EOG

It has been about a month since the last earnings report for EOG Resources (EOG). Shares have added about 11% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is EOG Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. EOG Resources, Inc. reported second-quarter 2026 adjusted earnings of $5.07 per share, up 118.5% year over year and above the Zacks Consensus Estimate of $5.01 by 1.2%. Revenues jumped 57.4% to $8.62 billion and beat the consensus mark of $7.87 billion by 9.6%. The strong quarter reflected higher oil prices and impressive production. Total production increased 24.4% from 1,134.1 thousand barrels of oil equivalent per day (MBoE/D) in the year-ago quarter. Our model predicted a 22.4% year-over-year increase in the metric for the June quarter of this year. Crude oil and condensate output rose 8.8%, while natural gas liquids volumes soared 34.2% to 346.8 thousand barrels per day (MBbl/D). Natural gas production climbed 38.6% to 3,089 million cubic feet per day (MMcf/D). The company also established oil production in the United Arab Emirates after successful tests of two one-mile lateral wells, each averaging more than 25,000 barrels of cumulative oil production during the first 30 days. The composite realized price for crude oil and condensate was $98.15 per barrel, up 51.4% from $64.82 a year earlier. Natural gas liquids fetched $24.41 per barrel, a 7.5% increase. The composite natural gas price declined 2.4% to $2.89 per Mcf. Even so, stronger oil realizations more than offset the softer gas price and supported a sharp increase in crude oil and condensate revenues to $4.90 billion from $2.97 billion. Lease and well expenses increased to $467 million from $396 million, while gathering, processing and transportation costs rose to $676 million from $455 million. The increases reflected the company's larger production base. On a per-unit basis, lease and well costs improved to $3.64 per Boe from $3.84. Gathering, processing and transportation costs rose to $5.27 per Boe from $4.41, while non-GAAP cash operating costs increased to $10.57 per Boe from $9.94. Adjusted cash flow from operations reached $4.39 billion, up from $2.50 billion in the prior-year period. After $1.59 billion of capital expenditures, free cash flow totaled $2.80 billion versus $973 million a year ago. EOG paid $540 million in regular dividends and repurchased $1.29 billion of shares during the June quarter. Cash and cash equivalents were $4.91 billion at June 30, 2026, up from $3.85 billion at the end of the first quarter. Current and long-term debt was $7.93 billion. Net debt declined to $3.02 billion from $4.08 billion sequentially. The net debt-to-total capitalization ratio improved to 8.7% from 11.7%, preserving financial flexibility while the company continued substantial shareholder distributions. For the third quarter, EOG expects crude oil and condensate production of 546 to 551 MBbl/D and total output of 1,389.7 to 1,434.7 MBoE/D. Capital expenditures are projected at $1.6 to $1.7 billion. For 2026, the company forecasts crude oil and condensate volumes of 546.3 to 551.1 MBbl/D and total production of 1,378.3 to 1,423.1 MBoE/D. Full-year capital expenditures are expected to range from $6.3 billion to $6.7 billion, while management projects oil production to increase 5% and total production 14% in 2026. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 6.42% due to these changes. Currently, EOG Resources has a strong Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, EOG Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. EOG Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, EQT Corporation (EQT), a stock from the same industry, has gained 8.8%. The company reported its results for the quarter ended June 2026 more than a month ago. EQT reported revenues of $1.81 billion in the last reported quarter, representing a year-over-year change of +13.2%. EPS of $0.39 for the same period compares with $0.45 a year ago. EQT is expected to post earnings of $0.49 per share for the current quarter, representing a year-over-year change of -5.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -12.2%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for EQT. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report EQT Corporation (EQT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. EOG Resources stock has delivered strong returns over the past few years, yet the latest valuation checks still suggest the shares lean cheap rather than fully priced in. With the stock at US$153.05 and sentiment already supported by recent gains, investors are weighing whether the current price still leaves meaningful upside according to the broader metrics. Over the last 5 years, EOG Resources has returned 178.3%, which puts the recent share price in the context of a strong longer term run that investors now need to justify with ongoing cash generation. The key support for the valuation is the market's view that EOG Resources can keep converting its asset base into solid cash flows. A major risk is that commodity price swings or higher capital needs could pressure returns on that investment. EOG Resources screens as undervalued on most checks, with 5 of 6 valuation metrics pointing to a cheaper profile than many investors might infer from the share price alone. The issue now is whether EOG Resources is still offering a genuine value opportunity after this multi year run or whether most of the upside is already reflected in the current price. Find out why EOG Resources' 30.8% return over the last year is lagging behind its peers. The P/E ratio is a useful way to gauge how much investors are paying for each dollar of EOG Resources earnings. It is especially relevant here because the company is profitable and widely covered by the market. EOG Resources trades on a P/E of 11.7x, which is slightly below the Oil and Gas industry average of 13.0x and well below the broader peer group average of 21.5x. The company specific fair P/E ratio, which reflects its mix of growth expectations, profitability and risks, is estimated at 19.3x. That is meaningfully higher than where the stock currently trades, so the market is pricing EOG Resources at a discount to what this framework suggests might be appropriate for its earnings profile. This gap implies that, based solely on earnings, investors are not paying a premium even after the strong long term share price performance already on the table. On the P/E multiple, EOG Resources stock appears undervalued compared with both its tailored fair ratio and broader peer benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for EOG Resources are designed to connect that valuation gap with clear, testable stories about what would need to happen to EOG Resources' growth, margins and earnings for the stock to be worth materially more or less than today’s price, and they sit on the company’s Community page. Each narrative links a specific set of catalysts and risks to an implied fair value so you can track which version of events appears to be unfolding over time. One of the top community narratives on EOG Resources: 19% undervalued Read one of the top narratives on EOG Resources Do you think there's more to the story for EOG Resources? Head over to our Community to see what others are saying! EOG Resources still screens as undervalued on market multiples, even after a strong 5 year run. The current debate is less about whether the stock looks cheap on simple earnings ratios and more about why that discount exists. The key question is whether EOG Resources can keep turning its asset base into reliable cash flows without needing much heavier spending or absorbing a hit from weaker commodity prices. That trade off between discounted valuation and real business risk is what decides whether today’s pricing reflects a genuine opportunity or a fair caution flag. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EOG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 10:00 a.m. ET Vice President of Investor Relations - Pearce Hammond Chairman and Chief Executive Officer - Ezra Yacob Chief Operating Officer - Jeff Leitzell Chief Financial Officer - Ann Janssen Senior Vice President, Exploration and Production - Keith Trasko Operator: Good day, everyone, and welcome to EOG Resources Second Quarter 2026 Earnings Results Conference Call. As a reminder, this call is being recorded. For opening remarks and introductions, I will turn the call over to EOG Resources' Vice President of Investor Relations, Mr. Pearce Hammond. Please go ahead, sir. Pearce Hammond: Good morning, and thank you for joining us for the EOG Resources Second Quarter 2026 Earnings Conference Call. An updated investor presentation has been posted to the Investor Relations section of our website, and we will reference certain slides during today's discussion. A replay of this call will be available on our website beginning later today. As a reminder, this conference call includes forward-looking statements. Factors that could cause our actual results to differ materially from those in our forward-looking statements have been outlined in the earnings release and EOG's SEC filings. This conference call may also contain certain historical and forward-looking non-GAAP financial measures. Definitions and reconciliation schedules for these non-GAAP measures and related discussion can be found on the Investor Relations section of EOG's website. In addition, any reserve estimates on this conference call may include estimated potential reserves as well as estimated resource potential not necessarily calculated in accordance with the SEC's reserve reporting guidelines. Participating on the call this morning are Ezra Yacob, Chairman and Chief Executive Officer; Jeff Leitzell, Chief Operating Officer; Ann Janssen, Chief Financial Officer; and Keith Trasko, Senior Vice President, Exploration and Production. Here's Ezra. Ezra Yacob: Thanks, Pearce. Good morning, and thank you for joining us. EOG delivered exceptional second quarter results with adjusted earnings per share, adjusted cash flow per share and free cash flow all reaching record levels. Robust oil prices provided a meaningful tailwind, but these results reflect something more durable: consistent high-quality execution across the company. We expect that operational momentum to carry through the second half of the year. Our low-cost multi-basin asset base and peer-leading balance sheet place EOG in a strong position to navigate today's dynamic macro environment. Consistent with our commitment to disciplined capital allocation and enhancing shareholder value and underscoring our confidence in the strength of EOG's business, we returned just over $1.8 billion to shareholders in the second quarter through our regular dividend and opportunistic share repurchases, reflecting our conviction in EOG's value and our growing opportunity set. Comparing our performance to a recent quarter with similar oil prices offers a useful lens for appreciating how substantially EOG's business has improved. Since the first quarter of 2022, when the Russia-Ukraine war broke out, EOG has grown oil production 22%, total production by 60%, adjusted cash flow per share by 44% and the regular dividend by 36%. This impressive progress is underpinned by several achievements. Over the same period, we forged a stronger path to future value creation by improving our multi-basin portfolio with 2 additional foundational