EOG Resources (EOG) Q4 2025 earnings summary

Executive summary

• Achieved $5.5B in adjusted net income and $4.7B in free cash flow for 2025, returning 100% of free cash flow to shareholders via $2.2B in dividends and $2.5B in share repurchases, while maintaining a strong balance sheet.

• Completed the Encino acquisition, expanded internationally with UAE and Bahrain exploration, and brought the Janus gas plant online, strengthening the portfolio and positioning for high returns and low costs.

• Delivered oil, NGL, and natural gas volumes above targets, reduced average well costs by 7% year-over-year, and outperformed operational and capital targets.

• Over the past three years, generated $15B in free cash flow, returned $14B to shareholders, and averaged 24% ROCE.

Financial highlights

• Adjusted 2025 net income was $5.5B ($10.16/share), with free cash flow of $4.7B, adjusted EPS of $10.16, and a 19% ROCE.

• Q4 2025 adjusted EPS was $2.27; adjusted cash flow from operations per share was $4.86; nearly $1B in free cash flow for the quarter.

• Paid $2.2B in regular dividends ($3.95/share, up 8% YoY) and repurchased $2.5B in shares; cash return was 8.2% of market cap.

• Ended 2025 with $3.4B in cash, $7.9B in long-term debt, and $6.4B in total liquidity.

• Increased proved reserves by 16% to 5.5B boe; reserve additions replaced 254% of 2025 production (excluding price revisions).

Outlook and guidance

• 2026 capital spending expected at $6.5B (midpoint), generating $4.5B in free cash flow at strip prices.

• Plan to return 90%-100% of annual free cash flow to shareholders.

• 2026 guidance: flat oil production vs. Q4 2025, 5% annual oil growth, 13% total production growth.

• Three-year scenario (2026-2028) projects 5% cash flow and >6% free cash flow CAGR, with cumulative free cash flow of $10B-$18B at $55-$70 WTI.

• Maintenance capital post-Encino is $4.8B-$5.4B, with inventory supporting ~20 years of production.