Encana buying Athlon Energy for $5.93 billion NEW YORK (AP) — Oil and natural gas company Encana is buying Athlon Energy Inc. for $5.93 billion in an effort to boost is oil production by tapping into Texas’s booming Permian Basin. Canada’s Encana Corp. will also assume $1.15 billion in debt, bringing the transaction’s total value to approximately $7.1 billion. Encana, a major natural gas producer, has been shifting its focus from natural gas to more lucrative oil production in recent months. The Permian Basin, which stretches from Texas to New Mexico and has long been an important oil source for U.S. drillers, is undergoing a revival thanks to new drilling techniques. It is one of the biggest new sources of oil production in the U.S., along with the Eagle Ford shale in South Texas and the Bakken formation in North Dakota. “This transformative acquisition further accelerates our strategy and provides us with a prime position in what is widely acknowledged as one of North America’s top oil plays,” said Doug Suttles, Encana President & CEO, in a statement. Encana will receive access to about 140,000 net acres in the Permian Basin. The company said it plans to invest at least $1 billion of capital in the Permian [...] newsintx/encana-buying-athlon-energy-for-5-93-billion/
Posted on: Mon, 29 Sep 2014 15:50:11 +0000
Trending Topics
Recently Viewed Topics
© 2015