Encana’s (ECA -8.2%) planned $600M capital spending increase will take its 2012 capex to $3.5B,...

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

Encana’s (ECA -8.2%) planned $600M capital spending increase will take its 2012 capex to $3.5B, which worries investors since ECA’s forecast 2012 cash flow also is $3.5B and its 2013 capex forecast has been raised to $4B-$5B on cash flow of $2.5B-$3.5B. That’s a big bet, and natural gas prices almost certainly must rise for the bet to pay off.