EOG in their Q1 2026 earnings call kept its 2026 capital budget flat at $6.5 billion but raised oil guidance by 2 Mb/d and NGL guidance by 6 Mb/d by shifting some capital out of Dorado, its South Texas dry-gas play, and into oil-weighted assets in the Permian and the Utica. CEO Ezra Yacob framed the move as a straightforward response to commodity signals, saying EOG is “reallocating some of the activity in Dorado to some of our more oil-weighted assets,” partly because “there’s a call across the world right now for increased oil supply.” Management stressed that Dorado remains a core long-term gas asset, but near-term drilling activity is being moderated while gas prices are soft.
EOG plans to reduce Dorado’s exit rate from $1B to $800MM while reallocating capital to add five net completions in the Delaware Basin and 10 net completions in the Utica. The Utica in particular is benefiting from strong drilling gains, including a 22% improvement in drilled feet per day versus the 2025 average, while EOG continues to push longer laterals 2-3 miles in the Delaware and 3-4 miles in the Utica and Eagle Ford. Management also highlighted that their Janus gas processing plant in the Delaware, constructed late 2025 reached full utilization in March, helping reduce gathering, processing and transportation costs.
