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EOG (EOG Resources) Degree of Operating Leverage : 76.45 (As of Mar. 2025)


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What is EOG Resources Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. EOG Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 76.45. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for EOG Resources's Degree of Operating Leverage or its related term are showing as below:

EOG's Degree of Operating Leverage is ranked worse than
97.47% of 909 companies
in the Oil & Gas industry
Industry Median: 0.95 vs EOG: 76.45

EOG Resources Degree of Operating Leverage Historical Data

The historical data trend for EOG Resources's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

EOG Resources Degree of Operating Leverage Chart

EOG Resources Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.64 -17.09 1.30 0.11 -17.81

EOG Resources Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.26 3.08 -18.77 -17.81 76.45

Competitive Comparison of EOG Resources's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, EOG Resources's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


EOG Resources's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, EOG Resources's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where EOG Resources's Degree of Operating Leverage falls into.


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EOG Resources Degree of Operating Leverage Calculation

EOG Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 7947 (Mar. 2025) / 9533 (Mar. 2024) - 1 )/( 23386 (Mar. 2025) / 23437 (Mar. 2024) - 1 )
=-0.1664/-0.0022
=76.45***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


EOG Resources  (NYSE:EOG) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


EOG Resources Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of EOG Resources's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


EOG Resources Business Description

Industry
Address
1111 Bagby, Sky Lobby 2, Houston, TX, USA, 77002
EOG Resources is an oil and gas producer with acreage in several US shale plays, primarily in the Permian Basin and the Eagle Ford. At the end of 2024, it reported net proven reserves of 4.7 billion barrels of oil equivalent. Net production averaged roughly 1,062 thousand barrels of oil equivalent per day in 2024 at a ratio of 69% oil and natural gas liquids and 31% natural gas.
Executives
Jeffrey R. Leitzell officer: EVP Exploration and Production 1111 BAGBY, SKY LOBBY 2, HOUSTON TX 77002
Janet F Clark director
Michael P Donaldson officer: VP, General Counsel & Corp Sec 1111 BAGBY STREET, SKY LOBBY 2, HOUSTON TX 77002
Charles R Crisp director 1301 MCKINNEY STE 700, HOUSTON TX 77010
Ezra Y Yacob officer: EVP Exploration and Production 1111 BAGBY, SKY LOBBY 2, HOUSTON TX 77002
Helms Lloyd W Jr officer: EVP, Operations 1111 BAGBY, SKY LOBBY 2, HOUSTON TX 77002
Lynn A Dugle director 4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Michael T. Kerr director 1111 BAGBY, SKY LOBBY 2, HOUSTON TX 77002
Kenneth W. Boedeker officer: EVP Exploration and Production 1111 BAGBY, SKY LOBBY 2, HOUSTON TX 77002
Timothy K Driggers officer: VP Accounting & Land Admin
Ann D. Janssen officer: VP, Accounting 1111 BAGBY, SKY LOBBY 2, HOUSTON TX 77002
Donald F Textor director P O BOX 4362, HOUSTON TX 772104362
Frank G Wisner director P O BOX 4362, HOUSTON TX 7721042362
Julie J Robertson director 13135 S DAIRY ASHFORD, STE 800, SUGAR LAND TX 77478
David W Trice officer: EVP, Exploration & Production 1111 BAGBY, SKY LOBBY 2, HOUSTON TX 77002