Summary
EOG Resources, Inc. (EOG) has issued an update on its projected current tax expense for the first quarter of 2026. The company now anticipates its current tax expense to be between $500 million and $600 million, a significant increase from the previously forecasted range of $230 million to $330 million. This upward revision is primarily attributed to higher-than-expected crude oil prices realized in the first quarter and anticipated for the full year, driven by geopolitical events in the Middle East. EOG explicitly stated that no other guidance ranges for the first quarter or full year 2026 are being updated or confirmed at this time. Additionally, EOG provided details on its commodity price risk management activities. In the first quarter of 2026, the company paid a net $53 million for settlements related to its financial commodity derivative contracts. Deliveries under its 10-year natural gas sales agreement, which is linked to Brent crude oil prices, are not expected to commence until January 2027, thus no cash was received from this contract during the quarter. The filing also provided average NYMEX WTI crude oil and Henry Hub natural gas prices for the quarter, noting that actual realized prices may differ due to various factors.
Key Highlights
- 1EOG Resources revises Q1 2026 current tax expense guidance upward to $500 million - $600 million, from $230 million - $330 million.
- 2The increase in tax expense is driven by higher realized crude oil prices due to Middle East conflict.
- 3No other Q1 or full-year 2026 guidance ranges are being updated.
- 4Company paid $53 million in net cash for financial commodity derivative contract settlements during Q1 2026.
- 5Deliveries for the Brent-linked natural gas sales contract are expected to begin in January 2027, with no cash received in Q1 2026.
- 6Average NYMEX WTI crude oil was $72.17/bbl and NYMEX Henry Hub natural gas was $4.96/MMBtu in Q1 2026.