Acquisitions and Divestitures

During 2017, EOG recognized a net loss on asset dispositions of $(99) million and received proceeds of approximately $227 million primarily from sales of producing properties, other assets and acreage in Texas and Oklahoma. Additionally, in the fourth quarter of 2017, EOG signed a purchase and sale agreement and an exchange agreement for the sale and exchange, respectively, of primarily producing properties in the Rocky Mountain area. At December 31, 2017, the book value of the assets classified as held for sale and the related asset retirement obligations were $188 million and $41 million, respectively.

During 2017, EOG completed acquisitions of approximately $73 million to acquire producing properties in various areas in the United States.

During 2016, EOG recognized a net gain on asset dispositions of $206 million and received proceeds of approximately $1,119 million primarily from sales of producing properties and acreage in Texas, Louisiana, the Rocky Mountain area and Oklahoma. Additionally, during the third quarter of 2016, EOG completed the sale of all its Argentina assets.

During 2015, EOG completed acquisitions of approximately $481 million primarily to acquire proved crude oil properties and related assets in the Delaware Basin and gathering assets in the North Dakota Bakken.

During 2015, EOG recognized a net loss on asset dispositions of $(9) million and received proceeds of approximately $193 million primarily from sales of gathering and processing assets and other assets.

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). Pursuant to these transactions, EOG issued to the shareholders of YPC, ABO and MYCO and to certain of the sellers under the related asset purchase transactions an aggregate of approximately 25 million shares of EOG common stock and paid to certain of the sellers under the asset purchase transactions an aggregate of approximately $16 million in cash for total consideration transferred of approximately $2.4 billion. In addition, under the terms of the transactions, EOG assumed and repaid approximately $164 million of debt owed by the Yates Entities, which was offset by approximately $70 million of cash of the Yates Entities.

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.

In connection with these mergers and related asset purchase transactions, EOG incurred acquisition-related costs in 2016 of approximately $5 million, all of which were expensed and recorded as General and Administrative on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).

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.

In 2017, EOG finalized 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, along with other immaterial changes.

The following table represents the final allocation of the total purchase price of 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.