Saturday, November 22nd5.8°C
24157

Encana selling Alberta power assets as it continues to focus portfolio

CALGARY - Encana Corp. CEO Doug Suttles says the company has agreed to sell one gas-fired power plant it owns and operates in Alberta and the 50 per cent stake it holds in another.

The value of the deal and the buyer are not being disclosed.

"It's not that these weren't good businesses," Suttles told reporters on the sidelines of a TD energy conference in Calgary.

"We're not a power company. We're an oil and gas company and this is about focus and consistent strategy. So it just made sense to do this and it was purchased by a power company, which makes complete sense."

Suttles, a third-generation Texas oilman and former BP executive, has been at the helm at Encana for just over a year. Last fall, the energy company unveiled a new strategy that would see it focus on just a handful of regions, rather than dozens.

Earlier this year, Encana (TSX:ECA) made an entry into the oil-rich Eagle Ford shale in Texas through a US$3.1-billion deal with Freeport-McMoRan.

Suttles told the conference that Encana strives to be a top North American oil and gas producer. So far, that's included operations in Canada and the United States, but not Mexico.

Suttles said the company is watching Mexico closely, as the country looks to open up to foreign investment after 75 years of government control. Recently, a delegation of Mexican government officials came to Calgary in a bid to attract Canadian investment.

"I think it's interesting to see what's happening there. I would say from what I hear and what I'm being told, a lot of people are believing that these reforms are going to happen and that new opportunities will emerge and that risk capital will move to Mexico and probably generate some good value," Suttles said.

"There are some unique issues in Mexico beyond the political reforms, because in many areas onshore where oil and gas potential exists, there are significant security concerns still today and the ability to operate and execute will be a challenge there. But it's something we monitor."

Follow @LaurenKrugel on Twitter

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15111.13+35.95
S&P CDNX789.135.56
DJIA17810.0691.06
Nasdaq4712.97+11.102
S&P 5002063.50+10.75
CDN Dollar0.8901-0.0002
Gold1201.50+10.60
Oil76.72+0.87
Lumber331.50+4.50
Natural Gas4.236-0.253

 
Okanagan Companies
Pacific Safety0.155-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.03
Cantex0.04+0.005
Anavex Life Sciences0.178+0.008
Metalex Ventures0.03+0.005
Russel Metals31.62+0.82
Copper Mountain Mining2.24+0.06
Colorado Resources0.125-0.015
ReliaBrand Inc0.013-0.002
Sunrise Resources Ltd0.050.00
Mission Ready Services0.35+0.015

 
24130


23630

FEATURED Property
2127913#138--5300 HUSTON RD
4 bedrooms 3 baths
$469,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...


Be quiet already!

No, you’re not crazy. There really are voices in your head. Voices that keep you from doing what you need to do during your customer care calls. It can be the voice of your teachers, your parent...

_



24207

24158


Member of BC Press Council


24018