Encana Announces Company Overhaul, Cutting 20 percent Jobs

This article was last updated on April 16, 2022

Canada: Free $30 Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Free $30 Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…

In a recent announcement, Calgary-based natural gas giant Encana Corp. has unveiled a bold move intended to overhaul a completely new corporate strategy, which will result in 20 per cent decrease in its work force, while it focuses on five North American resource plays and spinning off royalty-producing properties into a separate company. Encana Corp. will also be cutting its quarterly dividend to seven cents from 20 cents. Its president and chief executive officer, Doug Suttles, mentioned on Tuesday that “the current level is consistent with maintaining a strong balance sheet in a volatile commodity price environment and recognizes the attractive investment options within our portfolio.”

It was explained that Encana will be investing an estimated 75 per cent of its 2014 capital into five high-return oil and liquids-rich plays, namely Montney, Duvernay, DJ Basin, San Juan Basin and Tuscaloosa Marine Shale. Additionally, it intends to transfer its so-called fee title land position and associated royalty interests across southern Alberta, i.e. almost five million net acres where the company holds oil and gas rights and can collect royalties on production, into a new company through an initial public offering by 2014.

Encana revealed that it plans to keep a “significant” stake in the new company aimed at managing leasing activities in the Clearwater region. Moreover, the company will also be selling assets immediately. These dramatic changes are efforts of Mr. Suttles, who intends to extensively overhaul the company by shifting its focus to natural gas liquids such as butane and propane, some of which have proven more profitable than natural gas.

Share with friends
You can publish this article on your website as long as you provide a link back to this page.

Be the first to comment

Leave a Reply

Your email address will not be published.


*