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Encana diversifies with US$8.2 billion acquisition of Newfield

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14 November 2018

Encana diversifies with US$8.2 billion acquisition of Newfield

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
    • SCOOP/STACK
    • Rocky Mountain region
      • Bakken
      • Uinta
  • Deal analysis
    • Upsides
    • Risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 12 images and tables including:

  • 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:

  • Document

    Encana diversifies with US$8.2 billion acquisition of Newfield

    PDF 2.00 MB

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