Encana Corp (USA) (NYSE:ECA) received a stock rating upgrade from Barclays on Oct-11-16. In a note to investors, the firm issued an Overweight rating and hiked the target price on the stock from $10 to $14. The analysts previously had an Equal Weight rating on the stock.
Analysts have a consensus target price of $11.95 in the 12-month period. The price objective is 7.85% higher than the recent closing price of $11.08. The 52-week price range is $2.98-$11.31 and the company has a market capitalization of $10.60 billion. Analysts covering the shares maintain a consensus Buy rating, according to Zacks Investment Research. 3 analyst has rated the stock with a sell rating, 8 has assigned a hold rating, 2 says it’s a buy, and 6 have assigned a strong buy rating to the company.
Encana Corp (USA) (ECA) on September 23, 2016 announced the completion of its public offering (“Offering”) of 107,000,000 common shares (“Shares”) of Encana at a price of US$9.35 per Share, for gross proceeds to Encana of approximately US$1 billion. In connection with the Offering, Encana has granted the underwriters, led by Credit Suisse Securities (Canada), Inc. and J.P. Morgan, a 30-day over-allotment option to purchase up to 16,050,000 additional Shares.
Encana intends to use approximately half of the net proceeds received from the sale of the Shares to fund a portion of its 2017 capital program. The remaining proceeds will be used to enhance Encana’s balance sheet flexibility by repaying indebtedness under its credit facilities. The majority of the 2017 capital program is expected to be allocated to growing Encana’s Permian production through increasing the number of rigs in the play, which is expected to result in approximately two times as many Permian wells on stream in 2017 as compared to 2016. The allocation of proceeds may vary depending upon numerous factors, including changes in commodity prices and increased capital efficiency.
The Offering was made by means of a base prospectus and related prospectus supplements. Encana previously filed with the securities commission in each of the provinces and territories of Canada a shelf prospectus and a registration statement with the United States Securities and Exchange Commission (the “SEC”), which has become effective under the Securities Act of 1933, as amended. Prospectus supplements describing the Offering were filed with the securities regulatory authorities in each of the provinces and territories of Canada and with the SEC. The prospectuses and the related prospectus supplements contain important detailed information about the securities being offered. Before investing, you should read the prospectuses, the prospectus supplements and other documents filed with the securities regulatory authorities in each of the provinces and territories of Canada and the SEC for information about Encana and this Offering. Copies of the prospectuses and related prospectus supplements may be obtained: in Canada from Credit Suisse Securities (Canada), Inc., Prospectus Department (416-352-4520), 1 First Canadian Place Suite 2900, P.O. Box 301, Toronto, Ontario, Canada, M5X 1C9 and in the United States from Credit Suisse Securities (USA) LLC, Prospectus Department (1-800-221-1037), One Madison Avenue, New York, New York 10010, email: firstname.lastname@example.org; and J.P. Morgan, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 866-803-9204, email: email@example.com. You may also obtain these documents free of charge by visiting the SEC’s website at www.sec.gov or SEDAR at www.sedar.com.
This news release does not provide full disclosure of all material facts relating to the securities offered. Investors should read the prospectuses, any amendments and the prospectus supplements for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.