Calgary-based Encana to buy Athlon Energy for $7.1-billion

CALGARY – Encana Corp. has agreed to buy Texas-based Athlon Energy in a friendly takeover worth about US$7.1 billion.

The Calgary-based natural gas producer will pay nearly US$6 billion in cash and assume about US$1.15 billion of Athlon’s debt.

Encana has scheduled a conference call with media and analysts to discuss the deal, which has the support of Athlon’s board of directors.

Athlon’s shareholders are being offered US$58.50 per share cash, for a total of US$5.93 billion.

Encana says the transaction will add the equivalent of about 30,000 barrels per day of production.