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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%.

While we acknowledge the potential of EOG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EOG and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Why These Energy Stocks Are Gaining This Week and 10 Best Income Stocks to Invest in Now

Disclosure. None.

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