EnCana Corp. (ECA) Shares Fall on Production Cuts
Shares of EnCana Corp. fell Friday a day after the natural gas producer cut its outlook for production next year, amid competition and bloating costs.
Thursday afternoon, Canada-based EnCana said it expects to invest 6 percent less next year than in 2006 to develop production.
Citigroup analyst Gil Yang noted in a research report the production was lower than the guidance the company set out five weeks ago.
Yang cut EnCana's shares to "Sell" from "Buy," saying the quality of EnCana's operations is threatened by skyrocketing costs, even as the company reduces spending. The company has already fallen behind in its production goals, Yang said, and he worries the company's portfolio is "fully valued" by the market.
Thursday afternoon, Canada-based EnCana said it expects to invest 6 percent less next year than in 2006 to develop production.
Citigroup analyst Gil Yang noted in a research report the production was lower than the guidance the company set out five weeks ago.
Yang cut EnCana's shares to "Sell" from "Buy," saying the quality of EnCana's operations is threatened by skyrocketing costs, even as the company reduces spending. The company has already fallen behind in its production goals, Yang said, and he worries the company's portfolio is "fully valued" by the market.
Labels: ECA, EnCana Corp.
posted by Stock Administrator @ 5:22 PM
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