10-Q · May 5, 2026
EOG Resources reported Q1 2026 revenues of $6.92 billion and diluted EPS of $3.70, exceeding analyst expectations significantly. The company achieved a gross margin of 63.4% and noted a positive shift in operating…
Earnings analysis · 10-Q
EOG earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
EOG delivered a strong Q2, with $8.620 billion of operating revenues, $5.15 diluted EPS and a 40.9% implied operating margin, all meaningfully above both Q1 2026 and Q2 2025 levels. Results were driven by a 51%…
Read full summary
EOG delivered a strong Q2, with $8.620 billion of operating revenues, $5.15 diluted EPS and a 40.9% implied operating margin, all meaningfully above both Q1 2026 and Q2 2025 levels. Results were driven by a 51% year-over-year increase in realized oil prices and 24% production growth, especially from the Utica and Permian. Liquidity improved to $4.907 billion of cash with an undrawn $3.0 billion revolver, while management maintained a $6.3 billion-$6.7 billion capital plan and expects 14% full-year total-production growth; principal offsets are commodity-price volatility and rising GP&T costs.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.15
- Operating margin
- 40.9%
- Segment
- United States: 1,357.1 MBoed in Q2 2026 versus 1,090.9 MBoed in Q2 2025 (+24%); crude oil and condensate volumes were 546.2 MBbl/d versus 503.1 MBbl/d.
- Segment
- Trinidad: 50.9 MBoed versus 43.2 MBoed (+18%); crude oil and condensate volumes were 2.1 MBbl/d versus 1.1 MBbl/d.
- Segment
- Other International: 2.4 MBoed in Q2 2026 versus nil in Q2 2025, reflecting UAE and Bahrain production.
What stood out
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Revenue and EPS accelerated sharply
Second-quarter operating revenues and other rose $3.142 billion, or 57%, year over year to $8.620 billion, and increased 25% from $6.890 billion in Q1 2026. Diluted EPS of $5.15 was up 109% from $2.46 a year ago and 39% from $3.70 sequentially.
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Operating-margin expansion
Implied operating margin expanded to 40.9% from 31.9% in Q2 2025 and 37.3% in Q1 2026: $8.620 billion of operating revenues less $5.092 billion of operating expenses. The year-over-year expansion was supported by a 51% increase in composite oil price to $98.15 per barrel.
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Volumes rose across hydrocarbon streams
Production reached 1,410.4 MBoed, up 24% from 1,134.1 MBoed in Q2 2025. Crude oil and condensate deliveries rose 9% to 548.8 MBbl/d, NGL deliveries increased 34% to 346.8 MBbl/d, and natural-gas deliveries increased 39% to 3,089 MMcf/d.
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Cash generation and liquidity strengthened
First-half operating cash flow increased $3.314 billion year over year to $7.635 billion, while cash and equivalents increased $1.511 billion from year-end to $4.907 billion. The $3.0 billion revolving credit facility remained undrawn.
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Capital-return capacity expanded
Capital returns remained substantial: EOG repurchased $1.717 billion of stock and paid $1.084 billion in dividends in the first half. The board expanded the repurchase authorization to $20 billion, with $11.651 billion available at June 30.
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Cash flow covers investment program
Capital intensity remained controlled relative to cash flow: first-half total expenditures were $3.687 billion, or 48% of $7.635 billion operating cash flow. Full-year capital spending remains planned at $6.3 billion to $6.7 billion.
What to watch
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High sensitivity to oil and NGL prices
Commodity-price exposure remains material despite hedging: each $1.00-per-barrel change in crude oil and condensate prices, including estimated NGL effects, represents approximately $172 million of full-year 2026 net income sensitivity and $221 million of pretax operating-cash-flow sensitivity.
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Gas-price pressure remains a risk
Natural-gas pricing weakened in Q2 despite higher volumes: composite realized gas price fell 2% year over year to $2.89 per Mcf, while EOG estimates each $0.10-per-Mcf price change affects full-year 2026 net income by about $60 million.
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Utica-linked GP&T costs increased
Infrastructure costs rose with Utica growth. Q2 GP&T expense increased $221 million to $676 million, and GP&T cost per Boe increased to $5.27 from $4.41; management cautioned that tariffs, Middle East conflict and other macro factors could raise operating and capital costs.
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Higher interest expense despite sound leverage
Debt servicing costs are higher following 2025 note issuance: Q2 net interest expense rose $16 million year over year to $67 million. Although leverage is contained, debt-to-total capitalization was 20% at June 30, 2026.
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Geopolitical volatility remains elevated
No discrete new Item 1A risk-factor amendment was identified in the supplied 10-Q text. However, management specifically cites ongoing Middle East conflict and maritime-route disruption as price and cost uncertainties; NYMEX oil averaged $82.57 per barrel in the first half, up 22% year over year.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. EOG retained its 2026 capital-expenditure budget of $6.3 billion to $6.7 billion and expects full-year oil production to increase approximately 5% and total production to increase approximately 14% versus 2025. Management also expects higher full-year crude oil and condensate prices than anticipated at the beginning of 2026, due to the Middle East conflict.
Earlier filings 4
10-K · February 24, 2026
EOG positions itself as a high-return, low-cost E&P operator emphasizing technology and internally generated prospects; it reported material scale with 5,514 MMBoe of proved reserves and materially higher production…
10-Q · August 7, 2025
EOG reported Q2 2025 operating revenues of $5,478 million and diluted EPS of $2.46. Operating income was $1,747 million (31.9% operating margin), down versus the prior-year quarter. U.S. operations remain the core…
10-Q · May 1, 2025
EOG reported Q1 2025 operating revenues of $5,669 million, with operating income of $1,859 million and net income of $1,463 million (diluted EPS $2.65). Revenue and profitability declined versus Q1 2024 (revenue down…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.