EnCana splits itself up

Article Excerpt

ENCANA CORP $30 (Toronto symbol ECA; Shares outstanding: 750.2 million; Market cap: $22.5 billion; SI Rating: Average) and CENOVUS ENERGY $26.30 (Toronto symbol CVE; Shares outstanding: 750.2 million; Market cap: $19.7 billion; SI Rating: Extra Risk) are now trading as separate stocks after EnCana split itself into two separate companies. One kept the EnCana name and trading symbol, and focuses on unconventional natural gas. The other operates as Cenovus Energy Inc. and specializes in oil-sands projects, oil refineries and conventional natural gas. The new EnCana accounts for about two-thirds of the original company’s production and reserves. Cenovus accounts for the remaining third. Shareholders received one share in each of the two new firms for every EnCana share they owned. Investors will not have to pay capital-gains taxes until they sell their new shares. We see both EnCana and Cenovus as holds. holds…

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