Latest news with #EzraY.Yacob
Yahoo
4 days 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.
Yahoo
18-05-2025
- Business
- Yahoo
EOG Resources, Inc. (EOG) Awarded Oil Exploration Concession for UAE Shale Block
It was recently revealed that EOG Resources, Inc. (NYSE:EOG) has won a new onshore oil exploration concession in the United Arab Emirates. Let us shed some light on this development. EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies in the United States, with proved reserves in the US and Trinidad. It was recently announced that EOG Resources, Inc. (NYSE:EOG) has been awarded a new onshore oil exploration concession in the UAE by Abu Dhabi's Supreme Council for Financial and Economic Affairs. The US shale giant will evaluate 900,000 acres in a hydrocarbon-rich basin in Abu Dhabi's Al Dhafra region under the agreement, while coordinating with the Abu Dhabi National Oil Company. EOG holds 100% equity and operatorship and, after a 3-year appraisal phase, may also enter a production concession with the UAE if it finds commercial hydrocarbons. ADNOC will have an option to participate in that production agreement. The American company expects to begin drilling in the second half of 2025, with no change to its capital plan for the year. The development was announced during President Trump's recent visit to the United Arab Emirates, where multiple strategic agreements were signed, potentially enabling $60 billion of American investments in UAE energy projects. Ezra Y. Yacob, Chairman and Chief Executive Officer of EOG Resources, Inc. (NYSE:EOG), stated: "We are excited for the opportunity to evaluate this hydrocarbon rich basin for potential horizontal development. We look forward to working alongside ADNOC to expand Abu Dhabi's resource potential." While we acknowledge the potential of EOG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EOG and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None.
