The Canadian Press - ONLINE EDITION

Encana selling Alberta power assets as it continues to focus portfolio

  • Print

CALGARY - Encana Corp. CEO Doug Suttles says the company has agreed to sell one gas-fired power plant it owns and operates in Alberta and the 50 per cent stake it holds in another.

The value of the deal and the buyer are not being disclosed.

"It's not that these weren't good businesses," Suttles told reporters on the sidelines of a TD energy conference in Calgary.

"We're not a power company. We're an oil and gas company and this is about focus and consistent strategy. So it just made sense to do this and it was purchased by a power company, which makes complete sense."

Suttles, a third-generation Texas oilman and former BP executive, has been at the helm at Encana for just over a year. Last fall, the energy company unveiled a new strategy that would see it focus on just a handful of regions, rather than dozens.

Earlier this year, Encana (TSX:ECA) made an entry into the oil-rich Eagle Ford shale in Texas through a US$3.1-billion deal with Freeport-McMoRan.

Suttles told the conference that Encana strives to be a top North American oil and gas producer. So far, that's included operations in Canada and the United States, but not Mexico.

Suttles said the company is watching Mexico closely, as the country looks to open up to foreign investment after 75 years of government control. Recently, a delegation of Mexican government officials came to Calgary in a bid to attract Canadian investment.

"I think it's interesting to see what's happening there. I would say from what I hear and what I'm being told, a lot of people are believing that these reforms are going to happen and that new opportunities will emerge and that risk capital will move to Mexico and probably generate some good value," Suttles said.

"There are some unique issues in Mexico beyond the political reforms, because in many areas onshore where oil and gas potential exists, there are significant security concerns still today and the ability to operate and execute will be a challenge there. But it's something we monitor."

Follow @LaurenKrugel on Twitter

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Willy wants to get back to winning

View more like this

Photo Store Gallery

  • Young goslings are growing up quickly near Cresent Lake in Portage La Prairie, Manitoba- See Bryksa 30 Day goose project- Day 11- May 15, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A goose flys defensively to protect their young Wednesday near Kenaston Blvd and Waverley -See Bryksa 30 Day goose challenge- Day 16 - May 23, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you think e-cigarettes should be banned by the school division?

View Results

View Related Story

Ads by Google