EOG Resources, Inc. (NYSE:EOG) is a leading figure in the oil and gas exploration and production sector in the United States. Renowned for its efficient operations and robust financial health, EOG stands in competition with industry giants like ExxonMobil and Chevron, focusing on maximizing production and enhancing shareholder value.
EOG is poised to unveil its quarterly earnings on February 28, 2025, with Wall Street analysts projecting an earnings per share (EPS) of $2.55 and anticipated revenue of $5.96 billion. However, EOG outperformed expectations, reporting an EPS of $2.74, which is a 7.45% beat against the Zacks Consensus Estimate. This achievement continues EOG's streak of surpassing consensus EPS estimates for the fourth consecutive quarter.
Despite this earnings success, EOG's quarterly revenue amounted to $5.59 billion, failing to meet the Zacks Consensus Estimate by 5.05%. This figure also signifies a downturn from the $6.36 billion reported in the corresponding quarter of the previous year. The revenue shortfall is primarily attributed to diminished oil prices, though the blow was somewhat cushioned by an uptick in production.
EOG has seen a 6.7% increase in production volumes, achieving nearly 1.1 million barrels of oil per day. The company aims to sustain this level of production, forecasting a range between 1.1 million and 1.14 million barrels per day for 2025. This ambition is supported by data from the U.S. Energy Information Administration, which noted a record surge in the country's oil production.
For the entirety of 2024, EOG generated $5.4 billion in free cash flow and returned $5.3 billion to its shareholders. The company also reported a 201% replacement of its 2024 production at a finding and development cost of $7.03 per barrel of oil equivalent (Boe) under GAAP. With a P/E ratio of 10.32 and a debt-to-equity ratio of 0.14, EOG's financial metrics reflect a strong market valuation and financial resilience.
