# EOG Resources (EOG) Sector: Oil & gas exploration and production | Field | Value | |---|---| | Price | $148.43 | | Market cap | $77B | | Intrinsic value source | Analysts | | Data as of | 2026-11-10 | | Next earnings | 2027-02-23 (estimate) | Analysts: Leaning bullish Picks: Research only Discount category: Close to intrinsic value ## In short EOG trades close to its intrinsic value because investors pay for its low costs and cash returns, and oil prices above the levels of 2025 can keep it there. ## Themes and gap - Themes: Power and energy (power-energy) - Gap type: Can close (closable) - Why: The Q4 2026 report with the 2027 plan, expected in late February 2027, shows whether production, costs and cash returns hold. ## About EOG Resources (EOG) explores for, develops and produces crude oil, natural gas liquids (NGLs) and natural gas. It is one of the largest such companies in the United States, and it has proved reserves in the United States and Trinidad. In the first nine months of 2026, it drilled mainly in the Delaware Basin, the Eagle Ford and the Utica. It bought Encino, a Utica producer, on August 1, 2025, for $4.47 billion in cash plus $1.2 billion of Encino notes, which it repaid. It also has exploration programs in Bahrain and the United Arab Emirates, and it started oil production in the UAE in June 2026. In Q3 2026, production was a record 1.43 million barrels of oil equivalent per day, of which 550,400 barrels per day were crude oil and condensate. Total revenue was $22.63 billion in 2025. The head office is in Houston, Texas. ## Thesis EOG trades close to its intrinsic value because investors pay for its low costs, strong balance sheet and cash returns, but oil and gas prices decide most of its earnings. WTI averaged $85.68 per barrel in Q3 2026, against $64.95 a year earlier, and adjusted EPS rose to $4.87 from $2.71. EOG returns at least 70% of annual free cash flow to shareholders. In Q3 2026, it paid $544 million of dividends and bought back $1.0 billion of shares, and it raised the regular dividend by 8% to $1.10 per quarter. Net debt was only $2.18 billion at September 30, 2026. For the stock to hold its value, three things must be true. Oil prices must stay above the levels of 2025, when adjusted EPS was $10.16. Production must stay near the 2026 guidance of about 1.41 million barrels of oil equivalent per day with capital spending of $6.3 billion to $6.7 billion. The new gas contracts linked to LNG prices must add higher prices from 2030. The Q4 2026 report with the 2027 plan, expected in late February 2027, is the next test. If oil prices fall to the levels of 2025, the stock can fall below its intrinsic value. ## Checkpoints - Nov 5, 2026: Q3 2026 results and cash returns. Status: Passed. Watch: Volumes at or above guidance and continued buybacks pass; lower volumes or returns fail. Outcome: Volumes were records and above the guidance midpoints, and EOG bought back $1.0 billion of shares and raised its dividend by 8%. - Feb 23, 2027 (estimate): Q4 2026 results and 2027 plan. Status: Pending. Watch: A 2027 plan with stable production, capital spending near 2026 levels and continued buybacks passes; higher costs or lower returns fail. - May 2027 (estimate): Q1 2027 results: oil prices and costs. Status: Pending. Watch: Free cash flow that covers the higher dividend and buybacks passes; lower oil prices that stop buybacks fail. ## Balance sheet - Cash: $5.7B - Debt: $7.9B - Net debt: $2.2B - Interest cover: 49× - Undrawn credit line: $3.0B, to December 2030 - Debt due within 12 months: $28M - Last debt due: 2055 EOG funds itself mainly with cash flow and senior notes. At September 30, 2026, current and long-term debt was $7.92 billion, of which $28 million was due within one year, and cash was $5.75 billion, so net debt was $2.18 billion. The company states net debt of 6.2% of total capitalization. EOG issued $3.5 billion of senior notes in July 2025 for the Encino purchase and $1.0 billion more in November 2025, and it repaid $750 million of notes in December 2025. The last notes are due in 2055. A $3.0 billion senior unsecured revolving credit agreement runs to December 3, 2030, and there were no borrowings or letters of credit under it. Interest cover is operating income divided by net interest expense for the first nine months of 2026 ($9,712 million against $200 million). Total stockholders' equity was $33.10 billion. The regular dividend is $1.10 per share each quarter from January 2027, and there were 518,484,224 shares outstanding on October 29, 2026. As of 2026-09-30. Sources: - https://www.sec.gov/Archives/edgar/data/821189/000082118926000227/eog-20260930.htm - https://www.sec.gov/Archives/edgar/data/821189/000082118926000226/exh99-1110526.htm ## Dividends - Dividend yield: 2.7% (last 12 months, at the current price) - Paid per share, last 12 months: $4.08 (4 payments) - Current annual rate: $4.08 ($1.02 x 4 a year) - Payout ratio: 43% of the earnings of the last fiscal year (the year ended 2025-12-31) - Latest