EOG Resources to buy Encino Acquisition for $5.6 billion

HOUSTON, May 30, 2025 – EOG Resources will acquire fellow Houston-based player Encino Acquisition Partners from CPP Investments and Encino Energy for USD 5.6 billion to expand its Utica shale assets, the company said Friday.

The acquisition includes 675,000 net core acres (2,731.6 square kilometres) in the Utica shale, increasing EOG’s position to 1.1 million net acres (4,451.5 square kilometres) and boosting its multi-basin portfolio to over 12 billion boe in net resource. The transaction is expected to be funded through USD 3.5 billion of debt and USD 2.1 billion of cash.

“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,” EOG chairman and chief executive Ezra Y. Yacob said. “Encino’s acreage improves the quality and depth of our Utica position.”

“We are excited to execute on this unique opportunity that is immediately accretive to our per-share metrics and meets our strict criteria for acquisitions – high quality acreage with exploration upside, competitive with our current inventory, gained at an attractive price,” Yacob said.

“Our ability to execute on the Encino acquisition without diluting our shareholders will be a textbook example of how EOG utilises its industry leading balance sheet.”

The deal boosts EOG’s daily output in the region to 275,000 boe, with financial metrics projected to increase 2025 EBITDA by 10% and cashflow by 9%. EOG also gains 485,000 contiguous net acres (1,962.7 square kilometres) in the liquids-rich volatile oil window and 330,000 net acres (1,335.5 square kilometres) in the natural gas window.

The company expects to generate over USD 150 million in first-year synergies and has announced a 5% increase in its quarterly dividend to USD 1.02 per share.

Encino Acquisition Partners was formed in 2017 through a partnership between Encino Energy and CPP Investments, focused on acquiring and developing large-scale oil and gas assets in the USA. The company’s flagship operation is in the Utica shale in Ohio, where it became a leading private operator with a strong production base and infrastructure. Encino has emphasised capital discipline, operational efficiency and environmental responsibility in its development approach.

EOG Resources is a leading independent crude oil and natural gas company headquartered in Houston, Texas. It operates in the United States, Trinidad and Tobago and China, with core operations in shale plays such as the Delaware Basin, Eagle Ford and Powder River Basin. The company is known for its focus on operational efficiency, disciplined capital allocation and maintaining a strong balance sheet.

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