CPP Investments to Sell Full EAP Stake to EOG for $5.6 Billion

Key Takeaways

Sector: Energy Infrastructure & Renewables.
Geography: United States.

Analysis

Canada Pension Plan Investment Board (CPP Investments) has agreed to divest its entire stake in Encino Acquisition Partners (EAP) to U.S.-based energy giant EOG Resources in a transaction valued at $5.6 billion, including EAP’s net debt.

Established in 2017, EAP was a joint venture between CPP Investments and Encino Energy, created to acquire high-quality oil and gas assets across the United States. With a 98% ownership share, CPP Investments played a dominant role in EAP’s growth and operational strategy. Encino Energy, which holds the remaining stake, will also fully exit the business, enabling a complete transfer of ownership to EOG Resources.

“EAP has exceeded our expectations and delivered strong performance over the years. We are proud of the platform we helped build,” said Bill Rogers, Head of Sustainable Energies at CPP Investments. The divestment is part of the organization’s ongoing strategy to rebalance its portfolio and realize returns on long-term energy investments.

The acquisition by EOG Resources marks a significant expansion into the Ohio energy market and reinforces its upstream portfolio with proven producing assets. The deal is expected to close in the second half of 2025, pending standard regulatory and closing conditions.

CPP Investments’ Sustainable Energies division manages over C$36.3 billion in assets as of March 31, 2025, spanning renewables, carbon capture, conventional energy, and emerging technologies.

Headquartered in Toronto, CPP Investments manages C$714.4 billion in assets globally and is one of the world's largest institutional investors. The fund supports over 22 million Canadian contributors and beneficiaries and is known for its diversified investment strategy across asset classes and geographies.