Encana completes acquisition of Newfield Exploration
CALGARY -- Encana Corporation has announced that it has completed its acquisition of Newfield Exploration Company in an all-stock transaction.
This acquisition creates North Americas premier resource company with large-scale positions in the core of the Permian, Anadarko and Montney, said Doug Suttles, Encana president & CEO. Our multi-basin portfolio provides tremendous investment optionality to deliver liquids growth and free cash flow to support the continued return of capital to shareholders. We welcome the team from Newfield to Encana.
Demonstrating the quality of its business and its commitment to return capital to shareholders, Encana will proceed with its previously announced $1.25 billion share buyback in 2019, following receipt of regulatory approvals, and increase its dividend by 25%. In connection with the closing of the acquisition, Encana intends to implement cross guarantees whereby Encana will guarantee Newfields outstanding notes and Newfield will guarantee Encanas outstanding notes.
With the close of this transaction, Encana welcomes the appointment of Steven W. Nance and Thomas G. Ricks to its board of directors, both of whom previously served as directors on the Newfield Board. Biographies of the new members of Encanas Board are available on Encanas website.
