Encana to Sell Plants to Veresen for $911 Million

(Corrects sale amount in headline and first paragraph.)

Encana Corp. (ECA), Canada’s largest natural-gas producer, is selling two processing plants to Veresen Inc. for C$920 million ($911 million) as part of a strategy to boost cash reserves.

The sale includes the Steeprock plant in British Columbia and the Hythe plant in Alberta, Encana said today in a statement. The transaction is subject to regulatory approval and expected to be completed in the first quarter of next year.

Encana expects net proceeds from asset sales this year to reach $2.69 billion, the Calgary-based company said in the statement. Earlier this year, a plan to sell gas assets worth C$5.4 billion to PetroChina Co. (857) fell apart over disagreements during negotiations.

“Proceeds from these non-core asset sales are expected to supplement cash flow generation, strengthen the company’s balance sheet and provide financial flexibility,” said Chief Executive Officer Randy Eresman.

Encana shares rose 1.7 percent to close at C$20.48 in Toronto.

To contact the reporters on this story: Jeremy van Loon in Calgary at jvanloon@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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