increased capital expenditures - As of June 30, 2025, EOG had **$5.2 billion of cash and cash equivalents** and **$1.9 billion of availability** under its undrawn revolving credit facility[155](index=155&type=chunk) H1 2025 Expenditures (In Millions) | Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Exploration and Development Expenditures | $3,206 | $3,010 | | Other Property, Plant and Equipment | $196 | $663 | | **Total Expenditures** | **$3,429** | **$3,634** | - In connection with the Encino acquisition, EOG assumed various natural gas and NGL financial derivative contracts, including price swaps and collars, extending through 2027[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposure were reported, with updates provided through derivative contract disclosures in other sections of this report - The company's market risk disclosures are updated by reference to the risk management and derivative contract information contained within this Form 10-Q, particularly in Note 10 and the MD&A section[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - EOG's principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[183](index=183&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, EOG's internal control over financial reporting[184](index=184&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=42&type=section&id=ITEM%201.%20Legal%20Proceedings) Management believes pending legal claims will not materially adversely affect EOG's financial position, with no environmental proceedings exceeding the disclosure threshold - Management does not expect pending legal claims from the ordinary course of business to have a material adverse effect on EOG's financial condition or results[48](index=48&type=chunk) - There are no environmental proceedings to disclose for the quarter ended June 30, 2025, based on a **$1 million disclosure threshold**[188](index=188&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) EOG repurchased 5.4 million shares for approximately $600 million in Q2 2025, with $4.46 billion remaining under the share repurchase authorization Share Repurchase Activity (Q2 2025) | Period | Total Shares Purchased | Average Price Paid/Share | Total Value of Shares Purchased | | :--- | :--- | :--- | :--- | | April 2025 | 5,432,214 | $110.57 | $600.0M | | May 2025 | 3,003 | $110.77 | — | | June 2025 | 9,942 | $121.58 | — | | **Total** | **5,445,159** | **$110.59** | **$600.0M** | - As of June 30, 2025, approximately **$4.46 billion** remained available for repurchases under the **$10 billion** Share Repurchase Authorization[189](index=189&type=chunk) [Item 5. Other Information](index=43&type=section&id=ITEM%205.%20Other%20Information) EVP & COO Jeffrey R. Leitzell adopted a new Rule 10b5-1 trading arrangement for EOG common stock sales, effective June 26, 2025 - On June 26, 2025, EVP & COO Jeffrey R. Leitzell adopted a new Rule 10b5-1 trading plan for selling EOG common stock, which will terminate by June 30, 2027[193](index=193&type=chunk)[194](index=194&type=chunk) [Item 6. Exhibits](index=44&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Encino acquisition agreement, corporate governance documents, and officer certifications - Key exhibits filed include the purchase agreement for the Encino acquisition, officer certifications required by the Sarbanes-Oxley Act, and interactive data files (XBRL)[197](index=197&type=chunk)[198](index=198&type=chunk)