Summary
The Board of Directors of EnCana has unanimously approved a proposal to split EnCana into two highly focused energy companies – one a natural gas company with an outstanding portfolio of early life, North American, natural gas resource plays and the other a fully integrated oil company with industry-leading in-situ oilsands properties and top-performing refineries, as well as an underlying foundation of reliable oil and gas resource plays. This transaction is designed to enhance long-term value for EnCana shareholders by creating two highly sustainable, independent entities each with an ability to pursue and achieve greater success by employing operational strategies best suited to their unique assets and business plans.

The natural gas company (GasCo) includes the Canadian Foothills and USA divisions, and the integrated oil company (IOCo) includes the Canadian Plains and Integrated Oil divisions.

Naming for new entities
GasCo will retain the EnCana name following the successful completion of the transaction. The process to create a new name for IOCo is underway and is anticipated to be completed later this year.

Benefits of the transaction
This transaction is aimed at continuing to build on current success by offering a number of significant benefits which are expected to include:

• Two pure-play companies
• Mandate to pursue unique strategies
• Expanded growth opportunities
• Two high-potential investments
• Experienced leadership
• Sharpened focus, greater value transparency
• Better valuation