EOG RESOURCES INC 8-K

What Happened
EOG Resources, Inc. filed a Form 8‑K dated January 12, 2026 (Item 2.02) reporting results of operations and financial condition items related to its commodity price‑risk management for the quarter ended December 31, 2025. The company reported it paid net cash of $21 million during Q4 2025 to settle financial commodity derivative contracts. EOG accounts for those derivatives — and a 10‑year Brent‑linked natural gas sales agreement — using mark‑to‑market accounting. The filing also discloses average NYMEX prices for the quarter (WTI $59.17/bbl; Henry Hub $3.55/MMBtu), notes that actual realizations differ by basis, quality and NGL component pricing, and includes comprehensive forward‑looking statement and risk disclosures (including references to the Encino acquisition). The report is signed by Ann D. Janssen, EVP & CFO.

Key Details

• Filed Form 8‑K dated January 12, 2026 (Item 2.02 — Results of Operations and Financial Condition).
• Q4 2025 net cash paid for settlements of financial commodity derivative contracts: $21 million.
• Q4 2025 NYMEX averages: WTI West Texas Intermediate = $59.17 per barrel; Henry Hub natural gas = $3.55 per MMBtu.
• EOG uses mark‑to‑market accounting for its financial commodity derivatives and its 10‑year Brent‑linked gas sales contract; no cash was received related to the Brent‑linked contract (deliveries begin January 2027).

Why It Matters
For investors, the $21 million cash outflow for hedge settlements affects near‑term cash flow but is separate from operating receipts; mark‑to‑market accounting means reported gains or losses on these contracts can create volatility in reported earnings even if cash flows occur at different times. Reported NYMEX averages provide context for commodity pricing exposure, but EOG cautions that actual realizations will differ by delivery location, quality and NGL mix. The Brent‑linked gas contract (starting in 2027) and the broad forward‑looking risk disclosures — including integration risk related to the Encino acquisition — are material items investors should monitor for future impacts on revenue, cash flow and reported results.