By Colin Kellaher

Encana Corp. (ECA.T, ECA) on Thursday said it agreed to buy Newfield Exploration Co. (NFX) in a stock swap valued at about $5.5 billion.

Encana said it will issue 2.6719 common shares for each Newfield share. The deal values Newfield at about $27.36 a share, a roughly 35% premium based on Wednesday's U.S. closing prices of $10.24 for Encana and $20.20 for Newfield.

Encana shareholders will own about 63.5% of the combined company, while Newfield shareholders will own about 36.5%.

Encana will also assume $2.2 billion of Newfield debt.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

November 01, 2018 06:42 ET (10:42 GMT)

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