On Friday, Shares of Encana Corporation (USA) (NYSE:ECA), gain 3.36% to $7.08.
Encana Corporation (Encana) (ECA.TO) (ECA.TO) declared that its wholly-owned partner, Encana Oil & Gas (USA) Inc., has reached a contract to sell its Haynesville natural gas assets, located in northern Louisiana, to GEP Haynesville, LLC (GeoSouthern), a joint venture formed by GeoSouthern Haynesville, LP and funds managed by GSO Capital Partners LP.
Total cash consideration to Encana under the transaction is US$850 million. In addition, through the transfer of current and future obligations, Encana will reduce its gathering and midstream commitments, which will be substantially complete through 2020, by about US$480 million on an undiscounted basis. Further, Encana will transport and market GeoSouthern’s Haynesville production on a fee for service basis for the next five years.
Encana will use the total cash consideration to reduce its net debt, further strengthening its balance sheet.
Comprising with its strategy, Encana remains focused on growing high margin production. Over 80 percent of 2015 capital will be invested in the company’s four most planned assets in the Permian, Eagle Ford, Duvernay and Montney. During the first half of 2015, Encana’s Haynesville assets produced an average 217 mmcf/d, contributed about 9 percent to companywide production and less than 2.5 percent to Encana’s first half operating cash flow, not taking into account hedges.
Encana’s Haynesville natural gas assets comprise about 112,000 net acres of leasehold, plus additional fee mineral lands. Collectively, they represent Encana’s total position in northern Louisiana. Encana operates about 300 wells in the area. Estimated year-end 2014 proved reserves were 720 billion cubic feet equivalent (Bcfe) of natural gas.
The sale of Encana’s Haynesville assets is subject to satisfaction of normal closing conditions, in addition to regulatory approvals and post-closing adjustments, and is predictable to close in the fourth quarter of 2015 with an effective date of January 1, 2015.
Encana Corporation, together with its auxiliaries, engages in the development, exploration, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the United States.
Shares of Altria Group Inc (NYSE:MO), inclined 0.80% to $54.14, during its last trading session.
Altria Group, Inc. (Altria) (MO) will host a webcast of its business presentation at the Barclays Global Consumer Staples Conference in Boston, Massachusetts on Wednesday, September 9, 2015 at about 9:45 a.m. Eastern Time. The webcast will feature a presentation by Billy Gifford, Altria’s Chief Financial Officer.
Altria Group, Inc., through its auxiliaries, manufactures and sells cigarettes, smokeless products, and wine in the United States and internationally. It offers cigarettes primarily under the Marlboro brand; cigars principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, Husky, and Marlboro Snus brand names.
Finally, PepsiCo, Inc (NYSE:PEP), ended its last trade with -0.07% loss, and closed at $93.53.
PepsiCo, Inc, declared that Hugh Johnston, Vice Chairman and Chief Financial Officer, Tom Greco, Chief Executive Officer, Frito-Lay North America, and Ramon Laguarta, Chief Executive Officer, Europe Sub-Saharan Africa, will present at the Barclays Back-to-School Consumer Conference in Boston on Wednesday, September 9, 2015 at about 8:15 a.m. EDT.
PepsiCo, Inc. operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay’s potato chips, Doritos tortilla chips, Cheetos cheese-flavored snacks, Tostitos tortilla chips, branded dips, Ruffles potato chips, Fritos corn chips, and Santitas tortilla chips. The company’s Quaker Foods North America segment provides Qua
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