I guess their plan to reduce spending wasn't well received?
EnCana Corp. plans to invest capital of approximately $5.9-billion (U.S.) in 2007, a 6-per-cent decrease from the prior year, to grow natural gas and oil sands production, and expand the company's downstream heavy oil processing capacity. The company expects to fully finance its capital investment with internally generated cash flow, which is supported by hedges on more than half of its forecasted 2007 production volumes. In 2007, EnCana expects that cash flow will exceed total capital expenditures resulting in free cash flow of approximately $1.7-billion, at the midpoint of cash flow guidance. With the company's 2006 and 2007 planned share purchases, it is expected that 2007 natural gas production per share will grow by 9 per cent and total oil and gas production will grow by 4 per cent per share.
"In this period of high industry activity and continued high inflation, we have tempered our planned natural gas and oil production growth rate in order to minimize the impact of rising costs and operating inefficiencies, and to maximize project returns. Over all, we believe this approach will generate significant free cash flow that can be directed to continued share purchases and increased dividends. As always, our efforts will be focused on increasing the underlying value of every EnCana share," said Randy Eresman, EnCana's president and chief executive officer...........
.Natural gas production, which represents more than 80 per cent of EnCana's production, is expected to increase about 3 per cent, while oil and natural gas liquids (NGLs) production (excluding volumes from the oil sands partnership) is expected to decrease about 5 per cent, mostly due to natural decline in mature properties. Total production in 2007, prior to the allocation of oil sands volumes to ConocoPhillips as part of the heavy oil integration partnership, was expected to be up 4 per cent. With the establishment of the partnership planned for early in 2007, EnCana expects 2007 total production to be about the same as in 2006.
I think they got a downgrade from some outfit in the States?
Glad I wasn't in ECA yesterday.
Things sure went for shit after I left, I hit the road feeling pretty good about my trading positions, sure got knocked down during the day.
Kinda risky not being around the screen during the day I am finding.
AI
