EnCana Renews Normal Course Issuer Bid, Declares Dividend
EnCana has received approval for renewal of the company's Normal Course Issuer Bid (NCIB) from the Toronto Stock Exchange (TSX). Under the renewed bid, EnCana may purchase for cancellation up to 37,500,000 of its common shares, representing about five percent of the approximately 751,276,027 common shares issued and outstanding as at November 30, 2009.
EnCana plans to fund its share purchases under the renewed bid from cash, cash flow and the proceeds from potential dispositions. EnCana believes that, depending on the trading price of its shares and other factors, the purchase and cancellation of some of the company’s common shares is a worthwhile investment and in the best interests of EnCana and its shareholders.
Quarterly dividend of 20 cents per share declared
EnCana's Board of Directors has declared a quarterly dividend of US$0.20 cents per share payable on December 31, 2009 to common shareholders of record as of December 21, 2009.
On May 11, 2008, EnCana announced its intention to split into two independent energy companies, at which time it suspended the purchase of common shares for cancellation, pending completion of the transaction. EnCana did not purchase any common shares under its previous NCIB, which expired November 12, 2009. On November 30, 2009, EnCana announced the completion of the split transaction.
Purchases under the renewed NCIB may commence on December 14, 2009 and purchases of common shares may be made until December 13, 2010. Daily purchases will not exceed 25 percent (being 482,516 common shares) 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 on the TSX during the last six calendar months was 1,930,067 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.
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