EnCana Also Has Hidden Asset Potential

Article Excerpt

ENCANA CORP. $62 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 755.4 million; Market cap: $46.8 billion; SI Rating: Average) gets about 80% of its total production from natural gas. The company’s oil sands projects in Alberta account for the remaining 20%. The company recently folded its oil sands operations into two joint ventures with U.S.-based ConocoPhillips. That sped up the development of these assets, and cut EnCana’s costs. Last year, EnCana considered converting its oil sands holdings into an income trust. But Ottawa’s move to tax trusts in 2011 killed that plan. It’s possible EnCana may simply hand out shares in this business to its shareholders. EnCana is a buy. buy…