Encana Corp. is selling off its Arkoma Basin position as the Calgary, Alberta-based company continues to digest the slew of assets it acquired earlier this year from its multibillion-dollar deal for U.S. independent Newfield Exploration Co.
An undisclosed company agreed to buy the Arkoma assets, comprising roughly 140,000 net acres of leasehold in Oklahoma, Encana said in a July 8 release. Production from the assets is currently about 77 million cubic feet equivalent per day, 98% of which is natural gas.
Encana said it will receive $165 million cash from the Arkoma exit, which is in line with estimates made by analysts with Tudor, Pickering, Holt & Co. (TPH) in a research note on July 8. The TPH analysts also noted that the Arkoma sale represents the second of Newfield’s legacy assets to go.