Mitsubishi to Spend $1.46 Billion for Encana Cutbank Stake

Mitsubishi Corp. agreed to pay C$1.45 billion ($1.46 billion) for a 40 percent stake in Encana Corp.’s Cutbank Ridge, eight months after PetroChina Co. walked away from a deal for the natural-gas assets.

Mitsubishi will pay another C$1.45 billion for the next five years to fund costs at the Cutbank Ridge Partnership, which holds 409,000 net acres and an estimated 900 billion cubic feet of gas, Calgary-based Encana said in a statement today. The deal doesn’t include 600 million cubic feet a day of current production or gas processing and pipelines in the area.