Thursday, April 22, 2010

EnCana (TSE:ECA) Production Goals Doubled

Even though natural gas prices are depressed at this time, EnCana (TSE:ECA)(NYSE:ECA) Corp. leadership says they're going to continue with their goal of doubling production over the next five years.

CEO Randy Eresman said on the earnings call of the company that even though natural gas prices are below $4 per million BTUs, that won't last forever, and eventually prices will rise again.

"We believe that the current low-price environment is unsustainable," he said. "We expect to see price improvements in the future, but that may take some time to unfold. We'll continue to maintain a longer-term perspective in how we execute our strategy."

Assuming Encana achieves their production goal, they will supply close to 10 percent of all natural gas used in North America at that time.

As far as natural gas prices go, Eresman is right, and eventually they will go up again, and Encana and other smart players in the game should reap solid rewards for some time, along with their shareholders.

Encana is a long-term play though, and needs to be considered that if investing in the company.

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