We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Encana Prices Shares Worth US$1 Billion in Public Offering
Read MoreHide Full Article
Canadian energy explorer, Encana Corporation recently announced the pricing of its previously declared public share offering. The company has offered 107 million of its common shares at US$9.35 per share. Encana expects to generate gross proceeds of more than US$1 billion from the offering.
Additionally, Encana has extended an over-allotment option to underwriters to buy an extra 16,050,000 company shares. The option will be valid for 30 days post closure of the offering. The option, if fully exercised, will increase the gross proceeds to US$.15 billion.
Encana had signed the deal with a syndicate of underwriters including Credit Suisse and J.P. Morgan. Also, the offering is expected to close by Sep 23, 2016, subject to necessary approvals.
Encana is expected to utilize nearly half of the net proceeds to lower its long-term debt and strengthen its balance sheet. The remainder will be utilized by the company to fund a portion of its 2017 capital budget, which is mainly focused on boosting oil and petroleum liquids production from Encana's Permian Basin by increasing the number of rigs. This, in turn, is expected to double the number of wells on stream in the Permian in 2017 from that in 2016.
Encana is a focused pure-play natural gas exploration and production company. It is the second-largest gas producer in North America, and holds a highly competitive land and resource position in a number of the region's most promising shale and tight gas resource plays.
Hence, the company currently sports a Zacks Rank #1 (Strong Buy), which implies that the stock will outperform the broader U.S. equity market over the next one to three months.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Encana Prices Shares Worth US$1 Billion in Public Offering
Canadian energy explorer, Encana Corporation recently announced the pricing of its previously declared public share offering. The company has offered 107 million of its common shares at US$9.35 per share. Encana expects to generate gross proceeds of more than US$1 billion from the offering.
Additionally, Encana has extended an over-allotment option to underwriters to buy an extra 16,050,000 company shares. The option will be valid for 30 days post closure of the offering. The option, if fully exercised, will increase the gross proceeds to US$.15 billion.
Encana had signed the deal with a syndicate of underwriters including Credit Suisse and J.P. Morgan. Also, the offering is expected to close by Sep 23, 2016, subject to necessary approvals.
ENCANA CORP Price
ENCANA CORP Price | ENCANA CORP Quote
Encana is expected to utilize nearly half of the net proceeds to lower its long-term debt and strengthen its balance sheet. The remainder will be utilized by the company to fund a portion of its 2017 capital budget, which is mainly focused on boosting oil and petroleum liquids production from Encana's Permian Basin by increasing the number of rigs. This, in turn, is expected to double the number of wells on stream in the Permian in 2017 from that in 2016.
Encana is a focused pure-play natural gas exploration and production company. It is the second-largest gas producer in North America, and holds a highly competitive land and resource position in a number of the region's most promising shale and tight gas resource plays.
Hence, the company currently sports a Zacks Rank #1 (Strong Buy), which implies that the stock will outperform the broader U.S. equity market over the next one to three months.
Other well-ranked players in the broader energy sector include Murphy USA Inc. (MUSA - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and Evolution Petroleum Corp. (EPM - Free Report) . All these stocks sport the same Zacks Rank as Encana. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>