|Bid||3.7900 x 28000|
|Ask||3.8000 x 29200|
|Day's Range||3.7000 - 3.9600|
|52 Week Range||3.7000 - 7.7000|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||3.66|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
(Bloomberg) -- The time has come for Canadian index investors to say goodbye to Encana Corp., a stalwart of the nation’s energy sector with roots going back to the late 1800s.On Friday, shares of the oil and gas company will be removed from the S&P/TSX Composite and S&P/TSX 60 indexes after it won investor approval to relocate to the U.S. and rebrand under the name Ovintiv. While Encana will leave a hole on the key stock gauge, Brookfield Property Partners LP will replace it on the large-cap index, according to a statement from S&P Dow Jones Indices.“This could possibly be the largest index event for the Canadian market,” Bryan Chuah, an analyst at Canadian Imperial Bank of Commerce, said in a report. About 195 million Encana shares will need to be sold by Canadian indexers -- valued at about C$1.1. billion ($840 billion), he said, as its new U.S. domicile makes it ineligible for inclusion up north. Encana has about 1.3 billion shares outstanding, according to data compiled by Bloomberg.Encana shares have been in a downward spiral for more than a decade. In 2009, the company spun out its oil-sands assets into Cenovus Energy Inc. in a bid to unlock shareholder value and focus on natural gas. That didn’t work so well, as a glut of North American gas production has weighed on prices ever since.Chief Executive Officer Doug Suttles, who took the reins in 2013, shifted the company away from gas production and into shale oil, especially in Texas’s Permian Basin. Its market value has tumbled about C$63 billion to C$6.7 billion since its 2008 peak.In comes the real estate arm of Brookfield Asset Management Inc.Units of Brookfield Property, a global real estate company, have rallied almost 10% this year to market value of C$25.8 billion. Prior to this addition, the S&P/TSX 60 had zero representation in the real estate sector.Encana announced last year that it will move its head office from Calgary to Denver to allow access to larger pools of investment capital, including U.S. index funds and passively managed accounts.Oil-Sands GloomThe company may be added to the S&P MidCap 400 Index in the U.S., generating demand for 90 million or more of the company’s shares, Randy Ollenberger, an analyst at Bank of Montreal, said in a note last week.Encana’s move south only intensified the gloom enveloping the Canadian energy industry after foreign companies sold more than $30 billion of assets in the past three years amid a lack of pipeline space that has choked off prospects for growth.Encana joins pipeline owner TransCanada Corp., which changed its name to TC Energy Corp. earlier this year, in dropping the link to Canada from its name.Encana traces its history to the 1880s, when the Canadian Pacific Railway Ltd. accidentally discovered natural gas while drilling a water well for workers. The company was eventually spun out from Canadian Pacific and took the name EnCana in 2002.\--With assistance from Aoyon Ashraf.To contact the reporters on this story: Divya Balji in Toronto at email@example.com;Kevin Orland in Calgary at firstname.lastname@example.orgTo contact the editors responsible for this story: Kyung Bok Cho at email@example.com, Jacqueline Thorpe, David ScanlanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Through this restructuring, Encana (ECA) will effectively exchange Ovintiv's one share of common stock for every five common shares of Encana.
(Bloomberg) -- Encana Corp. won investors’ approval to relocate to the U.S. and change its name to Ovintiv, a plan that has dented morale in Canada’s beleaguered energy industry.About 90% of the shares were voted by holders in favor of the plan, Encana said in a statement Tuesday after a special meeting in Calgary. The company produces oil and natural gas in both Canada and the U.S.Encana can now push ahead with a plan that has added to the gloom surrounding Canada’s oil industry, which is suffering from a lack of pipeline space that has weighed on prices and prevented producers from increasing output. The dismal environment has prompted foreign companies to sell more than $30 billion of Canadian energy assets in the past three years.Losing Encana carries an even sharper sting because it was one of Canada’s marquee companies, born out of the nation’s 19th-century railway boom, and the “can” in its name was a nod toward its country of origin. The company, which is moving its head office from Calgary to Denver, said relocating to the U.S. will allow it to access larger pools of investment capital, including U.S. index funds and passively managed accounts.Montreal-based Letko, Brosseau & Associates Inc., Encana’s fourth-largest shareholder, blasted the plan in November, saying the move was “highly discriminatory” because it forces investors holding the shares in Canadian-focused funds to sell the stock at a time when the price is particularly weak. The company holds about 4% of Encana’s shares. Roughly 71% of Encana’s shareholders are in the U.S., and 20% are in Canada, according to data compiled by Bloomberg.About 90 million Encana shares in the S&P/TSX index and 30 million in the MSCI Canada may be put up for sale as a result of the move to the U.S., according to Randy Ollenberger, an analyst at Bank of Montreal. The company may be added to the S&P MidCap 400 Index, generating demand for 90 million or more of the company’s shares, he said. Encana has about 1.3 billion shares outstanding, according to data compiled by Bloomberg.Encana shares fell 2.5% to C$5.54 in Toronto trading. The stock has slid 39% in the past 12 months.(Updates with analyst’s projections in sixth paragraph)\--With assistance from Michael Bellusci.To contact the reporter on this story: Kevin Orland in Calgary at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Christine BuurmaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The company said 90% of the shareholders voted in favor of the company moving its domicile to the United States and rebranding to Ovintiv Inc. Investor Letko, Brosseau & Associates Inc, which owns about 4% stake in Encana, had said in November it will vote against the company's proposed exit from Canada, saying the move would cause significant losses for Canadian shareholders.
Encana Corp. won investors approval to relocate to the U.S. and change its name to Ovintiv, a plan that has dented morale in Canada's beleaguered energy industry.
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Canadian oil and gas company Encana Corp on Wednesday filed paperwork with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities as part of a plan to shift its base to the United States. The Calgary-based company in October became the latest to decide to move away from Canada as the nation battles with pipeline capacity shortages. Encana, once among Canada's largest oil companies, has been shifting its focus to the United States and earlier this year bought Texas-based Newfield Exploration Co for $5.5 billion.
The Calgary-based company in October became the latest to decide to move away from Canada as the nation battles with pipeline capacity shortages. Encana, once among Canada's largest oil companies, has been shifting its focus to the United States and earlier this year bought Texas-based Newfield Exploration Co for $5.5 billion. Encana will change its name to Ovintiv Inc and continue to be traded both on the Toronto and New York stock exchanges under the ticker symbol 'OVV'.
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The South Texas Drilling Permit Roundup is a weekly review of new drilling permit applications filed with the Railroad Commission of Texas for a 67-county area of South Texas.
Encana Corp shareholder Letko, Brosseau & Associates Inc said on Tuesday it will vote against the oil and gas company's proposed exit from Canada to the United States. The investment firm, which owns a nearly 4% stake in Encana, said the move will cause significant losses for Canadian investors. Last month, the company said it would shift base from Calgary to the United States and become Ovintiv Inc next year, the latest company to move away from Canada that is battling with pipeline capacity shortages.
The investment firm, which owns a nearly 4% stake in Encana, said the move will cause significant losses for Canadian investors. Last month, the company said it would shift base from Calgary to the United States and become Ovintiv Inc next year, the latest company to move away from Canada that is battling with pipeline capacity shortages.
One of the largest investors in Encana Corp. said it will vote against the Canadian oil producer's plan to move its headquarters to the U.S.