EnCana Corp (NYSE:ECA) is about to release earnings. Ponder this Bear Case Scenario:
Persistent low gas prices are hampering EnCana’s ability to deliver shareholder wealth. Fracking is not helping EnCana.
Gas oriented companies have fallen out of favour compared to oil based companies. Multiples have reduced.
Some of EnCana’s reserves are in isolated areas well away from markets. Low prices and large capital costs stand in the way.
George Gutowski writes from a caveat emptor perspective.