This article first appeared on GuruFocus.
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Adjusted EPS: $4.87 in Q3 2026.
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Adjusted Cash Flow from Operations per Share: $7.23 in Q3 2026.
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Free Cash Flow: $2.2 billion in Q3 2026; $9.7 billion expected for full-year 2026 at strip pricing using guidance midpoints.
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Shareholder Returns: Just over $1.5 billion returned in Q3 2026, including ~$540 million regular dividend and $1 billion in share repurchases.
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Regular Dividend: Raised 8% to an indicated annual rate of $4.40 per share; 28-year track record of payment without cut or suspension; ~20% CAGR over 28 years.
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Share Repurchases: Share count reduced 13% since repurchases began in 2023; $10.6 billion remaining under authorization at September 30.
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Cash and Net Debt: $5.7 billion in cash and ~$2.2 billion net debt at quarter-end.
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Leverage Target: Total debt below 1x EBITDA at bottom-cycle prices of $45 WTI and $2.50 Henry Hub.
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Breakeven: 2026 plan funded at WTI breakeven below $50 per barrel.
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Capital Expenditures: Q3 below guidance midpoint; full-year 2026 unchanged at $6.5 billion.
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Production: Record oil, NGL and natural gas volumes in Q3, all above guidance midpoint; full-year 2026 guidance of 5% oil growth and 14% total production growth.
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Costs: Total per unit cash operating costs and DD&A both below guidance midpoints in Q3.
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Well Costs: Delaware Basin less than $710 per foot; Utica less than $600 per foot; Eagle Ford less than $525 per foot; Dorado less than $700 per foot; low single-digit well cost reduction expected for 2026.
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Janus Gas Processing Expansion: Capacity to double to 600 million cubic feet per day by H2 2028; total cost ~$300 million (two-thirds in 2027); expected rate of return above 30%; year-to-date netback uplift greater than $0.65 per Mcf at over 99% utilization.
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Verde Gas Pipeline: Netback uplifts of $0.50 per Mcf year to date.
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Utica Sand Mine: Expected open by end of 2026; anticipated savings above $300,000 per well.
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Asset Divestitures: Legacy Barnett and Woodford positions divested for aggregate $400 million; Q3 production of 16,000 Boe/d, including 2,000 Bbl/d oil.
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UAE Concession: First two 1-mile laterals averaged stabilized production of 700 barrels of oil per day per well over first 30 days on artificial lift.
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LNG Agreement: New long-term gas supply agreement with Engie lifts premium-priced LNG feed gas exposure to more than 1 billion cubic feet per day by 2030.
Release Date: November 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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EOG Resources Inc (NYSE:EOG) delivered record oil, NGL, and natural gas production in Q3 2026, with all three streams above guidance midpoints.
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Total per-unit cash operating costs and DD&A came in below guidance midpoints, reflecting strong cost discipline.
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EOG Resources Inc (NYSE:EOG) raised its regular dividend by 8% for 2027, extending a 28-year track record of dividend growth without cuts.
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The company signed a new long-term natural gas supply agreement with Engie, linked to JKM pricing, increasing premium LNG feed gas exposure to over 1 Bcf per day by 2030.
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EOG Resources Inc (NYSE:EOG) approved the expansion of its Janus gas processing plant in the Delaware Basin, expected to double capacity to 600 MMcf/d and deliver a return exceeding 30%.
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EOG Resources Inc (NYSE:EOG) expects to return a minimum of 70% of free cash flow to shareholders in 2026, with $2.2 billion in free cash flow generated in Q3.
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The company maintains a pristine balance sheet with $5.7 billion in cash and net debt of approximately $2.2 billion, with a leverage target below 1x EBITDA at bottom-cycle prices.
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EOG Resources Inc (NYSE:EOG) achieved well cost reductions, with Delaware Basin well costs below $710 per foot, Utica below $600 per foot, and Eagle Ford below $525 per foot.
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The UAE oil concession is progressing well, with initial wells exceeding expectations and averaging 700 barrels of oil per day per well.
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EOG Resources Inc (NYSE:EOG) expects low single-digit oil production growth in 2027, supported by consistent activity levels and capital discipline.
Negative Points
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EOG Resources Inc (NYSE:EOG) expects modest cost inflation in 2027 for drilling and completions due to tighter service markets and higher steel and diesel costs.
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Operations in Bahrain remain intermittent due to ongoing regional conflict, delaying well results and creating uncertainty.
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The company faces potential upward service pricing pressure and higher steel and diesel costs, which could impact margins despite mitigation efforts.
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EOG Resources Inc (NYSE:EOG) divested legacy Barnett and Woodford positions, reducing production by 16,000 barrels of oil equivalent per day, including 2,000 barrels of oil per day.
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Oil prices remain volatile, and while
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
