|Traded as||NYSE: OVV |
PanCanadian Energy Corporation
Alberta Energy Company
|Founded||April 4, 2002|
|Doug Suttles, President and CEO|
Clayton H. Woitas, Chairman
Sherri A. Brillon, CFO
Natural gas liquids
|361.2 thousand barrels of oil equivalent (2,210,000 GJ) per day (2018)|
|Revenue||$5.939 billion (2018)|
|$1.069 billion (2018)|
|Total assets||$15.344 billion (2018)|
|Total equity||$7.447 billion (2018)|
Number of employees
|Subsidiaries||Encana Oil and Gas USA|
|Footnotes / references|
Ovintiv Inc., doing business as Ovintiv and formerly known as Encana Corporation, is an oil company headquartered in Denver, Colorado, United States, effective January 24, 2020, and its previous headquarters in Calgary, Alberta. The company is ranked 1134th on the Forbes Global 2000 and has been included on the Dow Jones Sustainability Index.
Before asset sales in 2013, Encana was the largest natural gas producer in Canada. In 2019, it announced that it would change its name to Ovintiv and relocate its corporate headquarters to the United States, specifically to Denver, Colorado.
- 1 History
- 2 Operations
- 3 Lawsuits
- 4 Criticism
- 5 Sustainability reporting
- 6 References
- 7 External links
When the Canadian Pacific Railway was formed, the government of Sir John A. Macdonald compensated it for assuming the risk of developing the railroad with the subsurface rights for a checkerboard pattern of most of Alberta and part of Saskatchewan. These rights were later spun off to Encana's predecessors.
On July 3, 1958, Canadian Pacific created "Canadian Pacific Oil and Gas" to manage its oil and gas properties and its mineral rights.
In April 2002, PanCanadian Petroleum Ltd was spun out of Canadian Pacific Limited. It subsequently merged with Alberta Energy Corporation to form EnCana. Gwyn Morgan was named President and CEO.
In spring 2008, residents from Pavillion, Wyoming, approached the United States Environmental Protection Agency (EPA) about changes in water quality from their domestic wells. Encana was the primary natural gas producer in the area. In 2009, the EPA announced that it had found hydrocarbon contaminants in residents' drinking water wells.
In February 2012, Mitsubishi paid approximately C$2.9 billion for a 40% interest in the Cutbank Ridge Partnership with Encana, which involves 409,000 net acres of Montney Formation natural gas lands in northeast British Columbia. The company also sold its midstream assets in the Cutbank Ridge to Veresen for C$920 million.
In December 2012, Encana announced a US$2.1 billion joint venture with state-owned, Beijing-based PetroChina through which PetroChina received a 49.9% stake in Encana's Duvernay Formation acreage in Alberta. This was in line with the rules that "favor minority stakes over takeovers" since Prime Minister Stephen Harper's December 7, 2012 prohibition of purchases by state-owned enterprises seeking to invest in Canadian oil https://finance.yahoo.com/news/encana-shift-united-states-rebrand-151103909.htmlsands.
At the end of 2012, Encana's staff had increased to 4,169 employees.
In November 2013, the company announced layoffs of 20% of its employees, closure of its office in Plano, Texas, and plans to sell assets and to found a separate company for its mineral rights and royalty interests across southern Alberta. It planned to invest 75% of its 2014 capital budget into 5 projects: Projects in the Montney Formation and the Duvernay Formation in Alberta, the San Juan Basin in New Mexichttps://finance.yahoo.com/news/encana-shift-united-states-rebrand-151103909.htmlo, Louisiana's Tuscaloosa Marine Shale, and the Denver-Julesburg Basin (DJ Basin) in northeast Colorado, Wyoming, and Nebraska.
In June 2014, the company sold its Bighorn assets in Alberta to Jupiter Resources for US$1.8 billion.
In November 2014, Encana acquired Athlon Energy for $7.1 billion.
In October 2019, the company announced its intentions of moving operations from Canada to the US, and changing its name to Ovintiv. Its new headquarters will be in Denver, Colorado, where its CEO already lives.
On January 14, 2020, the company announced that more than 90% of its stockholders approved the company's previously announced re-domicile from Calgary, Alberta, Canada, to Denver, Colorado, United States and to its name change from Encana Corporation to Ovintiv Inc. Ten days later, on January 24, 2020, the company announced that it had completed the re-domicile and name change, and further that its existing stock ticker symbol ECA would be delisted from both the New York Stock Exchange and the Toronto Stock Exchange on Monday, January 27, 2020, and that it would begin trading under the same as OVV effective that same date.
