HOUSTON, May 16, 2025 /PRNewswire/ -- EOG Resources, Inc. (EOG) today announced that the company was awarded a new oil exploration concession for Unconventional Onshore Block 3 (UCO3) by Abu Dhabi's Supreme Council for Financial and Economic Affairs (SCFEA).The UCO3 concession area is 3,609 square kilometers, or nearly 900,000 acres, in an over-pressured, oil prone basin within the Al Dhafra region of Abu Dhabi. EOG holds 100 percent equity and operatorship and, in coordination with Abu Dhabi National Oil C ...

Group 1 - The U.S. President Trump announced a $200 billion agreement in the UAE [1] - ExxonMobil, Occidental Petroleum, and EOG are forming partnerships with the UAE's Adnoc [1] - The expanded oil and gas production is valued at $60 billion [1] Group 2 - Qualcomm is partnering with Adio [1] - Holtec International and IHC are entering a partnership with a committed value of $10 billion to build the SMR-300 small modular reactor in Michigan, USA [1]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported adjusted net income of $1.6 billion and generated $1.3 billion in free cash flow, highlighting strong financial performance [7][16] - Adjusted earnings per share were $2.87, and adjusted cash flow per share was $5.90 [16] - The company returned $1.3 billion to shareholders through dividends and share repurchases, demonstrating a commitment to value creation [7][16] Business Line Data and Key Metrics Changes - The company achieved a 25% year-over-year growth in total production, with oil production levels expected to remain flat throughout the year [20][10] - The Dorado dry gas asset in South Texas showed improved productivity, contributing to overall volume outperformance [19][20] - A bolt-on acquisition in the Eagle Ford added significant drilling inventory, enhancing operational efficiency and returns [24][13] Market Data and Key Metrics Changes - Global oil demand remained strong, with U.S. supply growth moderating and inventory levels below the five-year range, supporting a positive medium to long-term outlook for oil and gas [10][11] - The company anticipates a compound annual growth rate of 4% to 6% in natural gas demand through the end of the decade, driven by LNG and increased power demand [12][11] Company Strategy and Development Direction - The company is focused on capital discipline, optimizing its 2025 capital investment to enhance free cash flow while maintaining production levels [10][29] - EOG is committed to sustainable value creation through high-return investments and operational excellence, with a strong emphasis on maintaining a pristine balance sheet [14][29] - The company is pursuing organic exploration programs and strategic acquisitions to expand its inventory and improve productivity [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential impacts from tariffs and maintain strong cash flow generation [10][11] - The company remains optimistic about the long-term role of oil and gas in providing reliable energy, despite short-term price fluctuations [11][12] - EOG's operational excellence and commitment to sustainability are expected to drive long-term value creation [14][28] Other Important Information - The company has set new sustainability targets, aiming to reduce GHG emissions intensity by 25% by 2030 and maintain near-zero methane emissions for 2025 [27][28] - EOG's cash balance at the end of Q1 was $6.6 billion, with long-term debt at $4.7 billion, indicating a strong financial position [17] Q&A Session Summary Question: Insights on capital reduction and its implications - Management clarified that the decision to reduce capital expenditures was driven by a focus on protecting shareholder returns and free cash flow rather than a deterioration in reinvestment economics [34][35] Question: Future cash return strategies in a challenging macro environment - The company plans to continue returning over 100% of free cash flow to shareholders, remaining opportunistic with share buybacks [37][38] Question: Acquisition opportunities in a downturn - Management indicated that while many quality assets have been acquired, they remain open to both buybacks and strategic acquisitions that align with their investment criteria [55][56] Question: Outlook for natural gas and capital allocation - The company remains optimistic about natural gas demand and is focused on maintaining a low-cost structure while investing in gas assets like Dorado [62][64] Question: Returns comparison between gas and oil assets - Management highlighted that both gas and oil plays deliver competitive returns, with a focus on maintaining low costs and high rates of return [73][74]

Financial Data and Key Metrics Changes - The company reported adjusted net income of $1.6 billion and generated free cash flow of $1.3 billion in Q1 2025, highlighting strong financial performance [6][14] - Adjusted earnings per share were $2.87, and adjusted cash flow per share was $5.90 [14] - The company returned $1.3 billion to shareholders through dividends and share repurchases, demonstrating commitment to value creation [6][14] Business Line Data and Key Metrics Changes - The first quarter saw strong performance across the multi-basin portfolio, with production and cash operating costs exceeding targets [5][18] - The company plans to maintain oil production levels throughout 2025 while optimizing capital investments, expecting approximately 2% year-over-year oil growth [8][19] - The Dorado dry gas asset in South Texas showed improved productivity, contributing to overall volume outperformance [18][20] Market Data and Key Metrics