CALGARY — Encana Corp. says it plans to establish a corporate domicile in the United States and change its name to Ovintiv Inc.
The Calgary-based company says a corporate domicile in the United States will expose it to increasingly larger pools of investment in U.S. index funds and passively managed accounts, as well as better align it with its U.S. peers.
The company also plans a share consolidation that will see shareholders receive one share of Ovintiv for every five common shares of Encana.
Encana CEO Doug Suttles says the change in corporate domicile will not change how the company runs its day-to-day activities.
The company says the plan, which requires shareholder, stock exchange and court approval, is expected to occur early next year.
The change came as Encana announced a third-quarter profit of $149 million or 11 cents per share, up from a profit of $39 million or four cents per share a year ago.
This report by The Canadian Press was first published Oct. 31, 2019.
Companies in this story: (TSX:ECA)
The Canadian Press