Energy Giant EnCana is splitting into two companies.
Online newspaper Earth Times reports the board of directors for the EnCana Corporation has unanimously approved plans to disect the company into two independent and distinct companies. One of them will be a natural gas business, known as the EnCana (GasCo). The other will be an integrated oil company, known as Cenovus Energy Inc. Both will be based in Calgary, Alberta.
The idea of a schism was first proposed in May of 2008, and will reportedly enhance long-term profits for shareholders, by creating two distinct companies, each more well-suited to its individual role.
The deal is expected to be finalized by the end of November, and existing shareholders will retain their EnCana shares, and also receive one Cenovus Energy share for every common share they hold.
A news conference is scheduled for 11 a.m. (MST) Friday in Calgary to further discuss the announcement.
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