Ovintiv Inc. is a hydrocarbon exploration and production company organized in Delaware and headquartered in Denver, United States. It was founded and headquartered in Calgary, Alberta, and under its previous name Encana was the largest energy company and largest natural gas producer in Canada. The company was rebranded as Ovintiv and relocated to Denver in 2019–20.
PanCanadian Energy Corporation
Alberta Energy Company
|Founded||April 4, 2002Calgary, Canadain|
|Peter Dea, Board Chair;|
Brendan McCracken, President & CEO;
Corey Code, EVP & CFO
Natural gas liquids
|533.9 thousand barrels of oil equivalent (3,266,000 GJ) per day (2021)|
|Revenue||US$8.658 billion (2021)|
|US$1.416 million (2021)|
|Total assets||US$14.055 billion (2021)|
|Total equity||US$5.074 billion (2021)|
Number of employees
|Footnotes / references|
In 2021, the company's average production was 533.9 thousand barrels of oil equivalent (3,266,000 GJ) per day, of which 26% was petroleum, 25% was natural gas liquids, and 49% was natural gas. Of 2021 production, 56% was in the United States and 44% was in Canada.
1880s to 2002 - Canadian Pacific and PanCanadian yearsEdit
When the Canadian Pacific Railway was formed, the government of Sir John A. Macdonald compensated it for assuming the risk of developing the railroad with the subsurface rights for a checkerboard pattern of most of Alberta and part of Saskatchewan. These rights were later spun off to the company's predecessors.
On July 3, 1958, Canadian Pacific created "Canadian Pacific Oil and Gas" to manage its oil and gas properties and its mineral rights which, in 1971 merged with "Central-Del Rio Oils", to create "Pan Canadian Petroleum Limited".
2002 to 2019 - the Encana yearsEdit
In April 2002, Pan Canadian Petroleum Ltd was spun out of Canadian Pacific Limited. It subsequently merged with Alberta Energy Corporation to form EnCana. Gwyn Morgan was named president and CEO.
In 2009, EnCana completed the corporate spin-off of Cenovus Energy, which held its oil business, representing one-third of its total production and reserves, and EnCana Corporation retaining the natural gas business. Investors favoured the split as it gave them the flexibility to choose between investing in oil, gas, or both.
In December 2012, Encana announced a US$2.1 billion joint venture with state-owned, Beijing-based PetroChina through which PetroChina received a 49.9% stake in Encana's Duvernay Formation acreage in Alberta. This was in line with the rules that "favor minority stakes over takeovers" since Prime Minister Stephen Harper's December 7, 2012 prohibition of purchases by state-owned enterprises seeking to invest in Canadian oil. By the end of 2012, Encana's staff had increased to 4,169 employees.
Encana and Cenovus' headquarters, The Bow in Calgary, was completed in 2013, becoming the tallest building in Canada outside of Toronto. The project, owned by H&R REIT, was announced as Encana's headquarters in 2006, prior to the Cenovus split.
In November 2013, the company cut its dividend, announced layoffs of 20% of its employees, closure of its office in Plano, Texas, and plans to sell assets and to found a separate company for its mineral rights and royalty interests across southern Alberta. It planned to invest 75% of its 2014 capital budget into 5 projects: Projects in the Montney Formation and the Duvernay Formation in Alberta, the San Juan Basin in New Mexico, Louisiana's Tuscaloosa Marine Shale, and the Denver-Julesburg Basin (DJ Basin) in northeast Colorado, Wyoming, and Nebraska.
The name change, notably the dropping of "Cana" was met with criticism in Canada. Encana's departure from Canada "only intensified the gloom enveloping the Canadian energy industry after foreign companies sold more than US$30 billion". Youssef Youssef, a commerce professor at Humber College in Toronto, also takes this perspective, citing the difficulty in changing a brand as recognizable as this one "(Encana) was a solid brand and it had resonance within the Canadian oil industry, and everybody knows the company, so to change the brand, it takes a lot of steps.”
2020 to present day - OvintivEdit
On January 24, 2020, after receiving shareholder approval, the company completed the transfer of its corporate domicile from Canada to the United States, Ovintiv Canada ULC retains an office in Calgary.
List of notable sales, mergers and acquisitionsEdit
In February 2012, Mitsubishi paid approximately C$2.9 billion for a 40% interest in the Cutbank Ridge Partnership with Encana, which involves 409,000 net acres of Montney Formation natural gas lands in northeast British Columbia. The company also sold its midstream assets in the Cutbank Ridge to Veresen for C$920 million.
