Alberta court approves Encana reorganization, paving way for change next week

  • Jan 17, 2020
  • Boe Report

CALGARY – Encana Corp. says an Alberta court has approved the oil and gas company’s reorganization that will see it move its headquarters to Denver from Calgary and change its name to Ovintiv Inc.

The decision by the Court of Queen’s Bench of Alberta follows Tuesday’s vote that saw 90 per cent of shareholders approve the change, despite public criticism from Encana founder Gwyn Morgan and shareholder Letko, Brosseau & Associates Inc.

Encana announced the changes in October as part of a reorganization that includes a one-for-five share consolidation, also approved by shareholders.

The reorganization is expected to close around Jan. 24.

The Calgary-based company says a corporate domicile in the United States will expose it to increasingly larger pools of investment in U.S. index funds and passively managed accounts, as well as better align it with its U.S. peers.

Encana has said the changes will not affect how it runs its day-to-day activities in Canada.