Big potential for growth at EnCana

Article Excerpt

EnCana gets most of its natural gas from unconventional reserves. Accessing these reserves is complicated, but they have long lives and stable output. The company already has proven reserves to last 12 years or more. But its reserves will expand as it develops its 15.6 million acres of landholdings. EnCana’s cash flow depends on gas prices, which have been depressed due to higher gas production and the weak economy. However, the long-term outlook is positive. ENCANA CORP $35.13 (Toronto symbol ECA; Shares outstanding: 750.4 million; Market cap: $26.4 billion; SI Rating: Average; Dividend yield: 2.3%) owns natural-gas properties in Alberta, B.C., Colorado, Wyoming and Texas that account for 4% of North America’s daily production. These holdings include promising shale-gas properties in the Haynesville region in the U.S. southeast and B.C.’s Horn River area. Lower gas prices pushed down EnCana’s 2009 earnings by 32.2%, to $1.8 billion, or $2.35 a share. In 2008, it earned $2.6 billion, or $3.47 a share. (All amounts…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.