Akin Gump Advises EOG Resources in $2.5 Billion Merger with Yates Petroleum
(Houston) - EOG Resources, Inc. and Yates Petroleum Corporation today announced definitive agreements under which EOG has agreed to combine with Yates Petroleum Corporation, Abo Petroleum Corporation, 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. Akin Gump acted as legal advisor to EOG.
As part of the transaction, 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. Yates is a privately held, independent crude oil and natural gas company with 1.6 million net acres across the western United States. EOG is the largest oil producer in the continental United States, with average net daily production of 551 thousand barrels of crude oil equivalent. The deal is anticipated to close in early October, subject to customary closing conditions.
- tax partners Thomas Weir and Alison Chen;
- oil and gas partner Mike Byrd; and
- oil and gas associates Jon Boben, Cynthia Angell, Erik Shoemaker, Stephen Harrington, Randy Santa Ana, Gonzalo Castro, Jacob Johnson and Robin Raasch, and oil and gas senior attorney Shane Sullivan.
Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.
# # #