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EOG, EOG Resources Inc.

Oil & Gas Producers capital-intensive Cyclical

EOG finds crude oil and natural gas in the ground, drills for it, and sells what comes out — almost entirely in the United States, with a small operation in Trinidad. The buyers are refiners, pipelines, and the other handlers of raw hydrocarbons, who pay the going market price. The work is to spend heavily up front on land and wells, then earn it back as the production sells.

EOG's operations are all crude oil and natural gas exploration and production related.

EOG is also focused on innovation and cost-effective utilization of advanced technology associated with three-dimensional seismic and microseismic data, the development of reservoir simulation models and the use of improved drilling equipment and completion technologies for horizontal drilling and formation evaluation.

Latest annual: FY2025 10-K

EOG · EOG Resources Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$22.6B

−4.5% YoY · 15% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $23.9B 5-yr avg $23.0B

Operating margin 29.8% 5-yr avg 34.7%

ROIC 16% 5-yr avg 24%

Owner-earnings margin 25% 5-yr avg 30%

Free cash flow margin 19% 5-yr avg 25%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is United States (98%) and Trinidad (2%).
Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: The product is a commodity, so EOG cannot set its price; that is settled in markets it does not control. Cost is therefore the question that decides the outcome — whether EOG can lift a barrel for less than the next producer, because the low-cost operator earns through the lean years while the high-cost one is forced to sell or shut in. Two things ride alongside: the reinvestment runway, since every barrel sold must be replaced by finding another, and the discipline to keep debt light, so a price collapse is survived rather than fatal. Watch the margins, the returns on capital, and the debt in the record below for whether the cost edge is real.
Is it a good business?: Return on capital has run in the teens (median 15%, above 15% in 5 of 10 years). Owner earnings agree: roughly 25% of revenue reaches owners as cash, consistently. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Drafted from the company's filings and reviewed by hand; every number is shown in full in the sections below.

Where the money comes from

read the 10-K →

The biggest segment, United States, is also where the profit is made: 98% of revenue and 99% of the profitable segments' operating profit. Other International ran a $86M operating loss.

