Jordan Blum is a senior energy reporter at the Houston Chronicle since 2015. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. In November, when the merger plan was announced, Encana predicted those resources would boost its oil and condensate production by more than 54 percent and its proved reserves by about 85 percent. Encana calls the acquisition strategic, saying it will create a multi-basin company that's highly active in both nations. The Newfield deal extends Encana’s reach into the shale fields of Oklahoma. Marathon Petroleum acquired San Antonio-based refiner Andeavor Corp. in October 2018. Newfield soared as much as 14 percent in New York. Newfield shares closed at $20.20 US on the New York Stock Exchange on Wednesday, while Encana shares closed at $13.44 Cdn on the Toronto Stock Exchange. Encana Corp. took its world-class portfolio of assets and made it better Tuesday by adding some of Oklahoma’s best. “The combination of the two companies provides our investors with the very attributes that should be differentiated in today’s energy sector – operational scale, proven execution in development of large, liquids-rich onshore resource plays, a peer-leading cost structure and an exceptionally strong balance sheet. We want to hear from you. "The merger will accelerate the development of these assets and as a result, capture full value for our owners. Revenue totalled US$1.26 billion, up from US$861 million. News of the acquisition came as Encana, which keeps its books in U.S. dollars, reported a profit of US$39 million or four cents per share for the quarter ended Sept. 30. Frequent CenterPoint outages happen rain or shine,... Beyoncé's second Ivy Park release is on the way. “This strategic combination advances our strategy and is immediately accretive to our five-year plan,” said Doug Suttles, Encana president and chief executive. The deal requires the support of a two-thirds majority vote of Newfield shareholders and a majority vote by Encana shareholders. Encana is focusing on high-margin, liquids-rich production from the Montney and Duvernay oilfields in Canada and the Eagle Ford and Permian in the United States as part of a five-year plan to boost output. Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem. Encana said it and Newfield Exploration Co.'s boards both have approved an all-stock deal worth $5.5 billion to close the transaction. "The combination of the two companies provides our investors with the very attributes that should be differentiated in today's energy sector — operational scale, proven execution in development of large, liquids-rich onshore resource plays, a peer-leading cost structure and an exceptionally strong balance sheet," Boothby said in a statement. Encana Corp.’s founder and former chief executive officer Gwyn Morgan said he’s disappointed by the driller’s $5.5 billion purchase of Newfield Exploration Co., which moves focus to … "Throughout our 30-year history, Newfield has worked to create a strong portfolio of assets managed by some of the best and brightest people in the business," Boothby said. Production in the quarter totalled 378,200 barrels of oil equivalent per day, up from 284,000 in the third quarter of 2017. Two directors from the Newfield board will join the Encana board upon closing. London-based ENSCO acquired Houston-based Atwood Oceanics in 2017. All Rights Reserved. As part of the deal, Encana will get greater access to the Anadarko basin as well as the Permian and Montney areas. Production in the quarter totalled 378,200 barrels of oil equivalent per day, up from 284,000 in the third quarter of 2017. On Tuesday, Newfield officials said 10 rigs were actively drilling locations in Oklahoma. ANOTHER DEAL: Houston driller WildHorse acquired by shale pioneer Newfield's prime operating area is about 360,000 net acres in Oklahoma's oil-rick SCOOP and STACK shale plays. Under the terms of the deal, Newfield shareholders will receive 2.6719 Encana common shares for each share of Newfield common stock. Shares of Encana Corporation were trading down sharply Thursday after the company announced it will acquire U.S. oil and gas producer Newfield Exploration Company in an all-stock deal valued at US$5.5 billion. U.S. listed shares of Encana were trading slightly up at $10.30, having closed at $10.24 on Wednesday. Terms were not disclosed. Its shareholders agreed early Tuesday with counterpart investors in Newfield Exploration Co. to merge the two firms in a deal worth an estimated $7.7 billion, which includes Encana’s assumption of about $2.2 billion of Newfield debt. 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. Newfield's prime operating area is about 360,000 net acres in Oklahoma's oil-rick SCOOP and STACK shale plays. Once the deal is completed, Encana shareholders will own approximately 63.5 per cent of the combined company and Newfield shareholders will own about 36.5 per cent. Approval of the deal requires the support of a two-thirds majority vote of Newfield shareholders and a majority vote by Encana shareholders. Encana also has agreed to pick up another $2.2 billion in debt held by Newfield. Canadian oil and gas producer Encana said on Thursday it will buy Newfield Exploration Co. for $5.5 billion, for greater access to North America's biggest oil patches and making it one of the largest shale oil producers in the region. Commenting on NewsOK requires a NewsOK Pro or Oklahoman subscription. Encana will also assume $2.2 billion US of Newfield debt. Revenue totalled $1.26 billion