EOG Resources fall on $5.6 billion Encino deal

Shares of U.S. energy producer EOG Resources EOG.N down ~1% to $108.98

Company says it will acquire Encino Acquisition Partners for $5.6 billion, including debt

The agreement with Canada Pension Plan Investment Board and Encino Energy will give EOG access to an additional 675,000 net crore acres

"The deal helps EOG expand its multi-basin portfolio to more than 12 billion barrels of oil equivalent net resource," - CEO Ezra Yacob

Brokerage J.P. Morgan says value that EOG paid for the undeveloped inventory was rather minimal

Transaction is expected to close in the second half of this year

Including sessions moves, EOG down 11.1% YTD