Encana and Newfield Swap Stocks

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An oil pump, credit: wikimedia commons

Encana Corporation (NYSE: ECA) and Newfield Exploration Company (NYSE: NFX) revealed on November 1 that they have entered into a definitive agreement under which Encana will acquire Newfield in an all-stock deal worth approximately $5.5 billion. This acquisition is meant to create a leading multi-basin company with premium positions in the Permian, STACK-SCOOP, and Montney. The deal has been unanimously approved by both companies’ Boards of Directors and is expected to close in the first quarter of 2019. Doug Suttles, President and CEO at Encana, stated, “Our track record of consistent execution gives us confidence to accelerate and increase shareholder returns. 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. 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.” Credit Suisse and TD Securities acted as financial advisors to Encana with legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP and Blake, Cassels & Graydon LLP. J.P. Morgan and Goldman Sachs acted as financial advisers to Newfield with legal counsel from Kirkland & Ellis LLP and Wachtell, Lipton, Rosen & Katz.

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