Eyeing markets and growth options, Encana moving to US

By Luke Geiver | November 04, 2019

Encana Corp. is changing its name and moving out of Canada to the U.S. The Calgary-based exploration and production company with shale oil and gas assets in multiple North American shale plays announced its intentions recently.

Operating under a new name, Ovintiv Inc., the E&P could be rebranded and moved some time in 2020.

According to long-time CEO Doug Suttles, the company believes the move will help it compete in broader markets and potentially access more investment dollars. In the company’s Q3 investor update, Suttles highlighted the passive ownership tendencies in the U.S. along with a substantially larger equity market. The move to the U.S. would not mean a change in business plan or strategy for the company.

“Over the last five-plus years, we have transformed our portfolio and our culture. We've created a high quality, liquids focused multi-basin portfolio. Our focus on innovation and efficiency is consistently delivering superior financial and operational performance,” Suttles said, adding, “A domicile in the United States will expose our company to increasingly larger pools of investment in U.S. index funds and passively managed accounts, as well as better align us with our U.S. peers.”

While the board of directors and shareholders still need to approve the change, Suttles and his team have a plan in place for the common shares. A consolidation and share exchange will be completed for effectively one share of common stock of Ovintiv for every common shares of Encana.

Encana is currently running four drilling rigs in the Permian, along with other operations in the Anadarko and Montney play of Canada.