The Calgary, Alberta, natural gas producer plans to repurchase up to 80.2 million common shares by year-end, funding the program through cash flow and proceeds from potential dispositions. So far this year, EnCana has repurchased 61.1 million common shares at an average price of $48.67 each.
"We plan to complete the purchase of 10% of our outstanding shares by year-end 2006, up from the 7.1 percent purchased to date, and to target additional share purchases in 2007 with proceeds from our planned divestitures. In addition, with a significant hedging program in place, we expect substantial free cash flow would be generated that could be used for additional share purchases, debt reduction or increased dividends," said CEO Randy Eresman.
For 2007, more than half of EnCana's expected gas and oil sales are hedged with downside price protection