Finance · UAE Weekly
Home Energy Company News By Charles Kennedy - Nov 05, 2026, 8:40 PM CST EOG Resources reported an 89% increase in third-quarter 2026 net income to $2.78 billion, supported by record oil and gas production and stronger commodity prices, as the U.S. shale producer announced an 8% increase in its quarterly dividend. The Houston-based company posted diluted earnings of $5.33 per share, compared with $2.70 a year earlier. Adjusted net income, excluding certain non-recurring and other items, climbed 73% to $2.54 billion, or $4.87 per share, from $1.47 billion in the third quarter of 2025.
Total revenue increased 46% year-over-year to $8.55 billion, reflecting higher production volumes and improved commodity price realizations. EOG's total production reached a record 1.433 million barrels of oil equivalent per day (boe/d), up approximately 10% from 1.301 million boe/d a year earlier and exceeding the company's guidance midpoint. Crude oil and condensate production increased to 550,400 barrels per day, while natural gas liquids output rose to 357,100 barrels per day.
Natural gas production climbed to 3.15 billion cubic feet per day, compared with 2.75 billion cubic feet per day in the prior-year quarter. Higher commodity prices contributed to the earnings improvement. The benchmark West Texas Intermediate crude price averaged $85.68 per barrel during the quarter, compared with $64.95 in the corresponding period of 2025.
The company generated $3.81 billion in operating cash flow and $2.18 billion in free cash flow, with the latter increasing approximately 57% year-over-year. EOG maintained cost discipline despite higher production, reporting cash operating expenses of $10.49 per barrel of oil equivalent, below its guidance midpoint of $10.70. EOG increased its regular quarterly dividend by 8% to $1.10 per share, equivalent to an annualized payout of $4.40 per share.
The dividend is payable on January 29, 2027, to shareholders of record on January 15. During the third quarter, EOG returned approximately $1.54 billion to shareholders through $544 million in dividend payments and $1 billion in share repurchases. The company's net debt declined to $2.18 billion at the end of September, from $4.16 billion a year earlier, strengthening its financial position.
Beyond its financial results, EOG announced a new long-term natural gas sales agreement linked to the Japan-Korea Marker (JKM), an important benchmark for Asian liquefied natural gas prices. The agreement is expected to increase EOG's exposure to premium-priced markets across its LNG feedgas contracts to more than 1 billion cubic feet per day by 2030, potentially strengthening its ability to capture higher international gas prices. EOG also approved an expansion of its Janus natural gas processing plant in the Delaware Basin, providing additional processing capacity to support its upstream operations.
For the fourth quarter, EOG forecasts production of between 1.386 million and 1.432 million boe/d, with a midpoint of approximately 1.409 million boe/d. Full-year production guidance stands at 1.393 million to 1.425 million boe/d, while the company expects 2026 capital expenditures of between $6.3 billion and $6.7 billion. The results underscore EOG's ability to combine growing oil and gas production with significant free cash flow generation and shareholder returns, while expanding its exposure to international natural gas markets.
By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.com ADNOC Gas to Supply LNG to TotalEnergies Under Five-Year Deal Iran Reports More Tanker Fires in Strait of Hormuz India to Require State Utilities to Add Energy Storage Capacity Back to homepage Charles Kennedy Charles is a writer for Oilprice.com More Info EXXON Mobil -0.35 Open 57.81 Trading Vol. 6.96M Previous Vol. 241.7B BUY 57.15 Sell 57.00 "
