US - Encana Corp (Encana) of Canada definitively agreed to acquire the entire share capital of Newfield Exploration Co (Newfield), a The Woodlands-based producer of crude petroleum and natural gas, valued at USD 7.194 bil, in a stock swap transaction. Encana offered 2.672 common shares per Newfield share. Based on Encana's closing stock price of USD 13.44 on 31 October 2018, the last full trading day prior to the announcement, each Newfield share was valued at USD 35.91.
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The purposes of the transaction were for Encana Corp and Newfield Exploration Co to achieve $250 million of expected annual synergies through greater scale, cube development and overhead savings, strengthen their operations, and to accelerate and increase shareholder returns.
Date Announced: 11/01/2018
Deal Status (as of publication date): Pending
Deal Value (US mil): $7,194.28
ACQUIRER ADVISORS*
Credit Suisse (Financial Advisor)
TD Securities Inc. (Financial Advisor)
Blake, Cassels & Graydon LLP (Legal Advisor)
Paul, Weiss, Rifkind, Wharton and Garrison LLP (Legal Advisor)
Shearman & Sterling LLP (Legal Advisor)
TARGET ADVISORS*
Goldman Sachs & Co. (Financial Advisor)
JP Morgan (Financial Advisor)
Scotiabank (Financial Advisor)
Kirkland & Ellis LLP (Legal Advisor)
Stikeman Elliott LLP (Legal Advisor)
Wachtell, Lipton, Rosen & Katz (Legal Advisor)
Newfield Exploration Co, headquartered in The Woodlands, Texas and with offices across the US, China and Malaysia, is an oil and gas exploration and production company with operations in Anadarko and Arkoma Basins of the Mid-Continent, the Rocky Mountains, onshore US Gulf Coast and the Gulf of Mexico, as well as in Malaysia and China, and the UK North Sea. Its principal activities are to explore, develop, and acquire crude oil and natural gas properties. Its domestic areas of operation include the Gulf Mexico, the onshore Gulf Coast, the Anadarko and Arkoma Basins of the Mid Continent and the Uinta Basin of the Rocky Mountains. The Company was founded in 1988.
Encana Corp, located in Calgary, Alberta, Canada, is an oil and gas exploration and a production company that holds interests primarily in Jonah, Piceance, East Texas, Fort Worth, Maverick Basin, and Columbia River Basin resource areas located in Wyoming, Colorado, and Texas. It also has interests in integrated oil and gas assets principally consisting of Cold Lake Air Weapons Range, Foster Creek, Christina Lake, and Borealis located in the US and Canada. In addition, the company owns interests in various properties in Atlantic Canada, Brazil, the Middle East, Greenland, and France. The Company is also involved in refining crude oil and marketing refined petroleum products. It serves primarily local distribution companies, industrials, and energy marketing companies. The Company was founded on 2002.
*List of advisors are those known at press time.