Monday, May 12, 2008

EnCana to Split in Two (ECA)

From DealBook:

EnCana, Canada’s biggest energy company, said on Sunday it plans to split into two separate oil and natural gas firms in an effort to wring out more value with crude prices at record highs.

EnCana, a $65 billion gas and oil sands producer formed in a merger six years ago, said the move should help investors better gauge the parts of its business and remove a discount it says it suffers in the stock market.

The new producers will be evaluated against “pure play” companies that are rewarded with higher stock market values, Chief Executive Randy Eresman told reporters....MORE