Dallas, Texas 10/16/2013 (Financialstrend) – Encana Corporation (USA) (NYSE:ECA) is a Canada based $12.9 billion integrated Oil and gas producer. Over the past few quarters long-term investors in this stock had seen their share holdings, market value dip by close to 17% over a 12 month period. With the stock under pressure to perform at browsers, downgrades form rating agencies started to further drive down investor confidence in the stock. In order to stem the rot and reset its growth engine, the oil and gas major initiated a co-ordinated revamp of its top management. This top level reorganization announced on October 1 seems like a full-fledged corrective action to bring in new blood into key decision making roles.
In a major structural change in the way the oil firm operates and aligns its business the company announced the appointment of a new chief operating officer in the form of Mike McAllister. The COO will have oversight on the operations of both Canada and the U.S. divisions. Analysts believe that this integration of operations between ECA’s two biggest assets will help the company derive synergies and benefit from economies of scale. In addition to new COO, Doug Suttles who himself is relatively new to his role of Chief Executive Officer and ECA has overseen a whole sale change in top management personal over the past few weeks. At last count close to five long entrenched executives including Jeff Wohahn who headed the U.S. operations of the firm as president have departed the company.
Sending out a strong message to his 4100 strong employees and ECA competition, Doug Suttles has commented that, “The new organizational structure aligns with the core competencies needed to get Encana back to winning. These include resource identification, operational excellence, market fundamentals, and capital allocation combined with balance sheet strength.” Encana shares have been trading at $17.63 per share as of close of business on October 15.