Encana Corporation yesterday announced that the Court of Queen's Bench of Alberta granted a final order approving the oil and gas company’s reorganization that will see them move their headquarters from Calgary to Denver.
They will also change their name to Ovintiv Inc.
Encana announced the changes in October, and in their Dec 11th proxy statement shared their 3 initiatives:
1. To establish the Company's corporate domicile in the U.S. The migration to the U.S. from Canada is expected to expose the Company to increasingly larger pools of investment in U.S. index funds and passively managed accounts. Today, the majority of Encana's assets, people and production are in the U.S. The migration to the U.S. from Canada will better align our business operations with the corporate domicile, as well as our U.S.-based peers. Additional details can be found in the definitive Proxy Statement/Prospectus.
2. To rebrand under the name Ovintiv Inc. The new corporate name reflects the significant and recent transformation of the Company. Pending securityholder, stock exchange and court approvals, Ovintiv will begin trading on both the New York and Toronto stock exchanges under the ticker symbol "OVV."
3. To complete a consolidation and share exchange for effectively one share of common stock of Ovintiv for every five common shares of Encana.
The reorganization is expected to close around Jan. 24.
Ultimately, Encana says that a US based corporate headquarters will expose it to increasingly largers pools of investment in the US, as well as create better alignment with its U.S. peers.
The company has said the changes will not affect how it runs its day-to-day activities in Canada.
img: Encana
