EOG Resources completes $5.6 billion acquisition of Encino Acquisition Partners

Published 01/08/2025, 21:34
EOG Resources completes $5.6 billion acquisition of Encino Acquisition Partners

EOG Resources, Inc. (NYSE:EOG), a $63.7 billion market cap energy company trading at $116.58, announced Friday that it has completed its previously disclosed acquisition of Encino Acquisition Partners, LLC, a Delaware-based limited liability company. The transaction was finalized pursuant to an Equity Interest Purchase Agreement dated May 30, 2025. According to InvestingPro analysis, EOG maintains strong financial health with a "GREAT" overall rating.

According to a statement included in a press release and filed with the Securities and Exchange Commission, EOG acquired all outstanding equity interests in Encino Acquisition Partners from a group of sellers, including CPPIB EAP US Inc., CPPIB EAP Canada, Inc., Encino Acquisition Management, LP, Encino Acquisition Management II, LP, and other equity holders. The purchase price was $5.6 billion in cash, which includes the repayment of debt and is subject to customary working capital and other adjustments. Notably, InvestingPro data shows EOG holds more cash than debt on its balance sheet, positioning it well for such acquisitions.

The acquisition was completed through a combination of acquiring shares in CPPIB EAP US Inc. and direct purchases of equity in Encino Acquisition Partners.

The company stated that the full terms of the purchase agreement will be included as an exhibit to its upcoming quarterly report for the period ending June 30, 2025.

EOG Resources is an independent crude oil and natural gas company headquartered in Houston, Texas. Its common stock is listed on the New York Stock Exchange under the ticker symbol EOG.

This information is based on a statement released in a filing with the Securities and Exchange Commission.

In other recent news, EOG Resources reported a net cash payment of $24 million for settling financial commodity derivative contracts during the second quarter of 2025. These derivatives are part of the company’s strategy to manage price risk and ensure future revenue stability. Additionally, EOG Resources completed a significant $3.5 billion debt offering with senior unsecured notes due between 2028 and 2055. This move is part of their financial strategy to secure long-term funding.

In terms of analyst activity, Roth/MKM downgraded EOG Resources from Buy to Neutral, citing concerns about potential declines in global oil prices in the latter half of 2025. However, UBS has maintained its Buy rating on the company, with a price target of $140.00, expressing confidence in EOG’s production outlook and strategic positioning. UBS analysts highlighted the company’s strong positioning following meetings with EOG’s top executives, focusing on various operational and strategic aspects. These developments reflect a mix of strategic financial maneuvers and differing analyst perspectives on EOG Resources’ future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.