Canada-based Encana wraps up $7.7bn acquisition of Newfield Exploration
Encana acquisition of Newfield : Encana Corporation has successfully completed the acquisition of US oil and gas company Newfield Exploration for $7.7 billion as per the latest energy acquisition news.
The deal signed last November also includes assumption of the Texas-based Newfield Exploration’s net debt of $2.2 billion by the Canadian natural gas and oil company.
The transaction’s closing follows the approval of the shareholders of both the companies.
In the combined company, Encana shareholders will own nearly 63.5% stake and Newfield Exploration shareholders will own the remaining 36.5% stake.
Encana wraps up $7.7bn acquisition of Newfield Exploration. Photo courtesy of Encana Corporation.
Newfield Exploration produces crude oil, natural gas and natural gas liquids (NGLs) through its onshore operations in the US. The company is mainly focused on large scale, liquids-rich resource plays in the Anadarko Basin in Oklahoma, the Williston Basin in North Dakota, and the Uinta Basin in Utah. Newfield Exploration also owns gas assets located in the Arkoma Basin of Oklahoma. The company also has overseas assets through an oil asset located in the South China Sea.
Encana acquisition of Newfield has created a multi-basin company with large, premium footprints across the Permian, STACK/SCOOP and Montney.
The Canadian oil and gas company has gained about 360,000 net acres in the heart of the STACK/SCOOP play in the Anadarko Basin. Encana expects liquids production to contribute over 50% of the expanded company’s production, thereby enabling it to become the second largest producer of unconventional resources in the continent.
Commenting on Encana acquisition of Newfield, Doug Suttles – Encana President & CEO, said: “This acquisition creates North Americas premier resource company with large-scale positions in the core of the Permian, Anadarko and Montney, said Doug Suttles, Encana President & CEO. Our multi-basin portfolio provides tremendous investment optionality to deliver liquids growth and free cash flow to support the continued return of capital to shareholders. We welcome the team from Newfield to Encana.”
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