ex-dividend date: 2026-10-16, $1.02 per share - Growth over the last 5 years: 9.3% a year - Growth over the last 10 years: 19.8% a year Dividends per share by year: 2016: $0.672, 2017: $0.672, 2018: $0.758, 2019: $1.016, 2020: $1.413, 2021: $4.614, 2022: $8.80, 2023: $5.80, 2024: $3.64, 2025: $3.945. Source: company filings and market data, read on 2026-11-10. ## Recent events - 2026-11-05: EOG reported Q3 2026 results. Net income was $2.78 billion, or $5.33 per share, and adjusted net income was $2.54 billion, or $4.87 per share. Free cash flow was $2.2 billion, and oil, NGL and natural gas volumes were records. EOG raised its regular quarterly dividend by 8% to $1.10 per share and bought back 7.0 million shares for $1.0 billion. It signed a new long-term gas sales agreement linked to JKM prices from 2030 and approved an expansion of its Janus gas processing plant in the Delaware Basin. - 2026-10-19: EOG closed the sale of its entire interest in the Woodford Oil Window for $180 million. Earlier in 2026, it sold its interests in the northern Midland Basin and the Barnett Shale. - 2026-09-23: EOG announced that chief financial officer Ann Janssen retires from that role on December 31, 2026. Jeffrey Hibbard, senior vice president of finance, becomes chief financial officer on January 1, 2027. - 2026-08-04: EOG reported Q2 2026 results. WTI averaged $92.85 per barrel. Net income was $2.72 billion, or $5.15 per share, adjusted EPS was $5.07, and free cash flow was $2.80 billion. - 2026-05-20: EOG's board raised the share repurchase authorization from $10 billion to $20 billion. At September 30, 2026, $10.6 billion of it remained. - 2026-05-05: EOG reported Q1 2026 results. Net income was $1.98 billion, or $3.70 per share, adjusted EPS was $3.41, and free cash flow was $1.49 billion. - 2026-02-24: EOG reported 2025 results. Net income was $4.98 billion, or $9.12 per share, and adjusted EPS was $10.16. Q4 2025 included $646 million of impairments, mainly to write down assets in the Barnett Shale and the Woodford Oil Window. ## Latest news and filings - Last earnings: 2026-11-05 (8-K: https://www.sec.gov/Archives/edgar/data/821189/000082118926000226/) - Next earnings: 2027-02-23 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-05 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | eog-20260930 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000227/eog-20260930.htm | | 2026-11-05 | 8-K | Earnings release and Investor disclosure | | eog-20261105 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000226/eog-20261105.htm | | 2026-10-08 | 8-K | Earnings release | | eog-20261008 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000202/eog-20261008.htm | | 2026-09-24 | 8-K | Change of directors or officers | | | https://www.sec.gov/Archives/edgar/data/821189/000119312526400333/d40889d8k.htm | | 2026-08-04 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | eog-20260630 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000149/eog-20260630.htm | | 2026-08-04 | 8-K | Earnings release and Investor disclosure | | eog-20260804 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000147/eog-20260804.htm | | 2026-07-09 | 8-K | Earnings release | | eog-20260709 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000140/eog-20260709.htm | | 2026-05-21 | 8-K | Shareholder vote results and Other company news | | eog-20260521 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000107/eog-20260521.htm | | 2026-05-05 | 10-Q | Quarterly report for the period ended Mar 31, 2026 | 2026-03-31 | eog-20260331 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000104/eog-20260331.htm | | 2026-02-24 | 10-K | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | eog-20251231 | https://www.sec.gov/Archives/edgar/data/821189/000082118926000054/eog-20251231.htm | Every filing on SEC EDGAR (CIK 821189): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000821189&type=&dateb=&owner=include&count=40 ## Risks - High: Earnings move with oil, NGL and natural gas prices, which EOG does not control. WTI averaged $59.17 per barrel in Q4 2025 and $92.85 in Q2 2026, and adjusted EPS was $2.27 and $5.07 in these quarters. - Medium: Natural gas prices change quickly. Henry Hub averaged $4.96 per Mcf in Q1 2026 and $2.95 in Q3 2026. - Medium: Wells decline, so EOG must keep drilling to hold production. Weak results in a play can cause impairments, such as $646 million in Q4 2025. - Low: Exploration in Bahrain and the United Arab Emirates can fail. Exploration and dry hole costs were $228 million in the first nine months of 2026. - Low: The chief financial officer changes on January 1, 2027, and the cash return plan depends on management decisions each year. ## Links - Page: https://picks.utilarium.app/company/EOG/ - History of changes: https://picks.utilarium.app/company/EOG/history/ - JSON with full history: https://picks.utilarium.app/data/company/EOG.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. 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