The acquisition is projected to yield more than $150m in synergies during its initial year. Credit: T. Schneider/Shutterstock.com.

EOG Resources has entered into a definitive agreement to acquire Encino Acquisition Partners from the Canada Pension Plan Investment Board and Encino Energy for $5.6bn, including net debt.

This move is set to transform EOG’s standing in the Utica shale play, significantly expanding its net core acres.

The acquisition will elevate EOG’s Utica position to 1.1 million net acres, with undeveloped net resources of more than two billion barrels of oil equivalent per day (bboe/d).

The deal is expected to be immediately accretive to EOG’s net asset value and per-share financial metrics, enhancing annualised EBITDA (earnings before interest, taxes, depreciation and amortisation) by 10%, and cash flow from operations and free cash flow by 9%.

EOG’s acquisition of Encino’s assets will expand its liquids-rich acreage in the volatile oil window by 235,000 net acres, creating a contiguous position of 485,000 net acres.

It also adds 330,000 net acres in the natural gas window, with production exposed to premium markets.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

EOG’s working interest in the northern acreage, where it has seen excellent well results, will increase by more than 20%.

The operational expertise and increased scale from the acquisition are expected to generate more than $150m in synergies in the first year. These synergies will come from reduced capital, operating and debt financing costs.

Additionally, the acquisition supports EOG’s strategy of returning capital to shareholders, evidenced by a 5% increase in dividends.

EOG’s board of directors has declared a dividend of $1.02 per share, to be paid on 31 October 2025 to shareholders on record as of 17 October 2025. The annual rate indicated is $4.08.

The transaction, expected to close in the second half of 2025, is subject to Hart-Scott-Rodino Act clearance and other customary conditions.

EOG chairman and chief executive officer Ezra Y. 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.”