Exhibit 99.1
news release
Encana Issues Response to Letko Brosseaus Release on Companys Establishment of Domicile in the United States
Company in strong disagreement with Letkos conclusions and reiterates its shareholder value rationale
CALGARY, November 19, 2019 Encana Corporation (NYSE, TSX: ECA) today issued a statement in strong disagreement to Letkos news release
earlier today titled: Letko Brosseau Will Vote Against Encanas Proposed Exit from Canada.
We were disappointed by
Letkos release earlier today stating its opposition to our recent decision to establish Encanas corporate domicile in the United States, said Encanas CEO Doug Suttles. We have had a long relationship with Letko and most
certainly appreciate their investment in our Company.
Our establishment of domicile in the U.S. was carefully considered by our leadership, Board
of Directors and outside advisors. The rationale for the move is crystal clear we want to expose our Company and all its stockholders to increasingly larger pools of investment in U.S. index funds and passively managed accounts. The
change in corporate domicile will not change how we run our day-to-day business, nor diminish the important role our Canadian assets play in our portfolio today. We do not believe that our Canadian investors will be forced to sell beyond the
Canadian indices, and we will remain listed on both the TSX and the NYSE. Furthermore, we know that most of our large investors in Canada also own many of our U.S.-domiciled peers today. We deeply believe this move ultimately will be positive for
ALL shareholders as exposure to the significantly larger U.S. market and funds is estimated to create more than $1 billion of additional demand for our shares. As we said at the time of the original announcement in late October, our actions
show that we will leave no stone unturned to capture the value we deeply believe exists within our equity.
Encana has significantly
transformed the Company over the last half-decade. Todays quality, liquids-rich portfolio supports a sustainable business model that generates free cash flow and a return of cash to shareholders. Our focus on innovation and efficiency is
consistently delivering superior financial and operational performance. Our establishment of domicile in the U.S., as well as our subsequent name change to Ovintiv Inc., reflects our significant transformation and better aligns us with our U.S.
peers. Today, more than 80% of Encanas capital investments, 75% of revenues and approximately 70% of proved reserves are located in the U.S.
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preliminary proxy statement/prospectus was recently filed with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. We have also prepared a detailed slide packet outlining the significant under-representation
of index funds and passive accounts in Encanas current ownership when compared to similar U.S. peer companies. The preliminary proxy statement/prospectus and the referenced slide packet can both be found on Encanas website at
www.encana.com.
The change in corporate domicile, the rebrand to Ovintiv, and a previously announced 1 for 5 consolidation and share
exchange require two-thirds of votes cast for shareholder approval. A special meeting of Encana shareholders will be held in early 2020. In addition to shareholder approval, stock exchange and Canadian court
approvals are also required.
Important Information for Investors and Securityholders
This communication is not intended to and does not constitute an offer to sell, buy or exchange or the solicitation of an offer to sell, buy or exchange any
securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, purchase, or exchange of securities or solicitation of any vote or approval in any jurisdiction in contravention of applicable law. In
connection with the proposed corporate reorganization that includes, among other things, the redomicile, Encanas subsidiary 1847432 Alberta ULC, a predecessor to Ovintiv Inc. (Ovintiv), has filed a registration statement on Form S-4, which includes Ovintivs preliminary prospectus as well as Encanas preliminary proxy statement (the Proxy Statement/Prospectus), with the U.S. Securities and Exchange Commission (the
SEC) and Canadian securities regulatory authorities. Encana plans to mail the definitive Proxy Statement/Prospectus to its shareholders and holders of its equity incentives in connection with the proposed corporate reorganization.
INVESTORS AND SECURITYHOLDERS OF ENCANA ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC AND CANADIAN SECURITIES REGULATORY AUTHORITIES CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT ENCANA, OVINTIV, THE CORPORATE REORGANIZATION AND RELATED MATTERS. Investors and securityholders will be able to obtain free copies of the definitive Proxy Statement/Prospectus (when available) and other
documents filed with the SEC by Encana or Ovintiv through the website maintained by the SEC at www.sec.gov. Investors and securityholders will also be able to obtain free copies of the definitive Proxy Statement/Prospectus (when available) and other
documents filed with Canadian securities regulatory authorities by Encana, through the website maintained by the Canadian Securities Administrators at www.sedar.com. In addition, investors and securityholders will be able to obtain free copies of
the documents filed with the SEC and Canadian securities regulatory authorities on Encanas website at www.encana.com or by contacting Encanas Corporate Secretary.
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