EOG Resources Reports Second Quarter 2025 Results and Updates 2025 Guidance

Second Quarter Highlights

• Earned adjusted net income of $1.3 billion, or $2.32 per share
• Generated $1.0 billion of free cash flow
• Paid $528 million in regular dividends and repurchased $600 million of shares
• Oil, NGLs and natural gas production above guidance midpoints
• Capital expenditures and per-unit operating costs better than guidance midpoints
• Completed $3.5 billion debt offering to fund the acquisition of Encino Acquisition Partners (Encino)

2025 Guidance Update

• Updated 2025 guidance after close of Encino acquisition

Volumes and Capital Expenditures

From Ezra Yacob, Chairman and Chief Executive Officer
"EOG delivered excellent second quarter results, with oil, gas, and NGL volumes exceeding the midpoints of our guidance. At the same time, we maintained our focus on cost discipline, with capital expenditures, cash operating costs, and DD&A all coming in below guidance. Strong operational execution across our multi-basin portfolio continues to be the foundation of our success.

"Our operational excellence translated into strong financial performance. EOG generated $973 million in free cash flow during the quarter. We continued to deliver on our cash return commitment by returning $1.1 billion to shareholders, including $600 million of share repurchases. The regular dividend remains our top cash return priority. The 5% increase in our regular quarterly dividend, announced in tandem with the Encino acquisition, reflects both our continued confidence in our business and the positive impact we expect from the transaction.

"With the close of the Encino acquisition, the Utica is now positioned as a foundational asset for EOG. We have updated our full year 2025 guidance, which reflects both capital discipline and our high conviction in the quality and potential of this asset. Our focus is on optimizing the development of the play as we integrate Encino with our operations.

"EOG has never been better positioned to create long-term value for shareholders. The expansion of our portfolio through the Encino acquisition, our entry into Bahrain and the UAE, as well as strong exploration progress across our domestic portfolio and in Trinidad, has significantly enhanced our industry-leading asset base. We continue to improve our resource base while also maintaining one of the strongest balance sheets in the industry. Our multi- basin portfolio, operational excellence, and financial strength provide us unmatched flexibility to deliver high returns and significant cash return to shareholders through commodity price cycles."

Previously Announced Regular Dividend and Second Quarter Share Repurchases
On May 30, 2025, the Board of Directors declared a dividend of $1.02 per share on EOG's common stock. The dividend will be payable on October 31, 2025, to shareholders of record as of October 17, 2025. The indicated annual rate is $4.08 per share.

During the second quarter, the company repurchased 5.4 million shares for $600 million under its share repurchase authorization. EOG has $4.5 billion remaining on its current share buyback authorization.

2025 Guidance

2025 Guidance Update

Full year guidance has been updated after the close of the Encino acquisition. The revised outlook also incorporates strong year-to-date operational performance and the impact of recently enacted U.S. tax legislation.

Total capital expenditures for 2025 are now expected to range from $6.2 to $6.4 billion delivering full year average oil production of 521 MBod and average total production of 1,224 MBoed.

Second Quarter 2025 Financial Performance

Prices

• Crude oil, NGL and natural gas prices decreased in 2Q compared with 1Q

Volumes

• Oil production of 504,200 Bopd was above the midpoint of the guidance range and up from 1Q
• NGL production was above the midpoint of the guidance range and up 7% from 1Q
• Natural gas production was above the midpoint of the guidance range and up 7% from 1Q
• Total company equivalent production was above the midpoint of the guidance range and increased 4% from 1Q

Per-Unit Costs

• LOE, GP&T, DD&A and non-GAAP G&A costs decreased in 2Q compared to 1Q. Encino acquisition-related costs increased GAAP G&A costs in 2Q compared to 1Q

Hedges

• Mark-to-market hedge gains increased GAAP earnings per share in 2Q compared with 1Q
• Decreased cash paid to settle hedges increased adjusted non-GAAP earnings per share in 2Q compared with 1Q

Free Cash Flow

• Adjusted cash flow from operations was $2.5 billion
• Incurred $1.5 billion of capital expenditures
• This resulted in $1.0 billion of free cash flow

Cash Return and Working Capital

• Paid $528 million in regular dividends
• Repurchased $600 million of stock
• Repaid $500 million of Senior Notes upon maturity
• Acquired Eagle Ford bolt-on acreage for approximately $270 million

Second Quarter 2025 Operating Performance

Lease and Well

• QoQ: Decreased primarily due to lower maintenance costs and water handling expenses
• Guidance Midpoint: Lower primarily due to lower maintenance costs, water handling expenses and workover expenses

General and Administrative

• QoQ: Decreased primarily due to lower professional fees
• Guidance Midpoint: Lower primarily due to lower professional fees

Gathering, Processing and Transportation Costs

• QoQ: Decreased primarily due to lower natural gas gathering and processing fees and operating expenses
• Guidance Midpoint: Lower primarily due to lower natural gas gathering and processing fees and compression fuel-related costs

Depreciation, Depletion and Amortization

• QoQ: Decreased primarily due to well mix
• Guidance Midpoint: Lower primarily due to well mix

Second Quarter 2025 Results Webcast
Friday, August 8, 2025, 9:00 a.m. Central time (10:00 a.m. Eastern time)
Webcast will be available on EOG's website for one year.
http://investors.eogresources.com/Investors

About EOG
EOG Resources, Inc. (NYSE: EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States with proved reserves in the United States and Trinidad. To learn more visit www.eogresources.com.