assets, expanding a deep exploration pipeline, including high-quality international unconventional opportunities and enhancing our marketing flexibility and end market diversification. We accomplished all of this while preserving a pristine balance sheet and paying a growing regular dividend, which has been stress-tested across a range of commodity price scenarios. Taken together, these accomplishments are a clear demonstration of EOG's business model in action. Turning to the oil macro outlook. Supply disruptions associated with the Iran conflict continue to weigh on global inventories with the trajectory and duration of the conflict remaining key variables in shaping near-term market conditions. While we expect oil prices to remain volatile given the fluid nature of the war, we remain constructive on oil market fundamentals for several reasons. First, the disruption of crude and product supply from the Middle East has resulted in a meaningful reduction in commercial inventories and strategic petroleum reserves. Second, while reduced demand has partially offset supply loss in the near term, we do not view this as a structural shift. Rather, it reflects temporary rationing that we expect to normalize over time. Third, energy security has emerged as a strategic priority across many nations, and we expect this to translate into structurally higher oil demand over time as countries look to strengthen their energy positions and restock both commercial and strategic petroleum reserves. Taken together, these factors support oil prices remaining above mid-cycle levels in both the near and medium term with price volatility likely skewed to the upside. On natural gas, we continue to see the North American market evolve from a seasonal commodity story into a strategic energy resource. While storage levels will continue to fluctuate year-to-year, the underlying demand trajectory is strengthening as LNG exports, electricity demand, industrial growth and grid reliability increasingly compete for domestic supply. Our medium- to long-term outlook remains constructive, and our deliberate investment in building a low-cost natural gas position with access to premium markets and as a complement to our core oil business leaves us well positioned to capitalize on this demand growth. Regardless of commodity prices, EOG's commitment is to deliver sustainable value creation through industry cycles. We pursue that by focusing on being among the highest return and lowest cost producers, committed to strong environmental performance and playing a significant role in the long-term future of energy. This mission rests on four pillars: capital discipline, operational excellence, sustainability and culture. Today, I want to discuss in greater detail one area of our operational excellence pillar that is a significant differentiator versus peers: organic exploration. Organic exploration has been central to EOG's success since the company's founding. By identifying opportunities early and building positions ahead of broader market interest, we are able to create significant long-term returns. Supported by a proprietary database and the knowledge gained from thousands of wells drilled across a wide range of geologic settings, EOG has a proven ability to discover and develop new resource opportunities. Today, that expertise is demonstrated in international unconventionals, where EOG is a first-mover working in close partnership with ADNOC in the UAE and Bapco in Bahrain. For national oil companies looking to develop their unconventional resources, we offer a compelling partnership. EOG brings technical leadership, a proven track record and the ability to accelerate their development programs. Our UAE exploration program provides a convincing proof point. We drilled, completed and brought online 2 1-mile lateral wells in June and are extremely pleased with the results. During the first 30 days of production operations, the wells produced on average over 25,000 barrels of oil per well. Both wells are naturally flowing up casing and will be placed on artificial lift in the coming weeks. Early well results are exceeding our expectations during the natural flow period. There is still meaningful work ahead in the UAE given the size of the 900,000-acre concession, but we are extremely encouraged by what we are seeing in the early days of this important project, confirming that EOG's competitive advantage is not confined to a specific geographical location. It is embedded in our technical expertise and resource development approach. On the domestic side, we continue to run a robust exploration program, testing multiple plays across the U.S. Each domestic division is actively advancing its own pipeline of exploration prospects, and we look forward to sharing updates as those programs mature. In summary, we're off to a strong start in 2026 and are well positioned to execute in the current macro environment and beyond. We remain focused on delivering sustainable free cash flow, maintaining operational excellence and creating long-term value for shareholders. I'll now turn it over to Ann for details on our financial performance. Ann Janssen: Thank you, Ezra. EOG delivered another quarter of outstanding financial results, which speak to the durability and discipline at the core of our business model. In the second quarter, we delivered adjusted earnings per share of $5.07 and adjusted cash flow from operations per share of $8.29, generating free cash flow of $2.8 billion, a record performance and a direct reflection of our low-cost operating structure and capital efficiency. We returned just over $1.8 billion to shareholders during the second quarter, $540 million through our regular dividend and $1.3 billion in share repurchases. The foundation of our cash return remains our regular dividend, which we have not cut or suspended in 28 years. This is an impressive track record in any industry and demonstrates our commitment to return value back to shareholders. We continue to supplement the regular dividend with share buybacks. With $11.7 billion remaining under the share repurchase authorization at June 30, we have substantial capacity for continued opportunistic buybacks. Through the first half of the year, total shareholder returns stand at approximately $2.8 billion, and we reiterate our commitment to returning at least 70% of annual free cash flow to shareholders -- to investors in 2026. Our balance sheet remains a strategic asset. We closed the quarter with $4.9 billion in cash, up approximately $1.1 billion from the end of the first quarter, and with net debt of $3 billion. This financial strength continues to provide a stable foundation as we navigate dynamic macro environment shifts. At strip pricing and using guidance midpoints, our 2026 plan generates $8 billion in free cash flow. Our 2026 program funds production growth, domestic and international exploration and a peer-leading regular dividend, all at a WTI breakeven price below $50 per barrel. EOG's financial foundation has never been stronger. We are generating significant free cash flow, returning meaningful cash to shareholders and maintaining financial flexibility to capitalize on opportunities as they emerge. This combination of operational excellence, a low-cost structure and financial discipline positions us exceptionally well, not only for 2026, but for sustained long-term value creation. With that, I'll turn it over to Jeff to discuss our operating results. Jeffrey Leitzell: Thanks, Ann. I'd like to begin by recognizing our employees for their outstanding performance and execution. In the second quarter, we delivered strong operational results, highlighted by lower-than-expected LOE and GP&T expenses and total company volumes higher than our guidance midpoint. Total company volumes included nearly 500 barrels of oil per day, primarily from initial production from our UAE exploration wells as reported in our Other International segment. Second quarter capital expenditures came in below the guidance midpoint, primarily driven by shifts in operational timing, largely in the Gulf states. For the full year 2026, we expect to deliver 5% oil production growth and 14% total production growth with capital expenditures unchanged at $6.5 billion. As Ezra previously highlighted, we are extremely pleased with our exploration efforts in the UAE. Along with strong initial well results, we also saw exceptional operational performance. For the balance of the year in the UAE, we are targeting lateral lengths in excess of 2 miles and will be completing additional wells. We have also successfully replicated key elements from our domestic operations playbook to realize immediate cost reductions in the UAE. An example includes utilizing in-basin surface sand processing, which can be located directly adjacent to our well locations, thereby minimizing transportation and processing costs of our future completions. In Bahrain, operations have been intermittent due to the ongoing conflict. While we hope to have results in the second half of the year, our priority is the safety of our employees, contractors and partners in the region. Turning to domestic operations. Our Delaware Basin team continues to execute well on their development strategy. Well performance has been in line with our expectations. We continue to develop this world-class asset at the right pace, resulting in continued operational improvements. We are realizing drilling and completion efficiencies relative to last year. Year-to-date drilling feet per day is up 13%, and year-to-date completed lateral feet per day is up 5%. These efficiency gains are contributing to well cost reductions as year-to-date, we have been able to reduce direct well costs by $15 per foot with direct well costs averaging less than $710 per foot. In addition, our Janus gas processing plant continues to deliver outstanding results. This strategic infrastructure project came online last year with current capacity of 300 million cubic feet per day and is expandable by an additional 300 million cubic feet per day. Year-to-date, Janus plant utilization is averaging greater than 99%, and we are realizing a netback uplift of more than $0.65 per Mcf, helping support our strong margins in the Delaware Basin. Eagle Ford operations are also performing strongly this year. Year-to-date, we have been able to increase drilled feet per day by 4% and completed lateral feet per day by 11% compared to 2025. These efficiency gains have helped drive further well cost reductions. We have reduced Eagle Ford direct well costs to less than $525 per foot, which is the lowest in our long history in the play. In the second quarter, we drilled the Aspen L 11H, which is the longest lateral drilled in the Eagle Ford to date with a drilled lateral of 24,115 feet or more than 4.5 miles. Each year, we continue to unlock additional resource across the Eagle Ford oil trend through cost reductions as well as through organic leasing and strategic acquisitions. Last year, we acquired approximately 30,000 net acres in Atascosa County. We have since drilled 20 net wells on the acquired acreage with these wells achieving a less than 1-year payout at $65 WTI. This quarter, we are announcing an exciting Austin Chalk sweet spot in Lavaca County. We utilized our robust understanding of the regional geologic and reservoir model to identify this extension to our Eagle Ford acreage that also