EnCana Corporation (EnCana) reported a sharp drop in earnings during 2Q 09, due to flat production levels and weaker natural gas prices. However, margins were reinforced by a fall in prices for crude oil used in the company’s refineries. We expect hydrocarbon prices to improve during 2H 09, which should help to reinforce EnCana’s top-line. Therefore, even though the target price derived in our last update report does not support a HOLD, we maintain our 6-12 month HOLD rating....

EnCana Corporation’s (EnCana) revenues were above our expectation given a better than anticipated performance from the company’s upstream segment. Margins benefited from a decline in input costs and were above our expectations given the higher than anticipated growth in top-line. We are likely to revise our estimates and expect to increase our target price based on these strong results, despite depressed hydrocarbon prices, and therefore maintain our BUY rating for the company....

CLICK VIEW REPORT TO READ FREE REPORT

EnCana Corporation’s (EnCana) results fell below our estimates during 4Q 08 given lower than expected realized natural gas and crude oil prices during the quarter. Production was however, in line with Management guidance for the quarter. The company expects to invest US$6.1 bn to maintain flat production levels in FY 2009. As results fell below our expectations, we maintain our HOLD rating for the common stock although our target price does not…