Changes - Global oil demand remained strong, while U.S. supply growth moderated, supporting a positive medium to long-term outlook for oil and gas [9][10] - The company anticipates a compound annual growth rate of 4% to 6% in natural gas demand through the end of the decade, driven by LNG and increased power demand [11] Company Strategy and Development Direction - The company emphasizes capital discipline and operational excellence as core pillars of its value proposition, optimizing capital investments to enhance shareholder returns [7][27] - EOG is pursuing organic exploration programs and strategic bolt-on acquisitions to expand its inventory and improve productivity [12][22] - The company is committed to sustainability, aiming to reduce GHG emissions intensity by 25% by 2030 and maintain near-zero methane emissions for 2025 [25][26] Management's Comments on Operating Environment and Future Outlook - Management remains constructive on oil and gas's role in providing reliable low-cost energy, despite near-term price speculation due to tariff discussions [10] - The company is well-positioned for future cycles with a strong financial position and low-cost structure, allowing flexibility in capital allocation [7][19] - Management expressed confidence in the ability to generate free cash flow and maintain shareholder returns even in a challenging macro environment [32][35] Other Important Information - The company has reduced its 2025 capital investment plan by $200 million, now expecting to generate $4 billion in free cash flow at $65 WTI and $3.75 Henry Hub [15][16] - EOG's cash balance at the end of Q1 was $6.6 billion, with long-term debt at $4.7 billion, indicating a strong balance sheet [16] Q&A Session Summary Question: Insights on capital reduction decision - Management clarified that the decision to reduce capital expenditures is a function of capital discipline to protect shareholder returns rather than a reflection of deteriorating economics [31][32] Question: Future cash return strategy in a tougher macro environment - Management reiterated their commitment to returning over 100% of free cash flow to shareholders, remaining opportunistic with share buybacks [34][35] Question: Clarification on cumulative free cash flow targets - Management indicated that the three-year cumulative free cash flow scenario is not guidance but reflects a directionally accurate outlook based on current performance [39][40] Question: Acquisition opportunities in a downturn - Management stated that they do not see buybacks and acquisitions as mutually exclusive, focusing on creating shareholder value through both avenues [50][51] Question: Long-term growth outlook for Trinidad assets - Management expressed confidence in the Trinidad assets, highlighting consistent investment and operational expertise in the region [54][55] Question: Capital allocation in a weak oil market - Management remains optimistic about natural gas and is focused on maintaining low-cost structures while investing in gas assets like Dorado [58][60] Question: Returns comparison between Dorado and oil plays - Management confirmed that Dorado offers compelling returns at $4 gas, comparable to oil plays at $55, emphasizing the importance of low-cost reserves [69][70]

Core Viewpoint - EOG Resources, Inc. reported strong adjusted earnings per share for Q1 2025, exceeding estimates, but total revenues fell short of expectations and declined year-over-year Financial Performance - Adjusted earnings per share for Q1 2025 were $2.87, beating the Zacks Consensus Estimate of $2.74 and increasing from $2.82 in the same quarter last year [1] - Total quarterly revenues were $5.67 billion, missing the Zacks Consensus Estimate of $5.83 billion and down from $6.12 billion in the prior-year quarter [1] Operational Performance - Total production volumes increased by 4.8% year-over-year to 98.1 million barrels of oil equivalent (MMBoe), surpassing the company's guidance of 96.9 MMBoe [3] - Crude oil and condensate production averaged 502.1 thousand barrels per day (MBbls/d), up nearly 3% from the previous year and exceeding the estimate of 497.3 MBbls/d [4] - Natural gas volumes rose to 2,080 million cubic feet per day (MMcf/d), up from 1,858 MMcf/d year-over-year, also beating the estimate of 2,047.9 MMcf/d [4] Pricing and Costs - Average price realization for crude oil and condensates decreased by 7.1% year-over-year to $72.87 per barrel [5] - Natural gas prices improved by almost 51% year-over-year to $3.41 per Mcf, while NGL prices increased to $26.29 per barrel from $24.32 [5] - Total operating expenses were $3.81 billion, lower than $3.85 billion recorded a year ago, despite increases in lease and well expenses and gathering, processing, and transportation costs [6] Liquidity and Capital Expenditure - As of March 31, 2025, EOG had cash and cash equivalents of $6.6 billion and long-term debt of $3.5 billion [7] - The company generated $1.33 billion in free cash flow during the quarter, with capital expenditures amounting to $1.48 billion [7] Guidance - For 2025, EOG expects total production to be between 1,099.5 and 1,136.5 MBoe/d, with a second-quarter production forecast of 1,096.2 to 1,133.3 MBoe/d [8] - Full-year capital expenditure is projected to be in the range of $5.8 to $6.2 billion, with $1.5 to $1.6 billion allocated for the second quarter [8]

