Revenue Performance - In Q3 2025, total operating revenues decreased by $118 million, or 2%, to $5,847 million compared to $5,965 million in Q3 2024[116] - Crude oil and condensate revenues fell by $245 million, or 7%, to $3,243 million in Q3 2025, primarily due to a lower composite average price[121] - Natural gas revenues surged by $335 million, or 90%, to $707 million in Q3 2025, driven by a 39% increase in natural gas deliveries[123] - Total operating revenues for the first nine months of 2025 decreased by $1,119 million, or 6%, to $16,994 million from $18,113 million in the same period of 2024[144] - Crude oil and condensate revenues for the first nine months of 2025 decreased by $1,150 million, or 11%, to $9,510 million, attributed to a lower composite average price[147] - Natural gas revenues for the first nine months of 2025 increased by $887 million, or 84%, to $1,944 million, driven by a higher composite average price and increased natural gas deliveries[149] Operating Expenses - Operating expenses for Q3 2025 were $4,011 million, an increase of $135 million from $3,876 million in Q3 2024[127] - Operating expenses for the first nine months of 2025 were $11,552 million, a decrease of $71 million from $11,623 million in the same period of 2024[152] - G&A expenses for the first nine months of 2025 increased by $116 million to $596 million, primarily due to increased professional services and costs related to the Encino acquisition[157] - Exploration costs for Q3 2025 were $71 million, an increase of $28 million from $43 million in Q3 2024, primarily due to geological and geophysical expenditures in Trinidad and the United States[138] Financial Metrics - EOG's cash return commitment was increased to a minimum of 70% of annual net cash provided by operating activities starting in fiscal year 2024[110] - The Board declared a quarterly cash dividend of $1.02 per share for Q4 2025, an increase from the previous $0.975 per share[113] - The net effective tax rate for Q3 2025 decreased to 19% from 22% in Q3 2024, primarily due to a reduction in state deferred income tax liability[143] - Cash and cash equivalents on hand at September 30, 2025, were $3.5 billion, with an additional $1.9 billion available under the senior unsecured revolving credit facility[162] - Net cash provided by operating activities for the first nine months of 2025 was $7,432 million, a decrease of $1,948 million compared to the same period of 2024[165] - Total impairments for the first nine months of 2025 were $154 million, an increase from $115 million in the same period of 2024[160] Investment and Financing Activities - Net cash used in investing activities for the first nine months of 2025 was $9,174 million, an increase of $4,483 million compared to the same period in 2024, primarily due to the acquisition of Encino for $4,464 million[166] - Net cash used in financing activities for the first nine months of 2025 was $1,820 million, which included treasury stock purchases of $1,887 million and dividend payments of $1,611 million[167] - Total expenditures for the full year 2025 are estimated to range from $6.2 billion to $6.4 billion, excluding the Encino acquisition[169] - Exploration and development expenditures for the first nine months of 2025 were $11,493 million, which is $7,160 million higher than the same period in 2024, primarily due to increased property acquisitions[172] - Property acquisitions for the first nine months of 2025 included $6,721 million related to the Encino acquisition[170] Strategic Initiatives and Risks - EOG's acquisition of Encino Acquisition Partners, LLC is expected to enhance its operational capabilities and strategic positioning in the market[191] - The company aims to increase production levels and achieve anticipated rates of return from its existing and future crude oil and natural gas projects[192] - EOG is focused on controlling drilling, completion, and operating costs to maximize reserve recoveries and improve overall efficiency[192] - The company is actively working on cost-mitigation initiatives to offset inflationary pressures on operating costs and capital expenditures[192] - EOG's future financial performance may be impacted by fluctuations in commodity prices, which are subject to market demand and supply dynamics[193] - The company is committed to developing and implementing emissions and environmental initiatives to meet its sustainability targets[193] - EOG's ability to integrate Encino's assets and operations effectively is crucial for realizing the anticipated benefits of the acquisition[193] - The company faces risks related to cybersecurity threats that could disrupt its business operations[192] - EOG's financial performance is influenced by geopolitical factors and economic conditions in the regions where it operates[193] - The company is exposed to market risks including commodity price risk, interest rate risk, and foreign currency exchange rate risk[196] Commodity and Derivative Contracts - EOG recognized net gains on financial commodity derivatives of $116 million in Q3 2025, up from $79 million in Q3 2024[124] - The total fair value of EOG's financial commodity and other derivative contracts was a net asset of $46 million as of September 30, 2025[175] - The net cash received from settlements of financial commodity derivative contracts during the third quarter of 2025 was $27 million[175] - EOG entered into a 10-year agreement to sell 180,000 MMBtud of domestic natural gas production starting in 2027, with a portion indexed to Brent crude oil prices[184] - EOG's updated budget for exploration and development expenditures for 2025 reflects a significant increase in capital expenditures compared to 2024[169] - EOG believes it has significant flexibility regarding financing alternatives and can adjust its exploration and development expenditure budget as needed[173]

