Encana Corporation Should Focus on its Debt Load
At the beginning of the year, the Canadian oil and gas producer Encana Corporation (NYSE: ECA) acquired Newfield Exploration in a $5.5 billion all-stock transaction.
Encana's goal was to diversify its production away from the challenging Canadian oil and gas environment. And, despite the extra $2.2 billion debt that came with the deal, management increased the dividend and extended the share buyback program.
A few weeks ago, Encana reported its first earnings with the full contribution of its Newfield assets. Given the importance of the transaction, the results provided an opportunity for a closer look at the performance of the company and discuss the capital allocation decisions.
Source Fool.com