Revenue by reportable segment, FY2025

Operating profit profitable segments only

United States98%$22.3B99% of profit
Trinidad2%$359M1% of profit
Other International0%$4Mloss of $86M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of the profitable segments' operating profit (a loss-making segment carries its loss in dollars in the legend, not a share of the bar), before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$7.7B	$11.2B	$17.3B	$17.4B	$11.0B	$18.6B	$25.7B	$24.2B	$23.7B	$22.6B	$23.9B	RevenueRevenue
5%	4%	2%	3%	4%	3%	2%	3%	3%	4%	3%	SG&A / revenueSG&A/rev
($1.2B)	$926M	$4.5B	$3.7B	($544M)	$6.1B	$10.0B	$9.6B	$8.1B	$6.4B	$7.1B	Operating incomeOp. inc.
−16.0%	8.3%	25.9%	21.3%	−4.9%	32.7%	38.8%	39.7%	34.1%	28.2%	29.8%	Operating marginOp. mgn
($1.1B)	$2.6B	$3.4B	$2.7B	($605M)	$4.7B	$7.8B	$7.6B	$6.4B	$5.0B	$5.5B	Net incomeNet inc.
—	—	19%	23%	—	21%	22%	22%	22%	22%	22%	Effective tax rateTax rate
											Cash flow & returns
$2.4B	$4.3B	$7.8B	$8.2B	$5.0B	$8.8B	$11.1B	$11.3B	$12.1B	$10.0B	$10.7B	Operating cash flowOp. cash
$3.6B	$3.4B	$3.4B	$3.8B	$3.4B	$3.7B	$3.5B	$3.5B	$4.1B	$4.5B	$4.6B	DepreciationDeprec.
($226M)	($1.9B)	$759M	$1.5B	$2.1B	$324M	($341M)	$77M	$1.4B	$387M	$359M	Working capital & otherWC & other
$2.5B	$4.0B	$5.8B	$6.2B	$3.2B	$3.6B	$4.6B	$5.4B	$5.4B	$6.1B	$6.2B	CapexCapex
32.5%	35.2%	33.8%	35.4%	29.4%	19.5%	18.0%	22.3%	22.6%	27.0%	26.1%	Capex / revenueCapex/rev
($131M)	$314M	$4.3B	$4.4B	$1.8B	$5.2B	$7.6B	$7.8B	$8.0B	$5.6B	$6.1B	Owner earningsOwner earn.
−1.7%	2.8%	25.1%	25.4%	16.0%	27.6%	29.4%	32.4%	33.9%	24.7%	25.5%	Owner earnings marginOE mgn
($131M)	$314M	$1.9B	$2.0B	$1.8B	$5.2B	$6.5B	$6.0B	$6.8B	$3.9B	$4.5B	Free cash flowFCF
−1.7%	2.8%	11.2%	11.6%	16.0%	27.6%	25.2%	24.6%	28.7%	17.4%	18.8%	Free cash flow marginFCF mgn
$0	$0	$0	—	—	—	—	$0	$0	$4.5B	$4.5B	AcquisitionsAcquis.
$82M	$63M	$63M	$25M	$16M	$41M	$118M	$1.0B	$3.2B	$2.6B	—	BuybacksBuybacks
-5%	4%	15%	12%	-2%	22%	33%	28%	23%	15%	16%	ROICROIC
-8%	16%	18%	13%	-3%	21%	31%	27%	22%	17%	18%	Return on equityROE
−8%	16%	18%	13%	−3%	21%	31%	27%	22%	17%	18%	Retained to equityRetained/eq
											Balance sheet
$1.6B	$834M	$1.6B	$2.0B	$3.3B	$5.2B	$6.0B	$5.3B	$7.1B	$3.4B	$3.8B	Cash & investmentsCash+inv
$1.2B	$1.6B	$1.5B	$1.6B	$1.5B	$2.3B	$2.8B	$2.7B	$2.6B	$2.7B	$3.6B	ReceivablesReceiv.
$350M	$484M	$859M	$767M	$629M	$584M	$1.1B	$1.3B	$985M	$1.0B	$955M	InventoryInvent.
$1.5B	$1.8B	$2.2B	$2.4B	$1.7B	$2.2B	$2.5B	$2.4B	$2.5B	$2.9B	$3.2B	Accounts payablePayables
$55M	$234M	$80M	($43M)	$470M	$677M	$1.3B	$1.6B	$1.2B	$791M	$1.4B	Operating working capitalOper. WC
$3.4B	$3.3B	$5.1B	$5.3B	$5.9B	$8.6B	$10.5B	$9.9B	$11.2B	$7.7B	$9.0B	Current assetsCur. assets
$2.0B	$2.7B	$3.7B	$4.5B	$3.5B	$4.0B	$5.5B	$4.1B	$5.4B	$4.7B	$5.2B	Current liabilitiesCur. liab.
1.7×	1.2×	1.4×	1.2×	1.7×	2.1×	1.9×	2.4×	2.1×	1.6×	1.7×	Current ratioCurr. ratio
$29.3B	$29.8B	$33.9B	$37.1B	$35.8B	$38.2B	$41.4B	$43.9B	$47.2B	$51.8B	$53.4B	Total assetsAssets
$7.0B	$6.4B	$6.1B	$5.2B	$5.8B	$5.1B	$5.1B	$3.8B	$4.8B	$7.9B	$7.9B	Total debtDebt
$5.4B	$5.6B	$4.5B	$3.1B	$2.5B	($100M)	($894M)	($1.5B)	($2.3B)	$4.5B	$4.1B	Net debt / (cash)Net debt
-4.3×	3.4×	18.2×	20.0×	-2.7×	34.3×	55.7×	64.9×	58.6×	27.2×	28.0×	Interest coverageInt. cov.
$14.0B	$16.3B	$19.4B	$21.6B	$20.3B	$22.2B	$24.8B	$28.1B	$29.4B	$29.8B	$30.9B	Shareholders’ equityEquity
1.7%	1.2%	0.9%	1.0%	1.3%	0.8%	0.5%	0.7%	0.8%	1.0%	0.9%	Stock comp / revenueSBC/rev
											Per share
553M	579M	580M	581M	579M	584M	587M	584M	569M	546M	535M	Shares out (diluted)Shares
$13.83	$19.37	$29.76	$29.91	$19.05	$31.92	$43.79	$41.41	$41.65	$41.45	$44.64	Revenue / shareRev/sh
$-1.98	$4.46	$5.89	$4.71	$-1.04	$7.99	$13.22	$13.00	$11.25	$9.12	$10.27	EPS (diluted)EPS
$-0.24	$0.54	$7.47	$7.60	$3.05	$8.82	$12.86	$13.44	$14.12	$10.23	$11.36	Owner earnings / shareOE/sh
$-0.24	$0.54	$3.32	$3.46	$3.05	$8.82	$11.03	$10.20	$11.93	$7.20	$8.40	Free cash flow / shareFCF/sh
$4.50	$6.83	$10.06	$10.59	$5.60	$6.23	$7.87	$9.22	$9.41	$11.20	$11.64	Cap. spending / shareCapex/sh
$25.27	$28.14	$33.36	$37.25	$35.06	$37.98	$42.21	$48.10	$51.58	$54.64	$57.77	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+13.0%/yr	+16.8%/yr
Owner earnings / share	—	+27.4%/yr
Capital spending / share	+10.7%/yr	+14.9%/yr
Book value / share	+8.9%/yr	+9.3%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Gathering, Processing and Marketing-15.3%
“Gathering, processing and marketing revenues less marketing costs in 2025 increased $36 million compared to 2024, primarily due to higher margins on natural gas marketing activities and sand sales, partially offset by lower margins on crude oil marketing activities.”
✓ direction matches the filed record
Natural Gas+79.9%
“Natural gas revenues in 2025 increased $1,240 million, or 80%, to $2,791 million from $1,551 million in 2024 primarily due to a higher composite natural gas price ($783 million) and an increase in natural gas deliveries ($457 million).”
✓ figure matches the filed record

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

546Mpeak FY2022

ROIC

15%low FY2016

Net debt ÷ owner earnings

0.8×peak FY2017

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$5.6Bowner earningsvs.$5.0Bnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $5.6B of owner earnings, the operating cash left after the $4.5B it takes just to hold its position. It put $1.7B more into growth; free cash flow, after that spending, was $3.9B.

Reported net income$5.0B

Owner earnings$5.6B · 25% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$5.0B	$6.4B	$7.6B	$7.8B	$4.7B
Depreciation & amortizationnon-cash charge added back	+$4.5B	+$4.1B	+$3.5B	+$3.5B	+$3.7B
Stock-based compensationreal costnon-cash, but a real cost	+$216M	+$199M	+$177M	+$133M	+$152M
Working capital & othertiming of cash in and out, other non-cash items	+$387M	+$1.4B	+$77M	−$341M	+$324M
Cash from operations	$10.0B	$12.1B	$11.3B	$11.1B	$8.8B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$4.5B	−$4.1B	−$3.5B	−$3.5B	−$3.6B
Owner earnings	$5.6B	$8.0B	$7.8B	$7.6B	$5.2B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$1.7B	−$1.2B	−$1.9B	−$1.1B	—
Free cash flow	$3.9B	$6.8B	$6.0B	$6.5B	$5.2B
Owner-earnings marginowner earnings ÷ revenue	25%	34%	32%	29%	28%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $4.5B, roughly its depreciation, the rate its assets wear out). The other $1.7B of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $216M), owner earnings is nearer $5.4B.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 27.2×

Comfortable

Operating income $6.4B ÷ interest expense $235M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $4.5B · 0.7× operating profit

Modest net debt

Cash $3.4B − debt $7.9B

What this means
Netting $3.4B of cash and short-term investments against $7.9B of debt leaves $4.5B owed, about 0.7× a year's operating profit (1.2× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 15%

Solid through the cycle

10-yr median, range -5%–33%; 15% latest = NOPAT $5.0B ÷ invested capital $34.4B

Industry peers: median 7%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 15% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 25%

High through the cycle

10-yr median margin, range -2%–34%; latest $5.6B = operating cash $10.0B − maintenance capex $4.5B

Industry peers: median 20%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 25% of revenue this year, a 25% median across 10 years. It chose to put $1.7B more into growth, so free cash flow this year was $3.9B — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $216M of SBC) leaves $5.4B.
Are earnings backed by cash? 2.02×

Cash-backed

Cash from ops $10.0B ÷ net income $5.0B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 46%

Returns about half

Dividends + buybacks $2.6B ÷ Owner Earnings $5.6B

What this means
Of $5.6B Owner Earnings, $2.6B (46%) went back to shareholders, $0 dividends, $2.6B buybacks. Net of $216M stock comp, the real buyback was about $2.3B. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.37×

Expanding

Capex $6.1B ÷ depreciation $4.5B

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $22.6B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.63×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $7.9B vs $3.0B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 2 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +287%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $11.88/share (latest year $9.35), the averaged base the calculator's gate runs on, and book value is $56.01/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 8 of 10

What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 5 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 6% → 34% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about 6% early to 34% lately, median 26% — pricing power intact or improving.
Reinvestment, incremental ROIC —

What this means
The reinvested base moved too little against the change in profit to read a reliable return on it here — the figure would be a small-denominator artifact, not a moat. Judge this one on the owner-earnings record and the cash it returns instead.
Owner earnings growth +61%/yr

