EOG Resources (EOG) has agreed to acquire Encino Acquisition Partners for $5.6bn, including net debt, from Canada Pension Plan Investment Board and Encino Energy.
The acquisition will be financed with $3.5bn in debt and $2.1bn in cash reserves. It is expected to enhance EOG’s presence in the Utica shale play, increasing its net core acreage by 675,000 acres to 1.1 million acres.
The expanded holdings are projected to yield over two billion barrels of oil equivalent in undeveloped resources.
Post-acquisition, EOG’s production is expected to reach 275,000 barrels of oil equivalent per day, establishing it as a leading producer in the region.
EOG chairman and CEO Ezra Yacob said: “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.”
The acquisition enhances EOG’s contiguous liquids-rich acreage by 235,000 net acres, resulting in a combined position of 485,000 net acres.
Additionally, it adds 330,000 net acres in the natural gas window, providing access to premium-priced markets. EOG also increases its working interest by over 20% in its northern acreage.
EOG anticipates generating over $150m in synergies within the first year through reduced capital, operating, and financing costs. The acquisition supports EOG’s commitment to returning capital to shareholders, with a 5% dividend increase announced.
The Board declared a dividend of $1.02 per share, payable on 31 October 2025, to shareholders of record as of 17 October 2025. The annual rate is set at $4.08.
Further details on the acquisition’s impact on EOG’s 2025 capital and volume guidance will be provided post-closing, anticipated in the second half of 2025. The deal is subject to regulatory approval under the Hart-Scott-Rodino Act and other customary conditions.
Goldman Sachs is acting as EOG’s exclusive financial advisor, with Goldman Sachs Bank USA providing financing. Wachtell, Lipton, Rosen & Katz serves as EOG’s lead legal advisor, with Akin Gump Strauss Hauer & Feld also offering legal counsel.
