Encana Announces $400 Mln Share Buyback; Posts Narrower Loss In Q4

(RTTNews) - Encana (ECA.TO, ECA) announced the company plans to spend up to $400 million to repurchase up to 35 million common shares over the next 12 months through a normal course issuer bid. The company plans to fund the NCIB with cash on hand. Encana has not purchased any of its shares pursuant to a normal course issuer bid within the past 12 months.

Encana reported a fourth quarter net loss of $229 million, reflecting a non-cash deferred tax charge primarily due to a decrease in tax rates in 2017 arising from U.S. tax reform, compared to a loss of $281 million, prior year. Fourth quarter non-GAAP operating earnings were $114 million, up from $85 million in the fourth quarter of 2016.

In 2017, Encana delivered total production of 313,200 BOE/d with the company's core assets contributing 83 percent. Total fourth quarter production averaged 335,200 BOE/d, with core assets contributing 93 percent. Full-year liquids production averaged 129,100 bbls/d with fourth quarter liquids volumes of 152,600 bbls/d, up 40 percent from the same period in 2016.

Encana announced the company expects its 2018 capital program will be between $1.8 billion and $1.9 billion which will be fully funded from cash flows. Approximately 70 percent of its capital program will be focused on growing oil production from the Permian and high-margin condensate production in the Montney. The company's core assets are expected to contribute over 95 percent of total 2018 production. Encana expects to grow 2018 total annual production to between 360,000 to 380,000 BOE/d and grow total liquids production to between 165,000 bbls/d and 175,000 bbls/d.