​Encana moves deeper into the U.S. with completed acquisition of Newfield Exploration

Encana CEO Doug Suttles. Image: Encana

Encana has closed the largest-ever deal in its history, its acquisition of Texas-based Newfield Exploration.

The all-stock transaction was valued at US5.5 billion when it was announced late last year.

The deal, which the companies said creates North America’s second-largest shale explorer, gives Encana positions in the Stack and Scoop shale fields in Oklahoma, the Bakken region of North Dakota and the Uinta play in Utah.

In November, Encana founder and former CEO Gwyn Morgan said he was disappointed by the transaction, which moves focus to the U.S. and dashes his hopes that the company would represent Canada on the world stage.

Morgan, who named the oil and gas producer Encana to evoke “Energy Canada,” blamed the move on Prime Minister Justin Trudeau’s environmental policies, which he has said are making the country irrelevant in the global energy industry.

The acquisition also moves the company toward what current CEO Doug Suttles called a “headquarter-less model,” with operations controlled from offices near Houston, Suttles’ home city of Denver and in the company’s official base of Calgary.

— With files from Bloomberg

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