EOG Resources completes $3.5 billion debt offering with multi-year notes
Investing.com
Published Jul 01, 2025 06:06PM ET
EOG Resources Inc. (NYSE:EOG), a $66.1 billion market cap energy company with strong financial health, announced Monday that it completed an underwritten public offering of $3.5 billion in aggregate principal amount of senior unsecured notes. The offering includes $500 million of 4.400% Senior Notes due 2028, $1.25 billion of 5.000% Senior Notes due 2032, $1.25 billion of 5.350% Senior Notes due 2036, and $500 million of 5.950% Senior Notes due 2055. According to InvestingPro data, EOG maintains robust cash flows that can sufficiently cover interest payments.
The notes were issued under an existing indenture dated May 18, 2009, with Computershare Trust Company, N.A. acting as trustee. The terms of each series of the notes are detailed in an officers’ certificate dated Monday, according to the company’s filing with the Securities and Exchange Commission.
EOG stated that the notes are senior unsecured obligations and will rank equally with its other unsecured and unsubordinated debt. The notes are subordinated to any secured debt to the extent of the value of assets securing that debt, and structurally subordinated to the obligations of EOG’s subsidiaries.
The company may redeem some or all of the notes at any time before maturity, with specific redemption provisions set out in the officers’ certificate. Special mandatory redemption provisions apply to the 2028 and 2055 notes.
The notes offering was registered under the Securities Act of 1933 through an automatic shelf registration statement on Form S-3 filed with the SEC and effective as of December 20, 2024.
A legal opinion from Akin Gump Strauss Hauer & Feld LLP regarding the legality of the notes was filed as part of the closing of the offering.
This information is based on a statement from EOG Resources’ SEC filing.
In other recent news, EOG Resources has been the subject of multiple analyst reports and strategic updates. UBS has reiterated its Buy rating on EOG Resources, maintaining a price target of $140.00, in anticipation of the company's second-quarter 2025 update. The firm expects EOG's total production to reach the high end of its guidance range, with a focus on capital allocation for the Encino acquisition. In addition, Jefferies has increased its price target for EOG Resources to $148.00, citing potential free cash flow improvements from the Encino acquisition, which is projected to close in the third quarter of 2025. This acquisition is expected to enhance EOG's production assets and operational efficiencies, solidifying its presence in the Utica Shale.
Stephens has initiated coverage on EOG Resources with an Equal Weight rating and a price target of $137.00, highlighting the company's strong balance sheet and projected free cash flow of approximately $4 billion. The firm noted EOG's increased dividend yield and capital efficiency improvements, suggesting a potential shift towards gas-weighted assets. UBS also reiterated its Buy rating following EOG's $5.6 billion acquisition of Encino Acquisition Partners, emphasizing the strategic importance of the Utica Shale region. Despite the increased net debt from the acquisition, EOG's net debt to EBITDA ratio remains below 1.0x, indicating strong financial health. These developments underscore EOG Resources' strategic moves to strengthen its portfolio and financial performance in key energy-producing regions.
Get The News You Want
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.