Encana strikes $1.8B deal with TPG Capital

TPG Capital is acquiring Wyoming land rich with natural gas from Encana for $1.8 billion.

Since taking over the Canadian company last spring as CEO, the one-time BP executive Doug Suttles has honed Encana's focus on five areas in North America, as opposed to the dozens it had been exploring.

Encana has cut jobs, slashed its dividend and closed an office in a bid to become more efficient.

Ultimately, Encana Corp. plans to spin off a portion of its Alberta assets into a new public company.

The deal announced Monday involves properties in the Jonah field located in Sublette County, Wyo. It includes productive area of about 24,000 acres and over 1,500 active wells, as well as more than 100,000 undeveloped acres adjacent to Jonah, according to the company.

An affiliate of TPG, which is a private equity company, plans to retain the employees, as well as an office near Pinedale, Wyo. It also plans to open an office in Denver in relation to the deal.

The transaction is expected to close in the second quarter of 2014.