Latest news with #Yacob
Yahoo
6 days ago
- Business
- Yahoo
EOG to Acquire Encino's Assets in Utica for $5.6B
This article was first published on Rigzone here EOG Resources, Inc. said it has entered into a definitive agreement to acquire Encino Acquisition Partners (EAP) from the Canada Pension Plan Investment Board (CPP) and Encino Energy for $5.6 billion, inclusive of EAP's net debt. EOG expects to fund the acquisition through $3.5 billion of debt and $2.1 billion of cash on hand, the company said in a news release. The transaction is expected to close in the second half, subject to clearance under the Hart-Scott-Rodino Act and other customary closing conditions, EOG said. The acquisition of Encino's 675,000 net core acres increases EOG's Utica position to a combined 1.1 million net acres, representing more than 2 billion barrels of oil equivalent of undeveloped net resources, with pro forma production totaling 275,000 barrels of oil equivalent per day (boepd), according to the release. EOG said that the acquisition significantly expands its contiguous liquids-rich acreage, adds premium-priced gas exposure, and increases working interest. The company averages 65 percent liquids production, with 235,000 net acres for a combined contiguous position of 485,000 net acres. On the natural gas front, the acquisition adds 330,000 net acres along with existing natural gas production with firm transportation exposed to premium end markets. In the northern acreage, where the company has delivered outstanding well results, EOG increases its existing average working interest by more than 20 percent, the company stated. "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 Chairman and CEO Ezra Yacob said. "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 resources". Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> "We are excited to execute on this unique opportunity that is immediately accretive to our per-share metrics and meets our strict criteria for acquisitions - high quality acreage with exploration upside, competitive with our current inventory, gained at an attractive price," Yacob added. "Our ability to execute on the Encino acquisition without diluting our shareholders will be a textbook example of how EOG utilizes its industry leading balance sheet to take advantage of counter cyclical opportunities to enhance the returns of our business and create long-term value for our shareholders,' he said. EAP was established by CPP Investments and Encino Energy in 2017 to acquire high-quality oil and gas assets with an established base of production in mature basins across the lower 48 states in the USA, CPP said in a separate statement. Since 2017, CPP Investments has held a 98 percent ownership position in EAP alongside Encino Energy. Encino Energy will also be exiting from EAP, representing a full sale to EOG Resources, CPP noted. 'When we established Encino Acquisition Partners with Encino Energy in 2017 we envisioned creating a company that would be a leader in acquiring U.S. oil and gas assets. Since then, it has done just that, and we are pleased with EAP's success and the strong returns this investment has delivered,' Bill Rogers, head of sustainable energy at CPP Investments, said. To contact the author, email More From The Leading Energy Platform: TotalEnergies Exits Bonga Field in Nigeria OPEC+ Countries to 'Implement Production Adjustment' of 411K Bpd in July Naftogaz, Orlen to Expand Energy Partnership JP Morgan Asks If Oil Prices Are $10 Too Low or $20 Too High >> Find the latest oil and gas jobs on << Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
EOG Resources bets big on Ohio oil boom with $5.6 billion Encino deal
EOG Resources is making a big bet on an Ohio oil boom with the $5.6 billion acquisition of leading Buckeye State producer Encino Acquisition Partners announced May 30. EOG, ranked 169 in the Fortune 500, is considered a leading trendsetter in the world of U.S. shale oil and gas. Essentially, where EOG explores or acquires, others tend to follow. With nearly half of the nation's record-high oil production coming from the booming Permian Basin, the West Texas shale play is maturing, and leading players are looking for future avenues to churn out more oil volumes. EOG has now identified the Utica as a key position for the future. 'It's not often that a transformative event like this comes along for a company,' EOG chairman and CEO Ezra Yacob said in a call with analysts. Encino is Ohio's largest oil producer and the state's third-biggest producer of natural gas. Houston-based EOG already had established a footprint in Ohio's emerging oil window in the Utica Shale, which was previously known just for natural gas. But the Encino deal will increase EOG's Utica volumes from 40,000 barrels of oil equivalent per day to about 275,000 barrels daily with plenty of room to grow. The deal gives EOG a third 'foundational pillar' along with the Permian and South Texas' Eagle Ford Shale, Yacob said, with the chance to transform Ohio's Utica from an emerging oil position to a true oil boom. 'The exciting thing for us is, with this transaction, we're really moving the Utica position from being an emerging asset into one that can easily scale up and handle more activity as it's become a real foundational core asset for the company,' Yacob added. EOG intends to buy Encino, including its debt in the $5.6 billion total, from parent Encino Energy and the Canada Pension Plan Investment Board for $3.5 billion of debt and $2.1 billion in cash on hand. 'Most importantly,' Yacob said, EOG will not use any equity in the deal. EOG is known for its organic growth and exploration, rarely making big deals. EOG's last major acquisition was nine years ago for Yates Petroleum in the Permian's western Delaware Basin. 'This acquisition is more than a timely opportunity,' Yacob said. 