Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Encana, Mitsubishi Partner To Develop Cutbank Ridge Undeveloped Lands

Encana Corp. (ECA: Quote,ECA.TO: Quote) 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."

Register
To receive FREE breaking news email alerts for EnCana and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Consumer confidence in the U.S. improved for the third consecutive month in July, according to a report released by the Conference Board on Tuesday, with the consumer confidence index jumping to its highest level in almost seven years. Stocks have moved mostly higher in early trading on Tuesday after ending the previous session roughly flat. The major averages have climbed into positive territory, although there does not seem to be much conviction behind the upward move. Home prices in major U.S. metropolitan areas continued to increase at a slower pace in the month of May, Standard & Poor's revealed in a report released on Tuesday. The report said the S&P/Case-Shiller 20-City Composite Home Price Index increased at an annual rate of 9.3 percent in May compared to the 10.8 percent growth reported for April.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.