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What changed in EOG Resources's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of EOG Resources's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+343 added−349 removedSource: 10-K (2026-02-24) vs 10-K (2025-02-27)

Top changes in EOG Resources's 2025 10-K

343 paragraphs added · 349 removed · 287 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

75 edited+17 added−25 removed81 unchanged
Biggest changeYear Ended December 31 2024 2023 2022 Crude Oil and Condensate Volumes (MMBbl) (1) United States: Delaware Basin 113.3 110.2 101.1 Eagle Ford Play 45.5 43.9 46.6 Other 20.8 19.4 20.3 United States 179.6 173.5 168.0 Trinidad 0.3 0.2 0.3 Total 179.9 173.7 168.3 Natural Gas Liquids Volumes (MMBbl) (1) United States: Delaware Basin 67.7 59.8 50.7 Eagle Ford Play 11.1 10.5 10.5 Other 11.2 11.4 10.9 United States 90.0 81.7 72.1 Total 90.0 81.7 72.1 Natural Gas Volumes (Bcf) (1) United States: Delaware Basin 380 325 279 Eagle Ford Play 53 50 52 Other 199 191 149 United States 632 566 480 Trinidad 81 59 66 Total 713 625 546 Crude Oil Equivalent Volumes (MMBoe) (2) United States: Delaware Basin 244.4 224.2 198.3 Eagle Ford Play 65.4 62.7 65.8 Other 65.2 62.6 56.0 United States 375.0 349.5 320.1 Trinidad 13.7 9.9 11.4 Total 388.7 359.4 331.5 5 Year Ended December 31 2024 2023 2022 Average Crude Oil and Condensate Prices ($/Bbl) (3) United States $ 77.42 $ 79.18 $ 97.22 Trinidad 64.43 68.58 86.16 Composite 77.40 79.17 97.21 Average Natural Gas Liquids Prices ($/Bbl) (3) United States $ 23.40 $ 23.07 $ 36.70 Composite 23.40 23.07 36.70 Average Natural Gas Prices ($/Mcf) (3) United States $ 1.99 $ 2.70 $ 7.27 Trinidad 3.65 3.65 4.43 (4) Composite 2.17 2.79 6.93 (1) Million barrels or billion cubic feet, as applicable.
Biggest changeYear Ended December 31 2025 2024 2023 Crude Oil and Condensate Volumes (MMBbl) (1) United States: Delaware Basin 116.7 113.3 110.2 Eagle Ford Play 44.2 45.5 43.9 Other 29.1 20.8 19.4 United States 190.0 179.6 173.5 Trinidad 0.5 0.3 0.2 Total 190.5 179.9 173.7 Natural Gas Liquids Volumes (MMBbl) (1) United States: Delaware Basin 73.0 67.7 59.8 Eagle Ford Play 11.7 11.1 10.5 Other 20.5 11.2 11.4 United States 105.2 90.0 81.7 Total 105.2 90.0 81.7 Natural Gas Volumes (Bcf) (1) United States: Delaware Basin 431 380 325 Eagle Ford Play 56 53 50 Other 352 199 191 United States 839 632 566 Trinidad 84 81 59 Other International (2) 1 — — Total 924 713 625 Crude Oil Equivalent Volumes (MMBoe) (3) United States: Delaware Basin 261.5 244.4 224.2 Eagle Ford Play 65.3 65.4 62.7 Other 108.2 65.2 62.6 United States 435.0 375.0 349.5 Trinidad 14.6 13.7 9.9 Other International (2) 0.2 — — Total 449.8 388.7 359.4 5 Year Ended December 31 2025 2024 2023 Average Crude Oil and Condensate Prices ($/Bbl) (4) United States $ 65.65 $ 77.42 $ 79.18 Trinidad 57.59 64.43 68.58 Composite 65.63 77.40 79.17 Average Natural Gas Liquids Prices ($/Bbl) (4) United States $ 22.58 $ 23.40 $ 23.07 Composite 22.58 23.40 23.07 Average Natural Gas Prices ($/Mcf) (4) United States $ 2.94 $ 1.99 $ 2.70 Trinidad 3.78 3.65 3.65 Other International (2) 3.28 — — Composite 3.02 2.17 2.79 (1) Million barrels or billion cubic feet, as applicable.
EOG's leadership training, in particular, is focused on providing continuity of leadership at EOG by further enhancing the skills needed to lead a multi-disciplined, diverse and decentralized workforce. In addition, EOG holds several internal technical conferences each year designed to share best practices and technical advances across the company, including safety and environmental topics.
EOG's leadership training, in particular, is focused on providing continuity of leadership at EOG by further enhancing the skills needed to lead a multi-disciplined and decentralized workforce. In addition, EOG holds several internal technical conferences each year designed to share best practices and technical advances across the company, including safety and environmental topics.
Such rules, regulations, policies and legislation may affect, among other things, (i) permitting for oil and gas drilling on state, tribal and federal lands, (ii) the leasing of state, tribal and federal lands for oil and gas development, (iii) the regulation and disclosure of greenhouse gas (GHG) emissions and/or other climate change-related matters associated with oil and gas operations (e.g., the development, implementation and carrying out of carbon capture and storage activities, including associated financial or tax incentives), (iv) the use of hydraulic fracturing on state, tribal and federal lands, (v) the calculation of royalty payments in respect of oil and gas production from state, tribal and federal lands (including, but not limited to, an increase in applicable royalty percentages), (vi) U.S. federal income tax laws applicable to oil and gas exploration and production companies and (vii) the use of financial derivative instruments to hedge the financial impact of fluctuations in crude oil, NGLs and natural gas prices.
Such rules, regulations, policies and legislation may affect, among other things, (i) permitting for oil and gas drilling on state, tribal and federal lands, (ii) the leasing of state, tribal and federal lands for oil and gas development, (iii) the regulation and disclosure of greenhouse gas (GHG) emissions and/or other climate change-related matters associated with oil and gas operations (e.g., the development, implementation and carrying out of carbon capture and storage activities, including associated financial or tax incentives), (iv) the use of hydraulic fracturing on state, tribal and federal lands, (v) the calculation of royalty payments in respect of oil and gas production from state, tribal and federal lands (including, but not limited to, applicable royalty percentages), (vi) U.S. federal income tax laws applicable to oil and gas exploration and production companies and (vii) the use of financial derivative instruments to hedge the financial impact of fluctuations in crude oil, NGLs and natural gas prices.
The direct and indirect cost of such laws and regulations (if enacted) could materially and adversely affect EOG's operations, financial condition, results of operations and capital expenditures. Climate Change - United States. Local, state, federal and international regulatory bodies have been increasingly focused on GHG emissions and climate change issues in recent years. The U.S.
The direct and indirect cost of such laws and regulations (if enacted) could materially and adversely affect EOG's operations, financial condition, results of operations and capital expenditures. Climate Change - United States. Local, state, federal and international regulatory bodies have been focused on GHG emissions and climate change issues in recent years. The U.S.
Hydraulic fracturing generally takes place thousands of feet underground, a considerable distance below any drinking water aquifers, and there are impermeable layers of rock between the area fractured and the water aquifers.
Hydraulic fracturing generally takes place thousands of feet underground, a considerable distance below any drinking water aquifers; further, there are impermeable layers of rock between the area fractured and the water aquifers.
As a consequence, EOG may be at a competitive disadvantage in certain respects, such as in bidding for drilling rights or in accessing necessary services, facilities, equipment, materials and personnel.
As a consequence, EOG may be at a competitive disadvantage in certain respects, such as in bidding for drilling rights or in accessing and retaining necessary services, facilities, equipment, materials and personnel.
For a summary of EOG's financial commodity and other derivative contracts for the year ended December 31, 2024, see Note 12 to Consolidated Financial Statements. Risk Management. EOG engages in price risk management activities from time to time. These activities are intended to manage EOG's exposure to fluctuations in prices of crude oil, NGLs and natural gas.
For a summary of EOG's financial commodity and other derivative contracts for the year ended December 31, 2025, see Note 12 to Consolidated Financial Statements. 12 Risk Management. EOG engages in price risk management activities from time to time. These activities are intended to manage EOG's exposure to fluctuations in prices of crude oil, NGLs and natural gas.
In addition, new-hire stock grants, annual stock grants and an employee stock purchase plan give every employee the opportunity to be a participant in EOG's success. Training and Development . EOG supports employees' professional development and provides training in leadership, management skills, communication, team effectiveness, technical skills and use of EOG systems and applications.
In addition, new-hire stock grants, annual stock grants and an employee stock purchase plan give every employee the opportunity to be a participant in EOG's success. 6 Training and Development . EOG supports employees' professional development and provides training in leadership, communication, team effectiveness, technical skills and use of EOG systems and applications.
EOG values the gender, racial, ethnic and cultural backgrounds of our employees and works to foster a collaborative work environment of different talents, perspectives and experiences. EOG believes the backgrounds and experiences of our employees, as well as an inclusive work environment, promotes collaboration through multiple perspectives, which helps foster creativity and drive innovation.
EOG values the gender, racial, ethnic and cultural backgrounds of our employees and works to foster a collaborative work environment of different talents, perspectives and experiences. EOG believes the backgrounds, viewpoints and experiences of our employees, as well as an inclusive work environment, promotes collaboration through multiple perspectives, which helps enhance creativity and drive innovation.
The table also presents crude oil equivalent volumes which are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 Mcf of natural gas for each of the years ended December 31, 2024, 2023 and 2022.
The table also presents crude oil equivalent volumes which are determined using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 Mcf of natural gas for each of the years ended December 31, 2025, 2024 and 2023.
Hydraulic fracturing technology, which has been used by the oil and gas industry for more than 60 years and is constantly being enhanced, enables EOG to produce crude oil and natural gas that otherwise would not be recovered.
Hydraulic fracturing technology, which has been used by the oil and gas industry for more than 70 years and is constantly being enhanced, enables EOG to produce crude oil and natural gas that otherwise would not be recovered.
EOG's jurisdictional sales, however, may be subject in the future to greater federal oversight, including the possibility that the FERC might prospectively impose more restrictive conditions on such sales. Conversely, sales of crude oil and condensate and NGLs by EOG are made at unregulated market prices.
EOG's jurisdictional sales, however, may be subject in the future to greater federal oversight, including the possibility that the FERC might prospectively impose more restrictive conditions on such sales. EOG's sales of crude oil and condensate and NGLs are made at unregulated market prices.
EOG did not transport any crude oil by rail during 2024. Proposals and proceedings that might affect the oil and gas industry are considered from time to time by Congress, the state legislatures, the FERC and other federal, state and local regulatory commissions, agencies, councils and courts.
EOG did not transport any crude oil by rail during 2025. 8 Proposals and proceedings that might affect the oil and gas industry are considered from time to time by Congress, the state legislatures, the FERC and other federal, state and local regulatory commissions, agencies, councils and courts.
Further, the increasing attention to global climate change risks has created the potential for a greater likelihood of governmental investigations and private and public litigation, which could increase our costs or otherwise adversely affect our business. See ITEM 1A, Risk Factors, for additional discussion regarding climate change-related developments. Regulation of Hydraulic Fracturing and Other Operations - United States.
Further, the increasing attention to global climate change risks may create the potential for a greater likelihood of governmental investigations and private and public litigation, which could increase our costs or otherwise adversely affect our business. See ITEM 1A, Risk Factors, for additional discussion regarding climate change-related developments. Regulation of Hydraulic Fracturing and Other Operations - United States.
Regulation General. New or revised rules, regulations and policies may be issued, and new legislation may be proposed, that could impact the oil and gas exploration and production industry.
Regulation General. New or revised rules, regulations and policies may be issued, and new legislation may be enacted, that could impact the oil and gas exploration and production industry.
Business General 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.
Business General 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.
The charge will be levied annually based on emissions reported under the U.S. EPA's GHG reporting program, which program was amended in May 2024, impacting how emissions are reported under the program. The U.S. EPA published final regulations specific to the calculation of such annual charge in November 2024. In February 2025, however, the U.S.
The charge will be levied annually based on emissions reported under the U.S. Environmental Protection Agency's (U.S. EPA) GHG Reporting Program, which was amended in May 2024, impacting how emissions are reported under the program. The U.S. EPA published final regulations specific to the calculation of such annual charge in November 2024. In February 2025, however, the U.S.
Human Capital Management As of December 31, 2024, EOG employed approximately 3,150 persons, including foreign national employees. EOG's approach to human capital management includes oversight by the Board of Directors (Board) and the Compensation and Human Resources Committee of the Board and focuses on various areas, including the following: Culture; Recruiting; Retention .
Human Capital Management As of December 31, 2025, EOG employed approximately 3,400 persons, including foreign national employees. EOG's approach to human capital management includes oversight by the Board of Directors (Board) and the Compensation and Human Resources Committee of the Board and focuses on various areas, including the following: Culture; Recruiting; Retention .
Please refer to ITEM 1A, Risk Factors, for further discussion of the risks to which EOG is subject with respect to its operations outside the United States. Information About Our Executive Officers The current executive officers of EOG and their names and ages (as of February 27, 2025) are as follows: Name Age Position Ezra Y.
Please refer to ITEM 1A, Risk Factors, for further discussion of the risks to which EOG is subject with respect to its operations outside the United States. 13 Information About Our Executive Officers The current executive officers of EOG and their names and ages (as of February 24, 2026) are as follows: Name Age Position Ezra Y.
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2025 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in natural gas price is approximately $33 million for net income and $42 million for pretax cash flows from operating activities.
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2026 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in natural gas price is approximately $64 million for net income and $83 million for pretax cash flows from operating activities.
At December 31, 2024, EOG was committed to deliver to multiple parties aggregate fixed quantities of purity products of 15 MMBbls in 2025, all of which is expected to be sourced from future production of available reserves.
At December 31, 2025, EOG was committed to deliver to multiple parties aggregate fixed quantities of purity products of 24 MMBbls in 2026, all of which is expected to be sourced from future production of available reserves.
Further, in April 2024, the BLM published its final Waste Prevention Rule, which requires operators of oil and gas leases to take reasonable steps to avoid natural gas waste, as well as develop leak detection, repair and waste minimization plans.
Further, in April 2024, the BLM published its final Waste Prevention Rule, which requires operators of oil and gas leases to take reasonable steps to avoid natural gas waste, as well as develop leak detection, repair and waste minimization plans. However, in September 2025, the U.S.
During 2024, three purchasers each accounted for more than 10% of EOG's total crude oil and condensate, NGLs and natural gas revenues and gathering, processing and marketing revenues. The purchasers are in the crude oil refining industry.
During 2025, two purchasers each accounted for more than 10% of EOG's total crude oil and condensate, NGLs and natural gas revenues and gathering, processing and marketing revenues. The purchasers are in the crude oil refining industry.
Average NGLs prices received by EOG for production in the United States increased 1% in 2024, decreased 37% in 2023 and increased 7% in 2022, each as compared to the immediately preceding year.
Average NGLs prices received by EOG for production in the United States decreased 4% in 2025, increased 1% in 2024 and decreased 37% in 2023, each as compared to the immediately preceding year.
For a summary of EOG's financial commodity and other derivative contracts through February 21, 2025, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources and Liquidity - Financial Commodity and Other Derivative Transactions.
For a summary of EOG's financial commodity and other derivative contracts through February 18, 2026, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources and Liquidity - Financial Commodity and Other Derivative Transactions.
For a summary of EOG's financial commodity and other derivative contracts through February 21, 2025, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations ‑ Capital Resources and Liquidity - Financial Commodity and Other Derivative Transactions.
For a summary of EOG's financial commodity and other derivative contracts through February 18, 2026, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations ‑ Capital Resources and Liquidity - Financial Commodity and Other Derivative Transactions.
EOG owns certain gathering and/or processing facilities and systems in the Permian Basin in West Texas and New Mexico, the Anadarko Basin in Oklahoma, the Powder River Basin in Wyoming, the Utica in Ohio, the Barnett Shale in the Bend Arch-Fort Worth Basin in North Texas, the Bakken and Three Forks plays in the Williston Basin in North Dakota, and the Eagle Ford play and Dorado gas play in South Texas.
EOG owns certain gathering and/or processing facilities and systems in the Permian Basin in West Texas and New Mexico, the Anadarko Basin in Oklahoma, the Powder River Basin in Wyoming, the Appalachian Basin in Ohio, the Barnett Shale in North Texas, the Bakken and Three Forks plays in the Williston Basin in North Dakota, and the Eagle Ford play and Dorado gas play in South Texas.
Based on EOG's tax position, EOG's price sensitivity in 2025 for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGLs price, is approximately $159 million for net income and $204 million for pretax cash flows from operating activities.
Based on EOG's tax position, EOG's price sensitivity in 2026 for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGLs price, is approximately $174 million for net income and $223 million for pretax cash flows from operating activities.
Average crude oil and condensate prices received by EOG for production in the United States decreased 2% in 2024, decreased 19% in 2023 and increased 42% in 2022, each as compared to the immediately preceding year.
Average crude oil and condensate prices received by EOG for production in the United States decreased 15% in 2025, decreased 2% in 2024 and decreased 19% in 2023, each as compared to the immediately preceding year.
EOG's interests in offshore leases are de minimis. The transportation and sale for resale of natural gas in interstate commerce are regulated pursuant to the Natural Gas Act of 1938, as amended (NGA), and the Natural Gas Policy Act of 1978. These statutes are administered by the Federal Energy Regulatory Commission (FERC).
The transportation and sale for resale of natural gas in interstate commerce are regulated pursuant to the Natural Gas Act of 1938, as amended (NGA), and the Natural Gas Policy Act of 1978. These statutes are administered by the Federal Energy Regulatory Commission (FERC).
At December 31, 2024, on a crude oil equivalent basis, 40% of EOG's net proved reserves in the United States were crude oil and condensate, 29% were NGLs and 31% were natural gas. The majority of these reserves are in long-lived fields with well-established production characteristics.
At December 31, 2025, on a crude oil equivalent basis, 35% of EOG's net proved reserves in the United States were crude oil and condensate, 27% were NGLs and 38% were natural gas. The majority of these reserves are in long-lived fields with well-established production characteristics.
EOG, through its subsidiaries, including EOG Resources Trinidad Limited, holds interests in (i) the exploration and production licenses covering the South East Coast Consortium (SECC) and Pelican Blocks, Banyan and Sercan Areas and each of their related platforms and facilities and the Ska, Mento and Reggae (SMR) and deep Teak, Saaman and Poui (TSP Deep) Areas, all of which are offshore Trinidad; and (ii) two production sharing contracts with the Government of Trinidad and Tobago for the Modified U(a) and 4(a) Blocks.
EOG, through its subsidiaries, including EOG Resources Trinidad Limited, holds interests in (i) the exploration and production licenses covering the South East Coast Consortium and Pelican Blocks, Banyan and Sercan Areas and each of their related platforms and facilities, the Ska, Mento and Reggae and Deep Teak, Saaman and Poui (TSP Deep) Areas and Coconut Field, all of which are offshore Trinidad; and (ii) four production sharing contracts with the Government of Trinidad and Tobago for the Modified U(a), 4(a), Lower Reverse L and North Coast Marine Area 4(a) Blocks.
In addition, EOG could be responsible under environmental laws and regulations for oil and gas properties in which EOG previously owned or currently owns an interest, but was or is not the operator. Moreover, EOG is subject to the U.S. Environmental Protection Agency's (U.S.
In addition, EOG could be responsible under environmental laws and regulations for oil and gas properties in which EOG previously owned or currently owns an interest, but was or is not the operator.
In addition, the Inflation Reduction Act of 2022 (IRA) requires that all leases granted and administered by the BLM and entered into on or after August 16, 2022 include a royalty rate of 16.67 percent in respect of the associated oil and gas production.
