Boston, MA 04\/04\/2014 (wallstreetpr) –\u00a0Encana Corporation (USA) (NYSE:ECA)<\/b> is engaged in energy production, majorly dealing in oil, natural gas and natural gas liquids. The company can sometimes baffle you. It recently announced a deal to sell one of its lucrative natural gas operations in Jonah field, Wyoming. Companies usually divest underperforming businesses to allow greater focus on performing operations. But Encana can always do it differently.<\/p>\n
The company said that it will fetch about $1.8 billion from the sale of Jonah field to a privately held company called TPG Capital. The field to be divested includes more than 1,500 active wells and over 24,000 of producing acres. The field\u2019s estimated reserve in 2013 was almost 1.5 billion cubic ft of gas. The transaction is expected to close in the second quarter. <\/b><\/p>\n
Reason for divestment<\/b><\/p>\n
According to the management, it is not a bad thing for Encana Corporation (USA) (NYSE:ECA) to sell the lucrative Jonah field. That move is precisely in-line with the company\u2019s strategy to focus on its five core growth areas. The CEO Doug Suttles observed that moving away from Jonah will in fact unlock value for the company.<\/p>\n
Encana is walking away from Jonah field which is predominantly natural gas, so as to focus on natural gas liquids. The reason for this shift is attributed to the volatile price of natural gas compared with better pricing of natural gas liquids.<\/p>\n
Thus, the proceeds gained from the transaction will help in boosting efforts to develop its natural gas liquids properties at the DJ Basin in Colorado, San Juan basin in New Mexico and Mississippi\u2019s Tuscaloosa Marine Shale among other properties.<\/p>\n
A difficult move<\/b><\/p>\n
That is why even as Encana Corporation (USA) (NYSE:ECA) described the move to sell Jonah a difficult one, there are no regrets because it is going to allow for modeling of a more solid future.<\/p>\n
Pricing issues can be seen causing operation realignment in the energy sector, as companies shift to where prices are solid. Thus, the move by Encana Corporation (USA) (NYSE:ECA) is not an isolated case.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 04\/04\/2014 (wallstreetpr) –\u00a0Encana Corporation (USA) (NYSE:ECA) is engaged in energy production, majorly dealing in oil, natural gas and natural gas liquids. The company […]<\/p>\n","protected":false},"author":2,"featured_media":18637,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[4493,704],"stock_ticker":[],"class_list":["post-18636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-encana-corporation-usa-nyseeca","tag-nyseeca","entry"],"acf":[],"yoast_head":"\n