logo
Share SHARE
FONT-SIZE Plus   Neg

Encana, Mitsubishi Partner To Develop Cutbank Ridge Undeveloped Lands

Encana Corp. (ECA,ECA.TO) reached an agreement with Mitsubishi Corp. that would see the Japanese global integrated business enterprise invest nearly C$2.9 billion for a 40 percent interest in the Cutbank Ridge Partnership. The Partnership holds about 409,000 net acres of Encana's undeveloped Montney-formation natural gas lands in the company's Cutbank Ridge resource play in northeast British Columbia. As part of the Cutbank Ridge Partnership, Encana and Mitsubishi intend to create long-term shareholder value by jointly developing production capacity to deliver abundant natural gas to markets for decades ahead.

Pursuant to the deal, Encana would own 60 percent and Mitsubishi would own 40 percent of the Cutbank Ridge Partnership. Mitsubishi would pay C$1.45 billion on closing, which may occur later this month, and Mitsubishi would invest C$1.45 billion in addition to its 40 percent of the Partnership's future capital investment for a commitment period, which is expected to be about five years, thereby reducing Encana's capital funding commitments to 30 percent of the total expected capital investment over that period.

Randy Eresman, Encana's President & Chief Executive, said, Despite an increased capital spending profile on these natural gas assets resulting from this transaction, Encana plans to more than offset the near term impact on North American natural gas production oversupply by capital spending reductions elsewhere in its natural gas portfolio."

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
French car maker Renault SA reported Friday higher profit in its fiscal 2015, with strong growth in automotive profit and revenues. The company announced higher dividend. Looking ahead, for fiscal 2016, Renault expects to increase group revenues at constant exchange rates and improve group operating margin. Shares of Rolls-Royce Holdings Plc were gaining around 13 percent in the morning trading in London after the engine maker reported more-than doubled profit in its fiscal year 2015, with lower one-time items. Underlying earnings were hurt by weakness in Marine markets. Further, the company halved its dividends, and still expects lower revenues next year. German steel giant ThyssenKrupp AG reported a loss in its first quarter, compared to last year's profit as sales and orders were hurt by sharp deterioration in materials businesses. The company said its overall performance in the first quarter was within its full-year forecast corridor. Looking ahead, the company continues to expect higher net income and flat sales for fiscal 2016.
comments powered by Disqus
Follow RTT