EOG RESOURCES INC
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
EOG$147.13+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000821189-25-000022
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000821189-25-000070
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 140 current paragraphs.
65 unchanged; 38 reworded; 29 added; 3 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 6 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
On July 4, 2025, the U.S. President signed into law the One Big Beautiful Bill Act, which primarily made permanent (generally with amendments) certain tax provisions of the 2017 Tax Cuts and Jobs Act. Included, among others, were changes to business tax provisions such as permanently restoring 100% bonus depreciation and full domestic research expensing. While the legislation is expected to reduce EOG's 2025 cash tax payments, it is not expected to have a material impact on earnings.
Current report
On August 1, 2025, EOG completed its previously announced acquisition of Encino Acquisition Partners, LLC (Encino). The assets of Encino include 675,000 core net acres in the Utica play. The financial results of Encino will be included in EOG's consolidated financial statements beginning August 1, 2025.
Current report
In May 2025, a subsidiary of EOG was awarded a new oil exploration concession for Unconventional Onshore Block 3 (UCO3) by Abu Dhabi's Supreme Council for Financial and Economic Affairs. EOG holds one hundred percent equity and operatorship and, in coordination with Abu Dhabi National Oil Company (ADNOC), will explore and appraise unconventional oil in the concession area. Following a three-year appraisal phase, EOG may enter into a production concession in which ADNOC has the option to participate.
Current report
On July 1, 2025, EOG closed on its offering of $500 million aggregate principal amount of its 4.400% Senior Notes due 2028, $1.25 billion aggregate principal amount of its 5.000% Senior Notes due 2032, $1.25 billion aggregate principal amount of its 5.350% Senior Notes due 2036 and $500 million aggregate principal amount of its 5.950% Senior Notes due 2055 (collectively, the New Notes). Interest on the New Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2026. EOG received net proceeds of $3.47 billion from the issuance of the New Notes, which were used for general corporate purposes, including the payment of a portion of the consideration for the acquisition of Encino and related fees, costs and expenses. See below related discussion.
Current report
On August 1, 2025, EOG completed the acquisition of Encino for cash consideration of approximately $4,484 million and the assumption of Encino's senior notes in an aggregate principal amount of $1,200 million. In connection with the completion of the acquisition, EOG repaid and redeemed such senior notes in full, utilizing aggregate cash of approximately $1,292 million (inclusive of applicable redemption premiums and accrued and unpaid interest).
Current report
On May 30, 2025, the Board declared a quarterly cash dividend on the common stock of $1.02 per share to be paid on October 31, 2025, to stockholders of record as of October 17, 2025. This represents an increase from the previous quarterly cash dividend which was $0.975 per share.
Current report
NGL revenues for the second quarter of 2025 increased $19 million, or 4%, to $534 million from $515 million for the same period of 2024 due to an increase of 13.6 MBbld, or 6%, in NGL deliveries ($30 million), partially offset by a lower composite average price ($11 million). Increased production was primarily from the Permian Basin and Utica. EOG's composite NGL price for the second quarter of 2025 decreased 2% to $22.70 per barrel compared to $23.11 per barrel for the same period of 2024.
Current report
DD&A expenses for the second quarter of 2025 increased $69 million to $1,053 million from $984 million for the same prior year period. DD&A expenses associated with oil and gas properties for the second quarter of 2025 were $55 million higher than the same prior year period. The increase primarily reflects increased production in the United States ($68 million) and in Trinidad ($8 million), partially offset by decreased unit rates in the United States ($17 million) and in Trinidad ($4 million). DD&A expenses associated with other property, plant and equipment for the second quarter of 2025 were $14 million higher than the same prior year period primarily due to an increase in expenses related to GP&T assets and equipment.
Current report
Exploration costs of $74 million for the second quarter of 2025 increased $40 million from $34 million for the same prior year period primarily due to geological and geophysical expenditures in the United Arab Emirates ($22 million), the United States ($8 million) and Trinidad ($6 million).
Current report
Taxes other than income include severance/production taxes, ad valorem/property taxes, payroll taxes, franchise taxes and other miscellaneous taxes. Severance/production taxes are generally determined based on wellhead revenues, and ad valorem/property taxes are generally determined based on the valuation of the underlying assets.
Current report
Taxes other than income for the second quarter of 2025 decreased $36 million to $301 million (7.3% of revenues from sales of crude oil and condensate, NGLs and natural gas) from $337 million (7.5% of revenues from sales of crude oil and condensate, NGLs and natural gas) for the same prior year period. The decrease in taxes other than income was primarily due to decreased severance/production taxes in the United States.
Current report
Other income, net of $55 million for the second quarter of 2025 decreased $11 million from $66 million for the same prior year period. The decrease was primarily due to decreased interest income.
Current report
Six Months Ended June 30, 2025 vs. Six Months Ended June 30, 2024
Current report
Operating Revenues and Other. During the first six months of 2025, operating revenues decreased $1,001 million, or 8%, to $11,147 million from $12,148 million for the same period of 2024. Total revenues from sales of EOG's production of crude oil and condensate, NGLs and natural gas for the first six months of 2025 decreased $275 million, or 3%, to $8,610 million from $8,885 million for the same period of 2024. During the first six months of 2025, EOG recognized net losses on the mark-to-market of financial commodity and other derivative contracts of $84 million compared to net gains of $190 million for the same period of 2024. Gathering, processing and marketing revenues for the first six months of 2025 decreased $391 million, or 13%, to $2,587 million from $2,978 million for the same period of 2024.
