Two big energy producers: 1 buy, 1 hold

Article Excerpt

ENCANA CORP. $13.46 (Toronto symbol ECA; Shares outstanding: 973.1 million; Market cap: $13.5 billion; TSINetwork Rating: Average; Dividend yield: 0.6%; www. encana.com) has four key properties: Montney (B.C.), Duvernay (Alberta), and Eagle Ford and Permian (both in Texas). In addition to natural gas, these fields produce large amounts of oil and natural gas liquids such as propane and butane. Encana produced 335,200 barrels a day (54% gas, 46% oil) in the quarter ended December 31, 2017. That’s up 4.3%, from 321,500 barrels a year earlier. The company’s cash flow in the quarter rose 47.0%, to $444 million from $302 million a year earlier (all amounts except share price and market cap in U.S. dollars). Due to more shares outstanding, cash flow per share rose 31.4%, to $0.46 from $0.35. The increases came from higher production and oil prices. Encana continues to benefit from its plan to improve efficiency and cut operating costs. For 2018, it expects to spend $1.8 billion U.S. on exploration…

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