'It represents a strategic advancement in the deliberate and methodical process that EOG has taken to study the Utica and apply our operational excellence to build a high-quality, low-cost position through a combination of organic leasing, small bolt-on acquisitions, mineral purchases, and, finally, a large transformative acquisition.' The acquisition includes Encino's 675,000 net core acres, increasing EOG's Utica position to a combined 1.1 million net acres, representing more than 2 billion barrels oil equivalent of undeveloped resources, according to EOG. The deal is expected to close in the second half of 2025. While the timing is unexpected amid oil pricing volatility, the deal could end up well-timed as EOG makes a big move for a 'dominant Utica position,' said Kevin MacCurdy, managing director of Pickering Energy Partners, in an analyst note. 'We expect the market will have many questions for EOG given their prior reluctance to make an acquisition, but we think this resembles the type of deal they have been looking for and could be a potential better use of cash that is sitting on the balance sheet,' MacCurdy added. The deal also potentially helps jumpstart oil and gas dealmaking again after the industry has been largely frozen in a wait-and-see mode since President Trump's tariff announcements in early April. When the timing of the deal was questions, Yacob highlighted that the acreage also gives EOG a stronger position for Utica natural gas, especially as gas demand is prepared to take off from new liquefied natural gas export facilities and the data center construction boom. 'We see significant upside on the gas play here. So, it gives us a strong option,' Yacob said. 'This is the timing that worked out for the stakeholders involved,' he said. 'We do see and recognize the near-term volatility in the oil markets. That's balanced by what we see to be a stronger momentum on that natural gas demand story in North America. We've long held that 2025 would be a bit of an inflection point for natural gas demand.' This story was originally featured on 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
Axios
16-05-2025
- Business
- Axios
We tried Tampa's first Dutch Bros. Here's what to expect (hint: traffic)
👋 Yacob here. Tampa got its first Dutch Bros over the weekend. The result: a clogged street, a line of cars and more sugar than anyone needs. Why it matters: South Tampa's roads are narrow, uneven and cracked, and now with Dutch Bros and its fans and its lines, they're chaos with a caramel drizzle. But hey, the coffee's good. Zoom in: I made my pilgrimage to the Oregon-based coffee chain Wednesday at 10:30am. An employee with a bright vest and a walkie-talkie waved me out of the drive-thru line and into an overflow lot beside a church. I waited there until 11. One employee told me South Tampa's Dutch Bros averages 130 customers an hour. Another said the number climbs past 150 during the peak, between noon and 3pm. When I commented on the wait, they said, "This is slow." I made it out of the drive-thru at 11:30am. State of Sip: I ordered the iced Caramelizer, because an employee recommended it, and the iced Poppin' Boba Fire Lizard Rebel, to see what kind of person would. Put together, I drank 800 liquid calories. The Caramelizer seems to be made for someone who doesn't like the taste of coffee — lots of milk and lots of sugar. The iced Poppin' Boba Fire Lizard Rebel tastes like melted Skittles. Pro-tips: Order a small, don't drink two. 💭 Our thought bubble, via Axios Portland 's Meira Gebel: Born and raised in southern Oregon more than 30 years ago, Dutch Bros has been on a rapid franchise expansion kick since the company went public in 2021. It's hellbent on getting the rest of America hyped on its signature, colorful and highly-caffeinated beverages — with flavor names like Unicorn Blood, Vampire Slayer and Shark Attack — the Pacific Northwest has come to love.
Axios
12-05-2025
- General
- Axios
We tried CAVA's new chicken shawarma specials
CAVA, the fast-casual Mediterranean chain, rolled out chicken shawarma as a protein option at some of its Tampa Bay restaurants late last month. We stopped by the Carrollwood and St. Pete locations to try it. Yacob's thought bubble: I went with the Garlicky Chicken Shawarma Bowl, a hodgepodge of colors and smells. The chicken tastes rich, and the pungent blend of skhug and garlic dressing lingers on your breath well past lunch. My only note: It's too leafy. Kathryn's thought bubble: The Chicken Shawarma Pita was just ok. It wasn't gross or anything; I just couldn't taste the chicken amid the other flavors. It was also super messy and fell apart halfway through. If you want some truly flavorful chicken shawarma, go to St. Pete's new French Moroccan spot, Cybel.
Axios
24-04-2025
- Business
- Axios
Barnes & Noble reopened in Carrollwood as part of its national comeback
Barnes & Noble opened a new store in Carrollwood Wednesday, part of an unexpected push to launch dozens of new locations this year. Why it matters: Reading and brick-and-mortar bookshops are experiencing a revival, thanks in large part to TikTok. State of play: The new bookstore in the Palms of Carrollwood Shopping Center marks Barnes & Noble's return to the enclave, around eight months after its 28-year-old location closed. Barnes & Noble started opening stores in a big way last year to meet the growing demand for them, the bookseller told Fast Company. Yacob's thought bubble: The new location is spacious, with a sleek layout that finally gives nonfiction the space it deserves. Zoom in: The company credits #BookTok, the thriving community of book-lovers sharing recommendations on TikTok, with the renewed interest in reading, "especially among young people." BookTok has also helped fuel the surge in interest in the Romantasy (romance fantasy) sub-genre, propelling titles like "Onyx Storm" and "A Court of Thorns and Roses" to bestsellers lists. But the social sharing has also driven renewed interest in reading the classics, like "1984," "The Great Gatsby" and "To Kill a Mockingbird."
