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Canadian Energy natural gas producer Encana Corp reported higher second quarter earnings before the market Wednesday. $ECA total oil and liquids production rose to a record high from its core Anadarko and Permian holdings.

Encana montney map

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

Encana Corp NYSE: ECA Reported Earnings Before Open Wednesday

$0.21 Beat $0.17 EPS AND $2.06 B Beat $1.693 Billion Revenue Forecast

Earnings

Encana reported second quarter earnings on Wednesda Encana (ECA) came out with quarterly earnings of $0.21 per share, beating the consensus Estimate of $0.17 per share. This compares to earnings of $0.21 per share a year ago.

ECA posted revenues of $2.06 billion for the quarter ended June 2019, surpassing the consensus Estimate by 17.73%. This compares to year-ago revenues of $983 million. 

Encana Corp NYSE: ECA 

Market Reaction Pre Market  $4.60 USD +0.21 (+4.91%)

Highlights

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

  • Q2 total production rose 11% Y/Y on a pro forma basis to 591.8K boe/day, with oil and natural gas liquids production increasing 16% to 324K bbl/day;
  • ECA's realized price for oil and NGLs in the quarter rose 3.7% Y/Y to $60.14/bbl.
  • ECA says it continues to enhance returns in Anadarko's STACK play through additional reductions in completed well costs; since closing the Newfield acquisition in February, average well costs have been reduced to $6.5M from $7.9M.
  • ECA says free cash flow climbed to $127M in the quarter, and the company says it expects to generate significant free cash flow in H2 at current commodity prices.

Encana montney

Outlook

ECA expects $500M-$600M in capital spending during H2, with overall production of 565K–585K boe/day, excluding volumes from Arkoma and China.

Encana in June sold its offshore operations in China and sold its natural gas assets earlier in July to focus on its core regions, Anadarko and Permian basins in the United States and Montney in Canada.;

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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