Encana To Shift Base To The United States, Rebrand As Ovintiv
Zacks Investment Research | Jan 15, 2020 10:11PM ET
Encana Corporation (NYSE:ECA) recently announced that 90% of its shareholders have voted in favour of the reorganization resolution wherein it intends to redomicile in the United States under the new name, Ovintiv Inc. The company had earlier confirmed the plan to relocate.
Through this restructuring, Encana with approximately 71% of its shareholders in the United States and 20% in Canada will effectively exchange five common shares of Encana for each Ovintiv common stock.
The transition will take place this year after which, shares of the company will be dually traded on both the Toronto and New York stock exchanges under the ticker symbol, OVV.
Oil production is surging in Canada but producers are far from happy as their profit margin is sinking. They are struggling to stay competitive due to pipeline bottlenecks. Notably, pipeline construction in Canada failed to keep pace with the rising domestic oil, forcing producers to sell their products at a discounted rate.
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