US, up from $861 million US. Calgary-based Encana said it would issue 2.6719 common shares for each Newfield share. Going forward, Encana expects liquids production to contribute over 50 percent of total company production, driving continued margin expansion and returns. While Encana is Calgary-based, the company actually has more oil and gas activity in Texas than Newfield with operations in both the Permian Basin and the Eagle Ford shale. The acquisition also includes the assumption of $2.2 billion in Newfield debt. Frequent CenterPoint outages happen rain or shine, customers say, OPEC+ faces growing pressure to change course as ministers meet, Tilman Fertitta’s Golden Nugget in Lake Charles reopens, Chron Exclusive: Pay only $35.99 for this Astros hoodie, These holiday kitchen items are 50% off at Hobby Lobby. It is a priority for CBC to create a website that is accessible to all Canadians including people with visual, hearing, motor and cognitive challenges. Shares of Newfield rose about 19 percent to $24.06 in pre-market trading. The deal is expected to close in the first quarter of 2019, subject to regulatory and shareholder approval. When you buy through links on our site, we may earn an affiliate commission. Newfield CEO Lee Boothby called the deal the best path forward for the company, selling at a premium and returning more value to shareholders. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. As part of the all-stock deal, Encana will get greater access to the Anadarko basin as well as the Permian and Montney areas. Two directors from the Newfield board will join the Encana board upon closing. “Our track record of consistent execution gives us confidence to accelerate and increase shareholder returns. The new organisation will be capable of efficiently developing high-value growth assets while delivering significant cash to shareholders. Houston's CenterPoint Energy bought Indiana natural gas utility Vectrin in April 2018. Encana was a little more balanced toward natural gas production while Newfield is oil-focused, so the combination weights the expanded Encana more toward the more valuable crude oil. Photo by Chris Landsberger, The Oklahoman, Jack Money has worked for The Oklahoman for more than 20 years. SemGroup of Tulsa bought the Houston Fuel Oil Terminal Co., which connects pipelines from all major Texas oil and gas basins. Newfield’s leadership has said investors will benefit from the merger through reduced costs involving efficiencies in scale, plus the strong balance sheet that Encana, based in Calgary, Canada, brings to the new company. In announcing the merger, Encana also said it is raising its dividend payout to investors by 25 percent and growing its share buyback program in order to appease shareholders. He also said Encana believed Oklahoma’s STACK and SCOOP plays are world-class resources, that Newfield’s holdings within those plays were among the best and that Encana believed the merger set up significant opportunities for efficiencies and synergies that could save the combined firm $250 million annually in general and administrative and drilling and completion costs. The two companies have entered into a definitive agreement which will see Encana also assume $2.2bn of pre-existing Newfield debt. Ensco purchased Houston-based offshore driller Rowan Cos. in October 2018. Audience Relations, CBC P.O. Houston-based Genesis Energy branched out into the mining business by acquiring Tronox Limited's alkali operation in Stamford, Conn. Houston's Plains All American Pipeline struck a deal with Alpha Holding Co. for additional pipeline assets in the Permian Basin. During that time, he has worked for the paper’s city, state, metro and business news desks, including serving for a while as an assistant city editor. in the Unita Basin of Utah and the Williston Basin of North Dakota. Encana also noted that the deal would have an impact on immediate scale and value creation, with oil and condensate production up by over 54 percent and proved reserves up by around 85 percent. EnCana said liquids production will contribute over half of the combined company's production and help expand margins. Houston-based Phillips 66 Partners LP purchased Merey Sweeny LP, Energy Transfer Crude Oil and Dakota Access in 2017. Houston-based Noble Energy acquired Clayton Williams Energy of Midland in 2017, boosting its oil and gas fracking operations. The result compared with a profit of $294 million US or 30 cents per share in the same quarter last year. PlainsCapital Bank's parent company bought The Bank of River Oaks in February 2018, acquiring all three of its branches. “This transaction creates a leading North American unconventional company,” Douglas James Suttles, Encana’s CEO and president, told analysts after the proposed merger was announced. Newfield reported a net income in the third quarter of $224 million. Toronto-based Canada Pension Plan Investment Board acquired Houston development group Parkway Inc. in 2017. Under the terms of the deal, Newfield shareholders will receive 2.6719 Encana common shares for each share of Newfield common stock. “Our multi-basin portfolio provides a powerful competitive advantage, helping us manage risk, provide optionality to direct capital to our highest margin opportunities and transfer learnings across the business.”, “This transaction is the best path forward for our company,” said Lee K. Boothby, chairman, president and chief executive of Newfield.
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