CALGARY, Alberta, Feb. 27, 2019 (GLOBE NEWSWIRE) — Encana (NYSE, TSX: ECA) announced today receipt of regulatory approvals for its planned $1.25 billion share buyback. On February 27, 2019, the Toronto Stock Exchange (TSX) accepted its notice of intention to renew its normal course issuer bid (NCIB) through which Encana may purchase up to 149,425,839 common shares during the 12-month period commencing March 4, 2019 and ending March 3, 2020. The number of shares authorized for purchase represents 10 percent of Encana’s public float as of February 27, 2019. Purchases will be made on the open market through the facilities of the TSX, New York Stock Exchange and/or alternative trading systems at the market price at the time of acquisition, as well as by other means as may be permitted by stock exchange rules and securities laws, including by private agreements. Purchases made by private agreement under an issuer bid exemption order issued by a securities regulatory authority will be at a discount to the prevailing market price as provided in the exemption order.
Encana has also entered into an automatic share purchase plan (ASPP) in relation to purchases made in connection with the NCIB to allow it to purchase common shares under the NCIB when Encana would ordinarily not be permitted to purchase shares due to regulatory restrictions and customary self-imposed blackout periods. Pursuant to the ASPP, Encana will provide instructions during non-blackout periods to its designated broker, which such instructions may not be varied or suspended during the blackout period. Purchases by Encana’s designated broker will be in accordance with stock exchange rules, applicable securities laws and the terms of the ASPP and all purchases made under the ASPP are included in computing the number of common shares purchased under the NCIB. The ASPP has been pre-cleared by the TSX.
The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by Encana. The average daily trading volume through the facilities of the TSX, excluding purchases made on such facilities, during the most recently completed six-month period was 4,457,598 common shares. Consequently, daily purchases through the facilities of the TSX will be limited to 1,114,399 common shares, other than block purchase exceptions. All common shares acquired by Encana under the NCIB will be cancelled. Under its existing NCIB that expires on February 27, 2019, Encana was authorized to purchase for cancellation 35,000,000 common shares, and during the last 12 months, Encana has purchased for cancellation 20,685,000 common shares.
Encana intends to execute the NCIB in a manner that is consistent with its commitment to capital discipline by ensuring that the level of spending is aligned with the prevailing commodity price environment and resulting cash flows. Encana believes that, depending on the trading price of its common shares and other relevant factors, purchasing its own shares represents an attractive opportunity that is in the best interests of the company and its shareholders.
Encana Corporation is a leading North American energy producer that is focused on developing its strong portfolio of resource plays, held directly and indirectly through its subsidiaries, producing oil, natural gas liquids (NGLs) and natural gas. By partnering with employees, community organizations and other businesses, Encana contributes to the strength and sustainability of the communities where it operates. Encana common shares trade on the Toronto and New York stock exchanges under the symbol ECA.