What this means
Owner earnings grew about 61% a year over the record.
Worst year 2016 · −16.0% op. margin

What this means
Operations went underwater in 2016, understand why before trusting the good years.
Share count −0.1%/yr

What this means
Roughly flat share count, little dilution, little buyback.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$9.0B

Cash & short-term investments$3.8B
Receivables$3.6B
Inventory$955M
Other current assets$562M

Current liabilities$5.2B

Debt due within a year$27M
Accounts payable$3.2B
Other current liabilities$2.0B

Current ratio1.72×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.53×stricter: inventory excluded

Cash ratio0.74×strictest: cash alone against what's due

Working capital$3.7Bthe cushion left after near-term bills

Debt due this year vs. cash$27M due · $3.8B cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+22.1%the freshest read on whether the business is still growing

Current ratio, recent quarters2.1× → 1.7×

Deeper floors

Tangible book value$30.9Bequity stripped of goodwill & intangibles

Debt incl. operating leases$9.0B$1.1B of it operating leases; with finance leases, “total fixed claims” below reaches $9.3B (annual-report basis)

From the company's latest filing.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, operating and finance leases together, and what it adds to the debt on the page above.

Operating leasesFinance leases

'26$545M

'27$284M

'28$210M

'29$172M

'30$97M

later$143M

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$545Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$1.5Bevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$1.3Bthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$7.9B

Lease obligations (present value)$1.3B

Total fixed claims on the business$9.3B

Counting the leases the way Buffett does, the fixed claims on this business come to $9.3B, of which the leases are 14%. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Dec 31, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

How the cash was used, 2016–2025

Over the record, the business generated $81.0B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$46.8B · 58%
Buybacks$7.3B · 9%
Retained (debt / cash)$26.9B · 33%

Returned to owners$7.3B
16% of the owner earnings the business produced over the span, $0 as dividends and $7.3B as buybacks.
Average price paid for buybacks$122.07
Across the years where the filing reports a share count, 56M shares were bought for $6.8B, about $122.07 each.
Net change in share count−3.3%
The diluted count fell from 553M to 535M, so the buybacks outran the stock issued to staff.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained18%
Of the earnings it kept rather than paid out ($31.2B over the span), annual owner earnings (first three years vs last three) grew $5.6B, so each retained $1 added about 0.18 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Mr. Yacob	$8.6M	$23.4M	$5.2B
2021	Mr. Yacob	$9.8M	$13.9M	$5.2B
2022	Mr. Yacob	$12.6M	$19.0M	$7.6B
2023	Mr. Yacob	$14.6M	$11.5M	$7.8B
2024	Mr. Yacob	$16.2M	$17.1M	$8.0B
2025	Mr. Yacob	$17.6M	$10.1M	$5.6B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

CEO pay ratio78:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$216M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 3% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why EOG Resources Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

None of the 6 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Acquisitions as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Oil & Gas Producers

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
EOGEOG Resources Inc.	$22.6B	—	27.0%	15%	25%
OXYOccidental Petroleum Corporation	$21.6B	86%	17.9%	7%	21%
DVNDevon Energy Corporation	$16.8B	53%	20.7%	12%	20%
FANGDiamondback Energy Inc.	$15.0B	—	43.6%	7%	47%
EXEExpand Energy Corporation	$12.1B	—	-0.9%	-0%	5%
OVVOvintiv	$8.7B	—	17.7%	12%	17%
EQTEQT Corporation	$8.6B	63%	-3.8%	-1%	18%
CTRACoterra Energy Inc.	$7.3B	—	34.8%	9%	33%
Group median	—	—	19.3%	8%	20%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what EOG Resources Inc. has delivered.

Today’s price $

Through the cycle, EOG Resources Inc. earns about $5.7B on its 25.2% median owner-earnings margin. This year’s 24.7% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($5.7B) Net of stock comp (−$224M) Steady-state · maintenance capex ($6.3B)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+2%/yr

Owner-earnings growth · ’16→’25+57%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $4.5B on 533M shares outstanding, per the 10-Q cover, as of 2026-04-28; net debt $4.1B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($6.2B) runs well above depreciation ($4.6B), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $6.3B, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh EOG against another business →

Cite: Owner Scorecard, "EOG Resources Inc. (EOG), the owner's record," https://ownerscorecard.com/c/EOG, data as of 2026-07-09.

Manual order: ← ENVX its page in the Manual EOLS →

Industry order: ← EGY the Oil & Gas Producers chapter EQT →