In addition, the Inflation Reduction Act of 2022 (IRA) required that all leases granted and administered by the BLM and entered into on or after August 16, 2022 include a royalty rate of 16.67 percent in respect of the associated oil and gas production. Regulations implementing the new royalty rate were finalized in April 2024.
In each case, the price received was based on market prices for that location and purity product. In 2025, the pricing mechanisms for NGL and purity products sales are expected to remain the same.
In 2025, EOG also sold purity products at the Houston Ship Channel. In each case, the price received was based on market prices for that location and purity product. In 2026, the pricing mechanisms for NGL and purity products sales are expected to remain the same.
EOG is unable to predict the timing, scope and effect of any currently proposed or future investigations, laws, regulations, treaties or policies regarding climate change and GHG emissions (including any laws and regulations that may be enacted in the U.S.), but the direct and indirect costs of such investigations, laws, regulations, treaties or policies (if enacted, issued or applied) could materially and adversely affect EOG's operations, financial condition, results of operations and capital expenditures.
See ITEM 1A, Risk Factors, for additional discussion regarding EOG’s initiatives, targets and ambitions related to emissions and other environmental matters. 10 EOG is unable to predict the timing, scope and effect of any currently proposed or future investigations, laws, regulations, treaties or policies regarding climate change and GHG emissions (including any laws and regulations that may be enacted in the U.S.), but the direct and indirect costs of such investigations, laws, regulations, treaties or policies (if enacted, issued or applied) could materially and adversely affect EOG's operations, financial condition, results of operations and capital expenditures.
While the majority of the sand remains underground to hold open the fractures, a significant amount of the water and chemical additives flow back and are then either reused or safely disposed of at sites that are approved and permitted by the appropriate regulatory authorities.
While the majority of the sand remains underground to hold open the fractures, a significant amount of the water and chemical additives flow back and are then either reused or safely disposed of at sites that are approved and permitted by the appropriate regulatory authorities. EOG periodically conducts regulatory assessments of these disposal facilities to monitor compliance with applicable regulations.
At December 31, 2024, EOG was committed to deliver to multiple parties aggregate fixed quantities of natural gas of 342 Bcf in 2025, 318 Bcf in 2026, 359 Bcf in 2027, 328 Bcf in 2028, 328 Bcf in 2029 and 3,474 Bcf thereafter, all of which is expected to be sourced from future production of available reserves.
At December 31, 2025, EOG was committed to deliver to multiple parties aggregate fixed quantities of natural gas of 573 Bcf in 2026, 370 Bcf in 2027, 338 Bcf in 2028, 336 Bcf in 2029, 331 Bcf in 2030 and 3,020 Bcf thereafter, all of which is expected to be sourced from future production of available reserves.
Specifically, EOG maintains commercial general liability and excess liability insurance coverage for bodily injury or death claims resulting from an incident involving EOG's operations (subject to policy terms and conditions).
Specifically, EOG maintains commercial general liability and excess liability insurance coverage for third party property damage, bodily injury or death claims resulting from an incident involving EOG's operations, including a sudden and accidental pollution event (subject to policy terms and conditions).
Fluctuations in average natural gas prices received by EOG for production in the United States resulted in a 26% decrease in 2024, a 63% decrease in 2023, and a 49% increase in 2022, each as compared to the immediately preceding year. 11 Due to the many uncertainties associated with the world political and economic environment (for example, the actions of other crude oil exporting nations, including the Organization of Petroleum Exporting Countries, or the global impacts of wars or military conflicts involving such nations or regions), the global supply of, and demand for, crude oil, NGLs and natural gas and the availability of other energy supplies, the relative competitive relationships of the various energy sources in the view of consumers and other factors, EOG is unable to predict what changes may occur in the prices of crude oil and condensate, NGLs and natural gas in the future.
Due to the many uncertainties associated with the world political and economic environment (for example, the actions of other crude oil exporting nations, including the Organization of Petroleum Exporting Countries, or the global impacts of wars or military conflicts involving such nations or regions), the global supply of, and demand for, crude oil, NGLs and natural gas and the availability of other energy supplies, the relative competitive relationships of the various energy sources in the view of consumers and other factors, EOG is unable to predict what changes may occur in the prices of crude oil and condensate, NGLs and natural gas in the future.
The indemnification and other risk allocation provisions included in such contracts are negotiated on a contract-by-contract basis and are each based on the particular circumstances of the services being provided and the anticipated operations. 12 In addition to the above-described risks, EOG's operations outside the United States are subject to certain risks, including: • increases in taxes and governmental royalties; • additional and potentially unfamiliar laws and policies governing the operations of foreign-based companies and changes in such laws and policies; • expropriation of assets; • unilateral or forced renegotiation, modification or nullification of existing contracts with governmental entities; and • currency restrictions and exchange rate fluctuations.
In addition to the above-described risks, EOG's operations outside the United States are subject to certain additional risks, including: • increases in taxes and governmental royalties; • additional and potentially unfamiliar laws and policies governing the operations of foreign-based companies and changes in such laws and policies; • expropriation of assets; • unilateral or forced renegotiation, modification or nullification of existing contracts with governmental entities; and • currency restrictions and exchange rate fluctuations.
(2) Million barrels of oil equivalent; includes crude oil and condensate, NGLs and natural gas. (3) Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity and other derivative instruments (see Note 12 to Consolidated Financial Statements).
(2) Production volumes from Bahrain operations; realized price represents contract price less Bapco's processing and distribution costs. (3) Million barrels of oil equivalent; includes crude oil and condensate, NGLs and natural gas. (4) Dollars per barrel or per thousand cubic feet, as applicable. Excludes the impact of financial commodity and other derivative instruments (see Note 12 to Consolidated Financial Statements).
In each case, the price received was based on market prices at that specific sales point or based on the price index applicable for that location. In 2025, the pricing mechanism for such production is expected to remain the same.
In 2025, EOG also sold crude oil at the Port of Corpus Christi for export to foreign destinations. In each case, the price received was based on market prices at that specific sales point or based on the price index applicable for that location. In 2026, the pricing mechanism for such production is expected to remain the same.
EOG also offers its employees a tuition reimbursement program as well as reimbursement for the costs of professional certifications. 6 Safety . EOG's safety management programs and processes provide a framework for assessing safety performance in a systematic way.
EOG also offers its employees a tuition reimbursement program as well as reimbursement for the costs of professional certifications. Safety . EOG's safety management programs and processes provide a framework for assessing safety performance in a systematic way. To foster accountability for conducting operations in a safe manner, EOG's safety performance is considered in evaluating employee performance and compensation.
Activity in 2025 will remain focused on the Wolfcamp, Bone Spring and Leonard plays, where EOG expects to complete approximately 375 net wells. The South Texas area includes the Eagle Ford play and the Dorado gas play. EOG holds approximately 535,000 total net acres in the Eagle Ford play and approximately 160,000 net acres in the Dorado gas play.
In the Delaware Basin, EOG completed 393 net wells in 2025, primarily in the Wolfcamp, Bone Spring and Leonard plays. Activity in 2026 will remain focused on the Wolfcamp, Bone Spring and Leonard plays, where EOG expects to complete approximately 300 net wells. The South Texas area includes the Eagle Ford play and the Dorado gas play.
At December 31, 2024, EOG's total estimated net proved reserves were 4,748 million barrels of oil equivalent (MMBoe), of which 1,870 million barrels (MMBbl) were crude oil and condensate reserves, 1,358 MMBbl were NGLs reserves and 9,122 billion cubic feet (Bcf), or 1,520 MMBoe, were natural gas reserves (see "Supplemental Information to Consolidated Financial Statements").
At December 31, 2025, EOG's total estimated net proved reserves were 5,514 million barrels of oil equivalent (MMBoe), of which 1,905 million barrels (MMBbl) were crude oil and condensate reserves, 1,510 MMBbl were NGLs reserves and 12,592 billion cubic feet (Bcf), or 2,099 MMBoe, were natural gas reserves (see "Supplemental Information to Consolidated Financial Statements").
The UAE Consensus calls on parties, including the U.S., to contribute to the transitioning away from fossil fuels, reduce methane emissions, and increase renewable energy capacity, among other things, to achieve net zero emissions by 2050. In January 2025, the United States submitted formal notification to the United Nations that it intends to withdraw from the Paris Agreement.
The UAE Consensus calls on parties, including the U.S., to contribute to the transitioning away from fossil fuels, reduce methane emissions, and increase renewable energy capacity, among other things, to achieve net zero emissions by 2050.
Yacob 48 Chairman of the Board and Chief Executive Officer Jeffrey R. Leitzell 45 Executive Vice President and Chief Operating Officer Ann D. Janssen 60 Executive Vice President and Chief Financial Officer Michael P. Donaldson 62 Executive Vice President, General Counsel and Corporate Secretary Ezra Y.
Yacob 49 Chairman of the Board and Chief Executive Officer Jeffrey R. Leitzell 46 Executive Vice President and Chief Operating Officer Ann D. Janssen 61 Executive Vice President and Chief Financial Officer Michael P. Donaldson 63 Executive Vice President and Chief Legal Officer Ezra Y.
Additionally, EOG sells natural gas to a liquefaction facility near Corpus Christi, Texas, and receives pricing based on the Platts Japan Korea Marker; such pricing mechanism is expected to remain the same in 2025.
In 2026, the pricing mechanism for such production is expected to generally remain the same. Additionally, EOG sells natural gas to a liquefaction facility near Corpus Christi, Texas, and may receive pricing based on the Platts Japan Korea Marker (or the NYMEX Henry Hub price, at EOG's election); such pricing mechanism is expected to remain the same in 2026.
Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal penalties, including the assessment of monetary penalties, the imposition of investigatory and remedial obligations, the suspension or revocation of necessary permits, licenses and authorizations, the requirement that additional pollution controls be installed and the issuance of orders enjoining future operations or imposing additional compliance requirements. 8 In addition, EOG has acquired certain oil and gas properties from third parties whose actions with respect to the management and disposal or release of hydrocarbons or other wastes were not under EOG's control.
Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal penalties, including the assessment of monetary penalties, the imposition of investigatory and remedial obligations, the suspension or revocation of necessary permits, licenses and authorizations, the requirement that additional pollution controls be installed and the issuance of orders enjoining future operations or imposing additional compliance requirements.
EOG periodically conducts regulatory assessments of these disposal facilities to monitor compliance with applicable regulations. 10 The regulation of hydraulic fracturing is primarily conducted at the state and local level through permitting and other compliance requirements. In April 2012, however, the U.S.
The regulation of hydraulic fracturing is primarily conducted at the state and local level through permitting and other compliance requirements. In April 2012, however, the U.S.
EOG also maintains an active exploration program designed to extend fields and add new trends and resource plays to its already broad portfolio. 1 The following is a summary of volume statistics and net well completions for the year ended December 31, 2024, total net acres at December 31, 2024, and expected net well completions planned for 2025 for certain areas of EOG's United States operations. 2024 2025 Area of Operation Crude Oil & Condensate Volumes (MBbld) (1) Natural Gas Liquids Volumes (MBbld) (1) Natural Gas Volumes (MMcfd) (1) Total Net Acres (in thousands) Net Well Completions Expected Net Well Completions Delaware Basin 309.7 184.9 1,039 395 385 375 South Texas 124.4 30.8 448 1,272 181 145 Rocky Mountain 41.7 14.9 149 776 42 45 Other Areas 14.8 15.3 92 915 33 40 Total 490.6 245.9 1,728 3,358 641 605 (1) Thousand barrels per day or million cubic feet per day, as applicable.
EOG also maintains an active exploration program designed to extend fields and add new trends and resource plays to its already broad portfolio. 1 The following is a summary of volume statistics and net well completions for the year ended December 31, 2025, total net acres at December 31, 2025, and expected net well completions planned for 2026 for certain areas of EOG's United States operations. 2025 2026 Area of Operation Crude Oil & Condensate Volumes (MBbld) (1) Natural Gas Liquids Volumes (MBbld) (1) Natural Gas Volumes (MMcfd) (1) Total Net Acres (in thousands) Net Well Completions Expected Net Well Completions Delaware Basin 318.7 199.4 1,179 395 393 300 South Texas 121.3 32.3 581 1,313 149 155 Appalachian Basin 32.4 32.7 340 1,736 55 85 Rocky Mountain 40.7 14.0 143 748 34 45 Other Areas 7.4 9.8 56 474 10 — Total 520.5 288.2 2,299 4,666 641 585 (1) Thousand barrels per day or million cubic feet per day, as applicable.
Donaldson was elected Executive Vice President, General Counsel and Corporate Secretary in April 2016. Previously, Mr. Donaldson served as Vice President, General Counsel and Corporate Secretary from May 2012 to April 2016. He was elected Corporate Secretary in May 2008, and was appointed Deputy General Counsel and Corporate Secretary in July 2010. Mr. Donaldson joined EOG in September 2007. 13
Donaldson was elected Executive Vice President and Chief Legal Officer in September 2025. Previously, Mr. Donaldson served as Executive Vice President, General Counsel and Corporate Secretary from April 2016 to September 2025 and served as Vice President, General Counsel and Corporate Secretary from May 2012 to April 2016.
EOG’s approach to reducing emissions from its operations remains operationally focused. For example, EOG has developed an environmental data collection and analysis system that is utilized in calculating GHG emissions from the facilities it operates. This system calculates emissions based on recognized regulatory methodologies, where applicable, and on commonly accepted engineering practices.
EOG believes that its strategy to continue to improve its emissions performance is important for environmental, operational and economic reasons. EOG’s approach to reducing emissions from its operations remains operationally focused. For example, EOG has developed an environmental data collection and analysis system that is utilized in calculating GHG emissions from the facilities it operates.
NGLs were sold at prevailing market prices, into either local markets or downstream locations. In certain instances, EOG exchanged its NGLs production for purity products received downstream, which were sold at prevailing market prices. In 2024, EOG also sold purity products at the Houston Ship Channel.
In 2025, EOG processed certain of its United States natural gas production, either at EOG-owned facilities or at third-party facilities, extracting NGLs. NGLs were sold at prevailing market prices, into either local markets or downstream locations. In certain instances, EOG exchanged its NGLs production for purity products received downstream, which were sold at prevailing market prices.
Such federal, state and local permitting and disclosure requirements, operating restrictions, conditions or prohibitions could lead to operational delays and increased operating and compliance costs and, moreover, could delay or effectively prevent the development of crude oil and natural gas from formations which would not be economically viable without the use of hydraulic fracturing.
Such federal, state and local permitting and disclosure requirements, operating restrictions, conditions or prohibitions could lead to operational delays and increased operating and compliance costs and, moreover, could delay or effectively prevent the development of crude oil and natural gas from formations which would not be economically viable without the use of hydraulic fracturing. 11 Compliance with laws and regulations relating to hydraulic fracturing and other aspects of our operations increases EOG's overall cost of business, but has not had, to date, a material adverse effect on EOG's operations, financial condition, results of operations or capital expenditures (whether for environmental control facilities or otherwise).
In 2025, EOG expects to complete approximately 30 net Utica wells. 2 Operations Outside the United States EOG has operations offshore Trinidad and is evaluating additional exploration, development and exploitation opportunities in other select international areas. In addition, EOG is executing an abandonment and reclamation program in Canada. Trinidad.
In 2026, EOG expects to complete approximately 45 net wells across the Powder River Basin and the Williston Basin. 2 Operations Outside the United States EOG has operations offshore Trinidad, onshore Bahrain, and onshore United Arab Emirates, and is evaluating additional exploration, development and exploitation opportunities in those jurisdictions and other select international areas. Trinidad.
Such rules and regulations, among other things, require permits for the drilling of wells, regulate the spacing of wells, prevent the waste of natural gas through restrictions on flaring, require surety bonds for various exploration and production operations and regulate the calculation and disbursement of royalty payments (for federal and state leases), production taxes and ad valorem taxes.
Such rules and regulations, among other things, require permits for the drilling of wells, regulate the spacing of wells, prevent the waste of natural gas through restrictions on flaring, require surety bonds for various exploration and production operations and regulate the calculation and payment of royalty payments (for federal and state leases), production taxes and ad valorem taxes. 7 A portion of EOG's oil and gas leases in New Mexico, North Dakota and Wyoming, as well as in other areas, are granted by the federal government and administered by the Bureau of Land Management (BLM) and/or the Bureau of Indian Affairs (BIA), both federal agencies.
At December 31, 2024, EOG was committed to deliver to multiple parties aggregate fixed quantities of crude oil of 2 MMBbls in 2025, all of which is expected to be sourced from future production of available reserves. In 2024, EOG processed certain of its United States natural gas production, either at EOG-owned facilities or at third-party facilities, extracting NGLs.
At December 31, 2025, EOG was committed to deliver to multiple parties aggregate fixed quantities of crude oil of 24 MMBbls in 2026, 11 MMBbls in 2027 and 4 MMBbls in 2028, all of which is expected to be sourced from future production of available reserves.
From time to time, the U.S. Department of the Interior has also considered limiting or pausing new oil and natural gas leases on federal lands. Any limitation or ban on permitting for oil and gas exploration and production activities on federal lands could have a material and adverse effect on EOG's operations, financial condition and results of operations.
Any limitation or ban on permitting for oil and gas exploration and production activities on federal lands could have a material and adverse effect on EOG's operations, financial condition and results of operations. EOG's interests in offshore United States leases are de minimis.
In addition to the U.S. EPA's rule requiring annual reporting of GHG emissions from covered facilities (which is amended from time to time and under which EOG reports), the U.S. EPA has adopted regulations for certain large sources regulating GHG emissions as pollutants under the federal Clean Air Act. Further, the U.S.
EPA has adopted regulations for certain large sources regulating GHG emissions as pollutants under the federal Clean Air Act. Further, the U.S.
Several fields in the SECC Block, Modified U(a) Block, 4(a) Block and Banyan and Sercan Areas have been developed and are producing natural gas and crude oil and condensate. In 2024, EOG's net production in Trinidad averaged approximately 220 MMcfd of natural gas and approximately 0.8 MBbld of crude oil and condensate.
Several of the fields listed above have been developed and produce natural gas and crude oil and condensate. In 2025, EOG's net production in Trinidad averaged approximately 230 MMcfd of natural gas and approximately 1.4 MBbld of crude oil and condensate.
In 2024, consistent with its diversified marketing strategy, the majority of EOG's United States natural gas production was transported by pipeline to various locations, including Katy, Texas; East Texas; the Agua Dulce Hub in South Texas; the Cheyenne Hub in Weld County, Colorado; and Chicago, Illinois. Remaining natural gas production was sold into local markets.
In 2025, consistent with its diversified marketing strategy, the majority of EOG's United States natural gas production was transported by pipeline to various locations throughout the United States and the Dawn Hub in Ontario. Remaining natural gas production was sold into local markets. Pricing was primarily based on the spot market price at the ultimate sales point.
To foster accountability for conducting operations in a safe manner, EOG's safety performance is also considered in evaluating employee performance and compensation. EOG provides initial, periodic and refresher safety training to employees and contractors. These training programs address various topics, including operating procedures, safe work practices and emergency and incident response procedures.
EOG provides initial, periodic and refresher safety training to employees and contractors. These training programs address various topics, including operating procedures, safe work practices and emergency and incident response procedures. EOG also collects and tracks incident data and metrics to identify trends and implement corrective actions as necessary.
Moreover, for any incident involving EOG's operations which results in negative environmental effects, EOG maintains operators extra expense insurance coverage for obligations, expenses or claims that EOG may incur from such an incident, including obligations, expenses or claims in respect of sudden and accidental seepage and pollution, cleanup and containment, evacuation expenses and control of the well (subject to policy terms and conditions).
EOG also maintains first party property damage insurance that covers damage to EOG's equipment, facilities and structures due to a physical damage event and maintains operators extra expense (OEE) coverage for obligations, expenses or claims that EOG may incur from a control of well incident, including obligations, expenses or claims with respect to a resulting pollution event, including coverage for cleanup and containment (subject to policy terms and conditions).
