The acquisition of Encino Acquisition Partners by EOG Resources for $5.6 billion enables the company to expand its Utica shale basin operations and enhance its U.S. oil and gas production capabilities.
The Houston-based shale giant will acquire Encino through a $3.5 billion debt payment and a $2.1 billion cash transaction since Encino is a privately held company with Canada Pension Plan Investment Board (CPP) as its majority owner. Through this acquisition EOG gains control of 675,000 net core acres located in the Utica shale region of Ohio which contains abundant natural gas reserves.
The acquisition represents EOG’s effort to enhance its multi-basin operations as the company now holds more than 12 billion barrels of oil equivalent in recoverable resources. The acquisition enables EOG to expand its production mix by reducing its dependence on maturing fields such as the Eagle Ford and Permian.
The energy industry merger and acquisition activity has decreased overall since 2023 but EOG continues to demonstrate its positive view of U.S. natural gas prospects through this acquisition. The acquisition will finalize during the second half of 2025 according to the company which predicts a 10% increase in 2025 EBITDA and 9% growth in cash flow from operations and free cash flow.
Goldman Sachs served as EOG’s financial advisor throughout the transaction while Jefferies acted as Encino’s advisor.
The acquisition demonstrates the vital role of Utica shale for EOG as the company works to establish itself as a leading independent oil and gas producer in America.