Financial Performance - Total revenue for Q3 2025 was $5.847 billion, an increase from $5.478 billion in Q2 2025[4] - Net income for Q3 2025 was $1.471 billion, or $2.70 per share, compared to $1.345 billion, or $2.46 per share in Q2 2025[4] - Operating income decreased from $8.1 billion in 2024 to $5.4 billion in 2025[45] - Net income for 2024 was $6.4 billion, declining to $4.3 billion in 2025[45] - Reported Net Income (GAAP) for Q3 2025 was $1,824 million, resulting in an Adjusted Net Income (Non-GAAP) of $1,821 million, with diluted earnings per share of $2.71[60] - For Q2 2025, Reported Net Income (GAAP) was $1,751 million, leading to an Adjusted Net Income (Non-GAAP) of $1,649 million, with diluted earnings per share of $2.32[62] - In Q1 2025, Reported Net Income (GAAP) was $1,877 million, with an Adjusted Net Income (Non-GAAP) of $2,031 million, resulting in diluted earnings per share of $2.87[64] - For FY 2024, Reported Net Income (GAAP) was $8,218 million, while Adjusted Net Income (Non-GAAP) reached $8,477 million, with diluted earnings per share of $11.62[67] Cash Flow and Expenditures - Generated $1.4 billion in free cash flow and returned nearly $1.0 billion to shareholders through dividends and share repurchases[5][8] - Cash Operating Costs for Q3 2025 were $2.00 per Boe, an increase from $1.80 per Boe in Q2 2025[1] - Total Cash Operating Costs per Boe for Q3 2025 were $20.27, slightly higher than $20.25 in Q2 2025[71] - Net Cash Provided by Operating Activities (GAAP) for 2025 was $7,432 million, with Adjusted Cash Flow from Operations (Non-GAAP) at $8,340 million[78] - Free Cash Flow (Non-GAAP) for 2025 totaled $3,685 million, reflecting strong operational performance[78] - The company incurred $5,967 million in net cash used in investing activities for the year 2024[50] - The company reported a total of $12,143 million in net cash provided by operating activities for the year 2024[50] Production and Operations - Crude oil production reached 534.5 MBod, exceeding the guidance midpoint of 532.4 MBod[6][22] - In Q3 2025, total crude oil and condensate volumes reached 534.5 MBod, exceeding guidance by 2.1 MBod and up from 504.2 MBod in Q2 2025[33] - Natural gas liquids volumes totaled 309.3 MBbld, surpassing guidance by 4.3 MBbld, and significantly increased from 258.4 MBbld in Q2 2025[33] - Total crude oil equivalent volumes were 1,301.2 MBoed, exceeding guidance by 7.9 MBoed, and up from 1,134.1 MBoed in Q2 2025[33] - The company expects natural gas volumes in the U.S. for Q4 2025 to be between 2,740 MMcfd and 2,840 MMcfd, with a midpoint of 2,790 MMcfd[34] - For Q4 2025, crude oil and condensate volumes are guided to be between 542.5 MBod and 547.5 MBod, with a midpoint of 545.0 MBod[34] Capital Expenditures and Investments - Capital expenditures for Q3 2025 totaled $1.648 billion, slightly below the guidance midpoint of $1.650 billion[6] - The guidance for total capital expenditures for FY 2025 is between $6,200 million and $6,400 million, with a midpoint of $6,300 million[34] - The company made significant investments in oil and gas properties, totaling $5,353 million for the year 2024[50] - Total Capital Expenditures (Non-GAAP) for FY 2023 were $6,041 million, compared to $4,607 million in FY 2022, marking a 31% increase[80] Debt and Equity - Net debt increased to $4.164 billion, with a net debt-to-total capitalization ratio of 12.1%[4] - The net debt-to-total capitalization ratio was reported at 30%[45] - Long-term debt increased significantly from $3,757 million in March 2024 to $7,667 million by September 2025, indicating a rise of 104.8%[49] - Debt-to-Total Capitalization (GAAP) ratio increased to 20.3% in September 2025 from 12.7% in June 2025[82] Market Conditions and Risks - The average benchmark price for WTI crude oil was $64.95 per barrel, compared to $71.42 in Q2 2025, reflecting a decrease of 9.3%[33] - EOG's future financial position and performance are subject to risks including commodity price fluctuations and operational costs[1] - The company anticipates benefits from the acquisition of Encino, although integration risks exist[1] - The effective income tax rate for Q3 2025 was 19.4%, lower than the guidance of 20.5%[33] Shareholder Returns - The company declared a regular dividend of $1.02 per share, representing an indicated annual rate of $4.08 per share[10] - EOG committed to returning 89% of its estimated annual free cash flow to shareholders, with potential for additional returns[8] - The company declared dividends of $2.97 per share for 2025, compared to $3.70 per share in 2024[45]

