EOG Resources 2025 Q2 Earnings Net Income Drops 20.4% Amid Revenue Decline

EOG Resources (EOG) reported its fiscal 2025 Q2 earnings on August 8, 2025. The results reflect a mixed operational and financial performance, with the company raising full-year production guidance despite lower revenue and earnings. Below are the key highlights from the earnings report.

EOG Resources reported a 9% year-over-year decline in revenue to $5.46 billion in Q2 2025. The company adjusted its full-year production guidance higher, citing strong operational performance and cost discipline, although revenue and net income both fell below the prior-year period.

In Q2 2025, EOG’s revenue was driven primarily by its Crude Oil and Condensate segment, which contributed $2.97 billion, and Gathering, Processing and Marketing, which brought in $1.25 billion. Natural Gas generated $600 million, while Natural Gas Liquids added $534 million. The company also recorded a net gain of $107 million from mark-to-market financial and derivative contracts. Smaller contributions came from Other, Net ($16 million) and Total ($5.48 billion).

The company’s EPS declined 16.5% to $2.48 in Q2 2025 compared to $2.97 in the same period a year ago. Net income also fell by 20.4% to $1.34 billion, down from $1.69 billion in 2024 Q2. Despite these declines, EOG’s strong free cash flow of $973 million and $1.1 billion in shareholder returns highlight its commitment to value creation.

The stock price of EOG Resources has fallen in recent trading periods, dropping 1.02% on the latest trading day, 3.37% during the most recent full trading week, and 6.44% month-to-date. The stock has underperformed since the earnings release.

The strategy of buying EOG shares 30 days after the earnings release following a quarter-over-quarter revenue increase over the past three years delivered a negative CAGR of -5.58%, a total return of -14.17%, and an excess return of -78.90%. This underperformance significantly lagged the benchmark, and the strategy experienced a maximum drawdown of 0.00%, indicating a complete loss during the holding period.

EOG Resources’ CEO and Chairman, Ezra Y. Yacob, highlighted the company’s strong operational and financial performance in Q2 2025, noting that production exceeded guidance midpoints while costs and capital expenditures were below forecasts. He emphasized the company’s $973 million free cash flow, $1.1 billion in shareholder returns, and a 5% dividend increase, reinforcing EOG’s commitment to value creation. The Encino acquisition, which added 1.1 million net acres and 2+ billion BOE resource potential, was called a “foundational asset,” with expected $150 million in annual synergies. Yacob expressed optimism about the Utica’s payback period and Dorado’s role in capturing U.S. gas demand. Internationally, the UAE concession was framed as a long-term opportunity. He underscored EOG’s focus on capital discipline, operational excellence, sustainability, and culture, with a tone of confidence in the business’s growth and returns.

EOG Resources raised its 2025 full-year production guidance, projecting 521,000 barrels of oil per day and 1,224,000 BOE per day, with CAPEX of $6.3 billion. Including Encino, the company expects $4.3 billion in 2025 free cash flow at $65 WTI and $3.50 Henry Hub, a 10% increase from prior forecasts. The Utica will operate with 5 rigs and 3 completion crews, while Dorado targets 750 MMcf/day of gross production by year-end. The company reaffirmed its commitment to return at least $3.5 billion in 2025 via dividends and buybacks, with buybacks prioritized beyond dividends.

Additional News
On the same day EOG released its earnings, the Punch newspaper in Nigeria highlighted a range of significant news items. Among them was the Nigerian government’s announcement of a N100 billion solar initiative aimed at reducing energy costs in public institutions. Customs officials also stated they would review agent licensing fees in January 2026. A tragic incident in Kenya reported 21 deaths after a bus carrying mourners crashed. In Kaduna, police arrested two suspects for gun running and recovered several locally made firearms and motorcycles. Additionally, a new savings promotion by Stanbic IBTC saw 148 customers win N23 million in total prizes. African leaders proposed a 3-year plan to reduce capital costs, while RMRDC advocated for a 60% cut in raw material imports.