Major oil and gas player Encana Corp. plans to acquire Texas-based shale-oil producer Athlon Energy, giving the corporation access to oil and natural gas-rich Permian Basin, according to a Calgary Herald article.
The $7.1 billion dollar acquisition deal, which was announced on Monday, September 29, includes a cash payout of close to $6 billion and the assumption of more than $1 billion of Athlon’s debt. Encana believes the purchase will add an equivalent of 30,000 barrels of oils per day, and will also make it possible for the company to produce 250,000 barrels of oil equivalent per day of production starting 2017.
Acquisitions such as this are designed to keep your business ahead of the competition. If you plan on bolstering your business in Cedar Rapids through acquisitions, a lawyer at Arenson Law Group, PC, is willing to give you sound legal advice and guidance. To learn more about how we can be of help, call us at (319) 363-8199 today.