EOG Resources Reports Decrease in Revenue and Net Income for Q1 2025

EOG Resources, Inc. reported a decrease in financial performance for the first quarter of 2025, with total operating revenues falling to $5.669 billion, a 7% decline from $6.123 billion in the same period of 2024. The company's net income also decreased to $1.463 billion, down from $1.789 billion year-over-year. This resulted in a diluted earnings per share of $2.65, compared to $3.10 in the prior year. The decline in revenues was attributed to lower prices for crude oil and condensate, despite a slight increase in production volumes.

In terms of operational metrics, EOG's crude oil and condensate production rose to 502.1 thousand barrels per day (MBbld), up from 487.4 MBbld in the previous year. Natural gas production also increased, with total volumes reaching 2,080 million cubic feet per day (MMcfd), compared to 1,858 MMcfd in the first quarter of 2024. However, the average price for crude oil decreased to $72.87 per barrel from $78.45, while natural gas prices increased significantly to $3.41 per thousand cubic feet (Mcf) from $2.26.

Strategically, EOG made a notable acquisition during the quarter, agreeing to purchase properties adjacent to its core acreage in the Eagle Ford play for approximately $275 million, which closed in April 2025. This acquisition aligns with EOG's strategy to enhance its drilling inventory and operational efficiency. The company also continued to focus on improving its drilling and completion efficiencies, which are expected to mitigate inflationary pressures on operating costs.

EOG's total capital expenditures for the first quarter of 2025 were approximately $1.546 billion, a decrease from $1.952 billion in the same period of 2024. The company plans to allocate between $5.8 billion and $6.2 billion for total capital expenditures in 2025, focusing on high-return projects primarily in the United States. EOG's strong financial position is underscored by $6.6 billion in cash and cash equivalents and a debt-to-total capitalization ratio of 14%, indicating a solid balance sheet as it navigates market fluctuations.

Looking ahead, EOG anticipates modest production growth for the full year 2025, driven by ongoing operational improvements and strategic investments. The company remains committed to returning a minimum of 70% of annual net cash provided by operating activities to shareholders through dividends and share repurchases, reinforcing its focus on shareholder value amidst a volatile commodity price environment.