Encana teams up with Pembina

Article Excerpt

ENCANA CORP. $21.05 (Toronto symbol ECA; Shares outstanding: 737.6 million; Market cap: $15.5 billion; TSINetwork Rating: Average; Dividend yield: 3.7%; www.encana.com) aims to triple its production of natural gas liquids (NGLs), such as propane and butane. To that end, the company has entered into a new long-term processing deal with PEMBINA PIPELINE $27.17 (Toronto symbol PPL; Shares outstanding: 165.7 million; Market cap: $4.5 billion; TSINetwork Rating: Extra Risk; Divd. yield: 5.7%; www.pembina.com). Pembina will expand its Resthaven liquids extraction plant in Alberta to extract NGLs from Encana’s gas. Prices for NGLs have surged recently. Taking advantage of rising NGL prices will help Encana offset lower prices for regular natural gas. Encana is a buy. Pembina Pipeline Corp. is also a buy. buy…