Current report
Crude oil and condensate revenues for the first six months of 2025 decreased $905 million, or 13%, to $6,267 million from $7,172 million for the same period of 2024 due to a lower composite average price ($1,074 million), partially offset by an increase of 14.1 MBbld, or 3%, in crude oil and condensate production ($169 million). Increased production was primarily in the Permian Basin, Utica and Rocky Mountain area. EOG's composite crude oil and condensate price for the first six months of 2025 decreased 15% to $68.81 per barrel compared to $80.58 per barrel for the same period of 2024.
Current report
NGL revenues for the first six months of 2025 increased $78 million, or 8%, to $1,106 million from $1,028 million for the same period of 2024 due to an increase of 11.8 MBbld, or 5%, in NGL deliveries ($45 million) and a higher composite average price ($33 million). Increased production was primarily from the Permian Basin and Utica. EOG's composite NGL price for the first six months of 2025 increased 3% to $24.42 per barrel compared to $23.70 per barrel for the same period of 2024.
Current report
During the first six months of 2025, EOG recognized net losses on the mark-to-market of financial commodity and other derivative contracts of $84 million compared to net gains of $190 million for the same period of 2024. The net losses of $84 million included losses of $53 million related to the Brent linked gas sales contract. During the first six months of 2025, net cash payments for settlements of financial commodity derivative contracts was $62 million. Net cash received from settlements of financial commodity derivative contracts was $134 million for the same period of 2024.
Current report
Lease and well expenses of $797 million for the first six months of 2025 increased $11 million from $786 million for the same prior year period primarily due to increased operating and maintenance costs in the United States ($21 million) and Trinidad ($5 million) and increased lease and well administrative expenses ($9 million), partially offset by decreased workover expenditures in the United States ($24 million).
Current report
GP&T costs of $895 million for the first six months of 2025 increased $59 million from $836 million for the same prior year period primarily due to increased GP&T costs related to increased production in the Permian Basin and Utica, partially offset by a decrease in GP&T costs in the Eagle Ford.
Current report
G&A expenses of $357 million for the first six months of 2025 increased $44 million from $313 million for the same prior year period primarily due to increased professional services and other costs, including Encino acquisition-related costs ($23 million), employee-related costs ($16 million) and information systems costs ($4 million).
Current report
Interest expense, net of $98 million for the first six months of 2025 increased $29 million compared to the same prior year period primarily due to the issuance in November 2024 of the $1,000 million aggregate principal amount of 5.650% Senior Notes due 2054 ($29 million) and financing commitment costs related to the acquisition of Encino ($6.5 million), partially offset by the maturity in April 2025 of the $500 million aggregate principal amount of 3.15% Senior Notes due 2025 ($4 million).
Current report
Exploration costs of $115 million for the first six months of 2025 increased $36 million from $79 million for the same prior year period due primarily to geological and geophysical expenditures in the United Arab Emirates ($22 million), the United States ($6 million) and Trinidad ($6 million).
Current report
Taxes other than income for the first six months of 2025 decreased $33 million to $642 million (7.5% of revenues from sales of crude oil and condensate, NGLs and natural gas) from $675 million (7.6% of revenues from sales of crude oil and condensate, NGLs and natural gas) for the same prior year period. The decrease in taxes other than income was primarily due to decreased severance/production taxes ($30 million) and decreased ad valorem/property taxes ($5 million), all in the United States.
Current report
Other income, net of $120 million for the first six months of 2025 decreased $8 million from $128 million for the same prior year period. The decrease was primarily due to decreased interest income.
Current report
Income taxes of $820 million for the first six months of 2025 decreased from income taxes of $981 million for the first six months of 2024 primarily due to decreased pretax income. The net effective tax rate for the first six months of 2025 increased to 23% from 22% for the first six months of 2024.
Current report
See Notes 8 and 9 to the Condensed Consolidated Financial Statements for further discussion of our debt obligations, including the fair value of our senior notes.
Current report
(3) Asset Retirement Costs for the six-month period ended June 30, 2024 included a downward revision to asset retirement obligations of $84 million.
Current report
Encino Financial Commodity Derivative Contracts. In connection with the acquisition of Encino, EOG assumed (via novation) certain natural gas and NGLs financial derivative contracts from Encino. Presented below is a summary of such contracts outstanding as of August 1, 2025. Natural gas volumes are presented in MMBtud and prices are presented in $/MMBtu. NGLs volumes are presented in thousands of barrels per day (MBbld) and prices are presented in dollars per barrel ($/Bbl).
Current report
•EOG's failure to realize, in full or at all, the anticipated benefits of its acquisition of Encino and/or business disruptions resulting from the acquisition (e.g., relating to the integration of Encino's assets and operations into EOG's operations) that could harm EOG's business operations (including current plans and operations and the diversion of management's attention from EOG's ongoing business operations);
Removed paragraphs (3)
Previous report
In the first three months of 2025, EOG completed the installation of the Mento pipeline and associated tie-ins that connect the Mento platform in the Ska, Mento and Reggae (SMR) Area to the Pelican platform. Additionally, on January 29, 2025, EOG executed two production sharing contracts with the Government of Trinidad and Tobago for the Lower Reverse L (LRL) and North Coast Marine Area 4(a) Blocks. In 2025, EOG expects to (i) drill and, if successful, complete two net exploratory wells and drill and complete two net development wells, all in the Mento Field located in the SMR Area; (ii) commence an ocean bottom nodal 3D seismic survey over a portion of the LRL and SECC Blocks; and (iii) commence construction of the platform for the Coconut field located in the East Mayaro and South East Galeota Blocks.
