Corporate Webpages EnCana Corporation
EnCana is a Canadian natural gas producer which was formed by
"accident." When the Canadian Pacific Railway was drilling for
water, it found natural gas by accident. Canadian Pacific Oil
and Gas was formed and merged and changed names a few times.
One of the last name changes, PanCanadian Energy, was changed to
EnCana Corp. when the company merged with Alberta Energy Co., Ltd.
The latter had some high-quality bonds which continue to this day.
The company is constantly wheeling and dealing in buying and
selling of assets, although the trend seems to be getting out of
South America where complications from robbing the gringoes
blind by certain countries made it inconvenient to continue
operating there. The company seems to be spinning off more than
it is taking on in the way of assets, getting out of natural gas
storage, and many oil exploration fields, to concentrate upon
Alberta shale for natural gas production.
Important news is the company's intention to split into two
companies, EnCana and Cenovus Energy. A one for one share
in each new company arrangement is intended to existing share
holders in the current company. Cenovus will get about 1/3 of
all EnCana's revenue-producing properties. What is most
important about this (and causes us to rate news as positive for
shareholders) is that it will leave Encana or Cenovus vulnerable
to takeover attempts, especially from Chinese interests, and
that could pump up share price.
We generally do not like to follow Canadian stocks. The reason
is that they are poorly-regulated, with each province having its
own version of a securities and exchange commission. Some
Canadian stocks have worked out well, for example in the gold
mining industry, Agnico Eagle and Barrick Gold are two companies
we feel are relatively honest. But in gold mine stocks
especially, Canada has also seen some of the worst scandals due
to poor securities regulation, namely Bre-X Minerals, Ltd. This
was as bad as Enron, and there are many like it still
functioning in Canada. Once you've been burned by one of these
Canadian stocks and find out what your recourses are, you are
much more sensitive to this issue.
Our "Management's Discussion" section incorporates an Adobe
".pdf" file, which we generally do not like to do on this site
because we do not like Adobe as a company or its format , but
for some sections it becomes unavoidable. Some foreign
companies meet American reportings standards; Ecana does not insofar
as format is concerned. Therefore, we gave it a negative rating
on "Management Reporting," although much of the typical
information provided by domestic companies to the SEC is found there.
Poor reporting requirements for this corporation which does not
volunteer conformance to U.S. SEC standards also affected the Zenith
Index negatively.
Of late, we have been using a combination of approvals
from Street.Com and Market Grader as a criterion for selecting
stocks to review, and to get the two of these diverse raters
together requires exceptional standards that often are forced to
go beyond U.S. borders. So EnCana Corp. (ECA) was one of these,
and that is how a Canadian stock gets into our Active List.
EnCana gets most of its revenues from natural gas production
from Canadian shale. It is considered an integrated oil and gas
company, and shares its "intergrated" portion with
Conoco-Phillips on about a 50-50% basis. Funds are generally
accumulating this stock, albeit many of them Canadian. Our
favorite fund, Dimensional Fund Advisors (DFA) is not among them, even
though it holds a significant concentration of shares in Conoco
Phillips. We presume this means DFA is wary of holding too many
Canadian stocks, as we are, and prefers to concentrate on
domestic issues. Information is easier to obtain and more
accurate on domestic stocks.
Natural gas prices have been very weak lately. Most analysts
agree this situation is not going to last much longer, but in
the meantime gas in storage exceeds normal levels and there is
excessive inventory to be used up.
Encana is a "rolling stock" just out of the top of its normal
trading range.