Financial Performance & Capital Allocation - EOG reported $1.6 billion in Adjusted Net Income for 1Q 2025[8] - Adjusted EPS was $2.87 and Adjusted CFPS was $5.09 for 1Q 2025[8] - Free Cash Flow for 1Q 2025 reached $1.3 billion[8] - EOG returned $1.3 billion to shareholders, including $0.5 billion in regular dividends and $0.8 billion in share repurchases in 1Q 2025[9] - The company is targeting a 7% increase in the regular dividend for 2025[18] Operational Highlights & Strategy - Total production reached $6.0 billion[10] - Oil production grew by 2% for 2025[12] - EOG is reducing its capital program by $200 million, aiming for ~$4.0 billion Free Cash Flow at $65 WTI and $3.75 HH[13, 14] - The company executed a bolt-on acquisition of ~30,000 net acres in the Eagle Ford[9] Emissions Targets - EOG aims to reduce GHG emissions intensity rate by 25% from 2019 levels by 2030[84] - The company is committed to maintaining near-zero methane emissions (0.20% or less) and zero routine flaring from 2025-2030[84]

Core Insights - EOG Resources reported a revenue of $5.67 billion for Q1 2025, a year-over-year decline of 7.4%, with an EPS of $2.87, slightly up from $2.82 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $5.83 billion, resulting in a surprise of -2.75%, while the EPS exceeded expectations by 4.74% [1] Financial Performance Metrics - Crude Oil Equivalent Volumes per day totaled 1,090.4 million barrels, slightly above the estimated 1,085.1 million barrels [4] - Natural Gas Volumes per day reached 2,080 million cubic feet, exceeding the estimate of 2,055.45 million cubic feet [4] - Crude Oil and Condensate Volumes per day were 502.1 million barrels, compared to the estimate of 500.57 million barrels [4] - Natural Gas Liquids Volumes per day totaled 241.7 million barrels, slightly below the estimate of 242.55 million barrels [4] - Average Crude Oil and Condensate Prices per barrel in the U.S. were $72.90, compared to the estimated $72.78 [4] - Total Production was 98.1 MBOE, exceeding the estimate of 97.8 MBOE [4] Revenue Breakdown - Revenues from Natural Gas were $637 million, below the estimate of $669.21 million, but represented a year-over-year increase of 66.8% [4] - Revenues from Crude Oil and Condensate were $3.29 billion, slightly above the estimate of $3.26 billion, but showed a year-over-year decline of 5.4% [4] - Revenues from Natural Gas Liquids reached $572 million, exceeding the estimate of $527.24 million, with a year-over-year increase of 11.5% [4] - Revenues from Gathering, Processing and Marketing were $1.34 billion, below the estimate of $1.37 billion, reflecting an 8.2% year-over-year decline [4] - Revenues from Other, Net were $19 million, below the estimate of $23.33 million, indicating a year-over-year decline of 26.9% [4] Stock Performance - EOG Resources' shares have returned -15.1% over the past month, compared to the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

EOG Resources (EOG) came out with quarterly earnings of $2.87 per share, beating the Zacks Consensus Estimate of $2.74 per share. This compares to earnings of $2.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.74%. A quarter ago, it was expected that this oil and gas company would post earnings of $2.55 per share when it actually produced earnings of $2.74, delivering a surprise of 7.45%.Over the last four quarters, the c ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents EOG's unaudited condensed consolidated financial statements for Q1 2025 and 2024, including income, balance sheets, equity, cash flows, and detailed notes [ITEM 1. Financial Statements (Unaudited)](index=2&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) This section presents EOG's unaudited condensed consolidated financial statements for Q1 2025 and 2024, including income, balance sheets, equity, cash flows, and detailed notes [Condensed Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This statement provides a summary of EOG's financial performance, showing a decrease in net income and operating income for Q1 2025 compared to Q1 2024 Condensed Consolidated Statements of Income and Comprehensive Income (Three Months Ended March 31) | Metric | 2025 (Millions) | 2024 (Millions) | Change (YoY) | | :------------------------------------------ | :-------------- | :-------------- | :------------- | | Operating Revenues and Other | $5,669 | $6,123 | -$454 (↓7.4%) | | Operating Expenses | $3,810 | $3,852 | -$42 (↓1.1%) | | Operating Income | $1,859 | $2,271 | -$412 (↓18.1%) | | Income Before Income Taxes | $1,877 | $2,300 | -$423 (↓18.4%) | | Net Income | $1,463 | $1,789 | -$326 (↓18.2%) | | Basic Net Income Per Share | $2.66 | $3.11 | -$0.45 (↓14.5%) | | Diluted Net Income Per Share | $2.65 | $3.10 | -$0.45 (↓14.5%) | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of EOG's financial position, showing total assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (As of) | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | Change (QoQ) | | :------------------------------------ | :------------------------ | :-------------------------- | :------------- | | Total Assets | $46,982 | $47,186 | -$204 (↓0.4%) | | Cash and Cash Equivalents | $6,599 | $7,092 | -$493 (↓7.0%) | | Total Property, Plant and Equipment, Net | $34,632 | $34,212 | +$420 (↑1.2%) | | Total Current Liabilities | $5,719 | $5,354 | +$365 (↑6.8%) | | Long-Term Debt | $3,464 | $4,220 | -$756 (↓17.9%) | | Current Portion of Long-Term Debt | $1,280 | $532 | +$748 (↑140.6%) | | Total Stockholders' Equity | $29,516 | $29,351 | +$165 (↑0.6%) | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement details changes in EOG's stockholders' equity, reflecting net income, dividends, and treasury stock repurchases for Q1 2025 Condensed Consolidated Statements of Stockholders' Equity (Three Months Ended