Encana maxes out US$1.15 billion stock sale; underwriters exercise all options

CALGARY – Encana Corp. (TSX:ECA) says the underwriters of its recent public stock offering have exercised all their options to acquire an additional US$150-million worth of the oil and gas company’s equity.

That brings the total value of the stock offering to US$1.15 billion, including money raised through the initial sale of 107 million common shares at US$9.35 each.

The Calgary-based company has said it will put about half of the proceeds from the offering on its 2017 capital budget. The company said it will double the number of wells it has in the Permian oilfield of Texas by the end of the year.

The remaining proceeds from the share sale are to be used to repay debt. The sale was announced on Sept. 19 and the main sale was completed later in the week, not counting the overallotment options.

Its shares closed Monday at US$10.67 at the New York Stock Exchange and C$14 on the Toronto Stock Exchange.

Encana holds an investor day on Wednesday in New York City. The company will provide a live and archived webcast of the event.