EOG Resources company logo.

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The stock of EOG Resources is up about 30% since the Iran war started. That’s not surprising because other oil and gas companies are up like this. What is surprising is its market cap is the biggest of independents in the U.S., an unheralded position behind the oil and gas majors. But that’s not all. It ekes out good profits using a strategy which is focused on just a few oil and gas plays, mostly in the U.S.

First-quarter results are in for EOG for 2026, and can be compared with (1Q results for 2025).

Total revenue $6.9 billion ($5.7 billion).

Net income $2.0 billion ($1.5 billion).

Net income per share $3.70 ($2.65).

Total crude oil equivalent 1.4 million barrels per day (1.1 billion).

The CEO commentary said EOG generated $1.5 billion in free cash flow and returned nearly $950 million to shareholders through regular dividend and share repurchases.

“EOG has never been stronger. Our multi-basin portfolio, operational excellence, and financial strength provide unmatched flexibility to deliver superior returns and significant cash to shareholders across commodity price cycles."

The Strategy.

EOG’s strategy has been to buy into oil and gas plays during market downturns. Examples are deals in Ohio and Eagle Ford which were done in 2025 when WTI oil price ranged between $56/bbl (low) and $78/bbl (high). In April 2025, EOG acquired a small block for $275 million in the Eagle Ford oil area. The bolt-on block was labeled a unicorn because it lay between two EOG plays, and would allow drilling of longer laterals, to 3 miles. In terms of well count, EOG remains the second largest company in the play, after ConocoPhillips.

In the Utica, EOG bought Encino Acquisition Partners for $5.6 billion in a much bigger deal that was concluded in August 2025. This gave EOG its third top-tier play, after its core plays in the Permian and Eagle Ford basins.

But the war in Iran has kept EOG on its cash flow approach, for now. They plan to use the cash to make new investments in the next downturn. Kind of like “buy low and sell high”.

EOG anticipate an extended $100 per barrel oil price even after the Strait of Hormuz is reopened. As of now over 1500 tankers are trapped by the Iran blockade. The supply that isn’t reaching markets is growing every day. By the end of June, it will total 900 million barrels of oil (MMbbl), according to EOG. To replace this inventory will be a challenge and take quite a while.

Over the next few years, EOG think oil prices will remain above $65/barrel. To make more cash quicker, the company plans to move rigs from their Dorado gas play in Texas, to oil-shale plays in Ohio Utica and the Permian Delaware basin. This means ten new wells in the Utica and five new wells in the Delaware. In 2026 this will increase EOG’s liquids production by 2,000 bpd of oil and 6,000 bpd of NGL (natural gas liquids). Its Dorado gas production will fall from about 1 Bcfd to 0.8 Bcfd. Despite low gas prices, the Dorado continues to make a profit because its breakeven price is only $1.40/Mcf.

But EOG is not raising its Capex from $6.5 billion this year. Their current three-year plan is expected to return profits in the low single-digit region. This would translate to $12 - $24 billion in free cash flow, according to EOG.

Exploration Plans.

In the U.S., the company is scrutinizing areas that have been overlooked in the past, but with new oilfield technologies in mind. Overseas, EOG is exploring a tight sand in Bahrain (with Bapco), and a carbonate mudrock in the UAE (with ADNOC). Due to the war, timelines have slipped and some personnel have been relocated. Still, first results are expected in the second half of 2026.

How Does EOG Compare To Major Oil Companies?

The table shows the market cap of several of the major oil companies. EOG Resources is way down compared to the top three majors, but is not far away from ConocoPhillips and BP. In revenue and number of employees, EOG is closest to ConocoPhillips.

The surprise is EOG’s market cap is more than half of BP’s. But the discrepancy in revenue, and particularly in number of employees, is enormous. A bit over 3,000 are employed at EOG, while the number is 100,000 at BP. Though generally unheralded in comparison with major oil companies, EOG has been going about its business quietly and efficiently. Its success is attributed to its focus and business strategy.

A recent article compared financials of EOG and ConocoPhillips. It addressed the question which of the two stocks is cheaper and pays more. While both are essentially upstream companies, EOG concentrates on a core of shale properties in the U.S. For EOG, it’s all about discipline in operations to produce more from wells.

While EOG is focused on a limited number of properties, ConocoPhillips is into scale, diversification, and global breadth. ConocoPhillips earned almost $59 billion in sales/revenue in 2025, while EOG earned only $23 billion. A similar ratio applies to net income.

The comparison between EOG and ConocoPhillips has been extended to P/E values (price to earnings ratio). This ratio is a comparison between stock price and future earnings. The average for the energy sector is 23. P/E is 18 for ConocoPhillips, and is 11 for EOG. This makes EOG stock look cheaper than ConocoPhillips stock.

What about annual dividend? ConocoPhillips yields annually $3.36/share, about 2.7% of its share value, and its payout ratio is 51% which means about half its earnings go to dividends. For EOG these numbers are $4.08/share, 3.0%, and 39%, which means more capital is available for research, development, or expanding the business. As judged by Yahoo, these yields and payout ratios make EOG look like it has the stronger dividend.