EOG Resources’ Q3 2026 earnings call centered on how its US wells keep getting better. Oil production hit a record 550 Mbbl/d, above guidance, and the company raised its full-year guidance to 550 Mbbl/d (from 549) even after selling its legacy Barnett and Woodford positions. Q4 guidance is 548-553 Mbbl/d. Delaware Basin wells have come in “a little better than our expectations,” said Keith Trasko, SVP of Exploration and Production, holding flat to slightly up versus 2025. CEO Ezra Yacob said EOG expects low single-digit oil growth in 2027 at roughly its current activity level, adding, “If current oil supply demand fundamentals persist, we believe the market needs more oil supply next year.”
Yacob credited much of the gain to better completions, specifically “high intensity fracs and adding horsepower,” an approach EOG developed in the Eagle Ford and then carried to the Permian, the Utica and its South Texas gas acreage. In the Delaware, lower costs have made more rock worth drilling. “We have more targets than I ever imagined several years ago,” Trasko said, and EOG expects consistent returns there for the next 10 years. In the Utica, where EOG expanded last year by buying Encino, its rigs drill about 24% more feet per day than in early 2025 (see chart below). Those gains are why EOG still expects well costs to fall slightly this year despite pricier steel and diesel. COO Jeffrey Leitzell expects “modest inflation next year” for drilling and completions, so 2027 will test whether efficiency can keep outrunning service costs.
Increased Productivity in the Utica post Encino Acquisition (Source: EOG)
On gas, EOG signed a 10-year supply deal with ENGIE priced off JKM, the Asian LNG benchmark, starting by 2030, which management said lifts its LNG-linked sales to more than 1 Bcf/d. It also approved doubling its Janus processing plant in the Delaware to 600 MMcf/d by the second half of 2028, as new pipelines bring more Permian gas to market and processing gets tighter. Yacob described the strategy as growing “essentially a premium gas company underneath the umbrella of our premium oil company,” and said the company isn’t investing “to move a whole bunch of gas to the Gulf Coast and hope” for good prices.