In June 2014, the company sold its Bighorn assets in Alberta to Jupiter Resources for US$1.8 billion.
In November 2014, the company acquired Athlon Energy for $7.1 billion.
In May 2018, the company permanently ceased production at Deep Panuke. The Deep Panuke project produced and processed natural gas 250 kilometers offshore southeast of Halifax, Nova Scotia. The platform was sent for recycling in 2020.
Major land assetsEdit
The company has a land position in Canada of 1.3 million net acres, of which about 773,000 net acres are undeveloped. Its assets in Canada are in the Montney Formation, where it has a partnership with Mitsubishi to develop Cutbank Ridge, Wheatland County, Alberta, and the Horn River Formation.
In February 2022, Ovintiv absorbed former subsidiary EWL Management Limited making it the owner of five decommissioned mines in Ontario: Coldstream Copper Mine, Gordon Lake Mine, Greyhawk Mine (uranium), Dyno Mine (uranium), and Madawaska Mine (uranium) which is being rehabilitated to meet current compliant standards.
In the United States, the company holds approximately 929,000 net acres of land, of which 152,000 net acres are undeveloped. It operates in the Permian Basin, Anadarko Basin, Uinta Basin, and the Bakken formation.
Alleged collusion and bid rigging with Chesapeake EnergyEdit
From 2008 through 2010, the company accumulated 250,000 net acres in the Collingwood-Utica Shale gas play in the Middle Ordovician Collingwood formation of the Michigan Basin at an average cost of $150/acre. In May 2012, the company paid about $185 an acre for oil and gas rights on 2,156 acres (873 hectares) at an auction by the Michigan Department of Natural Resources, which was "88 percent less than the average paid two years ago in the area".
In July 2012, Reuters reported about e-mails between the company and Chesapeake Energy, the second-largest natural gas producer in the U.S., to divide up Michigan counties state land leases to suppress land prices in an October 2010 auction. In 2013, a private landowner filed suit against the company and Chesapeake for bid rigging. Justice Department and Michigan authorities were investigating whether state or federal laws were violated; the Internal Revenue Service and U.S. Securities and Exchange Commission also investigated.
While the case was dropped by the DOJ, Michigan's Attorney General followed up on the accusations, and Encana ended up with a fine of $5 million, and Chesapeake paid $25 million into a victim-compensation fund.
Failed lawsuit by adjacent property owners to prevent drillingEdit
In 2013, two property owners adjacent to a drilling unit filed suit against the Michigan Department of Environmental Quality (DEQ) and Encana for potential harm due to proximity. In October 2013, the judge of the Circuit Court of Ingham County issued an injunction against Encana starting to drill until an administrative hearing before DEQ's supervisor of wells had been completed, re part 12 of DEQ's rules for oil and gas operations. In May 2014, the supervisor of wells found with Encana, that the petitioners did "not have standing", because they did not own land within the drilling unit and dismissed the case.
Alleged excessive water use for hydraulic fracturingEdit
In November 2013, Ecojustice, the Sierra Club and the Wilderness Committee filed a lawsuit against Encana Corporation and the British Columbia's Oil and Gas Commission for excessive water use from lakes and rivers for its hydraulic fracturing for shale gas, "granted by repeated short-term water permits, a violation of the provincial water act".
Wyoming water pollutionEdit
In spring 2008, residents from Pavillion, Wyoming, approached the United States Environmental Protection Agency (EPA) about changes in water quality from their domestic wells. Encana was the primary natural gas producer in the area. In 2009, the EPA announced that it had found hydrocarbon contaminants in residents' drinking water wells.
In Pouce Coupe British Columbia five explosions targeted Encana pipelines between October 2008 and January 2009; media reports indicate the pipeline may have been bombed by a disgruntled community member fearing the sour gas (containing hydrogen sulfide, which can be fatal if too much of it is inhaled) poses a danger to the community. Encana was fined CAD $250,000 under Canada's Environmental Emergency Act.
Encana's hydraulic fracturing operations in the United States are portrayed in the 2010 documentary, Gasland, which alleges that hydraulic fracturing causes pollution of ground and surface water, air, and soil.
Deep Panuke projectEdit
Issues were raised for the Deep Panuke project offshore of Nova Scotia, when it was proposed in 2006 as a smaller version with increased ocean discharges and when Encana asked for a "streamlined regulatory process" without public hearings.
Track record of legal chargesEdit
In British Columbia, between 2007 and 2019, Ovintiv was charged for breaching provincial legislation 19 times, more than any other company, as well as being fined the highest amount.
