EOG Resources Reports Decrease in Revenue and Net Income for Q2 and First Half of 2025

EOG Resources, Inc. reported a decrease in financial performance for the second quarter and first half of 2025, as reflected in its latest 10-Q filing. For the three months ended June 30, 2025, the company generated total operating revenues of $5.478 billion, a decline of 9% from $6.025 billion in the same period of 2024. Net income for the quarter was $1.345 billion, down from $1.690 billion year-over-year, resulting in a diluted earnings per share of $2.46 compared to $2.95 in the prior year. For the first six months of 2025, revenues totaled $11.147 billion, an 8% decrease from $12.148 billion, with net income at $2.808 billion, down from $3.479 billion.

The decline in revenue was primarily attributed to lower crude oil and condensate prices, which fell 22% to an average of $64.82 per barrel, alongside a decrease in total revenues from crude oil and condensate sales, which dropped to $2.974 billion from $3.692 billion. However, natural gas revenues saw a significant increase of 98%, reaching $600 million, driven by a 66% rise in average natural gas prices to $2.96 per Mcf and a 19% increase in natural gas deliveries. The company also reported net gains of $107 million on mark-to-market financial commodity contracts, a notable improvement from the $47 million loss recorded in the previous year.

EOG's operational metrics showed a mixed performance. Crude oil and condensate production increased by 3% to 504.2 MBbld, while natural gas production rose by 19% to 2,229 MMcfd. The company continued to focus on its major producing areas, particularly in the Permian Basin and Utica, and reported a total crude oil equivalent production of 1,134.1 MBoed for the quarter. The company’s total assets decreased to $46.284 billion as of June 30, 2025, from $47.186 billion at the end of 2024, while total liabilities also saw a reduction.

Strategically, EOG has been active in acquisitions, having completed the purchase of proved properties adjacent to its core acreage in the Eagle Ford play for $269 million in April 2025. Additionally, the company announced the completion of its acquisition of Encino Acquisition Partners, LLC on August 1, 2025, for approximately $4.484 billion, which is expected to enhance EOG's asset base significantly. The company plans to continue focusing on its capital expenditures, estimating a range of $6.2 billion to $6.4 billion for 2025, with a substantial portion allocated to exploration and development in high-return areas.

Looking ahead, EOG anticipates a 6% increase in full-year oil production and a 15% increase in total crude oil, NGLs, and natural gas production for 2025, including contributions from the Encino assets. The company remains committed to maintaining a strong balance sheet, with a debt-to-total capitalization ratio of 13% as of June 30, 2025. EOG's management continues to emphasize operational efficiencies and cost control measures to navigate the volatile commodity price environment while pursuing growth opportunities through strategic acquisitions and investments.