AI Takeaway
EOG Resources reported FY2025 revenue of $22.6B, down 4.5% year-over-year, with net income falling 22.2% to $5.0B amid lower commodity prices, though the company maintained strong operating cash flow of $10.0B and a healthy current ratio of 1.63.
Revenue
$22.63B
-4.50% YoY
EPS (Basic)
$9.17
-18.92% YoY
Operating Income
$6.38B
-21.00% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 4.5% year-over-year from $23.7B to $22.6B in FY2025, reflecting weaker oil and natural gas price realizations that pressured the top line despite EOG's continued production activity.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating margin contracted sharply from 34.1% in FY2024 to 28.2% in FY2025, a decline of approximately 5.9 percentage points, while net margin settled at 22.0%, reflecting the combined impact of lower revenues and relatively sticky cost structures including a $4.5B D&A charge.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
EOG generated $10.0B in operating cash flow in FY2025, underscoring the company's ability to convert earnings into cash even as net income declined 22.2% to $5.0B; D&A of $4.5B (up 8.6% YoY) contributed meaningfully to cash generation.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockEOG's revenues and profitability are highly sensitive to fluctuations in oil and natural gas prices. The 4.5% revenue decline and 22.2% net income drop in FY2025 illustrate how quickly earnings can deteriorate in a softer price environment. Sustained low commodity prices could further compress margins and reduce free cash flow.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockReported EPS of $2.27 versus the $2.21 analyst consensus — a +2.6% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $22.63B | $23.7B | -4.50% |
Operating Income | $6.38B | $8.08B | -21.00% |
Net Income | $4.98B | $6.4B | -22.22% |
EPS (Basic) | $9.17 | $11.31 | -18.92% |
EPS (Diluted) | $9.12 | $11.25 | -18.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $51.8B | $47.19B | +9.78% |
Current Assets | $7.66B | $11.23B | -31.83% |
Current Liabilities | $4.69B | $5.35B | -12.38% |
Stockholders' Equity | $29.83B | $29.35B | +1.64% |
Cash & Equivalents | $3.4B | $7.09B | -52.12% |
Long-Term Debt | $7.91B | $4.22B | +87.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $10.04B | $12.14B | -17.29% |
Investing Cash Flow | $-10.94B | $-5.97B | -83.27% |
Financing Cash Flow | $-2.8B | $-4.36B | +35.70% |
Share Buybacks | $2.56B | $3.25B | -21.01% |
D&A | $4.46B | $4.11B | +8.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 28.2% | 34.1% | -5.89% |
Net Margin | 22.0% | — | — |
ROE | 16.7% | — | — |
ROA | 9.6% | — | — |
Current Ratio | $1.632 | — | — |
Other companies in Oil & Gas Exploration & Production
EOG reported FY2025 revenue of $22.6B, down 4.5% year-over-year, and net income of $5.0B, down 22.2% from $6.4B in FY2024. The decline was primarily driven by lower commodity price realizations, which compressed operating margin from 34.1% to 28.2%.
The key takeaways from EOG's FY2025 10-K are: revenue and earnings declined due to softer commodity prices; the company significantly ramped capital investment with investing outflows of -$10.9B; and long-term debt nearly doubled to $7.9B to help fund this expansion. Despite these pressures, EOG maintained solid operating cash flow of $10.0B and returned $2.6B to shareholders via buybacks.
Yes, EOG's long-term debt surged 87.4% from $4.2B to $7.9B in FY2025, coinciding with a sharp increase in capital investment as investing cash outflows grew 83.3% to -$10.9B. This suggests EOG used debt to partially fund a significant expansion or acquisition program during the year.
EOG's financial health remains solid overall, with a current ratio of 1.63, stockholders' equity of $29.8B, and ROE of 16.7%. However, the sharp decline in cash reserves (down 52.1% to $3.4B) and the near-doubling of long-term debt are worth monitoring as indicators of increased financial leverage.
EOG returned $2.6B to shareholders through share repurchases in FY2025, down 21.0% from $3.2B in FY2024, reflecting a more conservative buyback pace amid higher capital investment needs. Total financing cash outflows were $2.8B, suggesting dividends and other distributions were also part of the capital return program.