- "Our History". Ovintiv.
- "Ovintiv Inc. 2021 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
- "Energy giant Encana to move HQ from Calgary to the U.S." October 31, 2019.
- "Encana reveals Denver will be its new headquarters after leaving Calgary". CBC News. November 7, 2019.
- Jones, Jeffrey; Haggett, Scott (May 11, 2008). "EnCana to split in two with oil at record highs". Reuters.
- Morgan, Geoffrey (November 1, 2018). "Doug Suttles transforms 'headquarter-less' Encana with $7.7-billion deal to buy Newfield". Financial Post.
- "Canadian Pacific Railway Limited History". International Directory of Company Histories. fundinguniverse.com.
- McClelland, Colin (October 31, 2019). "A storied history: Born out of fire and explosion, Encana's roots tied to Canadian Pacific Railway's western push in the 1880s". Financial Post.
- "CANADIAN PACIFIC RAILWAY COMPANY: 1923–65" (PDF). Dominion Bureau of Statistics.
- "Big Canadian miscible CO 2 EOR project, pipeline advance". Oil & Gas Journal. July 7, 1997.
- "Canadian Corporate Reports; Company Detail: PanCanadian Petroleum Limited". McGill University.
- Haggett, Scott (November 30, 2009). "EnCana wraps up spinoff of its oil business". Reuters.
- "EnCana proceeds with plan to split into two distinct and independent energy companies" (PDF) (Press release). Cenovus Energy. September 10, 2009.
- Parkinson, David (December 9, 2009). "Cenovus spinoff gives investors a choice".
- Jones, Jeffrey (December 13, 2012). "Encana, PetroChina take $2.2 billion stab at joint venture". Reuters.
- "Encana, PetroChina form joint venture to develop natural gas in Alberta". Financial Post. December 13, 2012.
- "Encana laying off 20% of workers". CBC News. November 5, 2013.
- "The Bow tower officially opens in Calgary". CBC News. June 4, 2013.
- Parkinson, David (February 9, 2007). "H&R REIT to develop EnCana's new headquarters". Globe and Mail.
- Dawson, Chester; McKinnon, Judy (November 5, 2013). "Encana to Cut Dividend, Jobs in Reorganization". The Wall Street Journal.
- "Encana to Establish Corporate Domicile in the U.S." PR Newswire. October 31, 2019.
- Balji, Divya; Orland, Kevin (January 23, 2020). "Encana, whose history in Canada dates back to 1800s, says farewell to the TSX today as it heads south". Financial Post. Bloomberg News.
- Dawson, Tyler (October 31, 2019). "As Encana becomes Ovintiv, the rebrand begs a question: What the hell is an Ovintiv?". Financial Post.
- "Encana completes reorganization and establishes corporate domicile in the U.S." (Press release). PR Newswire. January 24, 2020.
- "Regulatory Action – Ovintiv Canada ULC". Canadian Nuclear Safety Commission. May 19, 2022. Retrieved June 23, 2022.
- Seskus, Tony (June 17, 2020). "Oil and gas company Ovintiv, formerly Encana, laying off workers across North America". CBC News.
- Nair, Shanti S.; Khan, Shariq (June 18, 2020). "Ovintiv lays off 25% of workforce after oil demand slumps". Reuters.
- Orland, Kevin (June 17, 2020). "Ovintiv cutting jobs in Calgary, Denver and Texas as drilling slows". Calgary Herald. Bloomberg News.
- "Nexen buys EnCana unit". The Globe and Mail. October 29, 2004.
- "CNPC buys EnCana's Chad operations for $202.5 mln". Reuters. January 21, 2007.
- "CNPC International to buy EnCana's Chad holdings". Oil & Gas Journal. January 15, 2007.
- EBNER, DAVID (May 9, 2007). "MGM Energy buys into several EnCana assets". The Globe and Mail.
- Lustgarten, Abrahm (November 29, 2011). "Company Backs out of $45 Million Deal to Buy Troubled Wyoming Gas Field". ProPublica.
- Joyce, Matt (December 22, 2011). "Encana closes sale on most Barnett assets". American City Business Journals.
- "Encana Completes Cutbank Ridge Deal with Mitsubishi". LNG World News. February 27, 2012.
- DE LA MERCED, MICHAEL J. (February 17, 2012). "Mitsubishi Buys 40% Stake in Encana Shale Gas Assets". The New York Times.
- "Encana closes C$920 million sale of Cutbank Ridge midstream assets" (Press release). Business Wire. February 9, 2012.
