Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Encana Corp (USA) (NYSE:ECA) reported a fourth-quarter adjusted earnings per share that trailed expectations Thursday. But the energy company's discretionary cash flow per share after common stock fell in line with the consensus, Societe Generale said in an upgrade note.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Societe Generale analyst John Herrlin upgraded Encana from Hold to Buy, with an unchanged 12-month price target of $14.80.
The Thesis
Encana shares have declined about 20 percent year-to-date despite the company positioning to generate positive free cash flow in 2018 and experiencing production growth, Herrlin said in a Thursday note.
The analyst said he views the recent pullback as an opportunity for investors.
Encana guided its capex budget to $1.85 billion and production to 370 million barrels of oil equivalent per day at the midpoint, an 18-percent growth year-over-year from core properties, the analyst said. Herrlin said 70 percent of Encana's budget is geared toward the Permian and Montney.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
"And unlike 2017, when ECA outspent cash flow by 64 percent, it plans to be cash flow neutral this year," Herrlin said.
Societe Generale noted Encana announced a $400-million stock buyback program, equating to 3.6 percent of outstanding shares.
"Essentially, ECA is out of the lease capture mode in its shale plays and should benefit from having its Verasen gas plants full in the Montney, concentrated E&D in the Permian and by generating free cash flow from the Eagle Ford."
The Price Action
Encana shares are down over 13 percent over the past year.
Related Links:
Oil And Gas Stock Roundup: Shell, Apache, Encana And More
This Energy ETF Should Get A Tax Reform Boost
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.