Monday, December 14, 2009

Shares of EnCana, shale firms, jump on XTO offer

Reuters says that ECA "rose as much as 8.7 percent Monday as invesotrs bid up shares of unconventional gas producers in the wake of Exxon's $30 billion offer for XTO".

"Analysts said that the Exxon offer will boost the value of companies with shale gas assets."

"It's re-pricing unconventional gas in the United States," said Martin Molyneaux, an analyst at FirstEnergy Capital. "The largest oil company in the world thinks there's a ton of upside in unconventional gas."

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