EOG Resources Grows Utica Operations with $5.6 billion Encino Acquisition

ENB Pub Note: This article from Nathan’s Newsletter on Substack is an excellent update. As we evaluate deals on a daily basis at Sandstone, it is great to get insights into both the Public and Private data rooms and look at deal specifics. We appreciate Nathan and highly recommend subscribing to his Substack.

Summary for Busy Readers

EOG Resources is expanding its work in the Utica shale by acquiring Encino Acquisition Partners for $5.6 billion. This move adds a huge chunk of land to EOG’s operations, strengthens its ability to produce energy responsibly, and creates new opportunities for local communities. It also comes with a 5% boost to the company’s dividend for shareholders.

Bigger Utica Presence: Gains 675,000 acres, making EOG a major player in the Utica with 1,100,000 total acres and vast energy resources to develop.
Smarter Operations: Combines EOG’s know-how with Encino’s land to improve efficiency, reduce environmental impact, and get more from every well.
Community Focus: Creates jobs, supports local growth, and raises the dividend to $1.02 per share, showing EOG’s commitment to people and stakeholders.

EOG Stock Price created with Trading View

EOG Resources, Inc., a major U.S. company focused on finding and producing oil and natural gas, is buying Encino Acquisition Partners for $5.6 billion. The deal, announced on May 30, 2025 and expected to wrap up later in 2025, grows EOG’s operations in the Utica shale, a key area for energy production. This step forward lets EOG tap into more resources, work more efficiently, and support the communities where it operates, all while keeping its promise to produce energy responsibly.

By acquiring Encino, EOG adds 675,000 acres to its Utica land, bringing its total to 1,100,000 acres. That’s enough to hold over two billion barrels of oil equivalent in untapped resources, making the Utica a core part of EOG’s work, alongside its projects in the Delaware Basin and Eagle Ford. Ezra Y. Yacob, EOG’s Chairman and CEO, said, “This deal brings together prime land in the Utica, making it a key part of what we do at EOG. It helps us grow our ability to produce energy in a smart, sustainable way.”

The new land includes 235,000 acres in an area rich with oil, creating a connected 485,000-acre zone where 65% of the output is liquid fuels like crude oil. It also adds 330,000 acres in a natural gas-rich area, with existing pipelines that connect to high-demand markets. In the northern part of the Utica, where wells have been especially productive, EOG will have a bigger say—over 20% more control—in how the land is developed.

Working Smarter, Not Harder

This acquisition lets EOG bring its expertise to a larger area. By combining its skills with Encino’s land, EOG can drill wells more efficiently, use less energy, and reduce its environmental footprint. This means getting more oil and gas from each well while being mindful of the land and resources. The company plans to test new ways of drilling and managing wells, which could make operations even smoother in the long run.

Supporting Communities and People

EOG is committed to making a positive impact where it works. The expanded Utica operations will bring new jobs, support local businesses, and help build infrastructure in the region. This growth strengthens communities by creating opportunities for workers and local partners. At the same time, EOG is raising its dividend by 5% to $1.02 per share, to be paid on October 31, 2025, to shareholders recorded by October 17, 2025. This shows EOG’s focus on giving back to those who support its work.

What’s Next

The deal needs approval from regulators and is expected to close in the second half of 2025. EOG will share more details about how this affects its plans afterward. On May 30, 2025, at 8 a.m. Central Time, EOG will hold a conference call to talk about the acquisition, which you can listen to live on the Investors/Events & Presentations page of EOG’s website. A replay will be available for a year.

Disclaimer: This is not legal, financial, or trading advice, and shall not be construed as such. Sign up here: https://nathanhammer.substack.com/p/eog-resources-grows-utica-operations

EOG Resources Grows Utica Operations with $5.6 billion Encino Acquisition

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