Quick Facts
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Encana, Mitsubishi Partner To Develop Cutbank Ridge Undeveloped Lands

2/17/2012 5:38 AM ET

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

Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
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.