EOG Resources reported a strong third quarter of 2026, with net income surging 89% to $2.78 billion, driven by record oil and gas production and higher commodity prices. The Houston-based company's diluted earnings per share rose to $5.33, up from $2.70 a year earlier. Adjusted net income, excluding certain items, climbed 73% to $2.54 billion, or $4.87 per share. Total revenue increased 46% year-over-year to $8.55 billion, reflecting higher production volumes and improved commodity price realizations.
EOG's total production reached a record 1.433 million barrels of oil equivalent per day (boe/d), up approximately 10% from 1.301 million boe/d a year earlier. Crude oil and condensate production increased to 550,400 barrels per day, while natural gas liquids output rose to 357,100 barrels per day. Natural gas production climbed to 3.15 billion cubic feet per day. Higher commodity prices, with the benchmark West Texas Intermediate crude averaging $85.68 per barrel, contributed to the earnings improvement.
The company generated $3.81 billion in operating cash flow and $2.18 billion in free cash flow, with the latter increasing approximately 57% year-over-year. EOG maintained cost discipline, reporting cash operating expenses of $10.49 per barrel of oil equivalent, below its guidance midpoint of $10.70. The company increased its regular quarterly dividend by 8% to $1.10 per share, payable on January 29, 2027, to shareholders of record on January 15.
During the third quarter, EOG returned approximately $1.54 billion to shareholders through $544 million in dividend payments and $1 billion in share repurchases. The company's net debt declined to $2.18 billion at the end of September, from $4.16 billion a year earlier. EOG also announced a new long-term natural gas sales agreement linked to the Japan-Korea Marker (JKM), expected to increase its exposure to premium-priced markets across its LNG feedgas contracts to more than 1 billion cubic feet per day by 2030.