ENCANA Price Target : 19 (Credit Suisse)
So, I was reading few pages of ER report from Credit Siisse on ENCANA their price target for 2013 is US$19.
Considering ENCANA has all gas assest and they are trying to focus on crude instead of gas. I dont think 19 is a good target price for 2013...
Reason ENCANA split in to ENC and CEN is to divide oil and gas operations. Now they are in panic state after gas price are gone down.
Your views :)
Thanks
| +72 | Q&A - Buyside Equity Research Analyst/PM | 27 | 5d | |
| +31 | How the heck do you learn all of this stuff? | 5 | 2d | |
| +28 | Getting Frustrated | 10 | 2w | |
| +27 | My experience on the sell side | 20 | 1w | |
| +22 | What’s my next move? | 6 | 2w | |
| +20 | Vanderbilt vs. Notre Dame M.S. in Finance Equity Research placement | 10 | 3w | |
| +19 | CS Major looking to switch and break into high finance - is it over for me? | 6 | 3w | |
| +18 | Biotech ER vs IB | 16 | 2w | |
| +14 | Heard they don’t model at Oppenheimer | 10 | 1w | |
| +13 | ER time line and ways to break in help | 17 | 2w |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Thats a tough call. I don't see much upside in ECA for 2012-2013.
-ECA continues to operate at low net margins 1% v 6.7 industry average. -Also one thing to take a look at is that Encana is also hedged in energy futures but this hedges are set to expire at the end of the year. -The hedges will allow Encana to sell two thirds of its production for $5.80 per thousand cubic feet. Only a sixth of its production will be hedged for 2013.
Of course there also is the Natural Gas Act that doesn't look like it will be passed anytime soon.
I would stay cash on this one.
Hedging helped ENC but it wont be there for long, I think share price can drop to 17$ next year. 1st Quarter was bad with price average $2.74 but ENC received $4.58. ENC is trying to put the production down by 20%, but I dont think it will help a lot. I will probably shell out some money at 17$ not before that...
So company announce expenditure of 2013 of $4-$5 billion and the cash flows are between 2.5 and 3.5. They are trying to rid of some asset of gas and trying to get crude...
I think i forget to mention that ENC seems to bet on NGL Liquid and their main consumer will be Asian countries. They own more than 30 of proposed terminal in BC from where they are planning to send NGL to Asia. In Asia gas is selling at the rate of $9.5 which is profitable. This is another reason why oil companies are trying to focus on countries like Thailand and Malaysia.
I think i forget to mention that ENC seems to bet on NGL Liquid and their main consumer will be Asian countries. They own more than 30 of proposed terminal in BC from where they are planning to send NGL to Asia. In Asia gas is selling at the rate of $9.5 which is profitable. This is another reason why oil companies are trying to focus on countries like Thailand and Malaysia.
I think i forget to mention that ENC seems to bet on NGL Liquid and their main consumer will be Asian countries. They own more than 30 of proposed terminal in BC from where they are planning to send NGL to Asia. In Asia gas is selling at the rate of $9.5 which is profitable. This is another reason why oil companies are trying to focus on countries like Thailand and Malaysia.
Molestias corporis voluptates natus magni aut autem dolorem. Consectetur expedita minima unde deleniti omnis at et. Non eum consequatur quis inventore. Tempore quo vel et expedita.
Sint dolorem magnam cum minima magnam. Nihil voluptatem et pariatur et tempora omnis. Reiciendis et architecto rem iste culpa accusamus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...