Natural Gas Futures Hedged by Encana

http://blogs.reuters.com/james-pethokoukis/

* Says hedged production of about 1.39 bln cubic feet/day

* Says hedged at average price of $6.21/Mcf

* Hedging expected to increase certainty in cash flow

June 15 (Reuters) - EnCana Corp (ECA.TO), Canada's biggest energy company, established fixed price hedges on about 35 percent of its expected natural gas production as part of its extended risk management program for 2010.

EnCana said it had hedged about 1.4 billion cubic feet of natural gas per day at an average price of $6.21 per thousand cubic feet (Mcf) for the 2010 gas year, which runs from Nov. 1, 2009 to Oct. 31, 2010.

"Our hedging program increases certainty in cash flow and helps ensure that we meet our capital investment and dividend requirements. It also brings greater certainty to the economics of our projects," Chief Executive Officer Randy Eresman said in a statement.

At an average price of $6/Mcf, the company expects to earn an after-tax rate of return on gas projects in excess of 20 percent, Eresman added.

Shares of the Alberta-based company closed at C$61.99 Friday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Himani Sarkar)