Previous report
The Internal Revenue Service previously announced tax relief related to 2024 severe weather events occurring in various Texas counties, including Harris County, where EOG's corporate offices are located. The tax relief permitted eligible taxpayers to postpone certain tax filings and payments. In February 2025, EOG paid approximately $700 million of such federal tax payments related to the 2024 tax year.
Previous report
NGL revenues for the first quarter of 2025 increased $59 million, or 12%, to $572 million from $513 million for the same period of 2024 due to a higher composite average price ($42 million) and an increase of 10.0 MBbld, or 4%, in NGL deliveries ($17 million). Increased production was primarily from the Permian Basin and Utica. EOG's composite NGL price for the first quarter of 2025 increased 8% to $26.29 per barrel compared to $24.32 per barrel for the same period of 2024.
Reworded paragraphs (38)
Previous wording
For the first three months of 2025, the average U.S. New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $71.42 per barrel and $3.66 per million British thermal units (MMBtu), respectively, representing a decrease of 7% and an increase of 63%, respectively, from the average NYMEX prices for the same period in 2024. Market prices for NGLs are influenced by the components extracted, including ethane, propane and butane and natural gasoline, among others, and the respective market pricing for each component.
Current wording
For the first six months of 2025, the average U.S. New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $67.55 per barrel and $3.55 per million British thermal units (MMBtu), respectively, representing a decrease of 14% and an increase of 72%, respectively, from the average NYMEX prices for the same period in 2024. Market prices for NGLs are influenced by the components extracted, including ethane, propane and butane and natural gasoline, among others, and the respective market pricing for each component.
Previous wording
Based on EOG's tax position, EOG's price sensitivity as of March 31, 2025, for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGL price, is approximately $159 million for net income and $204 million for pretax cash flows from operating activities, in each case for the full-year 2025.
Current wording
Including the impact of EOG's NGL financial derivative contracts and based on EOG's tax position, EOG's price sensitivity as of June 30, 2025, for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGL price, is approximately $167 million for net income and $214 million for pretax cash flows from operating activities, in each case for the full-year 2025.
Previous wording
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for which prices have not (as of March 31, 2025) been determined under long-term marketing contracts, EOG's price sensitivity as of March 31, 2025, for each $0.10 per thousand cubic feet increase or decrease in natural gas price, is approximately $33 million for net income and $43 million for pretax cash flows from operating activities, in each case for the full-year 2025.
Current wording
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for which prices have not (as of June 30, 2025) been determined under long-term marketing contracts, EOG's price sensitivity as of June 30, 2025, for each $0.10 per thousand cubic feet increase or decrease in natural gas price, is approximately $36 million for net income and $46 million for pretax cash flows from operating activities, in each case for the full-year 2025.
Previous wording
Inflation Considerations. As further discussed in EOG's Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 27, 2025 (EOG's 2024 Annual Report), during 2024 and the early part of 2025, EOG continued to see diminished inflationary pressures on its operating costs and capital expenditures (e.g., for fuel, wellbore tubulars, facilities manufactured using steel, labor and drilling and completion services) and, in certain circumstances, saw declines in prices. However, because the market for such materials, services and labor continues to fluctuate, there can be no assurance that the inflationary pressures experienced by EOG in prior periods will not resume (for example, as a result of the imposition of tariffs or other trade barriers). Further, the timing and impact of any future price changes on EOG's operating costs and capital expenditures is uncertain.
Current wording
Inflation Considerations. As further discussed in EOG's Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 27, 2025 (EOG's 2024 Annual Report), during 2024 and the early part of 2025, EOG continued to see diminished inflationary pressures on its operating costs and capital expenditures (e.g., for fuel, wellbore tubulars, facilities manufactured using steel, labor and drilling and completion services) and, in certain circumstances, saw declines in prices. However, because the market for the materials, services and labor used in our operations continues to fluctuate, there can be no assurance that the inflationary pressures experienced by EOG in prior periods will not resume (for example, as a result of the imposition of tariffs, other trade barriers or other economic factors). Further, the timing and impact of any future price changes on EOG's operating costs and capital expenditures is uncertain.
Previous wording
EOG plans to continue with these initiatives and actions, though there can be no assurance that such efforts will offset, largely or at all, the impacts of any future inflationary pressures (such as from tariffs or other trade barriers) on EOG's operating costs and capital expenditures, cash flows and results of operations. Further, there can be no assurance that the factors contributing to any such future inflationary pressures will not impact EOG's ability to conduct its future day-to-day drilling, completion and production operations.
Current wording
EOG plans to continue with these initiatives and actions, though there can be no assurance that such efforts will offset, largely or at all, the impacts of any future inflationary pressures (such as from tariffs, other trade barriers or other economic factors) on EOG's operating costs and capital expenditures, cash flows and results of operations. Further, there can be no assurance that the factors contributing to any such future inflationary pressures will not impact EOG's ability to conduct its future day-to-day drilling, completion and production operations.
