Encana backs away from high-growth plans

‘Pure play’ gas strategy hit by slump in Henry Hub price; focus turns to liquids-rich plays

ENCANA’s divide and conquer strategy of 18 months ago, when it hived off its oil and natural gas operations into separate, pure play companies, was supposed to unlock the true shareholder value of those massive resources. At one point the plan was dubbed Project QE2 after the giant ocean liner. No-one has gone as far as renaming the venture Project Titanic. But there doesn’t seem much doubt that Encana is navigating some treacherous waters these days, with no sign of a safe harbour. The grumblings among investors and analysts after Encana set a high-risk goal a year ago of doubling its per-share gas output within five years have steadily intensified, reaching a highwater mark late last year