Encana: What To Expect In 2016
Richard Zeits • 63 Comments
Richard Zeits • 63 Comments
Encana Corp.: What Assets Are Next In Line To Be Sold?
Richard Zeits • 20 Comments
Richard Zeits • 20 Comments
Tue, Nov. 15, 10:49 AM
- West Texas' Permian Basin now holds nearly as many active oil rigs as the rest of the U.S. combined, including those offshore, the U.S. Energy Information Administration reports.
- The rig count has been rising since this summer, but the Permian began seeing rigs increase earlier than the U.S. as a whole, and is adding rigs more quickly; of the ~450 total U.S. rigs, the Permian now accounts for ~220.
- Permian production has reached 2M bbl/day of oil, while south Texas’ Eagle Ford and North Dakota’s Bakken have fallen to below 1M bbl/day.
- Top Permain producers include CVX, OXY, APA, PXD, CXO, DVN, EOG, MRO, FANG, XOM, ECA, RSPP, SM, EGN, PE, AREX, GPOR, XEC, LPI, CPE, ESTE, WPX, PDCE
Fri, Nov. 4, 12:58 PM
- Encana (ECA +1.5%) is upgraded to Outperform from Sector Perform with a $13 price target at RBC Capital, which says ECA's better than expected Q3 results reinforce its confidence in the company's ability to deliver high margin oil and condensate growth during 2016-21.
- RBC says ECA’s five-year plan suggests it will grow production by 60%, mostly due to activity in the Permian and Montney plays, adding that the company also wants to double margins in its upstream business and improve cash flow by 300%.
- RBC believes ECA "has some of the best real estate on the block when it comes to North American resource plays and possesses solid execution capability."
Fri, Nov. 4, 7:58 AM
- TransCanada (NYSE:TRP) and shippers on the Canadian gas mainline system are closer to reaching an agreement on a new toll structure, according to the CEOs of Canadian Natural Resources (NYSE:CNQ) and Encana (NYSE:ECA), the country's two biggest natural gas producers.
- TRP has launched an open season to gauge interest in new proposed tolls on the system, offering shippers rates as low as C$0.75 per gigajoule if they sign up for a 10-year commitment; the rate is lower than a toll of C$0.82 per gigajoule originally proposed by TRP, which both CNQ and ECA said was too high given the length of the contract.
Thu, Nov. 3, 6:02 AM
Wed, Nov. 2, 5:30 PM
- AAC, AAON, AAWW, ACIW, ACRE, ACTA, AFSI, AGIO, AGU, AKRX, AMAG, AMCX, AMRN, ANIP, ANSS, APA, ARCB, ARW, AVP, BCE, BDX, BLL, CCC, CCOI, CHD, CHK, CHTR, CI, CLDT, CNSL, COMM, CPK, CRIS, CRZO, CYBR, DDD, DNR, DW, ECA, EFOI, ENB, ENOC, EVA, FCPT, FI, FIG, FMSA, GEL, GEO, GIL, GLOG, GOGO, H, HAR, HFC, HHS, HII, HMHC, HRC, HSC, IBP, ICPT, INSY, IPCC, IQNT, IRWD, IT, KOP, LAMR, LBY, LDOS, LFUS, LINC, LNG, LXP, MFA, MGA, MITK, MITL, MPEL, MPG, MPW, MSGN, NERV, NGS, NNN, NXTM, OGE, ONCE, ONDK, PBH, PDCE, PGTI, PNW, PRFT, PWR, RDUS, RFP, RGEN, ROLL, RWLK, SFM, SGM, SHLX, SMG, SNSS, SPAR, SPGI, SQBG, STFC, STOR, TDY, TGI, THS, TICC, TIME, TK, TNK, TOO, TVPT, TWI, TX, UNT, USCR, VGR, VWR, WILN, WPC, WRLD, ZEUS
Fri, Oct. 21, 5:36 PM
Tue, Oct. 11, 11:51 AM
- Encana (ECA -1.2%) is upgraded to Overweight from Equal Weight with a $14 price target, raised from $10, at Barclays, citing the company's strong execution and quality "core four" assets in the Permian, Eagle Ford, Montney and Duvernay.
- "Use of Encana's 2018 capital spending and production indications lead us to infer a very strong return in 2018 on new spending of ~30% on the corporate level," Barclays' Tom Driscoll writes.
