Why Is EOG Resources (EOG) Up 16.9% Since Last Earnings Report?

It has been about a month since the last earnings report for EOG Resources (EOG). Shares have added about 16.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is EOG Resources due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for EOG Resources, Inc. before we dive into how investors and analysts have reacted as of late.

EOG Q4 Earnings Beat Estimates

EOG Resources reported fourth-quarter 2025 adjusted earnings per share of $2.27, which beat the Zacks Consensus Estimate of $2.20. The bottom line decreased from the year-ago quarter’s $2.74.

Total quarterly revenues of $5.64 billion missed the Zacks Consensus Estimate of $5.8 billion. The top line increased from $5.59 billion in the prior-year quarter.

The better-than-expected quarterly earnings were driven by higher oil-equivalent production volumes. A decline in the average realized price for crude oil and condensates partially offset the positives.

EOG’s Operational Performance

In the quarter under review, total volumes increased 28% year over year to 128.7 million barrels of oil equivalent (MMBoe), driven by higher crude oil and natural gas volumes from its multi-basin portfolio in the United States. The figure surpassed our estimate of 125.6 MMBoe.

Crude oil and condensate production totaled 546.1 thousand barrels per day (MBbls/d), up 10.4% from the year-ago quarter’s level. The figure beat our estimate of 543.6 MBbls/d.

NGL volumes increased 35.5% year over year to 342.1 MBbls/d. The figure beat our estimate of 318.3 MBbls/d.

Natural gas volume rose to 3,065 million cubic feet per day (MMcf/d) from the year-ago quarter’s 2,092 MMcf/d. The reported figure beat our estimate of 3,020.5 MMcf/d.

The average price realization for the company’s crude oil and condensates was $59.54 per barrel compared with $71.66 in the prior-year quarter.

Natural gas was sold at $3.00 per Mcf, reflecting a year-over-year improvement of 16.7%.

Operating Cost of EOG

In the fourth quarter, lease and well expenses increased to $447 million from $394 million a year ago.

The company reported gathering, processing and transportation costs of $652 million, higher than the year-ago quarter’s $441 million. Exploration costs declined to $50 million from $52 million in the year-ago quarter. Total operating expenses were $4.7 billion, higher than $3.99 billion recorded a year ago.

Liquidity Position & Capital Expenditure of EOG

As of Dec. 31, 2025, EOG Resources had cash and cash equivalents worth $3.4 billion and long-term debt of $7.9 billion. The current portion of the long-term debt totaled $27 million.

In the reported quarter, the company generated $978 million in free cash flow. Capital expenditure amounted to $1.64 billion.

2026 Guidance

For the first quarter of 2026, EOG expects total production of 1,351.5 to 1,396.5 MBoe/d. For full-year 2026, the company has projected total production between 1,373.1 Mboe/d and 1,418.2 Mboe/d. EOG has outlined a capital plan of $6.5 billion for the year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted 6.27% due to these changes.

VGM Scores

At this time, EOG Resources has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, EOG Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

EOG Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Diamondback Energy (FANG), a stock from the same industry, has gained 16.8%. The company reported its results for the quarter ended December 2025 more than a month ago.

Diamondback reported revenues of $3.38 billion in the last reported quarter, representing a year-over-year change of -9%. EPS of $1.74 for the same period compares with $3.64 a year ago.

For the current quarter, Diamondback is expected to post earnings of $2.56 per share, indicating a change of -43.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +23.4% over the last 30 days.

Diamondback has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

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