UPDATE 3-Encana reviews dry gas assets, signals big changes

Thu Sep 12, 2013 2:37pm EDT
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* Says "significant changes" needed to operations

* Says has more dry gas assets than it can manage "optimally"

* Looks to refocus portfolio of producing properties

* Shares rise 4.6 pct

By Scott Haggett and Sayantani Ghosh

Sept 12 (Reuters) - Encana Corp, Canada's largest gas producer, on Thursday signaled a potential sale of dry natural gas assets as it focuses on more-lucrative oil and gas liquids and cutting the number of properties it owns.

Doug Suttles, the former BP Plc executive appointed as Encana's chief executive in June and charged with righting the company after a series of strategic missteps, said the company will push to cut producing properties and revamp its organization as it looks to weather natural gas prices he expects to remain low for years.

"Our existing organization, both its structure and its size, is aligned with the past and not the future," Suttles said at a New York investment conference. "It's built around a bigger capital program and higher cash flow than we have today. We need to get that realigned.

Encana has been hurt by low natural gas prices for much of last year, leading the company to write down the value of its gas assets by about $2.89 billion.   Continued...