achieves a less than 1-year payout at $65 WTI. We have organically leased 60,000 net acres for an average cost of $1,200 per acre and drilled over a dozen wells confirming this high-return prospect. These high-pressure wells offer high deliverability and benefit from our learnings in other basins. We have confidently identified 1 year's worth of 2-mile lateral inventories at current Eagle Ford activity levels. Furthermore, we continue to gather data and evaluate its extent. Further south in Dorado, this low-cost dry gas asset continues to improve. In 2026, we have increased lateral lengths by approximately 16% compared to last year and are further lowering well cost. Year-to-date, direct well costs are less than $700 per foot or 7% lower than last year. In addition, the countercyclical investment in the Verde gas pipeline continues to pay dividends as we are realizing a netback uplift of $0.50 per Mcf year-to-date. In the Utica, our Encino acquisition has been a home run. Number one, we have exceeded our $150 million synergy target ahead of schedule. We have driven direct well costs below $600 per foot and continued reductions in sight. Number three, we continue to push margin expansion through supply chain optimization, including in-basin sand, which should be secured by the end of this year. And number four, EOG's proprietary in-house production optimizers delivered a 5% improvement in base production and a 5% reduction in downtime. In summary, combining the scale of this asset with our technology, technical expertise and operating model has led to stronger capital efficiency and demonstrates the meaningful value created through successful integration and disciplined execution. Turning to the broader service cost environment. There has been slight inflation across various services, but we have been able to mitigate most of it and are still expecting a low single-digit reduction in well costs this year. A perfect example of how we are able to dampen inflation is our in-house drilling motor program, which is generating meaningful value. Since 2023, we have achieved a 70% increase in average drilled footage per motor run. Looking at year-to-date motor performance by basin, average footage per motor run has increased 34% in the Delaware Basin, 43% in the Utica, 20% in the Eagle Ford and 64% in Dorado, in each case compared to third-party motors. The potential savings by eliminating 1 motor failure ranges from $100,000 to $250,000, a meaningful contribution to our overall cost reduction efforts. We enter the second half of 2026 with strong momentum and are well positioned to execute on our full year plan. With that, I'll turn it back to Ezra for closing remarks. Ezra Yacob: Thanks, Jeff. Before we open the line for questions, I want to leave you with 3 thoughts. First, EOG delivered record financial performance in the second quarter. Operations across our foundational assets are executing at a high level, and we expect that momentum to carry through the back half of the year. Second, organic exploration is one of EOG's most important competitive advantages. We identify opportunities early, move decisively and apply the same rigorous data-driven approach that is expanding our U.S. business into new basins around the world. The international unconventional opportunity set is real, and our international operations demonstrate that the EOG model can be successfully applied beyond North America. Third, everything we've discussed today reflects how this company operates, grounded in capital discipline, operational excellence and sustainability, all underpinned by our culture. We appreciate your time and continued interest in EOG. Now let's open it up for questions. Operator: The first question comes from Josh Silverstein from UBS. Joshua Silverstein: On the first quarter update, you had made a shift towards more capital, towards liquids versus gas development, which was clearly the right move for this year. Ezra, in your comments, it sounds like you're still pretty constructive on oil prices. So as you're starting to plan for next year with the forward curve around $70 WTI and $3.35 for Henry Hub, are you continuing down this path and continue to push more capital towards the more oil-prone plays? Ezra Yacob: Josh, that's a great question. So our '26 plan, it remains unchanged from last quarter. We updated the volume guidance, obviously, to reflect year-to-date performance. Last quarter, as you said, we did take advantage of the flexibility across our multi-basin portfolio to reallocate some capital across our foundational assets, which resulted in incremental oil volumes this year, and it also better positioned us for '27. So while I think it's still a little too early to get into specifics on '27, I would say that as we assess oil market fundamentals, we do see the potential need for incremental supply. This is where we sit today. And if this continues to be the case, I would expect our plan for next year to really be reflective of our 3-year scenario, which basically reflects a low single-digit oil growth, and we put some financial metrics on there, assuming kind of a WTI price range of $60 to $80 oil. I would say that we continue to preserve a lot of optionality, and we'll continue to assess all considerations, including the macros as we move throughout the rest of this year and further define our plan for 2027. Joshua Silverstein: Got it. And then maybe just one on the UAE as well. I was hoping to get a little bit more color on next steps and maybe a time line here. I know you're bringing in some artificial lift and then have some longer laterals here. Is there any shot clock that you guys are under now, a certain number of wells that you need to drill to get to a certain point before kind of bringing this into more commercial development? Ezra Yacob: Yes, Josh, that's a great question. I love talking about the UAE this morning. We're extremely excited about our progress in the region. We entered the region because we saw pretty compelling subsurface opportunities with positive production results from prior horizontal development. We were able to partner to come up with some great partners there. And what we've accomplished early in the early stages here, particularly in the UAE, has really reinforced our conviction. Now we do have, I think we've talked about it before, a 3-year exploration phase, and it is a JV structure with where ADNOC has the option to back in. But other than that, we consider this to be in an exploration phase. And so I wouldn't say we're holding ourselves to any strict time lines or strict results. We'll take the data in as it comes. We continue to be active there. And as we move forward, we are looking for some -- these are initial wells in a frontier basin, and so we are looking for not only well results, but how the wells produce over time, how they'll respond to the artificial lift. And then we're looking for some other things. We'd like to delineate a wider range across the 900,000-acre concession. Obviously, it would be difficult to delineate the entire 900,000 acres, but we do have some different geologic environments that we've captured with that concession. And so we'd like to test some repeatability through there. And then we also would like to see how the service industry matures, if they respond as quickly as we're moving such that we can get some additional unconventional equipment into the region. I think the biggest takeaway here is what we've demonstrated so far is that it probably doesn't come to anyone as a big surprise that there is oil in the UAE. But I think most importantly, the way we think about this internally is this isn't just another shale play. What this demonstrates really is the real opportunity that exists for international unconventionals and the real opportunity and competitive advantage we have if we can successfully apply our operating model abroad. Operator: The next question comes from Steve Richardson from Evercore. Stephen Richardson: Ezra, curious on the Chalk and how you think about -- I guess, two points. One was you're talking about it. So should we assume that you're kind of done leasing in this area because you're willing to talk about it? And two, how do you think about capital allocation in South Texas based on Chalk versus the more structural elements there versus what's going on in the legacy foundation in the Eagle Ford? And so maybe the starting point, just think about how you thinking about feathering the Chalk into the development program and what the broader resource opportunity is. Jeffrey Leitzell: Yes, Steve, this is Jeff. I'll just kind of give you a quick update on the Chalk. And as we talked about in our opening remarks, we did. We identified and leased about 60,000 acres in the Austin Chalk. And what I would call that is it's truly a sweet spot. So we are still trying to figure out the extent of it, but we really feel like we've leased up the majority of the sweet spot, and that's why we're able to talk about it right now. And where it sits, it's actually just southeast of our Eastern Eagle Ford acreage, just to kind of give you where the position is on it. So we acquired the acreage primarily through organic leasing, maybe some small acquisitions on average for around $1,200 an acre down there. And to date, so far, we've drilled about 12 really high rate of return wells that confirm that the play has really strong economics that meet our hurdle rates. Currently, we're seeing on the wells that we've drilled payouts of less than 1 year and the returns are over 100% at $65 WTI, which it's competitive. It's kind of right in the middle with our core Eagle Ford asset there. The other thing I'll say to give more detail on the play is it is a little bit more down dip in the Eagle Ford. It does get a little bit more deeper and mature. So it tends to be a little bit more of a combo play with more associated gas. But when you look at total liquids yields, it's very comparable to the Eagle Ford proper there. We've identified in this 600,000 (sic) [ 60,000 ] acre sweet spot, about 125 remaining 2-mile locations. And what that really does is it adds about 1 additional full year of drilling inventory at current pace to our San Antonio division. And as far as from a capital allocation, I think they'll just kind of be equally within our core Eagle Ford development from that aspect. Like I said, we're talking about a sweet spot. So it will just be pretty much in the mix of our standard Eagle Ford and Austin Chalk proper core development will develop over the next handful of years. And when you roll all this up, what I'd just like to say is this really is -- it shows the benefit of the company's decentralized culture and divisions. In each one of our divisions, we're always looking for these new opportunities, play extensions or bypass pay that they can continue to add value in each one of their areas. And then also, we look to leverage our technical and operational expertise. And we really did that in this Austin Chalk sweet spot because moving down south, we really got to lean on kind of our high-temperature, high-pressure operations from Dorado and apply a lot of our learnings there to really push it forward. So it's just another great example of how we leverage our exploration expertise to continue to extend the resource life in each one of our divisions and continue to improve the returns profile of the company. Stephen