EOG Resources(EOG) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $5.847 billion, an increase from $5.478 billion in Q2 2025[4] - Net income for Q3 2025 was $1.471 billion, or $2.70 per share, compared to $1.345 billion, or $2.46 per share in Q2 2025[4] - Operating income decreased from $8.1 billion in 2024 to $5.4 billion in 2025[45] - Net income for 2024 was $6.4 billion, declining to $4.3 billion in 2025[45] - Reported Net Income (GAAP) for Q3 2025 was $1,824 million, resulting in an Adjusted Net Income (Non-GAAP) of $1,821 million, with diluted earnings per share of $2.71[60] - For Q2 2025, Reported Net Income (GAAP) was $1,751 million, leading to an Adjusted Net Income (Non-GAAP) of $1,649 million, with diluted earnings per share of $2.32[62] - In Q1 2025, Reported Net Income (GAAP) was $1,877 million, with an Adjusted Net Income (Non-GAAP) of $2,031 million, resulting in diluted earnings per share of $2.87[64] - For FY 2024, Reported Net Income (GAAP) was $8,218 million, while Adjusted Net Income (Non-GAAP) reached $8,477 million, with diluted earnings per share of $11.62[67] Cash Flow and Expenditures - Generated $1.4 billion in free cash flow and returned nearly $1.0 billion to shareholders through dividends and share repurchases[5][8] - Cash Operating Costs for Q3 2025 were $2.00 per Boe, an increase from $1.80 per Boe in Q2 2025[1] - Total Cash Operating Costs per Boe for Q3 2025 were $20.27, slightly higher than $20.25 in Q2 2025[71] - Net Cash Provided by Operating Activities (GAAP) for 2025 was $7,432 million, with Adjusted Cash Flow from Operations (Non-GAAP) at $8,340 million[78] - Free Cash Flow (Non-GAAP) for 2025 totaled $3,685 million, reflecting strong operational performance[78] - The company incurred $5,967 million in net cash used in investing activities for the year 2024[50] - The company reported a total of $12,143 million in net cash provided by operating activities for the year 2024[50] Production and Operations - Crude oil production reached 534.5 MBod, exceeding the guidance midpoint of 532.4 MBod[6][22] - In Q3 2025, total crude oil and condensate volumes reached 534.5 MBod, exceeding guidance by 2.1 MBod and up from 504.2 MBod in Q2 2025[33] - Natural gas liquids volumes totaled 309.3 MBbld, surpassing guidance by 4.3 MBbld, and significantly increased from 258.4 MBbld in Q2 2025[33] - Total crude oil equivalent volumes were 1,301.2 MBoed, exceeding guidance by 7.9 MBoed, and up from 1,134.1 MBoed in Q2 2025[33] - The company expects natural gas volumes in the U.S. for Q4 2025 to be between 2,740 MMcfd and 2,840 MMcfd, with a midpoint of 2,790 MMcfd[34] - For Q4 2025, crude oil and condensate volumes are guided to be between 542.5 MBod and 547.5 MBod, with a midpoint of 545.0 MBod[34] Capital Expenditures and Investments - Capital expenditures for Q3 2025 totaled $1.648 billion, slightly below the guidance midpoint of $1.650 billion[6] - The guidance for total capital expenditures for FY 2025 is between $6,200 million and $6,400 million, with a midpoint of $6,300 million[34] - The company made significant investments in oil and gas properties, totaling $5,353 million for the year 2024[50] - Total Capital Expenditures (Non-GAAP) for FY 2023 were $6,041 million, compared to $4,607 million in FY 2022, marking a 31% increase[80] Debt and Equity - Net debt increased to $4.164 billion, with a net debt-to-total capitalization ratio of 12.1%[4] - The net debt-to-total capitalization ratio was reported at 30%[45] - Long-term debt increased significantly from $3,757 million in March 2024 to $7,667 million by September 2025, indicating a rise of 104.8%[49] - Debt-to-Total Capitalization (GAAP) ratio increased to 20.3% in September 2025 from 12.7% in June 2025[82] Market Conditions and Risks - The average benchmark price for WTI crude oil was $64.95 per barrel, compared to $71.42 in Q2 2025, reflecting a decrease of 9.3%[33] - EOG's future financial position and performance are subject to risks including commodity price fluctuations and operational costs[1] - The company anticipates benefits from the acquisition of Encino, although integration risks exist[1] - The effective income tax rate for Q3 2025 was 19.4%, lower than the guidance of 20.5%[33] Shareholder Returns - The company declared a regular dividend of $1.02 per share, representing an indicated annual rate of $4.08 per share[10] - EOG committed to returning 89% of its estimated annual free cash flow to shareholders, with potential for additional returns[8] - The company declared dividends of $2.97 per share for 2025, compared to $3.70 per share in 2024[45]