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Investing.com -- EOG Resources (NYSE:EOG) on Friday announced its plan to acquire Encino Acquisition Partners in a deal worth $5.6 billion, expanding its holdings in Ohio’s Utica Shale.
The acquisition agreement was reached with Encino Energy and the Canada Pension Plan Investment Board, the entities that jointly founded the Houston-based company in 2017 for the purpose of acquiring U.S. oil and gas assets.
The acquisition will add 675,000 acres to EOG Resources’ holdings, increasing its total position in the Utica Shale to 1.1 million net acres.
According to EOG, the deal will immediately boost the company’s net asset value as well as its per-share financial metrics.
EOG Resources plans to finance the acquisition with $3.5 billion in debt and $2.1 billion in cash on hand.
The completion of the transaction is expected in the second half of the year.
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