10-15-2009: EnCana Corporation (ECA): Split Into Two Entities Encourages Takeover
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
Management's Discussion
Moving Average Chart
Channel Potential
Intraday Chart
Stock Fetcher
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
EnCana Corp. (ECA ) Sector: Basic Materials
855-2nd Street SW Industry: Major Integrated Oil & Gas
Suite 1800 PO Box 2850 Exchange: NYSE
Calgary, Canada
EnCana Corporation engages in the exploration, production, and
marketing of natural gas, crude oil, and natural gas liquids. The
company owns interests in various Canadian property areas,
principally comprising Suffield, Brooks North, Langevin, Drumheller,
Pelican Lake, and Weyburn located in Alberta and Saskatchewan; and
Greater Sierra, Cutbank Ridge, Bighorn, and Coalbed Methane located
in British Columbia and Alberta. It holds interests primarily in
Jonah, Piceance, East Texas, and Fort Worth resource areas located
in Wyoming, Colorado, Texas, and Utah, the United States. EnCana
Corporation also has interests in integrated oil and gas assets
principally consisting of Foster Creek and Christina Lake located in
the U.S. and Canada. As of December 31, 2008, it had net proved
reserves of approximately 13.7 trillion cubic feet of natural gas
and 1.0 billion barrels of crude oil, bitumen, and natural gas
liquids. The company also involves in refining crude oil and
marketing refined petroleum products. EnCana Corporation serves
primarily local distribution companies, industrials, and energy
marketing companies. It has a joint venture agreement with
ConocoPhillips to engage in integrated oil business in North
America. The company was founded in 1971 and is based in Calgary,
Canada.
Last Trade: 61.64 52-Week Range: 61.81 - 34.00
Trade Date: 10-13 Avg. Volume: 0 Shares
Index Membership: N/A Employees: 6,048
Corporate Governance:
EPS: 7.76 Dividend Amount: $ 1.60 Yield: 2.70%
Ex-Dividend Date: 11-Sep-09 Mkt Cap: $ 46,300,000K
Payout Ratio: 21.00%
Last Split Factor (new for old): 2:1 Split Date: 23-May-05
Key Statistics:
Enterprise Value: $ 57,330,000K Revenue (ttm) : $ 25,580,000K
Gross Profit: $ 14,180,000K
Earnings before Income Tax, Depreciation and Amortization: $ 12,930,000K
Enterprise Value/Revenue (ttm): 2.24 Revenue per Share: $ 34.08
Enterprise Value/EBITDA (ttm): 4.43 Qtrly Rev Growth (y to y):-49.30%
P/E Ratio (fwd projected): 19.57 P/E Ratio (current): 7.94
P/E Growth Ratio (5 yr expected): 1.36 Operating Margin: 34.40%
Price/Sales Ratio: 1.79 Profit Margin: 22.80%
Price/Book Value: 1.89 Book Value: $ 32.28/sh.
Return on Assets: 11.18% Net Income Avl to Common: $ 5,830,000K
Return on Equity: 25.88% Diluted Earnings/Share: $ 7.76
Qrtly Earnings Growth (yoy): -80.40%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 330,000K Operating Cash Flow:$ 8,860,000K
Total Debt: $ 11,950,000K Lvgd Free Cash Flow:$ -1,420,000K
Total Debt/Equity: 0.00
Total Cash/Share: $ 0.44
Current Ratio: 1.36
Share Statistics: Stock Price History:
Shares Outstanding: 751,100K Stk 52-Week Change: 39.17%
Float: 749,900K S&P 500 52-Wk Chng: 7.26%
Sh. Short % of Float: 0.00% 50-Day Moving Avg: 55.82
Short Ratio: 4.40 200-Day Moving Avg: 51.41
% Held by Institutions: 67.60% Beta: 1.11