Richardson: It's great. Thanks for the extra color, Jeff. Ezra, I wonder if I could follow up on international a little bit. It seems like what you're saying is EOG should be a partner of choice for countries or geographies looking at unconventional development. Is it fair to assume that you're in active discussions in other places? And I know EOG has a long history operating internationally, but maybe just give a scope of -- again, I know you're not going to talk about specific areas, but just in terms of those conversations and how they've picked up because I'm sure the well results today will -- people will take notice. Ezra Yacob: Yes, Steve, I appreciate that color. We've always maintained an international exploration program. As you know -- everyone on the call really has followed us for a number of years. We appreciate that support. And so you guys know that we've been in and out of a number of different international opportunity sets, including the Sichuan Basin in China. We had an exploration play a number of years ago in Oman as well. And those things really build upon one another. It was the relationships and some of the technical achievements we made in Oman that really helped kick off the relationship with both Bapco and ADNOC. And I think you're right. I think this will continue to open up opportunities. That's not to say we're not exploring domestically. We actually still have a larger domestic exploration program than international. And part of that reason is because it is a bit of a heavier lift to get an international prospect across the kind of finish line for us. It begins with the quality of the subsurface. We've talked about this before. It needs to have the size and scale and certainly the economics to more than compete with our domestic portfolio. And I'd say that includes potential access to premium markets. The other thing is exceptional partners, geopolitical stability. And if available, we really prefer areas that have existing oilfield services, areas where we can leverage our technologies and expertise and really build out, like I said a few minutes ago, really apply the EOG operating model. So ultimately, we are focused on pursuing additional opportunities that meet both the subsurface and above-ground considerations that ultimately have the scale and economics to compete. Operator: The next question comes from Arun Jayaram from JPMorgan Securities. Arun Jayaram: Ezra, I was wondering if you could perhaps compare and contrast what you're seeing early on in the unconventional oil play in the UAE to U.S. resource plays. Obviously, you've been in quite a few, including the Eagle Ford, Delaware. But perhaps maybe compare what you're seeing from a geological perspective, quality of the rock. Are there any good analogies to talk to about with investors this morning? Keith Trasko: Arun, this is Keith. Yes, we have seen -- I think we've talked about before that the big analog we see in the UAE is a comparison to the Eagle Ford. We see that on the rock type. We see that on the product mix. We had a model going into the UAE play. It was a black oil play and drew analogs from the Eagle Ford. And the well results from our first 2 wells are in line with those expectations, including the GOR and the API. When you just look at what we see in the U.S., we're extremely excited about our domestic exploration efforts. We have multiple exploration projects working in all of our divisions. I think the Austin Chalk addition that we announced this quarter is a great example of how our teams are using successful play analogs and operational capabilities developed across the portfolio to better understand, enhance the economics of new basins like in the UAE and as well as older legacy basins. We also have several unconventional prospects in the Lower 48 working as well as a conventional sandstone prospect in Alaska. So our organic exploration really has always been a core competency for EOG. We've built deep technical expertise, proprietary databases and amass learnings from drilling thousands of wells across multiple rock types. We focus our exploration really on adding to the top of our inventory, elevating the overall quality of the assets rather than just adding resource. I think our track record for exploration kind of speaks for itself. Over the last several years, we've improved the quality of our resource base, expanded our portfolio of foundational assets, including Utica and Dorado, while also expanding the exploration efforts in Bahrain and the UAE. Arun Jayaram: Great. And my follow-up is how -- could you maybe mention how deep these wells are? And one of the questions we've been getting last night was how does EOG see D&C costs in this place evolving over time relative to what we see in the Lower 48. Jeffrey Leitzell: Arun, this is Jeff. I'll touch on the well cost side real quick. The first thing, obviously, we'll point out, which you're very well aware of, is we're real early on in the process here in the UAE. But as in any exploration play, our initial well costs, they'll tend to be a little bit higher starting out, and then we'll work them down over time as we do with all of our plays kind of through the process. A few things that I'd keep in mind is, for the exploration phase right now, we're using many of the service providers already in the region, and they tend to have adequate services and equipment for the exploration phase, but there's definitely many improvements that can be made by utilizing true unconventional services. So that's one thing that we'll kind of look to improve on over time. And then also as we apply EOG's best practices and technical knowledge, we get high-spec rigs, EOG motors, high-rate frac fleets over there, in-basin sand. Once you really apply all these things over time and drill more and more wells, we'll continue to kind of drop down that well cost over time. And then on your overall total depth of this play, obviously, it's 900,000 total acreage, so it does vary a little bit. But I'd say somewhere around the 10,000-foot TVD would probably be a pretty good average to use. Operator: The next question comes from Scott Hanold from RBC Capital Markets. Scott Hanold: A lot of discussion around exploration today, and I'd like to take that maybe a little bit further. And when you look at domestic, I guess, Lower 48 opportunities, like how do you kind of compare and contrast opportunities up in Canada? I mean there's some discussion about EOG maybe looking up there. And what -- when you think about the Lower 48 in Canada specifically, what is your view? Is there too much egress issue? Is the resource good enough? Do you have an opinion there? I'm sorry, can you hear me? Ezra Yacob: Sorry, Scott, that was my fault. This is Ezra. Yes, to your question on overall exploration, especially, I think you really referenced Canada there. Let me just say that Canada, I think you're right. You always need to enter with an eye on egress. It is really the challenging thing up in Canada. Now they've done some things on the regulatory side, and there's been some investment in the region that hopefully will clean some of that up in the future. I would say some of the well-known parts of the area, the Deep Basin and some of the areas where the Duvernay has started to show some potential over the last few years. There are a lot of Canadian junior companies up there that have done a lot of work. I do think the region is one that would potentially benefit from some of the technologies that have been utilized more so here in the Lower 48 in the Permian, certainly in the Eagle Ford and some of the things that we're doing in the Utica. But overall, what I would say is comparing and contrasting international versus what's in the U.S. for domestic resource, as Keith alluded to, we still see a robust opportunity set in the Lower 48 as well. Everything these days is essentially some form of bypass pay, to be perfectly honest. I wouldn't say they're necessarily frontier basins in the Lower 48 left. But there are a lot of places where new technology needs to be reapplied to potentially some of the older resources, both conventional and unconventional that haven't been looked at in a little while. As Keith alluded to, I think you're starting to see that kind of renaissance in Alaska as well, where whether it's new geologic models up there or new seismic processing is really starting to unlock a lot of resource in an area that historically, obviously, is well known to be resource abundant. And I think the same thing extends into Canada, certainly into Alberta. Scott Hanold: Appreciate the context. And if we could chat a little bit on Permian well performance. I mean it was a big discussion point last quarter on how strong your early '26 wells have looked. It looks like it kind of continues that. I know you all discussed relative productivity year-over-year being somewhat flat, but you guys got a good head start. And is this a trend that you all see could continue? Or are you still expecting relatively flat year-over-year productivity? Jeffrey Leitzell: Scott, this is Jeff. Yes, as we talked about on previous calls and we've highlighted, we had a shift in our development strategy there last year, added in multiple new high rate of return targets and really with the focus to continue to maximize value of that asset. And that's went outstanding. We continue to have excellent results deploying that same development strategy. So the first thing is no changes there, still applying that same strategy. And the well results that we're seeing are in line with our expectations from a forecast aspect. I mean, obviously, you will have some variability as you move around your acreage, you've obviously got a little bit difference of a well mix there. But then on top of that, we're always innovating, and we're looking to push operations technically. So always looking to tweak our targets a little bit every single well to get better. We're always looking to optimize our frac design, whether it's tweaking different components. One of the big things we focused on is adding additional horsepower and focusing on rate. So all these little things help work towards well performance. And what I'd say is we don't go for a home run. Really, we make individual small iterative moves to try to get small improvements in performance that we can go ahead and spread out across the program. So all in all, we're extremely happy with what we're seeing in the Delaware, and our plans are to continue forward with our development strategy as we have been. Operator: The next question comes from Phillip Jungwirth from BMO. Phillip Jungwirth: When you come back to the UAE, when you say fiscal terms are competitive domestically, without getting into the specifics, but I was just hoping you could frame this a little bit more just because historically, Middle East onshore fiscals can be tougher as a low cost of supply region. Is there a tighter band around the return profile than what we typically see in the U.S.? So risk-adjusted returns look a bit more favorable? And then just any specifics on ADNOC back in if you ultimately move into development mode here? Ezra Yacob: Yes, Phillip, this is Ezra. There's not a whole lot that we can say about the specifics of the commercial terms. What I would say is what we've seen really globally and probably the best example, it began with our entry into Oman, is that we've seen some of