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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.
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