348:
85:
25:
525:
his compensation had risen from US$ 6.7 million in 2014 to US$ 12.6 million in 2019. Through his eight years as head of Encana, the company's shares decreased 58 per cent in value, while he was paid a total of US$ 104-million. David
Milstead said, "it may not be the most colossal mismatch between executive compensation and company performance in Canadian history, but it's a contender." The
434:
the
Trudeau government, what was once the largest Canadian-headquartered energy producer now sees both its CEO and the core of its asset base located in the U.S." In an editorial he wrote a two weeks later, he said that after stepping down as president in 2005, he "could never have imagined that, a dozen years later, the company would decide to export itself." Meanwhile
324:. When EnCana was created in 2002, Eresman was made president of its Onshore North America division, and in 2003 was made executive vice-president and chief operating officer. Morgan declared his trust in Eresman to lead the company, saying, "you don't put your life and your passion behind something unless you know that you have the right kind of person to carry it on."
517:
happened to Encana, frankly." Rather, he believed the company's difficulties, and its migration to the United States, were the product of the U.S. shale revolution that began around 2008. On the question of the
Cenovus split, he said both companies were hit by the revision in prices after 2008, and that "Cenovus has been terrible. Encana has been terrible."
393:
president and put in charge of the search for a replacement. Eresman's departure from the company was cloaked in secrecy. After the weekend, Woitas told the media that "Randy was getting fatigued." Asked if the board tried to persuade
Eresman to stay, Woitas responded that "it was time to move on with a fresh face representing Encana." In an article in the
524:
Encana's performance during his tenure as president. In
January 2021, Kimmeridge Energy Management, a private equity firm that owned 2.4 per cent of Ovintiv, released a report on the company's poor performance. During Suttles's tenure, Encana's shareholder returns had been negative 85 per cent, while
433:
of
Houston. Before the acquisition, around 60 percent of Encana's production was in Canada; after the acquisition its production became around 60 per cent American. Gwyn Morgan provided a written statement about the deal that read, "I'm deeply saddened that, as a result of the disastrous policies of
516:
federal government, which he believed had created a climate hostile to energy investment. He also stated that if Encana had not spun off its oil business into
Cenovus, the company "would still be in Canada." O'Brien, on the other hand, said "I don't think the government had anything to do with what
473:
solicited several reactions to the move. Tim
Pickering, an asset manager in Calgary, stated that the announcement "highlights what we’ve known all along, that outside foreign investment is losing interest in the Canadian energy sector." Meanwhile, Martin Pelletier, a portfolio manager in Calgary,
428:
On
Thursday, 15 March 2018, Suttles announced to the company's staff that he would be relocating to Denver. He stated the move was for personal reasons. When asked by journalists whether the president's move was an indication the company also would move to the United States, spokesman Simon Scott
319:
At a press conference on 25 October 2005, Morgan announced that he would retire from the presidency at the end of the year and that his replacement would be chief operating officer
Randall K. Eresman. After his retirement, he would remain on the board. Eresman, a native of Medicine Hat, had begun
438:
assessed the purchase, saying, "Encana's announcement that it was acquiring Texas-based Newfield Exploration may be good news for the Calgary-based company, but it is not good news for Canada. It is the most recent chapter in an unfolding story of capital flight from the Canadian energy sector."
392:
After the markets closed on Friday, 11 January 2013, Encana announced that Eresman had tendered his resignation that morning. Although he left the presidency, Eresman remained on the board until the end of February. Upon Eresman's resignation, company director Clayton H. Woitas was made interim
200:
through the merger of their companies. At the time of its creation Encana was the world's largest independent petroleum company by measure of its value, production, and reserves. Morgan ran the company from its inception through the end of 2005. During its early years, Encana established its
495:
questioned the claim that the company's troubles were caused solely by the federal government, and suggested that, rather, the company had been managed poorly since Suttles became president in 2013. During his tenure, Encana's share price had dropped 75 per cent, while share prices in
251:
as a vehicle to produce petroleum on the land grants it had received in the nineteenth century. Central-Del Rio was a small independent producer run by oilman Neil McQueen, and the CPOG had acquired gradually a majority holding in the company. After the creation of PanCanadian,
208:
At the beginning of 2006, Morgan ceded the presidency to Randall K. Eresman. During the new president's first year, the company's profits were CAD 6.4 billion, which was the largest corporate profit in Canadian history. In 2009 Encana spun off its oil producing operations as
451:, where its CEO lived, and change its name to Ovintiv. To complete the restructuring, a new Canadian corporation called Ovintiv (corporation number 1185826-2) was created on 22 January 2020, which acquired all issued shares of Encana in a one-for-one
511:
published a lengthy investigation entitled "Who killed Encana?" In the piece, the authors interviewed the company's founders, Morgan and O'Brien, who disagreed with one another on the causes of the company's demise. Morgan laid the blame on the
256:
remained the company's majority shareholder with approximately an 87 per cent stake. PanCanadian's freehold leases, which it inherited from the railway, gave it the largest reserves of any Canadian petroleum company.
