(MENAFN) Encana, Canadian energy firm, announced reaching an agreement to acquire Texas's Athlon Energy for USD7.1 billion, aiming to boost its shift into oil, The Peninsula Qatar reported.
The Calgary-based natural gas producer will pay USD5.93 billion in cash for the acquisition of the US company, along with taking responsibility of Athlon's debt of USD1.15 billion.
The estimated price is 25 percent higher than Athlon's closing price on Friday. Athlon produces 30,000 barrels of oil equivalent per day in the Permian basin, a key oil-producing region in Texas.
Encana hopes to meet its target of generating up to 75 percent of operating cash flow from liquids production, including oil and natural gas liquids, next year instead of 2017.
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