Liquids Up, Stock Down at EnCana Corporation (USA) (ECA)

Even smaller players such as Magnum Hunter Resources Corp (NYSE:MHR) are turning their focus almost entirely to liquids production. Its $300 million capital budget for 2013 will be focused on the liquids-rich areas of the Bakken, Eagle Ford, and Marcellus. Magnum expects these investments to drive a 24% to 35% jump in production. This will help shift the company’s production firmly on the liquids side of things.

So, as you can see, Encana is in good company as it continues to invest to grow its liquids production. While the stock’s recent decline probably doesn’t sit well with investors, those who stick around for the long term should see brighter days ahead. You also have to give the company credit for investing in natural gas at what could be the low end of the cycle. These investments today could pay off big time down the road.

The article Liquids Up, Stock Down at This Energy Producer originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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