In 2018, the company's average production was 1.158 billion cubic feet per day of natural gas and 89.9 thousand barrels of oil equivalent (550,000 GJ) per day of petroleum, and 78.2 thousand barrels of oil equivalent (478,000 GJ) per day of natural gas liquids.
Encana has a land position in Canada of 1.764 million net acres, of which about 1.198 million net acres are undeveloped. Encana's assets in Canada are in the Montney Formation, where it has a partnership with Mitsubishi to develop Cutbank Ridge, the Duvernay Formation, Wheatland County, Alberta, the Horn River Formation, and at Deep Panuke offshore Nova Scotia, which ceased production in 2018.
In the United States, Encana holds approximately 197,000 net acres of land in the US, of which 42,000 net acres were undeveloped. It operates in the Eagle Ford Group, Permian Basin, Anadarko Basin, Arkoma Basin, Uinta Basin, and Williston Basin.
Alleged collusion and bid rigging with Chesapeake Energy
From 2008 through 2010, Encana accumulated 250,000 net acres in the Collingwood-Utica Shale gas play in the Middle Ordovician Collingwood formation of the Michigan Basin at an average cost of $150/acre. In May 2012, Encana had paid about $185 an acre for oil and gas rights on 2,156 acres (873 hectares) at an auction by the Michigan Department of Natural Resources, which was "88 percent less than the average paid two years ago in the area".
In July 2012, Reuters reported about e-mails between Encana and Chesapeake Energy, the second-largest natural gas producer in the U.S., to divide up Michigan counties state land leases to suppress land prices in an October 2010 auction. In 2013, a private landowner filed suit against Encana and Chesapeake for bid rigging. Justice Department and Michigan authorities were investigating whether state or federal laws were violated; the Internal Revenue Service and U.S. Securities and Exchange Commission also investigated.
Failed lawsuit by adjacent property owners to prevent drilling
In 2013, two property owners adjacent to a drilling unit filed suit against the Michigan Department of Environmental Quality (DEQ) and Encana for potential harm due to proximity. In October 2013, the Judge of the Circuit Court of Ingham County issued an injunction against Encana starting to drill until an administrative hearing before DEQ's supervisor of wells had been completed, re part 12 of DEQ's rules for oil and gas operations. In May 2014, the supervisor of wells found with Encana, that the petitioners did "not have standing", because they did not own land within the drilling unit and dismissed the case.
Alleged excessive water use for hydraulic fracturing
In November 2013, Ecojustice, the Sierra Club and the Wilderness Committee filed a lawsuit against Encana Corporation and the British Columbia's Oil and Gas Commission for excessive water use from lakes and rivers for its hydraulic fracturing for shale gas, "granted by repeated short-term water permits, a violation of the provincial water act".
In Pouce Coupe British Columbia five explosions targeted Encana pipelines between October 2008 and January 2009; media reports indicate the pipeline may have been bombed by a disgruntled community member fearing the sour gas (containing hydrogen sulfide, which can be fatal if too much of it is inhaled) poses a danger to the community.
Encana's hydraulic fracturing operations in the United States are portrayed in the 2010 documentary, Gasland, which alleges that hydraulic fracturing causes pollution of ground and surface water, air, and soil.
Deep Panuke project
Issues were raised for the Deep Panuke project offshore of Nova Scotia, when it was proposed in 2006 as a smaller version with increased ocean discharges and when Encana asked for a "streamlined regulatory process" without public hearings.
Annually, Encana engages in Sustainability reporting in which the company voluntarily discloses a wide variety of operational statistics including energy usage, emissions intensity, GHG emissions, water usage, flared and vented volumes, reportable spills, reclaimed land, community investment, aboriginal engagement, employee education, ethical controls, governance practices, corruption prevention activities, total staff, attrition, gender ratio's, safety and recordable injuries, and an independent assurance of all statistics. All data is shown annually, benchmarked against prior years. If the metric is trending unfavorably, Encana details how it is addressing the issue.
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- "Pavillion, Wyoming Groundwater Investigation: January 2010 Sampling Results and Site Update" (PDF). United States Environmental Protection Agency. August 2010.
- "EnCana Completes Spinoff into Focused Energy Cos". RigZone. November 30, 2009.
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- Lustgarten, Abrahm (November 29, 2011). "Company Backs out of $45 Million Deal to Buy Troubled Wyoming Gas Field". ProPublica.
- Joyce, Matt (December 22, 2011). "Encana closes sale on most Barnett assets". American City Business Journals.
