NEW YORK (TheStreet) -- Shares of Encana (ECA) - Get Report were gaining 3.8% to $13.52 Wednesday after the oil company reported its fourth quarter results and lowered its 2015 capital expenditure forecast as oil prices rise.
Encana reported earnings of 5 cents a share, missing the Capital IQ Consensus Estimate of 21 cents a share for the quarter.
The oil producer lowered its 2015 capital expenditure budget to between $2 billion and $2.5 billion, down from its previous forecast of $2.7 billion to $2.9 billion. Encana said its previous capital expenditure budget was based on an oil price of $70 a barrel for West Texas crude, and that its new budget is based on oil prices of $50 a barrel.
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Encana said it expects cash flow of $1.4 billion to $1.6 billion for 2015, down from its previous estimate of $2.5 billion to $2.7 billion for the year.
Rising oil prices may have contributed to Encana's rising share price. WTI crude oil for April delivery was gaining 1.2% to $49.87 Wednesday afternoon, and Brent crude oil for April delivery was gaining 2% to $59.82 a barrel.
TheStreet Ratings team rates ENCANA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENCANA CORP (ECA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."
You can view the full analysis from the report here: ECA Ratings Report