Encana said that the cash tender offer made by Alceno Acquisition, its indirect, wholly owned subsidiary to acquire all issued and outstanding shares of Athlon Energy expired at midnight ET, Nov. 12. The company expects to complete the offer and the merger of Alceno and Athlon Energy on Thursday.
The $7.1 billion acquisition will give Encana a 140,000 net acre position in the Permian Basin. The company expects the acquisition will add about 32,000 barrels of oil equivalent a day to its production.
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TheStreet Ratings team rates ENCANA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENCANA CORP (ECA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income."