EnCana money coming back?Globe says proposed royalty a pain for EnCana, others
EnCana Corp (C:ECA)
Shares Issued 750,782,918
Last Close 10/12/2007 $63.29
Monday October 15 2007 - In the News
Also Canadian Natural Resources Ltd (C:CNQ) In the News
Also Highpine Oil & Gas Ltd (C:HPX) In the News
Also Duvernay Oil Corp (C:DDV) In the News
The Globe and Mail reports in its Saturday edition that proposals for higher energy royalties in Alberta could hit companies in varied ways. The Globe's David Ebner writes that Canadian Natural Resources is now proposing cuts of $800-million from its estimated 2008 Alberta spending of about $2-billion. Canadian Natural says cash flow per share could fall 7 per cent in 2008. Canadian Natural has about 60 per cent of production in Alberta, the most by any large firm. EnCana is now proposing cuts of $1-billion from is estimated 2008 Alberta spending of about $3-billion. EnCana says it will move money to other places such as British Columbia, Colorado and Texas. About half of EnCana's production is in Alberta. EnCana's cash flow per share could drop 4 per cent in 2008. Highpine Oil & Gas is a producer of oil wells. Highpine is among the most affected by Alberta's new proposed royalties. Highpine could see cash flow fall 31 per cent. Its stock closed Friday at $10.55, down from $12.11 on Sept. 18. Duvernay Oil has about two-thirds of its production in Alberta. For Duvernay the impact of the proposed royalties may be muted because of fiscal incentives. Duvernay's cash flow could fall about 11 per cent in 2008.
© 2007 Canjex Publishing Ltd.