New Encana CEO Suttles hints at dry natural gas asset sales
Strategic review found company good at developing large scale, complex resource reservoirs
CALGARY—Natural gas giant Encana Corp. says initial findings of a strategic review show the company has more land in its portfolio than can be “optimally developed,” especially when it comes to dry natural gas.
The review, which included both internal and external feedback, found the company must focus its capital on areas that play to its strengths and deliver the best returns.
When former BP executive Doug Suttles took the helm Encana in June, one of his first orders of business was to take a thorough look at the company’s strengths and weaknesses and chart a new course.
“The resounding message I have received from our shareholders and staff through surveys, focus groups, meetings and interviews across the organization is that they are ready for change and maintaining the status quo is not an option,” Suttles said in a release.
“I have every intention of making significant change in the areas where improvement is required.”
The review also found many positive aspects to Encana, including its vast resource base, knowledge of market fundamentals and cost management, the company said.
In particular, it found Encana is good at developing large scale and complex resource reservoirs.
Encana said the main building blocks of its new strategy are in place, and it will be working on how to implement it over the coming weeks.
Investors in Encana have been anxious to see a turnaround at the company, which has been struggling with low commodity prices for years.
It has made a series of strategic moves to cope—some more successful than others—such as forming partnership with deep-pocketed Asian players and chasing after more lucrative liquids-rich natural gas.
Former CEO Randy Eresman parted ways with the company in January.