- "Encana Completes Cutbank Ridge Deal with Mitsubishi". LNG World News. 27 February 2012.
- DE LA MERCED, MICHAEL J. (February 17, 2012). "Mitsubishi Buys 40% Stake In Encana Shale Gas Assets". The New York Times.
- "Encana closes C$920 million sale of Cutbank Ridge midstream assets" (Press release). Business Wire. February 9, 2012.
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- "Encana, PetroChina form joint venture to develop natural gas in Alberta". Financial Post. December 13, 2012.
- "Encana laying off 20% of workers". CBC News. 5 November 2013.
- "Encana Reaches Agreement to Sell Bighorn Assets to Jupiter Resources for Approximately US$1.8 Billion" (Press release). Marketwired. June 27, 2014.
- "Encana completes acquisition of Athlon Energy". Oil & Gas Journal. November 13, 2014.
- "Jonah Energy Completes Acquisition of the Jonah Field Operations in Wyoming from Encana" (Press release). Business Wire. May 12, 2014.
- "EEncana Completes $3.1 Billion Eagle Ford Acquisition" (Press release). Marketwired. June 20, 2014.
- Graeber, Daniel J. (August 25, 2015). "Encana Corp. leaves Louisiana shale". United Press International.
- Pinto, Anet Josline (December 14, 2015). "Canada's Encana slashes dividend, cuts capex". Reuters.
- SVALDI, ALDO (July 29, 2016). "Encana Corp. completes sale of Denver-Julesburg Basin assets". The Denver Post.
- McKinnon, Judy (October 8, 2015). "Encana to Sell Colorado Oil and Gas Assets for $900 Million". The Wall Street Journal.
- "Encana announces agreement to sell its Piceance natural gas assets" (Press release). Globe Newswire. June 9, 2017.
- "BRIEF-Encana to sell its Piceance natural gas assets for $735 mln". Reuters. June 9, 2017.
- Alberstat, Joann (17 December 2013). "Deep Panuke project reaches full gas production". The Chronicle Herald.
- "Encana Corporation – Abandonment of Deep Panuke Offshore Gas Development". National Energy Board.
- "DJR Energy Closes Acquisition of Encana's San Juan Basin Assets" (Press release). Business Wire. December 27, 2018.
- KOHLER, JUDITH (December 28, 2018). "Denver-based DJR Energy closes $480M purchase of assets in San Juan Basin". The Denver Post.
- "Encana completes acquisition of Newfield Exploration to create North America's premier resource company" (Press release). Globe Newswire. February 13, 2019.
- Pulsinelli, Olivia (February 14, 2019). "Encana closes multibillion-dollar acquisition of Woodlands co". American City Business Journals.
- "Encana to Establish Corporate Domicile in the U.S. - Oct 31, 2019". Encana Investor Relations. Retrieved 2019-10-31.
- "Encana receives securityholder approval for reorganization". Encana Corporation. 14 January 2020. Retrieved 25 January 2020.
- "Encana Corporation (ECA.TO)". Reuters.
- Petzet, Alan (May 7, 2010). "Explorations: Michigan Collingwood-Utica gas play emerging". Oil & Gas Journal.
- Carroll, Joe (27 June 2012). "Encana Expands in Michigan Shale Chesapeake Is Abandoning". Financial Post. Bloomberg News.
- Grow, Brian; Schneyer, Joshua; Roberts, Janet (June 25, 2012). "Special Report: Chesapeake and rival plotted to suppress land prices". Reuters.
- Grow, Brian; Schneyer, Joshua (25 February 2013). "Chesapeake, Encana sued in civil antitrust action". Reuters.
- Smith, Lee (February 8, 2014). "Michigan's fracking: Actors and issues". Midland Daily News.
- "Supervisor of Wells Orders". Department of Environmental Quality. State of Michigan.
- Moore, Dene (13 November 2013). "Fracking Lawsuit Targets EnCana, B.C. Oil And Gas Commission". The Huffington Post. The Canadian Press.
- "Latest EnCana pipeline explosion was deliberate: RCMP". CBC News. 2 July 2009.
- Mosier, Jeff (February 3, 2017). "Wise County couple that sued Plano gas company may lose their $2.9M judgment". The Dallas Morning News.
- "EnCana unveils smaller Deep Panuke project". CBC News. 29 August 2006.
- "Encana: Sustainability Reporting". Encana.
- Official website
- Business data for Ovintiv:
- "Canada Oil and Gas Drilling and Production Regulations". Justice Laws Website. Government of Canada. 31 December 2009.