March 31, 2025) | Metric | Balance at Dec 31, 2024 (Millions) | Net Income (Millions) | Common Stock Dividends Declared (Millions) | Treasury Stock Repurchased (Millions) | Balance at Mar 31, 2025 (Millions) | | :------------------------------------ | :--------------------------------- | :-------------------- | :----------------------------------------- | :---------------------------------- | :--------------------------------- | | Common Stock | $206 | — | — | — | $206 | | Additional Paid In Capital | $6,090 | — | — | -$9 (Change in Stock Comp Plans) | $6,095 | | Retained Earnings | $26,941 | $1,463 | -$535 | — | $27,869 | | Common Stock Held in Treasury | -$3,882 | — | — | -$796 | -$4,650 | | Total Stockholders' Equity | $29,351 | $1,463 | -$535 | -$796 | $29,516 | - EOG repurchased **$796 million** in treasury stock during Q1 2025, compared to $756 million in Q1 2024[13](index=13&type=chunk) - Common stock dividends declared were **$535 million** ($0.975 per share) in Q1 2025, up from $526 million ($0.91 per share) in Q1 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes EOG's cash inflows and outflows from operating, investing, and financing activities for Q1 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31) | Metric | 2025 (Millions) | 2024 (Millions) | Change (YoY) | | :------------------------------------------ | :-------------- | :-------------- | :------------- | | Net Cash Provided by Operating Activities | $2,289 | $2,903 | -$614 (↓21.1%) | | Net Cash Used in Investing Activities | $(1,430) | $(1,597) | +$167 (↓10.5%) | | Net Cash Used in Financing Activities | $(1,352) | $(1,292) | -$60 (↑4.6%) | | Increase (Decrease) in Cash and Cash Equivalents | $(493) | $14 | -$507 | | Cash and Cash Equivalents at End of Period | $6,599 | $5,292 | +$1,307 (↑24.7%) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Summary of Significant Accounting Policies](index=8&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines that the unaudited financial statements are prepared under SEC rules, reflecting management's estimates, and interim results may not predict full-year outcomes - Financial statements are unaudited and prepared by management, reflecting normal recurring adjustments[18](index=18&type=chunk) - Management uses estimates and assumptions, and actual results may vary[19](index=19&type=chunk) [2. Stock-Based Compensation](index=8&type=section&id=2.%20Stock-Based%20Compensation) EOG's stock-based compensation expense increased to $50 million in Q1 2025, driven by restricted stock and units across various plans Stock-Based Compensation Expense (Three Months Ended March 31) | Category | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Lease and Well | $17 | $13 | | Gathering, Processing and Transportation Costs | $1 | $2 | | Exploration Costs | $7 | $6 | | General and Administrative | $25 | $24 | | **Total** | **$50** | **$45** | - Stock-based compensation expense for restricted stock and restricted stock units increased to **$47 million** in Q1 2025 from $37 million in Q1 2024[22](index=22&type=chunk) - Unrecognized compensation expense for restricted stock and restricted stock units totaled **$304 million** at March 31, 2025, to be amortized over a weighted average period of 1.6 years[24](index=24&type=chunk) - Performance Units granted in 2021 resulted in an additional **125% grant** in February 2025 upon completion of the performance period[27](index=27&type=chunk) [3. Net Income Per Share](index=11&type=section&id=3.%20Net%20Income%20Per%20Share) This note details basic and diluted net income per share computation, showing diluted EPS decreased to $2.65 in Q1 2025 due to lower net income Net Income Per Share Computation (Three Months Ended March 31) | Metric | 2025 (Millions, except per share) | 2024 (Millions, except per share) | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Income | $1,463 | $1,789 | | Weighted Average Shares (Basic) | 550 | 575 | | Potential Dilutive Common Shares | 3 | 2 | | Adjusted Diluted Weighted Average Shares | 553 | 577 | | **Basic Net Income Per Share** | **$2.66** | **$3.11** | | **Diluted Net Income Per Share** | **$2.65** | **$3.10** | [4. Supplemental Cash Flow Information](index=11&type=section&id=4.%20Supplemental%20Cash%20Flow%20Information) This note provides supplemental cash flow details, highlighting a significant increase in net cash paid for income taxes to $732 million in Q1 2025 Net Cash Paid for Interest and Income Taxes (Three Months Ended March 31) | Metric | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Interest (Net of capitalized interest) | $11 | $14 | | Income Taxes, Net of Refunds Received | $732 | $2 | - Accrued capital expenditures within accounts payable were **$695 million** at March 31, 2025, compared to $735 million at March 31, 2024[33](index=33&type=chunk) - Non-cash investing activities included **$9 million** in additions to oil and gas properties from property exchanges in Q1 2025, down from $51 million in Q1 2024[33](index=33&type=chunk) [5. Segment Information](index=12&type=section&id=5.%20Segment%20Information) EOG's primary segments are United States and Trinidad, with the US segment generating $1,886 million in Q1 2025 operating income - EOG's chief operating decision makers (CODM) review major producing areas (United States and Trinidad) and exploration programs[34](index=34&type=chunk)[35](index=35&type=chunk) Operating Income (Loss) by Segment (Three Months Ended March 31) | Segment | 2025 (Millions) | 2024 (Millions) | | :-------------------------- | :-------------- | :-------------- | | United States | $1,886 | $2,264 | | Trinidad | $(12) | $16 | | Other International | $(15) | $(9) | | **Total Operating Income** | **$1,859** | **$2,271** | - Total assets for the United States segment were **$45,652 million** at March 31, 2025, compared to $43,573 million at March 31, 2024[36](index=36&type=chunk)[37](index=37&type=chunk) [6. Asset Retirement Obligations](index=14&type=section&id=6.