NEW YORK (TheStreet) -- Encana's (ECA) - Get Encana Corporation Report stock rating was raised to "neutral" from "underperform" at Macquarie based on its updated production outlook and higher cash flow estimates, according to TheFly.
Encana late yesterday said it cut $50 million total in production and mineral taxes, and operating, processing and transportation costs.
The company now expects to spend between $1.1 billion and $1.2 billion on capital investments in 2016.
Full-year production will be in the range of 340,000 to 360,000 barrels of oil equivalent per day.
BMO Capital Markets subsequently lifted Encana's price target to $14 from $12 and maintained its "outperform" rating, noting that the production clarity "sets the stage" for further re-rating of its stock.
Additionally, oil prices rose to four-month highs Thursday amid expectations that global producers will agree to cut supply.
Crude oil (WTI) was climbing 1.04% to $50.35 per barrel and Brent crude was increasing 1.23% to $52.5 Thursday afternoon.
Encana is a natural gas, oil and natural gas liquids producer.
Shares of Encana were sliding in early-afternoon trading on Thursday.
Separately, 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.
The team rates Encana 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 and weak operating cash flow.
You can view the full analysis from the report here: ECA