|Traded as||NYSE: OVV|
|Industry||Oil and gas|
PanCanadian Energy Corporation
Alberta Energy Company
|Founded||April 4, 2002Calgary, Canadain|
|Doug Suttles, President and CEO|
Clayton H. Woitas, Chairman
Sherri A. Brillon, CFO
Natural gas liquids
|564.9 thousand barrels of oil equivalent (3,456,000 GJ) per day (2019)|
|Revenue||$6.726 billion (2019)|
|$234 million (2019)|
|$21.487 billion (2019)|
|$9.930 billion (2019)|
Number of employees
|Footnotes / references|
Ovintiv Inc. (former name: Encana Corporation) is a hydrocarbon exploration and production company organized in Delaware and headquartered in Denver, United States. Initially, it was founded and headquartered in Calgary, Alberta, and in the mid-2000s was the largest energy company in Canada.
The company is ranked 1923rd on the Forbes Global 2000 and has been included on the Dow Jones Sustainability Index. Before asset sales in 2013, the company was the largest natural gas producer in Canada.
When the Canadian Pacific Railway was formed, the government of Sir John A. Macdonald compensated it for assuming the risk of developing the railroad with the subsurface rights for a checkerboard pattern of most of Alberta and part of Saskatchewan. These rights were later spun off to the company's predecessors.
On July 3, 1958, Canadian Pacific created "Canadian Pacific Oil and Gas" to manage its oil and gas properties and its mineral rights.
In April 2002, PanCanadian Petroleum Ltd was spun out of Canadian Pacific Limited. It subsequently merged with Alberta Energy Corporation to form EnCana. Gwyn Morgan was named president and CEO.
In spring 2008, residents from Pavillion, Wyoming, approached the United States Environmental Protection Agency (EPA) about changes in water quality from their domestic wells. Encana was the primary natural gas producer in the area. In 2009, the EPA announced that it had found hydrocarbon contaminants in residents' drinking water wells.
In 2009, Encana completed the corporate spin-off of Cenovus Energy, which held its oil business, representing one-third of total production and reserves, and EnCana Corporation retaining its natural gas business. Investors favoured the split as it allowed the flexibility to choose between investing in oil, gas, or both.
In February 2012, Mitsubishi paid approximately C$2.9 billion for a 40% interest in the Cutbank Ridge Partnership with Encana, which involves 409,000 net acres of Montney Formation natural gas lands in northeast British Columbia. The company also sold its midstream assets in the Cutbank Ridge to Veresen for C$920 million.
In December 2012, Encana announced a US$2.1 billion joint venture with state-owned, Beijing-based PetroChina through which PetroChina received a 49.9% stake in Encana's Duvernay Formation acreage in Alberta. This was in line with the rules that "favor minority stakes over takeovers" since Prime Minister Stephen Harper's December 7, 2012 prohibition of purchases by state-owned enterprises seeking to invest in Canadian oil.
At the end of 2012, Encana's staff had increased to 4,169 employees.
Encana and Cenovus' headquarters, The Bow in Calgary, was completed in 2013, becoming the tallest building in Canada outside of Toronto. The project, owned by H&R REIT, was announced as Encana's headquarters in 2006, prior to the Cenovus split.
In November 2013, the company cut its dividend, announced layoffs of 20% of its employees, closure of its office in Plano, Texas, and plans to sell assets and to found a separate company for its mineral rights and royalty interests across southern Alberta. It planned to invest 75% of its 2014 capital budget into 5 projects: Projects in the Montney Formation and the Duvernay Formation in Alberta, the San Juan Basin in New Mexico, Louisiana's Tuscaloosa Marine Shale, and the Denver-Julesburg Basin (DJ Basin) in northeast Colorado, Wyoming, and Nebraska.
In June 2014, the company sold its Bighorn assets in Alberta to Jupiter Resources for US$1.8 billion.
In November 2014, the company acquired Athlon Energy for $7.1 billion.
In May 2018, the company permanently ceased production at Deep Panuke. The Deep Panuke project produced and processed natural gas 250 kilometers offshore southeast of Halifax, Nova Scotia. The platform was sent for recycling in 2020.