House and Senate approved a joint resolution of disapproval under the Congressional Review Act to repeal the methane emissions charge, which President Trump is expected to sign into law. In any event, EOG does not expect such annual methane emissions charge would have a material impact on EOG's financial condition, results of operations, capital expenditures or operations.
In any event, EOG does not expect such annual methane emissions charge would have a material impact on EOG's financial condition, results of operations or operations. 9 In addition to the U.S. EPA's rule requiring annual reporting of GHG emissions from covered facilities (which is amended from time to time and under which EOG reports), the U.S.
Major U.S. sales areas accessed by EOG were at various locations along the U.S. Gulf Coast, including Houston and Corpus Christi, Texas; Cushing, Oklahoma; the Permian Basin and the Midwest. In 2024, EOG also sold crude oil at the Port of Corpus Christi for export to foreign destinations.
The majority of EOG's United States crude oil and condensate production was transported by pipeline to downstream markets with the remainder sold into local markets. Major U.S. sales areas accessed by EOG were at various locations along the U.S. Gulf Coast; Cushing, Oklahoma; the Permian Basin; the Northeast; and the Midwest.
Regulations implementing the new royalty rate were finalized in April 2024. 7 BLM and BIA leases contain relatively standardized terms requiring compliance with detailed regulations. Under certain circumstances, the BLM or BIA may require operations on federal leases to be suspended or terminated. Any such suspension or termination could materially and adversely affect EOG's interests on federal lands.
Under certain circumstances, the BLM or BIA may require operations on federal leases to be suspended or terminated. Any such suspension or termination could materially and adversely affect EOG's interests on federal lands. From time to time, the U.S. Department of the Interior has also considered limiting or pausing new oil and natural gas leases on federal lands.
Under environmental laws and regulations, EOG could be required to remove or remediate wastes disposed of or released by prior owners or operators.
In addition, EOG has acquired certain oil and gas properties from third parties whose actions with respect to the management and disposal or release of hydrocarbons or other wastes were not under EOG's control. Under environmental laws and regulations, EOG could be required to remove or remediate wastes disposed of or released by prior owners or operators.
In addition, EOG has developed, and will continue to develop, targets and ambitions related to its environmental initiatives, including, but not limited to, its emissions reduction targets and its ambition to reach net zero Scope 1 and Scope 2 GHG emissions by 2040.
This system calculates emissions based on recognized regulatory methodologies, where applicable, and on commonly accepted engineering practices. In addition, EOG has developed, and will continue to develop, targets and ambitions related to its environmental initiatives, including, but not limited to, its current emissions targets.
EPA to submit a report on the continuing applicability of its endangerment finding for GHGs under the Clean Air Act. 9 At the international level, the U.S., in December 2015, participated in the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change in Paris, France.
EPA's prior scientific assessment of climate change risks. Litigation challenging the rescission is anticipated which may influence the rescission and the U.S. EPA's regulation of GHG emissions going forward. At the international level, the U.S., in December 2015, participated in the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change in Paris, France.
Gulf Coast gas index. In 2024, natural gas volumes from Trinidad were sold to the National Gas Company of Trinidad and Tobago Limited and its subsidiary under two natural gas sales arrangements: (i) a fixed price contract and (ii) a contract based on an escalated floor price which further increases if index prices for certain commodities exceed specified levels.
In 2025, natural gas volumes from Trinidad were sold to the National Gas Company of Trinidad and Tobago Limited and its subsidiary under two natural gas sales arrangements. Crude oil and condensate are sold to both Heritage Petroleum Company Limited and BP Trinidad and Tobago LLC.
The production sharing contracts with the Government of Trinidad and Tobago for the LRL and NCMA 4(a) Blocks were executed on January 29, 2025. Bahrain. In February 2025, a subsidiary of EOG signed an exploration participation agreement with Bapco Energies B.S.C.
In February 2025, a subsidiary of EOG signed an exploration participation agreement with Bapco Energies B.S.C. (Closed) (Bapco) to evaluate a gas exploration prospect in the Kingdom of Bahrain. In August 2025, the government of the Kingdom of Bahrain approved the related concession agreement. As part of the transaction, EOG has a working interest in several producing legacy wells.
In the Powder River Basin, EOG completed 27 net wells in the Niobrara, Mowry, Turner and Parkman formations. In 2025, activity in the Rocky Mountain area is expected to remain flat with plans to complete 30 net wells in the Powder River Basin. Activity in the Other Areas includes EOG's newest play, the Utica play.
In the Rocky Mountain area, EOG completed 22 net wells in 2025 in the Powder River Basin and 12 net wells in the Williston Basin.
Pursuant to the terms of the Paris Agreement, the withdrawal will take effect on January 27, 2026. Nevertheless, state and local officials may continue efforts to uphold the commitments set forth in the international accord. EOG believes that its strategy to continue to improve its emissions performance is important for environmental, operational and economic reasons.
On January 7, 2026, it was announced that the United States will also withdraw from the United Nations Framework Convention on Climate Change. State and local officials may, however, continue efforts to uphold the commitments set forth in the international accord.
Removed
In the Delaware Basin, EOG completed 385 net wells in 2024, primarily in the Wolfcamp, Bone Spring and Leonard plays. The Delaware Basin consists of approximately 4,800 feet of liquids-rich stacked pay potential offering EOG multiple co-development opportunities throughout its 395,000 net acre position.
Added
EOG holds approximately 565,000 net acres in the Eagle Ford play and approximately 160,000 net acres in the Dorado gas play. In 2025, EOG completed 122 net wells in the Eagle Ford play and 27 net wells in the Dorado gas play.
Removed
In 2024, EOG completed 160 net wells in the Eagle Ford play, and 21 net wells in the Dorado gas play. In addition, key gathering, processing and transportation infrastructure was added in order to lower operating costs and increase price realizations.
Added
In 2026, EOG expects to complete approximately 115 net Eagle Ford play wells and 40 net Dorado gas play wells. The Appalachian Basin includes the Utica play where EOG holds approximately 1,100,000 net acres, including 135,000 net mineral acres. In 2025, EOG completed 55 net wells in the Utica play.
Removed
In 2025, EOG expects to complete approximately 120 net Eagle Ford play wells and 25 net Dorado gas play wells, while utilizing new infrastructure that connects the Dorado gas play to the Agua Dulce gas market near Corpus Christi, Texas. Activity in the Rocky Mountain area in 2024 was focused on the Wyoming Powder River Basin.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeSuch rules, regulations, policies and legislation may affect, among other things, (i) permitting for oil and gas drilling on state, tribal and federal lands, (ii) the leasing of state, tribal and federal lands for oil and gas development, (iii) the regulation and disclosure of greenhouse gas (GHG) emissions and/or other climate change-related matters associated with oil and gas operations, (iv) the use of hydraulic fracturing on state, tribal and federal lands, (v) the calculation of royalty payments in respect of oil and gas production from state, tribal and federal lands (including, but not limited to, an increase in applicable royalty percentages), (vi) U.S. federal income tax laws applicable to oil and gas exploration and production companies and (vii) the use of financial derivative instruments to hedge the financial impact of fluctuations in crude oil, NGLs and natural gas prices. 21 Further, such regulatory, legislative and policy changes may, among other things, result in additional permitting and disclosure requirements, additional operating restrictions and/or the imposition of various conditions and restrictions on drilling and completion operations or other aspects of our business, any of which could lead to operational delays, increased operating and compliance costs and/or other impacts on our business and operations and could materially and adversely affect our business, results of operations, financial condition and capital expenditures.
Biggest changeSuch rules, regulations, policies and legislation may affect, among other things, (i) permitting for oil and gas drilling on state, tribal and federal lands, (ii) the leasing of state, tribal and federal lands for oil and gas development, (iii) the regulation and disclosure of greenhouse gas (GHG) emissions and/or other climate change-related matters associated with oil and gas operations, (iv) the use of hydraulic fracturing on state, tribal and federal lands, (v) the calculation of royalty payments in respect of oil and gas production from state, tribal and federal lands (including, but not limited to, applicable royalty percentages), (vi) U.S. federal income tax laws applicable to oil and gas exploration and production companies and (vii) the use of financial derivative instruments to hedge the financial impact of fluctuations in crude oil, NGLs and natural gas prices.
If any of the events or circumstances described below actually occurs, our business, financial condition, results of operations or cash flows could be materially and adversely affected and the trading price of our common stock could decline.
If any of the events or circumstances described below actually occurs, our business, financial condition, results of operations and/or cash flows could be materially and adversely affected and the trading price of our common stock could decline.
If we are unable to obtain water to use in our operations from local sources, we may need to obtain water from sources that are more distant from our drilling sites, resulting in increased costs, which could have a material adverse effect on our financial condition, results of operations and cash flows.
If we are unable to obtain water to use in our operations from local sources, we may need to obtain water from sources that are more distant from our drilling sites, resulting in increased costs, which could have a material and adverse effect on our financial condition, results of operations and cash flows.
If we acquire crude oil, NGLs and natural gas properties, our failure to fully identify existing and potential issues, to accurately estimate reserves, production rates or costs, or to effectively integrate the acquired properties into our operations could materially and adversely affect our business, financial condition and results of operations.
If we acquire crude oil, NGLs or natural gas properties, our failure to fully identify existing and potential issues, to accurately estimate reserves, production rates or costs, or to effectively integrate the acquired properties into our operations could materially and adversely affect our business, financial condition and results of operations.
These risks include, among other risks: • increases in taxes and governmental royalties; • additional and potentially unfamiliar laws and policies governing the operations of foreign-based companies and changes in such laws and policies; • loss of revenue, loss of or damage to equipment, property and other assets and interruption of operations as a result of expropriation, nationalization, acts of terrorism, war, civil unrest and other political risks; • unilateral or forced renegotiation, modification or nullification of existing contracts with governmental entities; • difficulties enforcing our rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations; • competition from companies that have established strategic long-term positions or have strong governmental relationships in the foreign jurisdictions in which we operate; and • currency restrictions or exchange rate fluctuations.
These risks include, among other risks: • increases in taxes and governmental royalties; • additional and potentially unfamiliar laws and policies governing the operations of foreign-based companies and changes in such laws and policies; • loss of revenue, loss of or damage to equipment, property and other assets and interruption of operations as a result of expropriation, nationalization, acts of terrorism, war, civil unrest and other political risks; • unilateral or forced renegotiation, modification or nullification of existing contracts with governmental entities; • difficulties enforcing our rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations; • competition from companies that have established strategic long-term positions or have strong governmental relationships in the foreign jurisdictions in which we operate; and • currency restrictions and exchange rate fluctuations.
Our international operations may also be adversely affected by U.S. laws and policies affecting foreign trade and taxation, including tariffs or trade or other economic sanctions; modifications to, or withdrawal from, international trade treaties; and U.S. laws with respect to participation in boycotts that are not supported by the U.S. government.
Our international operations may also be adversely affected by U.S. laws and policies affecting foreign trade and taxation, including tariffs and trade or other economic sanctions; modifications to, or withdrawal from, international trade treaties; and U.S. laws with respect to participation in boycotts that are not supported by the U.S. government.
Our crude oil, NGLs and natural gas operations and supporting activities and operations are subject to all of the risks associated with exploring and drilling for, and producing, gathering, processing, compressing, storing, transporting and exporting crude oil, NGLs and natural gas, including the risks of: • well blowouts and cratering; • loss of well control; • crude oil spills, natural gas leaks, formation water (i.e., produced water) spills and pipeline ruptures; • pipe failures and casing collapses; • uncontrollable flows of crude oil, natural gas, formation water or drilling fluids; • releases of chemicals, wastes or pollutants; • adverse weather events, such as winter storms, flooding, wildfires, tropical storms and hurricanes, and other natural disasters, which may be exacerbated by climate change; 18 • fires and explosions; • terrorism, vandalism and physical, electronic and cyber breaches and related threats; • formations with abnormal or unexpected pressures; • leaks or spills in connection with, or associated with, the gathering, processing, compression, storage, transportation and export of crude oil, NGLs and natural gas; and • malfunctions of, or damage to, gathering, processing, compression, storage, transportation and export facilities and equipment and other facilities and equipment utilized in support of our crude oil and natural gas operations.
Our crude oil, NGLs and natural gas operations and supporting activities and operations are subject to all of the risks associated with exploring and drilling for, and producing, gathering, processing, compressing, storing, transporting and exporting crude oil, NGLs and natural gas, including the risks of: • well blowouts and cratering; • loss of well control; • crude oil spills, natural gas leaks, formation water (i.e., produced water) spills and pipeline ruptures; • pipe failures and casing collapses; • uncontrollable flows of crude oil, natural gas, formation water or drilling fluids; • releases of chemicals, wastes or pollutants; • adverse weather events, such as winter storms, flooding, wildfires, tropical storms and hurricanes, and other natural disasters, which may be exacerbated by climate change; • fires and explosions; • terrorism, vandalism and physical, electronic and cyber breaches and related threats; • formations with abnormal or unexpected pressures; • leaks or spills in connection with, or associated with, the gathering, processing, compression, storage, transportation and export of crude oil, NGLs and natural gas; and • malfunctions of, or damage to, gathering, processing, compression, storage, transportation and export facilities and equipment and other facilities and equipment utilized in support of our crude oil and natural gas operations.
Lower crude oil, NGLs and natural gas prices, however, reduce our cash flows and could also delay or impair our ability to consummate any planned divestitures. Further, if the condition of the credit and capital markets materially declines, we might not be able to obtain financing on terms we consider acceptable, if at all.
Lower crude oil, NGLs and natural gas prices, however, reduce our cash flows and could also delay or impair our ability to consummate any planned acquisitions or divestitures. Further, if the condition of the credit and capital markets materially declines, we might not be able to obtain financing on terms we consider acceptable, if at all.
For further discussion of the potential impact of such availability-related risks on our financial condition and results of operations, see the discussion in the section above entitled "Risks Related to our Operations." Further, climate change-related developments (such as the climate-related disclosure mandates as referenced above) may result in negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, hydrocarbons.
For further discussion of the potential impact of such availability-related risks on our financial condition and results of operations, see the discussion in the section above entitled "Risks Related to our Operations." 22 Further, climate change-related developments (such as the climate-related disclosure mandates referenced above) may result in negative perceptions of the oil and gas industry and, in turn, reputational risks associated with the exploration for, and production of, hydrocarbons.
A cyber attack directed at, for example, crude oil, NGLs and natural gas distribution systems could (i) damage critical distribution and storage assets or the environment; (ii) disrupt energy supplies and markets, by delaying or preventing delivery of production to markets; and (iii) make it difficult or impossible to accurately account for production and settle transactions. 26 Any such terrorist attack or cyber attack that affects us, our customers, suppliers, or others with whom we do business and/or energy-related assets could have a material adverse effect on our business, including disruption of our operations, damage to our reputation, a loss of counterparty trust, reimbursement or other costs, increased compliance costs, significant litigation exposure and legal liability or regulatory fines, penalties or intervention.
A cyber attack directed at, for example, crude oil, NGLs and natural gas distribution systems could (i) damage critical distribution and storage assets or the environment; (ii) disrupt energy supplies and markets, by delaying or preventing delivery of production to markets; and (iii) make it difficult or impossible to accurately account for production and settle transactions. 27 Any such terrorist attack or cyber attack that affects us, our customers, suppliers, or others with whom we do business and/or energy-related assets could have a material adverse effect on our business, including disruption of our operations, damage to our reputation, a loss of counterparty trust, reimbursement or other costs, increased compliance costs, significant litigation exposure and legal liability or regulatory fines, penalties or intervention.
For example, certain financial institutions, investment advisors and sovereign wealth, pension and endowment funds, in response to concerns related to climate change and the requests and other influence of environmental groups and similar stakeholders, have elected to shift some or all of their investments and financing away from oil and gas-related sectors.
For example, certain financial institutions, investment advisors and sovereign wealth, pension and endowment funds, in response to concerns related to climate change and the requests and other influence of environmental groups and similar stakeholders, have from time to time elected to shift some or all of their investments and financing away from oil and gas-related sectors.
For additional discussion regarding the regulation of GHG emissions and climate change generally, see ITEM 1, Business – Regulation. Our initiatives, targets and ambitions related to emissions and other environmental or safety-related matters, including our related public statements and disclosures, are subject to various factors, contingencies and uncertainties and may expose us to certain risks.
For additional discussion regarding the regulation of GHG emissions and climate change generally, see ITEM 1, Business – Regulation. 24 Our initiatives, targets and ambitions related to emissions and other environmental or safety-related matters, including our related public statements and disclosures, are subject to various factors, contingencies and uncertainties and may expose us to certain risks.
This focus, together with changes in consumer and industrial/commercial behavior, preferences and attitudes with respect to the generation and consumption of energy, the use of crude oil, NGLs and natural gas and the use of products manufactured with, or powered by, crude oil, NGLs and natural gas, may result in (i) the enactment of climate change-related regulations, policies and initiatives (at the government, corporate and/or investor community levels), including alternative energy requirements, energy conservation measures and emissions-related legislation, (ii) technological advances with respect to the generation, transmission, storage and consumption of energy (e.g., wind, solar and hydrogen power, smart grid technology and battery technology) and (iii) increased availability of, and increased consumer and industrial/commercial demand for, non-hydrocarbon energy sources (e.g., alternative energy sources) and products manufactured with, or powered by, non-hydrocarbon sources (e.g., electric vehicles and renewable residential and commercial power supplies).
This focus, together with changes in consumer and industrial/commercial behavior, preferences and attitudes with respect to the generation and consumption of energy, the use of crude oil, NGLs and natural gas and the use of products manufactured with, or powered by, crude oil, NGLs and natural gas, may result in (i) the enactment of climate change-related regulations, policies and initiatives (at the government, corporate and/or investor community levels), including alternative energy requirements, energy conservation measures and emissions-related legislation, (ii) technological advances with respect to the generation, transmission, storage and consumption of energy (e.g., wind, solar and hydrogen power, smart grid technology and battery technology) and (iii) increased availability of, and increased consumer and industrial/commercial demand for, non-hydrocarbon energy sources (e.g., alternative energy sources. such as renewable energy sources) and products manufactured with, or powered by, non-hydrocarbon sources (e.g., electric vehicles and renewable residential and commercial power supplies).
The potential for such security threats has subjected our operations to increased risks that could have a material and adverse effect on our business. 25 We rely extensively on information technology systems, including internally developed software, data hosting platforms, real-time data acquisition systems, third-party software, cloud services and other internally or externally hosted hardware and software platforms, to (i) estimate our oil and gas reserves, (ii) process and record financial and operating data, (iii) process and analyze all stages of our business operations, including exploration, drilling, completions, production, gathering and processing, transportation, pipelines and other related activities and (iv) communicate with, and make payments to, our employees and vendors, suppliers and other third parties.
The potential for such security threats has subjected our operations to increased risks that could have a material and adverse effect on our business. 26 We rely extensively on information technology systems, including internally developed software, data hosting platforms, real-time data acquisition systems, third-party software, cloud services and other internally or externally hosted hardware and software platforms, to (i) estimate our oil and gas reserves, (ii) process and record financial and operating data, (iii) process and analyze all stages of our business operations, including exploration, drilling, completions, production, gathering and processing, transportation, pipelines and other related activities and (iv) communicate with, and make payments to, our employees and vendors, suppliers and other third parties.
Additional financial institutions and other investors may elect to do likewise or may impose more stringent conditions with respect to investments in, and financing of, oil and gas-related sectors. As a result, fewer financial institutions and other investors may be willing to invest in, and provide capital to, companies in the oil and gas sector.
Additional financial institutions and other investors may, in the future, elect to do likewise or may impose more stringent conditions with respect to investments in, and financing of, oil and gas-related sectors. As a result, fewer financial institutions and other investors may be willing to invest in, and provide capital to, companies in the oil and gas sector.
