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EOG Q3 Earnings Beat Estimates on Record Production, Strong Pricing
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Key Takeaways
EOG's Q3 earnings jumped 79.7% to $4.87 per share, while revenues surged 46.2% to $8.55 billion.
Record production of 1,433.1 MBoe/d and stronger crude oil prices fueled EOG's impressive quarterly growth.
EOG generated $2.18 billion in free cash flow, raised its dividend 8% and repurchased $1 billion in shares.
EOG Resources, Inc. (EOG - Free Report) reported third-quarter 2026 adjusted earnings of $4.87 per share, up 79.7% from $2.71 a year earlier. The figure beat the Zacks Consensus Estimate of $4.45 by 9.4%.
Total revenues rose 46.2% year over year to $8.55 billion, surpassing the consensus estimate of $7.54 billion by 13.4%.
Higher commodity prices and record production supported the results. Total oil-equivalent output increased 10.1% year over year to 1,433.1 thousand barrels of oil equivalent per day (MBoe/d), exceeding the company's guidance midpoint.
EOG Resources, Inc. Price, Consensus and EPS Surprise
Crude oil and condensate production averaged 550.4 thousand barrels per day (MBbl/d), compared with 534.5 MBbl/d in the prior-year quarter. The figure topped EOG's guidance midpoint of 548.5 MBbl/d.
Natural gas liquids production reached 357.1 MBbl/d, up 15.5% year over year and above the 347 MBbl/d guidance midpoint. Natural gas production rose 14.9% to 3,153 million cubic feet per day (MMcf/d), exceeding the company's 3,100 MMcf/d target.
EOG Resources Benefits From Higher Sales
Crude oil and condensate revenues advanced to $4.39 billion from $3.24 billion a year earlier. Natural gas liquids revenues increased to $858 million from $604 million, while natural gas revenues climbed to $1.09 billion from $707 million.
The benchmark West Texas Intermediate crude oil price averaged $85.68 per barrel, compared with $64.95 in the third quarter of 2025. The Henry Hub natural gas benchmark declined to $2.95 per Mcf from $3.07, underscoring the importance of production growth and favorable pricing differentials to the gas business.
EOG's Operating Expenses Increase
Total operating expenses were $4.96 billion, up from $4.01 billion in the year-ago period. Lease and well expenses increased to $493 million from $431 million, while gathering, processing and transportation costs rose to $693 million from $587 million.
Marketing costs increased to $1.78 billion from $1.13 billion. Meanwhile, depreciation, depletion and amortization expenses grew to $1.29 billion from $1.17 billion. Despite the higher overall expense base, cash operating costs of $10.49 per Boe came in below management's $10.70 guidance midpoint.
Operating income improved to $3.59 billion from $1.84 billion in the prior-year quarter, reflecting stronger revenue growth relative to expenses.
EOG Resources Delivers Robust Cash Flow
EOG generated $3.81 billion in net cash from operating activities and $2.18 billion in free cash flow during the quarter. Non-GAAP capital expenditures totaled $1.60 billion, below the company's $1.65 billion guidance midpoint.
As of Sept. 30, 2026, cash and cash equivalents totaled $5.75 billion, compared with $3.40 billion at 2025-end. Long-term debt was $7.89 billion, with another $28 million classified as the current portion. Net debt stood at $2.18 billion.
EOG's Fourth-Quarter and Full-Year Outlook
For the fourth quarter of 2026, EOG forecasts total oil-equivalent production of 1,385.5-1,432.0 MBoe/d. It expects crude oil and condensate output of 547.7-553.1 MBbl/d, natural gas liquids production of 340-360 MBbl/d and natural gas volumes of 2,987-3,113 MMcf/d.
For full-year 2026, the company projects total production of 1,393.2-1,425.0 MBoe/d, with capital spending of $6.3-$6.7 billion. Fourth-quarter capital spending is expected between $1.63 billion and $1.73 billion.
EOG also approved an expansion of its Janus gas processing plant in the Delaware Basin. The project is expected to add 300 MMcf/d of processing capacity, with completion targeted for the second half of 2028.
EOG Resources Enhances Shareholder Returns
The board increased the regular quarterly dividend 8% to $1.10 per share, payable Jan. 29, 2027, to shareholders of record on Jan. 15. The new dividend translates to an indicated annual payout of $4.40 per share.
During the third quarter, EOG repurchased 7 million shares for $1 billion and paid $544 million in regular dividends. The company also entered a new 10-year, JKM-linked natural gas sales agreement for 140,000 MMBtu per day, scheduled to begin by 2030, expanding its access to premium-priced gas markets.
PBF Energy has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries, including Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. The diversified refining footprint provides the company exposure to several regional refining markets, supporting higher margins. PBF reported an earnings beat in the third quarter.
HF Sinclair Corporation is a leading downstream energy player operating across five segments: Refining, Renewables, Marketing, Lubricants & Specialties, and Midstream. The company’s primary earnings driver is its robust network of seven complex refineries across the Mid-Continent, Southwest, Rocky Mountains and Pacific Northwest. The outlook for the company’s refining business remains constructive due to tightening supplies of refined products and a supportive crack environment. DINO beat the Zacks Consensus Estimate in the third quarter by 43.8%.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It refines and markets oil products and gas, as well as engages in marketing and sales activities. GLPEY reported earnings of 16 cents in the third quarter, missing the Zacks Consensus Estimate of 52 cents.
