Encana Completes Corporate Reorganization, Rebrands to Ovintiv
Encana Corp. has completed its previously announced reorganization, that includes a move in corporate domicile from Canada to the U.S., and rebranding under the name “Ovintiv”. As part of the reorganization, the company has also completed a consolidation and share exchange for one share of common stock of Ovintiv for every five common shares of Encana held by its shareholders. Ovintiv, whose operations are focused on the Permian and Anadarko basins in the U.S. and the Montney formation in western Canada, had announced the corporate reorganization in late October 2019. At the time, CEO Doug Suttles had stated that the shift in domicile to the U.S. was partly mean to to expose Encana “to increasingly larger pools of investment in U.S. index funds and passively managed accounts”, and to better position the company to compete with its U.S. peers. On January 17th, the Court of Queen’s Bench of Alberta had granted its final order approving the plan of arrangement which formed the basis for the reorganization. Ovintiv’s shares are expected to being trading on the NYSE and the TSX on January 27th. Citi acted as financial advisor on the reorganization.