Encana Corp., now a Calgary-based company, says it plans to shift its base to the United States and change its name to Ovintiv Inc.
Encana, with Doug Suttles as president and chief executive officer, said Thursday a corporate domicile in the United States will expose it to increasingly larger pools of investment in U.S. index funds and passively managed accounts, as well as better align it with its U.S. peers.
The company also plans a share consolidation that would see shareholders receive one share of Ovintiv for every five common shares of Encana.
Encana CEO Doug Suttles said the base change will not alter how the company runs its day-to-day activities.
The company said it’s hoped the plan, which still requires shareholder, stock exchange and court approval, would occur early next year.
The announcement came after Encana announced a third-quarter profit of $149 million or 11 cents per share, up from a profit of $39 million or four cents per share a year ago.