Market uncertainty stalls EnCana's planned split

By Lisa Kerner

Charlotte, N.C., Oct. 15 - EnCana Corp. said uncertainty and volatility in the global financial markets will delay its split into two independent energy companies.

According to an EnCana news release, the split was originally set for December but will be put off "until clear signs of stabilization return to financial markets."

EnCana planned to split into an integrated oil company named Cenovus Energy Inc. and a pure-play natural gas company that will retain the EnCana name, a company news release said.

"We remain committed to creating Cenovus and we are continuing to work on reorganizing our company's structure so that we are ready to move forward with the transaction at the appropriate time," EnCana president and chief executive officer Randy Eresman said in the release.

"There is currently too much uncertainty in the global debt and equity markets to proceed with external approvals at this time," he said.

Despite the delay in splitting the company, Eresman said EnCana remains financially and operationally strong.

EnCana announced the proposed split in May.

It was previously reported that EnCana shareholders would receive one share in each of Cenovus and the new EnCana.

Based in Calgary, Alta., EnCana engages in the exploration, production and marketing of natural gas, crude oil and natural gas liquids.

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