e6vk
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
|
|
|
|
|
|
For March 6, 2006
|
|
Commission File Number: 1-15226 |
ENCANA CORPORATION
(Translation of registrants name into English)
1800,
855 2nd Street SW
Calgary, Alberta, Canada T2P 2S5
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or Form 40-F:
Form 20-F o Form 40-F þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): o
Indicate by check mark whether by furnishing the information contained in this Form, the registrant
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934:
Yes o No þ
If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82-_________
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
ENCANA CORPORATION
(Registrant)
|
|
Date: March 6, 2006 |
|
|
|
|
By: |
/s/ Linda H. Mackid
|
|
|
|
Name: |
Linda H. Mackid |
|
|
|
Title: |
Assistant Corporate Secretary |
|
|
Form 6-K Exhibit Index
|
|
|
|
|
Exhibit No. |
|
|
|
|
|
|
99.1 |
|
|
News
release dated March 6, 2006 referenced as: |
|
|
|
|
|
|
|
|
|
EnCana
agrees to sell gas storage business for approximately
US$1.5 billion |
EnCana agrees to sell gas storage business for approximately US$1.5 billion
CALGARY, Alberta (March 6, 2006) EnCana Corporation (TSX, NYSE: ECA) and certain affiliates
have reached an agreement to sell substantially all of their gas storage business interests to the
Carlyle/Riverstone Global Energy and Power Fund, an energy private equity fund managed by
Riverstone Holdings LLC and The Carlyle Group, for approximately US$1.5 billion after adjustments.
An after-tax earnings gain of approximately US$850 million is expected. The sale, which is subject
to closing conditions and applicable regulatory approvals, is expected to close in two
transactions. All components of the sale, with the exception of the Wild Goose facility, are
expected to close in mid April. The sale of Wild Goose requires the review and approval of the
California Public Utilities Commission and such review may take several months to complete.
The sale of this non-core asset is part of EnCanas previously announced divestiture program. The
company continues to focus on its industry-leading position in the capture and development of
long-life North American natural gas and in-situ oilsands resource plays.
EnCanas natural gas storage business is located in key gas producing and consuming regions and is
linked to major North American gas transmission pipelines. EnCana Gas Storage has approximately 174
billion cubic feet (Bcf) of working gas capacity at five facilities in Alberta, California and
Oklahoma. EnCana will retain the Hythe (10 Bcf) gas storage facility in northwest Alberta for its
own use as this facility is integrated with EnCanas upstream operations.
Gas storage interests being divested:
|
|
|
Suffield facility (85 Bcf), Alberta |
|
|
|
Countess facility (40 Bcf), Alberta |
|
|
|
Wild Goose facility (24 Bcf), California |
|
|
|
Salt Plains facility (15 Bcf), Oklahoma |
|
|
|
Starks facility (27 Bcf in development), Louisiana |
RBC Capital Markets and UBS served as advisors to EnCana on this transaction.
Divestiture update
In addition to the gas storage divestiture, EnCana is in the process of concluding the $350 million
sale of the Chinook oil discovery offshore Brazil to Hydro. It has also sold its Entrega Pipeline
in Colorado to Kinder Morgan Energy Partners L.P. and Sempra Pipelines & Storage for approximately
$240 million. Including EnCanas recent $1.42 billion sale of its Ecuador interests, EnCana expects
to realize net proceeds, after cash taxes, of approximately $3.3 billion from these four asset
sales. The company plans to use these proceeds to purchase shares under its Normal Course Issuer
Bid and pay down debt.
EnCana Corporation
With an enterprise value of approximately US$45 billion, EnCana is one of North Americas leading
natural gas producers, is among the largest holders of gas and oil resource lands onshore North
America and is a technical and cost leader in the in-situ recovery of oilsands bitumen. EnCana
delivers predictable, reliable, profitable growth from
its portfolio of long-life resource plays situated in Canada and the United States. Contained in
unconventional reservoirs, resource plays are large contiguous accumulations of hydrocarbons,
located in thick or areally extensive deposits, that typically have lower geological and commercial
development risk, lower average decline rates and very long producing lives compared to
conventional plays. The application of technology to unlock the huge resource potential of these
plays typically results in continuous increases in production and reserves and decreases in costs
over multiple decades of resource play life. EnCana common shares trade on the Toronto and New York
stock exchanges under the symbol ECA.
ADVISORY REGARDING FORWARD-LOOKING STATEMENTS In the interests of providing EnCana shareholders
and potential investors with information regarding EnCana, including managements assessment of
EnCanas and its subsidiaries future plans and operations, certain statements contained in this
news release are forward-looking statements or information within the meaning of applicable
securities legislation, collectively referred to herein as forward-looking statements.
Forward-looking statements in this news release include, but are not limited to: the anticipated
closing of the gas storage sale transaction and the proceeds therefrom; the expected after-tax
earnings gain on the sale; the anticipated timing of regulatory review for Wild Goose; the
anticipated closing of the Chinook disposition and the proceeds therefrom; the anticipated use of
proceeds from the disposition transactions for debt reduction and share purchases under the
companys Normal Course Issuer Bid program; anticipated development of natural gas and in-situ
oilsands resource plays; anticipated growth potential of the companys resource play portfolio; and
anticipated resource play life. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the plans, intentions or expectations
upon which they are based will occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both general and specific, that contribute
to the possibility that the predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause the companys actual performance and financial results
in future periods to differ materially from any estimates or projections of future performance or
results expressed or implied by such forward-looking statements. These risks and uncertainties
include, among other things: volatility of and assumptions regarding oil and gas prices; risks
associated with technology; fluctuations in currency and interest rates; product supply and demand;
market competition; risks inherent in the companys marketing operations, including credit risks;
imprecision of reserves estimates and estimates of recoverable quantities of oil, natural gas and
liquids from resource plays and other sources not currently classified as proved reserves;
assumptions based upon the companys guidance; the companys ability to replace and expand oil and
gas reserves; its ability to generate sufficient cash flow from operations to meet its current and
future obligations; its ability to access external sources of debt and equity capital; the timing
and the costs of well and pipeline construction; the companys ability to secure adequate product
transportation; changes in environmental and other regulations or the interpretations of such
regulations; political and economic conditions in the countries in which the company operates; the
risk of war, hostilities, civil insurrection and instability affecting countries in which the
company operates and terrorist threats; risks associated with existing and potential future
lawsuits and regulatory actions made against the company; and other risks and uncertainties
described from time to time in the reports and filings made with securities regulatory authorities
by EnCana. Although EnCana believes that the expectations represented by such forward-looking
statements are reasonable, there can be no assurance that such expectations will prove to be
correct. Readers are cautioned that the foregoing list of important factors is not exhaustive.
Furthermore, the forward-looking statements contained in this news release are made as of the date
of this news release, and EnCana does not undertake any obligation to update publicly or to revise
any of the included forward-looking statements, whether as a result of new information, future
events or otherwise. The forward-looking statements contained in this news release are expressly
qualified by this cautionary statement.
Further information on EnCana Corporation is available on the companys website, www.encana.com, or
by contacting:
|
|
|
FOR FURTHER INFORMATION: |
|
|
Investor contact:
|
|
Media contact: |
EnCana Corporate Development |
|
|
Sheila McIntosh
|
|
Alan Boras |
Vice-President, Investor Relations
|
|
Manager, Media Relations |
(403) 645-2194
|
|
(403) 645-4747 |
Paul Gagne |
|
|
Manager, Investor Relations |
|
|
(403) 645-4737 |
|
|
Ryder McRitchie |
|
|
Manager, Investor Relations |
|
|
(403) 645-2007 |
|
|