409:, 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
529:
reported that, despite the decline in shareholder equity from US$ 5.29 billion to $ 3.84 billion during his presidency, "Suttles was consistently among the highest paid executives in the Canadian oil patch."
291:
assumed the presidency and led the company for the duration of its existence. As a fully public company, the AEC grew substantially in the 1990s and became Canada's largest producer of natural gas.
304:
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.
217:. The new president streamlined the company's operations and shifted its focus to the United States. Suttles also oversaw the company's return to crude oil production via shale plays in the US.
1108:
370:'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.
1103:
488:
deal, 60 per cent of Encana’s production is in the U.S. and two of its key growth drivers are in the U.S. Plus CEO Suttles doesn’t live in Canada; he lives in Denver."
504:
24 per cent. He wrote of Suttles, "almost all of his major decisions have made the company more American; unfortunately for investors, none have made them wealthier."
695:
715:
247:
PanCanadian Petroleum was founded in 1971 through the merger of Canadian Pacific Oil and Gas and Central-Del Rio Oils. CPOG had been founded in 1958 by the
680:
474:
said that "risk is a critical factor when making capital-allocation decisions, and currently Canada is viewed as a high-risk region." In another article,
1078:
643:
201:
reputation as Canada's flagship energy company and an icon of Western Canadian business. In September 2005 it became Canada's largest corporation by
1093:
1083:
623:
1073:
779:
930:
320:
working for the Alberta Energy Company as a summer student in 1978 and had joined it as an employee in 1980 while studying engineering at the
1088:
287:. The government began in 1983 to reduce its equity in the company, and in April 1993 it sold off its remaining 36 per cent stake. In 1994,
913:
184:
was a Canadian independent petroleum company that existed from 2002 to 2020. The company, stylised as EnCana until 2010, was created by
1068:
1063:
340:, which held its oil business, representing one-third of its total production and reserves, and EnCana Corporation retaining the
279:
project. Initially, the company was half owned by the government and half owned by the public. The AEC also produced gas in the
758:
228:. On 14 January 2020 shareholders voted 90 per cent in favor of the move, and on 24 January the restructuring was completed.
213:, thus becoming exclusively a natural gas producer. Eresman resigned abruptly in early 2013 and was replaced by the American
378:
344:
business. Investors favoured the split as it gave them the flexibility to choose between investing in oil, gas, or both.
220:
In October 2019, Suttles, who had moved from Calgary to Denver in 2018, announced the company would undergo a corporate
1043:
Geoffrey Morgan, "High-flying Encana got makeover under retiring CEO Doug Suttles; New name, new focus, new location,"
827:
366:
acreage in Alberta. This was in line with the rules that "favor minority stakes over takeovers" since Prime Minister
64:
405:
In November 2013, the company cut its dividend, announced layoffs of 20% of its employees, closure of its office in
456:
429:
said "the answer to that is, absolutely not." In November 2018, Encana completed a US$ 5.5 billion deal to acquire
35:
740:
654:
1098:
347:
1004:
Tim Kiladze and Jeffrey Jones, "Who killed Encana? Inside the mess that crushed Canada's energy icon,"
497:
481:
358:
In December 2012, Encana announced a US$ 2.1 billion joint venture with state-owned, Beijing-based
316:
to become Canada's largest corporation by market capitalisation, with a value of $ 51.841 billion.
