|
NEW YORK (AP) -- Shares of EnCana Corp. rose Wednesday after the oil and gas company said it would double its dividend next year, though analysts indicated its production growth forecast did not surpass expectations. EnCana stock rose $2.33, or 3.6 percent, to $67.58 after the company said it would issue a $1.60 dividend in 2008. The broader market also increased, with the Dow Industrials, Nasdaq and S&P 500 Index all making gains above 1 percent. Goldman Sachs analyst Brian Singer said EnCana's production growth target of about 5 percent a year was in line with his expectations. However, he maintained a "Sell" rating for its stock in a note Wednesday because of the company's valuation. Deutsche Bank analyst Shannon Nome reduced her 2008 earnings estimate for EnCana by 2 percent in a note Wednesday. Nome expected the company to post production growth of about 7 percent, on lower capital expenditures. "While we found the updated outlook to be a bit disappointing," Nome said, "we suspect that this return of capital to shareholders will support the stock in near-term trading." EnCana plans to increase its capital expenditures about 13 percent next year to $6.9 billion, as part of an effort to boost natural-gas production and develop other long-term projects.
|