NEW YORK (TheStreet) -- Shares of Encana Corp. (ECA) are up 4.61% to $23.81 after the Calgary-based energy producer announced today that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc., reached an agreement with an undisclosed purchaser, to sell certain properties located primarily in Leon and Robertson counties of East Texas for approximately $530 million.
"Consistent with our strategy, this transaction builds on our efforts to unlock value from properties within our massive asset base," says Doug Suttles, Encana President & CEO. "We remain focused on developing our core growth plays and extracting additional value from our base assets."
This sale is expected to close in the second quarter of 2014 with an effective date of April 1, 2014.
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 expanding profit margins, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk."