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Energy Summary for Aug. 25, 2015

2015-08-25 21:00 ET - Market Summary

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by Stockwatch Business Reporter

West Texas Intermediate crude for October delivery added $1.07 to $39.31 on the New York Merc, while Brent for October added 52 cents to $43.21 (all figures in this para U.S.). Western Canadian Select traded at a discount of $14.60 to WTI ($24.71), up from a discount of $14.95. Natural gas for September added 3.5 cents to $2.685. The TSX energy index added 2.35 points to close at 157.59.

Clayton Woitas's EnCana Corp. (ECA) added 27 cents to $8.00 on 11.4 million shares, after agreeing to sell its Haynesville gas assets in Louisiana for $850-million (U.S.). It will use the proceeds to pay down its net debt, which was $5.6-billion (U.S.) as of June 30. This is EnCana's fourth notable asset sale this year. In the first quarter, it sold its Clearwater gas assets in Alberta for $605-million and mid-stream assets in the B.C. Montney for $405-million, and in the second quarter, it sold its Moneta Divide gas assets in Wyoming for an undisclosed amount. The Haynesville assets were initially reported by Bloomberg to be up for sale in April. EnCana has been in the Haynesville play since 2005, but lost interest in 2013, the year that Doug Suttles came in as president and CEO and decided to overhaul the business. He moved fast. By the end of 2014, EnCana had narrowed its focus on two existing core plays (the B.C.-Alberta Montney shale and the Alberta Duvernay shale) and had acquired $9-billion (U.S.) worth of assets in two new core plays (the south Texas Eagle Ford shale and the west Texas Permian shale). It had also unloaded a few billion dollars worth of non-core assets, but not enough to cover all its acquisitions, hence the heavy debt.

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