EOG Resources reports $27 million in derivative settlements for Q3 2025

EOG Resources Inc. (NYSE:EOG), which maintains a robust financial health score of "GOOD" according to InvestingPro analysis, reported Wednesday that it received net cash of $27 million from settlements of financial commodity derivative contracts during the third quarter of 2025. With a strong current ratio of 1.79, the company demonstrates solid liquidity as it awaits the commencement of its 10-year natural gas sales agreement linked to Brent crude oil prices, with deliveries expected to begin in January 2027.

For the quarter ended September 30, 2025, the average price for West Texas Intermediate crude oil on the New York Mercantile Exchange was $64.95 per barrel. The average price for natural gas at Henry Hub was $3.07 per million British thermal units. EOG, which maintains impressive gross profit margins of 61.7% and generated $11.8 billion in EBITDA over the last twelve months, stated that its realized prices for crude oil and natural gas differed from these benchmarks due to factors such as delivery location, product quality, and revenue adjustments. Realizations for natural gas liquids were influenced by the mix of extracted components and their respective market prices. According to InvestingPro’s Fair Value analysis, EOG’s stock currently appears undervalued, suggesting potential upside for investors.

The company uses various financial instruments, including price swaps, options, collars, and basis swaps, to manage price risk and enhance the predictability of future revenues and cash flows. These contracts are accounted for using the mark-to-market accounting method. For deeper insights into EOG’s financial health and detailed analysis, including 8 additional ProTips and comprehensive valuation metrics, check out the full research report available on InvestingPro.

The information in this article is based on a press release statement contained in an SEC filing.

In other recent news, EOG Resources completed a significant $5.6 billion acquisition of Encino assets, marking the largest deal in the company’s history. This acquisition has influenced various financial projections, with Benchmark adjusting its third-quarter estimates, lowering EPS to $2.25 from $2.73 and EBITDA to $2.84 billion from $3.06 billion. The consensus estimates are currently at $2.37 EPS and $3.0 billion EBITDA. Mizuho has maintained a Neutral rating on EOG Resources, anticipating that the company will surpass consensus estimates by around 4% on EBITDAX and cash flow per share in the upcoming quarter.

Melius Research has initiated coverage on EOG Resources with a Buy rating, citing strong capital discipline as a positive factor. Bernstein SocGen Group has increased its price target for EOG Resources to $146 from $140, following updated guidance that highlighted improved operational efficiencies. CFRA also raised its price target to $135 from $127, maintaining a Buy rating due to the recent Utica acreage acquisition. Despite the additional debt incurred from the Encino acquisition, EOG Resources asserts that its total debt to EBITDA ratio remains stable at 1x, even under conservative pricing assumptions.

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