EOG · 10-Q · 2026Q2 · Full report

Supply Chain Constraints

EOG RESOURCES INC · 2026-08-04 · Importance 25 · Surprise 6

EOG’s self-sourced sand program provides supply certainty and improves operational efficiency in well completion operations. The company also enters into agreements with service providers when advantageous to secure the cost and availability of drilling and completion services. EOG pays third parties to process the majority of its natural gas production to extract NGLs, creating ongoing reliance on external processing capacity. Higher production in the Utica and Permian Basin increased gathering, processing and transportation costs, while Eagle Ford costs declined.

Key facts

• Important factors include weather and natural disasters, including its impact on crude oil and natural gas demand, and related delays in drilling and in the installation and operation (by EOG or third parties) of production, gathering, processing, refining, liquefaction, compression, storage, transportation, and export facilities. source
• Important factors include the availability, proximity and capacity of, and costs associated with, appropriate gathering, processing, compression, storage, transportation, refining, liquefaction and export facilities and equipment. source
• Important factors include environmental, health and safety laws and regulations relating to disposal of produced water, drilling fluids and other wastes, hydraulic fracturing and access to and use of water. source
• Important factors include the availability and cost of, EOG's ability to retain, and competition in the oil and gas exploration and production industry for, employees, labor and other personnel, facilities, equipment, materials (such as water, sand, fuel and tubulars) and services. source