The company said it would increase spending to a range of $2.7 billion to $2.9 billion in 2015 from a range of $2.5 billion to $2.6 billion in 2014. Encana made the announcement despite decreasing its outlook for oil prices and cash flow.
Recovering oil prices also helped the stock Wednesday. Brent crude hit an intraday low of $58.71 a barrel on London's ICE Futures exchange, according to the Wall Street Journal. But Brent rallied to 0.98% to $60.60 at 11:42 a.m., according to CNBC.
Oil prices have plummeted nearly 50% since the summer amid a global oversupply. Oil producers are continuing to increase production despite the supply glut and weakening demand.
The American Petroleum Institute published data late Tuesday that indicated a surprise 1.9 million barrel rise in weekly U.S. oil stockpiles. The U.S. Energy Information Administration is scheduled to publish stockpile data on Wednesday.
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:
"We rate ENCANA CORP (ECA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."