Mon, May 11, 5:30 PM
Wed, Apr. 22, 6:53 PM
- Nomura came out bullish today on the energy E&P sector - issuing Buy ratings for MRO, PXD, EOG, CLR, APC, NFX, RRC, CNQ, CXO, ECA and SU - even as the firm does not foresee a V-shaped rebound in crude oil prices.
- Nomura believes core North American shale plays do not represent the economic marginal cost of supply in the world, which runs counter to commonly held views that largely see shale occupying the high end of the cost curve; thus as oil rebounds, so will investment in the shales, which should support prices, the firm says.
- In such an environment, Nomura says selecting stocks will depend on factors such as ”the reinvestment opportunity set, impact of oilfield technology, continued efficiencies, potential new geologic plays, management acumen and balance sheet strength."
- The firm is Neutral on DVN, HES, MUR, OAS, UPL, WLL, XEC, COG, COP and SWN; it rates NBL, APA, DNR, CHK and CVE as Reduce.
Tue, Apr. 21, 10:57 AM
- Encana (ECA +0.6%) is upgraded to Overweight from Equal Weight with an $18 price target, up from $15, at Morgan Stanley, based on an improving asset base.
- Stanley says ECA's asset base continues to improve as it becomes increasingly liquids weighted, rising from 10% in 2013 to an estimated 40% in 2016; the firm says ECA has the highest liquids growth among its U.S. peers, with a 37% compounded annual growth rate through 2018.
- The firm sees liquids growth starting to outperform peers in the next 12 months with the potential of further non-core divestitures to de-leverage; "both are key to the re-rating potential of Encana into a liquids weighted E&P."
Mon, Apr. 20, 11:52 AM
- Encana (ECA +3.1%) is seeking buyers for its natural gas properties in Louisiana as it focuses on drilling for oil and other liquids in Texas and Canada, Bloomberg reports.
- Citigroup is said to be soliciting offers from P-E firms, energy explorers and other potential buyers for ECA's Haynesville Shale basin acreage, which is valued at as much as $1B; ECA holds more than 350K acres in the area.
Mon, Apr. 13, 9:04 AM
Tue, Mar. 17, 7:40 PM
- Crude oil production at three major U.S. shale oil fields - the Eagle Ford in south Texas, the Bakken in North Dakota, and the Niobrara in Colorado and adjacent states - is projected to fall this month for the first time in six years, the Energy Information Administration says.
- Net production from the three fields is expected to drop by a combined 24K bbl/day, but overall losses likely will be masked by production gains in the Permian Basin in west Texas and other regions.
- It is one of the first signs that idling hundreds of drilling rigs and billions of dollars in corporate cutbacks are starting to affect the U.S. oil patch, but it also shows that drilling technology and techniques have advanced to the point that productivity gains may be negligible in some shale plays.
- Top Eagle Ford producers: EOG, BHP, COP, CHK, MRO, APC
- Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
- Top Niobrara producers: NBL, APC, ECA, CHK, EOG, WPX
Sat, Mar. 7, 8:25 AM
- With U.S. oil steadying at ~$50/bbl in recent weeks, investors are beginning to believe crude prices have found a bottom, and public money is starting to flow back to North American oil producers.
- Investors have pumped $7.75B YTD into 16 separate stock market equity fund-raises - the biggest surge in at least seven years, and more equity than oil producers issued in all of 2009.
- "There was a two to three month window when capital markets were closed because everyone was nervous," but now things are turning around, says Tudor Pickering's Michael Rowe.
- In just the past two weeks, PAA, ECA, NBL, OAS, NFX, GDP, CXO, LPI, AR and TEP have stepped up with equity fund-raises.
- ETFs: XLE, ERX, VDE, OIH, XOP, ERY, DIG, DUG, IYE, XES, IEO, IEZ, PXE, FENY, PXJ, RYE, FXN, DDG
Wed, Mar. 4, 5:07 PM
- Encana (NYSE:ECA) -3.5% AH on plans to raise C$1.25B through a bought deal offering of 85.6M common shares at C$14.60 each.
- The underwriters have the option to purchase an additional 12.8M shares if demand warrants.
- ECA plans to use the proceeds from the offering to redeem two series of notes worth a combined $1.45B as it looks to reduce debt while commodity prices remain weak.
Wed, Feb. 25, 2:58 PM
- Encana (ECA +3.6%) says ready to take advantage of the collapse in crude oil prices to do more deals, CEO Doug Settles says, as the announced 25% cut to its 2015 capital budget ensures there is enough cash coming in to cover costs and consider acquisitions.
- "The longer this [crude oil price] environment persists, the more likely something will occur. There’s lots of people talking," Settles says.
- ECA’s reduced $2.1B budget this year assumes it can reduce costs by 15%, the CEO says, adding that the company has secured rate cuts of as much as 50% in some areas following talks with drillers and other service suppliers.
- ECA is not planning job cuts after cutting its workforce by ~25% last year but headcount will fall this year as it chooses not to replace employees heading into retirement, Settles says.
Wed, Feb. 25, 8:48 AM
- Encana (NYSE:ECA) -0.3% premarket after reporting Q4 earnings that fell far short of estimates and cutting its capital spending and cash flow guidance for the year.
