Encana Corporation(ECA)- NYSE
  • Wed, Feb. 24, 12:48 PM
    | Wed, Feb. 24, 12:48 PM | 6 Comments
  • Wed, Feb. 24, 8:43 AM
    • Encana (NYSE:ECA) +4.9% premarket after reporting better than expected Q4 earnings and cost-saving measures including a ~20% workforce reduction and a cut in the quarterly dividend to $0.015/share from $0.07.
    • ECA says it is targeting cost savings of ~$550M from 2015 levels, including $50M in overhead costs partly related to the planned job cuts; ECA says the latest job cuts will bring total workforce reduction to more than 50% since 2013.
    • ECA says it plans $900M-$1B in capex this year, 55% lower than 2015 and well below the $1.5B-$1.7B it estimated in December, but the reduced capex is seen having minimal impact on 2016 production, which is expected at 340K-360K boe/day; FY 2015 production totaled 405.9K boe/day.
    • ECA also says ~95% of 2016 capital will be invested in the core four assets - the Eagle Ford and Permian basins in Texas and the Duvernay and Montney basins in western Canada - and will continue to optimize production from its base assets and minimize decline rates.
    | Wed, Feb. 24, 8:43 AM | 5 Comments
  • Wed, Feb. 24, 6:17 AM
    • Encana (NYSE:ECA): Q4 EPS of $0.13 beats by $0.12.
    | Wed, Feb. 24, 6:17 AM | 20 Comments
  • Tue, Feb. 23, 5:30 PM
    | Tue, Feb. 23, 5:30 PM | 6 Comments
  • Mon, Feb. 22, 3:21 PM
    • Bernstein analyst Bob Brackett tags Chesapeake Energy (CHK +17%) and Encana (ECA +5.6%) as the E&P stocks that could cause the most pain for investors going forward.
    • CHK already has suffered plenty, but Brackett writes thinks it has the highest risk of bankruptcy in his coverage universe, and the current stock price "essentially shuts it out of the equity market,” while ECA is most likely to issue equity and see its credit rating cut to junk status.
    • Meanwhile, Brackett thinks EOG Resources (EOG +3.8%) is the safest play due largely to a returns-oriented culture and relative conservatism in the early part of this cycle, while ConocoPhillips (COP +4.4%) and Devon Resources (DVN +9%) already have made their big moves - a big dividend cut and an equity raise, respectively - which relieves the pressure on management to take further drastic steps.
    | Mon, Feb. 22, 3:21 PM | 43 Comments
  • Fri, Feb. 19, 8:36 AM
    • Cenovus Energy (NYSE:CVE) and Encana (NYSE:ECA) had their debt ratings downgraded to junk by Moody’s, reflecting reduced cash flow and significantly weakened leverage and interest coverage metrics in the current oil price environment.
    • Moody’s cut the ratings of senior unsecured notes for both Canadian producers by three notches to Ba2, two levels below investment grade, from Baa2, while reaffirming the investment-grade Baa2 rating of Husky Energy (OTCPK:HUSKF).
    • The downgrades were issued in two separate statements: I, II.
    | Fri, Feb. 19, 8:36 AM | 12 Comments
  • Thu, Feb. 11, 2:44 PM
    • More dividend cuts and equity raises are coming for oil and gas stocks such as Apache (APA -4.3%), Devon Energy (DVN -5.1%), Encana (ECA -5.7%), Anadarko Petroleum (APC -6.2%) and Marathon Oil (MRO -5.1%), as management teams have become more willing to take stronger steps to strength balance sheets, Barclays believes.
    • The firm views 4x debt to pre-interest cash flow as a warning sign that companies may have leverage concerns, at which roughly half of its energy coverage universe remains overlevered.
    • Barclays thinks Canadian Natural Resource (CNQ -4.4%) likely will maintain its dividend, while Occidental Petroleum (OXY -0.8%) has the financial strength to maintain or even increase the dividend.
    • The firm sees leveraged companies such as DVN, ECA and Range Resources (RRC -3%), and companies with large deficits including DVN and APC as most likely to consider raising equity; it also thinks MRO, WPX Energy (WPX -7.8%), Southwestern Energy (SWN -7.7%), Continental Resources (CLR +0.2%), Noble Energy (NBL -2%) and Newfield Exploration (NFX -1.2%) could issue equity; APA, CNQ, OXY, EOG Resources (EOG -0.9%) and Pioneer Natural Resources (PXD -0.3%) are considered unlikely to issue equity this year.
    | Thu, Feb. 11, 2:44 PM | 13 Comments
  • Thu, Feb. 4, 2:56 PM
    • Suncor Energy (NYSE:SU) CEO Steve Williams says a meeting today between major players in Canada’s oil patch and PM Trudeau was encouraging but included no assurances on pipeline approvals.
