On March 6, 2006, EnCana announced that it agreed to sell substantially all of its natural gas storage business for approximately US$1.5 billion, subject to post-closing adjustments. An after-tax earnings gain of approximately US$835 million is expected on the total sale.
Gas storage interests being divested:
2006 divestitures generate US$3.3 billion
In 2006, EnCana expects to realize net proceeds, after cash taxes, of approximately $3.3 billion from four asset sales: gas storage business for about $1.5 billion (first phase closed), Ecuador assets for $1.42 billion (closed), the Chinook oil discovery offshore Brazil for about $350 million (closure expected mid year) and the Entrega Pipeline for $244 million (closed). The company plans to use those sales proceeds to purchase shares under its Normal Course Issuer Bid and pay down debt.
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