Encana Earnings Rise With Oil and Liquids Production

Canadian Energy natural gas producer Encana Corp reported higher first quarter earnings before the market Tuesday. $ECA total oil and liquids production rose in the Permian, Montney, Eagle Ford and Duvernay.

Canadian Energy natural gas producer Encana Corp reported higher first quarter earnings before the market Tuesday. $ECA total oil and liquids production rose in the Permian, Montney, Eagle Ford and Duvernay.

Encana montney map

The Calgary, Alberta based company have cut costs further as drilling and completion costs continue to fall. 

Earnings: 

Earnings of 16 cents per share, ahead of Consensus 13 cents. EPS improved from 11 cents per share reported in the year-ago quarter. Quarterly revenues of $1,313 million  topped  consensus estimates of $1,110 million. Revenues were also higher than the prior-year figure of $1,289 million.

Encana Corp NYSE: $ECA

Reaction · May 1, 10:15 AM EDT 12.61 ▲ 0.15 (+1.16%)

Production 

Production growth from its core assets: Permian, Montney, Eagle Ford and Duvernay accounted for 94.8% of Encana’s total production, with Montney assets accounting for more than half of its output.

  • Total first-quarter production came in at 324,400 barrels of oil equivalent per day (BOE/d), compared with 317,900 BOE/d in the prior-year quarter.
  • Quarterly natural gas production declined approximately 13% year over year to 1,075 million cubic feet per day
  • Liquids production rose 31% from the prior-year quarter to 145.2 thousand barrels per day. 

Encana montney

Prices

  • Encana’s realized natural gas price was $2.94 per thousand cubic feet, compared with the year-ago quarter level of $2.50.
  • Realized oil price rose to $55.74 per barrel from $49.66 in the first quarter of 2017.

Costs & Expenses

Total operating expenses increased 22% from first-quarter 2017 to $976 million. Primarily from an increase in depreciation charges and higher purchased products costs.

Cash and Balance Sheet

  • Encana’s capital investments during the quarter were $509 million.
  • As of Mar 31, 2018, cash and cash equivalents were $433 million and long-term debt was $4,198 million.
  • The debt-to-capitalization ratio stood at 38.25%.

About Encana Corporation

Encana is a leading North American energy producer that is focused on developing its strong portfolio of resource plays, held directly and indirectly through its subsidiaries, producing oil, natural gas liquids (NGLs) and natural gas. By partnering with employees, community organizations and other businesses, Encana contributes to the strength and sustainability of the communities where it operates. Encana common shares trade on the Toronto and New York stock exchanges under the symbol ECA.

Source: Encana 

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