Maintaining our production of crude oil, NGLs and natural gas at, or increasing our production from, current level, is, therefore, highly dependent upon our level of success in acquiring or finding additional reserves, which may be adversely impacted by bans or restrictions on leasing and/or drilling.
Maintaining our production of crude oil, NGLs and natural gas at, or increasing our production from, current levels, is, therefore, highly dependent upon our level of success in acquiring or finding additional reserves, which may be adversely impacted by bans or restrictions on leasing and/or drilling.
As a consequence, we may be at a competitive disadvantage in certain respects, such as in bidding for drilling rights or in accessing necessary services, facilities, equipment, materials and personnel.
As a consequence, we may be at a competitive disadvantage in certain respects, such as in bidding for drilling rights or in accessing and retaining necessary services, facilities, equipment, materials and personnel.
We have various customers for the crude oil, natural gas and related commodities that we produce as well as various other contractual counterparties, including several financial institutions and affiliates of financial institutions.
We have various customers for the crude oil, natural gas and related commodities that we produce as well as various other contractual counterparties, including financial institutions and affiliates of financial institutions.
To the extent that we engage in hedging activities to protect ourselves against commodity price declines, we may be prevented from fully realizing the benefits of increases in crude oil, NGLs and natural gas prices above the prices established by our hedging contracts. Further, a majority of our forecasted production for 2025 is subject to fluctuating market prices.
To the extent that we engage in hedging activities to protect ourselves against commodity price declines, we may be prevented from fully realizing the benefits of increases in crude oil, NGLs and natural gas prices above the prices established by our hedging contracts. Further, a majority of our forecasted production for 2026 is subject to fluctuating market prices.
Further, no accurate prediction can be made as to what the specific provisions or impact on EOG of any such enacted legislation would be. 24 In addition, certain countries, including countries where EOG currently has operations or may in the future have operations, have implemented (via legislation), or may implement, a global minimum tax (GMT).
Further, no accurate prediction can be made as to what the specific provisions or impact on EOG of any such enacted legislation would be. 25 In addition, certain countries, including countries where EOG currently has operations or may in the future have operations, have implemented (via legislation), or may implement, a global minimum tax (GMT).
In addition, our hedging activities may expose us to the risk of financial loss in certain circumstances, including instances in which the counterparties to our hedging contracts fail to perform under the contracts. The inability of our customers and other contractual counterparties to satisfy their obligations to us may have a material and adverse effect on us.
In addition, our hedging activities may expose us to the risk of financial loss in certain circumstances, including instances in which the counterparties to our financial derivative instruments fail to perform under the contracts. The inability of our customers and other contractual counterparties to satisfy their obligations to us may have a material and adverse effect on us.
While such GMT legislation has had, to date, no material impact on EOG, no accurate prediction can be made as to (i) which additional countries or jurisdictions will participate and enact GMT legislation and (ii) what the specific provisions or impact on EOG of any such enacted GMT legislation would be.
While such GMT legislation has had, to date, no material impact on EOG, no accurate prediction can be made as to (i) which additional countries or jurisdictions will participate and enact GMT legislation and (ii) what the impact on EOG of any such enacted GMT legislation would be.
As a result, the trading price of our common stock may be materially and adversely affected. 14 Lower commodity prices can also reduce the amount of crude oil, NGLs and natural gas that we can produce economically.
As a result, the trading price of our common stock may be materially and adversely affected. 15 Lower commodity prices can also reduce the amount of crude oil, NGLs and natural gas that we can produce economically.
To the extent we do not hedge our production volumes for 2025 and beyond, we may be materially and adversely impacted by any declines in commodity prices, which may result in lower net cash provided by our operating activities.
To the extent we do not hedge our production volumes for 2026 and beyond, we may be materially and adversely impacted by any declines in commodity prices, which may result in lower net cash provided by our operating activities.
Further, the regulatory environment could change in ways that we cannot predict and that might substantially increase our costs of compliance and/or adversely affect our business and operations and, in turn, materially and adversely affect our results of operations, financial condition and capital expenditures.
Further, the regulatory environment could change in ways that we cannot predict and that might substantially increase our costs of compliance and/or adversely affect our business and operations and, in turn, materially and adversely affect our results of operations, financial condition, cash flows and capital expenditures.
Although we perform reviews of properties to be acquired in a manner that we believe is duly diligent and consistent with industry practices, reviews of records and properties may not necessarily reveal existing or potential issues (such as title defects or environmental issues), nor may they permit us to become sufficiently familiar with the properties in order to fully assess their deficiencies and potential.
Although we perform reviews of properties to be acquired in a manner that we believe are diligent and consistent with industry practices, reviews of records and properties may not necessarily reveal existing or potential issues (such as title defects or environmental issues), nor may they permit us to become sufficiently familiar with the properties in order to fully assess their deficiencies and potential.
We intend to finance our capital expenditures primarily through our cash flows from operations and cash on hand and, if and as necessary, commercial paper borrowings, bank borrowings, borrowings under our revolving credit facility and public and private debt and equity offerings.
We intend to fund our capital expenditures primarily through our cash flows from operations and cash on hand and, if and as necessary, commercial paper borrowings, bank borrowings, borrowings under our revolving credit facility and public and private debt and equity offerings.
Regulatory, legislative and policy changes may materially and adversely affect the oil and gas exploration and production industry. New or revised rules, regulations and policies may be issued, and new legislation may be proposed, that could impact the oil and gas exploration and production industry.
Regulatory, legislative and policy changes may materially and adversely affect the oil and gas exploration and production industry. New or revised rules, regulations and policies may be issued, and new legislation may be enacted, that could impact the oil and gas exploration and production industry.
In addition, an acquisition may have a material and adverse effect on our financial condition and results of operations, particularly during the periods in which the operations of the acquired properties are being integrated into our ongoing operations or if we are unable to effectively integrate the acquired properties into our ongoing operations.
In addition, an acquisition may have a material and adverse effect on our financial condition and results of operations, particularly during the periods in which the operations of the acquired properties are being integrated into our ongoing operations or if we are unable to effectively integrate the acquired properties into our ongoing operations or achieve anticipated synergies.
Among the interrelated factors that can or could cause these price fluctuations are: • domestic and worldwide supplies of, and consumer and industrial/commercial demand for, crude oil, NGLs and natural gas; • domestic and international drilling activity; • the actions of other crude oil producing and exporting nations, including the Organization of Petroleum Exporting Countries; • worldwide economic conditions, geopolitical factors and political conditions, including, but not limited to, the imposition of tariffs or trade or other economic sanctions and political instability or armed conflict in oil and gas producing regions; • the availability, proximity and capacity of appropriate transportation, gathering, processing, compression, storage, refining, liquefaction and export facilities; • the price and availability of, and demand for, competing energy sources, including alternative energy sources; • the effect of worldwide energy conservation measures, alternative fuel requirements and climate change-related legislation, policies, initiatives and developments; • technological advances and consumer and industrial/commercial behavior, preferences and attitudes, in each case affecting energy generation, transmission, storage and consumption; • the nature and extent of governmental regulation, including environmental and other climate change-related regulation, regulation of financial and other derivative transactions and hedging activities, tax laws and regulations and laws and regulations with respect to the import and export of crude oil, NGLs, and natural gas and related commodities; • the level and effect of trading in commodity futures markets, including trading by commodity price speculators and others; • natural disasters, weather conditions and changes in weather patterns, each of which may be exacerbated by climate change; and • the economic and financial impact of epidemics, pandemics or other public health issues, such as the COVID-19 pandemic.
Among the interrelated factors that can or could cause these price fluctuations are: • domestic and worldwide supplies of, and consumer and industrial/commercial demand for, crude oil, NGLs and natural gas; • domestic and international drilling activity; • the actions of crude oil producing and exporting nations, including the Organization of Petroleum Exporting Countries; • worldwide economic conditions, geopolitical factors and political conditions, including, but not limited to, tariffs; trade policies, trade agreements and trade restrictions; other economic sanctions or barriers; and political instability or armed conflicts in oil and gas producing regions; • the availability, proximity and capacity of appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities; • the price and availability of, and demand for, competing energy sources, including alternative energy sources; • the effect of worldwide energy conservation measures, alternative fuel requirements and climate change-related legislation, policies, initiatives and developments; • technological advances and consumer and industrial/commercial behavior, preferences and attitudes, in each case affecting energy generation, transmission, storage and consumption; • the nature and extent of governmental regulation, including environmental and other climate change-related regulation, regulation of financial and other derivative transactions and hedging activities, tax laws and regulations and laws and regulations with respect to the import and export of crude oil, NGLs, and natural gas and related commodities; • the level and effect of trading in commodity futures markets, including trading by commodity price speculators and others; • natural disasters, weather conditions and changes in weather patterns, each of which may be exacerbated by climate change; and • the economic and financial impact of epidemics, pandemics or other public health issues.
From time to time, we seek to acquire crude oil and natural gas properties.
From time to time, we acquire crude oil and natural gas properties.
In addition, weakness and/or volatility in domestic and global financial markets or economic conditions or a depressed commodity price environment may increase the interest rates that lenders and commercial paper investors require us to pay or adversely affect our ability to finance our capital expenditures through debt or equity offerings or other borrowings.
In addition, weakness and/or volatility in domestic and global financial markets or economic conditions or a depressed commodity price environment may increase the interest rates that lenders and commercial paper investors require us to pay or otherwise adversely affect our ability to finance our capital expenditures through debt or equity offerings or other financing transactions.
The above-described factors and the volatility of commodity prices make it difficult to predict crude oil, NGLs and natural gas prices in 2025 and thereafter.
The above-described factors and the volatility of commodity prices make it difficult to predict crude oil, NGLs and natural gas prices in 2026 and thereafter.
Also, while there is rapid evolution taking place in the technologies we may be able to use to reduce emissions and achieve and maintain our targets and net-zero ambition, the timing, cost and anticipated success of these technologies may change.
Also, while there is rapid evolution taking place in the technologies we may be able to use to reduce emissions and achieve and maintain our targets, the timing, cost and anticipated success of these technologies may change.
If our related initiatives, targets and ambitions do not meet our investors' or other stakeholders' evolving expectations and standards, investment in our stock may be viewed as less attractive and our reputation and contractual, employment and other business relationships may be adversely impacted.
If our related initiatives, targets and ambitions do not meet our investors' or other stakeholders' evolving expectations and standards, investment in our stock may be viewed as less attractive and our reputation, relationships with investors and other business relationships may be adversely impacted.
We use financial derivative instruments (primarily financial basis swap, price swap, option, swaption and collar contracts) to hedge the impact of fluctuations in crude oil, NGLs and natural gas prices on our results of operations and cash flows.
We use financial derivative instruments (primarily financial basis swap, price swap, option, swaption and collar contracts) and, in certain cases, fixed price physical sales contracts to hedge the impact of fluctuations in crude oil, NGLs and natural gas prices on our results of operations and cash flows.
Regular and special dividends on our common stock and repurchases of our common stock are authorized and determined by our Board in its sole discretion and depend upon a number of factors, including: • cash available for dividends; • cash available for share repurchases; • our results of operations and anticipated future results of operations; 16 • our financial condition, especially in relation to the anticipated future capital expenditures and other commitments required to conduct our operations and carry out our business strategy; • our operating costs; • any contractual restrictions or statutory/legal restrictions; • the levels of dividends paid by comparable companies; and • other factors our Board deems relevant.
Regular and special dividends on our common stock and repurchases of our common stock are authorized and determined by our Board in its sole discretion and depend upon a number of factors and considerations, including: • cash available for dividends or share repurchases; • our results of operations and anticipated future results of operations; • our financial condition, especially in relation to the anticipated future capital expenditures and other commitments requiring cash necessary to conduct our operations and carry out our business strategy; • our operating costs; • the levels of dividends paid by comparable companies; and • other factors our Board deems relevant.
In addition, our larger competitors may have a competitive advantage when responding to factors that affect demand for crude oil, NGLs and natural gas, such as changing worldwide prices and levels of production and the cost and availability of alternative fuels.
In addition, our larger competitors may have a competitive advantage when responding to factors that affect demand for crude oil, NGLs and natural gas, such as changing worldwide prices and levels of production and the cost and availability of alternative fuels. We also face competition from alternative energy sources, such as renewable energy sources.
A material reduction in capital available to the oil and gas sector could make it more difficult (e.g., due to a lack of investor interest in our debt or equity securities) and/or more costly (e.g., due to higher interest rates on our debt securities or other borrowings) to secure funding for our operations, which, in turn, could adversely affect our ability to successfully carry out our business strategy and have a material and adverse effect on our business, financial condition and operations.
A material reduction in capital available to the oil and gas sector could make it more difficult (e.g., due to a lack of investor interest in our debt or equity securities) and/or more costly (e.g., due to higher interest rates on our debt securities or other borrowings) to secure funding for our operations, which, in turn, could adversely affect our ability to successfully carry out our business strategy and could have a material and adverse effect on our business, financial condition and operations. 16 Our continued initiatives to increase operating efficiencies may not be successful in offsetting any future inflationary pressures on our operating costs and capital expenditures.
EPA) has issued regulations relating to hydraulic fracturing and there have been various other proposals to regulate hydraulic fracturing at the federal level.
The U.S. Environmental Protection Agency (U.S. EPA) has, however, issued certain regulations relating to hydraulic fracturing and there have been various other proposals to regulate hydraulic fracturing at the federal level.
In the future, we may not be able to maintain or obtain insurance of the type and amount we desire at reasonable rates. As a result of market conditions, premiums, retentions and deductibles for our insurance policies will change over time and could escalate. In addition, some forms of insurance may become unavailable or unavailable on economically acceptable terms.
Further, in the future, we may not be able to maintain or obtain insurance of the type and amount we desire at reasonable rates or at all. As a result of market conditions, premiums, retentions and deductibles for our insurance policies will change over time and could increase.
Moreover, our customers and other contractual counterparties may be unable to satisfy their contractual obligations to us for reasons unrelated to these conditions and factors, such as (i) the unavailability of required facilities or equipment due to mechanical failure or market conditions or (ii) financial, operational or strategic actions taken by the customer or counterparty that adversely impact its financial condition, results of operations and cash flows and, in turn, its ability to satisfy its contractual obligations to us.
Domestic and global economic conditions, including the financial condition of financial institutions generally, may adversely affect the ability of our customers and other contractual counterparties to pay amounts owed to us from time to time and to otherwise satisfy their contractual obligations to us, as well as their ability to access the credit and capital markets for such purposes. 18 Moreover, our customers and other contractual counterparties may be unable to satisfy their contractual obligations to us for reasons unrelated to these conditions and factors, such as (i) the unavailability of required facilities or equipment due to mechanical failure or market conditions or (ii) financial, operational or strategic actions taken by the customer or counterparty that adversely impact its financial condition, results of operations and cash flows and, in turn, its ability to satisfy its contractual obligations to us.
Furthermore, if a customer is unable to satisfy its contractual obligation to purchase crude oil, natural gas or related commodities from us, we may be unable to sell such production to another customer on terms we consider acceptable, if at all, due to the geographic location of such production; the availability, proximity and capacity of appropriate gathering, processing, compression, storage, transportation, export, liquefaction and refining facilities; or market or other factors and conditions. 17 The inability of our customers and other contractual counterparties to pay amounts owed to us and to otherwise satisfy their contractual obligations to us may materially and adversely affect our business, financial condition, results of operations and cash flows.
Furthermore, if a customer is unable to satisfy its contractual obligation to purchase crude oil, natural gas or related commodities from us, we may be unable to sell such production to another customer on terms we consider acceptable, if at all, due to the geographic location of such production; the availability, proximity and capacity of appropriate gathering, processing, compression, storage, transportation, export, liquefaction and refining facilities; or market or other factors and conditions.
Any significant change in market or other conditions affecting gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment or the availability of these facilities and equipment, including due to our failure or inability to obtain access to these facilities and equipment on terms acceptable to us or at all, could materially and adversely affect our business and, in turn, our financial condition and results of operations. 19 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.
Any significant change in market or other conditions affecting gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment or the availability of these facilities and equipment, including due to our failure or inability to obtain access to these facilities and equipment on terms acceptable to us or at all, could materially and adversely affect our business and, in turn, our financial condition and results of operations.
Our public disclosures and other statements related to these initiatives, targets and ambitions reflect our plans and expectations at the time such disclosures and statements are made and are not a guarantee the initiatives will be successfully developed, implemented and carried out or that the targets or ambitions will be achieved or achieved on the anticipated timelines or that, if achieved, will be sustained. 23 Our ability to achieve and, if achieved, sustain these targets and ambitions is subject to numerous factors and contingencies, some of which are outside of our control and include (among other commercial, operational, technological, financial, legal and regulatory factors and contingencies) evolving government regulation, the pace of changes in technology, the successful development and deployment of existing or new technologies and business solutions on a commercial scale, the availability, timing and cost of necessary equipment, goods, services and personnel, and the availability of requisite financing and federal and state incentive programs.
Our ability to achieve and, if achieved, sustain these targets and ambitions is subject to numerous factors and contingencies, some of which are outside of our control and include (among other commercial, operational, technological, financial, legal and regulatory factors and contingencies) evolving government regulation, the pace of changes in technology, the successful development and deployment of existing or new technologies and business solutions on a commercial scale, the availability, timing and cost of necessary equipment, goods, services and personnel, and the availability of requisite financing and federal and state incentive programs.
Also, our continuing efforts to research, establish, accomplish and accurately report on our emissions and other environmental or safety-related initiatives, targets and ambitions may create additional operational risks and expenses and expose us to reputational, legal and other risks. In addition, in recent years there has been increased investor and regulatory focus on environmental and social matters.
Also, our continuing efforts to research, establish, accomplish and accurately report on our emissions and other environmental or safety-related initiatives, targets and ambitions may create additional operational risks and expenses and expose us to reputational, legal and other risks.
Our ability to sell and deliver our crude oil, NGLs and natural gas production could be materially and adversely affected if adequate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment are unavailable.
In addition, some forms of insurance may become unavailable or unavailable on economically acceptable terms. 20 Our ability to sell and deliver our crude oil, NGLs and natural gas production could be materially and adversely affected if adequate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment are unavailable.
These uncertainties, evolving practices and regulations and challenges around emissions measurement and reporting and emissions reduction technologies may result in our revising our existing targets, revising our ambition and/or setting new targets, as well as how we define and work to achieve our net-zero ambition.
These uncertainties, evolving practices and regulations and challenges around emissions measurement and reporting and emissions reduction technologies may result in our revising our existing targets and/or setting new targets.
It requires interpretations of available technical data and various assumptions, including assumptions relating to economic factors, made by our management. Any significant inaccuracies in these interpretations or assumptions could cause the reported quantities of our reserves and future net cash flows from such reserves to be overstated or understated.
Any significant inaccuracies in these interpretations or assumptions could cause the reported quantities of our reserves and future net cash flows from such reserves to be overstated or understated.
To the extent we are unsuccessful in acquiring or finding additional reserves, our future cash flows and results of operations and, in turn, the trading price of our common stock could be materially and adversely affected.
To the extent we are unsuccessful in acquiring or finding additional reserves, our future cash flows and results of operations and, in turn, the trading price of our common stock could be materially and adversely affected. 17 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.
This means a target that we have achieved and maintained in the past could be more challenging to meet and sustain if our emissions inventory changes.
This means our current targets using calculations and forecasts of our current emissions inventory could be more challenging to meet and sustain if our emissions inventory expands due to evolving practices and/or new regulations. This means a target that we have achieved and maintained in the past could be more challenging to meet and sustain if our emissions inventory changes.
Our crude oil, NGLs and natural gas operations and supporting activities and operations involve many risks and expose us to potential losses and liabilities, and insurance may not fully protect us against these risks and potential losses and liabilities.