- ECA says it will slash 2015 capex by ~25% to US$2B-US$2.2B from its earlier guidance of $2.7B-$2.9B, and it now sees cash flow of $1.4B-$1.6B for the year, down from its previously announced $2.5B-$2.7B.
- ECA's original capital budget for 2015 was based on an oil price of $70/bbl for West Texas crude, while its updated budget is based on $50/bbl.
- ECA, which has been shifting its focus to oil and gas liquids and away from natural gas, says Q4 liquids production averaged 106.4K bbl/day, up 61% Y/Y, as realized liquids prices fell 0.9% to $66.40/bbl; natural gas output fell nearly a third to 1.9B cf/day, while realized nat gas prices fell 4% to $4.16/Mcf.
- Q4 cash flow fell 44% to $377M, largely due to higher taxes and one-time costs associated with last year's $5.9B purchase of Athlon Energy.
Wed, Feb. 25, 6:12 AM
Tue, Feb. 24, 5:30 PM
Fri, Jan. 30, 2:39 PM
- Devon Energy (DVN +2.9%) is upgraded to Buy from Hold at Deutsche Bank, which views DVN as particularly well positioned relative to large-cap E&Ps to again grow production into a firming commodity price environment.
- The firm believes DVN's 2014 asset transactions reposition the portfolio to highlight underlying growth potential, high-grade the portfolio towards fewer and key plays, and improve the cost of capital via the EnLink transaction; it also cites DVN's best-in-class hedge position.
- On the other hand, Deutsche Bank lowers Encana (ECA +1.8%) to Hold from Buy, saying ECA is more dependent than peers on the broader commodity price outlook again returning to growth; the firm believes the move to fund the Athlon acquisition with cash on the balance sheet has left ECA with significantly reduced financial flexibility.
Mon, Jan. 5, 12:18 PM
- Energy stocks severely underperform the broader market, with the sector -4.2% vs. the S&P 500's -1.4%, as U.S. oil prices briefly slip below $50/bbl for the first time since April 2009; Nymex crude recently was -4.4% at $50.37, while Brent crude -5.9% at $53.08.
- Among the day's biggest losers: DNR -9%, RIG -7.6%, NBR -4.8%, CHK -5.9%, SDRL -9.1%, SD -12.3%, NOV -5.9%, PSX -6.2%, APA -5.9%, DVN -4.4%, EOG -6%, SU -5.2%, OXY -4.2%, APC -8.7%, PWE -9%, ECA -5.5%, MRO -5.3%.
- Global oil majors, which have been seen as less vulnerable to falling oil prices, are posting big losses: XOM -2.7%, COP -4.5%, CVX -3.8%, BP -5.8%, RDS.A -4.6%, TOT -6.5%.
- ETFs: USO, XLE, OIL, UCO, ERX, VDE, OIH, SCO, XOP, ERY, FCG, DIG, PBW, BNO, GASL, DTO, DBO, DUG, IYE, XES, IEO, QCLN, IEZ, UWTI, PXE, USL, PXI, FENY, DWTI, PXJ, DNO, PSCE, RYE, SZO, PUW, FXN, OLO, DDG, HECO, TWTI, OLEM
Dec. 22, 2014, 4:59 PM
- Encana (NYSE:ECA) and Mitsubishi subsidiary Cutbank Dawson Gas Resources agree to sell natural gas gathering and compression assets supporting Montney development in the Dawson area of British Columbia to a partnership of Veresen (OTC:FCGYF) and KKR for C$412M.
- Veresen will provide gathering and compression services to ECA under a fee-for-service arrangement in a dedicated area of mutual interest within the Montney, and aims to spend up to C$5B of new midstream expansion to support development within the Montney; the ECA partnership plans to invest $600M-$700M in the play in 2015.
Dec. 22, 2014, 10:45 AM
- Natural gas prices fall 9.5% to near two-year lows at $3.133/mmBtu, in the biggest one-day percentage loss since February and the lowest intraday price since January 2013, on mild weather forecasts and inventory that is above year-ago levels.
- Prices are now down more than 15% in three straight losing sessions and are 30% lower than the six-month high closing price of $4.489/mmBtu it hit just a month ago.
- Weather has been unseasonably warm for December, limiting demand for home heating and allowing relatively low stockpiles to catch up to where they were a year ago and encouraging traders to sell based on the belief that supply is relatively healthy.
- Gas producers are among the biggest early decliners: XOM -1.1%, CHK -7.3%, APC -2.6%, SWN -6%, DVN -2.2%, COP -2.3%, BP -1.5%, COG -4%, BHP -1.9%, CVX -1.3%, ECA -5.1%, EQT -4.3%, RDS.A -1.7%, UPL -12%, WPX -6.9%, EOG -1%, OXY -1.1%, RRC -6.1%, APA -2.3%, AR -3.2%, CNX -3%, QEP -4.8%, LINE -4.9%, NBL -1.6%, SM -2.6%, XEC -4.2%, PXD -2.9%, NFX -5.1%.
- ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, NAGS, DCNG
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