Encana To Split

(May 11, 2008) EnCana Corporation announced this morning their intention to split the company into two separate energy companies:

• one a natural gas company with an outstanding portfolio of early life, North American, natural gas resource plays (GasCo)
• the other a fully integrated oil company with industry-leading in-situ oilsands properties and top-performing refineries, as well as an underlying foundation of reliable oil and gas resource plays (IntegratedOilCo or IOCo)

Under the proposed transaction, expected to be completed in early 2009, EnCana common shareholders will receive one share in each of GasCo and IOCo in exchange for each EnCana share held. Dividends from each of the operating companies are expected to total the quarterly $0.40/share Encana shares currently being paid.

Encana Corporation has a current market capitalization of about $75 billion (CDN).

*Monday Update*: Encana stock opened at $93/share Monday morning, and at noon was trading just under $93/share (up 7.5% from Friday's $86.52 close)

The designated executives of the two companies are:

    IOCo:

• Brian Ferguson, EnCana's Chief Financial Officer, is designated President and Chief Executive Officer
• Ivor Ruste, EnCana's Chief Risk Officer, is designated Chief Financial Officer
• John Brannan, President, Integrated Oil, will continue to lead this division
• Don Swystun, President, Canadian Plains, will continue to lead this division

    GasCo:

• Randy Eresman is designated President & Chief Executive Officer
• Sherri Brillon, EnCana's Executive Vice-President, Strategic Planning & Portfolio Management, is designated Chief Financial Officer
• Mike Graham, President, Canadian Foothills, will continue to lead this division
• Jeff Wojahn, President, USA, will continue to lead this division

   
EnCana's other corporate officers, Sheila McIntosh, Executive Vice-President, Corporate Communications; Bill Oliver, Executive Vice-President Corporate Development and President, Midstream & Marketing; Gerry Protti, Executive Vice-President, Corporate Relations and President, Offshore & International Division and Hayward Walls, Executive Vice-President, Corporate Services, will also have executive roles in one of the two companies.
 

Jim Sparrow sells Calgary Real Estate with Keller Williams Platinum Realty & specializes in South Calgary estate and luxury homes. Visit our website at Calgary Luxury Real Estate or contact me directly at 403.703.2404

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