EOG RESOURCES INCEOG

EOG RESOURCES INC Leases Disclosure

10-KFiled Feb 24, 20263 min read
Leases
Lease costs are classified by the function of the ROU asset. The lease costs related to exploration and development activities are initially included in the Oil and Gas Properties line on the Consolidated Balance Sheets and subsequently accounted for in accordance with the Extractive Industries - Oil and Gas Topic of the ASC. Variable lease cost represents costs incurred above the contractual minimum payments and other charges associated with leased equipment, primarily for drilling and fracturing contracts classified as operating leases. The components of lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows (in millions):

202520242023
Operating Lease Cost$467 $419 $387 
Finance Lease Cost:
Amortization of Lease Assets
31 33 33 
Interest on Lease Liabilities
3 4 5 
Variable Lease Cost165 122 91 
Short-Term Lease Cost334 535 567 
Total Lease Cost
$1,000 $1,113 $1,083 

The following table sets forth the amounts and classification of EOG's outstanding ROU assets and related lease liabilities at December 31, 2025 and 2024 and supplemental information for the years ended December 31, 2025 and 2024 (in millions, except lease terms and discount rates):
DescriptionLocation on Balance Sheet20252024
Assets
Operating Leases
Other Assets$1,176 $1,005 
Finance Leases
Property, Plant and Equipment, Net (1)
110 141 
Total
$1,286 $1,146 
Liabilities
Current
Operating Leases
Current Portion of Operating Lease Liabilities$472 $315 
Finance Leases
Current Portion of Long-Term Debt27 32 
Long-Term
Operating Leases
Other Liabilities727 725 
Finance Leases
Long-Term Debt90 118 
Total
$1,316 $1,190 
(1)    Finance lease assets are recorded net of accumulated amortization of $251 million and $219 million at December 31, 2025 and 2024, respectively.

20252024
Weighted Average Remaining Lease Term (in years):
Operating Leases4.25.0
Finance Leases4.24.5
Weighted Average Discount Rate:
Operating Leases4.4 %4.6 %
Finance Leases2.6 %2.6 %
Cash paid for leases for the years ended December 31, 2025, 2024 and 2023 was as follows (in millions):
202520242023
Repayment of Operating Lease Liabilities Associated with Operating Activities$241 $226 $226 
Repayment of Operating Lease Liabilities Associated with Investing Activities234 202 172 
Repayment of Finance Lease Liabilities32 33 32 

Non-cash leasing activities for the year ended December 31, 2025, included the additions of $587 million of operating leases and no finance leases. Non-cash leasing activities for the year ended December 31, 2024, included the additions of $403 million of operating leases and no finance leases. Non-cash leasing activities for the year ended December 31, 2023, included the additions of $727 million of operating leases and no finance leases.

At December 31, 2025, the future minimum lease payments under non-cancellable leases were as follows (in millions):
Operating LeasesFinance Leases
2026$515 $30 
2027254 30 
2028180 30 
2029142 30 
203093 4 
2031 and beyond143 — 
Total Lease Payments
1,327 124 
Less: Discount to Present Value128 7 
Total Lease Liabilities
1,199 117 
Less: Current Portion of Lease Liabilities472 27 
Long-Term Lease Liabilities
$727 $90 

At December 31, 2025, EOG had additional minimum lease payments of $254 million, which are expected to commence beginning in 2026 with lease terms of two to seventeen years.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 27, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 27, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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