EOG Resources, Inc.
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins in the United States, the Republic of Trinidad and Tobago, and internationally. The company also offers crude oil and condensate, and gathering, processing and marketing. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
What does it do?
EOG Resources is one of America's biggest oil and gas hunters. They find oil and natural gas underground, drill it out, and sell it to refineries, utilities, and energy traders. Think of them as a mining company, but for the fuel that powers cars, heats homes, and runs factories. They operate mainly across Texas, New Mexico, and Wyoming, with some operations in Trinidad and Tobago.
EOG is one of the most efficient oil producers in the US — meaning they can still make good money even when oil prices fall, which most rivals can't say. With global energy markets constantly rattled by geopolitical tensions, supply cuts from OPEC, and the ongoing debate around fossil fuels versus renewables, EOG sits right at the center of one of the world's most consequential industries. Investors watch it as a barometer for the health of American shale oil production.
How does it make money?
EOG makes money by selling crude oil, natural gas, and natural gas liquids — the stuff refined into gasoline, jet fuel, and plastics. In their latest full year, they pulled in $22.6 billion in revenue and kept $5 billion as net profit, which is a healthy margin for the industry. Oil sales make up the bulk of revenue, but natural gas liquids have become a growing contributor. They also earn smaller amounts by helping process and move other companies' energy through their gathering infrastructure.
Why do investors care?
EOG has built a reputation for drilling the most profitable wells in the US shale patch — they target only wells that generate strong returns even at relatively low oil prices, which makes the business more resilient than peers. The growth story hinges on expanding their acreage in top-tier basins like the Permian in Texas and the Utica in Ohio, while also exploring international opportunities. For this to work, oil prices need to stay above roughly $40 per barrel — well below current levels — and EOG needs to keep finding new high-quality drilling locations. A growing dividend and share buyback program also rewards investors while they wait.
Deep Dive
MemberA full investor briefing on EOG Resources, Inc. — history, leadership, risks, and outlook.