Calgary stalwart Encana Corp. will be making Denver its new home after winning investor approval to relocate and to change its brand to Ovintiv.
Close to 90% voted in favor of the realignment, Encana said Tuesday following a special meeting of security holders. The restructuring and rebranding was announced in late October.
CEO Doug Suttles said the company had received a “vote of confidence” from its investors. “With 90% of our securityholders voting ‘for’ the resolution, there is clearly support for our efforts to expose Ovintiv to the deeper pools of capital in the U.S., capturing the value we know exists within our equity.
"We will continue to focus on innovation and efficiencies throughout our operations, delivering the financial and operational performance our shareholders expect."
Today, more than 80% of Encana’s capital investments, 75% of revenues and around 70% of proved reserves are in the United States. The portfolio includes roughly 1.3 million net acres within the Permian, Anadarko and Montney formations.
The migration to Denver, where Suttles has lived since late 2018, is expected to “expose the company to increasingly larger pools of investment in U.S. index funds and passively managed accounts,” management said. The migration is expected to “better align our business operations with the corporate domicile, as well as our U.S.-based peers.”
Rebranding as Ovintiv is being done to reflect “the significant and recent transformation of the company,” management had said. Ovintiv is to trade on the New York and Toronto stock exchanges under the ticker symbol "OVV."
The company plans to complete the consolidation and share exchange with effectively one share of Ovintiv common stock for every five Encana common shares. Completion of the reorganization is still subject to other conditions to closing, including final approval by the Court of Queen's Bench of Alberta.