This segment is from Tuesday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.
Encana Corp. (NYSE:ECA) is taking a page out of Chesapeake Energy's (NYSE:CHK) book, as Canada's largest natural gas company announced plans to reduce its workforce by 20%. With natural gas prices remaining depressed and no relief on the horizon, conserving cash is a top priority as both Encana and Chesapeake look to invest their cash in the highest ROI plays in their portfolios.
While Encana plans on trimming costs and focusing on 5 oil heavy plans in 2014, Chesapeake Energy is now two quarters into its restructuring plans. If Encana mimics Chesapeake's lead, shareholders could finally be in for some gains.
Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.