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EOG Q3 Earnings Beat Estimates on Record Production, Strong Pricing
Key Takeaways
EOG Resources, Inc. (EOG - Free Report) reported third-quarter 2026 adjusted earnings of $4.87 per share, up 79.7% from $2.71 a year earlier. The figure beat the Zacks Consensus Estimate of $4.45 by 9.4%.
Total revenues rose 46.2% year over year to $8.55 billion, surpassing the consensus estimate of $7.54 billion by 13.4%.
Higher commodity prices and record production supported the results. Total oil-equivalent output increased 10.1% year over year to 1,433.1 thousand barrels of oil equivalent per day (MBoe/d), exceeding the company's guidance midpoint.
EOG Resources, Inc. Price, Consensus and EPS Surprise
EOG Resources, Inc. price-consensus-eps-surprise-chart | EOG Resources, Inc. Quote
EOG's Production Volumes Set Records
Crude oil and condensate production averaged 550.4 thousand barrels per day (MBbl/d), compared with 534.5 MBbl/d in the prior-year quarter. The figure topped EOG's guidance midpoint of 548.5 MBbl/d.
Natural gas liquids production reached 357.1 MBbl/d, up 15.5% year over year and above the 347 MBbl/d guidance midpoint. Natural gas production rose 14.9% to 3,153 million cubic feet per day (MMcf/d), exceeding the company's 3,100 MMcf/d target.
EOG Resources Benefits From Higher Sales
Crude oil and condensate revenues advanced to $4.39 billion from $3.24 billion a year earlier. Natural gas liquids revenues increased to $858 million from $604 million, while natural gas revenues climbed to $1.09 billion from $707 million.
The benchmark West Texas Intermediate crude oil price averaged $85.68 per barrel, compared with $64.95 in the third quarter of 2025. The Henry Hub natural gas benchmark declined to $2.95 per Mcf from $3.07, underscoring the importance of production growth and favorable pricing differentials to the gas business.
EOG's Operating Expenses Increase
Total operating expenses were $4.96 billion, up from $4.01 billion in the year-ago period. Lease and well expenses increased to $493 million from $431 million, while gathering, processing and transportation costs rose to $693 million from $587 million.
Marketing costs increased to $1.78 billion from $1.13 billion. Meanwhile, depreciation, depletion and amortization expenses grew to $1.29 billion from $1.17 billion. Despite the higher overall expense base, cash operating costs of $10.49 per Boe came in below management's $10.70 guidance midpoint.
Operating income improved to $3.59 billion from $1.84 billion in the prior-year quarter, reflecting stronger revenue growth relative to expenses.
EOG Resources Delivers Robust Cash Flow
EOG generated $3.81 billion in net cash from operating activities and $2.18 billion in free cash flow during the quarter. Non-GAAP capital expenditures totaled $1.60 billion, below the company's $1.65 billion guidance midpoint.
As of Sept. 30, 2026, cash and cash equivalents totaled $5.75 billion, compared with $3.40 billion at 2025-end. Long-term debt was $7.89 billion, with another $28 million classified as the current portion. Net debt stood at $2.18 billion.
EOG's Fourth-Quarter and Full-Year Outlook
For the fourth quarter of 2026, EOG forecasts total oil-equivalent production of 1,385.5-1,432.0 MBoe/d. It expects crude oil and condensate output of 547.7-553.1 MBbl/d, natural gas liquids production of 340-360 MBbl/d and natural gas volumes of 2,987-3,113 MMcf/d.
For full-year 2026, the company projects total production of 1,393.2-1,425.0 MBoe/d, with capital spending of $6.3-$6.7 billion. Fourth-quarter capital spending is expected between $1.63 billion and $1.73 billion.
EOG also approved an expansion of its Janus gas processing plant in the Delaware Basin. The project is expected to add 300 MMcf/d of processing capacity, with completion targeted for the second half of 2028.
EOG Resources Enhances Shareholder Returns
The board increased the regular quarterly dividend 8% to $1.10 per share, payable Jan. 29, 2027, to shareholders of record on Jan. 15. The new dividend translates to an indicated annual payout of $4.40 per share.
During the third quarter, EOG repurchased 7 million shares for $1 billion and paid $544 million in regular dividends. The company also entered a new 10-year, JKM-linked natural gas sales agreement for 140,000 MMBtu per day, scheduled to begin by 2030, expanding its access to premium-priced gas markets.
EOG’s Zacks Rank and Key Picks
EOG currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the energy sector are PBF Energy (PBF - Free Report) , HF Sinclair Corporation (DINO - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
PBF Energy has a geographically diverse refining network with large-scale processing capacity and a highly complex refining system. It operates six refineries, including Delaware City Refinery, Paulsboro Refinery, Toledo Refinery, Chalmette Refinery, Torrance Refinery and Martinez Refinery, with a combined throughput capacity of 1 million barrels per day and the ability to process a wide range of feedstocks. The diversified refining footprint provides the company exposure to several regional refining markets, supporting higher margins. PBF reported an earnings beat in the third quarter.
HF Sinclair Corporation is a leading downstream energy player operating across five segments: Refining, Renewables, Marketing, Lubricants & Specialties, and Midstream. The company’s primary earnings driver is its robust network of seven complex refineries across the Mid-Continent, Southwest, Rocky Mountains and Pacific Northwest. The outlook for the company’s refining business remains constructive due to tightening supplies of refined products and a supportive crack environment. DINO beat the Zacks Consensus Estimate in the third quarter by 43.8%.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It refines and markets oil products and gas, as well as engages in marketing and sales activities. GLPEY reported earnings of 16 cents in the third quarter, missing the Zacks Consensus Estimate of 52 cents.