Previous wording
During the first three months of 2025, EOG continued to focus on initiatives to increase its drilling, completion and operating efficiencies and improve well performance and, in turn, mitigate the inflationary pressures on its operating costs and capital expenditures experienced in prior periods. In addition, EOG continued to evaluate certain potential crude oil and condensate, NGLs and natural gas exploration and development prospects and to look for opportunities to add drilling inventory through leasehold acquisitions, farm-ins, exchanges or tactical or bolt-on acquisitions. On a volumetric basis, as calculated using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas, crude oil and condensate and NGLs production accounted for approximately 71% and 72% of EOG's United States production during the first three months of 2025 and 2024, respectively. During the first three months of 2025, EOG's drilling and completion activities occurred primarily in the Delaware Basin and the Eagle Ford play. EOG's major producing areas in the United States are in New Mexico and Texas.
Current wording
During the first six months of 2025, EOG continued to focus on initiatives to increase its drilling, completion and operating efficiencies and improve well performance. In addition, EOG continued to evaluate certain potential crude oil and condensate, NGLs and natural gas exploration and development prospects and to look for opportunities to add drilling inventory through leasehold acquisitions, farm-ins, exchanges or tactical or bolt-on acquisitions. On a volumetric basis, as calculated using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas, crude oil and condensate and NGLs production accounted for approximately 70% and 72% of EOG's United States production during the first six months of 2025 and 2024, respectively. During the first six months of 2025, EOG's drilling and completion activities occurred primarily in the Delaware Basin and the Eagle Ford play. EOG's major producing areas in the United States are in New Mexico and Texas.
Previous wording
Trinidad. In Trinidad, EOG continues to deliver natural gas under existing supply contracts. Several fields in the South East Coast Consortium (SECC) Block, Modified U(a) Block, Block 4(a) and Banyan and Sercan Areas have been developed and are producing natural gas which is sold to the National Gas Company of Trinidad and Tobago Limited and its subsidiary, and crude oil and condensate which is sold to Heritage Petroleum Company Limited.
Current wording
Trinidad. In Trinidad, EOG continues to deliver natural gas under existing supply contracts. Several fields have been developed and are producing natural gas which is sold to the National Gas Company of Trinidad and Tobago Limited and its subsidiary, and crude oil and condensate which is sold to both Heritage Petroleum Company Limited and BP Trinidad and Tobago LLC (bpTT). In January 2025, EOG executed two production sharing contracts with the Government of Trinidad and Tobago for the Lower Reverse L and North Coast Marine Area 4(a) Blocks.
Previous wording
2025 Capital and Operating Plan. Total 2025 capital expenditures are estimated to range from approximately $5.8 billion to $6.2 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses. EOG plans to continue to focus a substantial portion of its exploration and development expenditures in its major producing areas in the United States. In particular, EOG will be focused on United States drilling activity in its plays where it generates the highest rates of return - specifically, in the Delaware Basin, Eagle Ford, Utica and Rocky Mountain area. To further enhance the economics of these plays, EOG expects to continue to improve well performance and to focus on improving operating efficiencies; see the above related discussion. Full-year 2025 total crude oil, NGLs and natural gas production is expected to increase modestly versus 2024. In addition, EOG plans to continue to spend a portion of its anticipated 2025 capital expenditures on leasing acreage, evaluating new prospects and transportation infrastructure.
Current wording
2025 Capital and Operating Plan. Total 2025 capital expenditures are estimated to range from approximately $6.2 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses. EOG plans to continue to focus a substantial portion of its exploration and development expenditures in its major producing areas in the United States. In particular, EOG will be focused on United States drilling activity in its plays where it generates the highest rates of return - specifically, in the Delaware Basin, Eagle Ford, Utica and Rocky Mountain area. To further enhance the economics of these plays, EOG expects to continue to improve well performance and to focus on improving operating efficiencies; see the above related discussion. Relative to 2024, full-year oil production for 2025 (inclusive of production from the acquired Encino assets) is expected to increase by approximately 6% and full-year total crude oil, NGLs and natural gas production for 2025 (inclusive of production from the acquired Encino assets) is expected to increase by approximately 15%. In addition, EOG plans to continue to spend a portion of its anticipated 2025 capital expenditures on leasing acreage, evaluating new prospects and transportation infrastructure.
Previous wording
Capital Structure. One of management's key strategies is to maintain a strong balance sheet with a consistently below average debt-to-total capitalization ratio as compared to those in EOG's peer group. EOG's debt-to-total capitalization ratio was 14% at both March 31, 2025 and December 31, 2024. As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity.
Current wording
Capital Structure. One of management's key strategies is to maintain a strong balance sheet with a consistently below average debt-to-total capitalization ratio as compared to those in EOG's peer group. EOG's debt-to-total capitalization ratio was 13% at June 30, 2025 and 14% at December 31, 2024. As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity.
Previous wording
On May 1, 2025, the Board declared a quarterly cash dividend on the common stock of $0.975 per share to be paid on July 31, 2025, to stockholders of record as of July 17, 2025.
Current wording
On May 1, 2025, the Board declared a quarterly cash dividend on the common stock of $0.975 per share paid on July 31, 2025, to stockholders of record as of July 17, 2025.
Previous wording
The following review of operations for the three months ended March 31, 2025 and 2024 should be read in conjunction with the Condensed Consolidated Financial Statements of EOG and notes thereto included in this Quarterly Report on Form 10‑Q.
Current wording
The following review of operations for the three months and six months ended June 30, 2025 and 2024 should be read in conjunction with the Condensed Consolidated Financial Statements of EOG and notes thereto included in this Quarterly Report on Form 10‑Q.
