EOG Resources Inc. Expands Utica Shale Position with Acquisition of Encino's 675,000 Net Core Acres

Reuters
2025/05/30
EOG Resources Inc. Expands Utica Shale Position with Acquisition of Encino's 675,000 Net Core Acres

EOG Resources Inc. has announced a significant acquisition that will transform its presence in the Utica shale play. The company is acquiring 675,000 net core acres from Encino, increasing its total Utica position to 1,100,000 net acres. This acquisition adds more than two billion barrels oil equivalent of undeveloped net resource and boosts EOG's production to 275,000 barrels of oil equivalent per day. Financially, the acquisition is immediately accretive to EOG's net asset value and all per-share financial metrics, with a notable 10% annualized increase in 2025 EBITDA. The deal expands EOG's contiguous liquids-rich acreage and premium-priced gas exposure, enhancing its working interest. Additionally, more than $150 million in synergies are expected in the first year through reduced capital, operating, and debt financing costs. The acquisition supports EOG's commitment to returning capital to shareholders, with a 5% dividend increase announced. The transaction is expected to close in the second half of 2025.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. EOG Resources Inc. published the original content used to generate this news brief via PR Newswire (Ref. ID: AQ99524) on May 30, 2025, and is solely responsible for the information contained therein.

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