EOG Q2 Earnings Beat Estimates on Higher Oil Equivalent Production

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].