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Wednesday, May 7, 2014

Encana to double oil output with $3.1 billion U.S. shale deal, (NYSE: FCX)

Canada's largest natural gas company Encana Corp said on Wednesday it is buying producing assets in the Eagle Ford shale field in Texas from Freeport-McMoRan Copper & Gold for $3.1 billion, nearly doubling its oil output.Encana has been concentrating on five shale fields that are rich in oil and natural-gas liquids to lessen its dependence on lower-value gas. This transaction will add a sixth focus area and is aligned with Encana's growth strategy, the company said."Gaining a position in a world class, oil-rich resource play like the Eagle Ford accelerates the transition of our portfolio and underscores our investment focus on high margin assets" said Encana's Chief Executive Doug Suttles, in a statement.Calgary-based Encana has been focusing on five shale fields - Montney in British Columbia, Duvernay in Alberta, the DJ Basin in Colorado, the San Juan Basin in the U.S. Southwest and the Tuscaloosa Marine Shale in the U.S. South. It has sold natural gas properties in Wyoming's Jonah field and other acreage in East Texas to reduce its dependence on pure gas assets.

Freeport-McMoRan Copper & Gold Inc. (FCX) is an international mining company. Shares of FCX remained unchanged at $33.84. In the past year, the shares have traded as low as $26.37 and as high as $38.09. On average, 10338500 shares of FCX exchange hands on a given day and today's volume is recorded at 3900.



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