EOG Resources is making a bold northeast push, announcing Friday it will acquire privately held Encino Acquisition Partners for $5.6 billion, including debt. The move positions EOG as a dominant Utica shale player, with 1.1 million net acres and 275,000 boe/d in combined production.
The seller, Encino Energy, backed by the Canada Pension Plan Investment Board, controls 675,000 net core acres in the play—most of it contiguous and liquids-rich. That’s precisely what EOG is after. CEO Ezra Yacob called it a “third foundational play” to go alongside the company’s stalwart positions in the Delaware Basin and Eagle Ford.
EOG plans to fund the deal with $3.5B in new debt and $2.1B in cash on hand. Despite the leverage, the company is boosting its dividend by 5%, citing strong free cash flow accretion post-close—9% higher, by EOG’s math, along with a 10% boost to 2025 EBITDA.
Beyond scale, the Encino buy deepens EOG’s footprint in the Utica, adding 235,000 acres with 65% liquids production. It also gives the company firm gas transportation into premium markets and ups working interest by more than 20% in its best acreage.
Synergies are expected to exceed $150 million in the first year alone, driven by capex cuts, operational overlap, and cheaper financing.
The timing is noteworthy. After last year’s $192 billion M&A boom in U.S. energy, dealmaking has cooled in 2025 amid soft commodity prices and tighter inventory. But EOG, long known for balance sheet discipline, is playing offense.
The acquisition remains subject to HSR review and other closing conditions, with the deal expected to wrap up in H2 2025. There are no guidance updates yet—but EOG plans to release more details post-close.
If this deal works out as modeled, EOG won’t just be deeper in the Utica—it’ll be defining it.
By Julianne Geiger for Oilprice.com
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