Encana Sells N. Texas Assets for $975MM
Encana's U.S. unit said it has reached an agreement Thursday to sell its N. Texas natural gas producing properties to partnerships managed by EnerVest Ltd. The deal will be worth approximately $975 million.
"The sale of this North Texas asset in the Barnett Shale is part of Encana's ongoing portfolio optimization aimed at enhancing the long-term value of the company's vast resource potential," said Encana's President and CEO Randy Eresman in a press release.
Encana's latest deal, along with earlier asset sales, puts the company at its 2011 goal of divesting approx. $1 to $2 billion-worth of non-core assets by year-end. After the completion of the deal, Encana will have divested about $1.7 billion worth of assets for 2011.
The N. Texas assets include wells and gathering pipelines on about 50,000 net acres in the Fort Worth Basin, and currently produce approx. 125 MMcfe/d.
Proceeds from the sale are expected to supplement cash flow generation, strengthen the company's balance sheet and provide financial flexibility going into 2012, Encana said.
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