June 27, 2014 8:21 a.m. ET
Apollo Global Management APO 0.00% Apollo Global Management LLC Cl A U.S.: NYSE $26.95 0.00 0.00% June 26, 2014 4:02 pm Volume (Delayed 15m) : 520,682 AFTER HOURS $26.95 0.00 0.00% June 26, 2014 5:53 pm Volume (Delayed 15m): 17,359 P/E Ratio 9.94 Market Cap $4.02 Billion Dividend Yield 2.23% Rev. per Employee $5,331,700 06/27/14 Apollo to Buy Encana's Bighorn... 06/20/14 Warehouse-Style Retailer Smart... 06/16/14 Italy's GTECH Begins Prelimina... More quote details and news » LLC on Friday confirmed a deal to buy energy producer Encana Corp.'s ECA.T -1.12% Encana Corp. Canada: Toronto $25.58 -0.29 -1.12% June 26, 2014 4:00 pm Volume : 1.47M P/E Ratio 23.41 Market Cap $18.95 Billion Dividend Yield 1.19% Rev. per Employee $2,143,280 06/27/14 Apollo to Buy Encana's Bighorn... 06/13/14 Canada Stocks to Watch: Amaya ... 06/05/14 Chesapeake Energy Faces Charge... More quote details and news » Bighorn properties in Alberta for about 2 billion Canadian dollars ($1.9 billion).
The deal for the Bighorn assets, which cover about 360,000 net acres and primarily produce natural gas, was first reported by The Wall Street Journal earlier this month.
"This transaction advances our strategy by unlocking value from our portfolio as we focus on developing our core growth plays and extracting additional value from our base assets," said Doug Suttles, Encana's president and chief executive.
Encana said the deal includes its working interests in all Bighorn-related pipelines, facilities and service arrangements.
Encana has been reducing its exposure to natural gas because of slumping prices. It sold its Jonah natural-gas properties in Wyoming last month to an affiliate of private-equity firm TPG Capital for $1.8 billion.
Apollo, a New York private-equity firm, has shown interest in natural-gas assets recently. Earlier this month, it committed $700 million in funding to Zenergy LLC, an oil and gas producer focused on developing properties in the U.S. In late May, it agreed to provide $500 million to fund an expansion of CSV Midstream Solutions Corp., a Canadian natural-gas gathering and processing company.
Apollo is making the Bighorn purchase through Jupiter Resources Inc., a private Canadian oil and gas exploration company managed by Apollo affiliates.
"We believe Jupiter Resources is acquiring a very attractive asset base in the core of the Deep Basin. We look forward to investing with the Jupiter Resources team as they further develop the vast resources contained within the Bighorn assets," said Rakesh Wilson, an Apollo partner.
The Bighorn deal is expected to close by the end of the third quarter, subject to regulatory approvals.
Write to Judy McKinnon at judy.mckinnon@wsj.com
0 comments:
Post a Comment