253:
248:
42:
833:
513:
422:
266:
197:
109:
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Olivia Pulsinelli and Greg Avery, "Encana to buy Texas company in multibillion-dollar deal,"
321:
242:
202:
189:
105:
520:
In the years after the company's restructuring, Suttles's compensation came under scrutiny
485:
430:
374:
351:
313:
167:
425:, and the Denver-Julesburg Basin (DJ Basin) in northeast Colorado, Wyoming, and Nebraska.
271:
The Alberta Energy Company was created in 1973 by the provincial government under premier
8:
572:
185:
644:"EnCana proceeds with plan to split into two distinct and independent energy companies"
414:
363:
333:
95:
476:
410:
447:
In October 2019, the company announced plans to move its operations from Canada to
172:
397:, two anonymous analysts thought it likely that Eresman had been asked to resign.
1017:
Scott Deveau, "Ovintiv, formerly Encana, faces Kimmeridge's proxy fight threat,"
899:
Ted Morton, "Another Canadian oil company flees Trudeau and Notley for the U.S."
469:
224:
that would see its residency moved to the United States and its name changed to
41:
The references used may be made clearer with a different or consistent style of
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Carrie Tait, "Interim Encana CEO says Randy Eresman was tired, so he retired,"
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720:
650:
418:
367:
337:
280:
272:
210:
46:
847:
Jeffrey Jones, "Encana CEO decamps for Denver, Calgary headquarters remains,"
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for Ovintiv shares. On 24 January, Ovintiv was imported to Delaware under the
389:, was announced as Encana's headquarters in 2006, prior to the Cenovus split.
1057:
501:
284:
221:
556:
406:
354:, Encana's former headquarters in Calgary, opened officially on 4 June 2013
214:
931:"Encana reveals Denver will be its new headquarters after leaving Calgary"
916:
716:"Encana, PetroChina form joint venture to develop natural gas in Alberta"
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386:
341:
288:
193:
978:"Encana moving HQ from Calgary to the U.S., changing name to Ovintiv,"
452:
435:
359:
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763:
744:
276:
700:
628:
382:
225:
157:
962:
Jason Kirby, "Canadian oil producer Encana decamps for the US,"
553:
Clayton Harvey Woitas (interim), 11 January 2013 – 11 June 2013
448:
562:
Michael Gerard McAllister, 10 September 2019 – 24 January 2020
84:
696:"Encana, PetroChina take $ 2.2 billion stab at joint venture"
484:, who said "I am not surprised at all by the move. Post the
362:
through which PetroChina received a 49.9% stake in Encana's
1030:
David Milstead, "The tale of Encana's $ 100-million man,"
467:
When the restructuring was announced in October 2019, the
1109:
Non-renewable resource companies disestablished in 2020
550:
Randall Kerry Eresman, 1 January 2006 – 11 January 2013
312:
On Wednesday, 14 September 2005, EnCana surpassed the
991:
Jeffrey Jones, "Encana's mess is of its own making,"
886:
Gwyn Morgan, "The tragic Americanization of Encana,"
507:
In April 2021, a year after Encana restructured, the
491:
A month after the announcement, Jeffrey Jones of the
1104:
Non-renewable resource companies established in 2002
914:"Encana to Establish Corporate Domicile in the U.S."
825:
Dawson, Chester; McKinnon, Judy (November 5, 2013).
578:
Clayton Harvey Woitas, 24 July 2013– 24 January 2020
780:"H&R REIT to develop EnCana's new headquarters"
826:
462:
1055:
828:"Encana to Cut Dividend, Jobs in Reorganization"
377:in Calgary, was completed in 2013, becoming the
873:Kevin Orland, "Encana founder blames Trudeau,"
824:
751:
275:as a mechanism for Albertans to invest in the
624:"EnCana wraps up spinoff of its oil business"
759:"The Bow tower officially opens in Calgary"
442:
681:"Cenovus spinoff gives investors a choice"
299:
83:
1079:Canadian companies disestablished in 2020
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678:
480:quoted Jennifer Rowland, an analyst with
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65:Learn how and when to remove this message
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1094:Energy companies disestablished in 2020
1084:Defunct oil and gas companies of Canada
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1074:Canadian companies established in 2002
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16:Canadian independent petroleum company
811:Dan Healing, "Eresman exits Encana,"
778:Parkinson, David (February 9, 2007).
735:
733:
731:
693:
679:Parkinson, David (December 9, 2009).