% Held by Insiders: 0.23%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep-09 Dec-09 Dec-09 Dec-10
Average Earnings Estimate 1.12 0.70 3.73 3.15
Average Revenue Estimate 4,510M 4,710M 18,390M 20,770M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 0.000 EPS Growth (Qrtly YoY): -.939
PEG Ratio (ttm, 5 yr expected): 0.356 P/E Ratio (ttm): 0.081
Revenue Growth (Qrtly YoY): 0.000
Annual Income Statements: All numbers in thousands)
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue 30,064,000 21,431,000 16,399,000
Cost of Revenue 15,889,000 12,159,000 3,211,000
Gross Profit 14,175,000 9,272,000 13,188,000
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 500,000 388,000 2,996,000
Non-Recurring Expenses 0 0 0
Other Operating Expenses 5,978,000 3,794,000 3,162,000
Total Operating Expenses 0 0 0
Operating Income or Loss 7,697,000 5,090,000 7,030,000
Income from Continuing Operations:
Total Other Income/Expenses Net -360,000 503,000 355,000
Earnings Before Interest & Taxes 7,337,000 5,593,000 7,385,000
Interest Expense 589,000 704,000 442,000
Income Before Taxes 6,748,000 4,889,000 6,943,000
Income Tax Expense 1,938,000 1,141,000 1,892,000
Minority Interest 0 0 0
Net Income from Continuing Op.s 4,810,000 3,748,000 5,051,000
Non-recurring Events:
Discontinued Operations 0 75,000 601,000
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 4,810,000 3,823,000 5,652,000
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 4,810,000 3,823,000 5,652,000
Annual Balance Sheets: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Current Assets:
Cash & Cash Equivalents 383,000 553,000 402,000
Short Term Investments 2,818,000 385,000 0
Net Receivables 1,881,000 2,680,000 1,721,000
Inventory 522,000 828,000 176,000
Other Current Assets 0 0 1,403,000
Total Current Assets 5,604,000 4,446,000 3,702,000
Long-Term Investments 3,749,000 3,722,000 423,000
Property, Plant & Equipt 33,862,000 36,060,000 28,213,000
Goodwill 2,426,000 2,893,000 2,525,000
Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Other Assets 0 0 133,000
Deferred Long Term Asset Charges 0 0 110,000
Total Assets 45,641,000 47,121,000 35,106,000
Current Liabilities:
Accounts Payable 3,602,000 5,664,000 3,420,000
Short/Current Long Term Debt 599,000 910,000 257,000
Other Current Liabilities 0 0 14,000
Total Current Liabilities 4,201,000 6,574,000 3,691,000
Long Term Debt 11,619,000 8,869,000 6,577,000
Other Liabilities 1,878,000 4,898,000 1,132,000
Deferred LT Liability Charges 6,198,000 6,172,000 6,240,000
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 23,896,000 26,513,000 17,640,000
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 4,590,000 4,514,000 4,587,000
Retained Earnings 16,344,000 12,976,000 11,344,000
Treasury Stock 0 0 0
Capital Surplus 0 80,000 160,000
Other Stockholder Equity 811,000 3,038,000 1,375,000
Total Stockholder Equity 21,745,000 20,608,000 17,466,000
Net Tangible Assets 19,319,000 17,715,000 14,941,000
Annual Cash Flow: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Net Income 4,810,000 0 5,652,000
Operating Activites:
Depreciation 6,057,000 3,794,000 3,162,000
Adjustments to Net Income -1,509,000 732,000 -1,052,000
Changes in Accounts Recv'bls 452,000 33,000 3,128,000
Changes in Liabilities -943,000 -83,000 290,000
Changes in Inventories 222,000 42,000 -75,000
