EnCana Says On Track To Meet Or Beat 2017 Targets

(RTTNews) - EnCana (ECA, ECA.TO) said that it is firmly on track to meet or beat 2017 deliverables in a transformational year. The Permian is on track to deliver 50 percent production growth between the fourth quarter of 2016 and the fourth quarter of 2017.

The Eagle Ford continues to outperform its 2017 targets, maintain production and generate free cash flow. Advanced completions are delivering some of the highest productivity wells in the basin. In October, Eagle Ford production averaged 51,000 BOE/d including liquids volumes of 41,000 bbls/d.

"Driven by innovation and strong execution, each of our core assets is firmly on track to meet or beat its 2017 targets," said Doug Suttles, Encana President & CEO. "Consistent with our plan, the Permian and Montney are delivering significant oil and condensate growth in the fourth quarter, driving continued corporate margin expansion and setting the stage for a strong finish to the year."

In 2018, Encana expects its total capital and cash flow to be in balance. Through its five-year plan, which is built on flat $50 WTI and $3 NYMEX natural gas prices, Encana expects its return on capital employed will climb to between 10 and 15 percent, to deliver approximately 25 percent compound annual growth in non-GAAP cash flow and generate around $1.5 billion of cumulative non-GAAP free cash flow.

For 2018, the company has hedged approximately 88,000 bbls/d of expected oil and condensate production at an average price of $53.23 per bbl and approximately 660 MMcf/d of expected natural gas production at an average price of $3.07 per Mcf.

During Investor Day, Encana updated its five-year plan and expects its non-GAAP return on capital employed to climb to between 10 and 15 percent, a 25 percent compound annual growth rate in non-GAAP cash flow and approximately $1.5 billion of cumulative non-GAAP free cash flow.

On November 7, 2017, the Board declared a dividend of $0.015 per share payable on December 29, 2017 to common shareholders of record as of December 15, 2017.