EOG Resources is an independent oil and gas exploration and production company focused primarily on shale drilling in basins across the United States, including the Permian Basin and Eagle Ford in Texas. Unlike integrated majors that also run refineries and retail fuel stations, EOG's earnings move directly with crude oil and natural gas prices, since it only produces and sells the raw commodities rather than processing them further downstream. The company has built a reputation for capital discipline, prioritizing drilling only its highest-return well locations and returning cash to shareholders through dividends and buybacks rather than chasing production growth at any cost. EOG's well economics and drilling inventory depend heavily on which shale formations it has accumulated acreage in, since the best rock in the best locations tends to produce meaningfully more oil and gas per well than average acreage.