Encana Acquires Newfield Exploration, Dilutes Shareholder Value
No-moat Encana agreed to acquire all of the outstanding shares of Newfield Exploration, in an all-stock deal valued at $5.5 billion. Under the agreement, Newfield shareholders will receive 2.67 shares of Encana stock, and Encana will assume $2.2 billion of Newfield’s net debt. After the deal closes, management expects to increase its dividend by 25% and increase the share buyback program by $1.5 billion. The current plan sits at $400 million. Management also expects $250 million of annual synerg...Encana is in the business of the exploration for, the development of, and the production and marketing of natural gas, oil and natural gas liquids (NGLs). All of Co.'s reserves and production are located in North America. As at Dec. 31, 2016, total proved developed and undeveloped reserves for natural gas, oil, and NGLs were 2.90 billion cubic ft., 155.6 million barrels (MMbbls), and 150.4 MMbbls, respectively. Co.'s operating and reportable segments are: Canadian Operations, USA Operations, and Market Optimization.
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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