Energy Deals Have Speculators Looking North

Dealmaking is back in the energy business.

The recently acquisitive Devon Energy (DVN Quote) agreed Tuesday to buy Canadian exploration and production company Anderson Exploration (AXN Quote) for nearly $3.4 billion in cash, a 50% premium to Anderson's closing price Friday.

The deal makes Devon the largest independent oil and gas producer in North America, and has some observers expecting a flood of similar deals. Devon dropped 4% Tuesday morning on concern it was overpaying for the Canadian company's assets; the deal will be slightly dilutive to earnings in the near term, Devon said. ...