For related discussion of the risks and potential losses and liabilities inherent in our crude oil and natural gas operations generally, see the immediately following risk factor. 19 Our crude oil, NGLs and natural gas operations and supporting activities and operations involve many risks and expose us to potential losses and liabilities, and insurance may not fully protect us against these risks and potential losses and liabilities.
We cannot provide any assurance that our current credit ratings will remain in effect for any given period of time or that our credit ratings will be raised in the future, nor can we provide any assurance that any of our credit ratings will not be lowered. 15 In addition, companies in the oil and gas sector may be exposed to increasing reputational risks and, in turn, certain financial risks.
We cannot provide any assurance that our current credit ratings will remain in effect for any given period of time or that our credit ratings will be raised in the future, nor can we provide any assurance that any of our credit ratings will not be lowered.
We have developed, and will continue to develop, targets and ambitions related to our environmental and safety initiatives, including, but not limited to, our emissions reduction targets and our ambition to reach net-zero Scope 1 and Scope 2 GHG emissions by 2040.
We have developed, and will continue to develop, targets and ambitions related to our environmental and safety initiatives, including, but not limited to, our current emissions targets.
We also face competition from alternative energy sources, such as renewable energy sources. 20 Risks Related to Sustainability, Regulatory and Legal Matters Developments and concerns related to climate change may have a material and adverse effect on us. Governmental and regulatory bodies, investors, consumers, industry and other stakeholders have been increasingly focused on climate change matters in recent years.
Risks Related to Sustainability, Regulatory and Legal Matters Developments and concerns related to climate change may have a material and adverse effect on us. Governmental and regulatory bodies, investors, consumers, industry and other stakeholders have been focused on climate change matters in recent years. For example, (i) in March 2024, the U.S.
The UAE Consensus is an assessment of members’ collective efforts and achievements to reduce GHG emissions and adapt to the impacts of climate change. The UAE Consensus calls on parties, including the U.S., to contribute to the transitioning away from fossil fuels, reduce methane emissions, and increase renewable energy capacity, among other things, to achieve net zero emissions by 2050.
At the international level, the Paris Agreement calls for nations to undertake efforts with respect to global temperatures and GHG emissions and the UAE Consensus calls on parties, including the U.S., to contribute to the transitioning away from fossil fuels, reduce methane emissions, and increase renewable energy capacity, among other things, to achieve net zero emissions by 2050.
Lastly, as noted above, the SEC, in March 2024, finalized extensive climate-related disclosure rules that require U.S. public companies to significantly expand the climate-related disclosures in their SEC filings (although the new rules have been stayed pending judicial review and the SEC has requested the court to pause further judicial proceedings, pending the SEC's determination of the appropriate next steps).
Lastly, as noted above, the SEC, in March 2024, finalized extensive climate-related disclosure rules that would require U.S. public companies to significantly expand the climate-related disclosures in their SEC filings (although these rules have been stayed in abeyance by the U.S.
In addition, there are numerous uncertainties inherent in estimating quantities of crude oil, NGLs and natural gas reserves (as discussed further above), actual future production rates and associated costs with respect to acquired properties. Actual reserves, production rates and costs may vary substantially from those assumed in our estimates.
Even when issues with a property are identified, we often may assume environmental and other risks and liabilities in connection with acquired properties pursuant to the acquisition agreements. 21 In addition, there are numerous uncertainties inherent in estimating quantities of crude oil, NGLs and natural gas reserves (as discussed further above), actual future production rates and associated costs with respect to acquired properties.
However, there can be no assurance that such efforts will offset, largely or at all, the impacts of any future inflationary pressures on our operating costs and capital expenditures and, in turn, our cash flows and results of operations.
However, such efforts may not be successful or may not be sufficient to offset the impacts of any future inflationary pressures (such as from tariffs, other trade barriers or other macroeconomic factors) on our operating costs and capital expenditures and, in turn, on our cash flows and results of operations.
Such reserve write-downs and asset impairments can materially and adversely affect our results of operations and financial position and, in turn, the trading price of our common stock. Our cost-mitigation initiatives and actions may not offset, largely or at all, the impacts of inflationary pressures on our operating costs and capital expenditures.
Such reserve write-downs and asset impairments can materially and adversely affect our results of operations and financial position and, in turn, the trading price of our common stock. We have substantial capital requirements, and we may be unable to obtain needed financing on satisfactory terms, if at all.
The regulation of hydraulic fracturing is primarily conducted at the state and local level through permitting and other compliance requirements and, further, some state and local governments have imposed or have considered imposing various conditions and restrictions on drilling and completion operations. The U.S. Environmental Protection Agency (U.S.
Changes in, or additions to, these regulations, could lead to increased operating and compliance costs and, in turn, materially and adversely affect our business, results of operations, financial condition and capital expenditures. 23 The regulation of hydraulic fracturing is primarily conducted at the state and local level through permitting and other compliance requirements and, further, some state and local governments have imposed or have considered imposing various conditions and restrictions on drilling and completions operations.
In addition, our failure to properly operate a CCS project could put at risk certain governmental tax credits and potentially expose us to commercial, legal, reputational and other risks. Further, as both emissions sources and emissions measurements and related technologies, regulations, protocols and methodologies continue to evolve, the emissions that will be included in our emissions inventory may change.
As both emissions sources and emissions measurements and related technologies, regulations, protocols and methodologies continue to evolve, the emissions that will be included in our emissions inventory may change.
To the extent the rules are implemented, we could incur increased costs related to the assessment and disclosure of climate-related information.
Court of Appeals for the Eighth Circuit until such time as the SEC reconsiders the challenged rules by notice-and-comment rulemaking or renews its defense of the rules). To the extent the rules are implemented, we could incur increased costs related to the assessment and disclosure of climate-related information.
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. Estimating quantities of crude oil, NGLs and natural gas reserves and the future net cash flows from such reserves is a complex, inexact process.
Estimating quantities of crude oil, NGLs and natural gas reserves and the future net cash flows from such reserves is a complex, inexact process. It requires interpretations of available technical data and various assumptions, including assumptions relating to economic factors, made by our management.
In addition to climate change, there has been increased investor and regulatory focus on topics such as human rights and human capital management in companies' own operations as well as across their supply chains.
In addition, from time to time there has been particular investor and regulatory focus on environmental and social matters, including, in addition to climate change, human rights and human capital management matters.
We have undertaken, and plan to continue with, certain initiatives and actions (such as agreements with service providers to secure the costs and availability of services) to mitigate any future inflationary pressures (such as from tariffs).
In addition, from time to time (when available and advantageous), we enter into agreements with service providers to secure the costs and availability of certain drilling and completions services we utilize as part of our operations. We plan to continue these initiatives and actions.
Domestic and global economic conditions, including the financial condition of financial institutions generally, may adversely affect the ability of our customers and other contractual counterparties to pay amounts owed to us from time to time and to otherwise satisfy their contractual obligations to us, as well as their ability to access the credit and capital markets for such purposes.
The inability of our customers and other contractual counterparties to pay amounts owed to us and/or to otherwise satisfy their contractual obligations to us may materially and adversely affect our business, financial condition, results of operations and cash flows.
Securities and Exchange Commission (SEC) finalized extensive climate-related disclosure rules that require U.S. public companies to significantly expand the climate-related disclosures in their SEC filings (although the new rules have been stayed pending judicial review and the SEC has requested the court to pause further judicial proceedings, pending the SEC's determination of the appropriate next steps), (ii) in September 2023, California passed climate-related disclosure mandates which are broader than the SEC's final rules and (iii) in November 2023, the European Union approved methane emissions limits on crude oil and natural gas imports beginning in 2030.
Court of Appeals for the Eighth Circuit until such time as the SEC reconsiders the challenged rules by notice-and-comment rulemaking or renews its defense of the rules), (ii) in September 2023, California passed climate-related disclosure mandates which are broader than the SEC's final rules and (iii) in November 2023, the European Union approved methane emissions limits on crude oil and natural gas imports beginning in 2030.
Changes in, or additions to, these regulations, could lead to increased operating and compliance costs and, in turn, materially and adversely affect our business, results of operations, financial condition and capital expenditures.
Further, such regulatory, legislative and policy changes may, among other things, result in additional permitting and disclosure requirements, additional operating restrictions and/or the imposition of various conditions and restrictions on drilling and completions operations or other aspects of our business, any of which could lead to operational delays, increased operating and compliance costs and/or other impacts on our business and operations and could materially and adversely affect our business, results of operations, financial condition and capital expenditures.
See also the risk factor below regarding the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to regulation of financial derivative transactions and entities (such as EOG) that participate in such transactions. 22 Regulations, government policies and government and corporate initiatives relating to greenhouse gas emissions and climate change could have a significant impact on our operations and we could incur significant cost in the future to comply.
Regulations, government policies and government and corporate initiatives relating to greenhouse gas emissions and climate change could have a significant impact on our operations and we could incur significant cost in the future to comply. Local, state, federal and international regulatory bodies have been focused on GHG emissions and climate change issues in recent years.
For additional discussion, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations – Overview – Recent Developments. We have substantial capital requirements, and we may be unable to obtain needed financing on satisfactory terms, if at all.
For additional discussion, see ITEM 7, Management's Discussion and Analysis of Financial Condition and Results of Operations – Overview – Recent Developments. 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.
In January 2025, the United States submitted formal notification to the United Nations that it intends to withdraw from the Paris Agreement. Pursuant to the terms of the Paris Agreement, the withdrawal will take effect on January 27, 2026. Nevertheless, many state and local officials may continue efforts to uphold the commitments set forth in the international accord.
State and local officials may, however, continue efforts to uphold the commitments set forth in the international accord.
Removed
Beginning in the second half of 2021 and continuing, to a lesser degree, through the first quarter of 2023, we, similar to other companies in our industry, experienced inflationary pressures on our operating costs and capital expenditures - namely the costs of fuel, steel (i.e., wellbore tubulars and facilities manufactured using steel), labor and drilling and completion services.
Added
In addition, companies in the oil and gas sector may be exposed to reputational risks and, in turn, certain financial risks.
Removed
Such inflationary pressures on our operating costs and capital expenditures impacted our cash flows and results of operations during these periods.
Added
We have undertaken (and continue to undertake) initiatives to increase our drilling, completions and operating efficiencies and improve the performance of our wells. Such initiatives include (among others): (i) our downhole drilling motor program; (ii) enhanced techniques for completing our wells; (iii) drilling extended laterals; and (iv) our self-sourced sand program.
Removed
While such inflationary pressures diminished beginning in the second quarter of 2023 and throughout fiscal year 2024 (and, in certain instances, EOG has seen a decline in prices), the market for such materials, services and labor continues to fluctuate and, as a result, the timing and impact of any price changes on our future operating costs and capital expenditures is uncertain.
Added
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.
Removed
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 considerations.
Added
Actual reserves, production rates and costs may vary substantially from those assumed in our estimates.

… 17 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeEOG's cybersecurity team leadership, Senior Vice President and Chief Information and Technology Officer and other members of senior management are responsible for the day-to-day management of cybersecurity risks and cybersecurity leadership. Such senior management team regularly reports to EOG's Audit Committee and Board of Directors (Board) regarding cybersecurity matters, including the assessments performed regarding EOG's cybersecurity technologies, controls and procedures.
Biggest changeEOG's cybersecurity team leadership, Chief Information and Technology Officer and other members of senior management are responsible for the day-to-day management of cybersecurity risks and cybersecurity leadership. Such senior management team regularly reports to EOG's Audit Committee and Board of Directors (Board) regarding cybersecurity matters, including the assessments performed regarding EOG's cybersecurity technologies, controls and procedures.
EOG focuses on building cybersecurity awareness with its employees and other end-users through training and security exercises and communicates EOG's expectations of employees and contractors with respect to cybersecurity matters via EOG's Codes of Business Conduct and Ethics. 27 EOG's dedicated, in-house cybersecurity team, which is responsible for EOG's cybersecurity strategy and planning, oversees such efforts, with assistance from external threat analysts, consultants and service providers.
EOG focuses on building cybersecurity awareness with its employees and other end-users through training and security exercises and communicates EOG's expectations of employees and contractors with respect to cybersecurity matters via EOG's Codes of Business Conduct and Ethics. 28 EOG's dedicated, in-house cybersecurity team, which is responsible for EOG's cybersecurity strategy and planning, oversees such efforts, with assistance from external threat analysts, consultants and service providers.
As part of its risk oversight responsibility and pursuant to its charter, the Audit Committee, in consultation with the Board and the Board's other committees, oversees EOG’s policies, strategies, and initiatives for mitigating cybersecurity and information technology risks. 28
As part of its risk oversight responsibility and pursuant to its charter, the Audit Committee, in consultation with the Board and the Board's other committees, oversees EOG’s policies, strategies, and initiatives for mitigating cybersecurity and information technology risks. 29
Cyber Governance & Oversight EOG's cybersecurity team reports to EOG's Senior Vice President and Chief Information and Technology Officer, who has served as EOG's Chief Technology Officer since 2017 and as EOG's Chief Information Officer for over 25 years.
Cyber Governance & Oversight EOG's cybersecurity team reports to EOG's Chief Information and Technology Officer, who has served as EOG's Chief Technology Officer since 2017 and as EOG's Chief Information Officer for over 25 years.
EOG's in-house professionals and external threat analysts possess various cybersecurity certifications. EOG's cybersecurity team is led by EOG's group director, information systems and senior manager, information systems security, who each have over seven years of experience overseeing EOG's cybersecurity processes and strategy.
EOG's in-house professionals and external threat analysts possess various cybersecurity certifications. EOG's cybersecurity team is led by EOG's group director, information systems and director, information systems operations, who each have over eight years of experience overseeing EOG's cybersecurity processes and strategy.

Item 2. Properties

Properties — owned and leased real estate

14 edited+1 added−2 removed7 unchanged
Biggest changeThe following tables set forth the results of the gross crude oil and natural gas wells completed for the years ended December 31, 2024, 2023 and 2022: Gross Development Wells Completed Gross Exploratory Wells Completed Crude Oil Natural Gas Dry Hole Total Crude Oil Natural Gas Dry Hole Total 2024 United States 607 117 6 730 8 1 — 9 Trinidad — 1 — 1 — 3 — 3 Total 607 118 6 731 8 4 — 12 2023 United States 595 152 2 749 9 7 — 16 Trinidad — 2 — 2 — 1 — 1 Total 595 154 2 751 9 8 — 17 2022 United States 462 133 11 606 3 — 8 11 Trinidad — — — — — 2 1 3 Total 462 133 11 606 3 2 9 14 30 The following tables set forth the results of the net crude oil and natural gas wells completed for the years ended December 31, 2024, 2023 and 2022: Net Development Wells Completed Net Exploratory Wells Completed Crude Oil Natural Gas Dry Hole Total Crude Oil Natural Gas Dry Hole Total 2024 United States 527 101 5 633 7 1 — 8 Trinidad — 1 — 1 — 3 — 3 Total 527 102 5 634 7 4 — 11 2023 United States 490 135 2 627 7 6 — 13 Trinidad — 2 — 2 — 1 — 1 Total 490 137 2 629 7 7 — 14 2022 United States 395 117 10 522 3 — 8 11 Trinidad — — — — — 2 1 3 Total 395 117 10 522 3 2 9 14 EOG participated in the drilling of wells that were in the process of being drilled or completed at the end of the period as set out in the table below for the years ended December 31, 2024, 2023 and 2022: Wells in Progress at End of Period 2024 2023 2022 Gross Net Gross Net Gross Net United States 243 213 254 212 251 213 Trinidad 2 1 3 3 1 1 Total 245 214 257 215 252 214 Included in the above table of wells in progress at the end of the period were wells which had been drilled, but were not completed (DUCs).
Biggest changeThe following tables set forth the results of the gross crude oil and natural gas wells completed for the years ended December 31, 2025, 2024 and 2023: Gross Development Wells Completed Gross Exploratory Wells Completed Crude Oil Natural Gas Dry Hole Total Crude Oil Natural Gas Dry Hole Total 2025 United States 542 154 3 699 5 5 2 12 Trinidad — 3 — 3 — 1 1 2 Total 542 157 3 702 5 6 3 14 2024 United States 607 117 6 730 8 1 — 9 Trinidad — 1 — 1 — 3 — 3 Total 607 118 6 731 8 4 — 12 2023 United States 595 152 2 749 9 7 — 16 Trinidad — 2 — 2 — 1 — 1 Total 595 154 2 751 9 8 — 17 31 The following tables set forth the results of the net crude oil and natural gas wells completed for the years ended December 31, 2025, 2024 and 2023: Net Development Wells Completed Net Exploratory Wells Completed Crude Oil Natural Gas Dry Hole Total Crude Oil Natural Gas Dry Hole Total 2025 United States 495 132 3 630 4 5 2 11 Trinidad — 2 — 2 — 1 1 2 Total 495 134 3 632 4 6 3 13 2024 United States 527 101 5 633 7 1 — 8 Trinidad — 1 — 1 — 3 — 3 Total 527 102 5 634 7 4 — 11 2023 United States 490 135 2 627 7 6 — 13 Trinidad — 2 — 2 — 1 — 1 Total 490 137 2 629 7 7 — 14 EOG participated in the drilling of wells that were in the process of being drilled or completed at the end of the period as set out in the table below for the years ended December 31, 2025, 2024 and 2023: Wells in Progress at End of Period 2025 2024 2023 Gross Net Gross Net Gross Net United States 263 222 243 213 254 212 Trinidad 4 2 2 1 3 3 Other International 6 4 — — — — Total 273 228 245 214 257 215 Included in the above table of wells in progress at the end of the period were wells which had been drilled, but were not completed (DUCs).
In addition, results of drilling, testing and production or fluctuations in commodity prices subsequent to the date of an estimate may justify revision of such estimate (upward or downward). Accordingly, reserve estimates are often different from the quantities ultimately recovered. Further, the meaningfulness of such estimates is highly dependent upon the accuracy of the assumptions upon which they were based.
In addition, results of drilling, testing and production or fluctuations in commodity prices subsequent to the date of an estimate may justify revision of such estimate (upward or downward). Accordingly, reserve estimates are often different from the quantities ultimately recovered. Further, the validity of such estimates is highly dependent upon the accuracy of the assumptions upon which they were based.
For related discussion, see ITEM 1A, Risk Factors. EOG's estimates of reserves filed with other federal agencies are consistent with the information set forth in "Supplemental Information to Consolidated Financial Statements." Acreage. The following table summarizes EOG's gross and net developed and undeveloped acreage at December 31, 2024 (in thousands of acres).
For related discussion, see ITEM 1A, Risk Factors. EOG's estimates of reserves filed with other federal agencies are consistent with the information set forth in "Supplemental Information to Consolidated Financial Statements." Acreage. The following table summarizes EOG's gross and net developed and undeveloped acreage at December 31, 2025 (in thousands of acres).
In the ordinary course of business, based on its evaluations of certain geologic trends and prospective economics, EOG has allowed certain lease acreage to expire and may allow additional acreage to expire in the future. Many of EOG's oil and gas leases are large enough to accommodate more than one producing unit.
In the ordinary course of business, based on its evaluations of geologic trends, prospective economics, and other factors, EOG has allowed certain lease acreage to expire and may allow additional acreage to expire in the future. Many of EOG's oil and gas leases are large enough to accommodate more than one producing unit.
EOG's other property, plant and equipment primarily includes gathering, processing and transportation assets, carbon capture and storage assets and buildings. EOG does not own drilling rigs or hydraulic fracturing equipment. All of EOG's drilling and completion activities are conducted on a contractual basis with independent drilling contractors and other third-party service contractors.
EOG's other property, plant and equipment primarily includes gathering, processing and transportation assets and buildings. EOG does not own drilling rigs or hydraulic fracturing equipment. All of EOG's drilling and completion activities are conducted on a contractual basis with independent drilling contractors and other third-party service contractors.
