Encino Led Ohio’s 11% Utica Oil Output Growth in 1Q25

Ohio’s oil producers surfaced 122,518 bbl/d in the first quarter, up 10.6% from fourth-quarter 2024 output, according to a Hart Energy analysis of newly released Ohio state data.

The bulk of the growth was from Encino Energy, posting nearly 60,000 bbl/d, up from 52,000 bbl/d, according to Ohio Department of Natural Resources (ONDR) files.

Encino’s output going forward will join EOG Resources’ 14,000 bbl/d from the state upon EOG closing its $5.6 billion acquisition of the No. 1 producer.

Their combined roughly 73,500 bbl/d will leave privately held Ascent Resources’ 29,000 bbl/d in the No. 2 position, while newly public Infinity Natural Resources advances to the No. 3 position EOG currently holds, producing some 11,000 bbl/d.

The EOG-Encino deal’s read-through is positive on Infinity’s valuation, reported John Raymond, an analyst with Raymond James.

Freeman raised his target on the stock to $28 June 11 and reiterated his “strong buy” recommendation on the shares, which closed June 10 at $17.17.

“The transaction multiple implies that Infinity’s valuation is nearly 50% higher than current levels,” Freeman wrote before markets opened.

Encino’s production and operations in the Utica are larger, but Infinity “is growing more rapidly than Encino and maintains virtually zero debt,” he wrote.

Also, EOG taking Encino out of play among competitors for leasehold in the area means “the path for Infinity to improve their scale got much easier.”

Up for grabs

EOG’s deal to buy Encino will consolidate 60% of Ohio’s daily horizontal oil output, leaving another 49,062 bbl/d up for grabs in continued M&A among Utica operators, according to ONDR data.

Also up for grabs are 4.4 Bcf/d of gas and NGLs as EOG-Encino holds 1 Bcf/d of the state’s output.

EOG’s bid for Encino backs up its May 2024 statement that the Utica oil play “can compete with the best plays in America.”

Ascent, the state’s No. 1 gas producer in addition to being its No. 2 oil producer, told public debt-holders in a call in March that it is considering an IPO.

Publicly held Gulfport Energy, which focuses on the Utica’s wet-gas phase along the eastern side of the oil window, signaled to investors last month that M&A might be in its own plans this year.

Zack Arnold, Infinity president and CEO, told Hart Energy before the EOG-Encino deal announcement, “It would be really interesting to see if something breaks free.”

A deal among any of the top Utica producers would “start driving some of the efficiencies that a larger-scale company could have in developing the play.”

The ONDR data is for Ohio operators’ horizontal wells’ production only. The ONDR did not release a summary of 2024 vertical production from vintage wells yet. But a report on 2023 vertical output shows non-horizontal production from the state was 6,060 bbl/d oil and 85 MMcf/d gas and NGL that year.

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