RE:Just Like Fligh17 ECA Being Dismantled And Destroyed
Based on the information below - Panuke is hugely profitable for ECA which means that if they do sell, they need to get top dollar (over 2 billion) or the parket will punish them for it. It seems like deep panuke is a crown jewel which means you do not sell unless you get an offer to good to refuse.
From S.A.
- Encana (ECA+1.8%) is preparing to sell its Deep Panuke offshore gas project in Nova Scotia later this year in a deal that could raise $1B-$2B, Bloomberg reports.
- Deep Panuke contributed more than 30% of ECA’s operating cash flow of ~$1.1B in Q1 due to higher spot prices for gas in the U.S. northeast triggered by the harsh winter; it delivered ~253M cf/day of gas in Q1, ~9% of ECA’s total production.
- However, ECA has said the project "doesn't really fit" in its portfolio, since it is the company’s only offshore asset and does not produce the oil or higher-value gas liquids ECA is seeking.