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by Stockwatch Business Reporter

West Texas Intermediate crude for December delivery added $1.95 to $47.49 on the New York Merc, while Brent for January added $2.24 to $49.02 (all figures in this para U.S.). Western Canadian Select traded at a discount of $15.25 to WTI ($32.24), up from a discount of $15.40. Natural gas for December added 12 cents to $2.97. The TSX energy index added 6.74 points to close at 217.55.

EnCana Corp. (ECA) added 59 cents to $16.37 on 10.8 million shares. Its stock was as low as $12.02 on Nov. 2, but started to soar in the wake of its third quarter financials on Nov. 3, a trend that EnCana strove to prop up during its recent institutional investor meetings in Toronto and Montreal. Analyst Menno Hulshof of TD Securities, which hosted the meetings, summarized them in a new research note that emphasized EnCana's "upbeat tone." The company reckons that it has done a good job promoting its business plan, says Mr. Hulshof. The plan revolves around four core plays, which are the Montney and the Duvernay in Western Canada and the Permian and the Eagle Ford in Texas. These contributed 242,800 barrels of oil equivalent a day in the third quarter, or nearly three-quarters of EnCana's total production of 338,000 barrels a day. In early October, EnCana unveiled a five-year plan to boost its total production by 60 per cent and have the four core plays contribute 90 per cent of that total, thanks to forecast increases in the Permian and the Montney. This ambitious plan drew a lot of attention during the institutional meetings. EnCana responded by highlighting its "efficiency and optimization trends," as Mr. Hulshof put it. These appear to include technology improvements and cost savings. EnCana estimated that 70 per cent of its savings are permanent, meaning they will not be lost once oil prices recover and service costs go up. It does not expect inflation to be a factor in the near term. In fact, in the near term EnCana sees a "slight directional positive" -- Mr. Hulshof's words -- in the form of Donald Trump's becoming President of the United States. Mr. Trump has yet to detail his energy policies, but EnCana is hopeful that they will result in: (i) higher demand for natural gas, assuming that current clean energy laws are amended; (ii) improved access to federal lands, although most of EnCana's activity is currently on private lands; and (iii) expedited regulatory permits, for both upstream and mid-stream activities.

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