Encana has announced that its wholly owned subsidiary, Encana Oil & Gas (USA) Inc., has completed the previously announced sale of its San Juan asset in New Mexico to Denver-based DJR Energy.
“This transaction continues our track record of unlocking value from non-core assets,” Doug Suttles, Encana President & CEO, said. “The proceeds from this sale add to our financial strength and strongly support our commitment to our $1.25 billion share buyback and 25% increase to the dividend in 2019.”
Following the expected close of its announced strategic combination with Newfield, Encana is committed to completing a $1.25 billion share buyback in 2019. Encana’s planned share buyback and previously announced 25% increase to its dividend following closing of the transaction with Newfield highlight the quality of its business and commitment to return capital to shareholders.
The sale of Encana’s non-core San Juan asset includes approximately 182,000 net acres and represents the company’s total land position in the play. In 2017, the asset delivered average production of approximately 5,400 BOE/d, including 3,900 BPD of liquids. The transaction has an effective date of 1 April 2018.
Encana’s planned share buyback is subject to receipt of regulatory approvals, stock exchange rules and securities laws and may be made through purchases in the open market or other permitted means.