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DATE
Friday, Nov. 6, 2026
CALL PARTICIPANTS
- Vice President, Investor Relations – Pearce Wheless Hammond Jr.
- Chairman and Chief Executive Officer – Ezra Y. Yacob
- Chief Operating Officer – Jeffrey R. Leitzell
- Chief Financial Officer – Ann D. Janssen
- Senior Vice President, Finance – Jeffrey Hibbert
- Senior Vice President, Exploration and Production – Keith Trasko
TAKEAWAYS
- Adjusted EPS — $4.87, reflecting earnings after adjustments for mark-to-market derivative gains and asset dispositions during the third quarter.
- Oil Production Growth — 5% for the full year 2026, supported by activity levels in the Delaware Basin and other core assets.
- Annual Dividend Rate — $4.40 per share, representing an 8% increase based on confidence in long-term free cash flow potential.
- Quarterly Free Cash Flow — $2.2 billion, driven by record production volumes and per-unit cost discipline across all three production streams.
- Share Repurchases — $1 billion during the third quarter, part of a strategic plan to return a minimum of 70% of free cash flow to shareholders.
- Janus Gas Plant Expansion — $300 million total cost, intended to double processing capacity to 600 million cubic feet per day in the Delaware Basin.
- Delaware Basin Well Costs — Less than $710 per foot, achieved through operational efficiencies and development at a controlled pace.
- Utica Drilling Efficiency — 24% increase in drilled feet per day, contributing to well costs of less than $600 per foot in the liquid-rich window.
- Eagle Ford Well Costs — Less than $525 per foot, resulting from a 15% year-over-year increase in completed lateral feet per day.
- LNG Feed Gas Exposure — More than 1 billion cubic feet per day by 2030, following a new 10-year supply agreement with ENGIE linked to JKM pricing.
- Non-Core Asset Sales — $400 million in aggregate proceeds, from the divestiture of legacy Barnett and Woodford positions producing 16,000 barrels of oil equivalent per day.
- UAE Well Production — 700 barrels of oil per day per well, based on stabilized rates over the first 30 days on artificial lift for initial 1-mile laterals.
- Quarter-End Cash Balance — $5.7 billion, providing a foundation for a net debt position of $2.2 billion at Sept. 30, 2026.
- WTI Breakeven Price — Below $50 per barrel, covering production growth, exploration, and the regular dividend at 2026 plan levels.
- 2026 Capital Expenditures — $6.5 billion, remaining unchanged despite shifts in operational timing during the third quarter.
- Dorado Lateral Lengths — 16% increase compared to the previous year, contributing to well costs of less than $700 per foot in the dry gas asset.
- Utica Sand Mine Savings — In excess of $300,000 per well, expected following the opening of an in-basin sand mine by the end of 2026.
- Verde Gas Pipeline Netback — $0.50 per Mcf uplift year to date, resulting from countercyclical investment in infrastructure serving the Dorado asset.
- Janus Expansion Rate of Return — In excess of 30%, supported by existing infrastructure synergies and tightening regional processing markets.
- Remaining Repurchase Authorization — $10.6 billion as of Sept. 30, 2026, after the company reduced its share count by 13% since 2023.
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RISKS
- Leitzell stated, “operations have remained intermittent due to the ongoing conflict,” regarding activities in Bahrain where employee safety remains the priority.
- Leitzell warned that the company sees services tightening and expects modest inflation for drilling and completions in 2027, including higher steel and diesel costs.
- Yacob noted that Strategic Petroleum Reserve releases and G7 refinery measures provide only marginal relief and do not replace the need for reliable supply from the Middle East.
SUMMARY
EOG Resources, Inc. (EOG +1.55%) reported record production across crude oil, natural gas liquids, and natural gas during the third quarter. Management announced an 8% increase to the regular dividend and emphasized a commitment to returning a minimum of 70% of annual free cash flow to shareholders. Strategic developments included the expansion of gas processing infrastructure in the Delaware Basin and the execution of a long-term natural gas supply agreement to increase exposure to international pricing. Management indicated that operational efficiencies continue to offset elevated prices for steel and diesel, supporting a projected reduction in well costs for the current fiscal year.
- The 10-year agreement with ENGIE for 140,000 MMBtu per day is linked to JKM pricing, providing additional pricing diversification for the company’s gas volumes.
- Trasko reported that the company has identified 17-plus unique targets in its co-development strategy for the Delaware Basin to maximize resource value.
- Yacob stated that the company possesses 10-year state leases in Alaska for a conventional oil play that is an analog to the Pika and Willow prospects.
- The company identified approximately 100 drilling locations in the Pearsall shale oil window in South Texas through organic leasing and subsurface knowledge.
- Yacob indicated that the company is in discussions with data centers and hyperscalers seeking direct gas supply near its multi-basin production footprint.
- Management announced the retirement of Janssen as Chief Financial Officer next year, with Hibbert scheduled to assume the role on Jan. 1, 2027.
INDUSTRY GLOSSARY
- Bcf: Billion cubic feet, a measure of natural gas volume.
- Dorado: The company’s low-cost dry gas asset located in South Texas.
- Henry Hub: A natural gas pipeline hub in Louisiana that serves as the official delivery point for futures contracts on the New York Mercantile Exchange.
- JKM: Japan Korea Marker, the benchmark price for liquefied natural gas delivered to Northeast Asia.
- Lateral: The horizontal section of a wellbore drilled through a producing formation.
- Mcf: Thousand cubic feet, a standard unit of measure for natural gas.
- MMBtu: Million British Thermal Units, a measure of the energy content in fuel.
- Netback: The gross revenue from oil and gas sales minus the costs of transportation, gathering, and processing.
- WTI: West Texas Intermediate, a grade of crude oil used as a benchmark in oil pricing.
Full Conference Call Transcript
Operator: Good day, everyone. And welcome to the EOG Resources Third Quarter 26 Earnings Results Conference Call. As a reminder, this call is being recorded. For opening remarks and introductions, I will turn the call over to EOG Resources’ Vice President of Investor Relations, Mr. Pearce Hammond. Please go ahead, sir.
Pearce Wheless Hammond Jr.: Good morning, and thank you for joining us for the EOG Resources third Quarter 26 Earnings Conference Call. I a
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