- "Encana Reaches Agreement to Sell Bighorn Assets to Jupiter Resources for Approximately US$1.8 Billion" (Press release). GlobeNewswire. June 27, 2014.
- "Encana completes acquisition of Athlon Energy". Oil & Gas Journal. November 13, 2014.
- "Jonah Energy Completes Acquisition of the Jonah Field Operations in Wyoming from Encana" (Press release). Business Wire. May 12, 2014.
- "Encana Completes $3.1 Billion Eagle Ford Acquisition" (Press release). GlobeNewswire. June 20, 2014.
- Graeber, Daniel J. (August 25, 2015). "Encana Corp. leaves Louisiana shale". United Press International.
- Pinto, Anet Josline (December 14, 2015). "Canada's Encana slashes dividend, cuts capex". Reuters.
- SVALDI, ALDO (July 29, 2016). "Encana Corp. completes sale of Denver-Julesburg Basin assets". The Denver Post.
- McKinnon, Judy (October 8, 2015). "Encana to Sell Colorado Oil and Gas Assets for $900 Million". The Wall Street Journal.
- "Encana announces agreement to sell its Piceance natural gas assets" (Press release). Globe Newswire. June 9, 2017.
- "BRIEF-Encana to sell its Piceance natural gas assets for $735 mln". Reuters. June 9, 2017.
- "Encana Corporation – Abandonment of Deep Panuke Offshore Gas Development". National Energy Board.
- "Canada: Deep Panuke Offshore Platform Removed from Field". Offshore Engineer. August 7, 2020.
- "DJR Energy Closes Acquisition of Encana's San Juan Basin Assets" (Press release). Business Wire. December 27, 2018.
- KOHLER, JUDITH (December 28, 2018). "Denver-based DJR Energy closes $480M purchase of assets in San Juan Basin". The Denver Post.
- "Encana completes acquisition of Newfield Exploration to create North America's premier resource company" (Press release). Globe Newswire. February 13, 2019.
- Pulsinelli, Olivia (February 14, 2019). "Encana closes multibillion-dollar acquisition of Woodlands co". American City Business Journals.
- Canadian Nuclear Safety Comission, Order Under Section 25 or Paragraph 37(2)(f) of the Nuclear Safety Control Act, 6 May 2022. (archive)
- "Independent Environmental Monitoring Program: Dyno, Bicroft, and Madawaska Mines". Canadian Nuclear Safety Commission. September 21, 2020.
- "EWL Legacy Mine Properties Perpetual Management Strategy" (PDF). May 1, 2014.
- Petzet, Alan (May 7, 2010). "Explorations: Michigan Collingwood-Utica gas play emerging". Oil & Gas Journal.
- Carroll, Joe (June 27, 2012). "Encana Expands in Michigan Shale Chesapeake Is Abandoning". Financial Post. Bloomberg News.
- Grow, Brian; Schneyer, Joshua; Roberts, Janet (June 25, 2012). "Special Report: Chesapeake and rival plotted to suppress land prices". Reuters.
- Grow, Brian; Schneyer, Joshua (February 25, 2013). "Chesapeake, Encana sued in civil antitrust action". Reuters.
- "Minimizing Antitrust Risks in Joint Ventures, Joint Bidding, and AMIs: A Review of Recent Enforcement Activities". Oil and Gas, Natural Resources, and Energy Journal. 2 (5): 536. January 2017.
- Smith, Lee (February 8, 2014). "Michigan's fracking: Actors and issues". Midland Daily News.
- "Supervisor of Wells Orders". Department of Environmental Quality. Michigan.
- Moore, Dene (November 13, 2013). "Fracking Lawsuit Targets EnCana, B.C. Oil And Gas Commission". HuffPost. The Canadian Press.
- "Pavillion, Wyoming Groundwater Investigation: January 2010 Sampling Results and Site Update" (PDF). United States Environmental Protection Agency. August 2010.
- "Latest EnCana pipeline explosion was deliberate: RCMP". CBC News. July 2, 2009.
- Narwhal, The. "Meet the frackers: B.C.'s top 10 fracking companies, their subsidies, profits and taxes, revealed". The Narwhal. Retrieved October 9, 2021.
- Mosier, Jeff (February 3, 2017). "Wise County couple that sued Plano gas company may lose their $2.9M judgment". The Dallas Morning News.
- "EnCana unveils smaller Deep Panuke project". CBC News. August 29, 2006.
- Official website
- Business data for Ovintiv Inc.: