EOG Resources has signed a decisive agreement with the Canada Pension Planning Investment Committee to acquire Encino acquisition partners from Encino Energy for $5.6 billion, including net liabilities.
The move is set to change EOG status on Utica Shale Play, significantly expanding Netcore Acres.
The acquisition will increase EOG’s Utica location to 1.1 million acres, increasing undeveloped net resources (BBOE/D) worth more than 1 billion barrels of oil per day.
The transaction is expected to be taxed immediately on EOG’s net asset value and financial indicators per share, increasing annual EBITDA (revenue before interest, tax, depreciation, amortization), and cash flow from operations and free cash flow by 9%.
The acquisition of EOG’s Encino assets will expand the volatile oil window liquid-rich crop area of 235,000 acres, creating a continuous location of 485,000 acres.
Additionally, 330,000 acres have been added to the natural gas windows, exposing production to the premium market.
Functional interest in the northern foundation of EOG increases by over 20% due to excellent results.
The increase in operational expertise and acquisitions is expected to produce more than $150 million in synergy in the first year. These synergies come from capital cuts, operating and debt financing costs.
Furthermore, the acquisition supports a strategy of returning EOG’s capital to shareholders, evidenced by a 5% increase in dividends.
As of October 17, 2025, EOG’s board of directors has declared a dividend of $1.02 per share when paid to shareholders recorded on October 31, 2025.
Transactions scheduled to close in the second half of 2025 will be subject to Hart-Scott-Rodino Act clearance and other customary terms.
Ezra Y. Yacob, Chairman and CEO of EOG, said: “This acquisition combines Utica’s large and best crop area locations to create the third basic play of EOG along with the Delaware Basin and Eagle Ford assets. Encino’s area improves the quality and depth of Utica’s location and expands ELOG’s Multivasin Port Florio.
“EOG Strengthens Utica’s Presence with a $5.6 billion acquisition agreement” was originally created and published Offshore Technologya brand owned by GlobalData.
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