EOG Resources, Inc. (NYSE:EOG) has reported a significant increase in its third-quarter 2026 adjusted earnings, reaching $4.87 per share. This marks a 79.7% rise from the $2.71 per share recorded in the same period last year. The earnings exceeded the Zacks Consensus Estimate of $4.45 by 9.4%1.
The company’s total revenues for the quarter climbed 46.2% year-over-year, totaling $8.55 billion. This figure also surpassed the consensus estimate of $7.54 billion by 13.4%2. The impressive results were driven by higher commodity prices and record production levels. EOG’s total oil-equivalent output increased by 10.1% compared to the previous year, reaching 1,433.1 thousand barrels of oil equivalent per day (MBoe/d), which was above the company’s guidance midpoint.
Production Achievements
During the third quarter, EOG Resources set new records in production volumes. Crude oil and condensate production averaged 550.4 thousand barrels per day (MBbl/d), up from 534.5 MBbl/d in the prior-year quarter and above EOG’s guidance midpoint of 548.5 MBbl/d. Additionally, natural gas liquids production increased by 15.5% year-over-year to 357.1 MBbl/d, surpassing the guidance midpoint of 347 MBbl/d. Natural gas production also saw a rise, reaching 3,153 million cubic feet per day (MMcf/d), exceeding the company’s target of 3,100 MMcf/d3.
Revenue Growth from Higher Sales
EOG’s revenues from crude oil and condensate rose to $4.39 billion, compared to $3.24 billion in the previous year. Revenues from natural gas liquids increased to $858 million from $604 million, while natural gas revenues grew to $1.09 billion from $707 million. The average price of West Texas Intermediate crude oil was $85.68 per barrel, a significant increase from $64.95 in the third quarter of 2025. However, the Henry Hub natural gas benchmark saw a decline to $2.95 per Mcf from $3.07, highlighting the importance of production growth and favorable pricing differentials for the gas segment4.
Operating Expenses and Income
EOG’s total operating expenses rose to $4.96 billion, up from $4.01 billion in the same quarter last year. Lease and well expenses increased to $493 million from $431 million, and gathering, processing, and transportation costs rose to $693 million from $587 million. Marketing costs also saw an increase, reaching $1.78 billion from $1.13 billion. Depreciation, depletion, and amortization expenses grew to $1.29 billion from $1.17 billion. Despite these increases, cash operating costs per barrel of oil equivalent (Boe) were $10.49, below the management’s guidance midpoint of $10.70. Operating income improved significantly to $3.59 billion from $1.84 billion in the prior-year quarter, reflecting stronger revenue growth relative to expenses.
Cash Flow and Financial Position
During the quarter, EOG generated $3.81 billion in net cash from operating activities and $2.18 billion in free cash flow. Non-GAAP capital expenditures amounted to $1.60 billion, which was below the company’s guidance midpoint of $1.65 billion. As of September 30, 2026, EOG reported cash and cash equivalents totaling $5.75 billion, up from $3.40 billion at the end of 2025. The company’s long-term debt stood at $7.89 billion, with an additional $28 million classified as the current portion. Net debt was reported at $2.18 billion.
Future Outlook and Shareholder Returns
Looking ahead to the fourth quarter of 2026, EOG forecasts total oil-equivalent production between 1,385.5 and 1,432.0 MBoe/d. The company expects crude oil and condensate output to range from 547.7 to 553.1 MBbl/d, natural gas liquids production from 340 to 360 MBbl/d, and natural gas volumes from 2,987 to 3,113 MMcf/d. For the full year, EOG projects total production between 1,393.2 and 1,425.0 MBoe/d, with capital spending estimated between $6.3 billion and $6.7 billion. Fourth-quarter capital spending is expected to range from $1.63 billion to $1.73 billion.
EOG has also approved the expansion of its Janus gas processing plant in the Delaware Basin, which is expected to add 300 MMcf/d of processing capacity. The project is scheduled for completion in the second half of 2028. In terms of shareholder returns, EOG’s board has increased the regular quarterly dividend by 8% to $1.10 per share, payable on January 29, 2027, to shareholders of record as of January 15. This new dividend translates to an indicated annual payout of $4.40 per share. During the third quarter, EOG repurchased 7 million shares for $1 billion and paid $544 million in regular dividends. The company also entered into a new 10-year, JKM-linked natural gas sales agreement for 140,000 MMBtu per day, set to begin by 2030, enhancing its access to premium-priced gas markets.
Footnotes:
- EOG Resources’ Q3 2026 adjusted earnings per share significantly exceeded expectations. Source.
- The company’s total revenues for the third quarter surpassed consensus estimates by a substantial margin. Source.
- EOG Resources achieved record production volumes in crude oil, natural gas liquids, and natural gas. Source.
- Revenue growth was supported by higher sales in crude oil, natural gas liquids, and natural gas. Source.
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