Encana (ECA) Update - July 11
Posted: Thu Jul 11, 2019 7:11 pm
In the last 3 months, 7 ranked analysts set 12-month price targets for ECA that range from $6.50 to $12.00. The average price target among the analysts is $9.10.
First Call's price target is $9.69, but it is the average of 27 Wall Street analysts' reports with 20 of them dated prior to the company's Q1 results.
First Call's EPS and operating CFPS estimates are not properly adjusted for the new shares issued to acquire Newfield.
My forecast is based on full year production slight higher than the midpoint of their production guidance (560,000 to 600,000 Boepd with a mix of 45% natural gas, 30% crude oil and 25% NGLs). If the company is able to reach the high end of their production guidance then my forecast for 2020 is much too low.
The merger with NFX closed on 2/13/2019. We should get much more precise production guidance after they announce Q2 results; the first full quarter of post-merger results.
Read this article https://finance.yahoo.com/news/encana-e ... 02231.html and you will see that Encana has a history of under-promising and then over-delivering when it comes to production guidance.
If you look at my Q3 and Q4 forecasts you will see that there is a good chance that Encana can fund all of its capex with cash flow from operations if their realized oil price is $60/bbl.
First Call's price target is $9.69, but it is the average of 27 Wall Street analysts' reports with 20 of them dated prior to the company's Q1 results.
First Call's EPS and operating CFPS estimates are not properly adjusted for the new shares issued to acquire Newfield.
My forecast is based on full year production slight higher than the midpoint of their production guidance (560,000 to 600,000 Boepd with a mix of 45% natural gas, 30% crude oil and 25% NGLs). If the company is able to reach the high end of their production guidance then my forecast for 2020 is much too low.
The merger with NFX closed on 2/13/2019. We should get much more precise production guidance after they announce Q2 results; the first full quarter of post-merger results.
Read this article https://finance.yahoo.com/news/encana-e ... 02231.html and you will see that Encana has a history of under-promising and then over-delivering when it comes to production guidance.
If you look at my Q3 and Q4 forecasts you will see that there is a good chance that Encana can fund all of its capex with cash flow from operations if their realized oil price is $60/bbl.