%20Asset%20Retirement%20Obligations) This note reconciles asset retirement obligations, showing a slight increase to $1,467 million at March 31, 2025, due to incurred liabilities and accretion Asset Retirement Obligations Reconciliation (Three Months Ended March 31) | Metric | 2025 (Millions) | 2024 (Millions) | | :-------------------------- | :-------------- | :-------------- | | Carrying Amount at January 1 | $1,460 | $1,506 | | Liabilities Incurred | $8 | $13 | | Liabilities Settled | $(17) | $(16) | | Accretion | $14 | $16 | | Revisions | $2 | — | | Foreign Currency Translations | — | $(2) | | **Carrying Amount at March 31** | **$1,467** | **$1,517** | | Current Portion | $66 | $37 | | Noncurrent Portion | $1,401 | $1,480 | [7. Commitments and Contingencies](index=14&type=section&id=7.%20Commitments%20and%20Contingencies) EOG is involved in various legal suits, but management believes these will not materially adversely affect financial position or results - EOG faces various legal suits and claims in the ordinary course of business[42](index=42&type=chunk) - Management believes these legal matters will not materially adversely affect EOG's financial position, results of operations, or cash flow[42](index=42&type=chunk) [8. Long-Term Debt and Common Stock](index=15&type=section&id=8.%20Long-Term%20Debt%20and%20Common%20Stock) EOG repaid $500 million in debt, repurchased $788 million in stock, and declared $0.975 per share dividends, maintaining a strong capital structure - EOG repaid **$500 million** of 3.15% Senior Notes due 2025 on April 1, 2025[43](index=43&type=chunk) - EOG has a **$1.9 billion** senior unsecured Revolving Credit Agreement, maturing June 7, 2028, with no borrowings or letters of credit outstanding at March 31, 2025[44](index=44&type=chunk) - The share repurchase authorization was increased to **$10 billion** in November 2024. EOG repurchased **6.2 million shares** for approximately **$788 million** in Q1 2025, with $5.1 billion remaining available[45](index=45&type=chunk) - Quarterly cash dividends of **$0.975 per share** were declared on February 27, 2025 (paid April 30, 2025) and May 1, 2025 (to be paid July 31, 2025)[47](index=47&type=chunk) [9. Fair Value Measurements](index=16&type=section&id=9.%20Fair%20Value%20Measurements) This note details fair value measurements for financial and nonfinancial assets and liabilities, using Level 2 and Level 3 inputs for derivatives and other items Fair Value Measurements (March 31, 2025, in Millions) | Instrument | Level 1 | Level 2 | Level 3 | Total | | :------------------------------------ | :------ | :------ | :------ | :---- | | **Financial Assets:** | | | | | | Natural Gas Basis Swaps | $— | $1 | $— | $1 | | Brent Crude Oil Linked Gas Sales Contract | $— | $— | $116 | $116 | | **Financial Liabilities:** | | | | | | Natural Gas Swaps | $— | $277 | $— | $277 | - Fair value of financial commodity and other derivative contracts is based on forward commodity price curves (Level 2) and EOG's estimates for Level 3 inputs (e.g., Brent Linked Gas Sales Contract)[49](index=49&type=chunk) - Asset retirement obligations and proved oil and gas properties impairments are calculated using discounted cash flow techniques and internal estimates (Level 3 inputs)[50](index=50&type=chunk)[51](index=51&type=chunk) - The estimated fair value of outstanding senior notes was **$4,508 million** at March 31, 2025, based on quoted market prices or other observable (Level 2) inputs[54](index=54&type=chunk) [10. Risk Management Activities](index=17&type=section&id=10.%20Risk%20Management%20Activities) EOG uses mark-to-market financial commodity derivatives to manage price risk, including natural gas swaps for 725 MMBtud at $3.07/MMBtu - EOG uses financial commodity derivative instruments (e.g., price swaps, options, basis swaps) to manage commodity price risk[55](index=55&type=chunk) - All financial commodity and other derivative contracts are accounted for using the mark-to-market method, not designated as accounting hedges[55](index=55&type=chunk) Natural Gas Financial Price Swap Contracts Outstanding (As of March 31, 2025) | Period | Settlement Index | Volume (MMBtud in thousands) | Weighted Average Price ($/MMBtu) | | :-------------------- | :---------------- | :--------------------------- | :------------------------------- | | May - December 2025 | NYMEX Henry Hub | 725 | $3.07 | - The Brent Linked Gas Sales Contract's noncurrent portion was **$116 million** in gross assets at March 31, 2025[60](index=60&type=chunk) - EOG had no collateral posted or held for financial commodity derivative instruments at March 31, 2025, or April 30, 2025[64](index=64&type=chunk) [11. Acquisitions and Divestitures](index=19&type=section&id=11.