11:03 AM EDT, 05/30/2025 (MT Newswires) -- EOG Resources ( EOG ) said Friday it agreed to buy oil and gas firm Encino Acquisition Partners for $5.6 billion, including debt, as it aims to expand its presence in the Utica shale basin.

The acquisition gives EOG access to an additional 675,000 net core acres in Utica, and expands its multi-basin portfolio to over 12 billion barrels of oil equivalent net resource, according to a statement.

Encino Acquisition Partners was established by Canada Pension Plan Investment Board and Encino Energy in 2017, CPP Investment Board said in a statement. CPP had a 98% stake in the company alongside Encino Energy. Both will be exiting Encino Acquisition Partners.

The deal requires regulatory clearance and is anticipated to close in the second half of the year, according to EOG. The company will fund the acquisition with $3.5 billion of debt and $2.1 billion of cash on hand.

"This acquisition combines large, premier acreage positions in the Utica, creating a third foundational play for EOG alongside our Delaware Basin and Eagle Ford assets," EOG Chief Executive Ezra Yacob said. "Encino's acreage improves the quality and depth of our Utica position."

EOG expects the acquisition to be immediately accretive to its per-share financial metrics, with 2025 earnings before interest, taxes, depreciation, and amortization anticipated to increase by 10% and free cash flow by 9%. The company expects the acquisition to result in more than $150 million of synergies in the first year.

EOG plans to provide the details on the acquisition's impact on its 2025 capital and volume guidance after the deal closes, it said.

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