stockrowWhat it does
EOG Resources is an oil and natural-gas exploration and production company founded in 1999 and headquartered in Houston. Ezra Y. Yacob is Chairman of the Board and Chief Executive Officer.
The company finds hydrocarbon-bearing acreage, drills wells, develops fields and sells the crude oil and condensate, natural gas liquids (NGLs) and natural gas that those wells produce. Crude oil and condensate are liquid hydrocarbons; NGLs are liquids separated from natural gas; and natural gas is sold mainly through pipelines. EOG is an independent, non-integrated producer, meaning its operations are focused on finding and producing hydrocarbons rather than owning a refining business.
Its principal producing areas are U.S. basins, with activity also offshore Trinidad and exploration or appraisal activity in Bahrain and the United Arab Emirates. At December 31, 2025, it had estimated net proved reserves of 5,514 million barrels of oil equivalent (MMBoe). Crude oil and condensate accounted for 1,905 million barrels, and natural gas for 2,099 MMBoe under the company’s conversion method.
EOG develops acreage through drilling programs, particularly horizontal wells that run through underground rock formations. It uses seismic data, reservoir models, drilling equipment and completion techniques to identify and develop prospects. Its stated operating approach emphasizes internally generated drilling prospects, production economics, operating costs, safe operations and environmental performance.
How it makes money
EOG earns revenue by selling production from its wells and, in some cases, by gathering, processing and marketing hydrocarbons. Its four reported revenue categories in FY2025 were crude oil and condensate, gathering, processing and marketing, natural gas, and natural gas liquids (NGLs). Crude oil and condensate was the largest category at $12.5 billion, or 55.4% of revenue. Gathering, processing and marketing produced $4.9 billion, while natural gas revenue was $2.8 billion and natural gas liquids revenue was $2.4 billion.
The company’s FY2025 net income was $4,980 million. No quarterly total is provided here.
Sales are primarily priced at market prices or location-specific indices rather than at a fixed company-set price. U.S. crude oil is sold at Gulf Coast, Cushing, Permian, Northeast and Midwest locations, as well as at the Port of Corpus Christi for export. Natural-gas prices are primarily linked to spot prices at the ultimate sales point, although some gas sold to a liquefaction facility near Corpus Christi can be priced against the Platts Japan Korea Marker or NYMEX Henry Hub price. NGLs and purity products are sold at prevailing market prices.
This makes the underlying revenue stream recurring in the sense that producing wells generate volumes for sale, but the dollar value varies with commodity prices, production volumes, transport access and sales locations. The company has commitments to deliver fixed quantities of future crude oil, purity products and natural gas from available reserves. It also uses commodity derivatives from time to time to manage exposure to price fluctuations.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Crude Oil and Condensate | $12.5 billion | 55.4% | −10.2% |
| Gathering, Processing and Marketing | $4.9 billion | 21.8% | −15.3% |
| Natural Gas | $2.8 billion | 12.4% | 79.9% |
| Natural Gas Liquids | $2.4 billion | 10.5% | 12.8% |
Customers and how it sells
EOG sells hydrocarbons to refiners, marketers, downstream buyers and gas customers. Two purchasers in the crude-oil refining industry each accounted for more than 10% of its combined crude oil and condensate, NGL, natural-gas, and gathering, processing and marketing revenue during 2025. The company does not identify those purchasers by name and states that it does not believe losing any one purchaser would materially harm its financial condition or results.
The United States accounted for $22.3 billion, or 98.4%, of FY2025 revenue. Trinidad contributed $359.0 million, or 1.59%, while other international revenue was $4.0 million. About 99% of net proved reserves were in the United States and 1% were in Trinidad at December 31, 2025.
EOG’s U.S. crude oil is mainly transported by pipeline to Gulf Coast, Cushing, Permian, Northeast and Midwest markets; remaining volumes can be sold locally. It also sells some crude oil at the Port of Corpus Christi for export. Most U.S. natural gas moves by pipeline to locations across the United States and the Dawn Hub in Ontario, with other volumes sold locally. Trinidad natural gas is sold to the National Gas Company of Trinidad and Tobago Limited and its subsidiary, while Trinidad crude oil and condensate are sold to Heritage Petroleum Company Limited and BP Trinidad and Tobago LLC.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $22.3 billion | 98.4% | −4.78% |
| Trinidad | $359.0 million | 1.59% | 15.4% |
| Other International | $4.0 million | 0.02% | — |
Suppliers and costs
EOG’s cost base includes finding and developing acreage, drilling and completing wells, operating producing properties, gathering and processing hydrocarbons, transporting production, environmental compliance and corporate costs. It is not a manufacturing business with raw-material inputs in the conventional sense; drilling rigs, completion crews, pipelines, processing facilities, equipment, sand and specialized technical labor are operational inputs.
The company uses independent drilling contractors and other third-party service contractors. It can enter agreements with service providers to secure the availability and cost of drilling and completion services when those arrangements are available and advantageous. EOG also has a self-sourced sand program intended to provide supply certainty for well completions. No sole-source supplier is identified.
During 2025, EOG funded $13.6 billion in exploration and development and other property, plant and equipment expenditures, excluding asset retirement obligations. For 2026, it anticipates capital expenditures of approximately $6.3 billion to $6.7 billion, excluding property acquisitions and specified other items. Its costs and capital needs can be affected by inflation, tariffs, service availability, operating conditions, regulation and weather.
