NEW YORK (TheStreet) -- Shares of Encana (ECA) are soaring, up 7.92% to $12.54 on heavy trading volume on Tuesday afternoon, following the company's announcement that it plans to increase spending in 2015, despite lowering its forecast for oil prices and cash flow, Bloomberg reports.
The company said capital investment for next year will be in a range of $2.7 billion to $2.9 billion, higher than this year's $2.5 billion to $2.6 billion, Bloomberg added.
The move comes as other oil producers cut back on spending as oil prices reach five-year lows.
Encana lowered its forecast for oil, saying it expects WTI crude to average $70 per barrel in 2015, lower than the $95 forecast issued last month, Bloomberg noted.
The company also revealed that its total cash flow is expected to fall to a range between $2.5 billion to $2.7 billion in 2015 from a forecast of between $3.2 billion to $3.3 billion in 2014.
Canada-based Encana is a North American energy producer with other operations including the transportation and marketing of natural gas, oil and natural gas liquids.
About 11.57 million shares of Encana have traded hands as of 3:10 p.m. today, compared to its average daily trading volume of about 7.07 million shares.
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: