Both will benefit from this sale

Article Excerpt

ENCANA CORP. $19.59 (Toronto symbol ECA; Shares outstanding: 737.6 million; Market cap: $14.4 billion; TSINetwork Rating: Average; Dividend yield: 4.1%; www.encana.com) is selling two plants in the Cutbank Ridge area of northeastern B.C. to VERESEN $15.31 (Toronto symbol VSN; Shares outstanding: 169.8 million; Market cap: $2.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.5%). Veresen owns and operates energy pipelines and processing plants across North America. These plants process natural gas from nearby wells. The sale also includes 370 kilometres of pipelines. Veresen will pay Encana $920 million (Canadian) when the deal closes in early 2012. Including this deal, Encana sold or agreed to sell $3.5 billion U.S. of non-essential assets in 2011. The sales are part of its plan to focus on its main gas-producing properties in Alberta, B.C., Wyoming, Michigan, Colorado and Louisiana. Encana Corp. and Veresen are still buys. buys…