Updating Encana Corp., Enbridge Inc., and Cenovus Energy

Article Excerpt

ENCANA CORP. $21.00 (Toronto symbol ECA; Shares outstanding: 741.0 million; Market cap: $15.6 billion; TSINetwork Rating: Average; Dividend yield: 1.4%; www.encana.com) continues to sell less important natural gas properties as it shifts toward long-lasting projects that mainly produce oil and natural gas liquids, such as butane and propane. The company recently agreed to sell most of its natural gas properties in central Alberta’s Clearwater region for $605 million (Canadian). That’s equal to 83% of its second-quarter cash flow of $656 million U.S., or $0.89 U.S. a share. The company expects to complete the sale in the first quarter of 2015. The cash will help Encana pay for Texas-based oil producer Athlon Energy (New York symbol ATHL), which it recently agreed to buy for $7.1 billion U.S., including Athlon’s $1.15 billion U.S. of debt. Encana should complete this purchase by the end of 2014. Encana is a buy. ENBRIDGE INC. $52.04 (Toronto symbol ENB; Shares outstanding: 846.2 million; Market cap: $44.0…