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1. Company Snapshot

1.a. Company Description

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids.Its principal producing areas are in New Mexico and Texas in the United States; and the Republic of Trinidad and Tobago.As of December 31, 2021, it had total estimated net proved reserves of 3,747 million barrels of oil equivalent, including 1,548 million barrels (MMBbl) of crude oil and condensate reserves; 829 MMBbl of natural gas liquid reserves; and 8,222 billion cubic feet of natural gas reserves.


The company was formerly known as Enron Oil & Gas Company.EOG Resources, Inc.was incorporated in 1985 and is headquartered in Houston, Texas.

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1.b. Last Insights on EOG

EOG Resources' recent performance was negatively impacted by weak oil prices and higher financing costs, which are expected to result in a 30% earnings decline. Despite beating Q2 earnings and revenue estimates, the company's growth was hindered by lower price realizations. However, EOG's multi-basin US strategy, international expansion, and the Encino acquisition have diversified its portfolio and boosted natural gas exposure. The company has a 27-year dividend growth streak and offers strong margins and robust cash flows. (Source: EOG Resources: High-Quality Oil Play Entering A More Attractive Price Zone)

1.c. Company Highlights

2. EOG Resources' Strong Q3 2025 Earnings: A Testament to Operational Excellence

EOG Resources reported a robust third quarter 2025, with adjusted earnings per share of $2.71, surpassing estimates of $2.46. The company's net income stood at $1.5 billion, and it generated $1.4 billion in free cash flow. The strong operational performance was evident in the company's production volumes, which outperformed expectations, driven by stronger-than-expected base production performance in the Utica asset.

Publication Date: Nov -08

📋 Highlights
  • Free Cash Flow & Net Income:: Generated $1.4 billion in free cash flow and $1.5 billion in net income, with $1 billion returned to shareholders via dividends and buybacks.
  • Encino Acquisition Synergies:: Closed the Encino acquisition in August, adding $150 million in annualized synergies and diversifying production across basins.
  • Balancesheet Strength:: Maintained $3.5 billion in cash and $7.7 billion in long-term debt, targeting leverage under 1x EBITDA at cycle-bottom prices.
  • 2025 Guidance Increase:: Raised 2025 free cash flow forecast to $4.5 billion (+$200 million) and raised dividends by 8% to $3.95/share.

Financial Performance and Guidance

EOG's financial performance was bolstered by its successful acquisition of Encino in August, which strengthened its portfolio and diversified production. For 2025, the company forecasts $4.5 billion in free cash flow, a $200 million increase from its previous forecast. The company's balance sheet remains robust, with a cash position of $3.5 billion and $7.7 billion in long-term debt, resulting in a Net Debt / EBITDA ratio of 0.34.

Operational Highlights

Operationally, EOG's teams delivered consistent results, meeting or exceeding expectations on nearly every metric. The Encino integration is progressing well, with expected synergies of $150 million within the first year. The company is poised to finish 2025 strong and enter 2026 with momentum, driven by its high-return portfolio and focus on lowering breakeven costs.

Valuation and Return to Shareholders

With a P/E Ratio of 10.31 and an EV/EBITDA ratio of 4.64, EOG's valuation appears reasonable. The company has a strong track record of returning capital to shareholders, having returned over $20 billion to investors through dividends and share repurchases in the past 5 years. EOG targets a minimum of 70% of free cash flow to be returned to shareholders, and with a Free Cash Flow Yield of 7.4%, the company's dividend yield of 3.74% is attractive.

Outlook and Growth Prospects

EOG is bullish on natural gas and views 2026 as a potential year to step up Dorado activity. The company has captured markets to grow into, including electrical demand and LNG commitments. Analysts estimate next year's revenue growth at 9.9%, driven by EOG's multi-basin operations and its focus on capital discipline. With a strong inventory of wells and a robust exploration program, EOG is well-positioned for long-term growth.

3. NewsRoom

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Top 15 High-Growth Dividend Stocks For December 2025

Dec -02

Source: seekingalpha.com

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Top 10 High-Yield Dividend Stocks For December 2025

Dec -01

Source: seekingalpha.com

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Boston Family Office LLC Lowers Stake in EOG Resources, Inc. $EOG

Dec -01

Source: defenseworld.net

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EOG Resources: Attractive Entry Point For A Low-Cost, High-Quality Energy Leader

Nov -29

Source: seekingalpha.com

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Ameritas Investment Partners Inc. Reduces Stake in EOG Resources, Inc. $EOG

Nov -28

Source: defenseworld.net

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Barings LLC Buys 9,291 Shares of EOG Resources, Inc. $EOG

Nov -23

Source: defenseworld.net

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EOG Resources, Inc. $EOG Shares Bought by Avantax Advisory Services Inc.

Nov -18

Source: defenseworld.net

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Bedell Frazier Investment Counselling LLC Purchases 3,537 Shares of EOG Resources, Inc. $EOG

Nov -18

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Crude Oil and Natural Gas Exploration and Production

Expected Growth: 1.0%

EOG Resources' growth in Crude Oil and Natural Gas Exploration and Production is driven by increased production volumes, higher oil prices, and efficient drilling operations. The company's strong financial position and focus on shale plays, such as the Permian and Eagle Ford, contribute to its growth. With a growth rate of 1.0, EOG's fundamentals indicate a stable and promising outlook in the energy sector.

7. Detailed Products

Crude Oil

EOG Resources, Inc. engages in the exploration, development, production, and marketing of crude oil, which is a primary source of energy for various industries and transportation

Natural Gas

EOG Resources, Inc. also explores for, develops, produces, and markets natural gas, which is a clean-burning fossil fuel used for heating, cooking, and power generation

Natural Gas Liquids (NGLs)

EOG Resources, Inc. produces and markets natural gas liquids, including ethane, propane, butane, and condensate, which are used as feedstocks for petrochemical production and as fuels

Refined Products

EOG Resources, Inc. refines crude oil into various refined products, including gasoline, diesel fuel, jet fuel, and heating oil

8. EOG Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

EOG Resources, Inc. operates in the oil and gas industry, where substitutes such as renewable energy sources (e.g., solar, wind) and alternative fuels (e.g., natural gas, hydrogen) exist. However, the demand for oil and gas remains strong, and the substitutes are not yet cost-competitive or widely available, resulting in a medium threat level.

Bargaining Power Of Customers

EOG Resources, Inc.'s customers are primarily large energy companies, which have some bargaining power due to their volume purchases. However, EOG has a diversified customer base, and its products are essential inputs for the customers' operations, limiting the customers' ability to negotiate prices and terms.

Bargaining Power Of Suppliers

EOG Resources, Inc. has a large and diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, EOG has long-term contracts with many suppliers, which provides stability and predictability in its supply chain.

Threat Of New Entrants

The oil and gas industry has relatively low barriers to entry, as new companies can enter the market by acquiring leases, permits, and equipment. However, EOG Resources, Inc. has a strong market position, a large asset base, and significant operational expertise, which makes it challenging for new entrants to compete effectively.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share, reserves, and talent. EOG Resources, Inc. competes with large and small companies, which can lead to price wars, increased marketing expenses, and decreased profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.72%
Debt Cost 4.32%
Equity Weight 85.28%
Equity Cost 8.28%
WACC 7.69%
Leverage 17.26%

11. Quality Control: EOG Resources, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EOG Resources

A-Score: 6.4/10

Value: 5.9

Growth: 5.7

Quality: 7.8

Yield: 8.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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Diamondback Energy

A-Score: 6.2/10

Value: 7.4

Growth: 7.8

Quality: 6.3

Yield: 7.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Devon Energy

A-Score: 6.0/10

Value: 8.1

Growth: 5.2

Quality: 5.9

Yield: 8.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

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Hess

A-Score: 5.7/10

Value: 3.6

Growth: 7.1

Quality: 6.6

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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ConocoPhillips

A-Score: 5.6/10

Value: 6.0

Growth: 5.1

Quality: 6.5

Yield: 6.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

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Oxy

A-Score: 5.0/10

Value: 6.9

Growth: 5.2

Quality: 5.1

Yield: 3.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

112.17$

Current Price

112.17$

Potential

-0.00%

Expected Cash-Flows