Results
EOG Resources Inc.
10/08/2026 | Press release | Distributed by Public on 10/08/2026 14:17
Business/Financial Results (Form 8-K)
Item 2.02 Results of Operations and Financial Condition.
I. Recent Developments
On October 8, 2026, EOG Resources, Inc. (EOG) updated its guidance regarding current tax expense for the third quarter 2026. In its prior guidance for the third quarter 2026 issued with second quarter 2026 results on August 4, 2026, EOG forecasted current tax expense for the third quarter 2026 of $545 million - $645 million.
Due to the higher crude oil prices realized in the third quarter 2026 and anticipated for the full year as a result of the ongoing conflict in the Middle East (versus EOG's expectations at the time of issuance of its third quarter 2026 guidance on August 4, 2026), EOG now expects its third quarter 2026 current tax expense to be $835 million - $935 million.
EOG is not updating or confirming any other ranges for the third quarter 2026 or full year 2026 included in the guidance issued on August 4, 2026.
II. Price Risk Management and Other
With the objective of enhancing the certainty of future revenues and cash flows, from time to time EOG enters into financial price swap, option, swaption, collar and basis swap contracts (collectively, Financial Commodity Derivative Contracts). EOG accounts for its Financial Commodity Derivative Contracts using the mark-to-market accounting method. In addition, EOG accounts for its 10-year natural gas sales agreement that is linked to Brent crude oil prices (Brent Linked Gas Sales Contract) using the mark-to-market accounting method.
During the third quarter of 2026, EOG received net cash of $40 million from settlements of Financial Commodity Derivative Contracts. There was no cash received related to the Brent Linked Gas Sales Contract as deliveries are expected to commence in January 2027.
For the quarter ended September 30, 2026, U.S. New York Mercantile Exchange (NYMEX) West Texas Intermediate crude oil averaged $85.68 per barrel, and NYMEX natural gas at Henry Hub averaged $2.95 per million British thermal units. EOG's actual realizations for crude oil and natural gas for the quarter ended September 30, 2026, differ from these NYMEX prices due to delivery location (basis), quality and appropriate revenue adjustments. EOG's actual realizations for natural gas liquids (NGLs) are influenced by the components extracted, including ethane, propane, butane and natural gasoline, among others, and the respective market pricing for each component.
III. Forward-Looking Statements
This Current Report on Form 8-K may include certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements 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. Although EOG believes the expectations reflected in our forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that such assumptions are accurate or will prove to have been correct or that any of such expectations will be achieved (in full or at all) or will be achieved on the expected or anticipated timelines. Moreover, EOG's forward-looking statements are subject to business, economic, and competitive uncertainties and contingencies and may be affected by known and unknown risks, events or circumstances, many of which may be outside our control. For additional information and important factors that could cause EOG's actual results to differ materially from the expectations reflected in our forward-looking statements, see "Information Regarding Forward-Looking Statements" on pages 53 and 54 of EOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (2025 Form 10-K) filed with the United States Securities and Exchange Commission (SEC). Also, see "Risk Factors" on pages 15 through 28 of the 2025 Form 10-K for a discussion of certain risk factors that affect or may affect our business, operations and performance, and any updates to those factors set forth in our subsequent filings with the SEC.
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