Encana announces TSX acceptance of normal course issuer bid
February 26 2018 - 6:00AM
Encana Corporation (Encana) (TSX:ECA)
(NYSE:ECA ) announced today that the Toronto Stock
Exchange (TSX) has accepted its notice of intention to commence a
normal course issuer bid (NCIB) through which Encana may spend up
to US$400 million to purchase up to 35,000,000 common shares during
the 12-month period commencing February 28, 2018 and ending
February 27, 2019. The number of shares authorized for purchase
represents approximately 3.6 percent of Encana’s 973,123,364 common
shares issued and outstanding as of February 20, 2018. Purchases
will be made on the open market through the facilities of the TSX,
New York Stock Exchange and/or alternative trading systems at the
market price at the time of acquisition, as well as by other means
as may be permitted by stock exchange rules and securities laws,
including by private agreements. Purchases made by private
agreement under an issuer bid exemption order issued by a
securities regulatory authority will be at a discount to the
prevailing market price as provided in the exemption order. In the
future, Encana may also enter into an automatic share purchase plan
in relation to purchases made in connection with the NCIB. The
company plans to fund the NCIB with cash on hand.
The actual number of common shares that may be
purchased under the NCIB and the timing of any such purchases will
be determined by Encana. The average daily trading volume through
the facilities of the TSX during the most recently completed
six-month period was 3,682,580 common shares. Consequently, daily
purchases through the facilities of the TSX will be limited to
920,644 common shares, other than block purchase exceptions.
All common shares acquired by Encana under the NCIB will be
cancelled. Encana has not purchased any of its shares pursuant to a
normal course issuer bid within the past 12 months.
Encana intends to execute the NCIB in a manner
that is consistent with its commitment to capital discipline by
ensuring that the level of spending is aligned with the prevailing
commodity price environment and resulting cash flows. Encana
believes that, depending on the trading price of its common shares
and other relevant factors, purchasing its own shares represents an
attractive opportunity that is in the best interests of the company
and its shareholders.
Encana CorporationEncana
Corporation is a leading North American energy producer that is
focused on developing its strong portfolio of resource plays, held
directly and indirectly through its subsidiaries, producing oil,
natural gas liquids (NGLs) and natural gas. By partnering with
employees, community organizations and other businesses, Encana
contributes to the strength and sustainability of the communities
where it operates. Encana common shares trade on the Toronto and
New York stock exchanges under the symbol ECA.
ADVISORY REGARDING FORWARD-LOOKING
STATEMENTS - This news release contains certain
forward-looking statements or information (collectively, “FLS”)
within the meaning of applicable securities legislation, including
the United States Private Securities Litigation Reform Act of 1995.
FLS include: planned share repurchase program, including amount and
number of shares to be acquired, anticipated timeframe, method and
location of purchases, and source of funding thereof; commitment to
capital discipline; alignment of spending with commodity prices and
cash flows; and benefits of the NCIB.
Readers are cautioned against unduly relying on
FLS which, by their nature, involve numerous assumptions, risks and
uncertainties that may cause such statements not to occur, or
results to differ materially from those expressed or implied. These
assumptions include: future commodity prices and differentials;
foreign exchange rates; ability to access cash, credit facilities
and shelf prospectuses; and expectations and projections made in
light of, and generally consistent with, Encana's historical
experience and its perception of historical trends, including with
respect to the pace of technological development, benefits achieved
and general industry expectations.
Risks and uncertainties that may affect these
business outcomes include: ability to generate sufficient cash flow
to meet obligations and fund the NCIB; commodity price volatility;
variability in the amount, number of shares, method, location and
timing of purchases, if any, pursuant to the NCIB; impact of a
downgrade in credit rating and its impact on access to sources of
liquidity; fluctuations in currency and interest rates; and other
risks and uncertainties impacting Encana's business, as described
in its most recent Annual Report on Form 10-K and as described from
time to time in Encana’s other periodic filings as filed on SEDAR
and EDGAR.
Although Encana believes the expectations
represented by such FLS are reasonable, there can be no assurance
that such expectations will prove to be correct. Readers are
cautioned that the assumptions, risks and uncertainties referenced
above are not exhaustive. FLS are made as of the date of this news
release and, except as required by law, Encana undertakes no
obligation to update publicly or revise any FLS. FLS contained in
this news release are expressly qualified by these cautionary
statements.
Further information on Encana Corporation is
available on the company’s website, www.encana.com, or by
contacting:
Investor contact:Corey CodeVice-President,
Investor Relations(403) 645-4606 Patti
PosadowskiSr. Advisor, Investor Relations(403)
645-2252 |
Media contact:Simon ScottVice-President,
Communications(403) 645-2526 Jay
AverillDirector, Media Relations(403)
645-4747 |
SOURCE: Encana Corporation