Previous wording
Operating Revenues and Other. During the first quarter of 2025, operating revenues decreased $454 million, or 7%, to $5,669 million from $6,123 million for the same period of 2024. Total revenues from sales of EOG's production of crude oil and condensate, NGLs and natural gas for the first quarter of 2025 increased $127 million, or 3%, to $4,502 million from $4,375 million for the same period of 2024. EOG recognized net losses on the mark-to-market of financial commodity and other derivative contracts of $191 million for the first quarter of 2025 compared to net gains of $237 million for the same period of 2024. Gathering, processing and marketing revenues for the first quarter of 2025 decreased $119 million to $1,340 million from $1,459 million for the same period of 2024. EOG recognized net losses on asset dispositions of $1 million for the first quarter of 2025 compared to net gains of $26 million for the same period of 2024.
Current wording
Operating Revenues and Other. During the second quarter of 2025, operating revenues decreased $547 million, or 9%, to $5,478 million from $6,025 million for the same period of 2024. Total revenues from sales of EOG's production of crude oil and condensate, NGLs and natural gas for the second quarter of 2025 decreased $402 million, or 9%, to $4,108 million from $4,510 million for the same period of 2024. EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $107 million for the second quarter of 2025 compared to net losses of $47 million for the same period of 2024. Gathering, processing and marketing revenues for the second quarter of 2025 decreased $272 million to $1,247 million from $1,519 million for the same period of 2024.
Previous wording
Crude oil and condensate revenues for the first quarter of 2025 decreased $187 million, or 5%, to $3,293 million from $3,480 million for the same period of 2024. The decrease was due to a lower composite average price ($249 million), partially offset by an increase of 14.7 MBbld, or 3%, in crude oil and condensate production ($62 million). Increased production was primarily from the Utica, Permian Basin and Rocky Mountain area. EOG's composite crude oil and condensate price for the first quarter of 2025 decreased 7% to $72.87 per barrel compared to $78.45 per barrel for the same period of 2024.
Current wording
Crude oil and condensate revenues for the second quarter of 2025 decreased $718 million, or 19%, to $2,974 million from $3,692 million for the same period of 2024. The decrease was due to a lower composite average price ($826 million), partially offset by an increase of 13.5 MBbld, or 3%, in crude oil and condensate production ($108 million). Increased production was primarily from the Permian Basin and Utica. EOG's composite crude oil and condensate price for the second quarter of 2025 decreased 22% to $64.82 per barrel compared to $82.69 per barrel for the same period of 2024.
Previous wording
Natural gas revenues for the first quarter of 2025 increased $255 million, or 67%, to $637 million from $382 million for the same period of 2024. The increase was due to a higher composite average price ($214 million) and an increase in natural gas deliveries ($41 million). Natural gas deliveries for the first quarter of 2025 increased 222 MMcfd, or 12%, compared to the same period of 2024 due primarily to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in Dorado and Trinidad. EOG's composite natural gas price for the first quarter of 2025 increased 51% to $3.41 per Mcf compared to $2.26 per Mcf for the same period of 2024.
Current wording
Natural gas revenues for the second quarter of 2025 increased $297 million, or 98%, to $600 million from $303 million for the same period of 2024. The increase was due to a higher composite average price ($238 million) and an increase in natural gas deliveries ($59 million). Natural gas deliveries for the second quarter of 2025 increased 357 MMcfd, or 19%, compared to the same period of 2024 due primarily to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in Dorado and Trinidad. EOG's composite natural gas price for the second quarter of 2025 increased 66% to $2.96 per Mcf compared to $1.78 per Mcf for the same period of 2024.
Previous wording
During the first quarter of 2025, EOG recognized net losses on the mark-to-market of financial commodity and other derivative contracts of $191 million compared to net gains of $237 million for the same period of 2024. The net losses of $191 million included gains of $6 million related to the Brent Crude Oil (Brent) linked gas sales contract. During the first quarter of 2025, net cash paid for settlements of financial commodity derivative contracts was $38 million compared to net cash received from settlements of financial commodity derivative contracts of $55 million for the same period of 2024.
Current wording
During the second quarter of 2025, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $107 million compared to net losses of $47 million for the same period of 2024. The net gains of $107 million included losses of $59 million related to the Brent crude oil (Brent) linked gas sales contract. During the second quarter of 2025, net cash paid for settlements of financial commodity derivative contracts was $24 million compared to net cash received from settlements of financial commodity derivative contracts of $79 million for the same period of 2024.
Previous wording
Operating and Other Expenses. For the first quarter of 2025, operating expenses of $3,810 million were $42 million lower than the $3,852 million incurred during the first quarter of 2024. The following table presents the costs per barrel of oil equivalent (Boe) for the three-month periods ended March 31, 2025 and 2024:
Current wording
Operating and Other Expenses. For the second quarter of 2025, operating expenses of $3,731 million were $164 million lower than the $3,895 million incurred during the second quarter of 2024. The following table presents the costs per barrel of oil equivalent (Boe) for the three-month periods ended June 30, 2025 and 2024:
Previous wording
Lease and well expenses of $401 million for the first quarter of 2025 increased $5 million from $396 million for the same prior year period primarily due to increased operating and maintenance costs in the United States ($14 million) and Trinidad ($5 million) and increased lease and well administrative expenses in the United States ($4 million), partially offset by decreased workover expenditures in the United States ($19 million).
