By September 21, 2016 Read More →

Encana selling $1 billion worth of shares for Permian Basin expansion

Encana is expecting twice the amount of Permian wells on stream in 2017 compared to 2016

shares

Aerial view of the Permian Basin

Encana Corporation announced a public offering to sell 107 million shares at an offering price of US$9.35 per share, for gross proceeds of US$1,000,450,000.

Calgary-based Encana intends to use about half of the proceeds to fund it’s 2017 capital program, which will focus on the Permian Basin in Texas, the largest oil field in the US.

The company will grow Permian production by increasing the number of rigs in the play, which is expected to result in twice as many Permian wells on stream in 2017 as compared to 2016.

The remaining proceeds will be used to enhance Encana’s balance sheet flexibility by repaying indebtedness under its credit facilities.

The allocation of proceeds may vary depending upon numerous factors, including changes in commodity prices and increased capital efficiency.

Shares for Encana on the TSX are up 85 per cent this year. For New York trading, shares of Encana was down 4.8 per cent to $9.39.

The offering is expected to close on Sept. 23.

Completion of the offering is subject to, and conditional upon, the receipt of all necessary approvals, including approval of the Toronto Stock Exchange and the New York Stock Exchange.

Ph: 432-978-5096 Website: www.mapleleafmarketinginc.com

Ph: 432-978-5096 Website: www.mapleleafmarketinginc.com

Posted in: Energy Financial

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