The accuracy of any reserve estimate is a function of the amount and quality of available data and of engineering and geological interpretation and judgment. As a result, estimates by different engineers normally vary.
The accuracy of any reserve estimate is a function of the amount and quality of available data and of engineering and geological interpretation and judgment. As a result, estimates by different engineers typically vary.
As of December 31, 2024, there were no proved undeveloped reserves (PUDs) associated with undeveloped leases on which drilling was planned after the expiration dates of such leases.
As of December 31, 2025, there were no proved undeveloped reserves (PUDs) associated with undeveloped leases on which drilling was planned after the expiration dates of such leases.
In order to effectively manage its capital expenditures and to provide flexibility in managing its drilling rig and well completion schedules, EOG, from time to time, will have an inventory of DUCs. At December 31, 2024, there were approximately 179 MMBoe of net PUDs associated with EOG's inventory of DUCs.
In order to effectively manage its capital expenditures and to provide flexibility in managing its drilling rig and well completion schedules, EOG, from time to time, will have an inventory of DUCs. At December 31, 2025, there were approximately 121 MMBoe of net PUDs associated with EOG's inventory of DUCs.
Gross crude oil and natural gas wells include 55 wells with multiple completions. Drilling and Acquisition Activities .
Gross crude oil and natural gas wells include 53 wells with multiple completions. Drilling and Acquisition Activities .
During the years ended December 31, 2024, 2023 and 2022, EOG expended $5.6 billion, $6.0 billion and $5.2 billion, respectively, for exploratory and development drilling, facilities and acquisition of leases and producing properties, including asset retirement costs of $(2) million, $257 million and $298 million, respectively.
During the years ended December 31, 2025, 2024 and 2023, EOG expended $13.2 billion, $5.6 billion and $6.0 billion, respectively, for exploratory and development drilling, facilities and acquisition of leases and producing properties, including asset retirement costs of $146 million, $(2) million and $257 million, respectively.
Approximately 0.1 million net acres will expire in 2025, 0.1 million net acres will expire in 2026 and 0.1 million net acres will expire in 2027 if production is not established or we take no other action to extend the terms of the leases or obtain concessions.
Within the United States, approximately 0.1 million net acres will expire in 2026, 0.1 million net acres will expire in 2027 and 0.1 million net acres will expire in 2028 if production is not established or EOG takes no other action to extend the terms of the leases or obtain concessions.
Drilled Uncompleted Wells at End of Period 2024 2023 2022 Gross Net Gross Net Gross Net United States 170 140 156 132 122 98 Trinidad 1 1 1 1 — — Total 171 141 157 133 122 98 31 EOG acquired wells as set forth in the following table (excluding the acquisition of additional interests in 4, 4 and 74 net wells in which EOG previously owned an interest for the years ended December 31, 2024, 2023 and 2022, respectively) for the years ended December 31, 2024, 2023 and 2022: Gross Acquired Wells Net Acquired Wells Crude Oil Natural Gas Total Crude Oil Natural Gas Total 2024 United States 21 4 25 19 3 22 Total 21 4 25 19 3 22 2023 United States 5 — 5 5 — 5 Total 5 — 5 5 — 5 2022 United States 25 5 30 19 1 20 Total 25 5 30 19 1 20 Other Property, Plant and Equipment.
Drilled Uncompleted Wells at End of Period 2025 2024 2023 Gross Net Gross Net Gross Net United States 167 119 170 140 156 132 Trinidad — — 1 1 1 1 Total 167 119 171 141 157 133 32 EOG acquired wells as set forth in the following table (excluding the acquisition of additional interests of 23, 4 and 4 net wells in which EOG previously owned an interest for the years ended December 31, 2025, 2024 and 2023, respectively) for the years ended December 31, 2025, 2024 and 2023: Gross Acquired Wells Net Acquired Wells Crude Oil Natural Gas Total Crude Oil Natural Gas Total 2025 United States 462 1,206 1,668 355 601 956 Other International — 4 4 — 2 2 Total 462 1,210 1,672 355 603 958 2024 United States 21 4 25 19 3 22 Total 21 4 25 19 3 22 2023 United States 5 — 5 5 — 5 Total 5 — 5 5 — 5 Other Property, Plant and Equipment.
Developed Undeveloped Total Gross Net Gross Net Gross Net United States 1,770 1,429 2,789 1,929 4,559 3,358 Trinidad 102 77 191 110 293 187 Australia — — 1,009 1,009 1,009 1,009 Total 1,872 1,506 3,989 3,048 5,861 4,554 Most of EOG's undeveloped oil and gas leases, particularly in the United States, are subject to lease expiration if initial wells are not drilled within a specified period, generally between three to five years.
Developed Undeveloped Total Gross Net Gross Net Gross Net United States 2,175 1,778 3,847 2,888 6,022 4,666 Trinidad 102 78 611 530 713 608 Other International — — 1,940 1,920 1,940 1,920 Total 2,277 1,856 6,398 5,338 8,675 7,194 Most of EOG's undeveloped oil and gas leases, particularly in the United States, are subject to lease expiration if initial wells are not drilled within a specified period, generally between three to five years.
The following table represents EOG's gross and net productive wells at December 31, 2024, including 3,052 wells in which it holds a royalty interest.
Included in undeveloped acreage is non-producing acreage within such larger producing leases. 30 Productive Well Summary . The following table summarizes EOG's gross and net productive wells at December 31, 2025, including 4,189 wells in which it holds a royalty interest.
Removed
Included in undeveloped acreage is non-producing acreage within such larger producing leases. The agreement governing the acreage associated with our exploration program in offshore Australia is set to expire at various dates through 2026. 29 Productive Well Summary .
Added
Crude Oil Natural Gas Total Gross Net Gross Net Gross Net United States 11,791 7,870 5,286 2,456 17,077 10,326 Trinidad 2 2 46 37 48 39 Other International — — 4 2 4 2 Total (1) 11,793 7,872 5,336 2,495 17,129 10,367 (1) EOG operated 11,573 gross and 10,185 net producing crude oil and natural gas wells at December 31, 2025.
Removed
Crude Oil Natural Gas Total Gross Net Gross Net Gross Net United States 10,288 7,111 3,605 1,782 13,893 8,893 Trinidad 2 2 42 35 44 37 Total (1) 10,290 7,113 3,647 1,817 13,937 8,930 (1) EOG operated 9,910 gross and 8,792 net producing crude oil and natural gas wells at December 31, 2024.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

2 edited+0 added−0 removed2 unchanged
Biggest changePursuant to this item, EOG uses a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required; EOG believes proceedings under this threshold are not material to EOG's business and financial condition (the choice of this threshold does not imply that matters with potential monetary sanctions in excess of $1 million are necessarily material to EOG's business or financial condition).
Biggest changePursuant to this item, EOG uses a threshold of $1 million for purposes of determining whether disclosure of any such proceedings is required; EOG believes proceedings under this threshold are not material to EOG's business and financial condition (the choice of this threshold does not, however, imply that matters with potential monetary sanctions in excess of $1 million are necessarily material to EOG's business or financial condition).
Applying this threshold, there are no environmental proceedings to disclose for the quarter and year ended December 31, 2024.
Applying this threshold, there are no environmental proceedings to disclose for the quarter and year ended December 31, 2025.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

9 edited+1 added−0 removed5 unchanged
Biggest changeThe following table sets forth, for the periods indicated, EOG's share repurchase activity: Period (a) Total Number of Shares Purchased (1) (b) Average Price Paid per Share (c) Total Number of Shares or Value of Shares Purchased as Part of Publicly Announced Plans or Programs (2) (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) October 1, 2024 - October 31, 2024 2,401,712 $ 126.86 $ 299,999,895 $ 1,531,171,168 November 1, 2024 - November 30, 2024 1,224,309 133.70 157,512,580 6,373,658,588 December 1, 2024 - December 31, 2024 4,241,236 123.56 523,698,015 5,849,960,573 Total 7,867,257 126.15 981,210,490 (1) Includes 7,782,416 shares repurchased during the quarter ended December 31, 2024, at an average price of $126.08 per share (inclusive of commissions and transaction fees), pursuant to the Share Repurchase Authorization (as defined below); such repurchases count against the Share Repurchase Authorization.
Biggest changeThe following table sets forth, for the periods indicated, EOG's share repurchase activity: Period (a) Total Number of Shares Purchased (1) (b) Average Price Paid per Share (c) Total Number of Shares or Value of Shares Purchased as Part of Publicly Announced Plans or Programs (2) (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) October 1, 2025 - October 31, 2025 1,335,450 $ 108.28 $ 143,748,309 $ 3,878,171,155 November 1, 2025 - November 30, 2025 1,808,125 107.35 193,248,798 3,684,922,357 December 1, 2025 - December 31, 2025 3,164,582 106.90 337,998,278 3,346,924,079 Total 6,308,157 107.32 $ 674,995,385 (1) Includes 6,289,876 shares repurchased during the quarter ended December 31, 2025, at an average price of $107.31 per share (inclusive of commissions and transaction fees), pursuant to the Share Repurchase Authorization (as defined and further discussed below); such repurchases count against the Share Repurchase Authorization.
The Share Repurchase Authorization has no time limit, does not require EOG to repurchase a specific number of shares and may be modified, suspended or terminated by the Board at any time. 33 Comparative Stock Performance The following performance graph and related information shall not be deemed "soliciting material" or to be "filed" with the United States Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or Securities Exchange Act of 1934, as amended, except to the extent that EOG specifically requests that such information be treated as "soliciting material" or specifically incorporates such information by reference into such a filing.
The Share Repurchase Authorization has no time limit, does not require EOG to repurchase a specific number of shares and may be modified, suspended or terminated by the Board at any time. 34 Comparative Stock Performance The following performance graph and related information shall not be deemed "soliciting material" or to be "filed" with the United States Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that EOG specifically requests that such information be treated as "soliciting material" or specifically incorporates such information by reference into such a filing.
The comparison was prepared based upon the following assumptions: 1. $100 was invested on December 31, 2019 in each of the following: common stock of EOG, the S&P 500 and the S&P O&G E&P. 2. Dividends are reinvested.
The comparison was prepared based upon the following assumptions: 1. $100 was invested on December 31, 2020 in each of the following: common stock of EOG, the S&P 500 and the S&P O&G E&P. 2. Dividends are reinvested.
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities EOG's common stock is traded on the New York Stock Exchange under the ticker symbol "EOG." As of February 13, 2025, there were approximately 3,100 record holders and approximately 1,252,000 beneficial owners of EOG's common stock.
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities EOG's common stock is traded on the New York Stock Exchange under the ticker symbol "EOG." As of February 13, 2026, there were approximately 3,400 record holders and approximately 1,271,000 beneficial owners of EOG's common stock.
Also includes 84,841 total shares that were withheld by or returned to EOG during the quarter ended December 31, 2024, at an average price of $132.23 per share, (i) in satisfaction of tax withholding obligations that arose upon the exercise of employee stock options or stock-settled stock appreciation rights or the vesting of restricted stock, restricted stock unit or performance unit grants or (ii) in payment of the exercise price of employee stock options; such shares do not count against the Share Repurchase Authorization.
Also includes 18,281 total shares that were withheld by or returned to EOG during the quarter ended December 31, 2025, at an average price of $109.09 per share, (i) in satisfaction of tax withholding obligations that arose upon the exercise of employee stock options or stock-settled stock appreciation rights or the vesting of restricted stock, restricted stock unit or performance unit grants or (ii) in payment of the exercise price of employee stock options; such shares do not count against the Share Repurchase Authorization.
The share repurchases effected during the periods October 1, 2024 through November 8, 2024 and November 11, 2024 through November 20, 2024 were made pursuant to Rule 10b5-1 trading plans entered into by EOG on September 30, 2024 and November 8, 2024 (respectively).
The share repurchases effected during the period October 1, 2025 through November 7, 2025 were made pursuant to a Rule 10b5-1 trading plan entered into by EOG on September 29, 2025.
The timing and amount of repurchases is at the discretion of EOG's management and depends on a variety of factors, including the trading price of EOG's common stock, corporate and regulatory requirements, and other market and economic conditions. Repurchased shares are held as treasury shares and are available for general corporate purposes.
The timing and amount of repurchases is at the discretion of EOG's management and depends on a variety of factors, including the trading price of EOG's common stock, corporate and regulatory requirements, other market and economic conditions, the availability of cash to effect repurchases and EOG's anticipated future capital expenditures and other commitments requiring cash.
As of December 31, 2024, (i) EOG had repurchased an aggregate 34,462,691 shares at a total cost of $4,150,039,427 (inclusive of commissions and transaction fees) under the Share Repurchase Authorization and (ii) an additional $5,849,960,573 of shares remained available for repurchases under the Share Repurchase Authorization.
As of December 31, 2025, (i) EOG had repurchased an aggregate 56,166,452 shares at a total cost of $6,653,075,921 (inclusive of commissions and transaction fees) under the Share Repurchase Authorization and (ii) an additional $3,346,924,079 of shares remained available for repurchases under the Share Repurchase Authorization.
Comparison of Five-Year Cumulative Total Returns EOG, S&P 500 and S&P O&G E&P (Performance Results Through December 31, 2024) 2019 2020 2021 2022 2023 2024 EOG $ 100.00 $ 61.36 $ 115.78 $ 181.62 $ 177.98 $ 185.65 S&P 500 $ 100.00 $ 118.40 $ 152.39 $ 124.79 $ 157.59 $ 197.02 S&P O&G E&P $ 100.00 $ 64.58 $ 120.82 $ 191.50 $ 191.57 $ 181.25 34 ITEM 6.
Comparison of Five-Year Cumulative Total Returns EOG, S&P 500 and S&P O&G E&P (Performance Results Through December 31, 2025) 2020 2021 2022 2023 2024 2025 EOG $ 100.00 $ 188.69 $ 295.99 $ 290.06 $ 302.55 $ 268.07 S&P 500 $ 100.00 $ 128.71 $ 105.40 $ 133.10 $ 166.40 $ 196.16 S&P O&G E&P $ 100.00 $ 187.09 $ 296.53 $ 296.63 $ 280.65 $ 282.89 35 ITEM 6.
Added
Repurchased shares are held as treasury shares and are available for general corporate purposes.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

3 edited+0 added−0 removed0 unchanged
Biggest changeITEM 6. Reserved 35 ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 51 ITEM 8. Financial Statements and Supplementary Data 51 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 51 ITEM 9A. Controls and Procedures 51 ITEM 9B.
Biggest changeITEM 6. Reserved 36 ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 36 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 55 ITEM 8. Financial Statements and Supplementary Data 55 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 55 ITEM 9A. Controls and Procedures 55 ITEM 9B.
Principal Accountant Fees and Services 54 PART IV ITEM 15. Exhibits and Financial Statement Schedules 55 ITEM 16. Form 10-K Summary 55 SIGNATURES (i) PART I
Principal Accountant Fees and Services 58 PART IV ITEM 15. Exhibits and Financial Statement Schedules 59 ITEM 16. Form 10-K Summary 59 SIGNATURES (i) PART I
Other Information 51 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 51 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 52 ITEM 11. Executive Compensation 52 ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 53 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 54 ITEM 14.
Other Information 55 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 55 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 56 ITEM 11. Executive Compensation 56 ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 58 ITEM 14.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

107 edited+28 added−19 removed47 unchanged
Biggest changeInterest expense, net of $138 million in 2024 decreased $10 million from $148 million in 2023 primarily due to an increase in capitalized interest ($12 million) and the repayment in March 2023 of the $1,250 million aggregate principal amount of 2.625% Senior Notes due 2023 ($7 million), partially offset by the issuance in November 2024 of the $1,000 million aggregate principal amount of 5.650% Senior Notes due 2054 ($7 million).
Biggest changeInterest expense, net of $235 million in 2025 increased $97 million from $138 million in 2024 primarily due to the issuance of the July Notes and the November Notes ($95 million), the issuance in November 2024 of the $1,000 million aggregate principal amount of 5.650% Senior Notes due 2054 ($50 million) and financing commitment costs related to the Encino acquisition ($6.5 million), partially offset by increased capitalized interest primarily related to the unproved leasehold acquired through the Encino acquisition ($40 million) and the maturity in April 2025 of the $500 million aggregate principal amount of 3.15% Senior Notes due 2025 ($12 million). 43 Exploration costs of $236 million in 2025 increased $62 million from $174 million in 2024 primarily due to increased geological and geophysical expenditures in Trinidad ($27 million), the United Arab Emirates ($23 million) and the United States ($7 million) as well as increased administrative expenses ($11 million), partially offset by decreased delay rentals ($8 million).
For discussion regarding EOG's payment of dividends and share repurchases, see ITEM 1A, Risk Factors, and ITEM 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 37 Dividend Declarations.
For discussion regarding EOG's payment of dividends and share repurchases, see ITEM 1A, Risk Factors, and ITEM 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Dividend Declarations.
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. 50
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. 54
The majority of 2025 expenditures will be focused on United States crude oil drilling activities. EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its senior unsecured revolving credit facility, joint development agreements and similar agreements and equity and debt offerings.
The majority of 2026 expenditures will be focused on United States crude oil drilling activities. EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its senior unsecured revolving credit facility, joint development agreements and similar agreements and equity and debt offerings.
In February 2024, EOG entered into a 10-year agreement, commencing in 2027, to sell 180,000 MMBtud of its domestic natural gas production, with 140,000 MMBtud to be sold at a price indexed to Brent crude oil (Brent) and the remaining volumes to be sold at a price indexed to Brent or a U.S. Gulf Coast gas index.
In February 2024, EOG entered into a 10-year agreement, commencing in 2027, to sell 180,000 MMBtud of its domestic natural gas production, with 140,000 MMBtud to be sold at a price indexed to Brent and the remaining volumes to be sold at a price indexed to Brent or a U.S. Gulf Coast gas index.
If the expected undiscounted future cash flows, based on EOG's estimate of (and assumptions regarding) future crude oil, NGLs and natural gas prices, operating costs, development expenditures, anticipated production from proved reserves and other relevant data (all Level 3 inputs as defined by the FASB's Fair Value Measurement Topic of the ASC (ASC 820)), are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
If the expected undiscounted future cash flows, based on EOG's estimate of (and assumptions regarding) future crude oil, NGLs and natural gas prices, operating costs, development expenditures, anticipated production from proved reserves and other relevant data (all Level 3 inputs as defined by ASC 820), are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
During 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $204 million, which included net cash received from settlements of natural gas financial commodity derivative contracts of $214 million. The net gains of $204 million included gains of $110 million related to the Brent crude oil (Brent) linked gas sales contract.
During 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $204 million, which included net cash received from settlements of natural gas financial commodity derivative contracts of $214 million and gains of $110 million related to the Brent linked gas sales contract.
(2) Amounts exclude transportation and storage service commitments that meet the definition of a lease. Amounts shown are based on current transportation and storage rates and the foreign currency exchange rates used to convert Canadian dollars into United States dollars at December 31, 2024.
(2) Amounts exclude transportation and storage service commitments that meet the definition of a lease. Amounts shown are based on current transportation and storage rates and the foreign currency exchange rates used to convert Canadian dollars into United States dollars at December 31, 2025.
The market prices of crude oil and condensate, NGLs and natural gas impact the amount of cash generated from EOG's operating activities, which, in turn, impact EOG's financial position and results of operations. For the year ended December 31, 2024, the average U.S.
The market prices of crude oil and condensate, NGLs and natural gas impact the amount of cash generated from EOG's operating activities, which, in turn, impact EOG's financial position and results of operations. For the year ended December 31, 2025, the average U.S.
These estimates, which factor into EOG's unproved and proved property impairment calculations, involve the use of various assumptions and judgement. Differing assumptions could impact the timing and amount of an impairment in any given period. Any impairment will decrease earnings in the period in which it is recognized.
These estimates, which factor into EOG's unproved and proved property impairment calculations, involve the use of various assumptions and judgment. Differing assumptions could impact the timing and amount of an impairment in any given period. Any impairment will decrease earnings in the period in which it is recognized.
