$1 Billion Stock Offering announced on Monday

Encana Corporation (ticker: ECA) announced today the pricing of its public offering of 107,000,000 common shares at a public offering price of USD $9.35 per share. The company’s gross proceeds totaled US$1,000,450,000. The offering was underwritten by Credit Suisse Securities (Canada), Inc. and J.P. Morgan. Both institutions have a 30-day over-allotment option to purchase up to 16,050,000 additional shares.

The offering is expected to close on or about September 23, 2016.

Proceeds Used to Build Permian Production, Double Wells on Stream by 2017

The company intends to use approximately half of the net proceeds received from the sale to fund a portion of its 2017 capital program. The remaining proceeds will be used to enhance the company’s balance sheet flexibility by repaying indebtedness under its credit facilities.

The majority of the 2017 capital program is expected to be allocated to growing Permian production by increasing the number of rigs in the play, which is expected to result in approximately two times as many Permian wells on stream in 2017 as compared to 2016. Allocation of proceeds may vary depending upon numerous factors, including changes in commodity prices and increased capital efficiency.

Encana is a leading North American energy company with a portfolio of resource plays, held directly and indirectly through its subsidiaries that produce natural gas, oil and natural gas liquids. The company has increasingly focused its attention on boosting oil and petroleum liquids production from shales including the Permian, where it established a position with the 2014 purchase of Athlon Energy for $7.1 billion.


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