    • Trudeau has pledged to seek greater global market access for Alberta’s oil sands crude so long as it can be done in an environmentally sustainable manner; the federal government's move last week to require an assessment of new pipelines’ impact on Canada’s greenhouse gas emissions and Native American communities was viewed as a setback by much of the oil industry.
    • Also included in the discussion were senior officials from Royal Dutch Shell (RDS.A, [[RDS.B), Husky Energy (OTCPK:HUSKF), Cenovus Energy (NYSE:CVE), Canadian Natural Resources (NYSE:CNQ), Imperial Oil (NYSEMKT:IMO) and Encana (NYSE:ECA).
    | Thu, Feb. 4, 2:56 PM | 12 Comments
  • Fri, Jan. 22, 9:21 AM
    | Fri, Jan. 22, 9:21 AM | 14 Comments
  • Tue, Jan. 12, 2:51 PM
    • Morgan Stanley lowers its E&P sector outlook to In-Line to reflect a “more protracted recovery that drives lower production and increases leverage," adding that a nearly 50% downside can be expected before the group becomes cheap.
    • Resilient U.S. production even under lower oil prices coupled with international production growth are expected to extend oil’s trough through 2016, the firm says.
    • Stanley downgrades Marathon Oil (MRO -7.8%), Encana (ECA -6.7%) and Canadian Natural Resources to Equal Weight (CNQ -4.7%), and cuts Whiting Petroleum (WLL -13.7%) to Underweight from Equal Weight; the firm cuts its price target for MRO to $10 from $29, ECA to C$5.50 from C$10, CNQ to C$30 from C$45, and WLL to $4 from $23.
    • Earlier: Morgan Stanley: Oil to sink further thanks to strong dollar (Jan. 11)
    | Tue, Jan. 12, 2:51 PM | 25 Comments
  • Dec. 31, 2015, 1:52 PM
    • The volatility continues: After getting drubbed yesterday following the release of EIA inventory data, a slew of North American oil/gas industry firms are up strongly today as Nymex natural gas futures rise 6.1% to $2.35/MMBtu. The EIA reported today a weekly U.S. natural gas inventory change of -58 Bcf (close to expectations) to 3,756 Bcf.
    • Oil is also higher: WTI crude is up 2.5% to $37.53/barrel, and Brent crude up 3.7% to $37.80/barrel. The S&P is down 0.3%.
    • Also: Cheniere Energy (LNG +3.4%) has begun production at its Sabine Pass terminal, which will be the first to export shale gas from the U.S. Partner ING Capital states Cheniere is currently receiving, chilling, and storing 50M cubic feet of gas per day at the facility.
    • Major gainers include Southwestern Energy (SWN +9.6%), Williams (WMB +5.6%), Encana (ECA +4.5%), Gulfport Energy (GPOR +5.3%), Whiting Petroleum (WLL +8.2%), Rice Energy (RICE +5.6%), SandRidge Permian Trust (PER +8.9%), Oasis Petroleum (OAS +5.9%), BP Prudhoe Bay Royalty Trust (BPT +7.3%), and Baytex Energy (BTE +9.3%). ONEOK is up over 7% after catching an upgrade from Credit Suisse.
    | Dec. 31, 2015, 1:52 PM | 8 Comments
  • Dec. 30, 2015, 12:46 PM
    • Hit hard two days ago as oil fell below $37/barrel, oil/gas industry names are seeing more pain today after the EIA reported U.S. crude inventories rose by 2.6M barrels last week - expectations were for a decline. The report comes shortly after the API estimated U.S. crude inventories rose by 2.9M barrels during the most recent weekly period.
    • After rising yesterday, WTI crude is down 3.1% to $36.71/barrel. Brent crude is down 2.9% to $36.69/barrel. Nymex natural gas is down 7.3% to $2.20/MMBtu.
    • The biggest decliners include Chesapeake Energy (CHK -4.1%), Petrobras (PBR -4.1%), Linn Energy (LINE -7.5%), Gulfport Energy (GPOR -5.2%), SeaDrill (SDRL -5.5%), MV Oil Trust (MVO -4.5%), EV Energy Partners (EVEP -6.7%), and Southwestern Energy (SWN -5.7%).
