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EnCana Sells Carrot Creek-Area Gas Assets for $58M; Shares Steady After 2nd Deal in 2 Days

EnCana Corp (ECA.TO,ECA) currently is up 7 cents at $19.60 a share, bouncing back from a slump that saw the stock give back a 25-cent advance earlier in the session after the natural-gas producer announced its second asset sale in as many days.

EnCana shares rose as high as $10.78 each this morning after the firm announced it was selling a natural gas field in the Carrot Creek region of west central Alberta to privately held Direct Energy for $58 million. That follows EnCana dealing a pair of gas-processing plants to Veresen Inc. (VSN.TO) for $920 million.

Proceeds from the sales -- part of a broader effort at EnCana to unload non-core assets -- are intended to supplement cash flow generation, strengthen the company's balance sheet and provide financial flexibility, CEO Randy Eresman explained yesterday in a statement announcing Veresen's purchase.

EnCana has signaled it will continue the divestiture program next and said it provide additional details as part of its 2012 capital investment program to be announced during the upcoming first quarter. The company planned to sell between $1 billion to $2 billion in assets during 2011.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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