%20Acquisitions%20and%20Divestitures) EOG acquired Eagle Ford properties for $275 million in Q1 2025 and a South Texas gathering system for $132 million in Q1 2024 - EOG agreed to purchase Eagle Ford properties for approximately **$275 million** in Q1 2025, closing in April 2025[65](index=65&type=chunk) - In Q1 2024, EOG paid **$132 million** to acquire a gathering system in South Texas[66](index=66&type=chunk) - Net gains on asset dispositions were **$26 million** in Q1 2024, primarily from a lease exchange in the Delaware Basin[66](index=66&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses EOG's financial condition and operations, covering business strategy, commodity price volatility, capital plans, and cash return framework [Overview](index=20&type=section&id=Overview) EOG, a leading independent E&P company, focuses on high returns, efficient operations, and a strong balance sheet, planning $5.8-$6.2 billion in 2025 capital expenditures - EOG is a large independent crude oil and natural gas company with proved reserves in the U.S. and Trinidad, focused on high returns and low costs[69](index=69&type=chunk) - Average U.S. NYMEX crude oil price was **$71.42/barrel** (↓7% YoY) and natural gas price was **$3.66/MMBtu** (↑63% YoY) for Q1 2025[72](index=72&type=chunk) - EOG's price sensitivity for 2025: **$1.00/barrel crude oil change** impacts net income by $159 million and pretax cash flow by $204 million[73](index=73&type=chunk) - **$0.10/Mcf natural gas change** impacts net income by $33 million and pretax cash flow by $43 million[74](index=74&type=chunk) - EOG continues initiatives (e.g., downhole drilling motor program, extended laterals, self-sourced sand) to increase efficiencies and mitigate inflationary pressures[76](index=76&type=chunk) - Q1 2025 U.S. production was approximately **71% crude oil/condensate and NGLs**, with drilling focused on the Delaware Basin and Eagle Ford play[80](index=80&type=chunk) - In Trinidad, EOG completed the Mento pipeline installation and executed two new production sharing contracts, with planned 2025 activities including drilling and seismic surveys[82](index=82&type=chunk) - Total 2025 capital expenditures are estimated to range from **$5.8 billion to $6.2 billion**, focusing on high-return plays in the Delaware Basin, Eagle Ford, Utica, and Rocky Mountain area[85](index=85&type=chunk) - EOG's debt-to-total capitalization ratio was **14%** at both March 31, 2025, and December 31, 2024, indicating a strong balance sheet[87](index=87&type=chunk) - EOG committed to returning a minimum of **70% of annual net cash** provided by operating activities (before certain balance sheet changes, less total capital expenditures) to stockholders, effective fiscal year 2024[91](index=91&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Operating revenues decreased 7% in Q1 2025 due to derivative losses and lower crude oil prices, resulting in an 18.1% drop in operating income - Operating revenues decreased **$454 million (7%)** to $5,669 million in Q1 2025, primarily due to net losses on mark-to-market derivative contracts ($191 million loss vs. $237 million gain in Q1 2024) and lower crude oil prices[95](index=95&type=chunk)[102](index=102&type=chunk) Production Volumes and Average Prices (Three Months Ended March 31) | Metric | 2025 | 2024 | Change (YoY) | | :------------------------------------ | :----- | :----- | :------------- | | Crude Oil & Condensate Volumes (MBbld) | 502.1 | 487.4 | +14.7 (↑3.0%) | | Average Crude Oil & Condensate Prices ($/Bbl) | $72.87 | $78.45 | -$5.58 (↓7.1%) | | Natural Gas Liquids Volumes (MBbld) | 241.7 | 231.7 | +10.0 (↑4.3%) | | Average Natural Gas Liquids Prices ($/Bbl) | $26.29 | $24.32 | +$1.97 (↑8.1%) | | Natural Gas Volumes (MMcfd) | 2,080 | 1,858 | +222 (↑11.9%) | | Average Natural Gas Prices ($/Mcf) | $3.41 | $2.26 | +$1.15 (↑50.9%) | | Crude Oil Equivalent Volumes (MBoed) | 1,090.4 | 1,028.8 | +61.6 (↑6.0%) | - Crude oil and condensate revenues decreased **$187 million (5%)** due to lower prices, partially offset by a 3% increase in production[99](index=99&type=chunk) - Natural gas revenues increased **$255 million (67%)** due to a 51% higher composite average price and a 12% increase in deliveries, primarily from the Permian Basin, Dorado, and Trinidad[101](index=101&type=chunk) - Operating expenses decreased **$42 million (1%)** to $3,810 million in Q1 2025[105](index=105&type=chunk) Costs Per Barrel of Oil Equivalent (Boe) (Three Months Ended March 31) | Cost Category | 2025 ($/Boe) | 2024 ($/Boe) | | :------------------------------------ | :----------- | :----------- | | Lease and Well | $4.09 | $4.23 | | Gathering, Processing and Transportation Costs (GP&T) | $4.48 | $4.41 | | Depreciation, Depletion and Amortization (DD&A) - Oil and Gas Properties | $9.71 | $10.95 | | General and Administrative (G&A) | $1.74 | $1.73 | | Interest Expense, Net | $0.48 | $0.35 | | **Total (excluding certain items)** | **$21.11** | **$22.19** | - DD&A expenses decreased **$61 million**, primarily due to a $117 million adjustment related to natural gas production used by domestic gathering systems in 2024[113](index=113&type=chunk) - Impairments increased to **$44 million** in Q1 2025 from $19 million in Q1 2024, mainly due to higher proved property impairments ($32 million vs. $2 million)[116](index=116&type=chunk) [Capital Resources and Liquidity](index=27&type=section&id=Capital%20Resources%20and%20Liquidity) EOG's cash decreased by $493 million in Q1 2025, driven by higher income tax payments and derivative settlements, despite lower total expenditures - Cash and cash equivalents decreased by **$493 million** in Q1 2025, ending at $6,599 million[117](index=117&type=chunk) - Net cash provided by operating activities decreased **$614 million (21.1%)** to $2,289 million in Q1 2025, mainly due to a $730 million increase in net cash paid for income taxes and $93 million increase in net cash paid for derivative settlements[118](index=118&type=chunk) - Net cash used in investing activities decreased **$167 million (10.5%)** to $1,430 million, driven by lower additions to other property, plant and equipment and oil and gas properties[119](index=119&type=chunk) - Net cash used in financing activities increased **$60 million (4.6%)** to $1,352 million, including $806 million for treasury stock purchases and $538 million for dividends[120](index=120&type=chunk) Total Expenditures (Three Months Ended March 31) | Expenditure Category | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Exploration and Development Drilling | $1,152 | $1,262 | | Facilities | $145 | $157 | | Leasehold Acquisitions | $48 | $85 | | Property Acquisitions | $(1) | $21 | | Capitalized Interest | $12 | $10 | | Exploration Costs | $41 | $45 | | Dry Hole Costs | $34 | $1 | | Asset Retirement Costs | $13 | $21 | | Other Property, Plant and Equipment | $102 | $350 | | **Total Expenditures** | **$1,546** | **$1,952** | - Exploration and development expenditures decreased **$150 million**, primarily due to reduced drilling in Trinidad ($62 million) and the United States ($47 million), and lower leasehold acquisitions ($37 million)[123](index=123&type=chunk) - The total fair value of EOG's financial commodity and other derivative contracts was a net liability of **$160 million** at March 31, 2025[126](index=126&type=chunk) - Net cash paid for settlements of financial commodity derivative contracts was **$38 million** in Q1 2025[126](index=126&type=chunk) [Information Regarding Forward-Looking Statements](index=30&type=section&id=Information%20Regarding%20Forward-Looking%20Statements) This section contains forward-looking statements about EOG's future performance, subject to risks like commodity price volatility and regulatory changes, with no obligation to update - The report includes forward-looking statements about EOG's future financial position, operations, performance, and business strategy[131](index=131&type=chunk) - Forward-looking statements are not guarantees of performance and are subject to risks, events, or circumstances outside EOG's control[131](index=131&type=chunk) - Key factors that could cause actual results to differ include commodity price changes, exploration success, operational costs, government policies, climate change regulations, and geopolitical factors[131](index=131&type=chunk)[133](index=133&type=chunk) - EOG undertakes no obligation to update or revise its forward-looking statements, except as required by law[132](index=132&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to EOG's 2024 Annual Report for market risk disclosures and directs readers to updated derivative contract information in this 10-Q - EOG's market risk exposures (commodity price, interest rate, foreign currency exchange rate) are discussed in the 2024 Annual Report on Form 10-K[135](index=135&type=chunk) - Updated information on financial commodity and other derivative contracts is available in Note 10 and relevant sections of Management's Discussion and Analysis in this 10-Q[135](index=135&type=chunk) [ITEM 4. Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) EOG's management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal control over financial reporting - EOG's disclosure controls and procedures were effective as of March 31, 2025[137](index=137&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025[138](index=138&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information beyond the financial statements, including legal proceedings, equity sales, and exhibits [ITEM 1. Legal Proceedings](index=33&type=section&id=ITEM%201.%20Legal%20Proceedings) This section incorporates Note 7 on legal proceedings, confirming no environmental proceedings requiring disclosure above $1 million in Q1 2025 - Legal proceedings information is incorporated from Note 7 of the financial statements[141](index=141&type=chunk) - EOG uses a **$1 million threshold** for disclosing environmental proceedings[142](index=142&type=chunk) - No environmental proceedings requiring disclosure were reported for the quarter ended March 31, 2025[142](index=142&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) EOG repurchased 6.2 million shares for $788 million in Q1 2025 under its $10 billion authorization, with $5.1 billion remaining Share Repurchase Activity (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Value of Shares Purchased as Part of Publicly Announced Plans or Programs | | :------------------------------------ | :------------------------------- | :--------------------------- | :-------------------------------------------------------------------------- | | January 1, 2025 - March 31, 2025 | 6,364,390 | $126.65 | $788,460,222 | - EOG repurchased **6.2 million shares** for approximately **$788 million** under its Share Repurchase Authorization in Q1 2025[145](index=145&type=chunk) - As of March 31, 2025, **$5,061,500,351** remained available for repurchases under the $10 billion Share Repurchase Authorization[143](index=143&type=chunk)[145](index=145&type=chunk) [ITEM 5. Other Information](index=34&type=section&id=ITEM%205.%20Other%20Information) No Section 16 officers or directors adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No Section 16 officers or directors adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025[146](index=146&type=chunk) [ITEM 6. Exhibits](index=35&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and financial statement certifications - Exhibits include Restated Certificate of Incorporation amendments, Bylaws, Section 302 and 906 certifications, and Inline XBRL documents for financial statements[147](index=147&type=chunk)[148](index=148&type=chunk) [SIGNATURES](index=37&type=section&id=SIGNATURES) The report is signed by Ann D. Janssen, Executive Vice President and Chief Financial Officer, on May 1, 2025 - The report was signed by Ann D. Janssen, Executive Vice President and Chief Financial Officer, on May 1, 2025[152](index=152&type=chunk)