Of particular criticism was the removal of the "Cana" in EnCana, which was thought to symbolize the changing of headquarters from Calgary to Denver. Encana's departure "only intensified the gloom enveloping the Canadian energy industry after foreign companies sold more than US$30 billion". Youssef Youssef, a commerce professor at Humber College in Toronto, also takes this perspective, citing the difficulty in changing a brand as recognizable as this one "(Encana) was a solid brand and it had resonance within the Canadian oil industry, and everybody knows the company, so to change the brand, it takes a lot of steps."
On January 24, 2020, after receiving shareholder approval, the company completed the transfer of its corporate domicile from Canada to the United States.
In 2019, the company's average production was 1.577 billion cubic feet per day (44.7×106 m3/d) of natural gas and 164.4 thousand barrels of oil equivalent (1,006,000 GJ) per day of petroleum, and 137.5 thousand barrels of oil equivalent (841,000 GJ) per day of natural gas liquids.
The company has a land position in Canada of 1.680 million net acres, of which about 1.112 million net acres are undeveloped. Its assets in Canada are in the Montney Formation, where it has a partnership with Mitsubishi to develop Cutbank Ridge, the Duvernay Formation, Wheatland County, Alberta, and the Horn River Formation.
In the United States, the company holds approximately 1.077 million net acres of land, of which 207,000 net acres are undeveloped. It operates in the Eagle Ford Group, Permian Basin, Anadarko Basin, Arkoma Basin, Uinta Basin, and the Williston Basin.
From 2008 through 2010, the company accumulated 250,000 net acres in the Collingwood-Utica Shale gas play in the Middle Ordovician Collingwood formation of the Michigan Basin at an average cost of $150/acre. In May 2012, the company paid about $185 an acre for oil and gas rights on 2,156 acres (873 hectares) at an auction by the Michigan Department of Natural Resources, which was "88 percent less than the average paid two years ago in the area".
In July 2012, Reuters reported about e-mails between the company and Chesapeake Energy, the second-largest natural gas producer in the U.S., to divide up Michigan counties state land leases to suppress land prices in an October 2010 auction. In 2013, a private landowner filed suit against the company and Chesapeake for bid rigging. Justice Department and Michigan authorities were investigating whether state or federal laws were violated; the Internal Revenue Service and U.S. Securities and Exchange Commission also investigated.
While the case was dropped by the DOJ, Michigan's Attorney General followed up on the accusations, and Encana ended up with a fine of $5 million, and Chesapeake paid $25 million into a victim-compensation fund.
In 2013, two property owners adjacent to a drilling unit filed suit against the Michigan Department of Environmental Quality (DEQ) and Encana for potential harm due to proximity. In October 2013, the judge of the Circuit Court of Ingham County issued an injunction against Encana starting to drill until an administrative hearing before DEQ's supervisor of wells had been completed, re part 12 of DEQ's rules for oil and gas operations. In May 2014, the supervisor of wells found with Encana, that the petitioners did "not have standing", because they did not own land within the drilling unit and dismissed the case.
In November 2013, Ecojustice, the Sierra Club and the Wilderness Committee filed a lawsuit against Encana Corporation and the British Columbia's Oil and Gas Commission for excessive water use from lakes and rivers for its hydraulic fracturing for shale gas, "granted by repeated short-term water permits, a violation of the provincial water act".
In Pouce Coupe British Columbia five explosions targeted Encana pipelines between October 2008 and January 2009; media reports indicate the pipeline may have been bombed by a disgruntled community member fearing the sour gas (containing hydrogen sulfide, which can be fatal if too much of it is inhaled) poses a danger to the community.
Encana's hydraulic fracturing operations in the United States are portrayed in the 2010 documentary, Gasland, which alleges that hydraulic fracturing causes pollution of ground and surface water, air, and soil.
Issues were raised for the Deep Panuke project offshore of Nova Scotia, when it was proposed in 2006 as a smaller version with increased ocean discharges and when Encana asked for a "streamlined regulatory process" without public hearings.