EOG Resources Inc. (EOG) First Take In Line Quarter vs GS and Consensus, Focus on Outlook for Future UAE Development and Sh...

Equity Research 4 August 2026 | 7:38PM EDT

EOG Resources Inc. (EOG): First Take: In-Line Quarter vs GS and Consensus, Focus on Outlook for Future UAE Development and

EOG reported 2Q26 adjusted EBITDAX of $4.87 bn, -1%/+1% vs GS/consensus Neil Mehta | estimates of $4.91/$4.84 bn. Adjusted EPS of $5.07/shr was -1% vs GS estimate of Goldman Sachs & Co. LLC

$5.11/shr and +2% vs FactSet consensus of $4.97/shr. 2Q26 capex of $1.59 bn was Jack Cavanagh | below GS/consensus estimates at $1.63/$1.62 bn, resulting in FCF (before working Goldman Sachs & Co. LLC capital) of $2.80 bn, +14%/+8% vs GS/consensus estimates of $2.46/$2.60 bn. EOG returned ~$1.84 bn of cash to shareholders through (1) $540 mn in base dividends Jerry Speicher | and (2) ~$1.3 bn in share repurchases. Net debt at 2Q26 end decreased to $3.02 bn Goldman Sachs & Co. LLC vs $4.08 bn at 1Q26 end.

3Q26 Guidance. EOG guided to 1) oil production of 546-551 Mb/d vs GS/consensus estimates of 550/550 Mb/d, 2) total production of 1,390-1,435 Mboe/d vs GS/consensus estimates of 1,402/1,404 Mboe/d, and 3) capital spending of $1.60-$1.70 bn vs GS/consensus of $1.61/$1.63 bn.

2026 Guidance. EOG guided to 1) maintained oil production of 546-551 Mb/d vs GS/consensus estimates of 549/550 Mb/d, 2) increased total production of 1,378-1,423 Mboe/d vs 1,374-1,419 Mboe/d prior vs GS/consensus estimates of 1,400/1,400 Mboe/d, and 3) maintained capital spending guidance of $6.30-$6.70 bn vs GS/consensus estimates of $6.56/$6.54 bn.

UAE Well Results. EOG announced the establishment of UAE oil production with successful test results from two one-mile lateral wells that averaged >25,000 barrels of cumulative oil production per well for the first 30 days.

What are key questions for the 10 AM ET conference call?

1. Following the recent UAE well results, can you provide any further detail around the potential cost of supply for the UAE acreage?

2. What are updated thoughts on the company’s capital allocation plans across its portfolio?

3. What macro conditions would incentivize EOG to return to focusing on oil volume growth in 2026+?

4. What opportunities is the company pursuing around the marketing and commercial strategy for its natural gas supply?

5. How should investors weigh the outlook for share repurchases relative to dividends in the current macro environment following the strong levels seen in

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs EOG Resources Inc. (EOG)

Exhibit 1: 2Q 2026 Results vs GS vs Consensus $ mn unless noted Actual Actual vs. Actual GS Consensus vs. GS Consensus

Earnings EBITDAX ($ bn) $4.87 $4.91 -1% $4.84 1% Op. Cash Flow ($ bn) $4.39 $4.09 7% $4.22 4% Cash flow per share $8.29 $7.74 7% $7.96 4% Cash Capex ($ bn) $1.59 $1.63 -3% $1.62 -2% Net Debt ($ bn) $3.02 $2.97 2% $3.21 -6% FCF ($ bn) $2.80 $2.46 14% $2.60 8%

EPS (reported) $5.15 $5.11 1% - NA EPS (adjusted) $5.07 $5.11 -1% $4.97 2%

Production Natural gas (MMcfe/d) 3,089 3,078 0% 3,056 1% Oil (Mb/d) 549 549 0% 549 0% NGLs (Mboe/d) 347 334 4% 338 3% Total production (Mboe/d) 1,410 1,396 1% 1,396 1%

Realized prices before hedges Natural gas ($/Mcf) $2.89 $2.73 6% - NA Oil ($/bbl) $98.15 $98.39 0% - NA NGL ($/bbl) $24.41 $25.51 -4% - NA

Costs ($/boe) Production costs $8.91 $8.85 1% - NA Production taxes $3.36 $3.58 -6% - NA G&A $1.66 $1.53 9% - NA Total cash costs $13.93 $13.96 0% - NA Exploration Expense $0.75 $0.47 58% - NA DD&A $9.81 $9.98 -2% - NA All-in costs $24.49 $24.41 0% - NA

Source: Company data, Goldman Sachs Global Investment Research, FactSet

EOG Valuation. We maintain our 12-month price target of $127 and our FCF yield multiple of 9.0% on 2027/2028 estimates with $75 per bbl Brent oil price and $3.50 per MMBtu Henry Hub gas…