- Driscoll forecasts ECA's total volume growth to outpace expansion in market capital deployed by 12% through 2018, vs. 5% from peers; assuming flat $55 crude and $3 gas, ECA foresees 60% production growth by 2021, as it doubles core four asset volumes and grows liquids by 15%-20% compound annual growth rate.
Thu, Oct. 6, 11:37 AM
- Encana (ECA -1.3%) is upgraded to Neutral from Underperform with an $11 price target at Macquarie following the company's investor day, where it forecast higher production growth and lower costs.
- The firm says growth potential in ECA's Permian and Montney production sites looks much improved now that the company has raised ~$1.1B in an equity issuance last month.
- ECA has more than doubled YTD, and Macquarie says the stock could rally further as investors increasingly look ahead to 2018.
Wed, Oct. 5, 10:07 AM
- Encana (ECA +0.9%) opens higher ahead of its investor day, where management will outline the company's five-year growth plan and update 2016 guidance to reflect a further reduction in production, mineral and other taxes, operating expense and transportation and processing costs.
- In its five-year growth plan, ECA sees a potential 300% increase in cash flow, a doubling of corporate margins, a 60% increase in total production and achieving a balanced production mix of oil and liquids and natural gas.
- ECA says it now projects 2016 total production of 340K-360K boe/day, capital investment of C$1.4B-C$1.8B vs. prior guidance of C$1.1B-C$1.2B, and upstream operating costs of $3.96-$4.10/boe of production vs. an earlier forecast for $4.15-$4.35/boe.
Tue, Oct. 4, 5:56 PM
- Nucor (NYSE:NUE) says it is ending a four-year deal with Encana (NYSE:ECA) to jointly develop natural gas wells in Colorado, and instead purchases 49% of ECA’s natural gas rights in the region.
- NUE says the restructuring of its gas hedging operation will ensure access to long-term supplies of natural gas, which it needs to produce direct reduced iron in plants in Louisiana and Trinidad and to run its steel mills.
- Under the new deal, NUE is no longer required to participate in a minimum amount of well drilling annually with ECA.
- NUE also sells its 50% stake in Hunter Ridge Energy Services to ECA for an undisclosed sum; the two companies formed Hunter Ridge in 2012 to perform gas and water gathering operations associated with their joint wells.
Fri, Sep. 30, 4:42 PM
- Shippers on TransCanada's (NYSE:TRP) Mainline natural gas pipeline system are not signing up to a 42% cut on 10-year contracts because they think the toll is still too high for such a long-term commitment, Reuters reports.
- TRP is offering tolls as low as C$0.82/gigajoule on its western Canadian Mainline vs. the current ~C$1.41 shipping price to go from Alberta and British Columbia to markets in Ontario, but shippers remain unconvinced by the deal on offer and are asking for a lower rate, according to the report.
- Mainline shippers include Canadian Natural Resources (NYSE:CNQ) and Encana (NYSE:ECA); in late August, RBC analysts noted that CNQ management regarded the rate as "too high to provide the comfort needed in connection with a longer-term agreement."
Fri, Sep. 30, 2:40 PM
- Encana (ECA +3.3%) is upgraded to Buy from Neutral with a $13 price target, raised from $10, at Citigroup ahead of the company's Oct. 5 analyst day.
- The firm says the overhang of an equity offering is now behind the company and likely enables it to maintain its investment grade credit rating.
- Citi sees ECA's total organic production rising at a ~12% compound annual growth rate during 2016-21, with organic oil/liquid volumes growing at a ~20% CAGR, and projects a ~88% increase in CF/DAS in 2016 vs. a 57% average increase for oil-leveraged large-cap E&P peers.
Fri, Sep. 23, 5:35 PM
Tue, Sep. 20, 9:19 AM
Tue, Sep. 20, 9:17 AM
- Encana (NYSE:ECA) prices its 107M-share public offering at $9.35 per share, which would bring in $1B in gross proceeds; the over-allotment would attract anolther $150M.
- The stock closed yesterday at $9.86 on the NYSE; the Toronto-listed shares closed at C$13.03.
- ECA plans to use half the proceeds to help fund its 2017 capital spending, much of which will be in the Permian shale oil play in Texas, with the rest used to reduce debt, which has hovered slightly above industry norms.
- ECA -6% premarket.
Mon, Sep. 19, 5:38 PM