North American energy producer Encana Corp. has announced its plan to purchase Texas-based Athlon Energy Inc. in a deal worth $7.1 billion, The Calgary Herald reported on September 29.
The deal outlines payment to Athlon of nearly $6 billion and the assumption of Athlon’s debt amounting to more than $1 billion. Encana CEO Doug Suttles said the acquisition will allow the company to generate three-fourths of its operating cash flow from liquids two years earlier than expected. Encana also believes the deal will provide them 5,000 drilling locations and 3 billion barrels of potential oil and natural gas found underground.
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