- Revenue$22.6B
- Research and development−$285.0M
- Selling, general and administrative−$10.7B
- Other operating costs−$5.3B
- Operating income$6.4B
Competitive position
EOG competes with major integrated oil and gas companies, government-affiliated oil and gas companies and other independent producers. The competition covers acquiring leases, licenses, concessions, properties and reserves, as well as obtaining facilities, equipment, materials, services and specialist employees needed to explore, develop, produce, market and transport hydrocarbons. It also faces competition from renewable and other alternative energy sources for end-market energy demand.
Some competitors have greater financial and other resources, established positions or governmental relationships in areas where EOG may seek entry. These advantages can affect bids for drilling rights and access to services, facilities, equipment, materials and personnel. Larger rivals can also have greater capacity to respond to changes in worldwide commodity prices, output levels and the availability and cost of alternative fuels.
No individual oil and gas competitor is identified in the provided company business description. ConocoPhillips is named only in a later comparative market-multiple fact, not as an operating competitor.
Our reading: EOG’s operating moat is moderate rather than exclusive: its internally generated prospects, technical work, horizontal-drilling capabilities and owned gathering or processing systems can support cost control and execution, but the company competes for the same acreage, infrastructure, services and people as better-resourced producers. [item1] [item7]
Our reading: Its market access is supported by pipeline links and multiple sales locations, but prices are largely market-based, so marketing reach does not remove commodity-price exposure. [item1]
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| ConocoPhillips | Comparative market-multiple reference | Medium |
Growth opportunities
EOG’s growth plan centers on developing its U.S. acreage, improving well productivity and adding drilling inventory. The company’s principal near-term U.S. areas are the Delaware Basin, Eagle Ford, Dorado gas and Utica plays. It expects U.S. crude oil and total crude-oil-equivalent production to increase in 2026 from 2025 levels, while continuing initiatives intended to improve drilling, completion and operating efficiency.
The company plans net well completions in 2026 across its listed U.S. operating areas. The Delaware Basin is expected to have approximately 300 net completions, South Texas 155, the Appalachian Basin 85 and the Rocky Mountain area 45. EOG also expects to spend part of its 2026 capital program on acreage leasing, new prospects, gathering and processing infrastructure, transportation infrastructure and environmental projects.
The August 2025 acquisition of Encino Acquisition Partners, LLC added 675,000 core net acres in the Utica play. Internationally, EOG expects to complete Trinidad’s Mento drilling program, complete and install the Coconut Platform and supporting pipelines, and advance exploration, appraisal and development opportunities. In Bahrain, exploratory wells are expected to be completed in 2026. In the United Arab Emirates, the company is drilling to explore and appraise unconventional oil potential in UCO3.
EOG’s production-growth plans depend on capital allocation, drilling results, operating efficiencies, service availability and commodity prices. It expects to fund exploration, development and exploitation activities primarily with internally generated cash flows and cash on hand.
- $18.6BFY2021
- $25.7BFY2022
- $24.2BFY2023
- $23.7BFY2024
- $22.6BFY2025
Structural risks
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Commodity prices: Crude oil, NGL and natural-gas prices are volatile. A substantial and extended decline can materially and adversely affect the company, while market prices directly affect operating cash generation, financial position and results.
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Drilling and operating hazards: Drilling involves conditions and events outside the company’s control, including equipment failures, well-control incidents, fires, explosions, leaks, spills, pipeline failures and adverse weather. These can cause injury, environmental damage, production interruptions, remediation costs and liabilities.
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Regulation and permitting: Federal, state, tribal and foreign rules can affect drilling permits, leasing, hydraulic fracturing, flaring, royalties, taxes, methane and other emissions, water and waste handling, and transportation. New restrictions or compliance requirements could raise costs or delay development.
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Infrastructure, services and labor: Operations depend on gathering, processing, compression, storage, transportation and export facilities, as well as rigs, hauling, equipment and qualified personnel. Availability, capacity, terms and costs can constrain activity or increase costs.
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International operations: Trinidad, Bahrain and United Arab Emirates activities are exposed to country-specific risks, including taxes and royalties, unfamiliar or changing laws, currency restrictions, contract changes and potential expropriation of assets.
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Climate and energy-transition exposure: Policies, litigation, emissions rules and shifts toward alternative energy can raise operating costs or reduce demand for hydrocarbon products, affecting the prices received for production.
Bottom line
Our reading
Our reading: EOG is a U.S.-centered independent producer whose cash generation depends chiefly on selling crude oil, NGLs and natural gas from a broad base of operated acreage, with crude oil and condensate its largest revenue category. [item1] [product.crude_oil_and_condensate.fy2025]
Our reading: Its development model combines internally generated prospects, horizontal-well execution and market access through pipelines and owned facilities, while its economics remain directly exposed to commodity prices, drilling outcomes, capital requirements and regulation. [item1] [item7] [item1a]
Our reading: The Encino acreage acquisition, planned U.S. completions and selected international projects provide development avenues, but nearly all revenue and proved reserves remain tied to the United States. [item1] [item7] [segment.united_states.share.fy2025]