On Thursday, Shares of Encana Corporation (USA) (NYSE:ECA), gained 6.62% to $9.02. 22.41 million shares of the company were exchanged.
Encana Corporation (ECA) declared that its wholly-owned partner, Encana Oil & Gas (USA) Inc., has reached a contract to sell its Denver Julesburg (DJ) Basin assets in Colorado to a new entity 95 percent owned by Canada Pension Plan Investment Board and 5 percent by The Broe Group. Total consideration to Encana under the transaction is about $900 million.
Encana will use the cash proceeds to further strengthen its balance sheet and create greater flexibility in this market environment. When combined with net proceeds from formerly declared asset sales, cash proceeds from divestitures in 2015 will total about $2.7 billion. The company anticipates to have reduced its net debt in 2015 by about $3 billion by year-end.
The transaction comprises all of Encana’s DJ Basin acreage comprising 51,000 net acres. During the first half of 2015, Encana’s DJ Basin assets produced an average of 52 million cubic feet per day (MMcf/d) of natural gas and 14,800 barrels per day of crude oil and natural gas liquids. Based on Encana’s development plan at year-end 2014, estimated proved reserves were 96.8 million barrels of oil equivalent (over 40 percent natural gas).
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 Kinder Morgan Inc (NYSE:KMI), inclined 1.65% to $32.67, during its last trading session.
In the last trading session, the stock moved on low volume, trading at a volume of 13.56 M as compared to its average daily volume of 16.88 million shares.
The stock, as of recent close, has shown weekly upbeat performance of 16.17% which was maintained at 6.66% in 1-month period.
Kinder Morgan, Inc. operates as an energy infrastructure and energy company in North America. The company operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada, and Other segments.
At the end of Thursday’s trade, Shares of Penn West Petroleum Ltd (USA) (NYSE:PWE), inclined 23.04% to $1.25.
It traded in a range of $1.02 and $1.30, exchanging hands with 10.43 million shares.
The stock is down -75.83% in this year through last close. In the trailing twelve months, net operating margin of the company was -41.80% while gross profit margin was 56.50%.
Penn West Petroleum’s stock inclined as crude prices rise recently.
The improvement in prices is partially a result of the ongoing military conflict in Syria as the Russian military continues its bombing campaign in the country.
Russia’s navy started bombing Syria for the first time on Wednesday, a week after it began military operations in the oil producing country.
The expanded military campaign could negatively affect the supply of oil coming from Syria which is assisting drive prices up.
Penn West Petroleum Ltd. explores for, develops, and produces oil and natural gas properties in western Canada. The company’s properties are located in Alberta, British Columbia, Saskatchewan, Manitoba, and the Northwest Territories, Canada; and Wyoming, the United States.
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