Encana set to acquire Newfield Exploration in US$5.5bn deal

By baddey dey`
Calgary-based petrochemical company Encana Corporation announced on 1 November that it has agreed to purchase Newfield Exploration in a deal worth US$5.5bn
 
Encana will acquire all outstanding shares of Newfield in the all-stock transaction, with the deal expected to close early next year.
 
The acquisition will create a leading multi-basin firm with a significant footprint in the Permian, STACK/SCOOP, and Montney.
 
As a merged company, it will also become the second largest producer of unconventional resources in North America, with an annual synergy of US$250mn resulting from enhanced scale, cube development, and overhead savings.
 
“This strategic combination advances our strategy and is immediately accretive to our five-year plan,” said Doug Suttles, Encana President & CEO, in the firm’s statement announcing the acquisition.
 
He added:
 
“I am very excited to lead the combined company and want to congratulate the team at Newfield on doing a tremendous job building premium positions in the core-of-the-core in each of their assets, particularly in the world-class, oil-rich, STACK/SCOOP.
 
See more:
 
 
“When combined with our cube development model, expected synergies and relentless focus on efficiency, we are positioned to deliver highly efficient growth and quality returns.”
 
Lee K Boothby, Chairman, President, and CEO of Newfield, said the move was the most strategically viable way forward for the firm, offering investors a far stronger combination of attributes.
 
“We strongly believe that the synergies between these two organizations will create a dominant diversified resource player that is positioned to drive future value,” he said.
Share

Featured Articles

Amelia DeLuca, CSO at Delta Air Lines on Female Leadership

Driving decarbonisation at Delta Air Lines, Chief Sustainability Officer Amelia DeLuca discusses the rise of the CSO and value of more women in leadership

Liz Elting – Driving Equality & Building Billion-$ Business

Founder and CEO Liz Elting Turned Her Passion into Purpose and Created a Billion-Dollar Business While Fighting for Workplace Equality – and Winning

JPMorgan Chase: Committed to supporting the next generation

JPMorgan has unveiled a host of new and expanded philanthropic activities totalling US$3.5 million to support the development of apprenticeship programmes

How efficient digital ecosystems became business critical

Technology & AI

Mastercard: Supporting clients at a time of rapid evolution

Digital Strategy

Why Ceridian has boldly rebranded to Dayforce

Human Capital