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Doug Suttles of EnCana speaks to the media after the company announced him as the new president and CEO in Calgary, Alberta, in this June 11, 2013 file photo. Encana Corp, Canada's largest natural gas producer, said on November 5, 2013, it will cut about 20 percent of its workforce, slash its dividend, and focus future spending on just five regions rich in oil and gas liquids as it looks to move away from low-value natural gas production.
Doug Suttles of EnCana speaks to the media after the company announced him as the new president and CEO in Calgary, Alberta, in this June 11, 2013 file photo. Encana Corp, Canada's largest natural gas producer, said on November 5, 2013, it will cut about 20 percent of its workforce, slash its dividend, and focus future spending on just five regions rich in oil and gas liquids as it looks to move away from low-value natural gas production.
(Todd Korol/Reuters)

Encana spins off huge swath of land for development

Encana Corp. spun off an oil sands producer four years ago and has been haunted by the decision ever since. Investors are wagering it has better results with a new plan to spin off a cash producer – one that could spawn a host of new junior energy companies.

As part of a series of tough measures announced on Tuesday aimed at improving performance, Encana CEO Doug Suttles laid out plans to spin off a new entity from its Clearwater Royalty business, which controls a spread of freehold lands in Alberta that is only slightly smaller than the state of New Jersey. The unit will take over the task of collecting royalties and fees.