EnCana Reports Operating Profit For Q2

(RTTNews) - EnCana (ECA, ECA.TO) Thursday recorded second quarter net loss of $601 million, narrower than $1.61 billion in the prior year. Operating earnings for the quarter was 89 million compared to loss of $167 million last year. Earnings per share for the quarter was $0.10, compared to loss of $0.20 last year.

On average, 15 analysts polled by Thomson Reuters expected the company to record loss of $0.08 per share. Analysts estimates usually exclude special items. Wall Street expect revenue of $714.24 million for the quarter.

The company said it is looking for another step change in efficiency improvement and returns. It has lowered cash costs and improved capital efficiency in its updated 2016 guidance. EnCana also raised its 2016 production guidance. The company expects to use proceeds from announced dispositions to further strengthen its balance sheet and increase its capital investment into high return opportunities in its core four assets.

Doug Suttles, Encana President & CEO said, "Our success in capturing significant capital efficiency gains continues to increase our returns. By reinvesting savings and modestly increasing capital, we are adding 50 percent more drilling and completions activity to our 2016 program."

"We expect to use proceeds from announced divestitures to strengthen our balance sheet and modestly increase our 2016 capital program. We anticipate this additional activity will deliver approximately 13,000 BOE/d of production from our core four assets in the fourth quarter of this year and between 30,000 to 35,000 BOE/d in 2017, of which approximately 75 percent will be liquids," added Suttles.