the international -- the NOCs really do a little bit of unconventional drilling. And what that's done is it's basically brought the education level as to the capital intensity of these unconventional plays. It's essentially demonstrated it to them. And that has made the NOCs that we've engaged with much more willing to change some of the historical terms that they've had, which are more aligned with conventional development. That's been the biggest change for us. And ultimately, that's what's made some of these entries possible into both Oman, Bahrain and the UAE, is that the recognition that these are capitally intensive projects and that the old PSC structures weren't necessarily a great way to go. And so both of these agreements that we've entered into are concessions. And concessions, as you know, typically, they do have a tax and royalty structure rather than that PSC, which makes it more attractive. And then ultimately, what we want to have is line of sight that the subsurface quality and the surface environment as far as oilfield services and the way we structure the contract with our ability to bring in some of our own technology that if the model works the way we think it will, that we'll be able to make this competitive -- more than competitive with our existing domestic inventory. And that would be on both a rate of return, essentially an all-in rate of return and then on essentially an NPV. So both half-cycle, but really with an eye on full-cycle economics. Phillip Jungwirth: Okay. Great. And then this could be an analog to what you've done here with the Chalk in the quarter, but we've seen a bit more activity across the Delaware Woodford. Just wondering how you guys are viewing Woodford prospectivity across your New Mexico, Texas acreage or maybe some extension of it. Ezra Yacob: Yes, Phillip, as you know, the Woodford across most of the Delaware Basin is exceptionally deep, a bit more of a gas maturity up against the platform where I think publicly, it's been disclosed that there are a number of wells have been drilled up there. Amongst heavy faulting, but where there is some oil window. As most of our acreage is in the deeper part of the basin, Lea County and Loving County, where we see a great overpressure for much of the Permian section. The Woodford would be pretty deep depths and quite frankly, very gassy. I think industry-wide over the next couple of years, I'm not sure if the Woodford will move quite as fast as the Barnett on the Midland Basin side of things because of that depth and phase maturity window. But it is something to, I think, for -- to pay attention to as the industry moves forward. Operator: The next question comes from Gabe Daoud from Truist. Gabe Daoud: Ezra, I was hoping we can maybe go back to the Delaware. Just given the head start on the productivity side that was mentioned in the earlier question, is the basin expected to be the key driver of your low single-digit production growth this year, just given some of the other, obviously, opportunities within the portfolio? Ezra Yacob: Yes, Gabe, this is Ezra. In that 3-year scenario, this year, much of our oil growth year-over-year is really from the Encino acquisition as we bake that in. And then we do have growth coming dominantly out of the Utica for this year. And on our 3-year scenario, with our multi-basin portfolio, the growth that we see that we've kind of modeled in that for a low single-digit oil growth, it really comes -- it's driven dominantly from the Utica as a matter of fact. And the Delaware Basin, while it still can grow this year, it's actually decreasing just a little bit year-over-year. And then in the 3-year plan, it is probably more in line with being flat to maybe moderate growth. Gabe Daoud: That's helpful. And then maybe just as a follow-up, going back to exploration and maybe a macro question as well. Can we get your updated thoughts around the gas macro? And then from an exploration standpoint, is there a bias towards commodity maybe depending on your macro views on the gas side? Or is it commodity agnostic and just kind of focus on best resource, return potential, et cetera? Ezra Yacob: Yes, Gabe, that's a great question. On the gas side, our outlook, we do remain constructive. It's underpinned by rising LNG feed gas demand, growing electricity consumption as well as steady industrial demand growth and, to a lesser extent, maybe exports to Mexico. We forecast U.S. natural gas demand to grow between 3% and 5% on a compound annual growth rate through the end of the decade. We do expect storage levels to continue with increased volatility relative to that 5-year average just because of the increased demand. So historically, what we're seeing is gas was seasonally driven by weather and residential and commercial heating, which created these swings in cyclical demand. We really feel that the future is driven with AI-powered electricity demand, global LNG exports, industrial reshoring and 24/7 baseload power to ensure grid reliability. So we do feel much more constructive going forward. And when it comes to our exploration program, we're probably slightly more biased to the oil side. But honestly, it really comes down to returns for us. If we can find high-quality subsurface reservoir combined with an ability to scale up and drive down our cost and really flex our operational capabilities, as long as we can deliver high returns and it's competitive with the existing inventory that we have, we'll take a hard look at it. But ultimately, I think we cheat just a little bit towards being a little more optimistic or a little more exploration-focused on the liquid side of things just because the margins tend to be quite a bit greater than on the gas side. Operator: The next question comes from Scott Gruber from Citigroup. Scott Gruber: I want to come back to the Middle East returns question. Ezra, you mentioned terms have improved with the desire for host countries to unlock their unconventionals. But how do you think about the proper return hurdle for commerciality in the Middle East, especially relative to the U.S.? And has the conflict caused you to reassess the return hurdle at all? Ezra Yacob: Yes. It's an interesting question, Scott. It is still early in the project to be making decisions on DOC or FID or anything like that. So I'd phrase it maybe this way. We've -- since day 1, we've considered the exploration phase to be as much about measuring the subsurface potential as the operating environment. And that includes availability of services, the quality of equipment, access to premium markets, but it also includes the overall political environment, the rule of law, our relationships with partners. And so that's always been part of what I would say is to reference the question earlier, that's always been built into our risk-adjusted returns, is whether or not we can have a real sustained and ongoing high-return project there. To date, this might be a little bit contrarian, but we've actually been very, very happy with the partners because of the conflict that's going on. We've actually experienced very clear, transparent communication. We've seen great strategic alignment between EOG and ADNOC and Bapco during a very, very challenging time. And I think the evidence is the fact that we've actually been able to continue operations in the UAE to a much lesser extent in Bahrain, but we've been able to continue operations there in the UAE with support from ADNOC. Of course, putting, as Jeff said, the safety of our employees, contractors and partners first and foremost. But to be perfectly honest, Scott, this unfortunate circumstance has been an opportunity to stress test the relationship with our partners. And in these particular instances, we feel extremely fortunate to have entered the countries with the partnerships that we have in hand. Scott Gruber: No, I appreciate that color. And then coming back to the improvement in Permian well productivity. There were some pads put on production earlier this year that showed a healthy uplift in sand loadings although there's been some debate around the accuracy of that data within the state data. So can you comment on that? Are there some areas where you're seeing a benefit from larger sand loadings in the Delaware? Or is that just one of the levers that may get tweaked and generally, you're not kind of driving a step change in sand loadings in any area? Jeffrey Leitzell: Scott, this is Jeff. Yes, what I'd say is, no, there's not just one thing that we're really seeing there. It's not -- there's not a huge step change necessarily in our sand loadings over the last handful of years. I mean we do tweak, as I said. We'll make little single iterative one variable moves. But we aren't doing anything crazy with any of our well designs like doubling our overall fluid loadings or sand loadings across it. What I'd say is it's a little bit more just kind of the standard, innovative blocking and tackling, small little moves to try to see improvements. And the biggest one that I've seen, we've really done across the portfolio, as I've talked about, is focusing more on high intensity, getting our horsepower up, giving our engineers the tools to be able to design the wells as they feel adequate to really maximize the overall productivity. So yes, we can't point really to one single reason for the well productivity out there. Like I said, I think it's very consistent from our standpoint. It's in line with our expectations. So yes, and we're just going to continue with our current development program, and we'll continue to iterate and try to optimize our overall designs. Operator: The next question comes from Charles Meade from Johnson Rice. Charles Meade: I want to go back to the UAE and see if you can offer a little bit more detail. Were both of those wells testing the same concept and the same geologic setting? And how mature would you characterize your landing zone selection and your completion design at this point? Keith Trasko: This is Keith. Yes, so the 2 wells that we brought on, they were 2 1-mile wells. They are next to each other. So they're a little small pattern, testing the same zone. Very happy with the first 30 days of production. Those wells averaged over 25,000 barrels of oil per well. So we don't look at just production. We're looking at the pressure dynamics, and we like what we see there for an oil well. The wells are naturally flowing up casing right now, and we're putting those in artificial lift in the coming weeks. Generally speaking, kind of what we look for in the early stages of any exploration play, there's a few things that we look at. We assess our geosteering and targeting execution. We like to see the confirmation of the fluid mix relative to our initial model. We do like to flow those wells up casing without lift initially, just to assess the natural flow state. That helps us understand not only what the reservoir looks like, but how that responds to our completion design. Moving forward, we'll be evaluating different options for the artificial lift. But the results from the first 2 wells are encouraging on all these measures that I'm talking about here. As we continue to assess the prospect, we will be looking to complete wells in different areas. These 2 wells are in the same area of the 900,000-acre concession. We will definitely be testing different landing zones. And then we'll be continuing to evaluate the well performance