Current wording
Lease and well expenses of $396 million for the second quarter of 2025 increased $6 million from $390 million for the same prior year period primarily due to increased operating and maintenance costs in the United States ($8 million) and increased lease and well administrative expenses ($3 million), partially offset by decreased workover expenditures in the United States ($5 million).
Previous wording
GP&T costs of $440 million for the first quarter of 2025 increased $27 million from $413 million for the same prior year period primarily due to increased GP&T costs related to increased production in the Permian Basin and Utica, as well as increased third-party fees in the Utica, partially offset by a decrease in GP&T costs related to lower third-party fees in the Eagle Ford.
Current wording
GP&T costs of $455 million for the second quarter of 2025 increased $32 million from $423 million for the same prior year period primarily due to increased GP&T costs related to increased production in the Permian Basin and Utica, partially offset by a decrease in GP&T costs in the Eagle Ford.
Previous wording
G&A expenses of $171 million for the first quarter of 2025 increased $9 million from $162 million for the same prior year period primarily due to increased professional services costs and information systems costs.
Current wording
G&A expenses of $186 million for the second quarter of 2025 increased $35 million from $151 million for the same prior year period primarily due to increased professional services and other costs, including Encino acquisition-related costs ($19 million), and employee-related costs ($15 million).
Previous wording
Interest expense, net of $47 million for the first quarter of 2025 increased $14 million compared to the same prior year period primarily due to the issuance in November 2024 of the $1,000 million aggregate principal amount of 5.650% Senior Notes due 2054.
Current wording
Interest expense, net of $51 million for the second quarter of 2025 increased $15 million compared to the same prior year period primarily due to the issuance in November 2024 of the $1,000 million aggregate principal amount of 5.650% Senior Notes due 2054 ($14 million) and financing commitment costs related to the acquisition of Encino ($6.5 million), partially offset by the maturity in April 2025 of the $500 million aggregate principal amount of 3.15% Senior Notes due 2025 ($4 million).
Previous wording
The following table sets forth impairments for the first quarter of 2025 and 2024 (in millions):
Current wording
The following table sets forth impairments for the second quarter of 2025 and 2024 (in millions):
Previous wording
Income taxes of $414 million for the first quarter of 2025 decreased from $511 million for the first quarter of 2024 primarily due to decreased pretax income. The net effective tax rate for the first quarter of 2025 was unchanged from the prior year rate of 22%.
Current wording
Income taxes of $406 million for the second quarter of 2025 decreased from $470 million for the second quarter of 2024 primarily due to decreased pretax income. The net effective tax rate for the second quarter of 2025 increased to 23% from 22% for the second quarter of 2024.
Previous wording
Gathering, processing and marketing revenues less marketing costs for the first quarter of 2025 decreased $40 million as compared to the same period of 2024 primarily due to lower margins on crude oil marketing activities, partially offset by higher margins on natural gas marketing activities.
Current wording
Gathering, processing and marketing revenues less marketing costs for the first six months of 2025 decreased $38 million as compared to the same period of 2024 primarily due to lower margins on crude oil marketing activities, partially offset by higher margins on natural gas marketing activities.
Previous wording
DD&A expenses for the first quarter of 2025 decreased $61 million to $1,013 million from $1,074 million for the same prior year period. DD&A expenses associated with oil and gas properties for the first quarter of 2025 were $72 million lower than the same prior year period. The decrease primarily reflects an adjustment to DD&A recorded in 2024 ($117 million) primarily related to natural gas production used by EOG's domestic gathering systems. In addition, increased production ($49 million), primarily in the United States, also contributed to the variance. DD&A expenses associated with other property, plant and equipment for the first quarter of 2025 were $11 million higher than the same prior year period primarily due to an increase in expenses related to GP&T assets and equipment.
Current wording
DD&A expenses for the first six months of 2025 increased $8 million to $2,066 million from $2,058 million for the same prior year period. DD&A expenses associated with other property, plant and equipment for the first six months of 2025 were $25 million higher than the same prior year period primarily due to an increase in expenses related to GP&T assets and equipment. DD&A expenses associated with oil and gas properties for the first six months of 2025 were $17 million lower than the same prior year period. The decrease primarily reflects an adjustment to DD&A recorded in 2024 ($117 million) related to natural gas production used by EOG's domestic gathering systems, as well as decreased unit rates in the United States ($31 million). This was partially offset by increased production in the United States ($112 million) and in Trinidad ($15 million), as well as increased unit rates in Trinidad ($7 million).
Previous wording
At March 31, 2025, EOG maintained a strong financial and liquidity position, including $6.6 billion of cash and cash equivalents on hand and $1.9 billion of availability under its senior unsecured revolving credit facility.
Current wording
Liquidity Overview. At June 30, 2025, EOG maintained a strong financial and liquidity position, including $5.2 billion of cash and cash equivalents on hand and $1.9 billion of availability under its senior unsecured revolving credit facility (which remained undrawn).
Previous wording
Cash Flow. The primary source of cash for EOG during the three months ended March 31, 2025, were funds generated from operations. The primary uses of cash were funds used in operations; exploration and development expenditures; dividend payments to stockholders; purchases of treasury stock; other property, plant and equipment expenditures; and net cash paid for settlements of financial commodity derivative contracts. During the first three months of 2025, EOG's cash balance decreased $493 million to $6,599 million from $7,092 million at December 31, 2024.
