Have you looked at ECA? Not exactly a pure NG resource, but ECA owns interests in resource plays that primarily include the Greater Sierra, Cutbank Ridge, Bighorn, and Coalbed Methane resource plays located in British Columbia and Alberta, as well as the Deep Panuke natural gas project offshore Nova Scotia in Canada. It also holds interests in resource plays comprising the Jonah in southwest Wyoming, Piceance in northwest Colorado, Haynesville in Louisiana, and Texas resource play, including east Texas and north Texas.
4% yield. Canada will take 15% of that unless it's in an IRA however.
60% of EnCana's 2012 production is hedged at $5.80/mmbtu level. Hard to imagine next winter will be as warm.
Meanwhile, ECA is one of the most efficient producers in North America which means it could survive this shake out better than most.
The stock looks like it has built technical support at slightly lower price levels, and "I love buying straw hats in the winter."
What is worrisome is the fact that ECA has cut 250 million cubic feet of daily North American production and could cut by up to 600 million cubic feet, or 20% of last year's output since it is unprofitable. |
