Encana (NYSE:ECA) is a Canadian natural gas play that has underperformed significantly lately despite the rise in gas prices. It’s actually in the red year-to-date in part because it just posted a pretty steep loss for fiscal 2012 in February.
However, on the plus side, Encana boasts $3.2 billion in cash and equivalents on the books and is projected to finish soundly in the black this year, followed by continued improvement in fiscal 2014. Longer-term, there’s big potential for future growth since Canada is aiming to become a major LNG exporter to the U.S. and abroad.
ECA stock trades at about 15 times forward earnings. Throw in a 4.3% dividend, and you have a pretty good long-term play here.