EOG Resources Inc (NYSE:EOG) stock fell 1.89% (As on February 24, 11:29:44 AM UTC-4, Source: Google Finance) after the company beat estimates for fourth-quarter profit, as higher output and elevated natural gas prices offset the impact of a drop in crude prices. U.S. natural gas futures rose over 11% sequentially in the fourth quarter, driven by stronger demand and increased pipeline volumes, breaking a falling streak that started in the second quarter due to record‑high U.S. production. Oil production reached 546,100 barrels per day in the fourth quarter, up 10% YoY. EOG said it produced about 1.40 million barrels of oil equivalent per day in the fourth quarter, compared with 1.09 million boepd a year earlier. The company’s $5.6 billion purchase of Encino Acquisition Partners in May helped lift production and broadened EOG’s foothold in the Utica Shale, one of the country’s most productive natural gas regions. The average realized prices for natural gas stood at $3 per thousand cubic feet (Mcf), compared with $2.57 per Mcf a year earlier. The average realized price of oil, however, fell to $59.54 per barrel from $71.66 per barrel a year earlier. Global crude oil prices have been pressured by growing worries of a glut and the increasing prospect of Venezuela adding more barrels to global supply. The independent oil and gas producer posted net income of $701 million, or $1.30 per share on a GAAP basis, for the quarter ended December 31, 2025. The company generated $1.0 billion in free cash flow during the quarter and returned $675 million to shareholders through share repurchases.

EOG in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.27, beating the analysts’ estimates for the adjusted earnings per share of $2.19, according to data compiled by LSEG. The company had reported the adjusted revenue decline of 13 percent to $5.64 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $5.78 billion.

The company said it expects current-year production to be in the range of 1.37 million boepd to 1.42 million boepd and between 1.35 million boepd and 1.40 million boepd for the first quarter. It also forecast annual capital expenditure in the range of $6.3 billion to $6.7 billion. For 2026 the company is targeting $4.5 billion in free cash flow. EOG announced a $6.5 billion capital plan for 2026, targeting oil production flat with fourth quarter 2025 levels.