Encana Oil & Gas (USA) is a south of the border chip off the block of a Canadian energy giant. The exploration and production subsidiary of natural gas giant Encana Corporation explores for and produces hydrocarbons primarily in four key natural gas resource plays (almost 90% of its total US natural gas production) located at Jonah and Piceance in the US Rockies (Wyoming and northwest Colorado) and the Fort Worth and East Texas/Haynesville basins. It also owns stakes in natural gas gathering and processing assets, mainly in Colorado, Texas, Utah, and Wyoming. In 2012 Encana Oil & Gas (USA) had interests in 2.9 million net acres of land, of which 2.3 million net acres were undeveloped.
The company operates in four key natural gas resource plays: Jonah and Piceance (in the Rockies) and in the Fort Worth and East Texas basins in Texas. It also has assets in Alaska.
In 2012the company drilled 285 net wells.
In 2012 the company reported a 16% drop in revenues due to lower production volumes stemming from natural declines in older fields, divestitures, and shut-in production, partially offset by new drilling production in the Piceance basin.
Encana Oil & Gas is looking to raise cash by divesting some of its lucrative shale gas plays and related midstream infrastructure assets (natural gas processing plants, pipeline gathering systems and compression facilities) and through partnerships.
In 2013 the company teamed up with steelmaker Nucor to implement an onshore natural gas drilling program to help fuel that company's reduced iron facility in Convent, Louisiana. Nucor will pay its share of costs plus an additional amount of carried interest as each well is drilled.
In 2011 Encana Oil & Gas sold its natural gas processing plant and related assets in Colorado to Western Gas Partners for $303 million.
In a move to focus on its highest return projects in Texas and Louisiana, that year it also divested a portion of its Piceance natural gas midstream assets in Colorado to a private firm for $590 million. In 2011 it also sold most of its North Texas natural gas assets to Houston-based EnerVest for $860 million.
In 2011 the company formed a joint venture with utility Northwest Natural Gas to exploit natural gas reserves in the Jonah filed Wyoming in order to provide a long-term gas supply for the utility.
Encana Oil & Gas (USA) is a subsidiary of Encana Corporation.
In 2009 Encana restructured itself as a natural gas focused organization, part of which was ramping up the profile and importance of its USA division in developing unconventional natural gas plays. As part of this push, EnCana Oil & Gas (USA) set up joint ventures to explore and produce in the Hayneville Shale in Texas and Louisiana and Appalachia's Marcellus Shale.
That year the US Environmental Protection Agency (EPA) released a controversial report that made a direct link between the chemicals used in hydraulic fracturing (fracking) and contaminated groundwater at the company's Pavillion natural gas field in Wyoming.