EOG Resources (NYSE:EOG) announced on Friday its intention to acquire Encino Acquisition Partners in a $5.6 billion transaction, further expanding its footprint in Ohio’s Utica Shale region.
The agreement was made with Encino Energy and the Canada Pension Plan Investment Board, who co-founded the Houston-based Encino Acquisition Partners in 2017 with the goal of acquiring U.S. oil and gas assets.
This acquisition will add approximately 675,000 acres to EOG’s portfolio, raising its total landholdings in the Utica Shale to around 1.1 million net acres.
EOG expects the deal to provide an immediate increase in its net asset value and enhance key per-share financial metrics.
To fund the acquisition, EOG Resources plans to use $3.5 billion in debt financing along with $2.1 billion in available cash.
The transaction is anticipated to close in the second half of the year.