• 3 minutes Marine based energy generation
  • 5 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Which producers will shut in first?
  • 1 hour A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 3 hours Saudis to cut 4mm bbls. What a joke.
  • 1 hour The GREAT OPEC+ Agreement
  • 3 hours Saudi Arabia Is Buying Up European Oil Majors
  • 10 mins Trump will be holding back funds that were going to W.H.O. Good move
  • 2 hours Chinese Communist Party
  • 14 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 2 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 4 hours Occidental hypocrisy
  • 7 hours Sharp real pure true hard working roughneck needing work..
  • 8 hours Death Match: Climate Change vs. Coronavirus
  • 8 hours Get First Access To The Oilprice App!
OPEC’s Plan To Take Over The Global Oil Industry

OPEC’s Plan To Take Over The Global Oil Industry

Much of the commentary surrounding…

OPEC And Partners Eye A 3-Month Output Cut

OPEC And Partners Eye A 3-Month Output Cut

Countries part of the OPEC+…

Encana Shareholders Approve Move To U.S., Name Change

Encana

As many as 90 percent of Encana shareholders voted in favor of the company’s proposed renaming and move to the United States as the company seeks to improve its access to more investment capital in index funds and passively managed funds, Encana said.

The new name of the oil company will be Ovintiv and its headquarter will be in Denver, Colorado.

"We are extremely pleased with the vote of confidence from our shareholders today. With 90% of our securityholders voting "FOR" the resolution, there is clearly support for our efforts to expose Ovintiv to the deeper pools of capital in the U.S.—capturing the value we know exists within our equity," chief executive Doug Suttles said in the company statement. "We will continue to focus on innovation and efficiencies throughout our operations, delivering the financial and operational performance our shareholders expect."

According to the company, the move will not have any impact on day-to-day operations in Canada, where Encana/Ovintiv has an extensive presence in the Montney shale patch. Most of the company’s assets, however, are in the U.S., spread across the shale patch.

Encana has been expanding this presence, too. In 2018, it struck a $5.5-billion deal to acquire Newfield Exploration, which catapulted it to the ranks of the largest shale operators in the country.

While the shareholder support for the move to the south was understandably welcome by the management, it also speaks volumes about the investment environment in Encana/Ovintiv’s home country. This environment has drawn a lot of criticism from the industry as tight energy sector regulation and bleak growth prospects combine to discourage investors from staying in Canadian oil.

However, the majority of Encana’s shareholders—over two-thirds—are in the United Stats anyway, according to Bloomberg data, so it makes sense for the company to go where its shareholders are, despite criticism that the move won’t solve all of its problems.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage




Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News