Encana investors eye dividend cut amid revamp

|About: Encana Corporation (ECA)|By:, SA News Editor

Encana (ECA), which has been selling assets after losing half its value since 2010, is being urged by investors to cut its dividend and focus on profitable projects in the U.S. and Canada.

“Encana has some of the best real estate on the block when it comes to natural gas resources and possesses solid execution capability," an RBC Capital analyst says; reducing the annual dividend by as much as 50% to $0.40/share is warranted considering the payout is now far above competitors.

It’s not an ideal market for selling assets, but ECA needs to get the ball rolling to fund more profitable operations, a FirstEnergy analyst says, adding that the company has properties in the Deep Panuke basin off the coast of Nova Scotia and leases in the U.S. Rocky Mountain states it could sell.