Encana Corp(ECA): Look Through Midland Declines To The Superpad - Jefferies
Get Alerts ECA Hot Sheet
Rating Summary:
20 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
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Jefferies analyst, Jonathan Wolff, believes that EnCana Corp. (NYSE: ECA) share price weakness was the result of (transitory) Midland declines, impacted by the 'lumpy' nature of pad drilling. However, strong improvements in capital efficiency should become evident with the startup of a 14-well 'superpad' in 2Q. The firm reiterated a Buy rating and raised its price target to $11 from $8.
The ongoing cost reductions and better per well productivity give the analyst better visibility into accelerated development. He is becoming increasingly confident in ECA’s ability to efficiently grow production and drive down costs in the Midland Basin. ECA is one of only 6-7 players in the Midland with truly scalable, core acreage, with multi-zone potential.
For an analyst ratings summary and ratings history on EnCana Corp. click here. For more ratings news on EnCana Corp. click here.
Shares of EnCana Corp. closed at $6.55 yesterday.
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