    • Other notable decliners include Hercules Offshore (HERO -5.2%), Marathon Oil (MRO -4%), Devon Energy (DVN -4.4%), Encana (ECA -4.1%), Range Resources (RRC -4.7%), Sandridge Mississippian Trust (SDR -4%), Newfield Exploration (NFX -3.8%), BP Prudhoe Bay Royalty Trust (BPT -3.1%), Enerplus (ERF -3.9%), and ONEOK Partners (OKS -2.5%).
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
    | Dec. 30, 2015, 12:46 PM | 68 Comments
  • Dec. 28, 2015, 11:45 AM
    • WTI crude is down 3.2% to $36.90/barrel, and Brent crude down 2.5% to $36.95/barrel, leaving prices close to 11-year lows. Energy industry firms are among the biggest decliners on a day the S&P is down 0.6%.
    • Fears about excess supply appear to be weighing once more. OPEC figures point to a global oil supply glut of more than 2M barrels (over 2% of global demand); a smaller glut is expected next year. Meanwhile, Japanese government data indicates the country's oil product sales fell to a 46-year low in November, and European data suggests the continent's oil product demand growth turned negative in October.
    • The biggest casualties include Whiting Petroleum (WLL -9.9%), Oasis Petroleum (OAS -8.2%), Vanguard Natural Resources (VNR -12.5%), Denbury Resources (DNR -8%), SandRidge Energy (SD -8.1%), SandRidge Permian Trust (PER -10.9%), SandRidge Mississippian Trust (SDT -7.5%), U.S. Silica (SLCA -6.2%), Marathon Oil (MRO -6.7%), C&J Energy Services (CJES -8.1%), MV Oil Trust (MVO -9.2%), Bonanza Creek (BCEI -6.4%), Parker Drilling (PKD -7.9%), and Continental Resources (CLR -5.9%).
    • Other notable decliners include Kinder Morgan (KMI -5%), Williams Partners (WPZ -4.4%), EOG Resources (EOG -3.4%), Cheniere Energy (CQP -3.6%), SeaDrill (SDRL -3.5%), Encana (ECA -2.8%), Devon Energy (DVN -2.7%), Ensco (ESV -3.8%), Hercules Offshore (HERO -4.7%), Atwood Oceanics (ATW -4.9%), Helmerich & Payne (HP -3.8%), and Pioneer Natural (PXD -2.6%).
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
    | Dec. 28, 2015, 11:45 AM | 109 Comments
  • Dec. 23, 2015, 7:15 PM
    • Encana (NYSE:ECA) says it now expects the previously announced US$900M sale of its DJ Basin assets to Crestone Peak Resources to close in Q2 2016, six months later than originally planned.
    • ECA says it and Crestone Peak remain committed to closing the deal, and the buyer has increased its deposit, while the material terms of the transaction, including the purchase price, remain unchanged.
    • Financial Post notes the sale will now close after the Canada Pension Plan Investment Board (which owns 95% of Crestone Peak) ends its 2015-16 fiscal year; the new closing date could avoid further impairment charges for CPPIB, whose $500M equity and debt investment in Laricina Energy mostly has disappeared.
    | Dec. 23, 2015, 7:15 PM
  • Dec. 16, 2015, 2:31 PM
    • Moody's says it is reviewing 29 E&P companies from the U.S. and seven from Canada for a potential downgrade, saying the companies "will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access."
    • Based on the severity and potential duration of the industry challenges, Moody's expects many companies will be downgraded one notch and others could be lowered by more than one notch.
    • Yesterday, the ratings agency cut its oil and gas price assumptions in light of continuing oversupply in the global oil markets and the U.S. natural gas market.
    • Among the U.S. companies: APC, AR, APA, XEC, CXO, COP, CLR, DNR, EGN, EOG, EPE, EQT, HES, MRO, MUR, NFG, NFX, NBL, OXY, PXD, QEP, RRC, SM, SWN, UNT, WLL, WPX
    • From Canada: BTE, CNQ, OTCQX:COSWF, CVE, ECA, OTCPK:HUSKF, SU
    | Dec. 16, 2015, 2:31 PM | 36 Comments
  • Dec. 15, 2015, 11:56 AM
    • Encana (ECA -1.1%) is lower despite shares earning an upgrade to Buy from Hold with a $9.50 price target at Jefferies, which says yesterday's announced dividend cut enables a focused plan.
    • Jefferies says the reduced distribution likely caused mechanical selling yesterday by income-oriented funds, but lower payouts appear prudent, enabling stable funding of ECA’s low-cost Permian asset.
    • The firm says ECA's current share price gives little credit to significant strides the company has made in improving its inventory quality, balance sheet and funding profile.
    | Dec. 15, 2015, 11:56 AM | 2 Comments