Encana's asset review finds "significant changes" needed
BY JUDY MCKINNON
CALGARY -- Encana Corp. said a review of its assets has identified a number of areas "where significant changes are required to be successful."
Calgary, Alberta-based Encana, which tasked internal and external advisers earlier this year to review its operations, has been grappling with slumping natural-gas prices which have hurt profits.
The company said the review found an excess of inventory in its portfolio of plays, mostly dry natural gas, than can be optimally developed.
"The company must focus its portfolio and concentrate capital in the assets that leverage its strengths and generate the strongest returns," Encana said in a statement.
Newly minted president and chief executive, Doug Suttles, who took the helm in June, said shareholders and staff "are ready for change and maintaining the status quo is not an option."
"I have every intention of making significant change in the areas where improvement is required," Mr. Suttles said in a company statement.
The company said it plans to finalize its strategy over the coming weeks.
Dow Jones Newswires