Bloomberg: Encana CEO surprises with makeover in one year

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

Encana (ECA) shares have climbed by a third since Doug Settles became CEO in June, and his makeover of the company is proceeding faster than planned, Bloomberg says in a profile of Canada's largest gas producer.

Settles "took the hard medicine up front” - including plans to fire ~20% of the workforce and lower the dividend 35% to cut costs and boost profits - and the company is now on a "good path,” says TD analyst Craig Bethune.

“The company’s new strategy is taking shape,” says RBC's Matthew Kolodzie, pointing to the acquisition of Texas shale lands from Freeport McMoRan that will double ECA's crude output and immediately deliver cash, as well as the repayment of maturing bonds earlier this year.

ECA still has to prove it can drill to expand production like its U.S. peer EOG Resources, which transitioned away from gas earlier, Bethune says.