The Successful Investor Hotline – Friday, December 19, 2014

Article Excerpt

PLEASE NOTE: This is our last Hotline for 2014. Our next Hotline will go out on Friday, January 9, 2015. ENCANA CORP., $16.41, Toronto symbol ECA, plans to invest more in its shale oil properties in 2015, even though lower oil prices will cut its cash flow. In 2015, the company’s capital expenditures will be between $2.7 billion and $2.9 billion (all amounts expect share price in U.S. dollars), up from $2.6 billion this year. About 80% of this spending will go to four high-margin properties: Montney (British Columbia), Duvernay (Alberta) and Eagle Ford and Permian (Texas). These investments will increase Encana’s 2015 oil and natural gas liquids production by 70%. As a result, oil and liquids will account for over 60% of its overall production in 2015, and 75% of its cash flow. The company expects lower oil prices to cut its cash flow from $3.25 billion this year to between $2.5 billion and $2.7 billion in 2015. That’s less than its…