672:
1089:Energy companies established in 2002
771:
694:Jones, Jeffrey (December 13, 2012).
653:. September 10, 2009. Archived from
622:Haggett, Scott (November 30, 2009).
294:
18:
13:
741:"Encana laying off 20% of workers"
728:
608:Dave Ebner, "EnCana CEO resigns,"
559:, 11 June 2013 – 10 September 2019
373:Encana and Cenovus' headquarters,
14:
1120:
1069:2020 disestablishments in Alberta
547:, 5 April 2002 – 31 December 2005
500:had increased 10 percent and in
457:Delaware General Corporation Law
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463:Assessments of Encana's demise
332:In 2009, EnCana completed the
1:
595:"EnCana is No. 1 in Canada,"
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575:, 5 April 2002 – 24 July 2013
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538:
459:, thus concluding the move.
7:
421:in New Mexico, Louisiana's
10:
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498:Canadian Natural Resources
379:tallest building in Canada
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163:
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134:24 January 2020
130:
115:
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91:
82:
903:(28 November 2018), A12.
890:(21 November 2018), FP9.
599:(15 September 2005), D1.
443:Restructuring as Ovintiv
385:. The project, owned by
254:Canadian Pacific Limited
249:Canadian Pacific Railway
862:Denver Business Journal
834:The Wall Street Journal
423:Tuscaloosa Marine Shale
300:Creation of the company
1021:(15 January 2021), B3.
995:(1 November 2019), B1.
877:(6 November 2018), B3.
815:(12 January 2013), C1.
401:Suttles era, 2013–2020
355:
328:Eresman era, 2006–2013
267:Alberta Energy Company
261:Alberta Energy Company
198:Alberta Energy Company
119:5 April 2002
110:Alberta Energy Company
567:Chairman of the Board
557:Douglas James Suttles
350:
322:University of Wyoming
308:Morgan era, 2002–2005
243:PanCanadian Petroleum
237:PanCanadian Petroleum
232:Predecessor companies
203:market capitalisation
190:PanCanadian Petroleum
106:PanCanadian Petroleum
1047:(17 June 2021), FP6.
1034:(6 April 2022), B10.
982:, (31 October 2019).
851:(17 March 2018), B2.
724:. December 13, 2012.
431:Newfield Exploration
314:Royal Bank of Canada
966:, (31 October 2019)
939:. November 7, 2019.
919:. October 31, 2019.
747:. November 5, 2013.
660:on January 19, 2022
573:David Peter O'Brien
79:
1099:History of Alberta
951:2019 Annual Report
864:(7 November 2018).
802:(15 January 2013).
612:(25 October 2005).
415:Duvernay Formation
364:Duvernay Formation
356:
334:corporate spin-off
215:Douglas J. Suttles
205:for a brief time.
182:Encana Corporation
78:Encana Corporation
77:
980:Canadian Business
649:(Press release).
477:Canadian Business
411:Montney Formation
295:History of Encana
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1008:(23 April 2021).
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368:Stephen Harper
338:Cenovus Energy
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55:December 2023
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32:This article
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662:. Retrieved
655:the original
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482:Edward Jones
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407:Plano, Texas
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387:H&R REIT
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164:Headquarters
149:Restructured
61:
52:
33:
917:PR Newswire
545:Gwyn Morgan
381:outside of
342:natural gas
289:Gwyn Morgan
194:Gwyn Morgan
102:Predecessor
1058:Categories
583:References
534:Leadership
453:stock swap
436:Ted Morton
360:PetroChina
138:2020-01-24
123:2002-04-05
47:footnoting
949:Ovintiv,
539:President
522:vis-à-vis
154:Successor
96:Petroleum
936:CBC News
764:CBC News
745:CBC News
486:Newfield
413:and the
277:Syncrude
92:Industry
43:citation
701:Reuters
664:July 5,
629:Reuters
514:Liberal
383:Toronto
375:The Bow
352:The Bow
283:and in
226:Ovintiv
211:Cenovus
196:of the
168:The Bow
158:Ovintiv
136: (
131:Defunct
121: (
116:Founded
502:Suncor
449:Denver
658:(PDF)
647:(PDF)
953:, 8.
666:2023
192:and
146:Fate
45:and
336:of
188:of
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730:^
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170:,
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140:)
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