EOG Resources To Acquire Encino Acquisition Partners For $5.6B

Crude oil and natural gas explorer EOG Resources, Inc. (EOG) announced on Friday it will acquire Encino Acquisition Partners for $5.6 billion, which will increase its Utica position to a combined 1.1 million net acres, representing more than two billion barrels of oil equivalent of undeveloped net resources.

EOG said it expects to fund the acquisition through $3.5 billion of debt and $2.1 billion of cash on hand.

The company stated that the acquisition is accretive on an annualized basis to 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) by 10%, as well as to cash flow from operations and free cash flow by 9%.

EOG also anticipates generating more than $150 million of synergies in the first year, aided by lower capital, operating, and debt financing costs.

The transaction is expected to close in the second half of 2025.

EOG CEO Ezra Y. Yacob said Encino's acreage improves the quality and depth of the company’s Utica position, expanding EOG's multi-basin portfolio to more than 12 billion barrels of oil equivalent net resource.

The company’s Board also declared a dividend of $1.02 per share on EOG's common stock. It said the dividend will be payable Oct. 31, 2025, to stockholders of record as of October 17, 2025.

During its first-quarter (Q1) earnings report, EOG Resources said total capital expenditures for 2025 are now expected to range from $5.8 billion to $6.2 billion, a $200 million reduction relative to the firm’s earlier plan.

The company expects to maintain oil production at Q1 2025 levels for the remainder of the year and deliver full-year oil production growth of 2% and total production growth of 5%, it said.

EOG Resources shares have fallen over 12% in 2025 and nearly 11% in the past 12 months.

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