Encana to Sell Alberta Gas Assets for $1.8 Billion

The Globe and Mail reported today that Encana Corp. (TSX:ECA) will sell its Bighorn natural gas properties, based in Alberta, to Jupiter Resources for a price of $1.8 billion. Since last fall, Encana has pursued a new strategy, and has sold various assets and cut 20 percent of its staff, according to the Globe.

As quoted in the publication:

In May, Encana spent US$3.1-billion to enter the oil-rich Eagle Ford shale district in Texas, tilting the company more towards oil. Encana has honed in on core areas: the Montney and Duvernay in Western Canada; the DJ Basin in Colorado; the San Juan Basin in New Mexico and the Tuscaloosa Marine Shale in the southeastern United States. The Eagle Ford becomes a sixth.

Encana CEO, Doug Suttles, said:

This transaction advances our strategy by unlocking value from our portfolio as we focus on developing our core growth plays and extracting additional value from our base assets … Bighorn is a high quality asset that has not been receiving significant investment in 2014. Going forward, it should serve as an excellent foundational asset for Jupiter Resources.

Click here to read the full Globe and Mail article.