EOG Resources to Acquire Encino Acquisition Partners from CPP Investments and Encino Energy, Strengthening Premier Utica Asset; Increases Regular Dividend 5%

Core Viewpoint - EOG Resources, Inc. has entered into a definitive agreement to acquire Encino Acquisition Partners for $5.6 billion, which includes Encino's net debt, with funding expected through $3.5 billion in debt and $2.1 billion in cash on hand [1][3]. Acquisition Details - The acquisition will enhance EOG's position in the Utica region, adding 675,000 net core acres to its existing holdings, resulting in a total of 1,100,000 net acres and over 2 billion barrels of oil equivalent in undeveloped net resources [2][8]. - Pro forma production is expected to reach 275,000 barrels of oil equivalent per day, establishing EOG as a leading producer in the Utica shale play [8]. Financial Impact - The transaction is projected to be immediately accretive to EOG's net asset value and all per-share financial metrics, with an annualized increase in 2025 EBITDA by 10% and cash flow from operations and free cash flow by 9% [8]. - EOG anticipates generating over $150 million in synergies in the first year post-acquisition, driven by reduced capital, operating, and debt financing costs [8]. Shareholder Returns - The acquisition supports a 5% increase in dividends, with the Board declaring a dividend of $1.02 per share, payable on October 31, 2025, contributing to EOG's commitment to return cash to shareholders [8].