Encana To Add Oil to Its Inventory

Link here.

With natural gas making up 96% of its total production volumes and liquids prices commanding a stout premium over gas, Encana Corp. has begun to position itself to take more advantage of higher-value liquids plays.

The company is directing $1 billion of its 2011 budget towards activities that will increase future liquids recovery in North America, Randy Eresman, president and chief executive officer, told investors on the first quarter conference call in mid-April.

It might have been a year ago, I forget when I posted it, but I said that when natural gas hits $5.00, these natural gas companies will start to show some excitement. We are closing in on $5.00 natural gas. This is a dynamic link with commodity prices, and today natural gas is about $4.79, another recent high, I think.