EOG Resources (NYSE:EOG) is making bold moves in 2025. With its latest acquisition of Encino Energy — Ohio’s largest oil producer in the Utica Shale — the company has deepened its U.S. shale footprint while continuing to deliver strong financial results. At the same time, EOG’s rig allocation across basins highlights where drilling momentum is concentrated this year and why diversification is more than just a buzzword.
Appalachian Basin Oil & Gas Operator Account Directory – $10
Includes: Account Name, Location, Phone, Website, Wells Drilled….
Strategic Moves: Encino Acquisition
EOG’s acquisition of Encino Energy is a significant milestone for the Utica Shale and U.S. unconventional oil and gas. Encino brings scale, infrastructure, and production depth in Ohio — an area often overshadowed by the Permian and Marcellus but with untapped liquids-rich potential.
- Largest Utica producer: Encino controlled the biggest oil volumes in Ohio prior to the acquisition.
- Footprint expansion: EOG now secures a stronger position in Appalachia, balancing its already dominant Permian operations.
- Optionality: By diversifying basins, EOG reduces dependence on any single play while positioning for growth in a market where natural gas liquids and condensates are increasingly valuable.
This isn’t just acreage; it’s strategic diversification — giving EOG more levers to pull as U.S. supply, demand, and policy evolve.
Financial Strength in Q2 2025
The deal comes on the heels of a standout quarter.
- Adjusted EPS: $2.32 (beat analyst estimates)
- Revenue: $5.48 billion (above expectations)
- Free Cash Flow: Nearly $1 billion generated
- Shareholder Returns: $600 million deployed to buybacks
EOG is executing a dual mandate: grow strategically while maintaining disciplined capital returns. For investors, that means predictable upside in volatile markets.
Drilling in 2025: Where the Rigs Are
The real story of EOG’s operational strength lies in where and how rigs are working. Data from 2025 shows a clear hierarchy:
Permian Basin (New Mexico & Texas)
- Record Count: 345 (200 NM + 145 TX)
- Top Rigs: H&P 263 (26 records), Patterson 883 (20), Nabors 1204 (20), Independence 305 (18)
- Takeaway: The Permian remains the backbone. H&P and Nabors dominate the contractor mix, reflecting reliance on high-spec rigs.
Appalachia (Ohio – Utica Shale)
- Record Count: 74
- Top Rigs: H&P 385 (24 records), Patterson 579 (17), Patterson 580 (15)
- Takeaway: With Encino folded in, EOG now has a meaningful position. Rig activity shows balance between H&P and Patterson.
Wyoming
- Record Count: 26
- Top Rigs: Nabors B16 (15), Ensign 147 (11)
- Takeaway: A niche play. Wyoming drilling is smaller-scale and contractor-specific.
Williston Basin (North Dakota)
- Record Count: 20
- Top Rig: H&P 259 (20)
- Takeaway: Minimal activity, almost entirely reliant on a single rig.
What It All Means
The numbers tell a story:
- 70% of activity is still Permian-heavy. EOG leans on New Mexico and Texas for scale and efficiency.
- Encino gives Appalachia a bigger role. The Utica Shale moves from secondary to strategic, helping balance gas and liquids output.
- Smaller footprints remain valuable. Wyoming and North Dakota provide optionality, but they are clearly niche.
For EOG, the Encino acquisition isn’t just a headline — it’s the latest proof that the company is blending scale, diversification, and shareholder discipline better than most peers.
✅ Key Takeaway: By expanding into Ohio’s Utica Shale with Encino, EOG is not just buying barrels — it’s buying basin diversity. Combined with strong free cash flow, disciplined buybacks, and a Permian rig fleet firing on all cylinders, EOG is setting the pace for U.S. shale in 2025.
