Falling natural gas prices have not been kind to shareholders of EnCana (NYSE:ECA). While shares of the beleaguered Canadian giant have bounced back from their lows, they still are well below historical highs.
Pickens’ bullish natural gas call — if it comes true — will be a welcome sign for EnCana, which has operations entirely in Canada and United States. Low dry-gas prices have been a yoke around the E&P firm’s neck for roughly a year. EnCana has moved into more liquids-rich plays such as Canada’s Duvernay Shale, but the bulk of its drilling programs still focus on dry-gas. Any rise in price will have an immediate effect on its bottom line.
InvestorPlace technician Sam Collins recently highlighted EnCana as a buy, as ECA shares have now exhibited a strong long-term buy signal called a “golden cross.” EnCana also is an attractive proposition for income investors, as it currently yields 3.6% in dividends.