“EOG Resources, Yates Petroleum to combine in transaction valued at $2.5B”
EOG Resources Inc. (NYSE: EOG) and Yates Petroleum Corp. have negotiated a deal that would see EOG combine with Yates Petroleum, Abo Petroleum Corp., MYCO Industries Inc. and certain other entities (collectively, Yates). Under the terms of the private, negotiated transaction, EOG will issue 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 will assume and repay at closing $245 million of Yates debt offset by $131 million of anticipated cash from Yates, subject also to certain closing adjustments.
Thompson & Knight LLP acted as legal advisors to Yates Petroleum.