On this page of StockholderLetter.com we present the latest annual shareholder letter from EOG RESOURCES INC — ticker symbol EOG. Reading current and past EOG letters to shareholders can bring important insights into the investment thesis.
a differentiated portfolio 25 20 or ep lR a nu An t
2025 OPERATIONS Production (MMBoe) Worldwide Trinidad & Tobago Williston Basin Rocky Mountain Area United States Year-End Net Proved Reserves (MMBoe) 450 5,514 15 43 435 5,471 Powder River Basin Utica Play Columbus Denver United States Oklahoma City Delaware Basin Fort Worth Midland San Antonio Houston Dorado Eagle Ford Offices Corpus Christi Headquarters Areas of Operations Bahrain UAE Arabian Gulf Manama Trinidad & Tobago Arabian Gulf Port of Spain Abu Dhabi Atlantic Ocean
2025: A YEAR DEFINED BY A DIFFERENTIATED PORTFOLIO Dear Shareholder, 2025 was a remarkable year for EOG. In addition to exceptional execution of our capital and operating plan during a dynamic market, we expanded our portfolio s reach further, both domestically and internationally, with strategic investments in acquisitions, infrastructure, and exploration, strengthening our foundation for the future. Our operational and financial performance during 2025 is a testament to the power of EOG s differentiated multi-basin portfolio, underpinned by our pristine balance sheet, to consistently perform through a volatile year in the oil and gas market. Strong execution of our disciplined capital plan across both our foundational and emerging plays enabled us to return 100% of free cash flow to shareholders. EOG s continued commitment to operational excellence drove efficiency gains and innovation that reduced costs during the year improvements that will compound over time and create significant long-term value. We also continued to demonstrate our commitment to sustainability, setting new emission targets after achieving our prior targets ahead of schedule. Above all, the success we delivered in 2025 reflects the dedication of our employees and the strength of EOG s unique culture. A Differentiated Portfolio: Expanding our Reach While we entered the year already well positioned with strong product, geographic, and pricing diversity, our peer-leading financial strength enabled transformational investments that strengthened the depth, duration, and resilience of our asset base. During 2025, we: Completed the Encino acquisition which combined large, premier acreage positions, transforming EOG into a leading Utica operator and creating an additional foundational play alongside our Delaware Basin, Eagle Ford, and Dorado assets Acquired 30,000 net acres in the Eagle Ford, the largest remaining undeveloped core acreage tract, adding potential to extend laterals, utilize existing infrastructure, boost returns, and lower nding costs Commissioned the Janus gas processing plant in the Delaware Basin expanding access to multiple premium Gulf Coast markets Commenced construction of the Coconut offshore platform in Trinidad to support our highreturn shallow offshore gas development program Achieved exploration success in Trinidad with the Beryl shallow water oil discovery Formed a joint venture with Bapco Energies to explore and develop an onshore unconventional tight gas prospect in Bahrain Received an onshore concession in the UAE to explore and appraise an unconventional oil exploration prospect in coordination with ADNOC
EOG now holds a distinctive position in the upstream sector: access to a deep inventory of growth opportunities spanning North American liquids, North American natural gas, and international conventional and unconventional plays. Capital Discipline Drives Shareholder Returns EOG s disciplined capital allocation framework continues to deliver strong financial performance, generating peer-leading returns on capital employed and robust free cash flow to support shareholder returns: in 2025 we earned $5.5 billion1 of adjusted net income and achieved a 19%1 return on capital employed. Free cash flow totaled $4.7 billion,1,2 enabling $2.2 billion of regular dividends and $2.5 billion of share repurchases, resulting in the return of 100% of free cash flow to shareholders. 2025 represents just one year of exceptional cash return to shareholders; however, EOG s financial performance driving those returns is best viewed through a longer-term lens. Our regular dividend increase of 8% last year extended an exceptional track record of consistency and growth. EOG has never cut or suspended the dividend in 28 years, reflecting the durability of our business model and commitment to shareholder returns across commodity cycles. Powering our dividend growth is EOG s ability to consistently generate free cash flow. We have produced free cash flow every year since 2016 a decade of sustained performance through varying market environments. Over the past three years, we have generated $15 billion1,2 in free cash flow and returned $14 billion to shareholders, while delivering an average return on capital employed of 24%.1 These strong cash returns helped drive 9% compound annual dividend growth and enabled a 10% cumulative reduction in the company s share count over the same period. Disciplined capital allocation, combined with our multi-basin portfolio, continues to expand free cash flow potential over both the short and long term. With a strong balance sheet, low-cost structure, and the flexibility to allocate capital across multiple high-return opportunities, EOG is well positioned to navigate commodity