over a longer period of time to establish a decline curve there. And I'd say that the completion design, we've been able to bring over the best practices from the Eagle Ford and our other domestic plays. But I think we're still in the early innings there, too. We got to see how we think the formation responded to this and then make some tweaks to optimize. Charles Meade: That's great color, Keith. You got a lot of work to do there. And then if I could have a follow-up question on infrastructure in the Delaware Basin. You guys spent some time in your prepared remarks talking about the Janus gas plant. And of course, you also had the Verde pipeline in the past. And I'm curious, that basin continues to set production records. Do you guys see the necessity for EOG to kind of step into that -- to the breach to handle some disconnects that maybe the -- where the midstream or service industry are maybe falling behind? Or is that mostly behind you at this point in the Delaware? Jeffrey Leitzell: Charles, this is Jeff. Thanks for the question. And it's a great one. It's one of the reasons that we originally built the gas processing plant, Janus, out there in the Permian, is we did see very tight markets. And actually, the fees had moved away from us, and we had to lean in and build that. But what I'd say right now is, obviously, no, there's been additional egress coming on here in the back half of the year. There's another 4 or 5 to 6 Bcf coming out of the basin. So that's going to cause some relief there. And we're seeing right now, at least from processing fees that they're kind of status quo. So really, what I think is it's one of those projects that we can expand it another 300 million a day, but we don't have to, and we can kind of utilize it and leverage it to kind of play the market. If it does happen to move away from us again, then we can obviously lean in on that to go ahead and invest in that strategic infrastructure to reduce our overall fees in our GP&T. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Yacob for closing remarks. Ezra Yacob: We appreciate everyone's time today. I just want to say thank you to our shareholders for your support and special thanks to our employees for delivering another exceptional quarter. Operator: The conference has now concluded. You may now disconnect. Before you buy stock in EOG Resources, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and EOG Resources wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends EOG Resources. The Motley Fool has a disclosure policy. EOG Resources (EOG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in EOG Resources, Inc.? Here are five stocks we like better. Record Q2 results: EOG reported adjusted EPS of $5.70, adjusted cash flow from operations per share of $8.29 and $2.8 billion in free cash flow. The company returned more than $1.8 billion to shareholders and reaffirmed its commitment to return at least 70% of 2026 free cash flow. Production and cost performance remained strong: EOG exceeded the midpoint of its production guidance while lowering operating and well costs, and maintained its $6.5 billion full-year capital spending plan, 5% oil-growth target and 14% total-production growth target. UAE exploration exceeded early expectations: Two unconventional wells averaged more than 25,000 barrels of oil each during their first 30 days, prompting plans for longer laterals and additional testing across EOG’s 900,000-acre concession, though the project remains in the exploration phase. Oil Could Dip, But These 3 Energy Stocks Still Look Built to Win EOG Resources (NYSE:EOG) reported record second-quarter financial results for 2026, supported by higher oil prices, lower operating costs and production volumes above the midpoint of its guidance range. The company also highlighted early production results from its United Arab Emirates exploration program and reaffirmed its full-year capital spending plan. Chairman and Chief Executive Officer Ezra Yacob said adjusted earnings per share, adjusted cash flow per share and free cash flow each reached record levels during the quarter. He said the results reflected both favorable commodity pricing and “consistent, high-quality execution across the company.” → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Energy Stocks With Cheap Valuations and Big Returns Ahead Chief Financial Officer Ann Janssen said EOG generated adjusted earnings per share of $5.70 and adjusted cash flow from operations per share of $8.29. Free cash flow totaled $2.8 billion in the quarter. The company returned just over $1.8 billion to shareholders, including $540 million through its regular dividend and $1.3 billion in share repurchases. Janssen said EOG had $11.7 billion remaining under its share repurchase authorization as of June 30 and reiterated its commitment to return at least 70% of annual free cash flow to investors in 2026. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 5 S&P 500 Dividend Stocks Set to Reward Investors EOG ended the quarter with $4.9 billion of cash, an increase of about $1.1 billion from the first quarter, and net debt of $3 billion. Using strip pricing and the midpoint of its guidance, Janssen said the company’s 2026 plan is expected to generate $8 billion of free cash flow and has a WTI breakeven price below $50 per barrel. Executive Vice President and Chief Operating Officer Jeff Leitzell said total company volumes exceeded the midpoint of EOG’s guidance, while lease operating expenses and gathering, processing and transportation expenses were lower than expected. Initial production from UAE exploration wells contributed nearly 500 barrels of oil per day to the company’s international segment. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Second-quarter capital expenditures were below the midpoint of guidance, mainly because of timing shifts in operations, particularly in the Gulf States, Leitzell said. EOG maintained its full-year 2026 capital expenditure plan of $6.5 billion and continues to expect 5% oil production growth and 14% total production growth. In the Delaware Basin, EOG said year-to-date drilling feet per day increased 13% and completed lateral feet per day rose 5%. Direct well costs have fallen by $15 per foot year to date, averaging less than $710 per foot. The company’s Janus gas processing plant has averaged more than 99% utilization year to date and has provided a netback uplift of more than $0.65 per Mcf, according to Leitzell. In the Eagle Ford, EOG reported a 4% increase in drilled feet per day and an 11% increase in completed lateral feet per day compared with 2025. Direct well costs in the play have declined to less than $525 per foot. The company also drilled what it described as its longest Eagle Ford lateral to date, at 24,115 feet. EOG announced an Austin Chalk “sweet spot” in Lavaca County, Texas, where it has organically leased 60,000 net acres at an average cost of $1,200 per acre. The company said it has drilled more than a dozen wells confirming the prospect and identified about 125 remaining two-mile locations. Leitzell said the acreage offers less than one-year payouts and returns above 100% at $65 WTI. The prospect adds roughly one year of drilling inventory at EOG’s current San Antonio division activity level, management said, and will be developed alongside the company’s core Eagle Ford program. EOG also cited continued progress in its Dorado dry-gas asset and its acquired Utica position. In Dorado, direct well costs are below $700 per foot, down 7% from last year, while the Verde gas pipeline has generated a year-to-date netback uplift of $0.50 per Mcf. In the Utica, the company said it exceeded its $150 million synergy target from the Encino acquisition ahead of schedule and reduced direct well costs below $600 per foot. Much of the call focused on EOG’s early unconventional oil exploration activity in the UAE. The company drilled, completed and placed online two one-mile lateral wells in June. During their first 30 days of production, the wells averaged more than 25,000 barrels of oil per well, Yacob said. The wells are naturally flowing up casing and are expected to be placed on artificial lift in the coming weeks. EOG described the early results as exceeding its expectations during the natural-flow period, while emphasizing that the program remains in its exploration phase. Senior Vice President of Exploration and Production Keith Trasko said the two wells tested the same zone in a small pattern and that their fluid mix, gas-to-oil ratio and API gravity have been consistent with EOG’s pre-drill model. He said the company sees the Eagle Ford as a key geological analogy for the UAE opportunity. EOG plans to pursue lateral lengths exceeding two miles in the UAE during the rest of 2026 and complete additional wells. The company holds a 900,000-acre concession and said it intends to test multiple areas and landing zones while evaluating longer-term well performance, artificial-lift response and the local service environment. Yacob said EOG’s UAE agreement includes a three-year exploration phase in a joint-venture structure, with ADNOC holding an option to back in. He said the company is not operating under a strict timeline for commercial development and will continue to assess subsurface results, repeatability and available oilfield services. Yacob said EOG remains constructive on oil market fundamentals despite expected volatility tied to the Iran conflict. He said disruptions to Middle Eastern crude and product supplies have reduced commercial inventories and strategic petroleum reserves, while energy security priorities could support future demand and inventory rebuilding. Management also reiterated a constructive medium- and long-term natural-gas outlook, citing LNG exports, electricity demand, industrial growth and grid reliability. Yacob said EOG forecasts U.S. natural-gas demand growth of 3% to 5% annually through the end of the decade. For 2027, Yacob said it was too early to provide specific plans but noted that EOG’s three-year framework contemplates low-single-digit oil growth in a $60 to $80 WTI environment. He said the company expects its multi-basin portfolio to preserve flexibility as it evaluates commodity markets and investment opportunities. EOG Resources, Inc (NYSE: EOG) is an independent exploration and production company headquartered in Houston, Texas. Tracing its corporate origins to Enron Oil & Gas Company in the late 1990s, the company established itself as a stand‑alone E&P operator and has grown into one of the largest U.S. upstream producers. EOG focuses on the exploration, development and production of crude oil, condensate, natural gas and natural gas liquids (NGLs). As an upstream-focused company, EOG's core activities include geologic and geophysical exploration, drilling and completion of wells, reservoir development, and the marketing of hydrocarbon production. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "EOG Resources Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

