Encana (ECA) Stock Soars on Q2 Earnings Beat
NEW YORK (TheStreet) -- Shares of Encana (ECA) - Get Report are higher by 9.28% to $8.71 this morning after the company reported higher-than-expected earnings for the 2016 second quarter.
Encana reported earnings of 10 cents per share vs. estimates of an 8 cent-loss per share, and revenue for the quarter (net of royalties) of $364 million vs. estimates of $775.32 million, according to Zack's.
"By reinvesting savings and modestly increasing capital, we are adding 50 percent more drilling and completions activity to our 2016 program," CEO Doug Suttles said in a company statement.
The Calgary-based drilling company said it lowered drilling costs by 30% over the 2015 average and expects cost reductions to continue throughout 2016
Encana has been selling assets to focus on its core areas. Divestures in the Gordondale and DJ Basins are expected to close by the end of the month, delivering proceeds of approximately $1.1 billion.
Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: ECA
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.