4.4200 0.00 (0.00%)
After hours: 5:06PM EST
|Bid||4.4100 x 3000|
|Ask||4.4600 x 900|
|Day's range||4.4100 - 4.5200|
|52-week range||3.8100 - 8.3900|
|Beta (3Y monthly)||3.49|
|PE ratio (TTM)||4.27|
|Forward dividend & yield||0.07 (1.66%)|
|1y target est||7.08|
Higher production from Encana's (ECA) core assets of Permian, Anadarko and Montney Basins drives the company's year-over-year results to excellence.
(Bloomberg) -- The Canada Pension Plan Investment Board isn’t shying away from investing in Canada’s beleaguered energy sector, though it’s passing on Saudi Aramco’s massive stock sale.“We will look at traditional oil and gas, whether it’s pipelines or other resources,” in addition to renewables, Mark Machin, chief executive officer of Canada’s biggest pension fund said in an interview with BNN Bloomberg in Toronto. “As long as we can understand all the risks behind the investment, that the regulation may change, that preference may change, that geography may change. If we can understand those and can still be compensated sufficiently, then we’ll continue to make that investment.”The gloom hanging over the Canadian energy industry was intensified after Encana Corp. -- one of its marquee companies that was born out of the 19th-century railway boom -- announced plans to move its headquarters to the U.S. and drop the link to Canada from its name. The sector has suffered from a lack of pipeline space that has choked off prospects for growth, prompting foreign companies to ditch more than $30 billion of assets in the past three years.While Machin acknowledged climate change is a “multi-faceted” and “very complicated” risk, he highlighted that his mandate is to maximize returns without undue risk of loss.“It’s important as an investor that we understand all of those risks and how fast the energy transition is going to happen,” he said. “When we look at every investment, we understand all the risks that climate change could present to that investment. We are able to understand the risks in a more granular way now because of some of the tools and the disclosure practices that have really improved.”Machin, whose fund manages more than C$400 billion ($305 billion) in assets, said Saudi Aramco’s jumbo IPO isn’t on his radar because the company is not in a strategic geographic market for the fund.“We understand what the company has to say,” Machin said. “But when we look at emerging markets, we’re very focused on the emerging markets that we invest in. We are not invested in the Middle East. We want to invest in markets where we’re going to do a lot of different things, infrastructure and real estate and public markets and private markets and credit and equity.”To contact the reporter on this story: Paula Sambo in Toronto at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, David ScanlanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Pocket Cast or iTunes.Canadian consumer sentiment worsened through October amid rising uncertainty about the economic outlook, and as westerners come to grips with an election that handed a second term to Justin Trudeau’s Liberals, a result perceived as potentially bad for the energy industry.The Bloomberg Nanos Canadian Confidence Index -- a composite gauge based on weekly telephone polling -- ended October at 56.7, down from 57.8 at the end of September. The economic mood index for the resource-rich prairie provinces dropped 3.8 points from the previous month to the lowest level since May, with most of that decline coming in the two weeks following the Oct. 21 election.Although they returned to power with a minority government, Trudeau’s Liberals were completely shut out of of Alberta and Saskatchewan, where discontent with the federal government’s approach to resource development is strongest. The ongoing delays facing the completion of the Trans Mountain pipeline expansion project have been a particular sore spot in Alberta, which has struggled since the collapse of oil prices at the end of 2014. The province suffered another blow last week when Calgary-based Encana Corp. -- one of the country’s marquee companies that traces its roots back to the 1800s -- announced plans to move its headquarters to the U.S. and drop the link to Canada from its name.Still, uncertainty about the economic outlook is widespread across the country -- 13% of respondents said they don’t know if the economy will be stronger, weaker or remain unchanged over the next six months, the highest level on record. That coincides with a slowing world economy and elevated trade tensions.Last week the Bank of Canada shifted to a more dovish stance. Governor Stephen Poloz said policy makers had discussed and then rejected an “insurance” cut to interest rates to buffer the global weakness.Consumers also reported less confidence about their pocketbooks, with readings dropping to the lowest since May.Every week, Nanos Research asks 250 Canadians for their views on personal finances, job security, the outlook for the economy and where real estate prices are headed. Bloomberg publishes four-week rolling averages of the 1,000 telephone responses.To contact the reporter on this story: Erik Hertzberg in Ottawa at email@example.comTo contact the editors responsible for this story: Theophilos Argitis at firstname.lastname@example.org, Chris Fournier, Stephen WicaryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oil markets received a rare bullish bounce on Friday morning as the rig count fell once again and China released some positive manufacturing data, but the overall trend in markets remains decidedly bearish
