Calgary-based Encana is an energy producer, engaged in the exploration, development, production and marketing of natural gas, oil and natural gas liquids.
"Our time with management lent greater confidence to the quality of Encana's high-graded portfolio as Encana continues to lower debt and improve its ability to fund itself," Jefferies analysts said in an investor note. The firm recently hosted an investor meeting with Encana in New York City.
Crude oil (WTI) is currently flat at $48.31 per barrel. Brent oil is down 0.08% to $49.24 per barrel.
Oil prices steadied early Wednesday morning, coming off of earlier week highs. The recent rally in oil was due to lower expectations for U.S. Crude stockpiles, wildfire threats on Canadian oil supplies and worries about U.S. oil supply outages in Libya and Nigeria, Reuters reports.
Analysts did not expect a two-day rally in oil prices to continue, according to Reuters.
Separately, TheStreet Ratings rated Encana as a "sell" with a score of D.
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. TheStreet Ratings has this to say about the recommendation:
This is driven by a few notable weaknesses, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks that are covered.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: ECA