Calgary-based Encana Corp. (TSX: ECA) has signed a deal to buy Newfield Exploration Co. (NYSE: NFX) in an all-stock deal worth about $5.5 billion U.S.
Under the deal, Newfield Exploration will receive 2.6719 Encana shares for each share of Newfield common stock. Encana will assume $2.2 billion U.S. of Newfield debt. The deal requires the support of a two-thirds majority vote of Newfield shareholders and a majority vote by Encana shareholders.
Newfield shares closed at $20.20 U.S. on the New York Stock Exchange, while Encana shares closed at $13.44 Canadian on the Toronto Stock Exchange Thursday. Once the deal is completed, Encana shareholders will own 63.5% of the combined company and Newfield shareholders will own 36.5%.
Encana also said it plans to raise its dividend by 25% and increase its share buyback program to $1.5 billion U.S. News of the acquisition came as Encana, which keeps its books in U.S. dollars, reported a profit of $39 million U.S. or four cents per share for the quarter ended September 30.
The latest quarterly result compared with a profit of $294 million U.S. or 30 cents per share in the same quarter last year. Revenue totaled $1.26 billion U.S., up from $861 million U.S. Production in the quarter totaled 378,200 barrels of oil equivalent per day, up from 284,000 in the third quarter of 2017.
Related Stories
