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.