EOG Resources (NYSE:EOG) Declares US$0.98 Dividend, Reports US$5.7 Billion Revenue for Q1 2025

EOG Resources (NYSE:EOG) recently announced a first-quarter dividend affirmation of $0.975 per share amid a backdrop of declining revenues and earnings. The company reported a year-over-year revenue decrease of $454 million and a reduction in net income by $326 million. These results coincide with a broader market surge supported by strong job data and positive economic signs, with the S&P 500 on a notable winning streak. Despite the market climbing 1.8% over the past week, EOG's 1.57% stock price decline highlights the distinct impact of its earnings report and perhaps some investor concerns about its short-term financial performance.

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The recent affirmation of EOG Resources' US$0.975 dividend, despite a backdrop of declining revenues by US$454 million and a US$326 million decrease in net income, reflects the company's commitment to maintaining shareholder returns. Over the past five years, EOG Resources has achieved a total return of approximately 194.28%. This significant increase over the longer term contrasts with its recent one-year underperformance against the US Oil and Gas industry, which saw a return of 8.9%.

EOG's foray into international markets like Trinidad and Bahrain, alongside domestic expansions in natural gas, is set to enhance cash flows and potentially bolster revenue. However, the immediate financial impact may involve increased operational costs and tax changes, raising risks to short-term profitability. Analysts forecast a 1.2% annual revenue growth over the next three years and expect earnings to decrease to US$6 billion by 2028, slightly down from the current US$6.4 billion. These figures suggest challenges for EOG in aligning with the consensus price target of US$135.75, representing a 16.8% premium over the current price of US$112.93.

Gain insights into EOG Resources' future direction by reviewing our growth report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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