EOG Resources to acquire Encino Acquisition Partners for $5.6B

EOG Resources (EOG) announced a definitive agreement with Canada Pension Plan Investment Board and Encino Energy under which EOG will acquire Encino Acquisition Partners for $5.6B, inclusive of EAP’s net debt. EOG currently expects to fund the acquisition through $3.5B of debt and $2.1B of cash on hand. The transaction is immediately accretive to EOG’s net asset value as well as all per-share financial metrics. Specifically, the acquisition is accretive on an annualized basis to 2025 EBITDA by 10%, and cash flow from operations and free cash flow by 9%. EOG expects to generate more than $150M of synergies in the first year driven by lower capital, operating, and debt financing costs. Details regarding the acquisition’s impact to EOG’s 2025 capital and volume guidance will be provided after closing, which is expected to occur in the second half of 2025. The acquisition is subject to clearance under the Hart-Scott-Rodino Act and other customary closing conditions.