In November 2023, EOG announced an increase in its cash return commitment - specifically, a commitment, effective beginning with fiscal year 2024, to return a minimum of 70% of annual net cash provided by operating activities before certain balance sheet-related changes, less total capital expenditures, to stockholders through a combination of quarterly dividends, special dividends and share repurchases.
In November 2023, EOG announced an increase in its cash return commitment - specifically, a commitment, effective beginning with fiscal year 2024, to return a minimum of 70 percent of annual net cash provided by operating activities before certain balance sheet-related changes, less total capital expenditures, to stockholders through a combination of regular dividends, special dividends and share repurchases.
In addition, EOG has entered into agreements with its service providers from time to time, when available and advantageous, to secure the costs and availability of certain drilling and completion services it utilizes as part of its operations.
In addition, EOG has entered into agreements with its service providers from time to time, when available and advantageous, to secure the costs and availability of certain drilling and completions services it utilizes as part of its operations.
On February 27, 2025, the Board declared a quarterly cash dividend on the common stock of $0.975 per share to be paid on April 30, 2025, to stockholders of record as of April 16, 2025.
On February 27, 2025, the Board of Directors (Board) declared a quarterly cash dividend on the common stock of $0.975 per share paid on April 30, 2025, to stockholders of record as of April 16, 2025.
In addition, EOG expects to spend a portion of its anticipated 2025 capital expenditures on leasing acreage, evaluating new prospects, gathering and processing infrastructure, transportation infrastructure and environmental projects.
In addition, EOG expects to spend a portion of its anticipated 2026 capital expenditures on leasing acreage, evaluating new prospects, gathering and processing infrastructure, transportation infrastructure and environmental projects.
The market price of crude oil and condensate, NGLs and natural gas in 2025 will impact the amount of cash generated from EOG's operating activities, which will in turn impact EOG's financial position.
The market price of crude oil and condensate, NGLs and natural gas in 2026 will impact the amount of cash generated from EOG's operating activities, which will in turn impact EOG's financial position.
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; 49 • 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 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 this Annual Report on Form 10-K 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.
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 commodity and other derivative instruments and hedging activities; laws and regulations with respect to the import and export of crude oil, natural gas and related commodities; and trade policies, tariffs, trade agreements and other trade restrictions; 53 • 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, EOG's ability to retain, 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; • 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 this Annual Report on Form 10-K 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.
For discussion of certain year-to-year comparisons between 2023 and 2022, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 22, 2024, which is incorporated herein by reference.
For discussion of certain year-to-year comparisons between 2024 and 2023, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, ITEM 7 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed on February 27, 2025, which is incorporated herein by reference.
Proved reserves represent estimated quantities of crude oil and condensate, NGLs and natural gas that geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made. 47 The process of estimating quantities of proved oil and gas reserves is complex, requiring significant subjective decisions in the evaluation of available geological, engineering and economic data for each reservoir.
Proved reserves represent estimated quantities of crude oil and condensate, NGLs and natural gas that geological and engineering data demonstrate, with reasonable certainty, to be economically producible in future years from known reservoirs under economic and operating conditions existing at the time the estimates were made. 50 The process of estimating quantities of proved oil and gas reserves is complex, requiring significant subjective decisions in the evaluation of available geological, engineering and economic data for each reservoir.
For information regarding EOG's crude oil, NGLs and natural gas financial commodity derivative contracts through February 21, 2025, see "Financial Commodity and Other Derivative Transactions" above. Capital. EOG plans to continue to focus a substantial portion of its exploration and development expenditures in its major producing areas in the United States.
For information regarding EOG's crude oil, NGLs and natural gas financial commodity derivative contracts through February 18, 2026, see "Financial Commodity and Other Derivative Transactions" above. Capital. EOG plans to continue to focus a substantial portion of its exploration and development expenditures in its major producing areas in the United States.
The total anticipated 2025 capital expenditures of approximately $6.0 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses, is structured to maintain EOG's strategy of capital discipline by funding its exploration, development and exploitation activities primarily from available internally generated cash flows and cash on hand.
The total anticipated 2026 capital expenditures of approximately $6.3 billion to $6.7 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses, is structured to maintain EOG's strategy of capital discipline by funding its exploration, development and exploitation activities primarily from available internally generated cash flows and cash on hand.
On a volumetric basis, as calculated using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas, crude oil and condensate and NGLs production accounted for approximately 72% and 73% of EOG's United States production during 2024 and 2023, respectively.
On a volumetric basis, as calculated using a ratio of 1.0 barrel of crude oil and condensate or NGLs to 6.0 thousand cubic feet of natural gas, crude oil and condensate and NGLs production accounted for approximately 68% and 72% of EOG's United States production during 2025 and 2024, respectively.
Changes in the fair value are recognized as gains or losses in the period of change on the Consolidated Statements of Income and Comprehensive Income. Financing EOG's debt-to-total capitalization ratio was 14% at December 31, 2024, compared to 12% at December 31, 2023.
Changes in the fair value are recognized as gains or losses in the period of change on the Consolidated Statements of Income and Comprehensive Income. Financing EOG's debt-to-total capitalization ratio was 21% at December 31, 2025, compared to 14% at December 31, 2024.
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2025 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in natural gas price is approximately $33 million for net income and $42 million for pretax cash flows from operating activities.
Including the impact of EOG's natural gas financial derivative contracts and based on EOG's tax position and the portion of EOG's anticipated natural gas volumes for 2026 for which prices have not been determined under long-term marketing contracts, EOG's price sensitivity for each $0.10 per Mcf increase or decrease in natural gas price is approximately $64 million for net income and $83 million for pretax cash flows from operating activities.
If the expected undiscounted future cash flows, based on EOG's estimate of (and assumptions regarding) future crude oil, NGLs and natural gas prices, operating costs, development expenditures, anticipated production from proved reserves and other relevant data (all Level 3 inputs as defined by the FASB's Fair Value Measurement Topic of the ASC (ASC 820)), are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
If the expected undiscounted future cash flows, based on EOG's estimate of (and assumptions regarding) future crude oil, NGLs and natural gas prices, operating costs, development expenditures, anticipated production from proved reserves and other relevant data (all Level 3 inputs as defined by the Fair Value Measurement Topic of the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) (ASC 820)), are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value.
Management continues to believe EOG has one of the strongest prospect inventories in EOG's history. When it fits EOG's strategy, EOG will make acquisitions that bolster existing drilling programs or offer incremental exploration and/or production opportunities. Cash Return Framework.
Management believes that EOG has one of the strongest prospect inventories in EOG's history. When it fits EOG's strategy, EOG will make acquisitions that bolster existing drilling programs or offer incremental exploration and/or production opportunities. 38 Cash Return Framework.
Total anticipated 2025 capital expenditures are estimated to range from approximately $6.0 billion to $6.4 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses.
Total anticipated 2026 capital expenditures are estimated to range from approximately $6.3 billion to $6.7 billion, including exploration and development drilling, facilities, leasehold acquisitions, capitalized interest, dry hole costs and other property, plant and equipment and excluding property acquisitions, asset retirement costs, non-cash exchanges and transactions and exploration costs incurred as operating expenses.
EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its $1.9 billion senior unsecured revolving credit facility and equity and debt offerings. Operations. In 2025, crude oil and total crude oil equivalent production are expected to increase from 2024 levels.
EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its $3.0 billion senior unsecured revolving credit facility and equity and debt offerings. Operations. In 2026, crude oil and total crude oil equivalent production are expected to increase from 2025 levels.
While changes in interest rates affect the fair value of EOG's senior notes, such changes do not expose EOG to material fluctuations in earnings or cash flow. During 2024, EOG funded its capital program and operations by utilizing cash provided by operating activities and cash on hand.
While changes in interest rates affect the fair value of EOG's senior notes, such changes do not expose EOG to material fluctuations in earnings or cash flow. 48 During 2025, EOG funded its capital program and operations by utilizing cash provided by operating activities, proceeds from the issuances of senior notes and cash on hand.
During the five years ended December 31, 2024, WTI crude oil spot prices have fluctuated from approximately $(36.98) per barrel to $123.64 per barrel, and Henry Hub natural gas spot prices have ranged from approximately $1.21 per MMBtu to $23.86 per MMBtu.
During the five years ended December 31, 2025, WTI crude oil spot prices have fluctuated from approximately $47.47 per barrel to $123.64 per barrel, and Henry Hub natural gas spot prices have ranged from approximately $1.21 per MMBtu to $23.86 per MMBtu.
Based on EOG's tax position, EOG's price sensitivity in 2025 for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGLs price, is approximately $159 million for net income and $204 million for pretax cash flows from operating activities.
Based on EOG's tax position, EOG's price sensitivity in 2026 for each $1.00 per barrel increase or decrease in crude oil and condensate price, combined with the estimated change in NGLs price, is approximately $174 million for net income and $223 million for pretax cash flows from operating activities.
Changes to these factors may cause EOG's composite DD&A rate and expense to fluctuate from period to period. DD&A of the cost of other property, plant and equipment is generally calculated using the straight-line depreciation method over the useful lives of the assets. DD&A expenses in 2024 increased $616 million to $4,108 million from $3,492 million in 2023.
Changes to these factors may cause EOG's composite DD&A rate and expense to fluctuate from period to period. DD&A of the cost of other property, plant and equipment is generally calculated using the straight-line depreciation method over the useful lives of the assets. DD&A expenses in 2025 increased $353 million to $4,461 million from $4,108 million in 2024.
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 and statements regarding the plans and objectives of EOG's management for future operations, are forward‐looking statements.
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.
As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity. At December 31, 2024 and 2023, respectively, EOG had outstanding $4,640 million and $3,640 million aggregate principal amount of senior notes, which had estimated fair values of $4,441 million and $3,574 million, respectively.
As used in this calculation, total capitalization represents the sum of total current and long-term debt and total stockholders' equity. At December 31, 2025 and 2024, respectively, EOG had outstanding $7,890 million and $4,640 million aggregate principal amount of senior notes, which had estimated fair values of $7,849 million and $4,441 million, respectively.
Such initiatives include (among others): (i) EOG's downhole drilling motor program, which has resulted in increased footage drilled per day and, in turn, reduced drilling times; (ii) enhanced techniques for completing its wells, which has resulted in increased footage completed per day and pumping hours per day; (iii) drilling extended laterals, which has resulted in a decrease in cost per foot drilled; and (iv) EOG's self-sourced sand program, which has resulted in cost savings for the sand utilized in its well completion operations.
Such initiatives include (among others): (i) EOG's downhole drilling motor program, which has resulted in increased footage drilled per day and, in turn, reduced drilling times; (ii) enhanced techniques for completing its wells, which has resulted in increased footage completed per day and pumping hours per day; (iii) drilling extended laterals, which have resulted in a decrease in cost per foot drilled; and (iv) EOG's self-sourced sand program, which has provided supply certainty and resulted in operational efficiencies in its well completion operations.
Revenues from the sales of crude oil and condensate and NGLs in 2024 were 91% of total revenues from sales of crude oil and condensate, NGLs and natural gas compared to 90% in 2023.
Revenues from the sales of crude oil and condensate and NGLs in 2025 were 84% of total revenues from sales of crude oil and condensate, NGLs and natural gas compared to 91% in 2024.
Gathering, processing and marketing revenues less marketing costs in 2024 decreased $14 million compared to 2023, primarily due to lower margins on sand sales and natural gas marketing activities, partially offset by higher margins on crude oil marketing activities.
Gathering, processing and marketing revenues less marketing costs in 2025 increased $36 million compared to 2024, primarily due to higher margins on natural gas marketing activities and sand sales, partially offset by lower margins on crude oil marketing activities.
The following table presents the costs per barrel of oil equivalent (Boe) for the years ended December 31, 2024 and 2023: 2024 2023 Lease and Well $ 4.04 $ 4.05 Gathering, Processing and Transportation Costs (GP&T) 4.43 4.50 Depreciation, Depletion and Amortization (DD&A) - Oil and Gas Properties 10.04 9.24 Other Property, Plant and Equipment 0.53 0.48 General and Administrative (G&A) 1.72 1.78 Interest Expense, Net 0.36 0.41 Total (1) $ 21.12 $ 20.46 (1) Total excludes exploration costs, dry hole costs, impairments, marketing costs and taxes other than income. 40 The primary factors impacting the cost components of per-unit rates of lease and well, GP&T, DD&A, G&A and interest expense, net for 2024 compared to 2023 are set forth below.
The following table presents the costs per barrel of oil equivalent (Boe) for the years ended December 31, 2025 and 2024: 2025 2024 Lease and Well $ 3.72 $ 4.04 Gathering, Processing and Transportation Costs (GP&T) 4.74 4.43 Depreciation, Depletion and Amortization (DD&A) - Oil and Gas Properties 9.34 10.04 Other Property, Plant and Equipment 0.58 0.53 General and Administrative (G&A) 1.82 1.72 Interest Expense, Net 0.52 0.36 Total (1) $ 20.72 $ 21.12 (1) Total excludes exploration costs, dry hole costs, impairments, marketing costs and taxes other than income. 42 The primary factors impacting the cost components of per-unit rates of lease and well, GP&T, DD&A, G&A and interest expense, net for 2025 compared to 2024 are set forth below.
Natural Gas Financial Price Swap Contracts Contracts Sold Period Settlement Index Volume (MMBtud in thousands) Weighted Average Price ($/MMBtu) January - December 2024 (closed) NYMEX Henry Hub 725 3.07 January - February 2025 (closed) NYMEX Henry Hub 725 3.07 March - December 2025 NYMEX Henry Hub 725 3.07 Natural Gas Basis Swap Contracts Contracts Sold Period Settlement Index Volume (MMBtud in thousands) Weighted Average Price Differential ($/MMBtu) January - December 2024 (closed) NYMEX Henry Hub HSC Differential (1) 10 0.00 January - February 2025 (closed) NYMEX Henry Hub HSC Differential 10 0.00 March - December 2025 NYMEX Henry Hub HSC Differential 10 0.00 _________________ (1) This settlement index is used to fix the differential between pricing at the Houston Ship Channel and NYMEX Henry Hub prices.
Natural Gas Financial Price Swap Contracts Contracts Sold Period Settlement Index Volume (MMBtud in thousands) Weighted Average Price ($/MMBtu) February - July 2025 (closed) NYMEX Henry Hub 725 $ 3.07 August - December 2025 (closed) NYMEX Henry Hub 1,225 3.32 January - February 2026 (closed) NYMEX Henry Hub 460 3.78 March - June 2026 NYMEX Henry Hub 460 3.78 July - December 2026 NYMEX Henry Hub 450 3.79 Natural Gas Basis Swap Contracts Contracts Sold Period Settlement Index Volume (MMBtud in thousands) Weighted Average Price Differential ($/MMBtu) January - December 2025 (closed) NYMEX Henry Hub Houston Ship Channel (HSC) Differential (1) 10 $ 0.00 (1) This settlement index is used to fix the differential between pricing at the Houston Ship Channel and NYMEX Henry Hub prices.
However, the adequacy of liquidity sources could be impacted by various factors, including general economic and market conditions, volatility in commodity prices or financial and capital markets and regulatory and other factors discussed in this report under Item 1A, Risk Factors. 44 Financial Commodity and Other Derivative Transactions Presented below is a comprehensive summary of EOG's financial commodity derivative contracts settled during the year ended December 31, 2024 (closed) and remaining for 2025, as of February 21, 2025.
However, the adequacy of liquidity sources could be impacted by various factors, including general economic and market conditions, volatility in commodity prices or financial and capital markets and regulatory and other factors discussed in this report under ITEM 1A, Risk Factors. 46 Financial Commodity and Other Derivative Transactions Presented below is a comprehensive summary of EOG's financial commodity derivative contracts settled during the year ended December 31, 2025 (closed) and remaining for 2026 and thereafter, as of February 18, 2026 (inclusive of the contracts assumed, via novation, from Encino).
During 2024, EOG's drilling and completion activities occurred primarily in the Delaware Basin play, Eagle Ford play and Rocky Mountain area. EOG's major producing areas in the United States are in New Mexico and Texas. See ITEM 1, Business - Exploration and Production for further discussion regarding EOG's 2024 United States operations. Trinidad.
During 2025, EOG's drilling and completion activities occurred primarily in the Delaware Basin play, Eagle Ford play and Utica play. EOG's major producing areas in the United States are in New Mexico, Texas and Ohio. See ITEM 1, Business - Exploration and Production for further discussion regarding EOG's 2025 United States operations.
Natural gas volumes are presented in MMBtu per day (MMBtud) and prices are presented in dollars per MMBtu ($/MMBtu).
Natural gas volumes are presented in MMBtu per day (MMBtud) and prices are presented in dollars per MMBtu ($/MMBtu). NGL volumes are presented in MBbld and prices are presented in $/Bbl.
EOG considers the availability of its $1.9 billion senior unsecured revolving credit facility, as described in Note 2 to Consolidated Financial Statements, to be sufficient to meet its ongoing operating needs. 45 Outlook Pricing. Crude oil, NGLs and natural gas prices have been volatile, and this volatility is expected to continue.
EOG considers the availability of the New Facility, as described in Note 2 to Consolidated Financial Statements, to be sufficient to meet its ongoing operating needs. Outlook Pricing. Crude oil, NGLs and natural gas prices have been volatile, and this volatility is expected to continue.
During 2024, net proved crude oil and condensate and natural gas liquids (NGLs) reserves increased by 218 million barrels (MMBbl), and net proved natural gas reserves increased by 192 billion cubic feet, or 32 MMBoe, in each case from December 31, 2023. Recent Developments Commodity Prices. Prices for crude oil and condensate, NGLs and natural gas have historically been volatile.
During 2025, net proved crude oil and condensate and natural gas liquids (NGLs) reserves increased by 187 million barrels (MMBbl), and net proved natural gas reserves increased by 3,470 billion cubic feet, or 579 MMBoe, in each case from December 31, 2024. Recent Developments Commodity Prices. Prices for crude oil and condensate, NGLs and natural gas have historically been volatile.
EOG plans to continue with these initiatives and actions, though there can be no assurance that such efforts will offset, largely or at all, the impacts of any future inflationary pressures (such as from tariffs) on EOG's operating costs and capital expenditures, cash flows and results of operations.
EOG plans to continue with these initiatives and actions, though there can be no assurance that such efforts will be successful and sufficient to offset the impacts of any future inflationary pressures (such as from tariffs, other trade barriers or other macroeconomic factors) on EOG's operating costs and capital expenditures, cash flows and results of operations.
On May 2, 2024, the Board declared a quarterly cash dividend on the common stock of $0.91 per share paid on July 31, 2024, to stockholders of record as of July 17, 2024.
On May 1, 2025, the Board declared a quarterly cash dividend on the common stock of $0.975 per share paid on July 31, 2025, to stockholders of record as of July 17, 2025.
GP&T costs include operating and maintenance expenses from EOG-owned assets, fees paid to third-party operators and administrative expenses associated with operating EOG's GP&T assets. EOG pays third parties to process the majority of its natural gas production to extract NGLs.
GP&T costs represent costs to process and deliver hydrocarbon products from the lease to a downstream point of sale. GP&T costs include operating and maintenance expenses from EOG-owned assets, fees paid to third-party operators and administrative expenses associated with operating EOG's GP&T assets. EOG pays third parties to process the majority of its natural gas production to extract NGLs.
In 2025, EOG anticipates the following cash requirements under these commitments (in millions): Finance Leases (1) $ 35 Operating Leases (1) 355 Leases Effective, Not Commenced (1) 13 Transportation and Storage Service Commitments (2) (3) 888 Purchase and Service Obligations (3) 632 Total Cash Requirements $ 1,923 (1) For more information on contracts that meet the definition of a lease under ASC "Leases (Topic 842)," see Note 17 to Consolidated Financial Statements.
