EOG - 2Q26 Preview; Expect A Positive Update; Delaware Well Productivity, Middle East Exploration in Focus

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EOG - 2Q26 Preview; Expect A Positive Update; Delaware Well Productivity, Middle East Exploration in Focus

Truist Securities

lower well costs, the well economics on these zones are comparable to more productive tier 1 zones. Additionally, initial '26 wells have

shown encouraging results improving +32% y/y vs. '25 wells on a first 3-month oil per 1k ft basis and ranks 1st among operators. While

third party data suggests EOG stepped up proppant intensity y/y through 1Q26 (+35%), we note the company has indicated no change

to its completion or development philosophy. Further, we note 1Q26 TILs appear more concentrated in the core of the play in Lea County

with lower GOR. EOG expects well productivity on a Bo/ft basis to be consistent to what was delivered last year.

Figure 1 - Delaware Well Productivity by Operator

Source: Enverus

Middle East exploration in focus. Investors remain eager for an update on Middle East operations, which could come with the 2Q print.

Recall, EOG was awarded a 900k net acre concession in the UAE last year and has three years to declare commerciality. Management

has indicated it would provide well results on the oil target in 2H26. Note that the Abu Dhabi National Oil Co. (ADNOC, Private) has drilled

horizontal wells in the past on the EOG bloc, providing the company with an initial data set to compare results to. Recall earlier this year,

we hosted Robin Mills, CEO of Qamar Energy who was upbeat around unconventional development in the UAE's existing fields and noted

that production could ramp to 200-300 kbd in the 2030s. In Bahrain, Bahrain, EOG Resources is engaged in an unconventional gas play,

specifically targeting tight gas sandstone formations in the country’s onshore territory with production sold into the local Bahrani market.