(Bloomberg) -- The head of a Bay Street bank threw his support behind Canada’s beleaguered energy industry, saying the country serves neither itself, nor the planet, by undermining its ability to get its “responsibly” produced oil and gas to market.The comments from Victor Dodig, chief executive officer of Canadian Imperial Bank of Commerce, come one day after Encana Corp. announced it was moving its headquarters to the U.S. and changing its name to Ovintiv. It was the latest blow for industry that has seen foreign companies dump more than $30 billion in assets in the past three years amid a price slump, pipeline bottlenecks and growing distaste for the oil sands, criticized by some as among the most carbon intensive.“I know that some financial institutions are turning away from traditional energy markets,” Dodig said Friday, according to an advance copy of his speech in Calgary, where CIBC was the first bank to open a branch more than 100 years ago. “We know your industry, your business, and will be there to help address the challenges and opportunities that lay ahead.”Canada is already a leader in responsible energy development, said Dodig -- citing Suncor Energy Inc.’s co-generation project, which will lower greenhouse gas emissions by 25%, and Canadian Natural Resources Ltd.’s carbon capture system, which is making it a world leader in sequestration.But the industry and the country needs to do more to tackle climate change, he said, suggesting new financing and tax measures from the federal government to help it get there. These could include a tailored tax credit to encourage more carbon capture and sequestration, noting a similar tax credit exists in the U.S.Dodig called on “true leadership” from government, industry and stakeholders to expand Canada’s energy markets while making the transition to cleaner energy. The importance of building the Trans Mountain Expansion and getting it back in private hands “cannot be overstated,” he said.“We are caught up in regulation -- instead of delivering results and demonstrating Canada’s environmental and technological leadership,” Dodig said in the text of his speech. “And because of this, Alberta is hurting.”The announcement from Encana only underscores the urgency to take action, he added.“If we as a country want to attract international investment, if we want our homegrown energy companies to make the most of their potential, if we want to compete in the world and win, then we must build a modern regulatory framework,” he said.To contact the reporter on this story: Doug Alexander in Toronto at email@example.comTo contact the editors responsible for this story: David Scanlan at firstname.lastname@example.org, ;Michael J. Moore at email@example.com, Jacqueline Thorpe, Kevin OrlandFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The odds of H&R Real Estate Investment Trust selling a stake in its wholly-owned iconic Calgary tower has dropped after Encana Corp. announced plans to move its headquarters to the U.S, according to BMO Capital Markets.‘The Bow’ tower, located in Canada’s corporate energy hub in downtown Calgary, houses the oil & gas driller as its largest tenant. Uncertainty surrounding Encana’s commitment to Calgary with its plans to move its headquarters stateside means “it is less likely that H&R will be able to sell a partial interest in The Bow at a value that management would find agreeable,” BMO analyst Jenny Ma said in an Oct. 31 report.Read more: Another Energy Player Drops ‘Canada’ From Name Amid ExodusEncana represents 11.9% of H&R’s rental income and its lease obligations expire in 2038, according to the REIT’s presentation as of June 30. Cenovus Energy, which was spun out of Encana, has a sublet of 27 floors. Pipeline giant TC Energy Corp., also located in downtown Calgary, generates 1.9% of H&R’s rental income.H&R’s Chief Executive Officer Thomas Hofstedter said during its second-quarter earnings call in August (and before Encana’s announcement Thursday) that it was still considering the possibility of a partial sale of The Bow, and hopes to get clarity “before the year is out if we can actually execute on our plan.”H&R’s management “confirmed that Encana must maintain its lease obligations through to the end of the term,” BMO’s Ma said, and re-domiciling is more of “symbolic blow to Calgary” and the city’s office market. The office vacancy rate in Calgary was 24.3% as of Sept. 30, as both the downtown (26.6% vacancy rate) and suburban areas (20.6%) are hurting, BMO added.To contact the reporter on this story: Michael Bellusci in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Divya Balji, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Canada’s beleaguered energy sector suffered another morale blow as Encana Corp. -- one of its marquee companies that was born out of the 19th-century railway boom -- announced plans to move its headquarters to the U.S. and drop the link to Canada from its name.The Calgary-based company said Thursday that it will establish a corporate domicile in the U.S. early next year, pending various approvals, and rebrand under the name Ovintiv Inc. The shares fell as much as 9.3% in Toronto, the biggest drop in a year.The move is likely to intensify the gloom already hanging over the Canadian energy industry, which has suffered from a lack of pipeline space that has choked off prospects for growth, prompting foreign companies to ditch more than $30 billion of assets in the past three years. Encana joins pipeline owner TransCanada Corp., which changed its name to TC Energy Corp. earlier this year.