Acquisition Transforms EOG into a leading Utica E&P
As natural gas prices have risen to $4/mmbtu, and the EIA expects it to rise to $5/mmbtu in 2026, large gas play acquisitions have continued throughout the industry. On May 30th, EOG Resources announced a definitive agreement to acquire Encino Acquisition Partners for $5.6 billion, greatly expanding its Utica acreage and expecting to generate over $150 million in synergies in the first year. “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” said Chairman and CEO of EOG, Ezra Y. Yacob. Encino’s acreage spans over a vast section of the Utica’s volatile oil window, and the Utica’s gas window. TGS’ Well Data Analytics allows us to quickly evaluate Encino’s wells in the Utica, showing that they are Ohio’s top oil producer and second highest producer by BOE.
Figure 1. Well Locations of Prominent Oil and Gas Producers in Ohio from Well Data Analytics
Figure 2. EOG and Encino Utica Data from Well Data Analytics
With this acquisition, EOG will add over 200 mboe/d of production to its Utica assets, as seen in Figure 2, with about 80% coming from gas production. Another key metric highlighted in EOG’s press release was the large amount of contiguous acreage this deal adds to EOG’s existing core acreage, resulting in in a combined position of 485,000 net acres in the volatile oil window. As lateral lengths in the Utica increase to realize cost savings, with some reaching 4 miles, such a large contiguous acreage position will allow EOG to more efficiently plan and develop their position. EOG and Encino acreage can be seen in Figure 3, along with areas of overlap.
Figure 3. EOG and Encino Acreage from EOG’s Encino Acquisition Presentation
In total, this deal secures EOG an additional 675,000 net acres, over a billion boe of undeveloped net resources, and over 200 mboe/d in production. In Q1 2025, EOG achieved a 50% well cost reduction in the Utica, bringing costs down to $630/well. If they can keep costs low, EOG will be in a great position to capitalize on this acquisition as gas prices edge higher. Yacob stated that “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.”
For more information about TGS Well Data Analytics or to schedule a demo, please contact us at WDPSales@tgs.com.