Barclays PLC upgraded shares of Encana Corp. (NYSE:ECA) from an equal weight rating to an overweight rating in a report issued on Tuesday. They currently have $14.00 price objective on the stock, up from their prior price objective of $10.00.
“core four” assets in the Permian, Eagle Ford, Montney and Duvernay.”Use of Encana’s 2018 capital spending and production indications lead us to infer a very strong return in 2018 on new spending of circa 30 percent on the corporate level (the 2017 inference is muddled by 2016 M&A),” analyst Thomas Driscoll wrote in a note.This inferred return is 18 percent better than the Barclays’ average return for peers. The analyst expects top-tier delivery from the “core four” basins and raised 2017 and 2018 liquids estimates by 6 percent and 20 percent, respectively.Related Link: Russia Wants To Freeze Oil Output … At Its Historical High LevelEncana’s preliminary 2017 budget of $1.4 billion–$1.8 billion is 7 percent above Barclays’ previous estimate. Encana expects to grow liquids volumes by 15–20 percent per year. Looking ForwardDriscoll forecast total volume growth to outpace expansion in market capital deployed by 12 percent through 2018, compared to 5 percent from peers. Assuming flat $55 crude and $3 gas, Encana expects to grow total production by 60 percent by 2021, as it doubles core four asset volumes and grows liquids by 15–20 percent CAGR. Further, Encana continues to reduce drilling and completion (D&C) costs in its core four assets and continues to reduce lease operating costs.Encana, which has ample liquidity and financial flexibility, expects to grow cash flow by 300 percent over the next five years, assuming flat $55 crude and $3 gas prices. “We are currently modeling through 2018 and are expecting 145 percent cash flow growth if we were to use the same commodity price assumptions,,” the firm’s analyst wrote.
ECA has been the topic of several other reports. Deutsche Bank AG raised their price objective on shares of Encana Corp. from $10.00 to $11.00 and gave the company a buy rating in a research report on Tuesday, June 14th. Scotiabank downgraded shares of Encana Corp. from a sector perform rating to an underperform rating in a research report on Tuesday, September 20th. Zacks Investment Research downgraded shares of Encana Corp. from a strong-buy rating to a hold rating in a research report on Wednesday, September 21st. CIBC upgraded shares of Encana Corp. to a sector perform rating and raised their price objective for the company from $8.00 to $12.00 in a research report on Friday, September 30th. Finally, RBC Capital Markets restated a sector perform rating and set a $10.00 price objective (up from $9.00) on shares of Encana Corp. in a research report on Monday, September 12th. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and ten have given a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $11.88.
Encana Corp. (NYSE:ECA) traded down 0.27% during mid-day trading on Tuesday, reaching $11.05. 5,792,231 shares of the company’s stock traded hands. The stock has a 50-day moving average price of $9.97 and a 200-day moving average price of $8.22. The stock’s market capitalization is $9.39 billion. Encana Corp. has a 12-month low of $3.00 and a 12-month high of $11.31.
Encana Corp. (NYSE:ECA) last announced its quarterly earnings data on Thursday, July 21st. The company reported $0.10 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.09) by $0.19. Encana Corp. had a negative net margin of 81.73% and a positive return on equity of 0.79%. During the same quarter in the prior year, the business posted ($0.20) EPS. Equities research analysts expect that Encana Corp. will post ($0.04) EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Investors of record on Thursday, September 15th were paid a dividend of $0.015 per share. The ex-dividend date of this dividend was Tuesday, September 13th. This represents a $0.06 annualized dividend and a dividend yield of 0.54%. Encana Corp.’s dividend payout ratio (DPR) is presently -1.79%.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Eqis Capital Management Inc. purchased a new position in Encana Corp. during the third quarter valued at approximately $171,000. BB&T Securities LLC raised its position in Encana Corp. by 22.6% in the first quarter. BB&T Securities LLC now owns 17,754 shares of the company’s stock valued at $108,000 after buying an additional 3,270 shares during the period. Carnick & Kubik Group LLC purchased a new position in Encana Corp. during the second quarter valued at approximately $154,000. Stevens Capital Management LP purchased a new position in Encana Corp. during the second quarter valued at approximately $165,000. Finally, Loomis Sayles & Co. L P raised its position in Encana Corp. by 39.6% in the first quarter. Loomis Sayles & Co. L P now owns 21,274 shares of the company’s stock valued at $130,000 after buying an additional 6,036 shares during the period. Hedge funds and other institutional investors own 57.44% of the company’s stock.
Encana Corp. Company Profile
Encana Corp is a Canada-based energy producer, which is engaged in the business of exploration, development, production and marketing of natural gas, oil and natural gas liquids (NGLs). The Company’s operations also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America.
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