EOG Resources, Inc. EOG used its second-quarter 2026 earnings call to emphasize that record cash generation reflected more than stronger oil prices. Management focused on execution, spending discipline and exploration. Early UAE results provided the main strategic update, while the Q&A session set clear limits: commercialization has no fixed timetable, and management still requires repeatability, service capacity and competitive full-cycle returns. Adjusted earnings of $5.07 per share topped the Zacks Consensus Estimate of $5.01. Revenues of $8.62 billion also exceeded the Zacks Consensus Estimate of $7.86 billion, while free cash flow reached $2.8 billion. EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote Executive vice president and COO Jeffrey Leitzell kept 2026 capital spending at $6.5 billion. He expects 5% oil production growth and 14% total production growth. Executive vice president and CFO Ann Janssen said strip pricing and guidance midpoints support $8 billion of 2026 free cash flow. She reiterated the company’s commitment to return at least 70% of annual free cash flow to shareholders. Chairman and CEO Ezra Yacob said two one-mile UAE laterals averaged more than 25,000 barrels of oil per well during the first 30 days. He said natural-flow performance exceeded initial expectations. A UBS analyst asked about timing. Yacob said the three-year exploration phase has no strict commercialization schedule, with artificial-lift response, decline behavior and repeatability across 900,000 acres still under review. Senior vice president of Exploration and Production Keith Trasko told a Johnson Rice analyst that both wells tested the same zone. COO Leitzell said upcoming work includes laterals exceeding two miles and more completions. COO Leitzell highlighted a 60,000-acre Austin Chalk sweet spot. EOG has drilled more than a dozen wells and identified about 125 remaining two-mile locations, adding roughly one year of inventory. In response to an Evercore analyst, Leitzell said the wells generated returns of more than 100% and payouts of less than one year at $65 WTI, making them competitive with the core Eagle Ford. Leitzell also said the Encino integration exceeded its $150 million synergy target ahead of schedule. Utica well costs fell below $600 per foot, while production optimizers improved base output by 5% and cut downtime 5%. COO Leitzell said lease and well costs and gathering, processing and transportation expenses totaled below guidance midpoints. Second-quarter capital spending was $38 million below the midpoint, primarily due to timing. Despite slight service inflation, Leitzell maintained an expectation for a low-single-digit reduction in well costs this year. EOG’s in-house drilling motors have increased average footage per run by 70% since 2023. A Citigroup analyst asked whether Delaware productivity gains reflected materially higher sand loadings. Leitzell pointed instead to iterative design changes, higher frac horsepower and steady optimization. A UBS analyst asked whether EOG would continue shifting capital toward oil. CEO Yacob said 2026 remains unchanged and that 2027 could resemble the three-year scenario of low-single-digit oil growth at $60-$80 WTI. A Truist analyst asked where growth would originate. Yacob identified the Utica as the primary driver, while describing the Delaware Basin as flat to moderately growing within the three-year framework. Yacob also forecast U.S. natural gas demand growth of 3% to 5% annually through decade-end, supported by LNG, electricity and industrial demand. He said exploration remains slightly oil-biased because liquids provide higher margins. CEO Yacob combined confidence in oil fundamentals and exploration with clear hurdles for new investment. He kept capital discipline, operational excellence, sustainability and culture at the center of EOG’s framework. COO Leitzell’s message was similarly measured: improve costs, test inventory and scale where economics remain competitive. The strategy remains centered on selective growth, balance-sheet flexibility and cash returns. EOG carries a Zacks Rank #3 (Hold). Under the Zacks framework, a Rank of 3 can support holding a stock, while A or B Style Scores remain favorable; the strongest combinations pair those scores with a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Momentum Score of A and the VGM Score of A, alongside the Value and Growth Scores of B, indicate favorable near-term style characteristics. The Zacks Rank can change as estimate revisions incorporate the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

EOG Resources, Inc. EOG reported second-quarter 2026 adjusted earnings of $5.07 per share, up 118.5% year over year and above the Zacks Consensus Estimate of $5.01 by 1.2%. Revenues jumped 57.4% to $8.62 billion and beat the consensus mark of $7.87 billion by 9.6%. The strong quarter reflected higher oil prices and impressive production. Two other energy giants that have reported results are ExxonMobil Holdings Corporation XOM and Chevron Corporation CVX. While XOM missed the Zacks Consensus Estimate for earnings, CVX has surpassed it. Both CVX and XOM have a strong presence in upstream activities. Total production increased 24.4% from 1,134.1 thousand barrels of oil equivalent per day (MBoE/D) in the year-ago quarter. Our model predicted a 22.4% year-over-year increase in the metric for the June quarter of this year. Crude oil and condensate output rose 8.8%, while natural gas liquids volumes soared 34.2% to 346.8 thousand barrels per day (MBbl/D). Natural gas production climbed 38.6% to 3,089 million cubic feet per day (MMcf/D). The company also established oil production in the United Arab Emirates after successful tests of two one-mile lateral wells, each averaging more than 25,000 barrels of cumulative oil production during the first 30 days. The composite realized price for crude oil and condensate was $98.15 per barrel, up 51.4% from $64.82 a year earlier. Natural gas liquids fetched $24.41 per barrel, a 7.5% increase. The composite natural gas price declined 2.4% to $2.89 per Mcf. Even so, stronger oil realizations more than offset the softer gas price and supported a sharp increase in crude oil and condensate revenues to $4.90 billion from $2.97 billion. Lease and well expenses increased to $467 million from $396 million, while gathering, processing and transportation costs rose to $676 million from $455 million. The increases reflected the company's larger production base. On a per-unit basis, lease and well costs improved to $3.64 per Boe from $3.84. Gathering, processing and transportation costs rose to $5.27 per Boe from $4.41, while non-GAAP cash operating costs increased to $10.57 per Boe from $9.94. Adjusted cash flow from operations reached $4.39 billion, up from $2.50 billion in the prior-year period. After $1.59 billion of capital expenditures, free cash flow totaled $2.80 billion versus $973 million a year ago. EOG paid $540 million in regular dividends and repurchased $1.29 billion of shares during the June quarter. Cash and cash equivalents were $4.91 billion at June 30, 2026, up from $3.85 billion at the end of the first quarter. Current and long-term debt was $7.93 billion. Net debt declined to $3.02 billion from $4.08 billion sequentially. The net debt-to-total capitalization ratio improved to 8.7% from 11.7%, preserving financial flexibility while the company continued substantial shareholder distributions. For the third quarter, EOG expects crude oil and condensate production of 546 to 551 MBbl/D and total output of 1,389.7 to 1,434.7 MBoE/D. Capital expenditures are projected at $1.6 to $1.7 billion. For 2026, the company forecasts crude oil and condensate volumes of 546.3 to 551.1 MBbl/D and total production of 1,378.3 to 1,423.1 MBoE/D. Full-year capital expenditures are expected to range from $6.3 billion to $6.7 billion, while management projects oil production to increase 5% and total production 14% in 2026. Currently, EOG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report ExxonMobil Holdings Corporation (XOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record financial results were driven by high-quality execution across a low-cost multi-basin asset base, allowing the company to capitalize on robust oil prices. Management attributes long-term value creation to organic exploration, identifying opportunities early to build positions ahead of market interest and secure higher returns. The company is successfully exporting its domestic unconventional operating model to international markets, specifically through first-mover partnerships in the UAE and Bahrain. Oil market fundamentals remain constructive due to Middle East supply disruptions, reduced global inventories, and a strategic shift toward energy security among nations. Natural gas is viewed as a strategic energy resource rather than a seasonal commodity, with demand growth underpinned by LNG exports, AI-driven electricity needs, and industrial reshoring. Operational excellence is being achieved through iterative technical improvements, such as in-house drilling motor programs and strategic infrastructure like the Janus gas plant. Full-year 2026 guidance targets 5% oil production growth and 14% total production growth with a capital expenditure budget of $6.5 billion. The 2026 program is designed to be resilient, funding growth and dividends at a WTI breakeven price below $50 per barrel. Management expects oil price volatility to remain skewed to the upside in the near and medium term as global commercial and strategic reserves are restocked. Future international development in the UAE will focus on testing 2-mile laterals and evaluating well performance under artificial lift to establish long-term decline curves. The company maintains a commitment to return at least 70% of annual free cash flow to shareholders, supported by a $11.7 billion remaining share repurchase authorization. Operations in Bahrain have been intermittent due to regional conflict; management is prioritizing personnel safety while hoping for results in the second half of the year. A new Austin Chalk sweet spot in Lavaca County was announced, with 60,000 net acres leased at an average cost of $1,200 per acre, adding one year of drilling inventory. The Encino acquisition in the Utica has exceeded its $150 million synergy target ahead of schedule, with direct well costs now below $600 per foot. Service cost inflation is being mitigated by internal efficiencies, with the company still expecting a low single-digit reduction in overall well costs this year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management indicated that while it is early for 2027 specifics, the plan will likely reflect low single-digit oil growth within a $60 to $80 WTI price range. The company is preserving optionality to reallocate capital across its multi-basin portfolio based on evolving macro supply needs. EOG noted that international partners are increasingly moving away from traditional PSC structures toward tax-and-royalty concessions that better suit capital-intensive unconventional plays. The UAE project is currently in a three-year exploration phase where ADNOC has the option to back into the project once commerciality is established. Management identified the Eagle Ford as the primary geological analog for the UAE play in terms of rock type, product mix, and pressure dynamics. Initial results from two 1-mile lateral wells showed average production of over 25,000 barrels of oil per well during the first 30 days of natural flow. The company has identified 125 remaining 2-mile locations in the newly leased 60,000-acre sweet spot, which achieves over 100% returns at $65 WTI. The play is being developed using high-temperature and high-pressure operational learnings gained from the Dorado gas asset.

