Lower Prices Cost EOG Resources $0.49 Per Share As Production Gains Fall Short
Adjusted profit fell from the second quarter, while EOG continued buying back shares and paying dividends.
EOG Resources, which produces oil and natural gas, lost $0.49 per share of earnings to weaker commodity prices compared with the second quarter—more than higher output added back. The company reported adjusted third-quarter earnings of $4.87 per share, against $5.07 in the second quarter, in unaudited results released Thursday with an SEC filing.
More Output, Less Revenue Per Barrel
EOG produced 131.8 million oil-equivalent barrels in the third quarter, compared with 128.3 million in the second. That increase contributed $0.12 per share to earnings, but average sales revenue for each oil-equivalent barrel slipped to $48.05 from $50.52.
Oil prices weakened even as gas prices improved. EOG received an average $86.72 per barrel for crude oil and condensate, against $98.15 in the second quarter. Natural gas fetched $3.74 per thousand cubic feet, compared with $2.89, while natural gas liquids averaged $26.13 per barrel, versus $24.41.
Lower costs provided a smaller offset: the company's earnings reconciliation credits certain operating-cost improvements with $0.02 per share. Adjusted net income finished at $2,540 million, down from $2,683 million in the second quarter.
EOG's production business is concentrated in the United States, with major operating areas in the Delaware Basin, South Texas, the Appalachian Basin and the Rocky Mountain region. Its oil, natural gas liquids and gas reach buyers through pipelines, local markets and Gulf Coast export points.
Annual Gains Survive The Quarterly Retreat
The comparison with a year earlier was stronger. Adjusted earnings were $2.71 per share in the third quarter of 2025, with adjusted net income of $1,472 million.
Under standard accounting, EOG earned $2,781 million in the latest quarter, compared with $1,471 million a year earlier. Operating revenues and other income reached $8,549 million, against $5,847 million in the same period of 2025, though below the second quarter's $8,620 million.
Asset-sale gains help explain why reported and adjusted earnings tell different stories. EOG's adjusted calculation removed $191 million of after-tax gains from asset sales, removed $82 million of after-tax derivative valuation gains and included $32 million of after-tax cash settlements on commodity derivatives. Reported diluted earnings were $5.33 per share, versus adjusted earnings of $4.87.
Cash Funds Buybacks And Dividends
Operations generated $3,813 million of cash in the third quarter—below the second quarter's $4,669 million but above the year-earlier $3,111 million. EOG's adjusted free cash flow was $2,176 million, calculated from $3,773 million of adjusted operating cash flow less $1,597 million of capital spending.
Share repurchases consumed $1,063 million during the quarter, and dividend payments totaled $544 million. The average diluted share count was 522 million, compared with 529 million in the second quarter and 544 million a year earlier.
EOG ended the third quarter with $5,747 million in cash and $2,175 million of debt net of cash, compared with $4,907 million and $3,019 million, respectively, at the end of the second quarter.
Sources
- 8-K Filing — EOG RESOURCES INC (EOG) — SEC EDGAR
- Exhibit exh99-1110526.htm — EOG RESOURCES INC 8-K exhibit — SEC EDGAR
