The Canadian oil and natural gas producer is contending with about $5.4 billion in fixed and revolving debt.
The company recently reduced its 2016 capital spending forecast by 55% from the year-ago period.
Encana also sold shares worth $1.08 billion and reached agreements to sell roughly $2.8 billion in assets last year.
"Despite this, there's still a perception in the market that Encana are over levered," a source told Reuters, adding that an equity sale is not necessarily an option since it would be highly dilutive for the company.
Shares closed down by 14.50% to $5.22 in today's trading session as oil prices tumbled on expectations for a weekly increase in U.S. stockpiles.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Encana's weaknesses include its deteriorating net income, disappointing return on equity, weak operating cash flow, 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
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 article's author.