“EOG Resources joins with Delaware Basin operator for $2.5 billion”
EOG Resources Inc. and Yates Petroleum Corporation have announced definitive agreements under which EOG has agreed to combine with Yates Petroleum Corp., Abo Petroleum Corp., MYCO Industries Inc. and certain other entities (collectively, Yates). Under the terms of this 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, Modrall Sperling Law Firm and Kemp Smith LLP acted as legal advisors to Yates Petroleum Corporation, Abo Petroleum Corporation and MYCO Industries, Inc., respectively.