EOG Resources, Inc. (EOG) to Buy Encino Acquisition Partners in $5.6 Billion Deal

On Friday, EOG Resources, Inc. (NYSE:EOG) announced that it will acquire Encino Acquisition Partners from the Canada Pension Plan Investment Board in a $5.6 billion deal, including debt. The move is set to expand EOG’s presence in the Utica shale, with the transaction funded through $3.5 billion in debt and $2.1 billion in available cash.

Encino, a major private oil and gas producer in the US, operates in Ohio’s Utica shale region. With the acquisition, EOG Resources, Inc. (NYSE:EOG) will gain 675,000 net core acres, boosting its total Utica footprint to around 1.1 million net acres.

This area holds over 2 billion barrels of oil equivalent (boe) in undeveloped resources, and combined production is expected to reach 275,000 boe per day, positioning EOG Resources, Inc. (NYSE:EOG) as a key player in the region.

Ezra Y. Yacob, Chairman and Chief Executive Officer of EOG, made the following comment:

“This acquisition combines large, premier acreage positions in the Utica, creating a third foundational play for EOG alongside our Delaware Basin and Eagle Ford assets. Encino’s acreage improves the quality and depth of our Utica position, expanding EOG’s multi-basin portfolio to more than 12 billion barrels of oil equivalent net resource.

EOG Resources, Inc. (NYSE:EOG) stated that the acquisition will increase its 2025 EBITDA by 10% annually and raise its operating and free cash flow by 9%.

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