Encana Reaches Deal To Sell Its Haynesville Natural Gas Assets - Quick Facts

(RTTNews) - Canadian energy producer Encana Corp. (ECA.TO, ECA) announced that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc., has reached an agreement to sell its Haynesville natural gas assets to GEP Haynesville, LLC, a joint venture formed by GeoSouthern Haynesville, LP and funds managed by GSO Capital Partners LP, for US$850 million.

In addition, through the transfer of current and future obligations, Encana will reduce its gathering and midstream commitments, which will be substantially complete through 2020, by approximately US$480 million on an undiscounted basis. Further, Encana will transport and market GeoSouthern's Haynesville production on a fee for service basis for the next five years.

Encana will use the total cash consideration to reduce its net debt, further strengthening its balance sheet.

The sale of Encana's Haynesville assets is expected to close in the fourth quarter of 2015 with an effective date of January 1, 2015.