Financial Performance - EOG Resources reported total revenue of $5.669 billion in Q1 2025, a slight increase from $5.585 billion in Q4 2024[3]. - Adjusted net income for Q1 2025 was $1.586 billion, or $2.87 per share, compared to $1.535 billion, or $2.74 per share in Q4 2024[3][5]. - Total operating revenues for 2024 reached $23,698 million, with a quarterly total of $6,123 million in Q1[50]. - Net income for 2024 was $6,403 million, translating to a diluted net income per share of $11.25[50]. - Operating income for 2024 was $8,082 million, with Q1 operating income at $2,271 million[50]. - Reported Net Income (GAAP) for Q1 2025 was $1,463 million, resulting in diluted earnings per share of $2.65[64]. - Adjusted Net Income (Non-GAAP) for Q1 2025 was $1,586 million, with diluted earnings per share of $2.87[64]. - For FY 2024, reported Net Income (GAAP) was $6,403 million, with diluted earnings per share of $11.25[69]. - Adjusted Net Income (Non-GAAP) for FY 2024 was $6,612 million, with diluted earnings per share of $11.62[69]. Production and Operations - Crude oil production reached 502.1 MBod in Q1 2025, exceeding the guidance midpoint of 500.0 MBod[7]. - EOG expects to maintain oil production at Q1 2025 levels for the remainder of the year, projecting a 2% growth in oil production and a 5% growth in total production for 2025[13]. - Total crude oil and condensate volumes reached 502.1 MBod, a 2.1 MBod increase from the previous quarter[35]. - Natural gas volumes totaled 2,080 MMcfd, with a 55 MMcfd increase compared to 4Q 2024[35]. - The volume of oil equivalent produced in 2024 was 388.7 million barrels, an increase of 8% from 359.4 million barrels in 2023[84]. Capital Expenditures - EOG's capital expenditures for Q1 2025 were $1.484 billion, with a full-year capital plan now optimized to $6.0 billion, down from previous estimates[5][13]. - Capital expenditures for FY 2025 are guided to be between $5,800 million and $6,200 million, with a midpoint of $6,000 million, compared to $6,226 million in 2024[37]. - Total capital expenditures for 2024 were $6.226 billion, with 1Q 2025 expenditures at $1.484 billion[76]. - Total expenditures (GAAP) for FY 2025 are estimated at $6,653 million, compared to $6,818 million in 2024[37]. Shareholder Returns - The company generated $1.3 billion in free cash flow and declared a regular quarterly dividend of $0.975 per share[5][11]. - The company repurchased 6.2 million shares for $788 million during the quarter, with $5.1 billion remaining on its share buyback authorization[12]. - The company paid dividends totaling $2,087 million in 2024, with quarterly payments of approximately $525 million in Q1 and $533 million in Q3[55]. Costs and Expenses - Cash operating costs per Boe increased to $10.31 in Q1 2025, compared to $10.15 in Q4 2024[3][31]. - Total operating expenses for 2024 amounted to $15,616 million, with Q1 expenses at $3,852 million[50]. - Total operating expenses for Q1 2025 were $3,810 million, down from $3,993 million in Q4 2024, showing a decrease of 4.6%[82]. - The company reported a total operating cost per Boe (including total exploration costs) of $25.82 in 2024, compared to $25.10 in 2023[86]. Market Conditions - Benchmark price for oil (WTI) was $71.42 per Bbl, compared to $70.28 in the previous quarter[35]. - The benchmark price for WTI crude oil is projected at $75.72 per barrel, down from $94.23 per barrel in 2022[37]. - Average crude oil prices in the United States for 2024 were $77.42 per barrel, with Q1 averaging $78.46[51]. - Average natural gas prices in the United States for 2024 were $2.17 per Mcf, with Q1 averaging $2.10[51]. Financial Position - The debt-to-total capitalization ratio was 13.8% in Q1 2025, reflecting a stable financial position[3]. - Long-term debt decreased from $3,757 million in Q1 2024 to $3,464 million in Q4 2025, indicating a reduction of approximately 7.8%[54]. - Total stockholders' equity was $29,516 million in December 2025, slightly up from $28,636 million in March 2024, representing an increase of about 3.1%[54]. - Net debt as of March 31, 2025, was $(1,855) million, an improvement from $(2,340) million in December 2024[79]. Strategic Initiatives - EOG is focused on maximizing reserve recoveries from existing and future oil and gas projects, with an emphasis on cost-mitigation initiatives[43]. - The company aims to economically develop its acreage and achieve anticipated production levels while controlling drilling and operating costs[43]. - EOG's ability to integrate acquired properties and accurately estimate reserves and costs is crucial for future success[43]. - The company is monitoring cybersecurity threats that could disrupt operations and affect business continuity[43]. Risks and Uncertainties - EOG's forward-looking statements include expectations regarding future financial performance, production levels, and capital expenditures, but these are subject to various risks and uncertainties[42]. - The company faces potential impacts from government regulations, including climate change-related policies and tax laws, which could affect operations and costs[43]. - EOG's financial performance may be influenced by changes in commodity prices, foreign currency exchange rates, and global economic conditions[48].