Encana Corp., Canada’s second- largest natural gas producer, agreed to buy Athlon Energy Inc. for $5.93 billion in cash, gaining a foothold in the most- prolific U.S. oil producing region.

The $58.50-a-share agreement represents a 25 percent premium to Fort Worth, Texas-based Athlon’s closing price on Sept. 26, Encana said today in a statement. The deal includes the assumption of $1.15 billion in long-term debt. Athlon, whose largest shareholder is private-equity firm Apollo Global Management LLC, produces about 30,000 barrels a day in the Permian Basin in Texas.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.