T&K Advises Yates Petroleum Corp. in Transaction with EOG Resources Valued at $2.5 Billion

Dallas – On September 6, 2016, EOG Resources, Inc. (“EOG”) and Yates Petroleum Corporation (“YPC”) announced definitive agreements pursuant to which EOG has agreed to combine with YPC, Abo Petroleum Corporation, MYCO Industries, Inc. and certain other entities (collectively, “Yates”). Under the terms of this private, negotiated transaction, EOG will issue an aggregate of 26.06 million shares of common stock valued at $2.3 billion and pay $37 million in cash, subject to certain closing adjustments and lock-up provisions. EOG also will assume and repay at closing $245 million of Yates debt offset by $131 million of anticipated cash from Yates, also subject to certain closing adjustments. Thompson & Knight LLP acted as legal advisor to YPC.

As part of the transaction, Yates’ 300 employees will be brought on by EOG. The deal is anticipated to close in early October, subject to customary closing conditions. YPC is a privately owned, independent exploration and production company, headquartered in Artesia, New Mexico. EOG is one of the largest independent (non-integrated) crude oil and natural gas companies and is listed on the New York Stock Exchange and is traded under the ticker symbol “EOG.”

The Thompson & Knight team advising YPC was led by partners Wesley P. Williams, Jessica Hammons, Roger D. Aksamit, and Hunter H. White.