EOG to Buy Utica Shale Oil Producer Encino for $5.6B

Editor's note: This is a breaking news article. Check back for additional details. 

EOG Resources will buy Encino Acquisition Partners from Canada Pension Plan Investment Board (CPP) and Encino Energy, a top producer in Ohio Utica Shale, for $5.6 billion.

EOG said the transaction, which will be purchased with $3.5 billion in debt and $2.1 billion cash, will create a leading producer in the Utica. 

"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," said EOG chairman and CEO Ezra Y. Yacob during a May 30 conference call with investors.

"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,”  he said.

The acquisition adds 675,000 net core acres to EOG's Utica position for a combined 1.1 million  net acres, representing more than 2 Bboe of undeveloped net resource. Pro forma production is estimated at 275,000 boe/d.

EOG said the deal will be immediately accretive with more than $150 million in synergies in the first year driven by lower capital, operating and debt financing costs.

The deal, which expected to close in the second half of 2025, is also accretive to free cash flow and supports a return of capital to shareholders, including a 5% dividend increase, while maintaining industry leading balance sheet, according to EOG’s news release.

Goldman Sachs & Co. LLC is serving as EOG's exclusive financial adviser with its affiliate, Goldman Sachs Bank USA, providing fully committed financing. Wachtell, Lipton, Rosen & Katz is serving as EOG's lead legal adviser. Akin Gump Strauss Hauer & Feld LLP is also serving as legal counsel to EOG.

Latham & Watkins is advising CPP Investments and Encino Energy on today’s announced deal to sell Encino Acquisition Partners.