EOG EOG Resources 10-Q 2026-09-30 section summaries

EOG Resources — Q3 and nine months ended September 30, 2026

Consolidated results

($ millions, except per-share amounts and shares)

Revenue grew 46.2% in Q3 and 41.8% in 9M; operating income rose 95.3% and 78.5%, respectively. Higher commodity-related and gathering/marketing revenue drove growth, while operating expenses also increased. The Q3 and 9M net income comparisons include significant asset-disposition and derivative mark-to-market gains.

Segment performance

($ millions; quarterly figures)

U.S. revenue grew 46.4% in Q3 versus 41.9% for 9M; 9M U.S. revenue was $23.726 billion versus $16.722 billion, and operating income was $9.631 billion versus $5.479 billion. Trinidad 9M revenue was $339 million versus $272 million and operating income was $122 million versus $35 million. Other International 9M revenue was $25 million versus zero, with an operating loss of $41 million versus $72 million.

Revenue composition

($ millions; quarterly figures)

For 9M, natural gas liquids revenue was $2.292 billion versus $1.710 billion, and gathering, processing and marketing revenue was $5.353 billion versus $3.765 billion; the latter grew 42.2% for 9M compared with 56.7% in Q3. Q3 and 9M derivative gains were $105 million versus $116 million and $258 million versus $32 million, respectively. Net asset-disposition gains were $242 million in Q3 versus an $18 million loss, and $331 million for 9M versus a $19 million loss.

Cash flow and capital spending

($ millions; 9M)

Separately, oil and gas property additions excluding dry-hole costs were $4.836 billion for 9M 2026 versus $11.174 billion in 2025; the prior-year figure included $6.633 billion of Encino-acquired properties. Noncash property exchanges added $313 million to 2026 oil and gas properties versus $14 million in 2025. EOG paid $1.628 billion in dividends versus $1.611 billion and purchased $2.780 billion of treasury stock versus $1.887 billion. Cash increased $2.351 billion to $5.747 billion, compared with a $3.562 billion decrease in 9M 2025.

Balance sheet and capital returns

EOG also had $7.890 billion principal amount of senior notes outstanding at both dates; estimated fair value was $7.334 billion at September 30 versus $7.849 billion at December 31. The $3.0 billion revolving facility had no borrowings or letters of credit outstanding, and EOG reported compliance with its 65% maximum debt-to-total-capitalization covenant. Cash interest paid for 9M was $209 million versus $124 million, net of capitalized interest of $113 million versus $50 million.

Issued shares were 589.044 million at both balance-sheet dates; treasury shares increased from 51.374 million to 69.108 million, implying outstanding shares declined from 537.670 million at year-end 2025 to 519.936 million at September 30, 2026. EOG repurchased 19.8 million shares for approximately $2.704 billion under its authorization during 9M. The authorization was increased from $10 billion to $20 billion in May, with approximately $10.6 billion remaining. The quarterly dividend was $1.02 per share; in November, EOG raised it to $1.10, effective with the January 2027 payment.

Portfolio, acquisition and other notable items

EOG received $394 million of asset-sale proceeds in 9M, primarily from selling its northern Midland Basin and Barnett Shale interests; it recognized $331 million of net disposition gains, mainly from the Barnett sale and Permian lease exchanges. The sale of its Woodford Oil Window interests for $180 million, subject to customary adjustments, closed October 19, after quarter-end.

EOG acquired Encino on August 1, 2025, for $4.471 billion cash consideration and assumed senior notes with $1.2 billion aggregate principal. The final purchase-price allocation assigned $7.253 billion of fair value to assets and $2.782 billion to liabilities, with no goodwill recorded; the Q3 2026 finalization increased oil and gas properties by a net $30 million. EOG incurred approximately $58 million of acquisition-related costs in 2025. Unaudited pro forma 2025 results, assuming acquisition on January 1, were Q3 revenue of $6.083 billion and net income of $1.601 billion, and 9M revenue of $18.415 billion and net income of $4.697 billion.

Commodity derivatives are not designated as accounting hedges, so fair-value changes affect reported results. The Brent-linked gas sales contract had a $229 million fair value at September 30, 2026, all Level 3, versus $31 million at December 31, 2025. No collateral was posted or held under ISDA agreements at either date. Asset retirement obligations totaled $1.540 billion at September 30, 2026, including $43 million current and $1.497 billion noncurrent.

Nine-month stock-based compensation expense was $173 million versus $156 million. Restricted shares and units outstanding totaled 5.741 million, with $791 million intrinsic value and $487 million unrecognized compensation expense expected to be recognized over a weighted-average 2.0 years. Performance Units outstanding were 480,000, with $35 million of unrecognized expense expected to be recognized over 1.9 years. Ordinary-course litigation is pending; management does not expect it to materially adversely affect EOG’s financial position, results or cash flow.

EOG Resources — Q3 2026 and nine months ended September 30, 2026

Consolidated results

Total revenue growth accelerated to 46% in Q3 from 42% for 9M, reflecting higher commodity prices and greater production. Production-sales revenue rose 39% in Q3 and 37% for 9M. Gathering, processing and marketing revenue grew faster in Q3 (57%) than for 9M (42%). Net gains on asset dispositions were $242 million in Q3, versus an $18 million loss, and $331 million for 9M, versus $19 million of net losses.

Production, deliveries and realized prices

Total production increased 10% in Q3 and 20% for 9M, with Utica and Permian growth important contributors. Higher prices drove much of the revenue increase: in Q3, oil price and delivery changes contributed approximately $1.050 billion and $99 million, respectively; for natural gas, price and volume contributed $274 million and $104 million. For NGLs, the respective contributions were $159 million and $95 million. Gathering, processing and marketing revenue less marketing costs improved $21 million in Q3 and $148 million for 9M, mainly on stronger marketing margins.

