EOG Resources (NYSE: EOG) is making a bold move into the Utica Shale with its $5.6 billion acquisition of Encino Acquisition Partners (EAP), a joint venture between Encino Energy and Canada Pension Plan Investment Board. This transformational deal marks EOG’s strategic expansion into Appalachia, adding 675,000 net acres to its portfolio and positioning the company as one of the leading producers in the region.
With this acquisition, EOG’s Utica footprint grows to 1.1 million net acres and over 2 billion barrels of oil equivalent in net undeveloped resource. The company will gain exposure to both the liquids-rich and dry gas windows, with firm transportation to premium markets—enhancing revenue predictability and price realizations.
The deal is immediately accretive to EBITDA, cash flow, and net asset value, boosting EOG’s 2025 EBITDA by 10%. It also unlocks $150 million in expected first-year synergies through operational and financing efficiencies. EOG is funding the transaction with $3.5 billion in debt and $2.1 billion in cash—without issuing new equity.
To underscore confidence in its cash generation outlook, EOG announced a 5% dividend increase to $4.08 annually. The move aligns with EOG’s strategy of combining disciplined growth with aggressive shareholder returns.
This deal now gives EOG three foundational plays: Delaware Basin, Eagle Ford, and Utica. It reflects the company’s focus on high-return, multi-basin growth while maintaining one of the strongest balance sheets in the industry.
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