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Monday, September 29, 2014

Canada's Encana to purchase Athlon Energy for $5.93 bln, (NYSE: ATHL)

Encana Corp , Canada's largest natural gas producer, said it would purchase Athlon Energy Inc for $5.93 billion in cash, excluding debt, as it accelerates its plan to focus on more-lucrative oil and natural-gas liquids (NGLs).The deal, which includes about 140,000 net acres owned by Athlon in the oil-rich Permian Basin in Texas, adds another core region to the six shale fields where Encana is concentrating its spending.With the deal, Encana said it now expected to achieve 75 percent of operating cash flow from liquids production in 2015, two years ahead of its earlier projection.Athlon, based in Fort Worth, Texas, produces about 30,000 barrels of oil equivalent per day (ob/ed).

Athlon Energy Inc., is an independent exploration and production company. Shares of ATHL traded higher by 2.61% or $1.19/share to $46.73. In the past year, the shares have traded as low as $26.91 and as high as $51.63. On average, 1124720 shares of ATHL exchange hands on a given day and today's volume is recorded at 686081.