EOG Resources (EOG)
Energy · $77.9B market cap · SEC CIK 0000821189
ahead of 99% of the S&P 500 · #1 of 21 in Energy
Next reports on Feb 22, 2027, after the close, with analysts expecting $5.19 in earnings per share.
52-week range $101.59 to $165.93. 9% below its 52-week high and 49% above its low.
The case for EOG
- Revenue up 30.0% on the year.
- Cheap for its growth: 8.4× mid-cycle earnings, where 6%+ a year of growth plus a 2.9% dividend would justify about 21×.
- Earns 26% back on shareholder equity.
- Generated $3.9B of free cash flow in FY2025, 17% of revenue.
- 28% of revenue drops through to net profit.
- Pays a 2.9% dividend while you wait.
The case against
- Weakest against its peers: price/sales of 2.6× is higher than 65% of Energy companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Energy companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 74 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 71 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 80 |
| Momentumhow the price has behaved lately | 74 |
| Stabilityhow violently it moves, what it owes and what it pays you | 88 |
- Its profits follow commodity prices, so its earnings and margin are read as half the latest year and half the average of the years on file (5), and last year's change in earnings per share is not counted as growth.
- Each factor except momentum is half fixed thresholds, half rank among the 21 Energy companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +30.0% |
|---|---|
| Over 5 years | +15.4% a year |
| FY2025 revenue | $22.6B (−4%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $3.9B |
|---|---|
| Of revenue | 17% |
| Of profit | 79% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 63% |
|---|---|
| Operating margin | 36% |
| Net margin, FY24 → FY25 → now | 27.0% → 22.0% → 27.8% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $3.4B |
|---|---|
| Long-term debt | $7.9B |
| Net debt | $4.5B |
| Years to repay | 0.8 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 9.5× |
|---|---|
| P/E on mid-cycle earnings | 8.4× |
| Fair P/E for its growth | 21× |
| P/FCF | 19.8× |
| Forward P/E | 9.9× |
| EV / EBITDA | 5.1× |
Its profits follow commodity prices, so they are taken as half the latest year and half the average of recent years. At 8.4× those mid-cycle earnings (9.5× the latest year's) it trades well below the 21× that 6%+ a year of growth plus a 2.9% dividend would justify. At 19.8× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from EOG Resources's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $22.6B | $23.7B | $24.2B | $25.7B | $18.6B |
| Change on the year | −4% | −2% | −6% | +38% | — |
| Free cash flow | |||||
| Free cash flow | $3.9B | $6.8B | $6.0B | $6.5B | $5.2B |
| Of revenue | 17% | 29% | 25% | 25% | 28% |
| Profit margins | |||||
| Operating margin | 28.2% | 34.1% | 39.7% | 38.8% | 32.7% |
| Net margin | 22.0% | 27.0% | 31.4% | 30.2% | 25.0% |
| Debt vs. cash | |||||
| Cash | $3.4B | $7.1B | $5.3B | $6.0B | $5.2B |
| Long-term debt | $7.9B | $4.2B | $3.8B | $3.8B | $5.1B |
| Net cash (debt) | −$4.5B | $2.9B | $1.5B | $2.2B | $137M |
What EOG Resources says it does
EOG Resources, Inc., a Delaware corporation organized in 1985, together with its subsidiaries (collectively, EOG), explores for, develops, produces and markets crude oil, natural gas liquids (NGLs) and natural gas primarily in major producing basins in the United States of America (United States or U.S.), the Republic of Trinidad and Tobago (Trinidad) and, from time to time, select other international areas, including the Kingdom of Bahrain and the United Arab Emirates. EOG's principal producing areas are further described in "Exploration and Production" below. EOG's Annual Reports on Form 10-K, Quarterly Reports on Form 10‑Q, Current Reports on Form 8-K and any amendments to those reports (including related exhibits and supplemental schedules) filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (as amended) are made available, free of charge, through EOG's website, as soon as reasonably…
Risk factors EOG lists in its 10-K
- Crude oil, NGLs and natural gas prices are volatile, and a substantial and extended decline in commodity prices can have a material and adverse effect on us
- We have substantial capital requirements, and we may be unable to obtain needed financing on satisfactory terms, if at all
- Our continued initiatives to increase operating efficiencies may not be successful in offsetting any future inflationary pressures on our operating costs and capital expenditures
- Reserve estimates depend on many interpretations and assumptions. Any significant inaccuracies in these interpretations and assumptions could cause the reported quantities of our reserves to be materially misstated
- If we fail to acquire or find sufficient additional reserves over time, our reserves and production will decline from their current levels
- Our ability to declare and pay regular or special dividends on our common stock and repurchase shares of our common stock is subject to certain factors and considerations
- The inability of our customers and other contractual counterparties to satisfy their obligations to us may have a material and adverse effect on us
- Drilling crude oil and natural gas wells is a high-risk activity and subjects us to a variety of risks that we cannot control
- A portion of our crude oil, NGLs and natural gas production may be subject to interruptions that could have a material and adverse effect on us
- Competition in the oil and gas exploration and production industry is intense, and some of our competitors have greater resources than we have
- Developments and concerns related to climate change may have a material and adverse effect on us
- Regulatory, legislative and policy changes may materially and adversely affect the oil and gas exploration and production industry
- We incur certain costs to comply with government regulations, particularly regulations relating to environmental protection and safety, and could incur even greater costs in the future
- We operate in other countries and, as a result, are subject to certain political, economic, competitive and other risks
- Our business could be materially and adversely affected by security threats, including cyber threats and cyber attacks, and other disruptions
- Terrorist activities and military and other actions could materially and adversely affect us