EOG Resources Reports Earnings Growth Amid Market Struggles

With a market cap of $59.2 billion, EOG Resources, Inc. (EOG) is a key player in the American energy sector, focusing on the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas. The company is headquartered in Houston, Texas, and operates mainly in the United States, as well as in Trinidad and Tobago.

Stock Performance Compared to Market

Over the last 52 weeks, EOG shares have not performed as well as the broader market. The stock has declined 16.7%, while the S&P 500 Index ($SPX) has increased by 8.2%. On a year-to-date basis, EOG shares are down 11.3%, contrasting with a 4.7% dip in the S&P 500.

Further analysis reveals that EOG has also underperformed the Energy Select Sector SPDR Fund’s (XLE) return of 13.7% over the past year and a 6% decrease this year.

Q1 2025 Financial Results

On May 1, EOG Resources reported strong Q1 2025 results, with an adjusted net income of $1.6 billion, or $2.87 per share. This result surpassed expectations, although revenue was slightly below forecast at $5.7 billion. Production increased by 4.8% year-over-year, aided by a 63% rise in natural gas prices and higher crude output.

The company generated $1.3 billion in free cash flow, returning the same amount to shareholders through dividends and buybacks, which included a 7% dividend increase. EOG also reduced its 2025 capital expenditure plan by $200 million, aiming for improved capital efficiency amid global uncertainties, while committing to maintaining oil production levels and achieving a 5% growth in total production for the year. Following the announcement, EOG shares rose by 1.2%.

Outlook and Analyst Opinions

For fiscal 2025, ending in December, analysts predict that EOG’s earnings per share (EPS) will decrease by nearly 15.2% year-over-year to $9.85. However, EOG has a strong track record of exceeding earnings expectations, having beaten consensus estimates in each of the last four quarters.

Among the 28 analysts covering EOG stock, the consensus rating is a “Moderate Buy.” This rating breaks down to 14 “Strong Buy” ratings, one “Moderate Buy,” and 13 “Holds.” This sentiment reflects a more optimistic outlook than a month ago, when 13 analysts rated it as a “Strong Buy.”

On May 2, Barclays plc (BCS) adjusted its price target for EOG Resources from $140 to $137 but maintained an “Equal Weight” rating. This change follows EOG’s Q1 results and its decision to moderately reduce capital expenditures, aiming to stabilize oil production and maintain broader portfolio development. The mean price target of $137.85 indicates a potential upside of 26.8% from current market prices, while the highest target of $156 implies a possible gain of 43.5%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.