EnCana Renews Normal Course Issuer Bid
EnCana Corporation has received approval for renewal of the company's Normal Course Issuer Bid from Toronto Stock Exchange (TSX). Under the renewed bid, EnCana may purchase for cancellation up to 75,118,732 of its common shares, representing 10 percent of the public float of approximately 751,187,320 common shares outstanding as at October 31, 2007. EnCana plans to fund its share purchases under the renewed bid with cash flow and the proceeds from potential dispositions. EnCana expects to generate substantial free cash flow in 2008 that could be used for share purchases, debt reduction or increased dividends over the coming year.
Since November 6, 2006 under its previous Normal Course Issuer Bid, EnCana purchased 63,447,700 common shares, representing approximately 7.9 percent of the company's outstanding shares on November 1, 2006, at an average price of approximately US$51.54 per common share. Purchases under the renewed bid may commence on November 13, 2007 and may be made until November 12, 2008. Daily purchases will not exceed 25 percent of the average daily trading volume for the six calendar months prior to the date of approval of the bid by the TSX, subject to EnCana's ability to make block purchases through the facilities of the TSX in accordance with the TSX rules. EnCana's average daily trading volume during the last six calendar months was 2,362,409 common shares. Purchases will be made on the open market through the facilities of the TSX in accordance with its policies, and may also be made through the facilities of the New York Stock Exchange (NYSE) in accordance with its rules. Approval of the bid is not required from the NYSE. The price to be paid will be the market price at the time of acquisition. EnCana believes that the purchase of its common shares will help create value for the company's shareholders.
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