BUZZ-Encana Corp: Sells natgas assets for $850 mln, analyst calls deal "positive"

Tue Aug 25, 2015 10:44am EDT
 
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** Canadian energy company's shares up 8.54 pct at C$8.39, among top gainers on the S&P/TSX energy index

** Encana's U.S.-listed shares up 8.7 pct at $6.34

** Encana says to sell its Haynesville, northern Louisiana natural gas assets for $850 mln as part of broader plan to sell its natgas holding to focus on oil

** "Given the current commodity environment we continue to believe that today's transaction is a positive one for Encana," AltaCorp Capital analysts say

** 6 of 14 brokerages covering Encana rate the stock "buy" or higher and 8 "hold"; their median PT is $12

** S&P/TSX energy index is up 3.6 pct Tuesday after four days of losses, mirroring the move in Brent prices ; U.S. crude was up 2.5 pct and Brent crude up 1.8 pct

** Through Monday, Encana had fallen about 52 pct this year vs a 25.2 pct drop in Brent prices and an 8 pct decline in natgas prices