EnCana Announces Closing of Heavy Oil Deal, Reorganization
EnCana Corporation and ConocoPhillips have closed their previously announced transaction to create an integrated, North American heavy oil business consisting of quality upstream and downstream assets.
The venture, announced October 5, 2006, is comprised of two 50/50 operating partnerships. The Canadian upstream partnership includes EnCana's Foster Creek and Christina Lake oilsands projects and the U.S. downstream partnership includes ConocoPhillips' Wood River and Borger refineries.
"These partnerships provide greater certainty of execution for our oilsands projects by reducing cost and price risk and increasing confidence in our ability to achieve economic returns. They also give EnCana immediate participation in the North American refining industry," said Randy Eresman, EnCana's President & Chief Executive Officer.
Average daily production from the upstream partnership is expected to grow about 44 percent in 2007 to about 62,000 barrels per day (bbls/d) (about 31,000 bbls/d net to EnCana). The company expects this integrated business will generate pre-tax cash flow in the range of $550 million to $650 million net to EnCana in 2007.
Each partnership has a management committee with each partner holding equal voting rights. EnCana is represented on the upstream committee by John Brannan, Brian Ferguson and Bill Oliver and on the downstream committee by John Brannan, Brian Ferguson and Jeff Wojahn.
EnCana announces corporate reorganization
Effective January 1, 2007, EnCana adopted a new organizational structure with six operating divisions and six corporate groups - a structure that the company believes better fits its assets. EnCana has established a new Integrated Oilsands Division to reflect the growing importance of the company's in situ oilsands and refining assets, and it re-establishes two divisions in Canada - Plains and Foothills. The operating divisions are Canadian Foothills, Canadian Plains, Integrated Oilsands, USA, Midstream & Marketing, and Offshore & International. The corporate groups are Business Development, Corporate Finance, Corporate Communications, Corporate Relations, Corporate Services, and Strategic Planning & Portfolio Management.
EnCana's Executive Team led by Randy Eresman, EnCana's President & Chief Executive Officer:
- Brian Ferguson, Executive Vice-President & Chief Financial Officer
- John Brannan, Executive Vice-President and President, Integrated Oilsands Division
- Sherri Brillon, Executive Vice-President, Strategic Planning & Portfolio Management
- Mike Graham, Executive Vice-President and President, Canadian Foothills Division
- Sheila McIntosh, Executive Vice-President, Corporate Communications
- Bill Oliver, Executive Vice-President, Business Development and President, Midstream & Marketing Division
- Gerry Protti, Executive Vice-President, Corporate Relations and President, Offshore & International Division
- Don Swystun, Executive Vice-President and President, Canadian Plains Division
- Hayward Walls, Executive Vice-President, Corporate Services
- Jeff Wojahn, Executive Vice-President and President, USA Division
With an enterprise value of approximately US$45 billion, EnCana is a leading North American unconventional natural gas and integrated oilsands company.
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