EOG Resources stock lifts dividend after record Q3 output

EOG Resources reported record production across oil, natural gas liquids and natural gas for the third quarter on November 5, according to the company's third-quarter earnings release. The Houston-based producer also raised its regular dividend by 8 percent as stronger price realizations and operating execution lifted cash generation.

EOG recorded adjusted net income of 2.54 billion US dollars, or 4.87 US dollars per share, compared with 1.47 billion US dollars, or 2.71 US dollars per share, in the prior-year quarter. GAAP net income reached 2.78 billion US dollars, or 5.33 US dollars per share, versus 1.47 billion US dollars, or 2.70 US dollars per share, a year earlier. Revenue increased to 8.55 billion US dollars from 5.85 billion US dollars.

Production exceeded guidance midpoints

Total crude oil equivalent production rose to 1.433 million barrels per day from 1.301 million barrels per day in the third quarter of 2025. Crude oil and condensate output reached 550.4 thousand barrels per day, while natural gas liquids production climbed to 357.1 thousand barrels per day. Natural gas volumes totaled 3.153 billion cubic feet per day. Each production stream exceeded EOG's guidance midpoint for the quarter.

Operating performance also supported the result. GAAP cash operating costs were 10.49 US dollars per barrel of oil equivalent, below the 10.57 US dollar guidance midpoint, while depreciation, depletion and amortization came in at 9.80 US dollars per barrel of oil equivalent against a 10.00 US dollar midpoint. Capital expenditures on a non-GAAP basis were 1.597 billion US dollars, below the 1.650 billion US dollar midpoint.

Operating cash flow totaled 3.813 billion US dollars and free cash flow reached 2.176 billion US dollars. EOG repurchased 7.0 million shares for 1.0 billion US dollars during the quarter and paid 544 million US dollars in regular dividends. The company had 10.6 billion US dollars remaining under its current repurchase authorization at September 30.

Dividend and outlook remain in focus

The board declared a regular quarterly dividend of 1.10 US dollars per share, payable January 29, 2027, to shareholders of record on January 15. The indicated annual rate is 4.40 US dollars per share. Management said the increase reflects confidence in the business and the ability to support a higher payout through commodity cycles.

EOG kept its full-year 2026 capital expenditure guidance at 6.3 billion to 6.7 billion US dollars, with a midpoint of 6.5 billion US dollars. Full-year total crude oil equivalent production is guided to 1.3932 million to 1.4250 million barrels per day. The company also signed a long-term gas sales agreement linked to JKM pricing, which is intended to lift premium-priced LNG feedgas exposure above 1 billion cubic feet per day by 2030, and approved an expansion of its Janus gas processing plant in the Delaware Basin.

EOG Resources stock traded at 136.85 euros on Lang & Schwarz at 13:52 CET on Wednesday, November 11.

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