Fund Management added to its position in Encana Common (ECA, Financial) following the company's announcement of a C$2.2 billion joint venture with PetroChina (PBR, Financial). In this transaction, Encana sold a 49.9% non-operating stake in its undeveloped Duvernay land holdings in Alberta in exchange for C$1.2 billion in cash up front and C$1 billion in the form of a drilling carry that will result in PetroChina funding 75% of the development costs over the next four years. As a result, Encana ended the year with a very strong financial position that includes more than C$3 billion in cash.
From Third Avenue Management's first quarter commentary.
From Third Avenue Management's first quarter commentary.
