Shares of Canadian energy giant EnCana Corp. soared Monday in the wake of the company’s announcement that it will split into separate natural-gas and oil companies.
EnCana, whose U.S. operations are based in Denver, saw its stock rise 7.4 percent Monday to a record $92.28.
The company said shareholders should realize better value with one company focused on natural-gas production and the other handling oil, including Canadian oil sands and U.S. refineries.
No changes are expected to EnCana operations, including its network of gas wells in western Colorado’s Piceance Basin.
“On a day-to-day basis, it’s business as usual for us,” said Doug Hock, a spokesman for Denver-based EnCana’s U.S. operations.
EnCana is Colorado’s second-largest gas producer, behind BP. It also drills for gas in Wyoming, Texas and Louisiana. Canadian gas production is centered in British Columbia and Alberta.
Financial analysts said EnCana’s split could benefit shareholders by eliminating a valuation discount that is often suffered by companies that have operations in more than one commodity.
EnCana’s chief executive, Randy Eresman, will head the gas company. Brian Ferguson, EnCana’s chief financial officer, will lead the oil firm. The split is scheduled to become effective next year.
About 3,500 EnCana workers will go to the gas side, and 2,000 will be designated for the oil company.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