Changes in Other Op'ing Actv's -259,000 -16,000 -2,531,000
Total Cash Flow fr Operations 8,830,000 8,250,000 7,973,000
Investing Activities:
Capital Expenditures -8,254,000 -8,737,000 -6,600,000
Investments -178,000 476,000 2,000
Other Cash Flows fr Investing 0 86,000 3,216,000
Total Cash Flows fr Investing -7,528,000 -8,175,000 -3,382,000
Financing Acitivies:
Dividends Paid -1,199,000 -603,000 -304,000
Sale or Purchase of Stock -246,000 -1,849,000 -4,040,000
Net Borrowings 6,000 2,333,000 61,000
Other Cash Flows fr Financing 0 0 -11,000
Total Cash Flows fr Financing -1,439,000 -119,000 -4,294,000
Effect of Exchange Rate Change -33,000 16,000 0
Change in Cash & Cash Equiv.s 0 0 0
ECA EnCana Corp. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 3.0000 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 2.0800 Forward P/E Ratio < 28? 1.4308
Sales Tests:
Price/Sales Ratio < 2.3? 1.2849 Inventory/Sales < 5%? 2.8797
Sales < $1 billion? 0.0333 Operating Margin < 7.5%? 0.2180
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 1.8715
LTD Being Reduced? 1.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.6785 Working Capital >= 1.5? 1.0000
Leverage Ratio < 20%? 3.0000 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 1.0000 Inventory Turnover > 1? 1.0000
Shares Out Decreasing? 0.0000 Market Cap.> 1.5 Billion? 0.0324
Profit Margin > 7.5%? 3.0000
Income Tests:
Dividend Yield > 2.0%? 2.2222 EPS Annual Growth > 10%? 0.0000
Enterprise Value/Revenue: 1.4933 EPS 5-yr Growth > 20%? 0.0000
Enterprise Value/EBITDA: 0.6336 EPS Growth Consistent? 0.6000
EPS Qrtly Growth > 10%? -3.0000 Collection < 45 days? 1.9705
Rev. Qtrly Growth > 15%? -3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 0.0000 Borrowing Int. Rate< 6%? 1.1836
Stock Performance Tests:
Volatility > 25%? 2.3221 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 0.8880 % Held by Institut. < 50? 0.7396
50 Da MA > 200 Da MA? 0.2146 % Held by Institut. > 30? 2.2533
52-Wk Change vs. S&P 500: 0.4840 Short Ratio > 5? 0.8800
Price/Book Value < 3? 2.1100 Short % of Float > 20? 0.0000
Return on Assets > 17%? 0.6576 Average Volume > 100,000? 0.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 3.0000 Positive Free Cash Flow? 0.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: -2.3290
Cash Flow / Assets >.10? 0.0000
ECA EnCana Corp. Overall Zenith Index: 1.1190
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Moving Average Chart |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Encana Corp.:
Symbol? ECA
Total Months Available: 90
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
54.76 34.00 58.34 35.46 59.95 44.01
RANGE = 59.95 TO 34.00 Close = 59.83
CHANNEL = 54.76 TO 44.01 Degree = 4
Volatility = 17.97% Index = 7
Intraday Chart |
20 Days:
1 Day:
The following table details which MACD signals on the preceding chart are best taken. Originally, this was set up for a two-day span, but ten days gives a better sample. Unfortunately, with the 10-day span, the colored lines on the histogram are much harder to read. Both spans are shown above. Red turning into green on the histogram is a buy and green turning into red is a sell, but with the following conditions. The share price must have moved at least 0.2% away from the previous signal price in order to avoid whipsawing. More importantly, the +/- magnitude of the MACD (the blue line, which crosses the red line at signal time) must be greater than the minimum required magnitude indicated below. Otherwise, the signal is ignored. ECA Minimum Magnitude MACD for Action = ± 0.0650 Ticker Day Time Hist. MACD Sig Line Act Price Profit ECA 29 08:54 0.0018 -0.0663 -0.0681 B 56.74 0.00 ECA 29 11:08 -0.0022 0.0737 0.0759 S 57.37 1.11 ECA 30 06:28 0.0013 -0.0221 -0.0234 58.35 3.95 ECA 30 07:04 0.0047 -0.2007 -0.2054 B 57.15 3.95 ECA 30 08:15 -0.0062 0.0845 0.0907 S 57.28 4.18 ECA 30 08:19 0.0025 0.0899 0.0873 B 57.53 3.74 ECA 01 05:00 0.0055 0.0333 0.0278 57.61 3.16 ECA 01 07:18 -0.0010 -0.0865 -0.0856 S 57.06 3.16 ECA 01 08:17 0.0028 -0.1273 -0.1301 B 56.59 3.99 ECA 01 08:35 -0.0047 -0.0854 -0.0807 S 56.28 3.44 ECA 01 08:43 0.0109 -0.0952 -0.1061 B 56.41 3.21 ECA 02 06:17 0.0323 -0.0139 -0.0462 55.00 5.48 ECA 02 06:34 -0.0642 -0.1265 -0.0623 S 54.27 5.48 ECA 02 06:47 0.0175 -0.2346 -0.2522 B 54.90 4.32 ECA 02 07:14 -0.0038 0.1305 0.1344 S 55.60 5.60 ECA 02 07:26 0.0005 0.0672 0.0667 B 55.77 5.29 ECA 02 07:32 -0.0041 0.0727 0.0768 S 55.65 5.08 ECA 02 07:37 0.0032 0.0725 0.0693 B 55.85 4.72 ECA 05 05:12 0.0487 0.0368 -0.0119 55.63 4.75 ECA 05 06:53 -0.0081 0.0916 0.0997 S 55.44 4.75 ECA 05 07:01 0.0059 0.0852 0.0794 B 55.75 4.19 ECA 05 07:52 -0.0007 0.0778 0.0784 S 55.88 4.43 ECA 05 07:56 0.0028 0.0800 0.0772 B 56.01 4.19 ECA 05 08:11 -0.0045 0.1440 0.1484 S 56.34 4.78 ECA 06 06:16 0.0812 0.0427 -0.0386 57.75 7.89 ECA 06 06:49 0.0001 0.1911 0.1910 B 57.66 7.89 ECA 06 06:59 -0.0001 0.1978 0.1979 S 57.85 8.22 ECA 06 07:03 0.0005 0.1940 0.1935 B 58.07 7.84 ECA 06 07:58 -0.0015 0.0816 0.0832 S 58.41 8.42 ECA 06 08:57 0.0039 -0.0817 -0.0856 B 58.12 8.92 ECA 06 11:05 -0.0049 -0.0708 -0.0659 S 57.61 8.04 ECA 06 11:14 0.0155 -0.0699 -0.0854 B 57.77 7.76 ECA 06 12:16 -0.0016 0.0885 0.0901 S 57.98 8.13 ECA 07 06:10 0.0181 0.0009 -0.0171 58.10 8.70 ECA 07 06:54 0.0016 -0.1038 -0.1054 B 57.69 8.70 ECA 08 05:00 0.0775 0.1132 0.0356 58.32 7.75 ECA 08 06:47 -0.0102 0.2124 0.2226 S 58.00 7.75 ECA 08 08:04 0.0038 0.1183 0.1146 B 58.66 6.61 ECA 08 08:16 -0.0025 0.1431 0.1456 S 58.83 6.90 ECA 08 08:35 0.0009 0.1220 0.1210 B 59.24 6.20 ECA 08 09:43 -0.0037 0.0710 0.0747 S 59.52 6.68 ECA 09 06:01 0.0005 -0.0043 -0.0048 59.95 7.87 ECA 09 09:19 0.0042 -0.0858 -0.0900 B 60.18 7.87 ECA 09 09:26 -0.0011 -0.0778 -0.0767 S 60.01 7.59 ECA 12 06:29 0.0938 0.1628 0.0690 61.45 9.70 ECA 12 07:55 0.0009 0.0125 0.0116 61.50 9.70
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The "ultimate systems" are inconclusive, giving no clear confirmed signals.
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | + 1 |
| Zenith Index | - 1 |
| GAAP vs. non-GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | - 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | - 1 |
| Research Reports | 0 |
| Analysts | + 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | - 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | - 1 |
| Moving Average | + 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | + 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | 0 |
| Total | + 11 |
Place 500 shares of EnCana Corp. (ECA) on the Active List.
