Encana To Sell 107 Mln Shares At US$9.35/shr

(RTTNews) - Encana Corp. (ECA, ECA.TO) announced the pricing of its public offering of common shares of Encana. Encana agreed to sell 107 million Shares at a public offering price of US$9.35 per Share for gross proceeds to Encana of US$1.00 billion.

In connection with the Offering, Encana has granted the underwriters, led by Credit Suisse Securities (Canada), Inc. and J.P. Morgan, a 30-day over-allotment option to purchase up to 16.05 million additional Shares.

Encana noted that it intends to use approximately half of the net proceeds received from the sale of the Shares to fund a portion of its 2017 capital program. The remaining proceeds will be used to enhance Encana's balance sheet flexibility by repaying indebtedness under its credit facilities. The majority of the 2017 capital program is expected to be allocated to growing Encana's Permian production through increasing the number of rigs in the play, which is expected to result in approximately two times as many Permian wells on stream in 2017 as compared to 2016. The allocation of proceeds may vary depending upon numerous factors, including changes in commodity prices and increased capital efficiency.

The Offering is expected to close on or about September 23, 2016.