Encana Reduces Planned 2016 Capital Investment - Quick Facts

(RTTNews) - Encana (ECA, ECA.TO) announced the company's revised 2016 capital plan will range between $900 million and $1 billion, reflecting a 55 percent decrease from its full-year 2015 capital investment. The company said the reduction in expected 2016 capital will have minimal impact on 2016 production which is expected to range between 340,000 BOE/d and 360,000 BOE/d. The company estimates total liquids volumes will average between 120,000 bbls/d and 130,000 bbls/d with natural gas production ranging from 1,300 MMcf/d to 1,400 MMcf/d.

Encana saud approximately 95 percent of its 2016 capital will be invested in the core four assets, the Permian, Eagle Ford, Duvernay and Montney. The company will continue to optimize production from its base assets and minimize decline rates.

For 2016, Encana's expected overhead cost savings include an approximate 20 percent workforce reduction, bringing total workforce reduction since 2013 to over 50 percent.

For the fourth-quarter, the company reported that its production from the core four assets totaled 274,400 barrels of oil equivalent per day (BOE/d), up 35 percent from the fourth quarter of 2014 and exceeding target of 270,000 BOE/d. Total liquids production of 145,000 barrels per day, was up 36 percent from the fourth quarter of 2014.