Current wording
The primary source of cash for EOG during the six months ended June 30, 2025, was funds generated from operations. The primary uses of cash were exploration and development expenditures; funds used in operations; dividend payments to stockholders; purchases of treasury stock; repayments of long-term debt and other property, plant and equipment expenditures. During the first six months of 2025, EOG's cash balance decreased $1,876 million to $5,216 million from $7,092 million at December 31, 2024.
Previous wording
Net cash provided by operating activities of $2,289 million for the first three months of 2025 decreased $614 million compared to the same period of 2024 primarily due to an increase in net cash paid for income taxes ($730 million), net cash paid for settlements of financial commodity derivative contracts ($93 million), a decrease in gathering, processing and marketing revenues less marketing costs ($40 million) and an increase in cash operating expenses ($35 million), partially offset by a decrease in net cash used in working capital and other assets and liabilities ($162 million) and an increase in revenues from sales of crude oil and condensate, NGLs and natural gas ($127 million).
Current wording
Cash Flow. Net cash provided by operating activities of $4,321 million for the first six months of 2025 decreased $1,471 million compared to the same period of 2024 primarily due to an increase in net cash paid for income taxes ($853 million), a decrease in revenues from sales of crude oil and condensate, NGLs and natural gas ($275 million), net cash paid for settlements of financial commodity derivative contracts of $62 million compared to net cash received of $134 million for the first six months of 2024, an increase in cash operating expenses ($104 million) and a decrease in gathering, processing and marketing revenue less marketing costs ($38 million).
Previous wording
Net cash used in investing activities of $1,430 million for the first three months of 2025 decreased $167 million compared to the same period of 2024 due to a decrease in additions to other property, plant and equipment ($248 million) and a decrease in additions to oil and gas properties ($104 million), partially offset by a decrease in net cash used in working capital associated with investing activities ($188 million).
Current wording
Net cash used in investing activities of $3,211 million for the first six months of 2025 increased $81 million compared to the same period of 2024 primarily due to a decrease in cash provided by working capital associated with investing activities ($307 million) and an increase in additions to oil and gas properties ($238 million), partially offset by a decrease in additions to other property, plant and equipment ($467 million).
Previous wording
Net cash used in financing activities of $1,352 million for the first three months of 2025 included purchases of treasury stock ($806 million) and dividend payments to stockholders ($538 million). Net cash used in financing activities of $1,292 million for the first three months of 2024 included purchases of treasury stock ($759 million) and dividend payments to stockholders ($525 million).
Current wording
Net cash used in financing activities of $2,987 million for the first six months of 2025 included purchases of treasury stock ($1,408 million), dividend payments to stockholders ($1,066 million) and repayments of long-term debt ($500 million). Net cash used in financing activities of $2,509 million for the first six months of 2024 included purchases of treasury stock ($1,458 million) and dividend payments to stockholders ($1,045 million).
Previous wording
Total Expenditures. For the full-year 2025, EOG's updated budget for exploration and development and other property, plant and equipment expenditures is estimated to range from approximately $5.8 billion to $6.2 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses. The table below sets out components of total expenditures for the three-month periods ended March 31, 2025 and 2024 (in millions):
Current wording
Total Expenditures. For the full-year 2025, EOG's updated budget for exploration and development and other property, plant and equipment expenditures is estimated to range from approximately $6.2 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses. The table below sets out components of total expenditures for the six-month periods ended June 30, 2025 and 2024 (in millions):
Previous wording
(1) Leasehold acquisitions included $9 million and $31 million for the three-month periods ended March 31, 2025 and 2024, respectively, related to non-cash property exchanges.
Current wording
(1) Leasehold acquisitions included $11 million and $65 million for the six-month periods ended June 30, 2025 and 2024, respectively, related to non-cash property exchanges.
Previous wording
(2) Property acquisitions included $20 million for the three-month period ended March 31, 2024, related to non-cash property exchanges.
Current wording
(2) Property acquisitions included $24 million for the six-month period ended June 30, 2024, related to non-cash property exchanges.
Previous wording
(3) Other Property, Plant and Equipment included $131 million related to the acquisition of a gathering system in South Texas for the three-month period ended March 31, 2024.
Current wording
(4) Other Property, Plant and Equipment included $132 million related to the acquisition of a gathering system in South Texas for the six-month period ended June 30, 2024.
Previous wording
Exploration and development expenditures of $1,431 million for the first three months of 2025 were $150 million lower than the same period of 2024 primarily due to decreased exploration and development drilling expenditures in Trinidad ($62 million) and the United States ($47 million), as well as decreased leasehold acquisitions ($37 million). Exploration and development expenditures for the first three months of 2025 of $1,431 million consisted of $1,317 million in development drilling and facilities, $103 million in exploration and $12 million in capitalized interest. Exploration and development expenditures for the first three months of 2024 of $1,581 million consisted of $1,356 million in development drilling and facilities, $194 million in exploration, $21 million in property acquisitions and $10 million in capitalized interest.
