Encana Corp Selling Assets To Mitsubishi, Reports Lower Quarterly Op Profit
Encana Corp (ECA.TO), which rose 4% yesterday, said it will sell a 40% stake in gas assets in British Columbia to Mitsubishi Corp in a deal worth C$2.9 billion, and posted a drop in quarterly operating profit hurt by impairment charges, Reuters reported.
It said the deal to sell a stake in Cutbank Ridge extends a string of Encana's gas asset sales as it looks to strengthen its balance sheet to weather low prices and plow money into developing higher-value liquids rich gas.
Encana, which took an impairment charge of $854 million compared with $371 million last year, posted an operating profit of $46 million or 6 cents a share, down from $50 million or 7 cents a share, a year-ago.
Cash flow, a key indicator of its ability to pay for new projects and drilling, rose 6% to $976 million.
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