BG Group and Encana take natural gas hit

By Noah Brenner

 02 August 2012 22:59 GMT

Giants BG Group and Encana were forced to write down the value of their natural gas assets in North America in what could be a growing trend among major players that invested heavily in acreage during the height of the shale gas boom.

Calgary-based Encana took a $1.5 billion loss for the quarter ­after it reporting a $1.7 billion write-down of its North American assets — $1.1 billion in the US and $600 million in Canada. Encana chief executive Randy Eresman warned that further write-downs could come later in the year, but assured investors that they would not be large enough to impact the company’s credit base.

BG Group reported a $2 billion profit despite taking a $1.3 billion write-down on its US holdings, including stakes in the Marcellus and Haynesville dry gas plays.

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