Encana could face big penalties, analyst warns, Gas producer’s stock rises despite admission of U.S. investigation by Dan Healing, September 6, 2012, The Calgary Herald
In a note to investors sent out overnight, CIBC World Markets analyst Andrew Potter warned that Encana’s contention in the release that an 11-week internal investigation had shown the charges were groundless doesn’t mean there’s no risk. “While the self-declared innocence of the board can be viewed as a slight positive, this does not have any impact on the external investigation currently being conducted,” he reminded. “These investigations still pose risk, threatening meaningful external penalties if substantiated.”
Potter added that the Michigan allegations may raise questions from authorities in other jurisdictions where Encana operates. [Emphasis added]