“Canada is no longer viewed as a world-class destination for capital, both generally and specifically for oil and gas,” Mac Van Wielingen, founder and partner of ARC Financial Corp., a Calgary-based private equity firm focused on the Canadian energy industry, said in an interview. “There’s a whole combination of factors at work that are really working against Canada.”Investor confidence in the sector has been eroded by the cancellation of the Northern Gateway crude oil pipeline in 2016 as well as new laws passed in recent years that may make it harder to build new energy infrastructure projects and which ban some shipments of crude from Canada’s Pacific Coast, Wielingen said. In recent years, ConocoPhillips, Royal Dutch Shell Plc and Marathon Oil Corp. have sold major Canadian assets and redeployed the proceeds in other countries.For Encana, the move is a logical shift since Doug Suttles, a Texan, took over as chief executive officer in 2013. Suttles soon set about selling Canadian assets and building a major position in the U.S. through the purchase of Permian driller Athlon Energy and the acquisition of Freeport-McMoRan Inc.’s Eagle Ford shale assets. The company moved into the Scoop and Stack shale fields in Oklahoma, the Bakken region of North Dakota and the Uinta play in Utah with its purchase of Newfield Exploration, which closed in February.Encana now gets about 80% of its production from U.S. plays and invests a roughly equal portion of its capital spending in them.Suttles himself has already left Canada, moving to Denver in March of last year. In November he said he envisioned Encana as a “headquarterless” company. Last quarter, he lamented on the company’s earnings conference call that Encana shares hadn’t yet achieved the valuation worthy of a “premium” exploration and development company.Encana said Thursday the U.S. move will expose it to larger pools of investment including American index funds and passively managed accounts, and better align the company with U.S. peers. Less than 10% of Encana’s stock is owned by passive accounts, less than the 30% average for its U.S. peers, executives said on a conference call Thursday.Suttles said no job cuts are planned and there won’t be any decrease in Canadian investment.Encana’s “exciting and engaging” new name isn’t meant to denigrate Canada or its policies and politics, he added, and that the recent federal election, in which the pro-energy Conservative Party failed to unseat Prime Minister Justin Trudeau, wasn’t a factor in the move.“We don’t want people to see this as some negative reflection on Canada,” Suttles said in an interview with BNN Bloomberg television.Encana traces its Canadian roots back to the late 1800s, when the Canadian Pacific Railway accidentally discovered natural gas while drilling a water well for workers. The company was eventually spun out from Canadian Pacific and took the name EnCana in 2002. Encana then spun off its oil sands business into Cenovus Energy Inc. in 2009.Both stocks have underperformed since then, with Encana down about 78% including dividends, while Cenovus has dropped 48%. Canada’s benchmark stock gauge has doubled in the same period.As part of the corporate shift, shareholders will get one common share of Ovintiv for every five shares of Encana. The move needs the support of two-thirds of votes cast at a shareholders meeting early next year.Separately, Encana reported third-quarter adjusted operating earnings that were in line with estimates. The company raised its 2019 production outlook while maintaining its capital spending guidance, and said Permian output rose to a quarterly record while Anadarko production climbed 13% from a year earlier.ARC’s Van Wielingen declined to speculate on whether other companies may follow Encana’s lead and decamp from Canada, but noted that investors already are asking the country’s remaining large producers some tough questions.“Some of the ones that are left are under a lot of pressure, trying to justify their existence to their shareholders and their commitment to Canada,” Van Wielingen said.(Updates with ARC founder’s comments in fourth paragraph.)To contact the reporter on this story: Kevin Orland in Calgary at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Carlos Caminada, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Encana (ECA) delivered earnings and revenue surprises of 7.14% and 9.91%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Canadian oil and gas producer Encana plans to shift its base from Calgary, Alberta to the US and rebrand as Ovintiv, a move that analysts said signals that Canada’s energy sector is no longer a welcoming place for international business. Doug Suttles, EnCana’s president and chief executive, on Thursday said the move will give the company greater access to foreign capital. The company said none of its head office operations are moving to the US and the changes will not result in any job losses in Canada.
Strong production growth is likely to have boosted Encana (ECA) in Q3. However, lower realized commodity prices are expected to have hurt its bottom line.
Encana (ECA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Encana (ECA) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Following the Newfield acquisition, debt increased. Here's a guide to assess how Encana manages its capital allocation decisions going forward.
Encana (ECA) expects 15% y/y growth in liquids production in 2019 on the back of its three core plays, namely Permian, Montney and Anadarko.
Encana (ECA) delivered earnings and revenue surprises of 23.53% and 17.73%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Certain factors which have a strong influence on HollyFrontier's (HFC) Refining segment are sending mixed signals with regard to the company's results in the upcoming quarterly release.
Oct.31 -- Encana Chief Executive Officer Doug Suttles discusses the Calgary-based company's plan to move its headquarters to the U.S. and drop the link to Canada from its name. He speaks with Bloomberg's Caroline Hyde and Scarlet Fu on "Bloomberg Markets: The Close."