In 2026, EOG anticipates the following cash requirements under these commitments (in millions): Finance Leases (1) $ 30 Operating Leases (1) 515 Leases Effective, Not Commenced (1) 30 Transportation and Storage Service Commitments (2) (3) 1,031 Purchase and Service Obligations (3) 640 Total Cash Requirements $ 2,246 (1) For more information on contracts that meet the definition of a lease under ASC "Leases (Topic 842)," see Note 17 to Consolidated Financial Statements.
In particular, statements, express or implied, concerning EOG's future financial or operating results and returns or 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 are 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.
EOG expects to fund its exploration, development and exploitation activities and other cash requirements, both in 2025 and in future years, primarily from internally generated cash flows and cash on hand.
EOG expects to fund its exploration, development and exploitation activities, its cash return commitment, its debt service obligations and other cash requirements, both in 2026 and in future years, primarily from internally generated cash flows and cash on hand.
During 2024, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $204 million compared to net gains of $818 million in 2023. Gathering, processing and marketing revenues decreased $6 million during 2024, to $5,800 million from $5,806 million in 2023.
During 2025, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $13 million compared to net gains of $204 million in 2024. Gathering, processing and marketing revenues decreased $886 million during 2025, to $4,914 million from $5,800 million in 2024.
Purchases and sales of third-party crude oil and natural gas may be utilized in order to balance firm capacity at third-party facilities with production in certain areas and to utilize excess capacity at EOG-owned facilities. EOG sells sand primarily in order to balance the timing of firm purchase agreements with completion operations.
Purchases and sales of third-party crude oil and natural gas may be utilized in order to balance firm capacity at third-party facilities with production in certain areas and to utilize excess capacity at EOG-owned facilities.
Taxes other than income in 2024 decreased $35 million to $1,249 million (7.1% of revenues from sales of crude oil and condensate, NGLs and natural gas) from $1,284 million (7.4% of revenues from sales of crude oil and condensate, NGLs and natural gas) in 2023.
Taxes other than income in 2025 decreased $15 million to $1,234 million (7.0% of revenues from sales of crude oil and condensate, NGLs and natural gas) from $1,249 million (7.1% of revenues from sales of crude oil and condensate, NGLs and natural gas) in 2024.
While EOG maintains a $1.9 billion senior unsecured revolving credit facility to back its commercial paper program, there were no borrowings outstanding at any time during 2024 and the amount outstanding at year-end was zero.
While EOG maintains the New Facility to back its commercial paper program (which replaced its prior $1.9 billion revolving credit facility), there were no borrowings outstanding at any time during 2025 under either facility and the amount outstanding at year-end was zero.
During 2024, EOG funded $6.7 billion ($109 million of which was non-cash) in exploration and development and other property, plant and equipment expenditures (excluding asset retirement obligations), paid $2.1 billion in dividends to common stockholders and paid $3.2 billion to repurchase shares of common stock, primarily by utilizing net cash provided by its operating activities and cash on hand.
During 2025, EOG funded $13.6 billion in exploration and development and other property, plant and equipment expenditures (excluding asset retirement obligations), paid $2.2 billion in dividends to common stockholders and paid $2.6 billion to repurchase shares of common stock, primarily by utilizing net cash provided by its operating activities, issuances of senior notes and cash on hand.
As discussed above, EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under its $1.9 billion senior unsecured revolving credit facility and equity and debt offerings.
As discussed above, EOG has significant flexibility with respect to financing alternatives, including borrowings under its commercial paper program, bank borrowings, borrowings under the New Facility and equity and debt offerings.
Net cash used in financing activities of $4,361 million in 2024 included purchases of treasury stock ($3,246 million), cash dividend payments ($2,087 million) and repayment of finance lease liabilities ($33 million).
Net cash used in financing activities of $4,361 million in 2024 included share repurchases and other purchases of treasury stock ($3,246 million) and cash dividend payments ($2,087 million).
EOG realized net income of $6,403 million during 2024 as compared to net income of $7,594 million for 2023. At December 31, 2024, EOG's total estimated net proved reserves were 4,748 million barrels of oil equivalent (MMBoe), an increase of 250 MMBoe from December 31, 2023.
EOG realized net income of $4,980 million for 2025 as compared to net income of $6,403 million for 2024. At December 31, 2025, EOG's total estimated net proved reserves were 5,514 million barrels of oil equivalent (MMBoe), an increase of 766 MMBoe from December 31, 2024.
The decrease in taxes other than income was primarily due to increased state severance tax refunds ($18 million), decreased ad valorem/property taxes ($14 million) and decreased severance/production taxes ($5 million), all in the United States. Other income, net, was $274 million in 2024 compared to other income, net, of $234 million in 2023.
The decrease in taxes other than income was primarily due to decreased severance/production taxes ($60 million), partially offset by decreased state severance tax refunds ($30 million) and increased ad valorem/property taxes ($10 million), all in the United States. Other income, net, was $212 million in 2025 compared to other income, net, of $274 million in 2024.
DD&A expenses associated with oil and gas properties in 2024 were $583 million higher than in 2023. The increase primarily reflects increased production in the United States ($233 million) and Trinidad ($26 million), and increased unit rates in the United States ($166 million) and in Trinidad ($35 million).
DD&A expenses associated with oil and gas properties in 2025 were $298 million higher than in 2024. The increase primarily reflects increased production in the United States ($596 million) and Trinidad ($7 million), and increased unit rates in Trinidad ($8 million).
EOG's composite crude oil and condensate price for 2024 decreased 2% to $77.40 per barrel compared to $79.17 per barrel in 2023. Crude oil and condensate production in 2024 increased 3% to 491 MBbld as compared to 476 MBbld in 2023. The increased production was primarily in the Permian Basin and Utica.
EOG's composite crude oil and condensate price for 2025 decreased 15% to $65.63 per barrel compared to $77.40 per barrel in 2024. Crude oil and condensate production in 2025 increased 6% to 522 MBbld as compared to 491 MBbld in 2024. The increased production was primarily in the Utica and the Permian Basin.
EOG has placed an emphasis on applying its horizontal drilling and completion expertise to unconventional crude oil and natural gas plays. In 2024, EOG continued to focus on initiatives to increase its drilling, completion and operating efficiencies and improve well performance and, in turn, mitigate the inflationary pressures on its operating costs and capital expenditures experienced in prior periods.
EOG has placed an emphasis on applying its horizontal drilling and completion expertise to unconventional crude oil and natural gas plays. In 2025, EOG continued to focus on initiatives to increase its drilling, completion and operating efficiencies and improve well performance.
EOG recognized net gains on asset dispositions of $16 million in 2024 compared to net gains on asset dispositions of $95 million in 2023. 38 Volume and price statistics for the years ended December 31, 2024, 2023 and 2022 were as follows: Year Ended December 31 2024 2023 2022 Crude Oil and Condensate Volumes (MBbld) (1) United States 490.6 475.2 460.7 Trinidad 0.8 0.6 0.6 Total 491.4 475.8 461.3 Average Crude Oil and Condensate Prices ($/Bbl) (2) United States $ 77.42 $ 79.18 $ 97.22 Trinidad 64.43 68.58 86.16 Composite 77.40 79.17 97.21 Natural Gas Liquids Volumes (MBbld) (1) United States 245.9 223.8 197.7 Total 245.9 223.8 197.7 Average Natural Gas Liquids Prices ($/Bbl) (2) United States $ 23.40 $ 23.07 $ 36.70 Composite 23.40 23.07 36.70 Natural Gas Volumes (MMcfd) (1) United States 1,728 1,551 1,315 Trinidad 220 160 180 Total 1,948 1,711 1,495 Average Natural Gas Prices ($/Mcf) (2) United States $ 1.99 $ 2.70 $ 7.27 Trinidad 3.65 3.65 4.43 (4) Composite 2.17 2.79 6.93 Crude Oil Equivalent Volumes (MBoed) (3) United States 1,024.5 957.5 877.5 Trinidad 37.6 27.3 30.7 Total 1,062.1 984.8 908.2 Total MMBoe (3) 388.7 359.4 331.5 (1) Thousand barrels per day or million cubic feet per day, as applicable.
EOG recognized net losses on asset dispositions of $35 million in 2025 compared to net gains on asset dispositions of $16 million in 2024. 40 Volume and price statistics for the years ended December 31, 2025, 2024 and 2023 were as follows (see Note 11 for segment financial information): Year Ended December 31 2025 2024 2023 Crude Oil and Condensate Volumes (MBbld) (1) United States 520.5 490.6 475.2 Trinidad 1.4 0.8 0.6 Total 521.9 491.4 475.8 Average Crude Oil and Condensate Prices ($/Bbl) (2) United States $ 65.65 $ 77.42 $ 79.18 Trinidad 57.59 64.43 68.58 Composite 65.63 77.40 79.17 Natural Gas Liquids Volumes (MBbld) (1) United States 288.2 245.9 223.8 Total 288.2 245.9 223.8 Average Natural Gas Liquids Prices ($/Bbl) (2) United States $ 22.58 $ 23.40 $ 23.07 Composite 22.58 23.40 23.07 Natural Gas Volumes (MMcfd) (1) United States 2,299 1,728 1,551 Trinidad 230 220 160 Other International (3) 4 — — Total 2,533 1,948 1,711 Average Natural Gas Prices ($/Mcf) (2) United States $ 2.94 $ 1.99 $ 2.70 Trinidad 3.78 3.65 3.65 Other International (3) 3.28 — — Composite 3.02 2.17 2.79 Crude Oil Equivalent Volumes (MBoed) (4) United States 1,191.8 1,024.5 957.5 Trinidad 39.8 37.6 27.3 Other International (3) 0.6 — — Total 1,232.2 1,062.1 984.8 Total MMBoe (4) 449.8 388.7 359.4 (1) Thousand barrels per day or million cubic feet per day, as applicable.
During 2023, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $818 million, which included net cash paid for settlements of crude oil, NGLs and natural gas financial commodity derivative contracts of $112 million.
During 2025, EOG recognized net gains on the mark-to-market of financial commodity and other derivative contracts of $13 million, which included net cash paid for settlements of NGLs and natural gas financial commodity derivative contracts of $56 million and losses of $79 million related to the Brent crude oil (Brent) linked gas sales contract.
Cash provided by financing activities in 2024 included long-term debt borrowings ($985 million) and proceeds from stock options exercised and employee stock purchase plan activity ($22 million). 43 Total Expenditures The table below sets out components of total expenditures for the years ended December 31, 2024, 2023 and 2022 (in millions): 2024 2023 2022 Expenditure Category Capital Exploration and Development Drilling (1) $ 4,534 $ 4,803 $ 3,675 Facilities 606 520 411 Leasehold Acquisitions (2) 230 207 186 Property Acquisitions (3) 33 16 419 Capitalized Interest 45 33 36 Subtotal 5,448 5,579 4,727 Exploration Costs 174 181 159 Dry Hole Costs 14 1 45 Exploration and Development Expenditures 5,636 5,761 4,931 Asset Retirement Costs (4) (2) 257 298 Total Exploration and Development Expenditures 5,634 6,018 5,229 Other Property, Plant and Equipment (5) 1,019 800 381 Total Expenditures $ 6,653 $ 6,818 $ 5,610 (1) Exploration and development drilling included $90 million related to non-cash development drilling in 2023.
Cash provided by financing activities in 2024 included long-term debt borrowings ($985 million). 45 Total Expenditures The table below sets out the components of total expenditures for the years ended December 31, 2025, 2024 and 2023 (in millions): 2025 2024 2023 Expenditure Category Capital Exploration and Development Drilling (1) $ 4,885 $ 4,534 $ 4,803 Facilities 622 606 520 Leasehold Acquisitions (2) 197 230 207 Property Acquisitions (3) 7,003 33 16 Capitalized Interest 86 45 33 Subtotal 12,793 5,448 5,579 Exploration Costs 236 174 181 Dry Hole Costs 49 14 1 Exploration and Development Expenditures 13,078 5,636 5,761 Asset Retirement Costs (4) 146 (2) 257 Total Exploration and Development Expenditures 13,224 5,634 6,018 Other Property, Plant and Equipment (5) 479 1,019 800 Total Expenditures $ 13,703 $ 6,653 $ 6,818 (1) Exploration and development drilling included $90 million related to non-cash development drilling in 2023.
Operating Revenues and Other During 2024, operating revenues decreased $488 million, or 2%, to $23,698 million from $24,186 million in 2023. Total revenues from sales of EOG's production of crude oil and condensate, NGLs and natural gas, increased $202 million, or 1%, to $17,578 million in 2024 from $17,376 million in 2023.
Operating Revenues and Other During 2025, total operating revenues decreased $1,066 million, or 4%, to $22,632 million from $23,698 million in 2024. Total revenues from sales of EOG's production of crude oil and condensate, NGLs and natural gas, increased $90 million, or 1%, to $17,668 million in 2025 from $17,578 million in 2024.
The 2022 exploration and development expenditures of $4,931 million included $3,962 million in development drilling and facilities, $514 million in exploration, $419 million in property acquisitions and $36 million in capitalized interest. The level of exploration and development expenditures, including acquisitions, will vary in future periods depending on energy market conditions and other economic factors.
The 2023 exploration and development expenditures of $5,761 million included $5,101 million in development drilling and facilities, $611 million in exploration, $33 million in capitalized interest and $16 million in property acquisitions. The level of exploration and development expenditures, including acquisitions, will vary in future periods depending on energy market conditions and other economic factors.
In particular, EOG will be focused on United States drilling activity in the Delaware Basin play, Eagle Ford play, Dorado gas play and Utica play where it generates its highest rates-of-return.
In particular, EOG will be focused on United States drilling activity in the Delaware Basin play, Eagle Ford play, Dorado gas play and Utica play where it generates its highest rates-of-return. To further enhance the economics of these plays, EOG expects to continue to improve well performance and to focus on improving operating efficiencies.
The primary uses of cash were funds used in operations; exploration and development expenditures; dividend payments to stockholders; purchases of treasury stock; net cash paid for settlements of financial commodity derivative contracts; other property, plant and equipment expenditures; and repayment of debt.
The primary uses of cash were exploration and development expenditures; funds used in operations; dividend payments to stockholders; share repurchases and other purchases of treasury stock; the acquisition of Encino; repayment of long-term debt; and other property, plant, and equipment expenditures.
NGLs production in 2024 increased 10% to 246 MBbld as compared to 224 MBbld in 2023. The increased production was primarily in the Permian Basin.
NGLs production in 2025 increased 17% to 288 MBbld as compared to 246 MBbld in 2024. The increased production was primarily in the Utica and the Permian Basin.
Further, there can be no assurance that the factors contributing to any such future inflationary pressures will not impact EOG's ability to conduct its future day-to-day drilling, completion and production operations. See ITEM 1A. Risk Factors, for related discussion. Climate Change .
Further, there can be no assurance that any such pressures or factors will not impact EOG's ability to conduct its future day-to-day drilling, completion and production operations. See ITEM 1A. Risk Factors, for related discussion. 36 Operations Several important developments have occurred since January 1, 2025. United States.
New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $75.72 per barrel and $2.27 per million British thermal units (MMBtu), respectively, representing decreases of 2% and 17%, respectively, from the average NYMEX prices for the year ended December 31, 2023.
New York Mercantile Exchange (NYMEX) crude oil and natural gas prices were $64.78 per barrel and $3.43 per million British thermal units (MMBtu), respectively, representing a decrease of 14% and an increase of 51%, respectively, from the average NYMEX prices for the year ended December 31, 2024.
Operating and Other Expenses During 2024, operating expenses of $15,616 million were $1,033 million higher than the $14,583 million incurred during 2023.
Operating and Other Expenses During 2025, operating expenses of $16,247 million were $631 million higher than the $15,616 million incurred during 2024.
The following table represents impairments for the years ended December 31, 2024 and 2023 (in millions): 2024 2023 Proved properties $ 295 $ 44 Unproved properties 63 125 Other assets 31 31 Firm commitment contracts 2 2 Total $ 391 $ 202 Impairments of proved properties for the year ended December 31, 2024, were primarily due to the write-down to fair value of natural gas and crude oil assets in the Rocky Mountain area.
The following table represents impairments for the years ended December 31, 2025 and 2024 (in millions): 2025 2024 Proved properties $ 709 $ 295 Unproved properties 61 63 Other assets 72 31 Firm commitment contracts 1 2 Total $ 843 $ 391 Impairments of proved properties for the year ended December 31, 2025, were primarily due to the write-down to fair value of natural gas and crude oil assets in the Barnett Shale and Woodford Oil Window, mainly driven by play-specific economics and resource allocation.
As of February 21, 2025, the average 2025 NYMEX crude oil and natural gas prices were $69.58 per barrel and $4.26 per MMBtu, respectively, representing a decrease of 8% for crude oil and an increase of 88% for natural gas from the average NYMEX prices in 2024.
As of February 18, 2026, the average 2026 NYMEX crude oil and natural gas prices were $63.23 per barrel and $3.84 per MMBtu, respectively, representing a decrease of 2% for crude oil and an increase of 12% for natural gas from the average NYMEX prices in 2025.
(2) Leasehold acquisitions included $85 million, $99 million and $127 million related to non-cash property exchanges in 2024, 2023 and 2022, respectively. (3) Property acquisitions included $24 million, $6 million and $26 million related to non-cash property exchanges in 2024, 2023 and 2022, respectively.
(2) Leasehold acquisitions included $24 million, $85 million and $99 million related to non-cash property exchanges in 2025, 2024 and 2023, respectively. (3) Property acquisitions for the year ended December 31, 2025, included $6,703 million related to the Encino acquisition. Property acquisitions included $24 million and $6 million related to non-cash property exchanges in 2024 and 2023, respectively.
Management does not believe that any future changes in these rates before the expiration dates of these commitments will have a material adverse effect on the financial condition or results of operations of EOG. (3) For more information on transportation and storage service commitments and purchase and service obligations, see Note 8 to Consolidated Financial Statements.
Management does not believe that any future changes in these rates before the expiration dates of these commitments will have a material adverse effect on the financial condition or results of operations of EOG. (3) For years 2026 and beyond, $65 million of capital commitments have been made.
The increase of $40 million in 2024 was primarily due to an increase in interest income. Income taxes of $1,815 million in 2024 decreased from income taxes of $2,095 million in 2023 primarily due to decreased pretax income.
The decrease of $62 million in 2025 was primarily due to a decrease in interest income. Income taxes of $1,382 million in 2025 decreased from income taxes of $1,815 million in 2024 primarily due to decreased pretax income.
(4) Asset Retirement Costs for 2024 included a downward revision to asset retirement obligations of $83 million.
(4) Asset retirement costs for the year ended December 31, 2025, included $52 million related to the Encino acquisition. Asset Retirement Costs for 2024 included a downward revision to asset retirement obligations of $83 million.
The increase in production was primarily due to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in Trinidad.
Natural gas deliveries in 2025 increased 30% to 2,533 MMcfd as compared to 1,948 MMcfd in 2024. The increase in production was primarily due to increased production of associated natural gas from the Permian Basin and higher natural gas deliveries in the Utica and Dorado.
Net cash used in investing activities of $5,967 million in 2024 decreased by $373 million from $6,340 million in 2023 primarily due to a decrease in net cash used in working capital associated with investing activities ($677 million) and a decrease in additions to oil and gas properties ($32 million); partially offset by an increase in additions to other property, plant and equipment ($219 million) and a decrease in proceeds from the sales of assets ($117 million).
Net cash used in investing activities of $10,936 million in 2025 increased by $4,969 million from $5,967 million in 2024 primarily due to the acquisition of Encino ($4,451 million), an increase in additions to oil and gas properties ($762 million) and a decrease in cash provided by working capital associated with investing activities ($297 million), partially offset by a decrease in additions to other property, plant and equipment ($540 million).

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