RE:GDP up 5% premarket after yesterday's 9.7% jumpThis is most puzzling. Somehow, Q2 did not go down well. In hindsight, I wish they had given some well specific info, in particular from the TMS. They could have also announced an increase in dividend and/or share repurchase. I think that is coming as soon as they close Big Horn this quarter.
During the call, the COO was very confident, saying that they were totally on track to declare the TMS commercially profitable by year end. With those wells, no wonder! I guess they wanted to make a splash but instead created just a bit more uncertainty. The CEO was also extremely confident saying they did not have coffers large enough for all the money they were making...
The call announced that they were on track to meet their 2017 goals within the coming year! And increased operational cash flows for 2014 to $3.5Bn...They announced a ramping up of production in the Duvernay, a ramping up of production in the San Juan (one extra rig), the best well to date in the DJ Basin (see our neighbor BCEI for more details on how good that play is), a massive ramping up in the Eagleford (from two inherited by Freeport McMoran to six next year), refrack results that have the potential to have millions of capex at more than 100% IRRs...also announced that their latest wells from the Montney are 100% above type curve....
What else can we say? Oh yes since the call, Colorado removed the ban on fracking from the ballot. And yes, I will repeat, the TMS wells announced via GDP let the cat out of the bag: TMS is on its way to be a very profitable play for Encana.
Today, Moody's came out with a very positive report stating that their investment grade is confirmed and on a positive trajectory.
Lastly, PSK is trading at $40!
And yet stock is down 3% since the call...make your own conclusions...