Latest news with #EOGResources
Yahoo
13 hours ago
- Business
- Yahoo
EOG strengthens Utica presence with $5.6bn acquisition deal
EOG Resources has entered into a definitive agreement to acquire Encino Acquisition Partners from the Canada Pension Plan Investment Board and Encino Energy for $5.6bn, including net debt. This move is set to transform EOG's standing in the Utica shale play, significantly expanding its net core acres. The acquisition will elevate EOG's Utica position to 1.1 million net acres, with undeveloped net resources of more than two billion barrels of oil equivalent per day (bboe/d). The deal is expected to be immediately accretive to EOG's net asset value and per-share financial metrics, enhancing annualised EBITDA (earnings before interest, taxes, depreciation and amortisation) by 10%, and cash flow from operations and free cash flow by 9%. EOG's acquisition of Encino's assets will expand its liquids-rich acreage in the volatile oil window by 235,000 net acres, creating a contiguous position of 485,000 net acres. It also adds 330,000 net acres in the natural gas window, with production exposed to premium markets. EOG's working interest in the northern acreage, where it has seen excellent well results, will increase by more than 20%. The operational expertise and increased scale from the acquisition are expected to generate more than $150m in synergies in the first year. These synergies will come from reduced capital, operating and debt financing costs. Additionally, the acquisition supports EOG's strategy of returning capital to shareholders, evidenced by a 5% increase in dividends. EOG's board of directors has declared a dividend of $1.02 per share, to be paid on 31 October 2025 to shareholders on record as of 17 October 2025. The annual rate indicated is $4.08. The transaction, expected to close in the second half of 2025, is subject to Hart-Scott-Rodino Act clearance and other customary conditions. EOG chairman and chief executive officer Ezra Y. Yacob said: "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. Encino's acreage improves the quality and depth of our Utica position, expanding EOG's multi-basin portfolio to more than 12 billion barrels of oil equivalent net resource.' "EOG strengthens Utica presence with $5.6bn acquisition deal" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Insider
a day ago
- Business
- Business Insider
Wells Fargo Remains a Buy on EOG Resources (EOG)
Wells Fargo analyst Roger Read maintained a Buy rating on EOG Resources (EOG – Research Report) on May 30 and set a price target of $146.00. Confident Investing Starts Here: Read covers the Energy sector, focusing on stocks such as Valero Energy, Devon Energy, and EOG Resources. According to TipRanks, Read has an average return of -0.2% and a 44.47% success rate on recommended stocks. In addition to Wells Fargo, EOG Resources also received a Buy from BMO Capital's Phillip Jungwirth in a report issued on May 30. However, on the same day, TD Cowen maintained a Hold rating on EOG Resources (NYSE: EOG). EOG market cap is currently $59.26B and has a P/E ratio of 10.08. Based on the recent corporate insider activity of 100 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EOG in relation to earlier this year. Most recently, in April 2025, Jeffrey R. Leitzell, the EVP & COO of EOG sold 4,037.00 shares for a total of $515,771.56.
Yahoo
2 days ago
- Business
- Yahoo
EOG Resources (NYSE:EOG) Declares US$1.02 Dividend As Acquisition Discussions Unfold
EOG Resources recently announced an increase in its quarterly dividend to $1.02 per share and engaged in discussions regarding a potential acquisition of Encino Acquisition Partners. Despite these developments, the company's stock price experienced a 1% decline over the past week, contrasting with the broader market's 2% rise. While the dividend announcement and the M&A discussions underscored EOG's strategic priorities, they likely added weight against the overall upward market trend. As such, the market's broader positive momentum was not fully realized in EOG's share performance for the week. EOG Resources has 1 weakness we think you should know about. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. EOG Resources' recent dividend hike and acquisition talks seem to align with their efforts to bolster future growth and operational efficiency. However, despite these actions, the company's stock price dropped by 1% over the past week amid a broader market rise. This short-term movement contrasts sharply with the longer-term performance, where EOG has delivered a remarkable 133.02% total return over five years. In the past year, however, EOG's stock underperformed compared to the broader U.S. Oil and Gas industry and the market, highlighting a challenging period within a year despite longer-term gains. The news could potentially influence revenue and earnings forecasts positively, especially with expected improvements in cash flow and increased natural gas production. However, possible oversupply and tariff issues remain concerns that could hinder revenue growth. Regarding the company's share price of US$108.72, it still trades significantly below the consensus analyst price target of US$135.47. This implies substantial upside potential if the company meets or exceeds future earnings and revenue expectations. Investors may find EOG currently undervalued, considering the analyst targets and recent performance. Gain insights into EOG Resources' outlook and expected performance with our report on the company's earnings estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:EOG. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
EOG Resources (NYSE:EOG) Declares US$1.02 Dividend As Acquisition Discussions Unfold
