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EOG Resources Inc. will buy fellow oil and gas company Yates Petroleum Corp. and its related entities in a deal worth $2.3 billion, bringing together both companies’ acreage in the Delaware and Powder River basins, according to a Tuesday statement.
The deal will see EOG issue 26.06 million shares of common stock, worth roughly $2.3 billion, as well as pay $37 million in cash and assume and repay $245 million of Yates debt, before combining with Yates, Abo Petroleum Corp. and MYCO Industries Inc. The debt will be partially offset by $131 million of anticipated cash from Yates, the companies said.
EOG is being advised by Akin Gump Strauss Hauer & Feld LLP.
Yates is being advised by Thompson & Knight LLP, while Wells Fargo Securities LLC is acting as exclusive financial and technical adviser. Abo is being advised by Modrall Sperling Law Firm and MYCO is being advised by Kemp Smith LLP.