Core Insights - EOG Resources exceeded analysts' profit expectations for the third quarter, driven by increased output which helped mitigate the impact of declining crude prices [1] Company Performance - The rise in output from EOG Resources played a crucial role in offsetting the negative effects of lower crude prices [1]

Company Overview - EOG Resources, Inc. is a leading independent oil and gas company based in Houston, Texas, focusing on efficient exploration, development, and production of hydrocarbons, primarily in key U.S. basins like the Permian Basin, Eagle Ford, and Bakken [1] - The company has a market capitalization of $56.68 billion and emphasizes sustainability while maximizing resource potential and operational efficiency to create long-term shareholder value [2] Stock Performance - EOG's stock has faced challenges, declining by 12.6% over the past 52 weeks and 4.7% over the past six months, with a 52-week high of $138.18 in January, representing a 23.6% decrease from that peak [3] - The stock has underperformed compared to the S&P 500 Index, which gained 19.6% over the past 52 weeks and 20.5% over the past six months, as well as the Energy Select Sector SPDR Fund (XLE), which saw a marginal increase over the same periods [4] Financial Performance - For Q2 of fiscal 2025, EOG reported revenue of $5.48 billion, which is 9.1% lower year-over-year but above the analyst expectation of $5.46 billion; adjusted net income per share was $2.32, lower than the previous year's $3.16 but higher than the expected $2.21 [5] - Following the Encino acquisition, EOG revised its full-year total capital expenditures outlook to a range of $6.2 billion to $6.4 billion [5] Analyst Outlook - Wall Street analysts have a mixed outlook for EOG, expecting a 14.5% year-over-year drop in EPS to $9.93 for fiscal year 2025, but a slight increase of 1.4% to $10.07 in fiscal 2026 [6] - For Q3, EPS is projected to decrease by 15.9% annually to $2.43, although the company has a strong track record of exceeding consensus EPS estimates in the previous four quarters [7]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for EOG Resources due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - EOG Resources is expected to report quarterly earnings of $2.44 per share, reflecting a year-over-year decrease of 15.6% [3]. - Revenues are projected to be $5.94 billion, down 0.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.99% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for EOG Resources is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.56% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [9][10]. - EOG Resources currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, EOG Resources exceeded the expected earnings of $2.21 per share by delivering $2.32, resulting in a surprise of +4.98% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates four times [14]. Market Reaction Factors - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [15]. - It is advisable to consider Earnings ESP and Zacks Rank before making investment decisions regarding EOG Resources [16].

Group 1 - EOG Resources, Inc. is considered one of the best bargain stocks to buy in November, with Piper Sandler reducing the price target from $136 to $129 while maintaining a "Neutral" rating [1] - The focus heading into Q3 2025 earnings includes improvement in intermediate-term oil sentiment, secular gas demand driven by power and data centers, FY 2026 outlook on capital efficiency, and expectations for continued M&A activity [1] - EOG's portfolio expansion through the Encino acquisition, entry into Bahrain and the UAE, and healthy exploration progress in its domestic portfolio and Trinidad has significantly enhanced its asset base [2] Group 2 - EOG Resources maintains one of the strongest balance sheets in the broader industry while improving its resource base [2]

Core Insights - The article discusses the investment strategy based on dividend yields, particularly focusing on stocks that currently yield above their historical averages, indicating potential investment opportunities [3][5]. Group 1: Investment Strategy - Stocks with a dividend yield above their historical average may indicate either a recent dividend increase or a drop in stock price, suggesting a potential bargain [3]. - The late Geraldine Weiss popularized this investment approach, emphasizing that "Dividends Don't Lie" [3]. Group 2: Stock Analysis - **EOG Resources**: The company produces over one million barrels of oil annually, with a current dividend yield of 3.7%, up from a historical average of 1.8%. The dividend payout increased from $1.01 per share in 2019 to $3.77 in the past four quarters [7]. - **Molson Coors**: This brewer has a current dividend yield of 4%, higher than its historical average of 2.5%. The stock has lost nearly 50% of its value over the past decade, prompting diversification efforts into hard cider, seltzer, and energy drinks [8][9]. - **Novo Nordisk**: Known for diabetes medications, the stock's yield is currently 3.3%, above its ten-year median of 1.9%. The company has a net profit margin exceeding 35% and a return on equity of about 81%, with the stock trading at approximately 14 times earnings [10][11]. - **Interparfums**: This company has a current dividend yield of 3.2%, up from a historical average of 1.7%. Despite a decline in stock price from about $158 five years ago to around $96, the company reported a 7% increase in sales and a 17% increase in earnings over the past year [12][13].