Costs, derivatives and earnings drivers

For 9M, total listed costs per Boe eased to $20.75 from $20.91. Operating expenses increased $2.826 billion for 9M. Lease and well costs rose mainly with U.S. operating, maintenance, administrative and workover costs; gathering, processing and transportation costs increased principally with Utica production (which accounted for $513 million of the 9M increase). Higher production drove DD&A expense to $3.744 billion from $3.235 billion, partly offset by lower unit rates. Income taxes were $2.133 billion for 9M versus $1.173 billion, with a 22% effective rate in both periods. Q3 income taxes were $783 million versus $353 million; the effective rate rose to 22% from 19%, partly because the prior-year quarter benefited from Encino-related state tax benefits.

Derivative fair-value changes flow through earnings because EOG does not designate these contracts as accounting hedges. Mark-to-market gains were $105 million in Q3 versus $116 million, and $258 million for 9M versus $32 million; the 9M 2026 amount included $198 million on the Brent-linked gas sales contract. Derivative settlements generated $40 million of net cash receipts in Q3 and $32 million for 9M (versus $27 million and $35 million of net cash payments, respectively, in 9M 2025). The contracts were a $274 million net asset at September 30; no collateral was posted or held as of October 23.

EOG’s disclosed 2026 gas swaps include 450 thousand MMBtu/d for November–December at $3.79/MMBtu; gas collars include 70 thousand MMBtu/d over those months with a $4.23 ceiling and $3.71 floor, and 120 thousand MMBtu/d for 2027 with a $4.41 ceiling and $3.42 floor. A 10-year agreement commencing in 2027 provides for sales of 180,000 MMBtu/d of domestic gas: 140,000 MMBtu/d is Brent-indexed, with the remaining volume priced by Brent or a U.S. Gulf Coast gas index at the counterparty’s election.

Cash, investment and capital returns

Operating cash flow increased $4.016 billion, mainly on higher production-sales revenue and lower net cash taxes, partly offset by higher cash operating costs, working-capital uses and interest paid. Investing cash use fell substantially because 9M 2025 included the Encino acquisition; 9M 2026 expenditures included $2.780 billion of repurchases/treasury-stock purchases and $1.628 billion of dividends within financing cash use. EOG estimated 2026 exploration, development and other PP&E expenditures of $6.3–$6.7 billion.

Cash and equivalents increased $2.351 billion to $5.747 billion at September 30, 2026; the $3.0 billion senior unsecured revolver was undrawn. Debt-to-total-capitalization declined to 19% from 21% at December 31, 2025. EOG’s stated policy is to return at least 70% of annual operating cash flow, before certain balance-sheet changes and less capital expenditures, through dividends and repurchases. The quarterly dividend was $1.02 per share for the 2026 declarations described; on November 5, the Board raised it to $1.10, effective for the January 29, 2027 payment. The repurchase authorization increased from $10 billion to $20 billion in May 2026.

Outlook, portfolio and risks

EOG expects 2026 crude oil and condensate production to increase about 5% and total oil, NGL and gas production about 14% versus 2025. It is focusing investment mainly on the Delaware Basin, Utica and Eagle Ford, while pursuing drilling, completion, lateral-length and self-sourced-sand efficiencies. The Barnett Shale sale for $220 million closed September 15; the $180 million Woodford Oil Window sale closed October 19. Combined Q3 production from those assets was about 16 MBoed. EOG continued its Trinidad drilling program, advanced the Coconut offshore platform, and began UAE crude production in June.

Commodity exposure remains material. For each $1/Bbl oil-price change, estimated full-year 2026 net-income and pretax operating-cash-flow sensitivities were approximately $175 million and $224 million; for each $0.10/Mcf gas-price change, the respective sensitivities were approximately $61 million and $78 million. These estimates include relevant NGL effects and derivatives, with gas sensitivity excluding volumes whose prices are fixed under long-term contracts. EOG cited higher-than-expected crude prices in 9M and expects higher full-year prices, while noting geopolitical, trade, supply-demand and inflation risks. Other significant exposures include development and reserve performance, cost inflation and service availability, market access and infrastructure capacity, permitting and regulation, climate and weather risks, cybersecurity and operational disruption, and customer/counterparty credit.

Market risk

EOG identifies exposure to commodity prices, interest rates, and foreign-currency exchange rates. This section provides no quantified sensitivities or updated exposure amounts. For broader discussion of these risks, EOG refers readers to its 2025 Annual Report; for updated information on financial derivatives and physical commodity contracts, it refers to Note 9 and MD&A in the current Form 10-Q.

Controls and Procedures

EOG assessed its disclosure controls and procedures as effective at quarter-end. No changes during the quarter materially affected, or were reasonably likely to materially affect, internal control over financial reporting.

Insider Trading Arrangements

EOG Chief Financial Officer Ann D. Janssen adopted a Rule 10b5-1 trading arrangement on September 30, 2026, while not in possession of material nonpublic information. After the applicable cooling-off period, the plan permits sales, subject to specified timing and trigger-price limits, of up to 18,000 currently held EOG shares. It also permits sales at prevailing market prices of 100% of the net shares she receives upon vesting of 3,947 restricted shares and 5,921 performance-based restricted stock units, after withholding shares for taxes. The plan ends when all specified sales are completed or on July 30, 2027, whichever occurs first.

During the quarter ended September 30, 2026, no other EOG Section 16 officer or director adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. This section reports no company financial results or operating developments.