Encana Corp.’s combination with Newfield Exploration Co. to create a North American onshore exploration beast is set to be completed on Wednesday following approval by the companies’ shareholders.
The estimated $7.7 billion stock-and-debt deal announced last November is going to expand Calgary-based Encana’s reach beyond its core four exploration and production areas of the Permian Basin and Eagle Ford Shale in Texas and its holdings in Canada’s Montney and Duvernay plays.
Newfield’s portfolio adds myriad Lower 48 opportunities, mostly concentrated in 360,000 net acres of Oklahoma’s two deep stacked formations of the Anadarko Basin, where it is one of the leading producers.
The Houston producer also has holdings in the Arkoma Basin in Oklahoma, as well as in the Williston Basin in North Dakota, the Uinta Basin of Utah and offshore China.
For each share of their common stock, Newfield shareholders are to receive 2.6719 of Encana common shares. Encana shareholders would own 63.5% of the company, with Newfield controlling the remaining stake.
The merger creates North America’s second largest unconventional resources producer. Pro forma 3Q2018 production was 577,000 boe/d, including liquids output of around 300,000 b/d, according to Encana.