EOG Resources, Inc. EOG reported third-quarter 2025 adjusted earnings per share of $2.71, which beat the Zacks Consensus Estimate of $2.43. The bottom line, however, decreased from the year-ago quarter’s $2.89.
Total quarterly revenues of $5.85 billion missed the Zacks Consensus Estimate of $5.95 billion. The top line also declined from $5.97 billion in the prior-year quarter.
The better-than-expected quarterly earnings were driven by higher oil-equivalent production volumes. This was partially offset by lower price realization.
We are now approaching the end of the earnings season, with energy giants like Exxon Mobil Corporation XOM and Chevron Corporation CVX already having reported. Both ExxonMobil and Chevron topped the Zacks Consensus Estimate for earnings. For more details, read our blogs: ExxonMobil Beats Q3 Earnings Estimates, Boosts Dividend Again & Chevron Q3 Earnings Beat Estimates as Production Hits Record.
EOG’s Operational Performance
In the quarter under review, total volumes increased 21% year over year to 119.7 million barrels of oil equivalent (MMBoe), driven by higher contributions from its multi-basin portfolio, comprising Delaware Basin, Eagle Ford and Utica. Our estimate for the same was pinned at 118.8 MMBoe.
Crude oil and condensate production totaled 534.5 thousand barrels per day (MBbls/d), up almost 8.4% from the year-ago quarter’s level. The figure beat our estimate of 532.9 MBbls/d.
NGL volumes increased 21.6% year over year to 309.3 MBbls/d. The figure beat our estimate of 305.8 MBbls/d.
Natural gas volume rose to 2,745 million cubic feet per day (MMcf/d) from the year-earlier quarter’s 1,970 MMcf/d. The reported figure also beat our estimate of 2,712.8 MMcf/d.
The average price realization for the company’s crude oil and condensates decreased 14.3% year over year to $65.95 per barrel.
Natural gas was sold at $2.80 per Mcf, reflecting a year-over-year improvement of almost 37%.
Operating Cost of EOG
In the third quarter, lease and well expenses increased to $431 million from $392 million a year ago.
The company reported gathering, processing and transportation costs of $587 million, higher than the year-ago quarter’s $445 million. Exploration costs increased from $43 million a year ago to $71 million. As such, total operating expenses were $4.01 billion, higher than $3.88 billion recorded a year ago.
Liquidity Position & Capital Expenditure of EOG
As of Sept. 30, 2025, EOG Resources had cash and cash equivalents worth $3.5 billion and long-term debt of $7.7 billion. The current portion of the long-term debt totaled $27 million.
In the reported quarter, the company generated $1.4 billion in free cash flow. Capital expenditure amounted to $1.65 billion.
Guidance
For 2025, EOG expects total production of 1,211.5 to 1,234.4 MBoe/d. It also anticipates a production of 1,346.4-1,386.3 MBoe/d for the fourth quarter. The upstream giant currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