Current wording
Exploration and development expenditures of $3,206 million for the first six months of 2025 were $196 million higher than the same period of 2024 primarily due to increased property acquisitions ($243 million), increased dry hole costs ($39 million) and exploration costs in the United Arab Emirates ($23 million), partially offset by decreased exploration and development drilling expenditures in Trinidad ($67 million) and decreased leasehold acquisitions ($61 million). Exploration and development expenditures for the first six months of 2025 of $3,206 million consisted of $2,680 million in development drilling and facilities, $269 million in property acquisitions, $234 million in exploration and $23 million in capitalized interest. Exploration and development expenditures for the first six months of 2024 of $3,010 million consisted of $2,629 million in development drilling and facilities, $335 million in exploration, $26 million in property acquisitions and $20 million in capitalized interest.
Previous wording
The total fair value of EOG's financial commodity and other derivative contracts was reflected on the Condensed Consolidated Balance Sheets at March 31, 2025, as a net liability of $160 million.
Current wording
The total fair value of EOG's financial commodity and other derivative contracts was reflected on the Condensed Consolidated Balance Sheets at June 30, 2025, as a net liability of $29 million.
Previous wording
As discussed in "Operating Revenues and Other," the net cash paid for settlements of financial commodity derivative contracts during the first quarter of 2025 was $38 million.
Current wording
As discussed in "Operating Revenues and Other," the net cash paid for settlements of financial commodity derivative contracts during the second quarter and first six months of 2025 was $24 million and $62 million, respectively.
Previous wording
This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, operating costs and asset sales, statements regarding future commodity prices and statements regarding the plans and objectives of EOG's management for future operations, are forward‐looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "ambition," "initiative," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward‐looking statements. In particular, statements, express or implied, concerning EOG's future financial or operating results and returns or EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters or safety matters, pay and/or increase regular and/or special dividends or repurchase shares are forward‐looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:
Current wording
This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including, among others, statements and projections regarding EOG's future financial position, operations, performance, business strategy, goals, returns and rates of return, budgets, reserves, levels of production, capital expenditures, operating costs and asset sales, statements regarding future commodity prices, statements regarding the plans and objectives of EOG's management for future operations and statements and projections regarding the strategic rationale for, and anticipated benefits of, EOG's acquisition of Encino Acquisition Partners, LLC (Encino) are forward‐looking statements. EOG typically uses words such as "expect," "anticipate," "estimate," "project," "strategy," "intend," "plan," "target," "aims," "ambition," "initiative," "goal," "may," "will," "focused on," "should" and "believe" or the negative of those terms or other variations or comparable terminology to identify its forward‐looking statements. In particular, statements, express or implied, concerning (i) EOG's future financial or operating results and returns, (ii) EOG's ability to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control drilling, completion and operating costs and capital expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, other environmental matters or safety matters, pay and/or increase regular and/or special dividends or repurchase shares or (iii) the successful integration of Encino's assets and operations or the strategic rationale for, or anticipated benefits of, EOG's acquisition of Encino, in each case are forward‐looking statements. Forward-looking statements are not guarantees of performance. Although EOG believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG's forward-looking statements may be affected by known, unknown or currently unforeseen risks, events or circumstances that may be outside EOG's control. Important factors that could cause EOG's actual results to differ materially from the expectations reflected in EOG's forward-looking statements include, among others:
Previous wording
•the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax or other emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial and other derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;
Current wording
•the impact of, and changes in, government policies, laws and regulations, including climate change-related regulations, policies and initiatives (for example, with respect to air emissions); tax laws and regulations (including, but not limited to, carbon tax or other emissions-related legislation); environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water; laws and regulations affecting the leasing of acreage and permitting for oil and gas drilling and the calculation of royalty payments in respect of oil and gas production; laws and regulations imposing additional permitting and disclosure requirements, additional operating restrictions and conditions or restrictions on drilling and completion operations and on the transportation of crude oil, NGLs and natural gas; laws and regulations with respect to financial and other
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
Volume and price statistics for the six-month periods ended June 30, 2025 and 2024 were as follows:
Current report — wording carried from elsewhere
(1) Excludes the impact of financial commodity and other derivative instruments (see Note 10 to the Condensed Consolidated Financial Statements).
Current report — wording carried from elsewhere
Natural gas revenues for the first six months of 2025 increased $552 million, or 81%, to $1,237 million from $685 million for the same period of 2024. The increase was due to a higher composite average price ($449 million) and an increase in natural gas deliveries ($103 million). Natural gas deliveries for the first six months of 2025 increased 290 MMcfd, or 16%, compared to the same period of 2024 due primarily to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in Dorado and Trinidad. EOG's composite natural gas price for the first six months of 2025 increased 57% to $3.17 per Mcf compared to $2.02 per Mcf for the same period of 2024.
Current report — wording carried from elsewhere
Operating and Other Expenses. For the first six months of 2025, operating expenses of $7,541 million were $206 million lower than the $7,747 million incurred during the same period of 2024. The following table presents the costs per Boe for the six-month periods ended June 30, 2025 and 2024:
Current report — wording carried from elsewhere
(1)Total excludes exploration costs, dry hole costs, impairments, marketing costs and taxes other than income.
Current report — wording carried from elsewhere
The primary factors impacting the cost components of per-unit rates of lease and well, GP&T, DD&A, G&A, and interest expense, net for the six months ended June 30, 2025, compared to the same period of 2024 are set forth below. See "Operating Revenues" above for a discussion of volumes.
Current report — wording carried from elsewhere
The following table sets forth impairments for the six-month periods ended June 30, 2025 and 2024 (in millions):
Current report — wording carried from elsewhere
-39- derivatives and hedging activities; and laws and regulations with respect to the import and export of crude oil, natural gas and related commodities;