EOG Resources recently announced an increase in its quarterly dividend to $1.02 per share and engaged in discussions regarding a potential acquisition of Encino Acquisition Partners. Despite these developments, the company's stock price experienced a 1% decline over the past week, contrasting with the broader market's 2% rise. While the dividend announcement and the M&A discussions underscored EOG's strategic priorities, they likely added weight against the overall upward market trend. As such, the market's broader positive momentum was not fully realized in EOG's share performance for the week. EOG Resources has 1 weakness we think you should know about. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. EOG Resources' recent dividend hike and acquisition talks seem to align with their efforts to bolster future growth and operational efficiency. However, despite these actions, the company's stock price dropped by 1% over the past week amid a broader market rise. This short-term movement contrasts sharply with the longer-term performance, where EOG has delivered a remarkable 133.02% total return over five years. In the past year, however, EOG's stock underperformed compared to the broader U.S. Oil and Gas industry and the market, highlighting a challenging period within a year despite longer-term gains. The news could potentially influence revenue and earnings forecasts positively, especially with expected improvements in cash flow and increased natural gas production. However, possible oversupply and tariff issues remain concerns that could hinder revenue growth. Regarding the company's share price of US$108.72, it still trades significantly below the consensus analyst price target of US$135.47. This implies substantial upside potential if the company meets or exceeds future earnings and revenue expectations. Investors may find EOG currently undervalued, considering the analyst targets and recent performance. Gain insights into EOG Resources' outlook and expected performance with our report on the company's earnings estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:EOG. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
This Terrific Dividend Stock Is Spending $5.6 Billion to Add Even More Fuel to Its Dividend Growth Engine
EOG Resources (NYSE: EOG) has an excellent record of paying dividends. The oil and gas producer has delivered 27 years of sustainable and growing dividends. While the company hasn't increased its payout every single year since its initial public offering, it has never reduced its payment, which is a rarity in the oil patch. Further, it has grown its payout twice as fast as its peers since 2019. On top of that, EOG has paid several special dividends in recent years. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The oil stock recently added a lot more fuel to its dividend growth engine. It's buying Encino Acquisition Partners in a $5.6 billion deal that's so accretive that EOG is boosting its dividend payment by another 5%. That will further increase its already attractive yield of over 3.5%, more than double the S&P 500 's (SNPINDEX: ^GSPC)1.3% dividend yield. Here's a closer look at the deal and why dividend investors should consider adding EOG Resources' high-octane payout to their income portfolio. Adding more low-cost oil and gas to its portfolio EOG Resources is one of the country's largest oil and gas producers. It has a multi-basin portfolio loaded with low-cost resources. The company estimates that it currently has over 10 billion barrels of oil equivalent (BOE) resources that it can tap into in the coming years. The oil and gas producer has largely built its resource portfolio via organic exploration. Unlike others in the oil patch, EOG Resources prefers not to make corporate acquisitions because those tend to be more expensive. However, it will pounce on a deal when the right opportunity arises. That recently happened. The company has agreed to buy Encino Acquisition Partners for $5.6 billion. Encino holds over 675,000 net acres in the Utica Shale play of Ohio. That deal significantly increases EOG's position in the play, which will have a combined 1.1 million net acres with an estimated 2 billion BOE of undeveloped net resources after the transaction closes. That will give the company a third foundational resource position alongside its assets in the Delaware Basin and Eagle Ford Shale in Texas. EOG Resources expects the deal to be immediately accretive to its financial metrics. It sees the acquisition boosting its cash flow from operations and free cash flow by 9%. Given the largely undeveloped acreage, the deal should enhance the company's ability to grow its production in the coming years. A rock-solid, dividend-paying machine EOG Resources is using its strong balance sheet to fund this deal. It's utilizing $2.1 billion of cash on hand and plans to issue $3.5 billion of new debt. The company has spent the past several years building a fortress balance sheet. It ended the first quarter with $6.6 billion in cash and only $4.7 billion in debt. After closing the deal and adjusting for a recent $500 million debt repayment at maturity and a $275 million bolt-on acquisition in the Eagle Ford, EOG will have $3.7 billion in cash against $7.7 billion of debt. That's still a very strong financial position. Even if oil prices fell to $45 per barrel, EOG's leverage ratio would be less than 1 times. As mentioned, the deal is so accretive to the company's cash flow that EOG Resources is bumping its dividend payment by another 5% per share. That's on top of the 7% raise the company provided investors earlier this year. The company's dividend payment should continue growing in the future. EOG's top priority for its cash flow is to pay a sustainable and regular dividend. Dividends are the company's primary mode of returning cash to shareholders (over share repurchases). It aims to pay a competitive dividend compared to its peer group and the broader market. EOG's other cash flow priorities are to maintain a strong balance sheet (which it will have after closing this deal), invest capital to grow its business (targeting 5% production growth this year before factoring in the Encino deal), and return additional cash to shareholders. Given the strength of its balance sheet, EOG has the capacity to return over 100% of its annual free cash flow to shareholders. It does that through special dividends and opportunistic share repurchases. EOG has focused more on repurchasing its shares ($800 million in repurchases in the first quarter) due to its currently attractive share price (down 20% from its 52-week high). Those repurchases help steadily reduce its shares outstanding (down 6% over the past three years), which enhances its ability to increase its dividends per share. A well-oiled dividend growth stock EOG Resources has an excellent record of paying dividends. It should have plenty of fuel to continue growing its high-yielding payout, especially after buying Encino. Because of that, it's a great dividend stock to consider adding to your income portfolio right now. Should you invest $1,000 in EOG Resources right now? Before you buy stock in EOG Resources, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and EOG Resources wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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