The nearly $8 billion merger of Newfield Exploration Co. and Canada’s Encana Corp. has been approved by shareholders in both firms.
Newfield is a major player in Oklahoma’s STACK and SCOOP plays. The $7.7 billion deal is expected to be formally closed on Wednesday.
As part of the transaction, Newfield investors will get about 2.67 common shares of Encana for each share of Newfield common stock they hold. Once completed, Encana shareholders will own 63.5 percent of the newly-combined company and Newfield shareholders will own the remainder.
Encana will also assume $2.2 billion in Newfield’s debt but the merger will expand the Canadian firm’s exploration ability in the Lower 48 states.
“This transaction creates a leading North American unconventional company,” Douglas James Suttles, Encana’s CEO and president, previously told analysts after the proposed merger was announced.
“The STACK and SCOOP adds a third material, high-quality asset to our complement of high-quality positions in the Permian and the Montney. It is consistent with our multi-basin strategy focused on the best parts of the best basins.”