Issuing 107 mm shares at US$9.35/share to fund 2017 Permian drilling and reduce indebtedness. Management likely wants to lock in development plans for the Permian regardless of oil price for 2017e, given the apparent unlikelihood of any more asset sales to bridge the funding gap. The shares are up 228% since their February lows – timing likely seemed opportune to Encana. No change to our Market Perform ranking and US$8.00/share target price.
20 Sep 2016
Issuing Shares to Fund 2017 Permian Program & Reduce Debt
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Issuing Shares to Fund 2017 Permian Program & Reduce Debt
Encana (ECA:TSE) | 0 0 (-1.2%) | Mkt Cap: 13,467m
- Published:
20 Sep 2016 -
Author:
Michael P. Dunn -
Pages:
6
Issuing 107 mm shares at US$9.35/share to fund 2017 Permian drilling and reduce indebtedness. Management likely wants to lock in development plans for the Permian regardless of oil price for 2017e, given the apparent unlikelihood of any more asset sales to bridge the funding gap. The shares are up 228% since their February lows – timing likely seemed opportune to Encana. No change to our Market Perform ranking and US$8.00/share target price.