EOG Resources (EOG) Q4 2025 Earnings Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 25, 2026

AI-Generated Deep Dive Summary

EOG Resources (EOG) reported a standout performance in its Q4 2025 earnings, driven by record-breaking free cash flow of $4.7 billion, marking another year of exceptional financial strength. The company delivered adjusted net income of $5.5 billion, translating to $10.16 per share for the full year and $2.27 per share for the fourth quarter alone. This achievement underscores EOG's commitment to returning value directly to shareholders through robust cash returns, including $4.7 billion in 2025—comprising $2.2 billion in dividends (an 8% increase over 2024) and $2.5 billion in share repurchases. Key operational highlights include a 7% reduction in well costs across key basins, achieved through longer laterals and enhanced efficiencies. The Delaware Basin saw significant progress, with well costs dropping to $725 per foot while maintaining 30% longer laterals and a 20% cost reduction from 2023 to 2025. Similarly, the Utica region demonstrated operational gains, with drilling speeds increasing by over 35%, casing costs decreasing by 30%, and well costs falling below $600 per foot by year-end 2025. These improvements not only boosted capital efficiency but also contributed to a remarkable 16% increase in proved reserves, replacing 254% of total 2025 production (excluding price revisions). EOG's strategic initiatives extended beyond operational excellence, with international expansion into new exploration areas in the UAE and Bahrain. The company also finalized the Encino acquisition ahead of schedule and brought major infrastructure like the Janus gas plant online, enhancing portfolio efficiency. Looking ahead, EOG projects $4.5 billion in free cash flow for 2026, alongside a 5% oil production growth and 13% total production growth. This outlook is supported by disciplined capital spending of $6.5 billion, with maintenance capital updated to a range of $4.8 billion to $5.4 billion (midpoint $5.1 billion) over the next three years. The company's financial health remains strong, with $3.4 billion in cash at year-end 2025 and total liquidity of $6.4 billion, including an undrawn $3.0 billion revolver. With $3.3 billion remaining under its share repurchase authorization, EOG continues to prioritize shareholder returns while maintaining a low leverage position (long-term debt of $7.9 billion). These

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Originally published on The Motley Fool on 2/25/2026