Shares of Encana Corp, Baytex Energy Corp and International Petroleum Corp, for examples, each plummeted by double-digits on the days they announced deals to buy rivals with shares. Cost Basis of Transferred Securities in a withdrawal. Total Proceeds = [16.41 x (# of Newfield Exploration shares owned)] – (Reorganization fee). Encana said it will issue 2.6719 common shares for … The acquisition is expected to close in the first quarter of 2019, and current Encana shareholders will own about 63.5% of the equity in the combined company. This is $16.41 in Encana shares (2.6719 x 6.14). However, there is always the chance the price we choose will not be the price chosen by your broker. "When you get into a period of such volatility, I think any kind of M&A is very difficult because revenues are certainly challenged.". Announces Investigation o.. Canada's Encana widens N. America reach with $5.5 bln Newfield deal, Chief Operating Officer & Executive Vice President, Chief Financial Officer & Executive Vice President. Login / Free Trial / Subscribe / Advertise. Or do you just throw in the towel?". High-value oil and condensates comprised more than 75% of liquids volumes. For those willing to hold on for a year or two, the Newfield acquisition looks like a reasonable payday. These four companies bring some tantalizing technologies and... Friday's top analyst upgrades and downgrades included Citrix... As the COVID-19 spreads again, more and more counties are likely... Everyone loves a good ghost story, whether you believe in... ALSO READ: Stifel Likes 5 Top Energy Stocks as Solid Q3 Earnings Start to Roll In. That’s pretty short-sighted it seems to us. Swiss-based IPC's shares have traded more in line with the industry since the steep sell-off last month when it announced its purchase of BlackPearl Resources, and investors generally support the deal, said CEO Mike Nicholson. Encana changed its name to Ovintiv later in 2019. Note: In a taxable Merger transaction, realized capital gains and the cost basis of the new shares have a component dependent on the price per share used to calculate the value of the shares received. The opening price of Encana on the day after the merger completion date was $6.14. Buybacks won’t make a ton of difference there either. Further deals may have to rely on shares and private equity, said Andy Mah, CEO of Advantage Oil & Gas. Any fractional shares received in this merger will likely be sold by your broker. ", (Reporting by Rod Nickel in Winnipeg, Manitoba and John Tilak in Toronto; Editing by Phil Berlowitz). Choose the S-4 dated 12/4/2018. Calculate the total value received for your Newfield Exploration shares by multiplying 16.41 by the total shares of Newfield Exploration owned. The company is currently a major natural gas producer. Some producers have reduced output and lower cash flow has left consolidation using stock as the main option. Newfield shareholders will receive 2.6719 Encana shares for every Newfield share they own. Enter a Sell transaction for the fractional shares of Encana dated 2/14/2019. Why don't my current members have K-1 forms? The information below is based on the information available from a form S-4 filed with the SEC. Ovintiv Inc. is a leading North American exploration and production (E&P) company focused on developing its high-quality, multi-basin portfolio. The total merger consideration is $16.41 per Newfield Exploration share. The total proceeds will be the cash-in-lieu amount listed on your broker statement. Newfield brings approximately 360,000 acres in prime acreage in Oklahoma’s Anadarko basin to the combined company. https://investor.ovintiv.com/sec-filings?filer=CIK%3A0001157806&cat=4&year=2018. The SEC filing for this merger can be found through the web site at: https://investor.ovintiv.com/sec-filings?filer=CIK%3A0001157806&cat=4&year=2018 . This merger is a taxable merger. Use the Suspense account to receive the sale proceeds. "It's hard to invest within Canada, and it's tough to get investor support when you expand outside. One complaint seems to be the time it will take for Encana to absorb the acquisition and get everyone singing from the same hymn book. The tax consequences to US shareholders of Newfield are described starting on page 126. "We're now well positioned for the recovery over the next two to three years," Nicholson said in an interview from Geneva. Encana holds acreage in the Montney shale play in northern Alberta and in the Permian Basin of Texas. According to the announcement, Newfield’s Anadarko acreage includes more than 6,000 gross well locations and about 3 billion barrels of oil equivalent in net unrisked resource. For example, if you owned 100 Newfield shares then enter 267.19  Encana shares purchased (2.6719 x 100). Even though Encana promised to boost its dividend by 25% (it’s now just 1.5 cents per share per quarter) and enlarge its share buyback plan, investors have not been impressed. Price information is from websites offering historical prices. The result, Nuttall said, will likely be more deals into early 2019, and a shrinking number of small-cap Canadian oil producers in the long term. If the companies publish guidance with a share price, we use that share price in our instructions to minimize possible differences between the accounting records and broker information. In