Encana exits LNG project

Article Excerpt

ENCANA CORPORATION $19.79 (Toronto symbol ECA; Shares outstanding: 735.4 million; Market cap: $14.6 billion; TSINetwork Rating: A v e r a g e ; D i v i d e n d y i e l d : 4 . 0 % ; www.encana.com) is selling its 30% stake in a proposed liquefied natural gas (LNG) terminal in Kitimat, B.C., to Chevron Corp. (New York symbol CVX). LNG plants are not Encana’s area of expertise, so it has decided to let Chevron focus on building and operating the facility. Chevron’s experience with similar LNG plants in Australia should help speed up the Kitimat project and let it conclude contract negotiations with Asian LNG buyers. At the same time, Encana will still benefit by shipping its gas through Kitimat when the terminal is completed. Encana is a buy. buy…