10 Best Value Stocks to Buy According to Billionaires

7. EOG Resources, Inc. (NYSE:EOG)

Forward P/E as of June 30: ~12.0x

Number of Hedge Fund Holders: 64

Dollar Value of Billionaire Holdings: $599.9 million

Number of Billionaire Investors: 13

EOG Resources, Inc. (NYSE:EOG) is one of the 10 Best Value Stocks to Buy According to Billionaires. The company announced a definitive agreement with Canada Pension Plan Investment Board (CPP) and Encino Energy, according to which EOG Resources, Inc. (NYSE:EOG) will acquire Encino Acquisition Partners (EAP) for the consideration of $5.6 billion, including EAP’s net debt. The company currently expects to finance the acquisition via $3.5 billion of debt and $2.1 billion of cash on hand.

EOG Resources, Inc. (NYSE:EOG)’s management highlighted that the acquisition tends to combine large, premier acreage positions in the Utica, thereby creating a third foundational play for EOG along with its Delaware Basin and Eagle Ford assets. Notably, Encino’s acreage improves the quality and depth of EOG Resources, Inc. (NYSE:EOG)’s Utica position, resulting in the expansion of its multi-basin portfolio to over 12 billion barrels of oil equivalent net resource.

The transaction is immediately accretive to EOG Resources, Inc. (NYSE:EOG)’s net asset value and all per-share financial metrics. To be specific, the acquisition will be accretive on an annualized basis to 2025 EBITDA by 10%, and cash flow from operations and FCF by 9%.