Today one of linchpins of Canadian energy, EnCana, announced it is changing its name, has a new logo and is moving its ‘domicile’ (legal/trading head office) to the United States.
Of course, they claim that there will be no job losses in Canada but that is clearly not the way the real world works. Former employees of Nova, Nexen and Devon can tell you first hand the effect corporate mergers, acquisitions and relocations actually have on staff.
Several analysts are suggesting EnCana/Ovintiv will be fully relocated to the United States within 5 years. While we have no insight into what EnCana/Ovintiv management is planning, we would bet some serious money that Calgary will be relegated to little more than a branch office within 3 years.
Government interference, the lack of pipeline capacity and the inability to raise capital in Canada likely make this the right move for EnCana shareholders but it is still shocking and sad.
Is it just us, or does the word Ovintiv sound like some made up pharmaceutical brand:
Ovintiv: The Cure for Canadian Pipelines
Ovintiv: The Cure for Canadian Government Interference
Ovintiv: The Cure for the Inability to Raise Capital in Canada
Ovintiv: The Cure for Canadian Heartburn
WARNING: May cause headaches, anxiety and loss of employment
Ask your doctor if Ovintiv is right for you. Safety Tip: it isn’t