Core Insights - Laura Starks is the founder and CEO of Starks Energy Economics, LLC, established in 2007, with expertise in energy investments [1] - The company covers a wide range of sectors including utilities, independent power producers, energy service companies, petrochemical companies, and all segments of oil and natural gas: upstream, midstream, and downstream [1] Company Overview - Starks Energy Economics, LLC specializes in analyzing and investing in energy-related companies [1] - The founder has a background in chemical engineering and an MBA focused on finance, which supports her investment strategies [1] Industry Focus - The analysis includes various sectors within the energy industry, indicating a comprehensive approach to understanding market dynamics [1] - The coverage spans from utilities to all aspects of oil and natural gas, highlighting the firm's broad industry expertise [1]

Core Insights - EOG Resources, Inc. is set to announce its third-quarter results on November 6, with analysts expecting an adjusted profit of $2.43 per share, a decrease of 15.9% from the previous year's $2.89 per share [2] - For the full fiscal year 2025, EOG is projected to deliver an adjusted EPS of $10.02, down 13.8% from $11.62 in 2024, but is expected to see a 4.3% growth in 2026 to $10.45 per share [3] - EOG's stock has declined by 15.1% over the past 52 weeks, underperforming the Energy Select Sector SPDR Fund's 2.8% decline and the S&P 500 Index's 14.5% return during the same period [4] Financial Performance - In Q2, EOG's overall topline dropped 9.1% year-over-year to $5.5 billion, yet it exceeded market expectations by 30 basis points [5] - The adjusted EPS for Q2 was $2.32, reflecting a 26.6% year-over-year decline, but it surpassed consensus estimates by nearly 5% [5] Analyst Ratings - The consensus opinion on EOG is cautiously optimistic, with a "Moderate Buy" rating; among 32 analysts, there are 12 "Strong Buys," 2 "Moderate Buys," and 18 "Holds" [6] - The mean price target for EOG is $138.97, indicating a 30.8% premium to current price levels [6]

Core Viewpoint - Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts due to labor market weakness, suggesting investors consider adding dividend stocks for stable income [1] Group 1: EOG Resources - EOG Resources is a crude oil and natural gas exploration and production company, recently acquiring Encino Acquisition Partners for $5.6 billion, which is expected to enhance its free cash flow and shareholder returns [3][4] - EOG raised its quarterly dividend by 5% to $1.02 per share, resulting in an annualized dividend of $4.08 per share and a yield of 3.8% [4] - RBC Capital analyst Scott Hanold reiterated a buy rating on EOG, raising the price target from $140 to $145, while TipRanks' AI Analyst has an "outperform" rating with a price target of $133 [4][6] - Hanold updated his earnings per share (EPS) estimates for 2025 and 2026 to $10.07 and $9.46, respectively, reflecting higher oil price expectations [5] - Hanold believes EOG will outperform its peers due to its technological edge, strong balance sheet, and capital efficiency [6] Group 2: Coterra Energy - Coterra Energy, focused on exploration and production in the Permian Basin, Marcellus Shale, and Anadarko Basin, paid a quarterly dividend of 22 cents per share, yielding 3.4% [7] - Analyst Gabriele Sorbara reiterated a buy rating on Coterra but lowered the price target from $35 to $32, while TipRanks' AI Analyst has a "neutral" rating with a price target of $26 [8] - Sorbara expects Q3 oil production to exceed expectations but anticipates EBITDA and free cash flow may lag due to gas pricing issues [10] - Sorbara maintains a buy rating on Coterra, citing attractive valuation and potential for strong capital returns [11] Group 3: AT&T - AT&T declared a quarterly dividend of 27.75 cents per share, with an annualized dividend of $1.11 per share, yielding 4.3% [13] - Citigroup analyst Michael Rollins reiterated a buy rating on AT&T with a price target of $32, expecting strong Q3 performance across strategic products [14][15] - Rollins forecasts 300,000 postpaid phone net additions and 2.5% year-over-year growth in wireless service revenue for Q3 [15] - The analyst also estimates 286,000 fiber net additions and 210,000 net additions for fixed wireless access in Q3 [16] - Rollins believes AT&T's broadband opportunity is an under-appreciated aspect of its financial growth prospects [17]