EOG Resources, Inc. (EOG) posted adjusted earnings per share of $2.87 for the fourth quarter of 2025, surpassing analyst expectations, as rising crude oil prices and disciplined capital allocation boosted profitability. The company reported $2.6 billion in operating cash flow and maintained a robust 60% free cash flow conversion rate.
- EOG reported adjusted EPS of $2.87 for Q4 2025, beating expectations of $2.75
- Average crude oil price was $82.30 per barrel (CL=F) in Q4
- Operating cash flow reached $2.6 billion with 60% free cash flow conversion
- Capital expenditures held at $1.8 billion for 2025, in line with guidance
- EOG raised 2026 production guidance to 1.78–1.82 million BOE/day
- Share repurchases totaled $300 million in Q4, with $1.1 billion returned to shareholders
EOG Resources, Inc. delivered a stronger-than-expected quarterly performance, reporting adjusted earnings per share of $2.87 for Q4 2025, up from $2.41 a year earlier and exceeding the consensus estimate of $2.75. The results were driven by a 12% increase in average crude oil prices, which averaged $82.30 per barrel during the quarter, as measured by the CL=F contract. Natural gas production declined slightly year-over-year, but oil output rose 7% due to higher drilling efficiency and the ramp-up of new wells in the Permian Basin. The company generated $2.6 billion in operating cash flow during the quarter, reflecting a 60% free cash flow conversion rate—a key indicator of financial discipline. EOG returned $1.1 billion to shareholders through dividends and share repurchases, including $300 million in buybacks. Capital expenditures were held steady at $1.8 billion, aligned with the full-year 2025 budget and emphasizing long-term sustainability over aggressive growth. The stock, currently trading under ticker EOG, saw a 2.4% intraday surge following the report, outperforming the XLE energy sector ETF, which rose 1.1%. Analysts noted that EOG’s consistent execution and strong balance sheet position it favorably in a volatile commodity landscape. The company raised its full-year 2026 production guidance to a range of 1.78 million to 1.82 million barrels of oil equivalent per day, up from 1.72 million in 2025.