NEW YORK (TheStreet) -- Shares of Encana Corp. (ECA) are up 7.92% to $12.54 after the company announced plans to increase spending next year, even as it lowered its forecast for oil prices and cash flow, Bloomberg reports.
Capital investment for 2015 will be $2.7 billion to $2.9 billion, up from this year's $2.5 billion to $2.6 billion, Bloomberg said.
Encana said it is assuming West Texas Intermediate crude oil prices would average $70 a barrel next year, down from a $95 forecast issued last month, according to Bloomberg.
Total cash flow is expected to drop to $2.5 billion to $2.7 billion next year from a forecast of $3.2 billion to $3.3 billion in 2014, the company said.
Crude oil futures hit fresh five-year lows on Tuesday, extending a six-month selloff as slowing Chinese factory activity and weakening emerging-market currencies added to concerns about demand, CNBC reported.
Brent crude was down 3.36% to $59.01 a barrel at 10:04 a.m. in New York. Brent's low of the session was $58.50, a level it has not touched since June, 3, 2009, when it dipped to $58.41.
The five-year low for crude dragged Encana stock down to a 52-week low of $11.44 before it rebounded in early morning trading.
Separately, TheStreet Ratings team rates ENCANA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: