Ticonderoga Maintains a 'Sell' EnCana Corp. (ECA); ECA and PTR Break Negotiations
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Price: $3.79 --0%
Rating Summary:
20 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
20 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Ticonderoga maintains a 'Sell' EnCana Corp. (NYSE: ECA), PT $27.
Ticonderoga analyst said, "Encana and PetroChina (NYSE: PTR)(NotRated) ended their negotiations regarding a joint venture agreement to develop ECA’s assets in the Cutbank Ridge and Montney areas of British Columbia and Alberta...This is a significant blow to ECA’s 2011 cash flow position, and could potentially slow their drilling program, which could result in further cutbacks to production guidance. We have a sell rating on ECA with a PT of $27."
"Cash flow impact: For 2011 we forecast $3.7B of operating cash flow and assumed $3.4B in cash proceeds from sales including $3.0B from the PTR JV (remainder being a drilling carry). Total available cash of $7.1B was to fund a $5.1B capital program and $1.0B of debt reduction, leaving $1.0B of additional free cash...Without the proceeds from the JV, we see ECA having to incur $800MM of debt in 2011 and an additional $1.6B in 2012."
For more ratings news on EnCana Corp. click here and for the rating history of EnCana Corp. click here.
Shares of EnCana Corp. closed at $30.10 yesterday.
Ticonderoga analyst said, "Encana and PetroChina (NYSE: PTR)(NotRated) ended their negotiations regarding a joint venture agreement to develop ECA’s assets in the Cutbank Ridge and Montney areas of British Columbia and Alberta...This is a significant blow to ECA’s 2011 cash flow position, and could potentially slow their drilling program, which could result in further cutbacks to production guidance. We have a sell rating on ECA with a PT of $27."
"Cash flow impact: For 2011 we forecast $3.7B of operating cash flow and assumed $3.4B in cash proceeds from sales including $3.0B from the PTR JV (remainder being a drilling carry). Total available cash of $7.1B was to fund a $5.1B capital program and $1.0B of debt reduction, leaving $1.0B of additional free cash...Without the proceeds from the JV, we see ECA having to incur $800MM of debt in 2011 and an additional $1.6B in 2012."
For more ratings news on EnCana Corp. click here and for the rating history of EnCana Corp. click here.
Shares of EnCana Corp. closed at $30.10 yesterday.
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