HOUSTON, Aug. 4, 2026 /PRNewswire/ -- EOG Resources, Inc. (EOG) today reported second quarter 2026 results. The attached schedules for the reconciliation of non-GAAP measures to GAAP measures, along with a related presentation, are also available on EOG's website at http://investors.eogresources.com/investors. Second Quarter Highlights Earned net income of $2.72 billion, or $5.15 per share, and adjusted net income of $2.68 billion, or $5.07 per share Delivered net cash provided by operating activities of $4.7 billion and adjusted CFO1 of $4.4 billion Generated $2.8 billion of free cash flow Declared regular quarterly dividend of $1.02 per share Paid $540 million in regular dividends and repurchased $1.3 billion of shares Quarterly oil volumes of 548.8 MBod and total volumes of 1,410.4 MBoed Delivered lease & well and gathering, processing & transportation costs better than guidance midpoints Established UAE oil production with successful initial test CEO Commentary"EOG delivered outstanding second quarter results, including record financial performance. Strong operational execution highlighted by LOE and GP&T costs below guidance midpoints coupled with higher oil prices drove this robust financial performance. In the second quarter, we generated $2.8 billion of free cash flow and returned $1.8 billion to shareholders through our regular dividend and share repurchases. Our cash return reflects the significant cash generation capacity of our business, the strength of our balance sheet, and confidence in our ability to drive further value creation. We are well positioned to capture opportunities across commodity cycles. Our diversified asset portfolio spans oil, NGLs, and natural gas across unconventional and conventional resources, which we continue to strengthen through organic exploration. On that front, during the quarter, we established UAE oil production with successful test results from two one-mile lateral wells that averaged over 25,000 barrels of cumulative oil production per well for the first 30 days. Our operating model maximizes the value of our low-cost, high-return inventory across multiple basins. Vertical integration and in-house technology support repeatable cost discipline, and our pricing exposure to premium markets drives strong realizations. Most importantly, our core competitive advantage, the unique EOG culture, allows our employees to innovate and operate at a high level, supporting efficient operations and long-term returns. We executed strongly in the first half of 2026 and enter the second half with positive momentum. Based on current guidance, we expect to deliver 5% oil production growth and 14% total production growth this year. At the current forward strip, this performance is expected to drive substantial free cash flow for the full-year 2026, supporting opportunistic and disciplined cash returns to shareholders. We remain focused on sustainable value creation through industry cycles by being among the highest return and lowest cost producers." Return of CapitalThe Board of Directors today declared a regular dividend of $1.02 per share on EOG's common stock. The regular dividend will be payable October 30, 2026, to stockholders of record as of October 16, 2026. The indicated annual rate is $4.08 per share. During the second quarter, the company repurchased 9.6 million shares for $1,294 million under its share repurchase authorization, at an average purchase price of $135 per share. As of June 30, 2026, EOG had $11.7 billion remaining on its current repurchase authorization. Trinidad 3.45-4.153.803.25-4.253.75Capital Expenditures11 ($MM)1,600-1,7001,6506,300-6,7006,500Operating Unit Costs ($/Boe)Lease and Well3.55-4.053.803.55-4.053.80Gathering, Processing and Transportation Costs5.15-5.655.405.10-5.605.35General & Administrative1.35-1.651.501.40-1.701.55Cash Operating Costs10.05-11.3510.7010.05-11.3510.70Depreciation, Depletion and Amortization9.50-10.5010.009.40-10.409.90Expenses ($MM)Exploration and Dry Hole45-8565235-275255Impairment (excluding certain impairments)870-150110190-370280Capitalized Interest36-4038147-151149Net Interest64-6866267-271269TOTI (% of revenues from sales of crude oil and condensate, NGLs and natural gas)5.8 %-7.8 %6.8 %5.8 %-7.8 %6.8 %Income TaxesEffective Rate20.0 %-25.0 %22.5 %20.0 %-25.0 %22.5 %Current Tax Expense ($MM)545-6455952,015-2,2152,115 Second Quarter 2026 Results WebcastWednesday, August 5, 2026, 9:00 a.m. Central time (10:00 a.m. Eastern time) Webcast will be available on EOG's website for one year. https://investors.eogresources.com/Investors About EOGEOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad. To learn more visit https://www.eogresources.com/ Investor ContactsPearce Hammond 713-571-4684Neel Panchal 713-571-4884Shelby O'Connor 713-571-4560Cameron Hughes 713-571-3724 Media ContactKimberly Ehmer 713-571-4676 Cautionary NoticeThis press release and any accompanying disclosures may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, operating costs and asset sales, statements regarding future commodity prices, statements regarding the plans and objectives of EOG's management for future operations and statements and projections regarding the strategic rationale for, and anticipated benefits of, EOG's acquisition of Encino Acquisition Partners, LLC (Encino) are forward-looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "ambition," "initiative," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward-looking statements. In particular, statements, express or implied, concerning (i) EOG's future financial or operating results and returns, (ii) EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters or safety matters, pay and/or increase regular and/or special dividends or repurchase shares or (iii) the successful integration of Encino's assets and operations or the strategic rationale for, or anticipated benefits of, EOG's acquisition of Encino, in each case are forward-looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others: the timing, magnitude and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities; the extent to which EOG is successful in its efforts to acquire or discover additional reserves; the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximize reserve recoveries from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations; the success of EOG's cost-mitigation initiatives and actions in offsetting the impact of any inflationary or other pressures on EOG's operating costs and capital expenditures; the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas; security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business, and enhanced regulatory focus on the prevention of, and disclosure requirements relating to, cyber incidents; the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment; the availability, cost, terms and timing of issuance or execution of mineral licenses, concessions and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses, concessions and leases; the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax or other emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial commodity and other derivative instruments and hedging activities; laws and regulations with respect to the import and export of crude oil, natural gas and related commodities; and trade policies, tariffs, trade agreements and other trade restrictions; the impact of climate change-related legislation, policies and initiatives; climate change-related political, social and shareholder activism; and physical, transition and reputational risks and other potential developments related to climate change; the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other environmental or safety-related initiatives and achieve its related targets, goals, ambitions and initiatives; EOG's failure to realize, in full or at all, the anticipated benefits of its acquisition of Encino and/or business disruptions resulting from the acquisition (e.g., relating to the integration of Encino's assets and operations into EOG's operations) that could harm EOG's business operations (including current plans and operations and the diversion of management's attention from EOG's ongoing business operations); EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to such properties; the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations; competition in the oil and gas exploration and production industry for the acquisition of licenses, concessions, leases and properties; the availability and cost of, EOG's ability to retain, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services; the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise; weather and natural disasters, including its impact on crude oil and natural gas demand, and related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities; the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG; EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements; the extent to which EOG is successful in its completion of planned asset dispositions; the extent and effect of any hedging activities engaged in by EOG; the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions; geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflicts), including in the areas in which EOG operates; the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; and the other factors described under ITEM 1A, Risk Factors of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise. Historical Non-GAAP Financial Measures:Reconciliation schedules and definitions for the historical non-GAAP financial measures included or referenced herein as well as related discussion can be found on the EOG website at www.eogresources.com. Cautionary Notice Regarding Forward-Looking Non-GAAP Financial Measures:In addition, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow, adjusted cash flow from operations and return on capital employed, and certain related estimates regarding future performance, commodity prices and operating and financial results. Because we provide these measures on a forward-looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future changes in working capital and future impairments. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures without unreasonable efforts. The unavailable information could have a significant impact on our ultimate results. However, management believes these forward-looking, Non-GAAP measures may be a useful tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates. Oil and Gas Reserves:The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release or any accompanying disclosures that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (and any updates to such disclosure set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K), available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov. View original content:https://www.prnewswire.com/news-releases/eog-resources-reports-second-quarter-2026-results-302842953.html

Wall Street analysts recently projected that EOG Resources’ June 2026 quarter earnings per share would more than double year over year, with revenues expected to reach about US$7.95 billion on strong contributions from crude oil, natural gas liquids, and gathering, processing, and marketing. Beyond the headline growth, shifting analyst expectations and segment-by-segment optimism highlight how EOG’s diversified production mix is increasingly central to its earnings power. Next, we’ll examine how these bullish earnings and revenue forecasts ahead of results reshape EOG Resources’ existing investment narrative. Find 53 companies with promising cash flow potential yet trading below their fair value. To own EOG Resources, you need to believe its diversified oil, NGL, and gas portfolio can keep translating volume growth into resilient earnings and free cash flow, even as the energy transition and commodity price swings remain key threats. The latest analyst forecasts for the June 2026 quarter, pointing to sharply higher EPS and revenue, support the near term earnings catalyst but do not materially change the biggest current risk around long term demand and pricing for hydrocarbons. Among recent announcements, the ongoing US$1.02 per share quarterly dividend stands out alongside the upbeat earnings projections. For investors, that combination of robust forecast profitability and a maintained regular dividend highlights how EOG is still leaning on cash generation and capital returns as a core part of its story, even as expectations for segment level growth across crude, NGLs, and gas sharpen the focus on execution in the coming quarters. Yet, while earnings forecasts look strong, the long term risk that oil and gas demand falls short of today’s assumptions is something investors should be aware of... Read the full narrative on EOG Resources (it's free!) EOG Resources' narrative projects $24.5 billion revenue and $7.3 billion earnings by 2029. Uncover how EOG Resources' forecasts yield a $159.82 fair value, a 10% upside to its current price. Some of the most optimistic analysts were already banking on EOG reaching about US$30.1 billion in revenue and US$7.7 billion in earnings, so if you are comparing that bullish scenario with today’s upgraded quarterly forecasts and the heavy reliance on newer plays like Dorado, it is worth recognizing how far views can stretch and considering how these expectations might evolve from here. Explore 6 other fair value estimates on EOG Resources - why the stock might be worth 30% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your EOG Resources research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free EOG Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EOG Resources' overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: Outshine the giants: these 17 early-stage AI stocks could fund your retirement. Explore 25 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EOG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

EOG Resources (EOG) came out with quarterly earnings of $5.07 per share, beating the Zacks Consensus Estimate of $5.01 per share. This compares to earnings of $2.32 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.20%. A quarter ago, it was expected that this oil and gas company would post earnings of $3.07 per share when it actually produced earnings of $3.41, delivering a surprise of +11.07%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. EOG Resources, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $8.62 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.56%. This compares to year-ago revenues of $5.48 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. EOG Resources shares have added about 38.7% since the beginning of the year versus the S&P 500's gain of 11%. While EOG Resources has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for EOG Resources was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.99 on $7.28 billion in revenues for the coming quarter and $16.18 on $29.41 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, HighPeak Energy, Inc. (HPK), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -70%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. HighPeak Energy, Inc.'s revenues are expected to be $274.1 million, up 36.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EOG Resources, Inc. (EOG) : Free Stock Analysis Report HighPeak Energy, Inc. (HPK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research