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Monday, September 29, 2014

Encana to purchase Athlon for $5.93 billion in push for oil, (NYSE: ATHL), (NYSE: TRI), (TSE: TRI.TO)

Canada's Encana Corp said on Monday it will purchase Athlon Energy Inc for $5.93 billion in cash, taking aim at Athlon's oil-rich lands in Texas's Permian Basin and at jump-starting its plan to boost output of lucrative oil and natural-gas liquids.Encana, Canada's largest natural-gas producer, is offering $58.50 per Athlon share, a 25 percent premium on the stock's Friday closing price. The deal would give the Calgary-based company control of about 140,000 acres in the oil-rich Permian Basin, where Encana says it can raise liquids output by two thirds, to 50,000 barrels per day, by 2015.With the purchase, Encana adds another core region to the six shale fields in Canada and the United States in which it concentrates its spending. The acquisition also speeds Encana's transformation from a gas-heavy company to a major oil producer, a process started last year by Chief Executive Doug Suttles."We like the deal," said Robert Taylor, senior vice-president at Canoe Financial, which holds about 3.17 million Encana shares, according to Thomson Reuters data. "Strategically it's exactly what the company said it would do ... (The price) is a little bit rich relative to what a lot of people would have expected but it's a high-quality asset."

Athlon Energy Inc., is an independent exploration and production company. Shares of ATHL traded higher by 24.8% or $11.59/share to $58.32. 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 41293040.

Thomson Reuters Corporation (Thomson Reuters) is a provider of information for the world?s businesses and professionals. Shares of TRI traded higher by 0.06% or $0.02/share to $36.28. In the past year, the shares have traded as low as $33.21 and as high as $38.73. On average, 667726 shares of TRI exchange hands on a given day and today's volume is recorded at 577648.

Thomson Reuters Corporation (Thomson Reuters) is a provider of information for the world?s businesses and professionals. Shares of TRI fell by 0.1% or $-0.04/share to $40.45. In the past year, the shares have traded as low as $35.07 and as high as $42.10. On average, 635713 shares of TRI.TO exchange hands on a given day and today's volume is recorded at 451392.



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