Stock Analysis

EOG Resources (NYSE:EOG) Launches Water Treatment Pilot With TETRA Technologies In 2025

NYSE:EOG
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EOG Resources (NYSE:EOG) recently announced a collaborative pilot project with TETRA Technologies, utilizing TETRA's desalination technology to address produced water challenges in oil and gas wells. This partnership was among the factors likely buoying EOG's shares, which rose 7% over the last quarter. Despite the broader market facing uncertainty linked to new auto tariffs and tepid economic data, EOG's steady production results and increased dividend declarations reinforced investor confidence. The company's solid quarterly performance, coupled with ongoing stock repurchases, contributed positively to its overall share price movement.

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NYSE:EOG Revenue & Expenses Breakdown as at Mar 2025
NYSE:EOG Revenue & Expenses Breakdown as at Mar 2025

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The past five years have seen EOG Resources achieve a very large total return of 375.17%, including both share price appreciation and dividends. A key part of this success was the company's strategic expansion into international markets like Trinidad and Bahrain, which opened new revenue streams amid growing natural gas demand. Additionally, domestic development in emerging plays like Utica and Dorado helped boost production, enhancing overall revenue. EOG also invested in operational efficiencies, such as longer lateral drilling and in-house technologies, allowing the company to optimize costs and maximize margins over time. Strategic infrastructure projects, including the Verde pipeline, further improved market access and price realizations, bolstering revenue.

While EOG's revenue slightly declined in 2024, with full-year earnings down to US$6.40 billion from US$7.59 billion the previous year, the company's ongoing commitment to shareholder returns through dividends and share repurchases marked a substantial influence on its stock performance. Over the last year, despite a decrease in net profit margins, EOG maintained a robust return on equity and outperformed its own historical growth, although it underperformed the broader U.S. market and oil and gas industry.

Assess EOG Resources' previous results with our detailed historical performance reports.

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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About NYSE:EOG

EOG Resources

Explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins in the United States, the Republic of Trinidad and Tobago, and internationally.

Undervalued with excellent balance sheet and pays a dividend.