Encana to sell 107 million shares to fund drilling, repay debt

Date:2016-09-20 11:24:18

CALGARY (Bloomberg) -- Encana Corp., the Canadian oil and natural gas producer, plans to sell 107 million shares to fund part of its 2017 budget and repay debt.


The price of the offering is expected to be established later on Monday after marketing by underwriters led by units of Credit Suisse Group AG and JPMorgan Chase & Co., Calgary-based Encana said in a statement after the close of regular trading on North American markets. The company plans to allow underwriters the option to purchase an additional 16.05 million shares.


“The majority of the 2017 capital program is expected to be allocated to growing Encana’s Permian production through 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,” the company said in the statement.


Encana joins other producers including Crescent Point Energy Corp. in selling shares in recent weeks to fund drilling, with the price of U.S. crude having rebounded 65% from its February low. Encana shares, which closed at C$13.03 in Toronto on Monday and were halted after the announcement, are up 85% this year.

TypeInfo: Industry News

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