

Encana to Acquire Newfield in All-Stock Deal Worth $5.5 Billion
Multiples
Transaction Details:
Encana Corp. has inked a deal to acquire Newfield Exploration in an all-stock transaction valued at approximately $5.5 billion. In addition, Encana will assume $2.2 billion of Newfield net debt.
This deal closed on February 13, 2019.
Price (US$ mm)
- Cash : $2,200
- Stock : $5,500
The transaction is expected to close in the first quarter of 2019.
Over the last 3 years, the company has been busy selling some 1 million net acres for a total of $2.8 billion. Below is chart of the deals.
Newfield Assets
- Approximately 360,000 net acres in the STACK/SCOOP in the Anadarko Basin
- Contains over 6,000 gross risked well locations
- Includes ~3 billion BOE of net unrisked resource
- 2Q18 Newfield production of 199 MBOEPD
Strategic Rationale
- Creates a leading multi-basin company with large, premium positions in three of North America's highest-quality, oil and liquids weighted plays; the Permian, STACK/SCOOP and Montney
- Immediate scale and value creation; oil and condensate production up by over 54 percent and proved reserves up by around 85 percent
- Adds a significant premium position in the core of the world-class, oil-rich, STACK/SCOOP in the Anadarko Basin
- Creates North America's second largest producer of unconventional resources; pro-forma third quarter 2018 production of 577,000 barrels of oil equivalent per day (BOE/d), including liquids production of around 300,000 barrels per day (bbls/d)
Mgmt Commentary
Doug Suttles, Encana President & CEO, commented: "This strategic combination advances our strategy and is immediately accretive to our five-year plan. 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."
Lee K. Boothby, Newfield Chairman, President and CEO, stated, "This transaction is the best path forward for our company. The combination of the two companies provides our investors with the very attributes that should be differentiated in today's energy sectoroperational scale, proven execution in development of large, liquids-rich onshore resource plays, a peer-leading cost structure and an exceptionally strong balance sheet.
"We strongly believe that the synergies between these two organizations will create a dominant diversified resource player that is positioned to drive future value. The new organization will be capable of efficiently developing high-value growth assets while delivering significant cash to shareholders. 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. The merger will accelerate the development of these assets and as a result, capture full value for our owners."
Date | Deal Headline | Price | $/acre |
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Apr-03-2023 | Grayson Mill Adds More Bakken, Acquires Ovintiv's Assets For $825 Million | - ![]() |
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Sep-06-2022 | Sitio Royalties, Brigham to Merge in All-Stock Deal Worth $4.8 Billion | - ![]() |
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Jun-08-2022 | Devon Acquires Williston Assets from PE-Backed E&P in $865 Million Cash Deal | - ![]() |
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Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
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Aug-03-2016 |
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Click here | Texas | E&P |
May-05-2016 |
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Click here | Oklahoma | E&P |
Jul-30-2014 |
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Click here | Oklahoma | E&P |
Oct-22-2013 |
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Click here | Texas | E&P |
Sep-18-2012 |
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Click here | E&P |
Other Ovintiv Inc Deals
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
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Apr-03-2023 |
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Click here | Texas | E&P |
Apr-03-2023 |
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Click here | North Dakota | E&P |
Jul-06-2022 |
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Click here | Montana | E&P |
Mar-24-2021 |
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Click here | Texas | E&P |
Jul-08-2019 |
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Click here | Oklahoma | E&P |