Acquisitions and Divestitures

Yates Entities. On October 4, 2016, EOG completed its previously announced mergers and related asset purchase transactions with Yates Petroleum Corporation (YPC), Abo Petroleum Corporation (ABO), MYCO Industries, Inc. (MYCO) and certain affiliated entities (collectively with YPC, ABO and MYCO, the Yates Entities). For a further discussion of these transactions, refer to Note 17 to the Consolidated Financial Statements in EOG's 2016 Annual Report. The assets of the Yates Entities include producing wells in addition to acreage in the Delaware Basin Core, the Powder River Basin, the Permian Basin Northwest Shelf and other Western basins.

EOG accounted for the mergers with YPC, ABO and MYCO and the related asset purchase transactions as a business combination under the acquisition method with EOG as the acquirer. Under the acquisition method, the consideration transferred is allocated to the assets acquired and liabilities assumed based on their estimated fair values, with any excess of the consideration transferred over the estimated fair value of the identifiable net assets acquired recorded as goodwill. EOG did not record goodwill in connection with these transactions.

EOG updated its purchase price allocation in respect of the transactions with the Yates Entities, which resulted in net decreases of $35 million in oil and gas properties and $32 million in deferred income taxes, among other immaterial changes.

The following table represents the allocation at September 30, 2017, of the total purchase price in respect of the transactions with the Yates Entities (in thousands).



Current Assets
Cash and Cash Equivalents	$	70,411
Accounts Receivable, Net	77,073
Inventories	10,955
Other	10,640
Total	169,079

Property, Plant and Equipment
Oil and Gas Properties (Successful Efforts Method)	3,815,207
Other Property, Plant and Equipment	21,824
Total Property, Plant and Equipment, Net	3,837,031
Other Assets	22,706
Total Assets	$	4,028,816

Current Liabilities
Accounts Payable	$	124,145
Accrued Taxes Payable	22,417
Other	743
Total	147,305

Long-Term Debt	163,829
Asset Retirement Obligations	163,144
Off-Market Transportation Contracts	39,720
Other Liabilities	28,645
Deferred Income Taxes	1,072,405
Total Liabilities	$	1,615,048
Total Consideration Transferred	$	2,413,768

The fair value measurements of Oil and Gas Properties and Asset Retirement Obligations are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair values of Proved Oil and Gas Properties were measured using the income approach. Significant inputs to the valuation of Proved Oil and Gas Properties included EOG's estimate of future crude oil and natural gas prices, production costs, development expenditures, anticipated production of proved reserves, appropriate risk-adjusted discount rates and other relevant data. Significant inputs to the valuation of Unproved Oil and Gas Properties included average prices per acre of comparable market transactions.

Other. During the nine months ended September 30, 2017, EOG recognized a net loss on asset dispositions of $34 million and received proceeds of approximately $192 million primarily from the sale of producing assets, unproved leasehold and other property, plant and equipment in Oklahoma and Texas. During the nine months ended September 30, 2016, EOG recognized a net gain on asset dispositions of $102 million and received proceeds of approximately $458 million primarily from sales of producing properties and acreage in Texas, the Rocky Mountain area and Oklahoma.