Encana is a large North American onshore producer of natural gas and crude oil, with major operations in Alberta, Canada (oil sands) and the United States. ECA's other operations include the transportation and marketing of crude oil, natural gas and natural gas liquids (NGLs), as well as the refining of crude oil and the marketing of petroleum by-products. ECA was the largest producer of natural gas in North America last year.

While divesting oversea operations, Encana is still adding to assets through both acquisition of high-grade fossil fuel property and smart extraction techniques - all in the relative safety of North America. In short, the management team in place within Encana is using, producing and expanding assets better than almost any other company within their sector. A Chesapeake Energy (CHK) it is not - and that is a good thing.

Trading at $50.99/share, ECA has popped up the past few weeks, but I believe it is a great long term play on oil and natural gas. I would use any pullback into the mid-40's as a solid entry point.

Sporting a 3.12% yield, this $38.5b US company is trading at a PE of only 5.8. Encana deserves strong consideration as a stand-alone stock representing the fossil fuel sector.

While I have been preaching ETFs, preferred stocks and inflation-protected securities over recent months, ECA has been traded in and out of my Speculative Portfolio over the past few years. It has made me good money. Recently, I have purchased it (cost basis around $42.) with the intention of holding ECA for the long term.

The market, despite the record run up the past two months is still froth with uncertainty and potential setbacks. Holding a few quality holdings like Encana in addition to your safety net is a worthwhile consideration.