EOG Resources Inc (NYSE:EOG) stock fell 0.52% (As on August 8, 11:23:20 AM UTC-4, Source: Google Finance) after the company beat second-quarter profit estimates and raised its annual production forecast as the U.S. energy producer closed its $5.6 billion Encino deal. In May, EOG agreed to acquire Encino Acquisition Partners to boost its presence in the Utica and Marcellus region, one of the most prolific natural gas basins in the world. The expansion of the portfolio through the Encino acquisition, the entry into Bahrain and the UAE, as well as strong exploration progress across the domestic portfolio and in Trinidad, has significantly enhanced the industry-leading asset base. EOG generated $973 million in free cash flow during the quarter.

Meanwhile, EOG also topped estimates for second-quarter profit, as a rise in output helped it offset a drop in crude prices. Brent crude fell nearly 20% on average in the quarter from a year earlier, dragged down by tepid global demand signals, mounting OPEC+ supply, and pressure from U.S. trade policies. While prices briefly spiked above $80 a barrel in June following Israeli strikes on Iranian nuclear facilities, they soon retreated to around $67 as geopolitical risk premiums faded and market focus shifted back to weak fundamentals. EOG said benchmark U.S. crude prices stood at $63.71 per barrel, down from last year’s $80.55. The company’s total quarterly production stood at 1.13 million boepd, compared with last year’s 1.047 million boepd.

EOG in the second quarter of FY25 has reported the adjusted earnings per share of $2.32, beating the analysts’ estimates for the adjusted earnings per share of $2.21, according to data complied by LSEG. The company had reported the adjusted revenue decline of 9.1 percent to $5.48 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $5.46 billion.

Additionally, the company declared a dividend of $1.02 per share on EOG’s common stock. The dividend will be payable on October 31, 2025, to shareholders of record as of October 17, 2025. During the second quarter, the company repurchased 5.4 million shares for $600 million under its share repurchase authorization. EOG has $4.5 billion remaining on its current share buyback authorization.

The company projected 2025 total production to average 1.224 million barrels of oil equivalent per day (boepd), up from its prior expectations of 1.1 million to 1.14 million boepd. For the full year, EOG expects total capital expenditure to range from $6.2 billion to $6.4 billion, higher than its previous forecast of $5.8 billion to $6.2 billion.