a separate announcement of third-quarter results, Encana reported daily production of 378,200 barrels of oil equivalent, of which 178,700 barrels are liquids, or about 47% of total production. Encana Corporation (Encana) (TSX, NYSE: ECA) announced today that it has completed its acquisition of Newfield Exploration Company (Newfield) (NFX) in an all-stock transaction. Save the buy transaction. You would sell .19 Encana shares in this Sell transaction. The amount should be (16.41 x  # of Newfield  shares owned – reorganization fee). Date the transaction 2/13/2019. Monteverde & Associates PC Announces An Investigation Of Newfield Exploration.. NEWFIELD EXPLORATION COMPANY Rigrodsky & Long, P.A. Newfield’s stock traded up more than 10% in the noon hour Thursday, at $22.25 in a 52-week range of $18.67 to $35.20. Calgary-based Encana Corp. (NYSE: ECA) announced Thursday morning that it has agreed to acquire Newfield Exploration Co. (NYSE: NFX) in an … Shareholders are mainly interested in companies that pay dividends or buy back shares, said Cormark analyst Amir Arif. In addition to the Anadarko basin, Newfield has operations in the Williston Basin of North Dakota, the Uintah Basin of Utah and Oklahoma’s Arkoma natural gas play, along with assets offshore of China. ", "People are saying, 'let's not spend any capital. "It's almost like you can't win if you're a Canadian energy company," said Janan Paskaran, a partner at Torys LLP who provides M&A advice to energy companies. "Should we start to see (Canadian) pipelines and crude-by-rail improve, I think there's a huge amount of upside now in our share price. Encana Corp. (ECA.T, ECA) on Thursday said it agreed to buy fellow oil-and-gas company Newfield Exploration Co. (NFX) in a stock swap valued at about $5.5 billion. But shareholders are a notoriously fickle bunch, and with no significant dividend, share price growth is why they’re holding on to the stock. Encana completed its merger with Newfield Exploration on 2/13/2019 for Encana stock. Where do the Form 1065, schedule D, and K-1 entries come from in Club Accounting? Encana stock dropped nearly 16% to trade at $8.63, in a 52-week range of $8.44 to $14.31. Encana Corporation has announced that it has completed its acquisition of Newfield Exploration Company in an all-stock transaction. The total purchase price will be the same amount as the proceeds from the Newfield sale transaction. The Canadian oil patch has made 29 deals so far in the second half, worth $9.5 billion, the busiest half-year period for deals since the first half of 2017, according to Cormark Securities data. Newfield, which announced third-quarter results on Wednesday, reported consolidated production of more than 202,000 barrels of oil equivalent per day, of which 62% was liquids. The gain from the merger and cost basis of the new shares recorded in your accounting records will then differ from your broker information. Tax return forms do have specific areas to report these usually small differences. Because of the lack of detail in the tax code, both our choice and your broker’s choice would be reasonable estimates of market value for the shares received. Your records are NOT incorrect because they differ from your broker. As a taxable transaction this merger is treated as a sell of Newfield for the value of the Encana shares received followed by a buy transaction of Encana. Encana will issue new shares to pay for the acquisition. '", On Tuesday, Trinidad Drilling shareholders rejected a friendly stock deal to sell to Precision Drilling Corp, choosing instead the certainty of a cash offer from Ensign Energy Services. When will the Club Tax Printer software be available? "Do you increase in scale and get your market cap above $1 billion to get on the radar screen? Either of these prices is acceptable to the IRS and by choosing the lower price some realized capital gains will be deferred to a later date. Enter a buy transaction for the number of Encana shares you were entitled to receive in this merger. 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. [nL4N1Y24UP]. However, we suggest the following feature: Canadian oil producers trade shares for growth but investors hard to impress. The math indicates Encana is paying around $2.50 a barrel, a reasonable price these days. Even if only half those barrels are economically producible, that’s still a bargain. Choose the Suspense account as the source of funds for the purchase. Picking up 3 billion barrels of resource for $2.50 a barrel is an awfully good deal. This will be 2.6719 x (# of Newfield shares owned). Once the transaction is complete, Encana expects that more than half the company’s total output will be in higher-margin liquids. Why don't my tax forms show up after finishing the steps in the tax printer? For example, if you owned 100 Newfield shares, then the total purchase cost would be 1641.00 – reorganization fee. For example, if you owned 100 Newfield shares then you entered 267.19 Encana shares purchased. For example, if you owned 100 NFX shares your total proceeds would be (1641.00 – Reorganization fee). How can I tell if a dividend should be qualified or not? In cases where no guidance is available, we will choose the lower of the opening or closing price on the effective date.

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