Encana has entered into a definitive merger agreement with Texas independent operator Athlon Energy for USD 5.93 billion in cash, offering to buy all issued and outstanding Athlon common stock at a price of USD 58.50 per share. The total value of the transaction will be approximately USD 7.1 billion after Encana assumes an additional USD 1.15 billion in senior notes. The acquisition includes approximately 140,000 net acres within the Permian Basin’s Midland basin, and Encana expects the transaction to add around 30,000 B/D of current crude production to the company’s total output.
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