EnCana Completes Spin-off

Following the shareholders’ approval on Nov. 25, EnCana Corporation (ECA - Analyst Report) has completed its split into two highly focused energy companies -- Cenovus Energy Inc. and EnCana Corporation -- on Nov. 30, 2009. Cenovus will be focused on oil sands and refining businesses and EnCana will be focused on natural gas.

Given the uncertainty and volatility in the global financial markets, EnCana had chosen to delay the timing of shareholder vote, originally planned for Dec. 2008.

Under the terms of the arrangement, EnCana shareholders will own one new EnCana common share (which will continue to be represented by existing EnCana common share certificates) and will receive one common share of Cenovus for each EnCana common share held on Dec 7, 2009, the anticipated distribution record date.

Cenovus and the post-split EnCana will begin trading on the Toronto Stock Exchange using the CVE and ECA ticker symbols, respectively, on Dec. 3 and Dec. 9 on the New York Stock Exchange.

We believe that the spin-off promises to unlock significant value. We like EnCana particularly for its balanced portfolio of resource plays, disciplined approach to capital investments, low-cost operating structure and solid balance sheet.

However, we are maintaining our Neutral recommendation for EnCana shares due to the tentative North American natural gas environment.

Read the full analyst report on ECA