Deal Insight
Encana diversifies with US$8.2 billion acquisition of Newfield
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Encana Corporation announced an agreement to acquire all outstanding shares of US Independent, Newfield Exploration. The all-stock transaction is priced at US$7.7 billion, which includes US$2.2 billion of Newfield debt. Our standard inclusion of working capital adjustments increases the consideration to US$8.2 billion. Encana’s US$27.34 per share offer is at a 35% premium to Newfield’s share price one day prior to the announcement of the deal. This deal highlights yet another move in Encana's strategic shift to bolster its exposure to the most prolific oil-weighted plays across North America. The Newfield acquisition follows a string of deals since 2013 totalling upwards of US$17 Billion. The company has expanded outside of its Canadian core and secured positions in the Permian, Eagle Ford and now the Anadarko, Uinta and Williston basins
Table of contents
- Executive summary
- Transaction details
-
Upstream assets
- SCOOP/STACK
-
Rocky Mountain region
- Bakken
- Uinta
- Deal analysis
-
Upsides and risks
- Upsides
- Risks
- Strategic rationale
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- Executive summary: Table 1
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Production outlook for Encana peer group
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
- Average STACK productivity since 2015 (from Wood Mackenzie Lens)
- Newfield Meramec asset overview
- Newfield Woodford asset overview
- Upstream assets: Table 2
What's included
This report contains:
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