Hot Move to Watch: Encana Corporation (NYSE: ECA)

On Friday, Shares of () declined -5.67% to $4.66. The stock traded total volume of 28.807M shares higher than the average volume of 25.39M shares.

Encana (NYSE, TSX: ) recently declared its first quarter 2019 financial and operating results.

First Quarter Summary:

For the first quarter of 2019, Encana posted a net loss of $245.0M, or $0.20 per share. The primary drivers associated with the loss before tax was non-cash unrealized losses on risk management of $427.0M, restructuring costs of $113.0M and acquisition related costs of $31.0M. Non-GAAP operating earnings for the first quarter were $165.0M, or $0.14 per share.

Cash from operating activities for the first quarter was $529.0M. Non-GAAP cash flow was $422.0M, a six percent increase over the comparable period of 2018. Non-GAAP cash flow was influenced by $144.0M of restructuring and acquisition costs.

Through the end of the first quarter, the Company had repurchased 55.90M shares of Encana common stock at an average price of $7.16 per share. Encana has continued to execute the buyback in April and year-to-date has repurchased a total of 91.00M shares at an average price of $7.19 per share. Investment in the program has totaled $654.0M.

At the end of the first quarter, Encana had more than $4.40B of total liquidity counting about $479.0M in cash and cash equivalents and $4.00B available credit on the Company’s undrawn credit facilities.

Encana reiterated its 2019 proforma capital guidance of $2.7 to $2.90B. First quarter proforma upstream capital expenditures totaled $913.0M and were in line with previous expectations. Investment in the first quarter was mainly driven by high activity levels in the Anadarko Basin at the time of the Newfield acquisition close and front-end weighted capital programs in the other assets.

ECA has the market capitalization of $7.14B and its EPS growth ratio for the past five years was 28.30%. The return on assets ratio of the Company was 4.00% while its return on investment ratio stands at 13.40%. Price to sales ratio was 1.22 while 67.20% of the stock was owned by institutional investors.

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