Latest News and Analysis
Deals and Transactions
Track Drilling (Rigs by operator) | Completions (Frac Spreads)

    emailEmail    |    bookmarkBookmark

Encana to Acquire Newfield in All-Stock Deal Worth $5.5 Billion

Announced Date
November 01,2018
Deal Value $
Net Acres
Transaction Type
Price Per BOE $
Source Documents:
   Source Link
   Source Link
Mid-Continent - Arkoma Basin,Mid-Continent - Anadarko Basin,Williston Basin

United States



Production & Reserves
199,000 Boe/d

Production Mix
61 % Liquid

678 MMboe (1P)

Production ($/boe/d)

$Price/Net Acre

$1P Boe

Adj. $/acre is based on production @40,000 Boe/d

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."


Price History

Date Deal Headline Price$/acre
Apr-03-2023 Grayson Mill Adds More Bakken, Acquires Ovintiv's Assets For $825 Million - -
Sep-06-2022 Sitio Royalties, Brigham to Merge in All-Stock Deal Worth $4.8 Billion - -
Jun-08-2022 Devon Acquires Williston Assets from PE-Backed E&P in $865 Million Cash Deal - -

Other Newfield Exploration Co. Deals

Announced DateBuyerSellerDeal Value($mm)LocationCategory
Aug-03-2016 - - Click here Texas  E&P
May-05-2016 - - Click here Oklahoma  E&P
Jul-30-2014 - - Click here Oklahoma  E&P
Oct-22-2013 - - Click here Texas  E&P
Sep-18-2012 - - Click here   E&P

Other Ovintiv Inc Deals

Announced DateBuyerSellerDeal Value($mm)LocationCategory
Apr-03-2023 - - Click here Texas  E&P
Apr-03-2023 - - Click here North Dakota  E&P
Jul-06-2022 - - Click here Montana  E&P
Mar-24-2021 - - Click here Texas  E&P
Jul-08-2019 - - Click here Oklahoma  E&P