cycles. Our financial resilience is a core differentiator, enabling the company to deliver consistent, competitive shareholder returns in both stable and volatile market environments. Consistent Operational Excellence Compounds Over Time Operational excellence at EOG is grounded in our superior in-house technical expertise, proprietary information technology, and self-sourced materials, which together support strong well performance and disciplined cost control across the entire drilling, completions, and production lifecycle. In 2025, this integrated approach delivered meaningful operational and financial results. During the year, EOG: Achieved our $150 million synergy target for the Encino acquisition ahead of our original one-year timeline through well cost reductions and operational efficiencies Expanded the use of 3+ mile laterals throughout our foundational plays and drilled the longest lateral in Texas history exceeding 24,000 feet in the Eagle Ford Extended the benefits from longer laterals through our internal drilling motor program increasing productive time on surface and downhole, reducing surface footprint, and improving capital efficiency Deployed high frequency sensors during completions to reduce downtime and enhance fracture efficiency Leveraged proprietary generative AI tools to streamline collaboration, automate data capture, and provide real-time operational insights Optimized base production and runtime using EOG s proprietary production optimizer program and machine learning capabilities Operational achievements in 2025 enabled EOG to beat our total cash operating costs target and reduce average well costs by 7%. These sustainable cost reductions, driven by efficiency gains and innovation, compound over time, generating significant cumulative savings and enhancing long-term shareholder value throughout the development lifecycle. Sustainability at EOG is A Measurable Commitment Over the past five years we have made meaningful progress in reducing our emissions intensity and see continued opportunity to build on that momentum. After achieving our prior emissions targets ahead of schedule, we established new emissions targets in 2025 to further advance our performance: Reduce GHG emissions intensity rate3,4 by 25% by 2030, relative to 2019 levels Maintain near-zero methane emissions4,5 through 2030 with an intensity of 0.2% or less
EOG now holds a distinctive position in the upstream sector: access to a deep inventory of growth opportunities spanning North American liquids, North American natural gas, and international conventional and unconventional plays. These updated targets demonstrate EOG s commitment to strong environmental performance, with a continued focus on reducing our emissions intensity through innovation and technology. Our People and our Culture are Our Number One Competitive Advantage EOG s differentiated performance begins with our people and our culture. We are a decentralized organization, empowering collaborative, multi-disciplinary teams at the asset level to innovate and make real-time decisions in the field. Consistent and outstanding execution is what converts operational strength into shareholder value. I am deeply grateful for the exceptional dedication of the entire EOG team and their contribution to our performance in 2025. Positioned for 2026 and Beyond 2025 has been a transformative year and laid a foundation for EOG s success in 2026. 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. Today s dynamic market environment is exactly what EOG is built to excel in. Our multi-basin portfolio, proprietary technology, and self-sourced materials, backed by our rigorous investment standards and pristine balance sheet, uniquely position us as a low-cost, highly efficient operator with diverse product, geographic, and pricing exposure. I am confident EOG s differentiated portfolio will continue to drive both near-term performance and long-term value for shareholders. Sincerely, Ezra Y. Yacob Chairman and Chief Executive Officer February 24, 2026 See accompanying schedules beginning on page R-1 for reconciliations and definitions of non-GAAP and other measures. Return on capital employed calculated using non-GAAP adjusted net income. 1 2 Cash flow from operations before changes in working capital and certain acquisition-related costs less capital expenditures. 3 Metric tons of gross operated GHG emissions (Scope 1), on a CO2e basis, per Mboe of total gross operated U.S. onshore and Trinidad production. Includes Scope 1 emissions (i) reported to the EPA pursuant to the EPA Greenhouse Gas Reporting Program (GHGRP) and emissions that are subject to the EPA GHGRP but are below the basin reporting threshold and would otherwise go unreported calculated using the GHGRP methodology as adopted in 2024 and (ii) from our Trinidad operations calculated using the GHGRP methodology as adopted in 2024. 4 5 Based on methane emissions percentage calculated as thousand cubic feet (Mcf) of gross operated methane emissions (Scope 1) per Mcf of total gross operated U.S. onshore and Trinidad natural gas production.
 • shareholder letter icon 3/27/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/13/2023 EOG Stockholder Letter
 • stockholder letter icon 3/28/2024 EOG Stockholder Letter
 • stockholder letter icon 3/28/2025 EOG Stockholder Letter
 • stockholder letter icon More "Oil & Gas Exploration & Production" Category Stockholder Letters
 • Benford's Law Stocks icon EOG Benford's Law Stock Score = 84


EOG Shareholder/Stockholder Letter Transcript:

a differentiated portfolio
25
20
or
ep
lR
a
nu
An
t

2025 OPERATIONS
Production
(MMBoe)
Worldwide
Trinidad & Tobago
Williston
Basin
Rocky Mountain Area
United States
Year-End Net
Proved Reserves
(MMBoe)
450
5,514
15
43
435
5,471
Powder River
Basin
Utica Play
Columbus
Denver
United States
Oklahoma City
Delaware Basin
Fort Worth
Midland
San Antonio
Houston
Dorado
Eagle Ford
Offices
Corpus Christi
Headquarters
Areas of Operations
Bahrain
UAE
Arabian
Gulf
Manama
Trinidad & Tobago
Arabian
Gulf
Port of Spain
Abu Dhabi
Atlantic
Ocean

2025: A YEAR DEFINED BY
A DIFFERENTIATED PORTFOLIO
Dear Shareholder,
2025 was a remarkable year for EOG.
In addition to exceptional execution of our capital and operating plan during a dynamic market,
we expanded our portfolio   s reach further, both domestically and internationally, with strategic
investments in acquisitions, infrastructure, and exploration, strengthening our foundation for the future.
Our operational and financial performance during 2025 is a testament to the power of EOG   s
differentiated multi-basin portfolio, underpinned by our pristine balance sheet, to consistently
perform through a volatile year in the oil and gas market. Strong execution of our disciplined
capital plan across both our foundational and emerging plays enabled us to return 100% of
free cash flow to shareholders. EOG   s continued commitment to operational excellence drove
efficiency gains and innovation that reduced costs during the year     improvements that will
compound over time and create significant long-term value. We also continued to demonstrate
our commitment to sustainability, setting new emission targets after achieving our prior targets
ahead of schedule. Above all, the success we delivered in 2025 reflects the dedication of our
employees and the strength of EOG   s unique culture.
A Differentiated Portfolio: Expanding our Reach
While we entered the year already well positioned with strong product, geographic, and
pricing diversity, our peer-leading financial strength enabled transformational investments that
strengthened the depth, duration, and resilience of our asset base. During 2025, we:
    Completed the Encino acquisition which combined large, premier acreage positions,
transforming EOG into a leading Utica operator and creating an additional foundational play
alongside our Delaware Basin, Eagle Ford, and Dorado assets
    Acquired 30,000 net acres in the Eagle Ford, the largest remaining undeveloped core
acreage tract, adding potential to extend laterals, utilize existing infrastructure, boost returns,
and lower    nding costs
    Commissioned the Janus gas processing plant in the Delaware Basin expanding access to
multiple premium Gulf Coast markets
    Commenced construction of the Coconut offshore platform in Trinidad to support our highreturn shallow offshore gas development program
    Achieved exploration success in Trinidad with the Beryl shallow water oil discovery
    Formed a joint venture with Bapco Energies to explore and develop an onshore
unconventional tight gas prospect in Bahrain
    Received an onshore concession in the UAE to explore and appraise an unconventional oil
exploration prospect in coordination with ADNOC

EOG now holds a distinctive position in the upstream sector: access to a deep inventory of growth
opportunities spanning North American liquids, North American natural gas, and international
conventional and unconventional plays.
Capital Discipline Drives Shareholder Returns
EOG   s disciplined capital allocation framework continues to deliver strong financial performance, generating
peer-leading returns on capital employed and robust free cash flow to support shareholder returns: in 2025
we earned $5.5 billion1 of adjusted net income and achieved a 19%1 return on capital employed. Free cash
flow totaled $4.7 billion,1,2 enabling $2.2 billion of regular dividends and $2.5 billion of share repurchases,
resulting in the return of 100% of free cash flow to shareholders.
2025 represents just one year of exceptional cash return to shareholders; however, EOG   s financial
performance driving those returns is best viewed through a longer-term lens. Our regular dividend
increase of 8% last year extended an exceptional track record of consistency and growth. EOG has
never cut or suspended the dividend in 28 years, reflecting the durability of our business model and
commitment to shareholder returns across commodity cycles.
Powering our dividend growth is EOG   s ability to consistently generate free cash flow. We have produced
free cash flow every year since 2016     a decade of sustained performance through varying market
environments. Over the past three years, we have generated $15 billion1,2 in free cash flow and returned
$14 billion to shareholders, while delivering an average return on capital employed of 24%.1 These strong
cash returns helped drive 9% compound annual dividend growth and enabled a 10% cumulative reduction
in the company   s share count over the same period.
Disciplined capital allocation, combined with our multi-basin portfolio, continues to expand free cash
flow potential over both the short and long term. With a strong balance sheet, low-cost structure, and the
flexibility to allocate capital across multiple high-return opportunities, EOG is well positioned to navigate
commodity cycles. Our financial resilience is a core differentiator, enabling the company to deliver
consistent, competitive shareholder returns in both stable and volatile market environments.
Consistent Operational Excellence Compounds Over Time
Operational excellence at EOG is grounded in our superior in-house technical expertise, proprietary
information technology, and self-sourced materials, which together support strong well performance and
disciplined cost control across the entire drilling, completions, and production lifecycle. In 2025, this integrated
approach delivered meaningful operational and financial results. During the year, EOG:

Achieved our $150 million synergy target for the Encino acquisition ahead of our original one-year
timeline through well cost reductions and operational efficiencies

Expanded the use of 3+ mile laterals throughout our foundational plays and drilled the longest lateral in
Texas history     exceeding 24,000 feet     in the Eagle Ford

Extended the benefits from longer laterals through our internal drilling motor program increasing
productive time on surface and downhole, reducing surface footprint, and improving capital efficiency

Deployed high frequency sensors during completions to reduce downtime and enhance fracture efficiency

Leveraged proprietary generative AI tools to streamline collaboration, automate data capture, and provide
real-time operational insights

Optimized base production and runtime using EOG   s proprietary production optimizer program and
machine learning capabilities
Operational achievements in 2025 enabled EOG to beat our total cash operating costs target and reduce
average well costs by 7%. These sustainable cost reductions, driven by efficiency gains and innovation,
compound over time, generating significant cumulative savings and enhancing long-term shareholder
value throughout the development lifecycle.
Sustainability at EOG is A Measurable Commitment
Over the past five years we have made meaningful progress in reducing our emissions intensity and see
continued opportunity to build on that momentum. After achieving our prior emissions targets ahead of
schedule, we established new emissions targets in 2025 to further advance our performance:

Reduce GHG emissions intensity rate3,4 by 25% by 2030, relative to 2019 levels

Maintain near-zero methane emissions4,5 through 2030 with an intensity of 0.2% or less

EOG now holds a distinctive position
in the upstream sector: access to a deep
inventory of growth opportunities spanning
North American liquids, North American
natural gas, and international conventional
and unconventional plays.
These updated targets demonstrate EOG   s commitment to strong environmental performance, with a
continued focus on reducing our emissions intensity through innovation and technology.
Our People and our Culture are Our Number One Competitive Advantage
EOG   s differentiated performance begins with our people and our culture. We are a decentralized
organization, empowering collaborative, multi-disciplinary teams at the asset level to innovate and make
real-time decisions in the field.
Consistent and outstanding execution is what converts operational strength into shareholder value. I
am deeply grateful for the exceptional dedication of the entire EOG team and their contribution to our
performance in 2025.
Positioned for 2026 and Beyond
2025 has been a transformative year and laid a foundation for EOG   s success in 2026. 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.
Today   s dynamic market environment is exactly what EOG is built to excel in. Our multi-basin portfolio,
proprietary technology, and self-sourced materials, backed by our rigorous investment standards and
pristine balance sheet, uniquely position us as a low-cost, highly efficient operator with diverse product,
geographic, and pricing exposure.
I am confident EOG   s differentiated portfolio will continue to drive both near-term performance and
long-term value for shareholders.
Sincerely,
Ezra Y. Yacob
Chairman and Chief Executive Officer
February 24, 2026
See accompanying schedules beginning on page R-1 for reconciliations and definitions of non-GAAP and other measures. Return on capital employed calculated
using non-GAAP adjusted net income.
1
2
Cash flow from operations before changes in working capital and certain acquisition-related costs less capital expenditures.
3
Metric tons of gross operated GHG emissions (Scope 1), on a CO2e basis, per Mboe of total gross operated U.S. onshore and Trinidad production.
Includes Scope 1 emissions (i) reported to the EPA pursuant to the EPA Greenhouse Gas Reporting Program (GHGRP) and emissions that are subject to the EPA
GHGRP but are below the basin reporting threshold and would otherwise go unreported calculated using the GHGRP methodology as adopted in 2024 and (ii) from our
Trinidad operations calculated using the GHGRP methodology as adopted in 2024.
4
5
Based on methane emissions percentage calculated as thousand cubic feet (Mcf) of gross operated methane emissions (Scope 1) per Mcf of total gross operated U.S. onshore
and Trinidad natural gas production.


shareholder letter icon 3/27/2026 Letter Continued (Full PDF)
 

EOG Stockholder/Shareholder Letter (EOG RESOURCES INC) | www.StockholderLetter.com
Copyright © 2023 - 2026, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.