BP - Encana: Newfield Acquisition Is Not Priced In
Encana (ECA) is a prolific unconventional oil, gas and NGL producer. After a now approved merger with Newfield Exploration (NFX), it will be among the largest producers in North America.
Encana’s stock has been trading lower since the merger announcement on analyst and investor scrutiny. Complicating matters was the steep Q4 2018 plunge in oil prices, as well as a significant correction in stocks.
The supply/demand situation has improved for oil, pushing prices higher. The stock market has also started to recover sharply. Money flows into stocks, though, are largely dependent