EOG (NYSE: EOG) raises tax guide as $40 million derivative cash arrives

Posted by Brian Himes on Oct 8th, 2026

What happened

EOG Resources, Inc. (NYSE: EOG) said October 8, 2026, that third-quarter 2026 current tax expense guidance moved higher. The company now expects $835 million to $935 million, up from $545 million to $645 million in guidance issued with second-quarter 2026 results on August 4, 2026. EOG said higher crude oil prices in the third quarter and higher expected prices for full-year 2026 drove the change because of the ongoing conflict in the Middle East.

The company also said it received $40 million in net cash from settlements of commodity derivative contracts during the quarter. No cash came from the Brent Linked Gas Sales Contract because deliveries are expected to start in January 2027. U.S. NYMEX West Texas Intermediate crude averaged $85.68 per barrel for the quarter ended September 30, 2026.

Henry Hub natural gas averaged $2.95 per million British thermal units. EOG said its actual realizations for crude oil and natural gas differ from NYMEX prices because of delivery location, quality and revenue adjustments. For NGLs, actual realizations depend on extracted components including ethane, propane, butane and natural gasoline. EOG said it is not updating or confirming any other third-quarter 2026 or full-year 2026 ranges.

Key numbers

Metric	Latest	Change	Source
Third-quarter 2026 current tax expense guidance	$835 million to $935 million	from $545 million to $645 million, + $290 million	SEC 8-K
Net cash from settlements of commodity derivative contracts	$40 million		SEC 8-K
U.S. NYMEX West Texas Intermediate crude average	$85.68 per barrel		SEC 8-K
Henry Hub natural gas average	$2.95 per million British thermal units		SEC 8-K

Why it matters

The higher tax guide means more cash goes to current taxes in the quarter. That matters for a producer that relies on cash generation and capital discipline. OptimistFi's calculation shows the updated range is $290 million higher at both ends than the prior guidance. That makes tax expense and derivative cash the main moving parts in this filing.

The $40 million in net cash from derivative settlements is the filing's other quantified cash item. The Brent Linked Gas Sales Contract has not started delivering yet. The filing also shows that EOG links the tax increase to realized crude prices, which can change cash taxes quickly.

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What's next

Deliveries under the Brent Linked Gas Sales Contract are expected to start in January 2027. That is the next dated step investors can watch against this quarter's cash and tax update. If deliveries begin on schedule, the contract will add another reported cash source to compare with the $40 million from derivative settlements.

Sources

SEC 8-K — EOG updated third-quarter 2026 current tax expense guidance and reported $40 million in net cash from commodity derivative settlements.

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.