Investor Contacts
Pearce Hammond 713-571-4684
Neel Panchal 713-571-4884
Shelby O'Connor 713-571-4560

Media Contact
Kimberly Ehmer 713-571-4676

This press release and any accompanying disclosures may include 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:

• the timing, magnitude and duration of changes in prices for, supplies of, and demand for, crude oil and condensate, natural gas liquids (NGLs), natural gas and related commodities;
• the extent to which EOG is successful in its efforts to acquire or discover additional reserves;
• the extent to which EOG is successful in its efforts to (i) economically develop its acreage in, (ii) produce reserves and achieve anticipated production levels and rates of return from, (iii) decrease or otherwise control its drilling, completion and operating costs and capital expenditures related to, and (iv) maximize reserve recoveries from, its existing and future crude oil and natural gas exploration and development projects and associated potential and existing drilling locations;
• the success of EOG's cost-mitigation initiatives and actions in offsetting the impact of any inflationary or other pressures on EOG's operating costs and capital expenditures;
• the extent to which EOG is successful in its efforts to market its production of crude oil and condensate, NGLs and natural gas;
• security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, physical breaches of our facilities and other infrastructure or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business, and enhanced regulatory focus on the prevention of, and disclosure requirements relating to, cyber incidents;
• the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment;
• the availability, cost, terms and timing of issuance or execution of mineral licenses, concessions and leases and governmental and other permits and rights-of-way, and EOG's ability to retain mineral licenses, concessions and leases;
• 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;
• the impact of climate change-related legislation, policies and initiatives; climate change-related political, social and shareholder activism; and physical, transition and reputational risks and other potential developments related to climate change;
• the extent to which EOG is able to successfully and economically develop, implement and carry out its emissions and other environmental or safety-related initiatives and achieve its related targets, goals, ambitions and initiatives;
• 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);
• EOG's ability to effectively integrate acquired crude oil and natural gas properties into its operations, identify and resolve existing and potential issues with respect to such properties and accurately estimate reserves, production, drilling, completion and operating costs and capital expenditures with respect to such properties;
• the extent to which EOG's third-party-operated crude oil and natural gas properties are operated successfully, economically and in compliance with applicable laws and regulations;
• competition in the oil and gas exploration and production industry for the acquisition of licenses, concessions, leases and properties;
• the availability and cost of, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services;
• the accuracy of reserve estimates, which by their nature involve the exercise of professional judgment and may therefore be imprecise;
• weather and natural disasters, including its impact on crude oil and natural gas demand, and related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities;
• the ability of EOG's customers and other contractual counterparties to satisfy their obligations to EOG and, related thereto, to access the credit and capital markets to obtain financing needed to satisfy their obligations to EOG;
• EOG's ability to access the commercial paper market and other credit and capital markets to obtain financing on terms it deems acceptable, if at all, and to otherwise satisfy its capital expenditure requirements;
• the extent to which EOG is successful in its completion of planned asset dispositions;
• the extent and effect of any hedging activities engaged in by EOG;
• the timing and extent of changes in foreign currency exchange rates, interest rates, inflation rates, global and domestic financial market conditions and global and domestic general economic conditions;
• the economic and financial impact of epidemics, pandemics or other public health issues;
• geopolitical factors and political conditions and developments around the world (such as the imposition of tariffs or trade or other economic sanctions, political instability and armed conflicts), including in the areas in which EOG operates;
• the extent to which EOG incurs uninsured losses and liabilities or losses and liabilities in excess of its insurance coverage; and
• the other factors described under ITEM 1A, Risk Factors of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and any updates to those factors set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

In light of these risks, uncertainties and assumptions, the events anticipated by EOG's forward-looking statements may not occur, and, if any of such events do, we may not have anticipated the timing of their occurrence or the duration or extent of their impact on our actual results. Accordingly, you should not place any undue reliance on any of EOG's forward-looking statements. EOG's forward-looking statements speak only as of the date made, and EOG undertakes no obligation, other than as required by applicable law, to update or revise its forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

Historical Non-GAAP Financial Measures:
Reconciliation schedules and definitions for the historical non-GAAP financial measures included or referenced herein as well as related discussion can be found on the EOG website at www.eogresources.com.

Cautionary Notice Regarding Forward-Looking Non-GAAP Financial Measures:
In addition, this press release and any accompanying disclosures may include or reference certain forward-looking, non-GAAP financial measures, such as free cash flow, adjusted cash flow from operations and return on capital employed, and certain related estimates regarding future performance, commodity prices and operating and financial results. Because we provide these measures on a forward-looking basis, we cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future changes in working capital and future impairments. Accordingly, we are unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures without unreasonable efforts. The unavailable information could have a significant impact on our ultimate results. However, management believes these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing EOG's forecasted financial performance to the forecasted financial performance of other companies in the industry. Any such forward-looking measures and estimates are intended to be illustrative only and are not intended to reflect the results that EOG will necessarily achieve for the period(s) presented; EOG's actual results may differ materially from such measures and estimates.

Oil and Gas Reserves:
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose not only "proved" reserves (i.e., quantities of oil and gas that are estimated to be recoverable with a high degree of confidence), but also "probable" reserves (i.e., quantities of oil and gas that are as likely as not to be recovered) as well as "possible" reserves (i.e., additional quantities of oil and gas that might be recovered, but with a lower probability than probable reserves). Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve or resource estimates provided in this press release or any accompanying disclosures that are not specifically designated as being estimates of proved reserves may include "potential" reserves, "resource potential" and/or other estimated reserves or estimated resources not necessarily calculated in accordance with, or contemplated by, the SEC's latest reserve reporting guidelines. Investors are urged to consider closely the disclosure in EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (and any updates to such disclosure set forth in EOG's subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K), available from EOG at P.O. Box 4362, Houston, Texas 77210-4362 (Attn: Investor Relations). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.